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To: Tommaso who wrote (68571)	8/21/2006 10:33:20 AM
From: bart13	Respond to of 110194

I should have said that the rate of inflation declined from 1980 onwards. ... I suspect that his simplistic formula was aimed squarely at Keynes's memorable assertion, "Money does not matter." Looks like we are indeed in general agreement. Its virtually impossible to get a full view of inflation and investing across in just a few words on a forum too. And as far as developing a decent workable approach, money supply and its various elements is only one item, albeit the most important one in my opinion. The productivity increases are another and the fiddling with CPI is another. Here's a recently updated chart showing reported US GDP and then the same figure adjusted by John Williams public data on how much actual CPI differs from real inflation. And then there's the behind the curtain effects of the Fed and other central banks, vested interest promotion of BS, etc etc... pretty soon its enough to keep me off the streets and my head spinning trying to track and make sense of it all... G

To: Tommaso who wrote (68571)	8/21/2006 11:39:11 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

'I should have said that the rate of inflation declined from 1980 onwards. Inflation was very high in 1980, and prices for comparable items have increased almost 150% since then' And housing up 5-10 fold in many areas since then while gold is still below that prior peak. Changes in the rate of inflation are key. The winds of change are now apparent that the 1980-2003 period of disinflation is now a memory.. Continued monetization of the long end and our mounting twin deficits come home to roost soon. Add costs of passing though energy, RE prices and natural disasters and it ain't pretty for the average Joe. Folks can define inflation any way they want. To me it is loss of purchasing power of your dollar. For most things folks in the US need they are going up in a big way.