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

To: stockfiend who wrote (79036)	5/13/2008 10:59:10 AM
From: mishedlo	Read Replies (3) \| Respond to of 116555

This is why general inflation is raging worldwide, not just in the U.S., and so not just because of the dollar as you have stated in previous blogs. No, that is why prices of some things are still rising. Prices are a lagging indicator. Furthermore price analysis is fundamentally flawed for reasons I have pointed out many times. Peak oil Increasing demand external to US (namely China, India and emerging markets) Monetary inflation in China and India It is impossible to find a representative basket of goods and service to measure. Government manipulation of price data. It is absurd to think interest rate policy in the US can address the above. It can't and it's a mistake to attempt to follow prices. The cure is to get rid of the Fed. The market will quickly sort out where rates should be. Mish