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To: BenLurkin

No. Prises are rising at the wholesale level. That is an indication that there just might be some inflation going on but it is not, itself, inflation. Prices rise and fall all the time, even prices in whole sectors, when there is no inflation. That is the nature of a free market. If there is no inflation, however, a price rise in one ara will be accompanied by a fall in anotheror the disapperance of some other goods from the market. If there is inflation, then a price rise does not necessitate a drop in other prices. The rise is because of more money in the system and is not really a "rise" in real price but rather a fall in the price of money because there is more of it in the market bidding for goods and services.


5 posted on 08/15/2006 6:14:44 AM PDT by arthurus (Better to fight them over THERE than over HERE)
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To: arthurus

So things will cost more but not to worry because it isn't really inflation?


9 posted on 08/15/2006 6:16:18 AM PDT by BenLurkin ("The entire remedy is with the people." - W. H. Harrison)
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