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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (23423)	12/13/2002 3:58:49 PM
From: philv	Read Replies (1) \| Respond to of 36161

Inflation in the air. Jim, listening to CNN, unions are starting to demand substantial wage increases. Eg. NY city employees. All you need is for one big union to achieve their goals and set the minimum expectation for everyone else. I have always maintained the Fed doesn't really care about inflation as long as the public is willing to absorb the costs. Now we are beginning to see resistance, and demands from the unions. Could be the start. Inflation is bullish for POG. Inflation devalues the dollar. I know it is hard to see inflation when everybody is talking about deflation, job losses, no profits.....but it is coming nevertheless, spurred on by the Fed's run-away printing press. At first, inflation will be selective, slowly building but to eventually involve everything. We already see selective inflation in housing price and lately commodities. Soon interest rates will be going up. And the Fed doesn't dare slow down the printing press because of the danger of implosion. Quite a balancing act, and it will get more complicated. I expect huge attempts to contain the POG, as they try to keep this juggling act going. JMHO Phil