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Registered
Join Date: May 2001
Location: Peoples Republic of Long Beach, NY
Posts: 21,140
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Discount all the price noise, including commodities markets, and common knowledge says growth rates affect inflation. Growth means added wealth. For instance does the debt add an over weighing of wealth?
Even the WSJ connects a slower GNP with lower inflation in many of their articles. So in a contrast faster growth stimulates inflation. If you want a booming economy you risk inflation so the idea says. [Inflation meaning the value of the dollar without noise.] From this point of view opinions are made on investment, etc. Differences in opinion made markets.
What if the idea of lower growth reducing inflation and visa versa is wrong ?
If the wrong idea is used to base opinions then it becomes more noise of a different gender.
If the right idea is used then maybe things become clearer ?
I ran with this above on my first reply.
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