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To: pater tenebrarum who wrote (26346)	9/20/1999 10:48:00 AM
From: Les H	Read Replies (1) \| Respond to of 99985

Great quote in the NTRS on Friday .. "Let them eat computers"

To: pater tenebrarum who wrote (26346)	9/20/1999 11:05:00 AM
From: TimbaBear	Read Replies (1) \| Respond to of 99985

hb....very good post! Whether we think the PPI or CPI is an accurate measure of inflation or not, it is a constant measure and therefore has some practicality in that the changes to a constant measure can be evaluated.

To: pater tenebrarum who wrote (26346)	9/20/1999 11:11:00 AM
From: Fun-da-Mental#1	Read Replies (1) \| Respond to of 99985

Heinz, re. tug-of-war between inflation and deflation, that's been on my mind too, since last year. When I saw America doing well despite the Asian crisis, I thought maybe if the domestic economy is too hot and the international economy is too cold, then together they're just right. Global deflation goes a long way towards explaining why we've managed to have strong growth without inflation so far. However I think this balance is tipping to the inflation side now as most of Asia recovers. IMO rising commodity prices show that on average the world economy is improving, regardless of trouble in Latin America and China. China may get a lot worse, but since their economy is not fully integrated with the world trade system yet we may be somewhat insulated from trouble there. BWDIK? Fun-da-Mental

To: pater tenebrarum who wrote (26346)	9/20/1999 11:33:00 AM
From: Robert Rose	Read Replies (1) \| Respond to of 99985

<re: core rate of PPI and CPI: with all due respect, these data look biased to me. as has been discussed on this thread previously, the methods the DoL employs to arrive at these data are questionable. hard-to-measure "quality improvements" have entered into the calculation as well as the substitution argument. seriously, what are you going to substitute gasoline with when it goes up in price?> heinz, I agree that not including gasoline or housing in these stats makes no sense. But that is an entirely different issue from whether incorporating 'quality improvements' in these numbers increases or decreases their bias. I would suggest the latter, because let's face it, the economy is changing, so our methods of measuring it must reflect that fact....

To: pater tenebrarum who wrote (26346)	9/20/1999 8:10:00 PM
From: Jerry Olson	Read Replies (2) \| Respond to of 99985

Heinz.. thanks for that excellent response... but...if there are DEFlationary problems out there, then rates will NOT go up...way too dangerous for those countries experiencing this debacle... Greenspan will be very careful not to put the squeeze on these other countries economies... Heinz..i do not believe wages will feed thru to higher prices.. it hasn't happen yet??? and IF we are slowing it will not happen now... companies can ill afford to raise prices on their products...way too much competition out there...customers will simply buy from someone else... this is in fact the essence of our benign inflation.. regards..OJ