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NEW YORK ( TheStreet) -- "You can be spooked by inflation, or you can make money off of it," Jim Cramer told the viewers of his "Mad Money"TV show Tuesday.

He said that the sky is not falling because of rising commodity prices, and smart investors can profit from them.

Cramer said the moves in commodities are of self-correcting and not signs of rampant inflation. He said when grain prices soar due to weather and drought, the following year farmers buy more equipment, plant more crops and produce as much as they can to take advantage of higher prices. When oil prices are high, oil companies explore more, drill more and build more infrastructure to do the same.

Even in the supermarket, Cramer said consumers will trade down to private-label brands when prices get too high.

In fact, Cramer said rising commodity costs are what investors should be hoping for, as they signal a strong and growing economy. Only wage inflation and housing inflation is really bad, he said, and fortunately we have neither.

That means that now is the time to buy those who benefit from high commodity prices, companies like Nucor ( NUE), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, along with Union Pacific ( UNP), Freeport-McMoRan ( FCX) or Vale ( VALE).

Cramer also recommended companies that have been cutting costs, like Stanley Black & Decker ( SWK), and those expanding internationally, like Eaton ( ETN).

Cramer also likes companies that can pass high costs to consumers, such as Polo-Ralph Lauren ( RL) or those like Chipotle Mexican Grill ( CMG) and Apple ( AAPL), another Action Alerts PLUS name, which don't seem to be affected by commodities at all.

Good to Be the Landlord

In the "Executive Decision" segment, Cramer sat down with Don Wood, CEO of Federal Realty Investment Trust ( FRT), a stock that's up nearly 52% since Cramer first got behind the company in May 2009. Federal Realty just delivered a two- cent-share earnings beat.

Wood explained that while retailers come and go, it's always good to be the landlord. He said that Federal Realty doesn't focus on the monthly gyrations of retailers, and instead focuses on the longer term, and the longer term is solid. Wood said that Federal Realty will never be at 100% occupancy at its shopping centers, but as it eclipses 93% occupancy, it's getting pretty close to full capacity.

When asked about the pending bankruptcy of retailers like Borders Group ( BGP), Wood said that there will always be sectors in decline, and Borders hasn't been a big draw for Federal's shopper centers for years. But he said they will welcome the opportunity to place up and coming tenants in those locations.

Turning to ecommerce, Wood said that he doesn't consider online retailers like ( AMZN) the enemy. He said brick-and-mortar retailers will always be an important part of life, especially if you have the right locations.

Finally, when asked about Federal Realty's 3.3% dividend yield and its 43- year track record of raising that dividend, Wood said its record is like gold at the company and it works hard to ensure it's always growing.

Cramer continued his support for Federal Realty.

Transportation Rally

Cramer went head to head with colleague Dan Fitzpatrick over the charts of the transportation stocks, a group that's been lagging the broader markets.

According to Fitzpatrick, while the overall S&P 500 average has been showing a solid bull pattern, the transports fell 4.3% in January as the unrest in Egypt reached its peak. After finding support at its 50-day moving average, the group then rallied back, making a new high today.

Fitzpatrick noted that the next few days will be critical for the transports. If the rally holds, it will confirm the uptrend in the entire S&P 500, but if the group pulls back, making a double top pattern, then it could spell trouble. Fitz is betting on the former, saying the rally will likely continue.

Turning to the fundamentals, Cramer said he agrees with Fitzpatrick, and feels the charts of the S&P 500 will lead the transports instead of follow them. He said the economy is strengthening and the railroads have been rallying.

Even FedEx ( FDX - Get Report), which disappointed Wall Street and lowered guidance, said business was strong and shortfalls were only due to rising fuel costs.

Juicy Dividend

In a second "Executive Decision" segment, Cramer spoke with Glen Post, president and CEO of CenturyTel ( CTL), a rural telco provider with a juicy 6.6% yield. Shares of CenturyTel are up 13% since Cramer last recommended in on Oct. 19.

Post said that while Wall Street was disappointed with its results, earnings were in fact at the top end of the company's guidance with strong cash flow. Post also said that CenturyTel's dividend is solid and he feels good about the upcoming year.

When pressed further, Post noted that earnings guidance for 2011 does not fully include the company's acquisition of Qwest Communications ( Q) or other investments the company is making.

Post said he's confident that the $1 billion investment into CenturyTel's network this year will be enough to keep the company current on new technology. He said that amount is far more than the $860 million the company spent just last year on its network.

Post also noted the company recent partnership with Verizon's ( VZ) Wireless division, which allows the company to offer all of Verizon's services to CenturyTel customers.

Cramer said investors need to own this stock for its dividend and cash flow and shouldn't be discouraged by a few negative analysts on Wall Street.

Lightning Round

Cramer was bullish on Potash ( POT), Buckeye Partners ( BPL), Cripps Networks Interactive ( SNI), Walt Disney ( DIS - Get Report), Las Vegas Sands ( LVS - Get Report)and Wynn Resorts ( WYNN - Get Report).

Cramer was bearish on Cisco Systems ( CSCO - Get Report)and Melco PBL Entertainment ( MPEL).

Closing Comments

In his "No Huddle Offense" segment, Cramer went on the offensive against the bears who have been keeping retail investors out of great stocks.

"Where is the commercial real estate crash?" he asked. What happened to the collapse of the real estate investment trusts? Why haven't the hotels all gone bankrupt? These are just a few of the questions Cramer had for the bears and naysayers that were predicting this doom and gloom for much of the recession.

Cramer said that no one is holding these bears accountable for their actions, and the lack of accountability is sickening. "There was no crisis," he said, "only opportunities for companies to cut costs and grow." Unfortunately, most of that growth was not see by investors who were scared out of these stocks, he said.

--Written by Scott Rutt in Washington, D.C.

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At the time of publication, Cramer was long Apple, Nucor.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

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