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To: zonder who wrote (241132)5/18/2003 12:53:21 PM
From: Ahda  Respond to of 436258
 
Ttue the largest factor of inflation that is showing up is oil.

If you look at these stats it appears we have been experiencing lower prices in retail products for some time now.

data.bls.gov

Our inflation has been in wages and housing. Our salvation for the whole has been in reduced prices on retail items.

Wage increases in the upper end have pulled cash surplus from the non human entity called corporation which at one times was a collective effort of a group. Income has become so high at the upper end it now resembles I collect and I will do so no matter how I shrink the group. And the group of course demands higher wages.

Inflation has not really been seen in product price increased import has kept costs down. Base commodities price pretty well proves this out. Crude prices in manufacturing decreased .4 in April.

The US needs inflation when you expand any business you are doing so as you anticipate that expansion will give you increased future revenue. That increased revenue is tied into the cost of expansion. If your projections do not work and your revenue does not increase your business and the loans attached to it are dead meat.

I honestly believe too many dollars here in the USA became too high operational costs. This did not affect production but did make ir nigh on impossible to increase production as costs had gone beyond opportunity.

When you inflate values you stretch the ability to pay off your debt too far into the future. Even a whiff of the word deflation means inability to pay off debt. Then you cannot add dollars to an economy there are too many out there already.

Regardless of the blunders of the FED the global market as well as local market will self correct. Markets are now doing so by reappraising the future power of value of our dollar.