Bill-- My view of inflation is somewhat different. It seems to me that the rules have changed, with prices determined by the category-killers and the mass mechandisers. Eg, in a recent New Yorker article about sweat shops, K-Mart ordered a million articles of clothing at their price and when the NY manufacturers couldn't make it, it was manufactured overseas. Multiply this by having the web as a business-to-business supplier, and immediately the need for efficiencies is compelling. For the vendors, the retailer is now the monopoly, and the consumer becomes the beneficiaries as inflation is controlled. I personally hope AG is aware of this because inflation in commodities may be true, but it is not percolating to the consumer.
In fact, we are all consumers and this efficiency seem, IMO, to be an advertisement for free trade.
Obviously, as dollars travel around the world, 3rd world labor will be more expensive. This, IMO, is also good. Not only for the people working, but for the development of more markets for more goods. In addition, I can't resist saying this, it makes war far less likely because war would interfere with vital commercial interests. I felt safer when Moscow had a McDonalds and Food Lion is selling Lukoil gasoline.
fred |
