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  1. #41
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    Jun 2004
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    Quote Originally Posted by Perry View Post
    A number-cruncher acquaintance of mine says that the main factor is because the gummint increases the money supply by 7% annually.

    I must ask him how he sees that relating to the CPI and the 'official' figure.
    Wouldn't that create inflation - increasing money supply 7% per annum?

  2. #42
    Join Date
    May 2008
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    3,316

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    That's why they do it (so I'm told).
    They are trying to get a bit of inflation and increasing M3 should help do it.

    Here's an economics 101 question:
    If the money in circulation was fixed and the population increased, would things get better or worse?

  3. #43
    Join Date
    Sep 2004
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    Hastings
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    14,293

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    Quote Originally Posted by Perry View Post
    A number-cruncher acquaintance of mine says that the main factor is because the gummint increases the money supply by 7% annually.

    I must ask him how he sees that relating to the CPI and the 'official' figure.

    Quote Originally Posted by Wayne View Post
    Wouldn't that create inflation - increasing money supply 7% per annum?
    It does. And that's why they want a CGT. So they can collect a tax in real dollars that's levied on an illusion of their making. Something for nothing for the gummint.
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  4. #44
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    Jun 2004
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    10,160

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    Quote Originally Posted by Perry View Post
    It does. And that's why they want a CGT. So they can collect a tax in real dollars that's levied on an illusion of their making. Something for nothing for the gummint.
    Oh dear !


 

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