| "True" inflation can be calculated with an equation that includes, velocity of money, spiraling wages, shortages of commodities, goods and services. None of the above a present through out the economy. We have a currency that has lost value, so debasing of the currency is happening. The steps of prices I follow are 1. Deflation, 2. Disinflation, 3. Re-inflation, 4. Inflation, and 5. Hyper inflation. IMHO, we are just starting into Re-inflation. Since the dollar has lost purchasing power things priced in dollars will cost more. This includes stocks AND gold, precious metals, etc. In conclusion, inflation is coming but it's down the road a bit. Hyper inflation would be really scary. Let's hope we do not get to that. RDK> |
