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To: elmatador who wrote (87568)2/29/2012 6:50:10 AM
From: THE ANT  Read Replies (1) | Respond to of 219782
 
Sorry my last post was ment for you.You see if Brazil creates inflation in wages of 5% it all stays within the country.It could shift wealth from rich to poor but the net will be zero--- but commodities (prices set by the world not Brazil) may rise but by no more than Brazilian wages.You see the US will eventually create wage inflation but the cost will be a falling dollar and real inflation in commodities that are not compensated by a wage rise.That is why the US will run in place for 10 years.To create wage inflation we must devalue our currency which will raise the non wage portion of inflation (commodities) above our wage inflation.This results in a net decrease in living standards,but this is not avoidable any ways as we were living above our means.Now technology and capitalism will work to compensate us for the real rise in commodities and we will have a very low rate of growth for 10 years. When China stops printing they will have falling commodities relative to wages like Brazil has ,and they will have a tail wind