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

To: mishedlo who wrote (49997)	4/23/2006 10:15:35 PM
From: orkrious	Read Replies (2) \| Respond to of 116555

If Gold goes to 3000 it will not do...anyone...any bit of good. Sorry Mish, but that's clearly not true. Ork, ILD, LLCF, and many others on SI will prosper mightily with PoG at 3000. <g>

To: mishedlo who wrote (49997)	4/23/2006 10:55:20 PM
From: Chispas	Read Replies (1) \| Respond to of 116555

Fleckenstein's weekly appearance (excellent one) - moneycentral.msn.com

To: mishedlo who wrote (49997)	4/24/2006 1:12:56 AM
From: Perspective	Respond to of 116555

This gets at what I was writing about earlier - that the Fed conveniently divides inflation into two catergories. "Bad" inflation is only inflation that puts sand in the corporate gears by raising the costs of inputs and hurting profitability: labor, and now to a lesser degree, commodities. They ignore "good" inflation, price increases in any assets that serve to increase aggregate demand. They don't give a rats ass about true price stability, or they'd define "price" to include ALL prices from consumables and durables to houses, stocks, and bonds. So as you've said, we've already seen a massive explosion in inflation, just not in the Fed's narrow definition of "bad" inflation. When the Fed has already inflated everything it can possibly inflate, and the money begins showing up as bad inflation, it is, as you say, "checkmate". Heads, input costs soar and corporate profitability gets nailed. Tails, aggregate demand weakens and corporate profitability gets nailed. BC