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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Spekulatius who wrote (2722)7/8/2000 3:03:43 PM
From: Joan Osland Graffius  Read Replies (1) of 436258
 
Spekulatius,

You could be right about inflation.

We currently have some good seeds for inflation. Medical costs, housing costs and energy costs have all inflated. Every last American uses the products effected by these seeds. The employee will expect to obtain salary increases to cover these costs. Then to cover all these costs the corporations will increase prices to cover their increased costs, then the employee will expect wage increases to cover the costs of products that the corporations are charging for their products. Everyone in the chain from commodity producer to consumer will expect a price increase, and so it goes. I can remember in the 60's and 70's everyone expected 10% to 15% or more wage increases to cover the inflation. As a manager I can remember giving inflation salary increases and performance salary increases. It became a culture.

The government will then start price controls and that will not work, while the central banker will keep the printing presses going full tilt. Someone will find a central banker that reads Volkers history and really put the skids on inflation.

During this whole time the market will be owned by the "bears".

This is a possibility and I do not see anyone doing anything to stop the process.

BWDIK,

Joan
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