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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 (54473)	2/22/2006 1:55:33 PM
From: NOW	Read Replies (1) \| Respond to of 110194

no one here would debate the idea that one casue of commodities rising is lack of capital investment in the sector. but the other side of the equation should not therefore be ignored should it?

To: GraceZ who wrote (54473)	2/23/2006 1:54:24 AM
From: John Vosilla	Respond to of 110194

I would say construction costs, infrastructure costs, cost of oil, utilities, insurance, your RE tax bill, medical, education ect.. are the big costs that you need and must pay for. You get hit not only from rising direct costs but also when retailers and businesses must pass along the costs in order to make a profit.. These record low interest rates have been a big drag and keep inflation lower but it pumped up certain assets that will result in even greater inflation down the road. That is the cost push. The relentless monetary growth along with the debts of the government over the years are the demand pull part of the equation. 70's redux taking a different path this time it seems..