The financial markets are again focusing on an increased inflation concern after The Bank of England officials announced that they are uncomfortable with the current level of inflation, and that Germany and China both reported higher inflationary pressure than expected. Clearly inflation is not a surprise as food and energy prices have been rising for months.
The fact that central banks are addressing the issue implies that global interest rates will likely be rising which will choke off growth. Every country cannot export and grow their way out of financial crisis at the same time, and we are fast approaching the point where we will have few buyers.
Regards – Keith Springer
Tune in to Smart Money with Keith Springer