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<p>[QUOTE=&quot;medoraman, post: 1164996, member: 26302&quot;]I agree mostly Fatima, but would still state mild inflation is more desirable than deflation. Its hard to keep prices exactly as they were, so I think the government makes the correct choice if they have to choose between deflation and mild inflation. This is especially true taking into account human nature. We all want a raise every year. Well, even if we improved our productivity 5%, (productivity is needed to justify higher pay economically), 5% would get eaten up by health care and taxes. To afford to give an employee a 3% raise, we would have to assume inflation on our sales prices of the firm. The employee THINKS they are better because of 3% money, but then complains about the inflation. This inflation is really driven by everyone&#039;s desire to get a raise. Therefor, the inflation is a self fulfilling prophecy.</p><p><br /></p><p>Just a question to everyone who thinks inflation is ONLY determined by the Fed. How does this justify a crop shortage or the like? I mean, cotton has gone up dramatically, so has corn. Both of them have gone up much more than the dollar has fallen. In my basket of goods every month, the price has gone up because of these two items. Yet, many people here would say my inflation, which to me is the price change of my basket of goods, is only due to the Fed printing money. This is my disconnect here, people saying price changes are only a symptom of inflation. To me, it IS the measurement, the actual inflation, and causes can be debated. Kitco even has a chart daily showing how much gold has gone up in real terms, and how much is attributable to a weakening dollar.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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