that's "inflated prices", not "Inflation" which refers to inflated
MONEY.

> -----Original Message-----
> From: HP-3000 Systems Discussion 
> [mailto:[log in to unmask]] On Behalf Of Ray Shahan
> Sent: Wednesday, January 16, 2008 2:56 PM
> To: [log in to unmask]
> Subject: Re: OT: Economy
> 
> Tracy, I'm not disputing that printing money can cause one form of
> inflation...it's a fact.
> 
> So, too, is too much money chasing too few goods. If both you 
> and I want
> the same limited product, then the vendor can raise the price of that
> product.  The inflated price is due solely to the fact that 
> both you and
> I wanted it and could afford it, not because the gov printed extra
> money, or the product cost more to produce.  
> 
> 
> 
> -----Original Message-----
> From: HP-3000 Systems Discussion [mailto:[log in to unmask]] On
> Behalf Of Tracy Pierce
> Sent: Wednesday, January 16, 2008 4:39 PM
> To: [log in to unmask]
> Subject: Re: [HP3000-L] OT: Economy
> 
> .....and because you found it on the internet, it must be 
> right!  but for
> starters, we all know there's no such thing as too much money.
> 
> When demand is greater than supply for any given item, prices for that
> item go up, but it's very simple supply and demand, and it doesn't
> involve inflation - no new money needs to be created for the price of
> that item to go up or down.  Of course you can get away with applying
> the term "inflate" to the price of the commodity, but hey, 
> lots of words
> have lots of meanings.  
> 
> Inflation applies to the act of creating more dollars without 
> increasing
> the actual wealth they represent.  Each of those poof! extra dollars
> automatically devalues every preexisting dollar, perfectly equally,
> regardless commodities.  The government that overprints is currency is
> quite effectively, and quite 'fairly', stealing from everyone holding
> that currency.
> 
> 
> 
> 
> 
> > -----Original Message-----
> > From: HP-3000 Systems Discussion 
> > [mailto:[log in to unmask]] On Behalf Of Ray Shahan
> > Sent: Wednesday, January 16, 2008 2:08 PM
> > To: [log in to unmask]
> > Subject: Re: OT: Economy
> > 
> > DEFINE: Inflation
> > A general rise in the price level of goods and services. Occurs when
> > demand increases relative to supply. In other words, too much money
> > chasing too few goods.
> > www.acmeadvisor.com/Glossary.htm
> > 
> > 
> > 
> > -----Original Message-----
> > From: HP-3000 Systems Discussion [mailto:[log in to unmask]] On
> > Behalf Of Tracy Pierce
> > Sent: Wednesday, January 16, 2008 3:15 PM
> > To: [log in to unmask]
> > Subject: Re: [HP3000-L] OT: Economy
> > 
> > "Too much money" chasing too few goods?  That's simple supply and
> > demand, not inflation.
> > 
> > Inflation occurs when a government manufactures money with 
> nothing to
> > back it up - each dollar represents a share of wealth, and simply
> > printing another dollar devalues the rest proportionately.  (maybe a
> > great way to tax?)
> > 
> > The mortgage debacle was quite predictable, and people who took out
> > loans on which they couldn't even pay the interest should have known
> > better than to buy at insane prices.  
> > 
> > 
> > > -----Original Message-----
> > > From: HP-3000 Systems Discussion 
> > > [mailto:[log in to unmask]] On Behalf Of Ray Shahan
> > > Sent: Wednesday, January 16, 2008 12:02 PM
> > > To: [log in to unmask]
> > > Subject: Re: OT: Economy
> > > 
> > > Craig,
> > > 
> > > 	As I'm sure you know, there are many things that affect any
> > > economy, but we can, at times, finger some of the large 
> > entities that
> > > have large affects (effects) on our economy:
> > > 
> > > 	As housing prices went through the roof in the last 5/10 years,
> > > no one was yelling inflation - even though that's exactly 
> > > what it was -
> > > too much money chasing too few goods.  We allowed anyone and 
> > > everyone in
> > > America to buy a home - even with no money down or proof of 
> > > income, and
> > > this drove the price of housing through the roof!!  Of 
> > > course, everyone
> > > was ok with housing prices going up because we all then went 
> > > to the bank
> > > to get a second mortgage on the inflated value of our home, 
> > and spend
> > > that money on goodies that helped spur the entire world's 
> economy.  
> > > 
> > > 	Now, the question is why didn't the cost of consumer goods go up
> > > when we all had the artificial money to spend from our 
> > > inflated housing
> > > prices?  It's because we imported goods that were 
> > > manufactured overseas
> > > at a cost that was so much cheaper to produce (low wages, and less
> > > government mandated controls) that it allowed Wall Street 
> to make a
> > > killing, while keeping the prices of the consumer goods 
> within easy
> > > reach.
> > > 
> > > 	Ok, up comes the sub-prime/credit bust in America that rocks the
> > > world's credit.  Now there is less money chasing the same 
> amount of
> > > consumer goods, so those goods should go down in price 
> > (just like the
> > > housing values in America are). But the consumer goods don't 
> > > go down in
> > > price because we have to account for the dramatic increase 
> > in the cost
> > > of the energy used to produce and ship those goods.
> > > 
> > > 	That's the view from 60,000 feet, Craig.   8-)
> > > 
> > > 	
> > > 
> > >   
> > > 
> > > 
> > > 
> > > -----Original Message-----
> > > From: HP-3000 Systems Discussion 
> [mailto:[log in to unmask]] On
> > > Behalf Of Craig Lalley
> > > Sent: Wednesday, January 16, 2008 12:30 PM
> > > To: [log in to unmask]
> > > Subject: [HP3000-L] OT: Economy
> > > 
> > > I really don't understand the economy.
> > >    
> > >   For the past 15+ years, home prices have been spiraling out of
> > > control.  People are spending more than they make and the 
> > savings rate
> > > has gone negative.  All that time, inflation was low, if 
> > not stagnate.
> > > Some people even talked about the problem of deflation.
> > >    
> > >   And now that home prices have all but collapsed, financial
> > > institutions are being bailed out by foreign countries.   
> > Defaults on
> > > mortgages are at record numbers.  The ON thing stopping 
> > bankruptcy is
> > > the recent changes in the laws.   
> > >   
> > > So now, now that everyone is cutting expenses and on a 
> > > budget, now that
> > > the money system is tight.  Sub-prime mortgages, which 
> > really are not
> > > Sub-Prime... (check THAT one out), are setting records 
> for default..
> > > with all this happening.
> > >    
> > >   Whole Prices Soared Last Year
> > > http://ap.google.com/article/ALeqM5jsanM66tszKz1zFq0LOG4XvWS7z
> > > AD8U6CQQ80
> > > If someone can explain this, in layman's terms preferably, I would
> > > really appreciate it.   (just in case it goes in this direction, I
> > > already know, "It's all Bush's fault.")   Please leave the 
> > > politics out
> > > of the debate.
> > >    
> > >   -Craig
> > >    
> > > 
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