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

To: mishedlo who wrote (24230)	1/8/2005 12:33:08 PM
From: Tommaso	Respond to of 110194

>>>Goods imported from China have hardly gone up in price if at all, in spite of mammoth PPI increases.<<< Of course, that's because the Chinese currency is hitched to the dollar and labor costs account for much of the price of the goods. As often happens, exporters try to hold their prices down, however, in the earlier stages of currency adjustments in order to keep their markets; dollar decline against the Euro is still not much affecting the prices of French and Italian wines, for example. Yes, I was eating out in Paris all last week and it was a very expensive proposition! On the streets, however, instead of SUVs, you see lots of very small and very quiet diesel-powered two and 4-seater cars that get better mileage than the Prius, plus the extensive mass transit systems in large part running on ultracheap nuclear-generated electricity. At this point, real wealth and the real standard of living in France, especially the quality of life, has pulled ahead of the United States. The price of vehicles in the United States will depend on the nature of the vehicle. Already people are paying higher than official list price for the Prius. When gasoline costs $5.00 a gallon, a five-year-old SUV that cost $40,000 to start with and which gets 10 mpg on short trips might sell for under $8,000. The housing bust will depend on location. I do not really follow real estate as an investment. I just know that my fully-owned house and yard are a hell of a lot better deal than the grungy two-room apartment in Manhattan that goes for a "bargain" $1,000 a month and which would sell as a condo for over $200,000.

To: mishedlo who wrote (24230)	1/8/2005 12:55:58 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

There you go again with selective memory. Here we see using the government's own massaged numbers that import prices ex energy is up 3.4% yoy. btmna.com Even under the Fed's bogus economic theories (especially since import prices are a cornerstone of the disinflation argument), that's simmering inflation, and certainly explains why you are hearing "a number of them" now engaging in basic Ass Covering 101. Kind of like having promiscuous sex without the consequences, when you don't do anything about it though.