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

To: sea_biscuit who wrote (86672)	9/20/2007 4:39:32 PM
From: GST	Read Replies (1) \| Respond to of 110194

You don't need rising wages to have inflation. Cheap labor has subsidized our consumption along with cheap credit and cheap oil. These things are history -- we are now witnessing the end of cheap oil, cheap money and even cheap labor. Americans have an appointment with destiny -- it is called growing poverty and it will be accompanied by a weak dollar and rising inflation in a slowing economy. We will have more inflation as our economy slows -- not less. We will have more inflation as unemployment soars -- not less. We will see things that we want priced out of reach even as our incomes decline. We are confronted with a future in which our economy stagnates and we are made poor by a sinking dollar and ever rising inflation. Mish and others like him have it dead wrong when they say that we are facing future deflation. The odds of deflation are extremely low indeed -- the odds of inflation are extremely high. The impact will be felt most by Americans who do not have globally competitive skill sets -- the less educated among us. But as a country our fate is clear - a lower dollar and rising prices.

To: sea_biscuit who wrote (86672)	9/20/2007 9:22:50 PM
From: Lazarus_Long	Read Replies (1) \| Respond to of 110194

wages cannot increase because of competition by cheap labor across the world. WAS cheap labor- -comparatively. When you join it, then fall behind it, it no longer looks so cheap. All that is required is that a large part of the world achieve an American standard of living. The problem is there are not resources for a large part of the world to achieve the current American standard. That means the American standard must fall. In economic terms, the price of of goods, energy, entertainment, etc must rise to force consumption down. That's called inflation. If the gov't tries to fight it (as it seems to be doing as as seems inevitable), we could see hyperinflation.