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Well, yes - but that ignores the fact that the useful definition of inflation isn't some percentage variation in something or other, but loss of buying power.

And current measures of inflation have a very partial and selective view of that. Specifically they consider inflation a loss of buying power for one class, who experience inflation as a corrosive destroyer of asset values.

Coincidentally, that same class experience property and investment appreciation as an expansion of buying power, which is why they're not considered inflationary - even though to someone outside that class their buying power can be reduced dramatically during (e.g.) a property bubble.

There's only a loss of buying power for the population as a whole when nominal inflation is running at outrageous levels and wages aren't being raised to suit.

The real cause of inflation isn't profit, but interest/usury and the constant demand for increasing ROI.

If your units of measurement are discrete rather than synergistic, it's not physically or mathematically possible to make the pie higher without inflating it.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Nov 19th, 2010 at 10:08:49 PM EST
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