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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (71395)	12/3/1999 2:06:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Don, >>It is the supply side that runs the risk of not securing enough yield to cover the potential loss in the purchasing power of the eventual return of principal.<< That's exactly my former view and I believe the conventional thinking. I used to get very upset about the inflation calculations because in my mind I could never know whether I was getting compensated properly without a reasonable inflation figure to work with. But then I started thinking that perhaps as inflation rises there is also a greater demand for capital to replace warn out stuff at higher prices and grow businesses in general. If so, perhaps the inflation component is captured to a large degree from the higher demand for capital without anyone actually going thru some sort of calculation about inflation compensation. I have no real theory or proof here. It's an intuitive idea I'm sort of tossing around. I'd appreciate input. Wayne