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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Wyätt Gwyön who wrote (12641)4/26/2004 11:01:04 PM
From: Jim Willie CB   of 110194
 
Fed still regards inflation as commodity without location
this is their micro-error
they believe all inflation works to cancel out deflation

truly mindless and wholly incorrect
to a tragic degree
they have no concept of monetary inflation's deflationary impact
either long-term or immediately (like with new debts added)

costs are seeing inflation
wages are not
pricing power is still not there
China will give us pricing power when they enforce it
soon

I remember the mid-1990's and the car mfg price struggles
when the Asians raised prices on their cars, instead of enjoying a price advantage, US car makers pushed prices up

the same thing will happen on the opposite side
China will raise prices of their vast exports to USA
that will allow US mfrs operating domestically to raise prices
but only accordingly, as per China hikes

/ jim
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