Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (49977)	4/23/2006 11:07:22 AM
From: philv	Respond to of 116555

Great post, good analysis. I have always thought that the price of labor was the over arching concern in regards to the perception of inflation by the FED. As Mish points out, the price of commodities has to do with the pressures of supply and demand, and when commodities are in short supply, they will rise regardless of monetary or general inflation. Wages on the other hand, have always been of historical concern, prompting legislation such as national price and wage controls. Prices, of course cannot be controlled, and thus what is left is wage controls only. This was the experience in Canada in the '70s. History never repeats itself exactly, so I think it will be different this time. Its especially confusing in regards to wages, as some are pulling down unconscionable wages (compensation), while others are working for bare minimum, which broadens the gap between the wealthy and poor.