TIPS. sucker bet of the decade

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Nov 21, 2009 3:10 pm

wages are 60% of inflation



starting about 2001 the was billions of peeps added to labor pool that will work for a buck a day



inflation is a TOAST for a long, long time



worldwide govt easy money

plus NO inflation

equals the prefect set-up for MUCH higher stock prices



Think a second.   

oil was 147 copper,corn, wheat etc was at historical highs in 06-07



the MF cpi/ppi didnt move.

global inflation was non existent



the global economy with a massive cheap labor pool is the REAL story



need more proof?    



go to cost or wally world and check prices on stuff......think back 10 years ago.



The world wide govt stim that saved our ass from a guns and ammo scorecard will NOT cause inflation because of massive new labor pool for many many years



"global competition for the world's resources"



you WILL see new highs blown out on oil, copper,wheat etc etc SOON

without inflation

Nov 21, 2009 4:28 pm
Shania Twain:
inflation is a TOAST for a long, long time

"global competition for the world's resources"

you WILL see new highs blown out on oil, copper,wheat etc etc SOON
without inflation
 
Can you please tell me how you reconcile the two conflicting statements above?
 
Thanks
Nov 21, 2009 4:32 pm

Also, what happens if US creditors decide they do not want to hold dollars and would rather buy something else with those dollars?  Would that not proove inflationary at some point?

 
 
Nov 21, 2009 4:53 pm

wages are 60% of inflation

 
 
 
Actually wages are 100% of inflation.
Nov 21, 2009 7:12 pm

Shania, time to slow things down a little.



The US gov't has spent roughly $3.5 TRILLION to stop this recession, to no avail. If you think there is not going to be an inflation threat in the years going forward, you have some serious blinders on...

Nov 21, 2009 8:28 pm

Man looks into the Abyss, and there's nothin' staring back at him. At that moment, man finds his character, and that's what keeps him out of the Abys

Nov 21, 2009 8:36 pm

The fact that the govt has spent trillions with interest rates at zero and no inflation in site should concern people.

Nov 21, 2009 8:41 pm

I think it's over

Nov 21, 2009 11:28 pm

Nov 21, 2009 11:34 pm

Responding to the troll simply encourages him Shania, unless of course you were replying to the serious replies.

Nov 22, 2009 6:16 pm

I don't know Shania, in it's most basic causation, inflation is the devaluation of M2 that is no longer backed by precious metals i.e. 'fiat' dilution by adding additional currency.

 
The printing presses are running 24 / 7 at the moment to the point that if they're not careful they will print us into a Keynesian 'Liquidity Trap'.
 
When unemployment turns around the devaluation of property will finally shore up, then Ben and his helicopter will have us up to our chins in debt. The only way they will be able to pay the bills is by devaluating the crap out of our currency by printing more and more.
 
IF inflation doesn't come a knocking we are going to be in another place that's much worse.
Nov 22, 2009 8:45 pm
Shania Twain:

 
Now THAT is classic........