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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (21054)	9/23/2003 3:26:39 PM
From: Tommaso	Read Replies (1) \| Respond to of 39344

That's not what he said. He said not to bet the ranch on an inflation cycle unfolding immediately. Even diehard old-fashioned (and somewhat discredited) monetarism a la Milton Friedman allowed a two year lag for monetary expansion to show up as general inflation. It is also true that the most recent (last few weeks)Fed figures seem to show incipient tightening, whether by design or not. But not only is inflation possible, it has already HAPPENED. The government figures are deceptions. Just check out college tuition charges, gasoline prices, medical costs, legal fees, dental bills, and all sorts of service and labor costs; get a quote on having a new bathroom put into your house. The government seems to be looking at the prices of shoes made in China, computers, TV sets, appliances, and so forth--and even some of that is hocus pocus, such as "hedonistic" ratings of automobile prices. It is in the government's interests to misrepresent the amount of inflation that has occurred. The people who are really getting hurt are people trying to live on unadjusted Social Security payments and on the 1% return they get their CDs. Other pensions are not adjusted either. At some point the cohort of Americans aged 65 and upward may wake up just as the young people woke up when Congress tried to make them all go fight the Vietnam war. Bush is still popular with a lot of them because he looks nice and he doesn't have sex with young women in the White House.