SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Welcome to Slider's Dugout

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: SliderOnTheBlack who wrote (2943)10/24/2006 1:06:24 PM
From: RonMerks  Read Replies (3) of 50168
 
Why inflation threat today is different.

Interesting article by Morgan Stanleys Steve Roach about deflationary pressures on wages around the world. This is the other half of the inflation equation. We had it when gold zoomed to $800 in 1980, but we dont have it today.

morganstanley.com

Im curious to others opinions on why gold never rallied as Slider mentioned, during the 20 years from 1980 to 2000; even though Central Banks were printing fiat non-stop? Increasing money supply is the basic definition of inflation. On that basis, inflation has been non-stop. So why has gold only really broken out 2 times in nearly 25 years?

It seems like golds upside is more determined by WAGE inflation, than MONEY inflation.

So is wage inflation the half of the inflation equation thats missing here? Is this the reason gold didnt rally for 20 years and the reason it corrected here?

TIA,

Ron
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext