By Mogambo Guru
Food prices in America soared at their fastest rate since the 1970s last month, a sharp reminder of the pressures facing the majority of consumers in the US.
[[wysiwyg_imageupload:1918:]]By The Mogambo Guru
According to Harper's Index, the "estimated value of Chinese household income that goes unreported is $1.4 trillion."
To put it in perspective, the follow-up item is "Portion of China's GDP this represents: 1/3."
Of course, I don't know what to make of this, economics-wise or any other wise, but merely note with a soft whistle of appreciation that that is a LOT of money unaccounted for, and which does not show up in official statistics, which means that somebody is seriously underestimating something, which means that trouble is usually ahead.
By Gary Tanashian
While NFTRH was highlighting risk leading into the initial phase of inflationary blow-ups - and surely Egypt, Libya and other strained global situations are symptomatic of chronic and disenfranchising inflation - it is important to understand that headline events do not move markets, beyond the very short term. Indeed, I saw enough last week to nudge the very short-term risk profile toward neutral; and in an age of inflation onDemand one should question a net bearish stance more often than not. Inflation ran the 2003-2007 bull market quite well until ultimately, the soufflé pancaked in 2008.
HSBC Senior Economist Karen Ward has warned that the UK may face food price riots as a result of rising costs, according to Sky News.
By Steve Saville
Don't fight the Fed?
"Don't fight the Fed" is an adage that's always worth remembering; however, this adage shouldn't be applied to all of the Fed's endeavours because the Fed is powerful in some areas and impotent in others. For example, the Fed can ALWAYS depreciate the US dollar -- that is, it can always cause dollar-denominated prices to rise -- if it chooses to do so, but it can't create real economic growth or sustainable employment (despite the fact that achieving "full employment" is part of the Fed's official mandate). Furthermore, although the Fed can always bring about a rise in prices by inflating the currency supply, it can't control which prices rise the most in response to its monetary inflation. In fact, the price-related effects of the Fed's inflation will often be the opposite of what the Fed intends.
[[wysiwyg_imageupload:1888:]]By Peter Schiff
As the world confronts one of the most critical periods of economic upheaval that it has ever seen, it is clear that our most influential economic stewards have absolutely no idea what they are doing. But, like kids with a new chemistry set, they are nevertheless unwilling to let that stand in the way of their experimental fun. As they pour an ever-growing number of volatile ingredients into their test tubes, we can either hope that they magically stumble on the secret formula to cure the world's ills, or more pragmatically, we can try to prepare for the explosion that is likely to result.
Food price inflation is wreaking havoc across the world, and it's getting worse. The UN just reported prices rose to an all time high in February and look likely to head higher still because of rising energy costs.
[[wysiwyg_imageupload:1881:]]By Sy Harding
When it comes to the growing global worries about inflation, it looks like it will be ‘As goes China so goes the world’.
China is the 2nd largest economy in the world, and rapidly gaining on the U.S. Among other statistics, it’s the world’s largest importer of copper, steel, cotton, and soybeans, and the world’s largest exporter of goods - to say nothing of being the world’s largest owner of U.S. debt.