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

To: skinowski who wrote (88285)	11/1/2007 11:25:34 AM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

Incomes and the cost of doing business continue higher in nominal terms. In real terms most Americans falling behind. Seems you now have demand pull and cost push components of inflation working in overdrive due to our mounting twin deficits as the reserve currency, Chindia and instialble demand of 2B people upgrading their lifestyle dramatically, global warming and added costs of doing business, productivity gains of disinflation due to the internet age reaching a peak, excess monetary and credit creation, misallocation of capital to the war effort, bailout of financial institutions due to the housing bust. Pass through of the rising costs of goods and services we need on a daily basis not going away anytime soon.. Continuation of the monetezation of the back end of the curve to support negative real interest rates and thus stretched financial asset values is imperative to work through this mess.. Sometimes the person calling himself the expert in this raging debate is the most clueless of all cherrypicking to support his myopic view... Mish still in denial siliconinvestor.com

To: skinowski who wrote (88285)	11/1/2007 11:39:18 AM
From: GST	Read Replies (1) \| Respond to of 110194

<Deflation of a currency while incomes are stagnant seems like a straightforward path in that direction> Sorry - but lets use the words correctly -- you are not referring to "deflation" of a currency, you are referring to "devaluation" of a currency --and currency devaluation is a key driver of our inflation. As for wages not going up, of course that is far from true. Global wages are soaring as the world becomes a global industrialized urban marketplace.

To: skinowski who wrote (88285)	11/1/2007 12:19:50 PM
From: KyrosL	Read Replies (2) \| Respond to of 110194

<Globalization means equalization of living standards among participants> That's not necessarily true. Living standards depend heavily on intellectual capital, such as civic institutions and attitudes, the rule of law, etc.; this is by far THE most important determinant of economic prosperity. Another determinant is agricultural and other natural resources per capita. Finally, there is investment in infrastructure both physical and educational. Countries can develop intellectual capital that facilitates economic growth, but it usually takes generations to change cultural attitudes that impede growth. The US is very well endowed in this area. There is no way countries can make up for inadequate physical resources per capita. The US has overwhelming advantages in this area compared to most countries. Finally, there are infrastructure investments, which are by far the easiest to implement. Here the US has a very good basis, though it needs repair and maintenance. Some areas , like secondary education, also need work. One thing to keep in mind is that the kind of manufacturing jobs the US has lost can be reclaimed in a virtual blink of an eye, exactly because the US already has the other elements in abundance, if we determine that it is to our advantage to do so. Witness post-war Germany and Japan. They were bombed back to the stone age and were back on their feet within a generation, based only on their intellectual capital.