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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 (55475)3/8/2006 8:51:45 AM
From: Wyätt Gwyön  Read Replies (2) | Respond to of 110194
 
it is strange that you won't admit you were wrong, even though you obviously were. you wrote, "This simple fact tells you that commodities are getting cheaper in a real sense."

i showed that this is incorrect--commodities are NOT getting cheaper in a "real sense", as many Americans acquainted with the real world have noticed. you should just admit it instead of pretending that what you said was accurate.

People getting richer means that commodities are costing less of their incomes, the cost as a percentage of what they they can produce.


this is absolutely not occurring in the US. e.g., energy expenditures as a percentage of disposable income have risen DRAMATICALLY over the past several years. this is the case in most if not all of the first world. in other words, most of the users of energy (by volume, at least) are devoting MORE of their income to energy expenditures. you seem to think that if some marginal users of commodities in poor countries are now using more than they did before, commodities are somehow cheaper in aggregate. they're not.