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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (34086)	10/17/1998 11:02:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Chris, I see oil going up and stagflation being caused by a weak dollar and the soaring trade deficit. Since we depend upon imports of most important things in our lives, a weak dollar is automatically inflationary. Just as the strong dollar caused the current weak #s in CPI and PPI. But the trade deficit requires that the dollar get weaker and inflation rise again. We could also see a curtailment of easy oil supplies at any time to spur this along. The higher cost of raw materials causes capacity to eventually be taken off the market, which causes the stagnation part of stagflation. MB