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

To: Ron Schier who wrote (12156)	5/25/1998 9:48:00 PM
From: Terry Rose	Read Replies (2) \| Respond to of 116833

Ron, Low cost of commodities certainly is an argument to explain the current level of low inflation. The problem is the type of economy generated in the U.S. is predominately service oriented. This is why wage inflation is deadly here and maybe not in other economies which are more industrial ie. Europe. Reed posted an excellent article discussing this issue (the number of his post on this thread is 12107). I personally believe that Greenspan is walking a tightrope while he delays an interest rate increase which is long overdue. Most likely he has an agreement with Clinton and or Japan to hold back on any interest rate increase. The main inflationary data (stock prices, employee stock options in place of salary, and housing costs) are not counted in the CPI so in reality inflation is already here. However at this point in time reality is not part of the equation. Terry,