Zeev's Turnips Patch-No Politics (ZEEV)

[lee kramer]

Elroy:: A stable money supply [by this I assume you mean a supply that neither increases nor decreases by much] by definition will not likely lead to deflation. Inflation is the creation of paper money, that a moment ago, did not exist; eventually it diminishes the purchasing power of the dollars prior to the "inflating." Deflation is the dimunition of paper money. Inflation is not rising prices; rising prices are the result of inflation. The more inflation, the more the desire for gold; because gold cannot be counterfeited.