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

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To: GST who wrote (53931)2/15/2006 3:58:59 PM
From: Chaka  Read Replies (1) of 110194
 
No, on the contrary, demand for commodities is soaring due to the explosive growth of demand in Asia.

I agree with the (Don Coxe) view that anything that is un-earthed (metals,oils) will go up in price due to scarcity while anything that can be produced/manufactured (grains, high tech) will go down in price due to higher productivity, lower labor costs etc.
(I believe the above holds even when Dollar's purchasing power is reduced significantly). Now, add in asset deflation (or stagnation) and it is clear the standard of living in the U.S. has to go down. I think the outcome of inflation or deflation is simply dependent on the relative difference of rates between deflation in assets and deflation of standard of living (e.g. if the latter is faster, it is inflation as defined by "general increase in price level").
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