[ARC5] Re: ARC5 Digest, Vol 37, Issue 10 OT Drift

[J Forster]

  [snip]  Supply and demand govern price.  The overall
  inflation rate between then and now is basically
  non applicable.

May be but the scarcity has increased the typical selling price over
just inflation.

  And you are dead on with your analysis of why
  the politicians love inflation.  With the graduated
  income tax, people who gain no real buying power
  are taxed increasingly heavily to feed the gross
  appetites for someone else's money by pols and
  their hangers-on.

It's actually worse than that. If you have an asset that just keeps up
with inflation and sell it after a number of years, you are liable for
Capital Gains Tax, BUT the'Basis' is NOT adjusted for inflation.  You
are taxed on inflation, pure and simple.

-John


  73 - Mac, K2GKK/5
  Oklahoma City, OK