This short article was born in a English writing class.
Assignment was to choose an article from newspaper or magazine or Internet, and to write a comment.
The article I chose was on the Newsweek, written by M. Englund and presented a short report around this possible risk of deflation in the US market, and if we should be scared or not.
June 30, 2003

Deflation or Inflation ?

Commentary

The author takes the May, 6 Fed statement concerning a forecast of slowdown of prices’ race and a shy warning of deflation. He starts from this point to offer his thesis that these fears are unfounded. And are unfounded because he stands for that the next issue of the chain-price index, due in few weeks, will show an impressive slowdown and prices should remain steady enough. At the moment let’s take this assertion for good, but what on a six months period? Or, better, on one year or two?

An other cornerstone of his dissertation is related to a predicted flat figure of the personal consumption expenditures [PCE] index. With this is easy to agree because is sufficient to go around in the streets to see the increasing poverty of the people.

Only with these last two affirmations we can already figure out that the columnist is waiting for a small or null rise of the prices into the next months.

Then he talks about a weakness regarding the freefall already reported in the last March and April. What it appears he doesn’t give enough importance is that weakness is a word that must be applied to the current status of the dollar. It is not a secret that into at least the last two years the dollar has been pushed and closed into the corner of the ring by the euro’ currency. We’ll better analyze later how it came.

Not happy he keeps on talking of a fall of 3% in the prices of durable and nondurable goods, and a fall of 6% in the prices of import, into the next index issue. Here once again the author shows an optimistic visual on what’s happening. For sure there will be, and already we can see, a small fall of prices for primary goods, by example in some groceries you can buy three gallons (about 11.36 L.) of milk for five dollars; but I remeber the times in which half a kilogram (about 1 lb.) of beef was only fifty cents. So it’s my humble opinion that one of the things to do, by example, is to decrease the cost of services. And surely is needed a better awareness of the people’ needings, that means less gains for the companies.

Infact in these times of evilness and witchness not casually one of the most rising movement is the socalled ‘No Globals’.

Then the author touches the argument ‘war’ and the related fall of gas’ price. But this is exactly the reason for which Bush has gone in war. From the economic analisys of the past we know that after a war one of the consequnces is a fall of the barrel cost; by example as it happened after the Gulf War in 1991. Don’t let they convince you about hijacking or terrorism: sure - altough this matter smells of fake - that’s a major threat, but remeber that of everything they talk about, they always talk about money. Let me remember you:
"The louder he talked of his honor, the faster we counted our spoons” — Ralph Waldo Emerson. More seriously:
Nothing is easier than the expenditure of public money. It doesn't appear to belong to anyone. The temptation is overwhelming to bestow it on somebody” — Calvin Coolidge.

And talking of war, believe me: the Schengen Agreement by the European States in 1985 was made exactly to protect all the small european currency and the weakness of the economies of their respective states; but to protect them by whom if not by the overwhelming US strong economy? So an open mind can easily explain that the attack to the US is not the terrorism but an attach brought to the US economy and to the dollar through the terrorism . And believe me, I don’t know when but in the future not only it will come out this matter of the economic attack to the US economy but also that this attack has been accurately planned.

As we can see, by example, the US groceries invaded by Italy-Spain-Greece’ food like Barilla or Buitoni or Bertolli or Algida; French beauty products like L’Oreal or Lancome; Germany cars like Mercedes or Bmw, and so on.

Now let’s come back to our essay; going on through the article, we find other comparisons and forecasts. That lead more to optimism. But all the article is pervaded by a spreaded sense of optimism. So it comes spontaneus to ask ourselves who reads this stuff. Surely a shepard of the mountains of Sardinia, or a fisherman of the Ivory Coast whose yearly income, in the best of the cases, is about 250 US$ - doesn’t care much of the BusinessWeek Online; so we can reasonly suppose that the article is strictly tailored for a middle-(or better)-class audience. Then, it must be tranquil. Who has never seen a reporter that investigates deeply the truth? They are so rare. “A good newspaper, I suppose, is a nation talking to itself ” — Arthur Miller.

And does this mean that it isn’t true? Surely not, predictions and forecasts are well done, with solid bases. The matter is what it will happen on a long distance. Are our savings safe enough? I mean for the ones who have savings, of course. It appears yes, at the horizon seems appearing a shining sun. But for the one who has read The Revelations of St. John, and has the Faith, the truth is clear. But this is another matter.

Or we could think of
The government deficit is the difference between the amount of money the government spends and the amount it has the nerve to collect” — Sam Ewing.

So what is happening to the money? And more important where is going the inflation?
There are a lot of things money can't buy -- for example, what it bought last year” — Peter's Almanac.
The way money goes so fast these days, they should paint racing stripes on it” — Mark Russell.
"Money talks. It says: 'Goodbye'" — Unattributed

After all these words, let me leave you with a reflection:
If you want to know what God thinks of money, look at the people He gives it to” — Joe Moore.

However this argument is too serious and includes so several variables to be fully dealed with in this short commentary. So I think to have at least contributed to:
The decline of literature indicates the decline of a nation ” - Johann Wolfgang von Goethe

I tried to do of my best, if I didn't succeed I hope - talking of money - to have gained at least a smile from you.
Take care,
sincerely Yours,

Vincenzo Maggio