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

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To: russwinter who wrote (11498)4/8/2004 11:04:45 AM
From: Wyätt Gwyön  Read Replies (1) of 110194
 
A 70 cent spike would equal 1% of all US consumer consumption. A buck, about 1.5%...Consumption on food and beverage is $900 billion versus $300 billion for NG, electricity, and gasoline. So even a 10% increase in food prices (clearly happening) will divert 1.5% of consumption

i don't understand: you say food is more than 3x gasoline, but less than a 1% rise in gasoline diverts the same 1.5% of consumption as a 10% rise in food...

point of this exercise though is to illustrate that special extraordinary efforts now have to constantly be made just to keep this thing from falling apart

so what do you imagine "falling apart" to be? actual (official) acknowledgement of inflation, and attendant interest rate increases culminating in?
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