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Pluto
Joined: 19 Dec 2006
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 Posted: Thu Apr 10, 2008 11:12 am Post subject: Inflation, food insecurity and world-wide disruptions |
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Anyone read the leader from the Wall Street Journal today. Scary stuff.
  
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Inflation, Spanning Globe,
Is Set to Reach Decade High
By ANDREW BATSON
April 10, 2008; Page A1
Inflation is back.
After several years of relative stability, a wave of rising prices is washing over the world economy.
It comes at a most inconvenient time. The Federal Reserve is sharply cutting U.S interest rates -- the opposite of the usual response to rising inflation -- to prevent the housing bust and credit crisis from causing a deep, prolonged recession. That's making the global response to inflation more complicated.
Consumer prices in the U.S., Europe and other rich countries are projected to rise 2.6% this year, the highest inflation rate since 1995, the International Monetary Fund said Wednesday. In the U.S., consumer prices in February were 4% above year-ago levels. The 15 countries that share the euro currently see inflation of 3.5%, a decade high and well above the European Central Bank's preferred range. Even Japan, long plagued by flat or falling prices, is seeing modest inflation.
[Graphs]
Rising prices for food, energy and other raw materials account for much of the pickup in inflation rates. High food and energy costs hit developing countries -- where consumers spend a larger share of income on those necessities -- particularly hard. In recent weeks, protests over rising costs have shaken countries from Vietnam, where prices are up 19.4% from last year, to Egypt.
On Wednesday, the World Bank estimated global food prices have risen 83% over the past three years, threatening recent strides in poverty reduction. The IMF forecast consumer prices in emerging and developing countries will rise 7.4% this year, the most inflation since 2001 though still well below the double-digit levels of the recent past.
Some of the factors driving inflation vary from country to country: union-negotiated wage hikes in Germany, pork shortages in China, an electricity squeeze in South Africa, pay rises for civil servants in India. |
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This can't bode well for the migrant workers in the Middle East. I remember a lot of them working for peanuts when I was in the ME. The falling dollar has lessened their wages and remittances that they send home. Since many ME currencies are pegged the the USD, it has devalued their wages as well leading to more food insecurity, less remittances for their families and there have been increasing riots in the ME countries. Japan is even expected to see increased inflation, a country where inflation has been almost non-existent the past couple decades. |
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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| Posted: Fri Apr 11, 2008 3:05 am Post subject: |
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Scary indeed.
With all the various crises going on, this is not a good time to have a weakened president. (As if there is a good time.) It's still 10 months before we have a new president. |
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spliff
Joined: 19 Jan 2004
Location: Khon Kaen, Thailand
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| Posted: Fri Apr 11, 2008 3:10 am Post subject: |
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| So how can I cash in on this situation investment wise? |
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mole
Joined: 06 Feb 2003
Location: Act III
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| Posted: Fri Apr 11, 2008 4:15 am Post subject: |
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| Get your hands on some of that monopoly money Chairman Bukkake and the FED keep pumping out or this. |
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Safron
Joined: 05 Feb 2007
Location: portland, or
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| Posted: Fri Apr 11, 2008 4:23 am Post subject: |
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Check out the performance of
MOO
DBA
GLD
All respond to inflation. MOO and DBA are food related ETF's - should do very well in the coming years.
* This information has been obtained from sources believed to be reliable, but no representations are
made as to its accuracy or completeness. Investment information which displays as
N/A is incomplete and will not be included in the Gain/Loss totals. Since the cost
basis on certain securities may have been provided by another source, the cost basis
information on this report may not reflect accurate data or correspond to data on your
trade confirmations. |
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Safron
Joined: 05 Feb 2007
Location: portland, or
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| Posted: Fri Apr 11, 2008 4:23 am Post subject: |
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Check out the performance of
MOO
DBA
GLD
All respond to inflation. MOO and DBA are food related ETF's - should do very well in the coming years.
* This information has been obtained from sources believed to be reliable, but no representations are
made as to its accuracy or completeness. Investment information which displays as
N/A is incomplete and will not be included in the Gain/Loss totals. Since the cost
basis on certain securities may have been provided by another source, the cost basis
information on this report may not reflect accurate data or correspond to data on your
trade confirmations. |
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Safron
Joined: 05 Feb 2007
Location: portland, or
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| Posted: Fri Apr 11, 2008 4:26 am Post subject: |
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Check out the performance of
MOO
DBA
GLD
All respond to inflation. MOO and DBA are food related ETF's - should do very well in the coming years.
* This information has been obtained from sources believed to be reliable, but no representations are
made as to its accuracy or completeness. Investment information which displays as
N/A is incomplete and will not be included in the Gain/Loss totals. Since the cost
basis on certain securities may have been provided by another source, the cost basis
information on this report may not reflect accurate data or correspond to data on your
trade confirmations. |
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| Back to top |
|
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Safron
Joined: 05 Feb 2007
Location: portland, or
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| Posted: Fri Apr 11, 2008 4:26 am Post subject: |
|
|
Check out the performance of
MOO
DBA
GLD
All respond to inflation. MOO and DBA are food related ETF's - should do very well in the coming years.
* This information has been obtained from sources believed to be reliable, but no representations are
made as to its accuracy or completeness. Investment information which displays as
N/A is incomplete and will not be included in the Gain/Loss totals. Since the cost
basis on certain securities may have been provided by another source, the cost basis
information on this report may not reflect accurate data or correspond to data on your
trade confirmations. |
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