[quote=4plexowner]no inflation in wages and no inflation in housing

the coming inflation will be in the things that we need on an everyday basis: you know, things like bread, milk, gasoline – simple things like that

I think it’s called stag-flation although this time around, hyper-stag-flation might be a better description

it is amusing to read all these people thinking that inflation is like magic and will somehow save them from their previous delusional thinking or somehow enable their current delusional thinking

here’s a very simple phrase to keep in mind:

THERE IS NO SUCH THING AS A FREE LUNCH[/quote]

I’m with 4plexowner on this.

I don’t see inflation in the consumer products that Walmart sells (plastic tubs, electronics, etc..) because of the glut of productive capacity brought about by manufacturing automation and low labor costs in China, Vietnam, Cambodia, Myanmar, Bangladesh, India and soon, Cuba (and eventually Africa). If there is peace in the Middle East, I have no doubt we’ll see lots of garments “made in Palestine”.

I would begin to worry about inflation if and when China and India become consumer societies.

What will be interesting to watch, in the next few years, is that as interest rates move up, house prices will commensurately drop while we have to pay more for food and education, health care and insurance.