only if the government is spending money it actually has. We are borrowing money from the Fed, which is created by fiat - increasing the money supply. SO MUCH SO that the Fed quit publishing the statistics on the M3 money supply as the growth in it is so high.
Chris Tom Hargrave <[EMAIL PROTECTED]> wrote: War tends to heat up the economy & make it grow because now we need to replace of the neat toys that went "boom". In other words, war tends to be anti-inflationary. Thanks, Tom Hargrave www.kegkits.com 256-656-1924 -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of archer Sent: Monday, November 12, 2007 9:22 AM To: Mercedes Discussion List Subject: Re: [MBZ] Diesel/gas prices ----- Original Message ----- From: "Christopher McCann" > the main problem we are seeing right now is the impact of China's Central > Bank which on Nov 6 announced that it will begin diversifying its reserve > currencies away from weak ones like the dollar towards strong currencies. > It was a devastating statement and that date will be one that goes down in > history as the beginning of the upcoming period of high inflation. The US > money supply is growing at 20%/ year. We don't have 20% economic > growth...this is currency inflation by the Federal Reserve...currency > debasement. When a currency is worth less, foreigners will want more of it > for the same product. On Nov. 6, the US dollar hit record lows against > main foreign currencies. Example - You now need $1.10 to buy 1 canadian > dollar.(!!!). Fed Chairman Bernanke was grilled the following day in > Congress by Ron Paul and Bernanke admitted that "this will only effect > consumers who buy imported goods" - (!!!!!!!!) - well, fuel is imported. > Yes, it takes months for oil to reach the pump, but > that does not mean that prices can't be raised now on account of it. (I > know about the demand for heating oil and harvesting). All these things > are combining, but the key is the plummeting dollar. We are in for a bad > ride. > Chris ------------------------------------------ In your opinion will we have government devaluation of the dollar such as South American countries have routinely had in the past? Do you think we would have been in this situation without the Iraq war? Gerry Archer '83 300D and 240D _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com Christopher McCann, Squier Park, Kansas City, Missouri -1985 300SD, 367K km, "Wulf" -1992 350 Ram Wagon, 58K miles, "The Behemoth" __________________________________________________ Do You Yahoo!? Tired of spam? Yahoo! Mail has the best spam protection around http://mail.yahoo.com _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
