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

To: Little Joe who wrote (5738)	1/22/2004 1:53:26 AM
From: mishedlo	Read Replies (3) \| Respond to of 110194

there is indeed inflation in SOME things. There is NOT inflation where the FED wants it. Namely wages and employment and jobs. There is quite simply NO pricing power (in fact there is NEGATIVE pricing power) if food and medicinne and energy go up and salaries do not there is less $ chasing other things. I have said this until I am blue in the face. Either you get it or you do not. The FED has almost NO control over the price of oil, food, or narural gas, or insurance. YET everyone here wants the FED to hike to control what it simply can not control! Period. Would an interest rate hike of 8% affect the price of oil? If so WHY? Would 8% cause food prices to drop? Would it cause NG prices to fall? WTF would 8% do? That is exactly where Russ's argument goes to hell. It would likely do NOTHING other than KILL the entire worlds economy in one fell swoop. In that end, oil prices would FINALLY fall but at what price to the US and the world's economy? I am not sure NG prices or food prices would fall at all. If you think the FED can control the weather in Argentina that Russ harps on, please tell me how. Sorry, but this train wreck is IMPOSSIBLE to fix. Raise, lower, stay the same who the F cares? This train is history. The only question is whether and how long the FED fights it. I say a long time. Russ say no. That is the difference. M