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To: BGR who wrote (49278)	6/24/1999 2:00:00 PM
From: Lizzie Tudor	Read Replies (4) \| Respond to of 86076

Things look different in pockets like NYC and the Silicon Valley. But, there is no rampant run off in inflation on a national level. Things sure do look different in silicon valley, and it is WAY uncool. But anyway, I agree there is little or no inflation or wage inflation and at least in the high tech centers (which is where the wage inflation would be if it existed) the internet has allowed outsourcing of huge amounts of labor to cheap producers like Ireland, etc. However, for those people left here working in tech there actually is huge wage inflation because they are compensated with stock options. So the labor statistics are lying a little.

To: BGR who wrote (49278)	6/24/1999 2:27:00 PM
From: per strandberg	Read Replies (2) \| Respond to of 86076

BGR, there is no rampant run off in inflation on a national level How could there be inflation when the Dollar is appreciating and imports are increasing? A couple of years ago a Dollar was 6.9 SEK, now 8.45. The Euro has lost 10% in 6 months, the Brazilean Real about 25% etc. The rest of the world has been on the verge of deflation. The US imports have risen much faster than the exports thus transforming inflation into a trade gap of 20% of the export value. The rest of the world is cheering, using the US for their colonial strategy of "We produce, you consume". Most countries are trying hard to depress their own currency to keep this happy state. E.g. BOE, who is trying to bring the Pound down by selling gold, as it cannot outright devalue because of the other Euro allies. The irony is that the FEDs can't even force down the Dollar by printing, as the BOJ will step in and start buying Dollars to keep it propped up, regardless of what this will do to inflation in Japan. Raising rates will only increase the strength of the Dollar. I find it strange that everybody seems to be so happy with inflation (or the lack of it) when there is this growing trade gap to worry about. Closing it will demand a weaker Dollar and then the inflation will return with a vengeance. Regards Per S