Let's bring this one back, our original discussion on Euro prices started in Dec. 2, 2003.
Here's my thought. China demand changes everything. $2 Billion people who buy cars, consume and have to eat have changed everything. Gas prices. Now above $1.68 for regular and climbing. The NY Times says gas will hit $3 per gal. during 2004.
(They are good at reporting and bad at business but maybe they hit this one.)
China is importing gasoline at record amounts and is the number two consumer of gasoiline after the US. Bottom line... They are using our gasoline and driving the price up.
(IS THIS INFLATIONARY? IT WAS IN 1973 AND 1980.) This thread talks about our views that the dollar is falling through the floor versus the Euro. DOES THIS MEAN HIGHER RATES? iF NO, AT WHAT POINT DOES THE DOLLAR HAVE TO BE SUPPORTED BY HIGHER RATES?
Commodity prices are up. Melonie talked about gold. Heres' a midwest one. Scrap steel.
For twenty years scrap steel per ton was low and flat. I hear it is way up. The Union Pacific railcars have soemthing to ship west I note, and it seems to be car after car of scrap steel. China and Russia are buying many of the old closed steel mills on Lake Michigan. They are shipping the entire 1935 to 1958 era equipment intact and
reassembling it over there. The equipment is old and not efficent, but paying someone 50 cents a day to work on the old 1935 equipment and the math probably works on production and using it.
Any way here's my trouble making question. Can we have world wide inlfation on basic commodities (food, clotheing shelter, transportation) and deflation on wages and
industrial output in the US?
SURE MIGHT BE A DIFFERENT TYPE OF RECOVERY SHAPING UP???
I'll freely admit I have no idea but I finally THING i got ther big picture and I'll repeat it.
CHINA AND 2 Billion extra consumers changes EVERYTHING.



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