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

To: Carlos Blanco who wrote (22900)	12/5/2004 9:46:48 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

salaries and contracts indexed to inflation rates (or denominated in other currencies) become the norm. No chance You have to be in fantasyland to propose that. ggg Wages are declining and will continue to decline as long as we keep losing jobs to China and India We are gaining parttime jobs at walmart and losing them at banks and construction and IT Mish

To: Carlos Blanco who wrote (22900)	12/5/2004 11:32:27 PM
From: Tapcon	Read Replies (1) \| Respond to of 110194

politicians always do whatever is necessary to ensure their own survival, which is dependent on people never getting to the point where they become so angry that they take up arms or vote them out of office. as such, you're guaranteed that inflating debt away will always be facilitated when enough of the population is threatened by a large debt crisis. I think you are spot-on with this view. And it makes me wonder whether the low interest rates on 30 year bonds and mortgages, in addition to the strong showing in the home-building stocks is a rational response to expectations of higher inflation. In other words, is it not rational in this environment to leverage the purchase of commodities like houses with cheap long-term money? In the past couple of years the carry trade was borrowing short and lending long. Does it now make sense to borrow long and puchase commodities likely to inflate?