Question

Filed in Uncategorized by on March 18, 2008

How does inflation work?

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  1. Joe M says:

    See, when a man and a sex doll love each other very much…

  2. Surprisingly and distressingly well, I think.

  3. disbelief says:

    Assume everyone is of equal hotness. Then one of us goes and has breast implants. There is now what economists term “hotness disparity”. Those on the short end of the disparity also get breast implants (or hair implants) in order to return the situation to ‘balanced hotness’. However, those providing the enhanced hotness note they can charge more and more as the ‘hotness disparity’ increases because of additional people getting hotness enhancements.

    Bang! Inflation!

  4. donviti says:

    ask a stupid question get a…

  5. Duffy says:

    More money chasing fewer products. Loose monetary policy increases the number of dollars in circulation. Increasing the number of dollars w/o a concomitant rise in the number of goods/services available will result in a decreased value of the dollar (or yen, pound, riyal, dirham etc.)

  6. liberalgeek says:

    There is an upside to inflation. If it hits you hard and you survive, you may be more financially secure.

    If we have a run of inflation that doubles the cost of things in the next 5 years, your salary should also double or so. However your single greatest asset will cost you no more on a monthly basis. Your $1000/month mortgage starts to feel like a $500 mortgage.

  7. donviti says:

    LOL, geek said my income will double…

    can I bet on that?