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To: Tom Byron who wrote (57847)	9/3/2000 5:58:30 PM
From: Bearcatbob	Read Replies (1) \| Respond to of 116790

Thread, I want you to be aware of a contrary indicator. I have finally given up - sold my Franco Nevada. Gold must now be ready to run. Bob

To: Tom Byron who wrote (57847)	9/4/2000 4:17:55 AM
From: Alex	Read Replies (5) \| Respond to of 116790

HOW INFLATION IS AFFECTING AMERICANS: THE FACTS Monday,September 4,2000 By JOHN CRUDELE -------------------------------------------------------------------------------- IF YOU read the financial pages of other newspapers earlier this week, you learned that Americans are spending wildly and hardly saving. In fact, the savings rate in this country fell below zero - which means, quite simply, that we are all going to go broke if we keep this up. Unfortunately, it's not true. Now I'll tell you what's really going on: The Commerce Dept. reported that consumer spending in July rose by $38.7 billion, or 0.6 percent. The 0.6 percent figure is the one that had newspapers all excited because it was slightly higher than the already-robust 0.5 percent rise the experts had been predicting. The other headline maker was the fact that personal income rose just $21.1 billion, or 0.3 percent during that same month. The bottom line: You extravagant folks out there are increasing your spending at a much faster pace than your income is increasing. Shame on you! By now you should be annoyed. Anyone who has pulled out a wallet to buy something these last few months knows where all that extra dough is going - to pay higher prices for the same old things you've always bought. I know, the government insists there isn't much inflation. That's always what they say when politicians are worried about their jobs. And politicians may have convinced the Federal Reserve for now that inflation is under control. But these latest government figures prove that it is not. No inflation? Bull. The numbers I just gave you come out of Commerce's Bureau of Economic Analysis. The Bureau of Labor Statistics is part of the Labor Dept., which is headed by Alexis Herman. And I don't think it will surprise you to learn that Ms. Herman is one of Al Gore's key campaign advisers, even appearing on TV during the Democratic convention to plead the case for his election. Ms. Herman's organization can't seem to find any inflation, despite all the rising costs being found by the Commerce Dept. The Labor Dept. is still reporting consumer inflation of 3.5 percent since last year, which is an entirely unacceptable level when the Commerce Dept. is reporting that incomes are rising slowly. In July, personal income and disposable income rose just 0.3 percent each. Take it back a few months and income is up only 2.4 percent over the last five months. But while the low-inflation fairy-tale may work for its political masters, it creates some unintended problems. The high level of consumer spending being reported by the Commerce Dept. is almost guaranteed to result in strong economic statistics for the nation's third quarter that ends this month. Trouble is, that GDP number - plus the inflation implications I mentioned above - are likely to send the Federal Reserve back into a rate-tightening mode. nypostonline.com