31. Can anything reverse the trend toward higher prices? 32. Fans have groused that the higher prices are unfair. 33. The transnational capitalist class can exact a much higher price for its services than the comprador class ever could, for two reasons. 34. Right, it simply serves its purpose, right, higher prices will mean greater revenue, and if other things remain constant then that means more profit. 35. The main purchasers of bills are the discount houses, which then sell many of them at a slightly higher price, to the banks. 36. In the extreme case where the aggregate supply curve is vertical, the increased money supply will simply lead to higher prices. 37. Any increase in the money supply, they argue, will simply lead to higher prices and a lower exchange rate. 38. Unless -- nightmare! 39. There is concern that this will lead to uncompensated exploitation of the third world and decreasing choice and higher prices for consumers in the west. |