surcharge/precursor of INFLATION

[Wimblees@AOL.COM]

In a message dated 3/8/00 11:59:45 PM !!!First Boot!!!, 
jformsma@dixie-net.com writes:

<< I thought inflation was the result of excess paper money which devalues the
 currency unit.  >>

Inflation is where people have to more for what they used to pay, for what 
ever the reason. If gasoline costs more, then the cost of bring goods and 
services to the consumer will increase. Because everyone has to pay more for 
products and services, employees will ask for more money to pay for them. 
This will also add to    the costs of goods and services. And the cycle 
continues.

One of the reasons we have had such a long and prosperous low inflation 
period, is because no one was asking for more money, because all goods and 
services were kept relatively in check. But now that the OPEC nations have 
increased the cost of oil, it will have a ripple effect. 

I just heard Clinton has asked the OPEC nations to reduce the oil prices, and 
they have consented. But by the time the actual costs will come to the gas 
stations, it will be late summer. By that time, however, the damage might 
have been done, (inflation), Unless, the governments steps in and loosens the 
money supply. 

Wim