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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: dan6 who wrote (64921)	7/29/2010 5:43:59 AM
From: elmatador	Respond to of 218673

Dampening the price increase appetite. There is only one way and it is down. There is not going to be price inflation. Any good whose prices go up, will see producers crowding that market and taking the profits and decreasing prices. The result is a chase to protect the value of whatever you have. Everyone seek to protect the value of anything he owns. The case of China is exemplary. As every Chinese wants to own a house, people buy and wait for them to come to buy, thus increasing the prices of houses. In the US there is nothing one can hoard to protect the value. In the case of jobs, any vacancy will have a queue outside fighting for it. Thus no salary pressure on inflation. Government as the employer of last resource? Do not even think about it! Governments need to cut and cut deep, and painfully. And if one succeeds in protect the value of what he owns he finds immediately a partner: the government hungry for taxes.