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I think you have many things at work here.
Negatives: Virtually all commodities have completed major cyclical lows
where prices are below cost of production, have based and are now
breaking out. There is increasing global competition for goods and
services. Rising prices in the service economy and increased competition
for all manner of discretionary purchases from homes to jewelry.
Egregious increases in medical and pharmaceutical prices. Consolidation
in virtually every sector of the business economy in order to abate
excess capacity and loss of pricing power. Wages and costs have been
restrained by the use of options and equity gains in funding employment
and pension costs - a situation which is not infinite. Chart is the
latest Barron's shows that the cost of an S&P in terms of real wages has
quadrupled over the past few years.
Positives: Sea changes in the methods used to produce and distribute
goods which will continue to wring costs out of goods for years to come.
On balance, everyone is watching the positives without paying serious
attention to the negatives. I doubt that we will have the raging
inflation of the Carter era, but the lows are now behind us.
Earl
----- Original Message -----
From: <Proffittak@xxxxxxx>
To: "OnWingsOfEagles@xxxxxxxxxxxxx" <realtraders@xxxxxxxxxxxxxxx>
Sent: Saturday, January 22, 2000 12:56 PM
Subject: [RT] inflation/implication on bonds
> Hello
>
> This is now the 9Th week in which inflation is showing in full
force
>
> Where?
>
> here are the Prof
>
> Baron's page MW 15 this weekend
>
> year ago last week today
> crb 190.50 208.01 211.51
>
> industrial 183.90 202.19 205.21
>
> grains/oils 172.7 169.78 171.69
>
> livestock 208.90 248.19 249.94
>
> energy 132.5 233.39 243.45
>
> precious metals234.7 243.88 250.15
>
>
> Steve posner and all other economist feedback welcome
>
> have a great weekend
> Ben
>
>
>
>
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