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

To: GST who wrote (53914)	2/15/2006 2:43:05 PM
From: pogohere	Read Replies (1) \| Respond to of 110194

These same workers are increasingly productive -- and their productivity is linked to them earning higher incomes and spending more of what they earn. This in turn puts heavy pressure on commodity prices -- and this price pressure is inflationary. This is all independent of growth or shrinkage in money supply. Unfortunately, what happens then [failure to save] looks set to be a very serious spike in US poverty and overall stagflation. I infer from your comments above that you would conclude that the lack of money in the hands of consumers in the US will result in lower prices as there will be less pressure on commodity prices. And that is all independent of growth or shrinkage in money supply. Do I infer correctly? Whaddya say?