Tuesday, July 24, 2007

Inflation at Work

From the headlines: Top US Market Hits All-Time High

Dollar Wavers near All-Time low


Anonymous said...

But this is good. The lower the dollar, the less we're getting screwed by undervaluation in the Asian currency market. Besides, the Brits deserve a break. When they can buy a video iPod for £80 it will make up for the humiliation they've suffered in the last sixty years or so.

¡Viva la inflaciĆ³n!

Joe said...

Inflation is supposed to be a negative for the stock market. Witness the 1970s, when we had increasing inflation and a lower stock market, which is why everyone fled to money markets paying 14%. The stock market corresponds mostly to GDP growth, not CPI growth.