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To: rubbersoul who wrote (128047)	8/12/2008 11:51:35 AM
From: koan	Read Replies (4) \| Respond to of 312930

Japan has has the highest inflation in 29 years. Energy and food prices worldwide including the US are soaring and gold is in freefall. I have spoken with a lot of people about price increases and it is stunning how fast they are rising. I know gold going down is correlated with the fact the dollar has gone from 72 to 76 in just a few days (there has been over a 90% inverse correlation between the two for a long time). Still where is the inflation variable? Maybe just delayed, or maybe deflation is the primary variable now? I still cannot see deflation in the long run. 20,000 new cars a day in China, probably the same for India and another 20,000 worldwide. 60,000 new cars a day one million every two weeks or so. Plus huge new demands for electricity. One new coal fired power plant a week in china. And we are at peak oil. Hard to figure? The currency analysts on Bloomberg have been saying the dollar should rise. I have noticed they are right quite often. I still cannot figure out whether inflation or deflation is going to prevail? It seems to me currency deterioration alone would cause inflation regardless of the economies e.g. Zimbabwe? So I remain perplexed-lol.