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<p>[QUOTE=&quot;Cloudsweeper99, post: 1108735, member: 3011&quot;]Time will tell.&nbsp; I&#039;ve explained how prices can rise without inflation.&nbsp; I&#039;ve also explained elsewhere here how this is a two step process.&nbsp; For example, step 1 would be an increase in demand for oil causing a rise in the price.&nbsp; Step 2 is what the Fed does about it.&nbsp; If they do nothing, the rise in oil will be deflationary because people will have to reduce spending elsewhere to buy oil, or buy less oil.&nbsp; But if the Fed prints new money to pay for the oil, there will be inflation.&nbsp; In the 1970s the Fed &quot;printed&quot; the money through a process that became known as recycling petrodollars.&nbsp; We don&#039;t know yet what they will do this time.&nbsp; So people can guess, but nobody can know the outcome yet.&nbsp; The Fed is trying to liquify the system, but at the same time debt defaults are undoing much of the effort.</p><p><br /></p><p>I say this to explain what I believe is the proper way to think about the present situation.&nbsp; Everyone has to decide for themselves how to best deal with it.[/QUOTE]</p><p><br /></p>

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