[DcifrThs]

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but look at the above chart. according to this, 10 years ago (well, 1998), the infaltion was supposedly "really" only 3 percentage points less than it is today. how is it possible that with all of the turmoil you quoted as evidence of the inflation we have today that in 1998 there was virtually the same infaltion rate (According to your own source) yet not a single one of those turmoils were in effect?

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The problem is not high inflation over a small time period, but high inflation consistently over a long time period. We've had large inflation the last 10 to 15 years and it has debased the US currency. The inflation in 1998 helped get gold and crude oil so high.

(inflation percentage in 1998) * (inflation percentage in 1999) * (inflation percentage in 2000) * ... * (inflation percentage in 2007) is how much less our currency is worth today.

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your own analysis/evidence negates your conclusion.

think about it...with all those problems and the cumulative effect of all those years of infaltion, how is it possible that today's inflation only 3 percentage points bigger? there would have to be soem deflationary force there somewhere.

Barron

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You're misunderstanding the graphs presented to you. Integrate inflation over time and you have what worries us. If we had alternating years of 2% inflation and -2% inflation then money is staying at the same value. If we have 2% inflation every year, then our money is getting less valuable at that rate. If inflation is at 10% our money is worth half as much every seven years. Wages aren't rising nearly that quickly to outpace it.

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gotcha.

i guess i just havne't experienced the insane inflation quoted here.

one reason may be that i don't drink milk [img]/images/graemlins/tongue.gif[/img]

Barron