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


To: LLCF who wrote (2271)6/9/2003 10:06:32 PM
From: zonder  Read Replies (1) | Respond to of 4905
 
If you wish to say "investing into t-bills", say "investing into t-bills". Not "buying dollars for yen". Those are two different things.

Oh and what is with this ending each sentence with "blah blah blah, no?"? Did you become French in the past month or so?



To: LLCF who wrote (2271)6/9/2003 10:14:16 PM
From: GraceZ  Read Replies (2) | Respond to of 4905
 
My post regarded HER ANALYSIS that you will see rising wage demands push inflation. I don't think you do, I think that would lag way behind.

No, I think you misinterpreted what I said. Wage demands usually show up when prices rise, prices can rise in the absence of wage demands or wage demands can show up in the absence of rising prices. But, we usually associate an inflationary period as having both rising prices and rising wage demands because one begets the other in a vicious cycle. It would be hard to get the cycle going with the current environment where there is such a large offshore labor force that has a much lower standard of living and is ready, willing and able to replace American workers (and American companies willing to replace them).

Yet we still have price inflation to a certain extent otherwise so many wouldn't be complaining about rising healthcare, education and insurance. You'll notice where price inflation has been the stickiest are in those areas of the economy where the labor force is somewhat protected against lower labor cost outsourcing (medical, education, transportation, government services, insurance, etc.)

So we have an economy that is bifurcated to a certain degree with certain segments suffering (or benefiting depending on your point of view) from falling prices and lessening wage demands while other parts of the economy are experiencing rising prices and rising wage demands. This is why few can agree as to whether the rate of inflation is accelerating or declining.