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  • MarketGuy: 
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  •  • StockTalk (164)
  "deflation"? Maybe VERY short term, but the monetizing of US debt, (2.2 + trillion) IS inflationary...period. You can't flood the system like that and tout inflation's under control

  Nov 09 11:52 AM | Link | Reply
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  • tripleblack: 
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  • Stan Bruns Illustrations
  Part of the answer lies in the 9.5% jump in productivity. Those persons with incomes tied to incentive programs see an increase as a result of that.
  
  Another factor is that many companies are aware that their workers are sprinting hard to respond to the "produce or die" scary job markets. The more intelligent managers are arranging to recognize this effort in some manner, probably with bonuses rather than raises.
  
  Finally, part of this is the inevitable effect of cost of living raises and contractural obligations built into union contracts, which occur with great regularity regardless the condition of the overall economy.
  
  I do NOT think, however, that America can generate 9.5% productivity gains every quarter (and in fact, I doubt we actually did it this time as well, but that's another topic).

  Nov 09 11:52 AM | Link | Reply
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  • Tack: 
  • Comments (448)
  Yeah, sure.
  
  Let's see:
  
  wages are rising, commodities are rising, inventories are shrinking, production has been cut back severely, the dollar is dropping daily, unproductive government spending is mushrooming and trillions of other newly-printed dollars are hovering out there in the banking system that the government is reluctant with withdraw.....
  
  but, we're going to have deflation?
  
  Not the slightest chance in the world, as those invested in all those "safe" Treasuries and other fixed-rate investments will soon discover to their dismay.

  Nov 09 11:55 AM | Link | Reply
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  • davidbdc: 
  • Comments (304)
  Not sure, but as someone that relies on working to feed the family I'll take whatever increase might come my way.
  
  From a theoretical perspective I don't see some deflation as being bad. If it becomes sustained for a multi-year period then we'll have a problem.

  Nov 09 11:56 AM | Link | Reply