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

To: GraceZ who wrote (51437)	1/25/2006 6:51:30 PM
From: Mike Johnston	Respond to of 110194

There are many people that use gold as an indicator of inflation. Gold overshot on the upside in 1980 and then overshot on the downside in the 90's so it balances out, but gold has been good in tracking the general price level over long periods of time. You are using productivity growth to prove that inflation is low, while it is just the opposite. If the growth is not properly adjusted for inflation, then productivity numbers will seem to be higher than reality when inflation is high. Incomes have risen sharply in finance, banking, lending etc. the very areas where a lot of new money is being shuffled, areas associated with the myriad of interconnected bubbles that are in existence today. Productivity growth is not what it seems, but money growth is certainly not lacking. I do not work in the hospitality sector, but it did not escape my attention that lodging prices have increased roughly by 50% in the last 4-5 years. And again, inflation is not something that can or should be adjusted for income. Did gasoline double in price only in NY and SF ?

To: GraceZ who wrote (51437)	1/25/2006 7:04:10 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

and lived in a place where incomes have risen sharply over the years due to sharply rising levels of productivity What you call rising levels of productivity is simply more money being shuffled. I can transfer $100.000 between accounts, with the press of a button on my computer, just as easily as i can transfer $1000. If i transfer 100K, does that make me 100 times more productive than if i transfer 1K ? If a real estate agent sells a house that has doubled in price, does the higher sale price make this agent twice as productive ?

To: GraceZ who wrote (51437)	1/25/2006 9:00:38 PM
From: Fiscally Conservative	Read Replies (1) \| Respond to of 110194

"If one worked in the hospitality sector (a low productivity growth sector) and lived in a place where incomes have risen sharply over the years due to sharply rising levels of productivity as well rising net worth due to a steady influx of multi-generational wealth, like NYC or San Francisco, someone could have a very warped view of inflation." Wow,theres a whole lot of words there. Was wondering if you can cite any sources;can you back any of this up,or is this a point of view,which then is ok with me. " a steady influx of multi-generational wealth " A steady stream of immigrants,yes. But,multi-generational wealth? Hosptality sector? Like tourism? New York certainly has seen a steady increase in this area since 9-11. A low productivity growth sector? I'm confused again.