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To: Gottfried who wrote (1113)	8/11/1997 10:12:00 AM
From: Teri Skogerboe	of 1894

GM and Ice, <<That makes me strongly suspect the deflation theories. First, inflation should be computed on ESSENTIALS. Second, it will vary in different parts of the country. Mal Berko, a writer for the Investors Alliance, has repeatedly stated that official inflation estimates are vastly understated. Government has a vested interest in doing so (for example Social Security payments are adjusted each year for inflation).>> I totally agree. I think they (the govt) are stretching the truth to make inflation appear less than it is. I hope so because the thoughts of deflation make me a lot more uncomfortable. If all our houses slowly appreciate and we have the normal very small inflation that we've had in the last 10 years, is easy to deal with. Also, I'm sure you are correct about real estate in Silicon Valley area. Is probably going through the roof. Here, the economy is very good; there is EXCELLENT. (I would think). Deflation is a scary thought to me. And with the stock market at all time highs, the deflation theory is a VERY HARD SELL. Regards, Teri

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