rubberhead
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- Sep 8, 2009
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- #61
Commodity prices are rising, which tells you that inflation is serious. If deflation were a true concern then commodity prices would be going down.
I have heard the argument that gold is a "crisis" hedge as opposed to an inflation hedge, but if I had to choose between crisis and inflation, I would choose inflation. And the Fed often does just that. Although we'll probably just end up with an inflation crisis. I tend to agree that rising commodity prices indicate inflation, though.
Does the CPI account for government subsidies (which help keep prices down artificially)? That might fudge the inflation numbers a bit.
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