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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Cactus Jack who wrote (793)9/26/2003 10:09:11 PM
From: Jim Willie CB  Read Replies (2) | Respond to of 110194
 
slow response to Blaznick's commodity deflation point
sorry for slowness, backed up badly

I have been saying the same thing for a year now
the price inflation which we have been seeing is the horrible kind
IT IN NO WAY OFFSETS DEFLATIONARY PRICE PRESSURES
IT AGGRAVATES THEM
by raising the entire cost structure
which will be joined in force by rising health care costs

we have incredibly shrinking corporate profit margins coming
the higher energy prices are hardly considered bullish for either corporations or households
but numbnut economist cannot see the parallel with other commodities

I actually read that rising commodity prices is evidence that deflation's grip on the economy is easing, and we have begun the recovery
NOTHING COULD BE FURTHER FROM THE TRUTH

the real story behind the story is...
THE COLOSSAL INEPTITUDE OF AMERICAN ECONOMISTS
they have been urging policy for a massive train wreck
and misreading all signals leading up to it

but, dont think for a minute that this is bad for gold
as the US Economy sinks further due to this commodity price effect, coupled with rising import product price inflation effect, the USDollar will sink like a stone buoyed by mediocre flimsy balloons

AND GOLD WILL SKYROCKET AS A SAFE HAVEN

/ jim