Inflation could become new No.1 enemy

Natsuko Waki
Reuters
April 29, 2008

LONDON (Reuters) – Inflation threatens to supersede the credit crisis as investors’ biggest enemy later this year as fears of a deep economic downturn recede and commodity prices show no signs of easing.

Growing relief that the global economy has so far escaped the worst case scenario from the eight-month-old credit crisis has stabilised financial markets. World stocks, as measured by MSCI, are hitting three-month highs and pulling the dollar off its March record low .DXY against major peers.

Many central banks, faced with the twin problem of the credit crisis and rising prices, have cut interest rates to ease the flow of credit, leaving inflation issues for tomorrow.

However, the relentless surge in resource prices from oil to rice and the resilience of emerging economies risks are turning inflation into the bigger worry for policymakers and asset markets.

Read entire article

WATCH ALEX JONES’ ENDGAME ONLINE NOW in its entirety. View more High quality trailers at www.endgamethemovie.com

  Print this page.

Comment Rules

Comments are closed.