XPost: can.internet.highspeed   
   From: Some@Guy.com   
      
   Canuck57 wrote:   
      
   > 2010 will be the year of inflation.  The price we pay for our   
   > governments indescression with debt and money creation.   
      
   You will not see inflation here unless the Bank of Canada raises   
   interest rates.  The bank rate is currently 0.25%.  A historic low.   
      
   The BofC will only raise the rate if they have trouble selling federal   
   debt.  There is no sign of that happening.   
      
   The BofC is under extreme pressure to *not* raise rates because that   
   will increase the value of the CDN dollar with respest to the US   
   dollar.  If the US raises rates, then that will give the BofC some   
   leeway to do the same.   
      
   > I expect as our US and CAD currencies fall relative to the rest of   
   > the world that costs across the board are starting to creap up.   
      
   Other countries and other currencies are in no stronger position to take   
   any sort of lead.  That's the fallacy of your argument.   
      
   > Last months US numbers tell the story.  GDP up 3% yet unemployment is   
   > also up.  That only happens because of inflation.   
      
   The broadest measure of U.S. unemployment (which includes unemployed,   
   underemployed and  discouraged workers who stopped looking for work) was   
   17.5% in October according to the U.S. Labor Department. The previous   
   high was 17.1% in December 1982.   
      
   You won't have even the potential for inflation until the official   
   unemployment numbers in the US falls to below 8%.   
      
   > If GDP is up, and the use of labour is not also up, then it   
   > means cost increases are making it into the supply chain.   
      
   No.   
      
   It means that various levels of gov't are spending more, and that what   
   they're buying is being provided by the current pool of employed people   
   - working overtime if they have to.   
      
   The spending habbits of US consumers are becoming increasingly   
   unpredictable as this recession drags on, and you can't predict   
   inflation next year until we stop talking about deflation.   
      
   > If gold is an indication, and like the past history again   
   > repeats itself, about 300% inflation is due in the next 5   
   > to 10 years.   
      
   No.  Gold will crash in the next 3 - 6 months when speculators bail out   
   of the metal, just like they did with oil back when oil hit $147.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)