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

To: Wyätt Gwyön who wrote (11506)	4/8/2004 11:36:14 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

Personal consumption expenditures: Total personal consumption is $6.5 trillion Gasoline and motor oil, approx 150 b, each 15 cents= $15 b annually, so 75 cents would be 1.2% of consumption Electricity and nat gas, approx 150 b (possibly more now)= each 10% increase would be 1.2% of consumption. Food and beverages, approx. 900 b, each 10% increase would be around 1.5% of consumption. Food has even greater potential to create a subsistence crisis than energy, but combined it's lethal, maybe 3% or even 4% of consumption diverted. <so what do you imagine "falling apart" to be? actual (official) acknowledgement of inflation, and attendant interest rate increases culminating in? > Think that 3% of consumption diverted to food and energy sort of answers your question? I have no idea how the Ministry of Propaganda will spin this, what their "solution" will be. Maybe they will decide to F3IP (Fed's Fully Funded Inflation Program) it, or maybe they will try and cool things off. To me, it seems academic at this point, still to my pea brain, it doesn't appear bullish for financial instruments at all. These numbers can't be hidden indefinitely, and when they are reported as headline inflation? The press is already really picking this story up. CNBC is actually do a very good job of reporting on it. It must sell, is just too close to home for most people, and not something the MoP can cover up. What do you think?