The Stock/Investment Thread

[wiggin]

I never said that there's runaway inflation. I don't think what's happening at the moment is gradual. Look at the dollar index that you find on Bloomberg. Down about 15% in a year. Not really gradual.

Oh, please, you need to look at larger trends and the trade-weighted exchange rate. There's a lot of volatility in currency prices on short time periods.

Sure, it might be good macro-economically speaking, but it's just way too fast. How does it make sense to have a savings account of 1 to 3% interest per year when the dollar is inflating at 15%? Who would keep on buying the debt? It will cause a total meltdown of confidence if the Fed doesn't act in a few months. Seesaws is what the Fed is really good at.

Trade-weighted exchange rates are NOT the same as inflation! The dollar is not inflating at 15%; it's more like 1-1.5%, which is below normal.

On to the topic of artificially high wages. If you see all the rest of the central banks in the world raise their interest rates, and the US does too, I don't see how that supports artificially high wages. Further, I don't think wages are artificially high in the US... it's more a question of energy (identical to commodity, e=mc^2) prices going up (compared to a world currency mix) in general that are forcing wages to stay low or fall to compensate for the high energy prices.

I honestly don't know what you're trying to say here. Generally higher (core) inflation feeds into higher wages.

[agamemnus]

Trade-weighted exchange rates are NOT the same as inflation! The dollar is not inflating at 15%; it's more like 1-1.5%, which is below normal.

Since the US economy depends on international trade (and the price of energy), the effect is very similar.

I honestly don't know what you're trying to say here. Generally higher (core) inflation feeds into higher wages.

I'm saying that the US doesn't have artificially high wages in my opinionz.


Aaanyways..... let's get back on track... what are company earnings reports to watch in the month of May?