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.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bill Ounce who wrote (3847)	12/5/1997 12:58:00 PM
From: Gabriela Neri	Respond to of 116810

Its hard for me to buy deflation arguement. I think this is the story line which the smart money guys want to sell to the average Joe's so that they can liquidate their stock and bond positions and get out. Japan is printing money is a serious way, currencies are being debased, the price of goods may be going down due to Asia but the price of services is not, and the cost of labor is going up. Ex Fed Gov. Linsday makes some rather powerful comments for the bulls to think about. As for me, I just see the seeds of inflation being planted and its going to create a bumper crop of inflation come harvest time. Equity prices can not sustain themselves when earnings will come under pressure due to companies not being able to raise prices of goods and having to pay more for labor. Granted, their raw material costs will go down but it wont be enough to offset the negative labor costs and margin squeezes. Central banks , if confronted with a choice of inflate or accept deflation will most obviously inflate. Its a matter of self preservation. Gold will shine bright at the end of the day. Its almost obvious.