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

To: Andrew who wrote (2009)	11/10/2003 8:14:40 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

Price of food and energy and most commodities are rising. the Fed ignores these "volatile" elements through the invention of the "core" CPI. and it must be said: there IS deflation in many things. Wal Mart's average SKU price (based on some 156,00 SKUs) is down more than 1.5% YoY. that's a pretty sizable "basket of goods" showing deflation. also, there are deflationary pressures in our own labor market in the exceptionally persistent deflationary gap. see the Hoisington article in my previous post here. they argue that the ultimate lows in yields and inflation rate could still be some years away. The big question for me is how will a mix of inflation and deflation effect the price of gold short and long term i cannot think a fall in M3 is bullish for gold. also, is gold not rolling over in other currencies. maybe a USD-based investor can ignore this; maybe not. also, an article in the Financial Times today points out that gold has become quite a plaything of the hedge funds, despite bearishness among commercials.