From the category archives:
Central bankers all across Asia are raising interest rates, including the Reserve Bank of India increased its
key rate to 8.5% last week.
The reason is simple — inflation is taking off. The most recent inflation numbers showed inflation rising at the fastest pace in 13 years to 11.4% in India.
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Inflation isn’t just a U.S. problem.
Inflation (especially for food) is also a problem in China. Consider this: McDonalds just raised prices on most of its
menu items yesterday.
It is also the second time this year that it has raised prices.
McDonalds isn’t the only company raising prices in China. KFC and Pizza Hut increased menu prices earlier [...]
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At least one country is serious about fighting inflation.
The Indian Central Bank raised
interest rates for the second time in two weeks. The Reserve Bank of India lifted the repurchase rate by 0.5 percentage
point to 8.5%, the biggest move since 2000, and adjusted the cash-reserve ratio by a similar margin to 8.75%
Why is our Fed being [...]
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Vietnam isn’t the only country with an inflation problem.
The Russian Federal State Statistics Service, Russian reported that producer prices jumped by 3.5% in May. That’s for
just one month!
On a year-over-year basis, wholesale inflation increased by 25.1%.
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It isn’t as bad as Vietnam or Russia, but inflation
in India is running at more than an 11% annualized rate.
Inflation is a truly a global problem.
Is your portfolio prepared for it?
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Vietnam is suffering from a 25%-plus inflation rates and in an effort to save its
plunging currency, suspended the
importation of gold.
Vietnam investors are so intensely buying gold as a
hedge against inflation that gold importation has become one of the largest trade deficit contributors.
The government can try to stop investors from buying gold, but it won’t work. [...]
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It is impossible to ignore China, but it isn’t the only
Asian country brimming with opportunity.
The Vietnamese economy grew by 8.5% in 2007. That’s not quite the double-digit rate of China, but it is darn impressive.
Here is the best news: The Ho Chi Minh
Stock Index has dropped by 60% and is now at a 27 month [...]
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The Chinese Central Bank raised the reserve requirement for
Chinese banks for the fifth time this year in an effort to cool inflation.
The reserve requirement is now 17.5%.
You know what really gets me? The fact that a bunch of socialist bureaucrats are doing a better job of monetary policy
than the idiots running our Federal Reserve Bank.
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Here is a rare piece of dis-inflationary commodity news.
China Aluminum Corporation (also known as Chalco)
cuts its wholesale spot price of aluminum by 16.7%.
I don’t own Chalco and I sold my energy stocks 2 weeks ago and this is another piece of confirmation that tells me
commodity prices are overdue for a pullback.
Temporary…but a pullback nonetheless.
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The Chinese central bank ordered
banks to increased their reserve for the fourth time this year, increasing the reserve ratio from 16% to 16.5%.
The increase will remove around $30 billion from the Chinese banking system.
The reserve ratio has been raised a 7.5% since the start of 2007.
Funny, the communist central bankers seem to know more about [...]
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