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[bob ford <bobford79 AT yahoo.com>]

I probablt didn't except it in a good way.  I think, he essentially says what 
you say.  He , in this article, is talking about the CPI, and saying that 
measuring money suopply is a better gauge.....bobford


--- On Mon, 9/29/08, Clansgian AT wmconnect.com <Clansgian AT wmconnect.com> wrote:

> From: Clansgian AT wmconnect.com <Clansgian AT wmconnect.com>
> Subject: Re: [Homestead] Defining Inflation
> To: bobford79 AT yahoo.com
> Date: Monday, September 29, 2008, 9:39 AM
> > >If inflation is just a general rise in prices, then
> why is it regarded as 
> > bad news? What kind of damage does it do? 
> 
> Your economist has this wrong.  Inflation is not just a
> rise in the supply of 
> money any more than it is just a rise in prices.
> 
> Inflation is when the the money supply rises FASTER than
> the supply of goods, 
> when there is more money to buy the same number of goods.  
> 
> This is a principle I preach like a reed shaken in the
> wilderness, all the 
> talk about what we could do with that trillion dollars if
> it were not for the 
> war, or what we could do with that $700 B instead of the
> bail out.  We could do 
> nothing with it.  If we dumped that money on the public,
> the amount of goods 
> does not go up.  The only result would be higher prices,
> inflation.   </HTML>