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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (3997)	4/8/2004 10:34:41 PM
From: CalculatedRisk	Read Replies (2) \| Respond to of 116555

Thanks for that commentary by Hoisington and Hunt; it is excellent: hoisingtonmgt.com A couple of days ago you commented on how commodity prices were disinflationary and I think Hoisington explained it very well. He wrote: "The unhappy fact is that rising prices of commodities, gasoline, medical care, food, and other non-discretionary items that people buy without concomitant increasing income is not inflationary, but disinflationary. In essence, the hike in such necessities acts as a tax in an income constrained environment. Income growth in excess of price changes is critical to getting the inflation ball rolling, and that simply is not happening." Great article!