GLG News Analyses of the following article:

The Return of Inflation?

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Published at: www.washingtonpost.com

Sam TimpanoPresidentSam Timpano & Associates

The real danger is more than inflation.

June 26, 2008

A wise friend once told me that a cobra is not a danger in and of itself. It is only a danger if one is not aware of it's presence and if, upon becoming aware of it's presence one takes a wrong action and is bitten by the cobra. So it is with inflation. It is not so much that it is here, it is reaching awareness of it's presence and taking the correct actions to deal with it properly.

Milton Freidman said, "Too Much Money chasing too Few Goods"

June 25, 2008

Analysis by: GLG Expert Contributor

Although we have yet to experience the wage-price spiral that precipitated the extreme inflationary period of the 60’s and 70’s we are encountering the rising price in raw materials. Oil was $25 a barrel, corn $2.30 a bushel and copper $.70 per pound in 2002, yet $140 per barrel, $7 a bushel and $3.80 per pound respectfully are today’s highs. In the meantime, the price of manufactured imports (a powerful anti-inflationary force) is being driven higher by a weaker dollar and higher transportation costs. As cited in the source article; in the past year, prices for imported consumer goods (excluding autos) are up 3.6 percent.