DJ, Don't take me too literally on use of the term "printing presses".
I recognize that the fed can "create" more money with a keystroke, than all the "Ben's" being printed for weeks. However, it is widely reported that this surprise budget "surplus" was due to unexpected taxes from capital gains.
Last week, as I was rolling down the interstate, I noted that there seemed to be just as many, if not more, trucks on the road. The costs of getting the goods to market has become cheaper with the fall in oil.
Sure seems to me that for every loser in the supply and demand game (i.e., big oil), there are a multitude of winners, the consumers of the resources. My little corner store (Rip-Off, Inc.) just raised the cost of a single 20 oz Diet Coke to $1.06 from $.99 last week. So much for a lack of the ability to raise prices to the consumer.
I guess the bottom line is that I don't see and never have seen "deflation" as being the problem. But, alas, as with my Webster's dictionary, I'm probably in the horse and buggy days on this issue.
If the supply and demand problem were resolved tomorrow, if the problems of the former evil empire and the Asian tigers were resolved with a stroke of the magic wand, the battle of the bulls and bears would simply shift to another issue -- real or imaginary.
Berney |
