My comment: This is just a start. It is variable, up and down, within next months. Variable until some central banks fears high price inflation rate and start to raise interest rates again. Probably it will not happen before early 2010 as they are pushing recovery yet.
Then central banks will start to raise rates. But price inflation will raise higher and higher disegarding what central banks do. Because the problem is not interest rates, the problem is excess of liquidity around the world, too much US dollars. Once price inflation raises while interest rates peak authorities will have two options. Either to create a second recession (as Dr. Roubini predicts) cutting oil production and cutting US dollars (repurchase by the Fed) simultaneously as they did in July 2008, Or -second option- to accept hyperinflation at late 2010 or early 2011. I think that this time authorities will choose the second option as price inflation does not harm politically so much as unemployment, bankruptcies, etc. do. This second wave starts to raise in the horizon, we better pay attention to it. Peace and best wishes. Xi Producer Prices in U.S. Rise 1.7% as Gasoline Surges http://www.bloomberg.com/apps/news?pid=20601087&sid=aKyoMRxD01C4 --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
