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To: BenLurkin
When business is really strong we find that businesses tend to raise prices. Good old supply and demand. But not to the Fed. The Fed calls that INFLATION.

When the Fed prints money and flushes it into the banking system they are, in the Fed's Humble Option, simply working to keep the economy going. The Fed would NEVER call that INFLATIONARY. As long as business is NOT TOO GOOD, prices don't creep up and the Fed is HAPPY. But if business gets really going that's BAD. Time to raise interest rates.

This is the way things really are and it's simply NUTS. Ron Paul is right. Kill this thing before it eats all of us.

7 posted on 10/06/2009 8:20:54 AM PDT by InterceptPoint
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To: InterceptPoint

Frankly I think any gains the economy makes right now are artificial and will only be short-lived. I think over all the economy will get even worse, perhaps much worse, before it gets better. I do not see full recovery any time soon. Maybe not even next year.


8 posted on 10/06/2009 8:27:55 AM PDT by Ev Reeman
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To: InterceptPoint
"As long as business is NOT TOO GOOD, prices don't creep up and the Fed is HAPPY."

But prices are creeping up. The medias is just ignoring it. Your grocery bag now costs 32% more than it did last year. Obama media howqever, looks at the price of oil and uses that as it's inflation guide. Oil dropped $4 a barrel, so hence there is no inflation in their eyes. Our dollar is hovering around .76.2 cents, down from .95+ cents in January. That alone is a 20 cent reduction in spending power. Plus pump prices for gasoline haven't followed the drop in oil prices like they followed it when barrel prices were rising. You can see from these two things alone the massive amount of inflation that we have had over the past year.

13 posted on 10/06/2009 9:13:51 AM PDT by Nathan Zachary (rong east)
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