Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: sea_biscuit who wrote (72450)	12/17/2007 2:52:09 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Peak oil does not amount to inflation Nor is it even a result of inflation. If there is peak oil just what the F good would it do to hike rates into it? No one has ever answered that. BTW - car prices are down but the cost of everything in them is up. So do not tell me prices have to rise. They dont and they didnt. The only things really rising in price are inelastic in nature. Mish

To: sea_biscuit who wrote (72450)	12/17/2007 8:57:10 PM
From: elmatador	Respond to of 116555

The prices were too cheap. Too little demand there was more goods looking for buyers. Once the half of the planet became part of the gobal economy; they are competing for those goods and they increase in price. But luckily there's the role that economic incentives play in determining the price of goods. The increasing of food prices is unleashing forces that within the next two years will throw more produce into the markets thus stabilizing prices. Less IT engineers more diesel mechanics to repair tractors. More box car in the rail, more fertilizer produced and shipped, higher farmland prices. We'll end up with a higher % of agriculture in the GDP.