Doug,
If you increased the money supply by 25% without any increase in
productivity, you could expect inflation to be 25% in less than 2 years, it
would probably be 25% in less than 12 months, but you could expect to see
prices rising the same month the money supply was increased. You will have
25% more dollars chasing the exact same amount of production, and the prices
will rise as soon as the marketplace realizes it. Even if this information
was never published in the news. Those who buy commodity futures will bid
up the futures almost immediately, (they review all the government data
concerning M1 and M2 money supply) this will increase the cost of the raw
materials. This will very quickly raise the cost of finished goods, since
most manufacturers and many retail businesses use LIFO accounting practice.


"DSK" wrote in message
...
Starbuck wrote:

Doug,
The marketplace responds fairly quickly to inflationary pressure

Uh huh.
Do you know the economics textbook definition of "long term"?

Look it up.

... just ask Germans who lived during the 40's how quickly the
marketplace reacts to an increase in money supply without an increase in
productivity.

And how quickly is that?
When a crisis that is ten years in the making creates an "overnight
sensation" of exponential inflation, does it take an idiot to ignore the
10 year crisis and focus on the overnight? Or merely someone who is poorly
educated who also wants to promote a fundamentally dishonest agenda?



Are you suggesting it is ok to create rampant inflation in an effort to
try to give the appearance of helping the less fortunate?

Why, no. Are you suggesting that I suggested that?

I was merely pointing out that your ideas about economics are wrong.


... After all, the old on fixed income have lived a good life

Is that why you & the Bush/Cheney Administration feel it's OK to pillage
Social Security and hand over the loot to Wall St?


... it is more important that we give the appearance of helping the poor.


instead of "giving the appearance" how about actually helping them?

Or in the words of the immortal B.B. King (no relation) 'Help the poor...
Lord, help the poor... yes, help the poor... won't you help poor me.'

DSK