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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (673)	5/4/2003 7:53:59 PM
From: GraceZ	Respond to of 4912

I have the golds and I have bond funds that are diversified globally but both are priced in dollars. I do expect inflation to accelerate and I'm always watchful for it. But as I'm sure you know it doesn't manifest itself immediately in all places equally. The Fed is holding a negative real interest rate and is trying to introduce a little inflation (which is why I don't sell the golds). The Canadian CB raised rates to head off inflation and this is one of the reasons the Can$ is rising. This makes Canadian imports more expensive but if you recall there was already a tariff on soft lumber from Canada (not sure if it's still in place) so those prices rose for us some time ago. So far the falling dollar has resulted in a lot of our trading partners eating the difference rather then lose the US market. It's had a deflationary effect on our biggest trading partners (excluding Canada). If we get cooking again all that could change on a dime.