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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Mike Johnston who wrote (75935)	12/18/2006 10:19:22 AM
From: John Vosilla	Respond to of 110194

'..Wage growth stemming from social discontent, higher government spending, increasing inflationary psychology and labor unrest can be a result of inflation. And such wage growth can then perpetuate inflation' That psychology along with the basic economics of balancing your household budget seems to be prevalent in my area. Much higher salaries need to be offered to attract and retain workers due to costs of living spiraling out of control. To compound the problem business owners getting squeezed on all sides too. Besides labor you've got the pass through of insurance and RE taxes that are quite significant and new landlords that purchased at inflated prices also attempt to raise the base rent to justify their purchase price.. Few believe what the federal government says these days and just playing in the current game of very low rates, high inflation and easy credit because they have no other choice if they want to remain in business..

To: Mike Johnston who wrote (75935)	12/18/2006 11:15:35 AM
From: suanny	Respond to of 110194

In the US, hyperinflation will not be driven by wage growth, but by panicky people getting rid of money they already have, while there are not enough goods being produced domestically to satisfy that kind of demand and prices of foreign-made goods will soar sharply Seems a lot like what has been going on the last six years.Panicky people actually borrowing other people's money and getting rid of it to buy houses and anything and everything, which is creating demand for the seemingly boundless supply of goods coming on line to satisfy the demand caused by these panicky people who cannot get rid of money fast enough.You now believe the the price of these goods are about to explode because?Logically it seems there will be a lot goods in warehouses and docks around the world when this dollar devaluation takes place.After losing business from their largest customer it is hard for me to imagine emerging economies increasing their demand for products produced by other emerging economies to compensate for loss of american consumer.