A NEW WORLD ARISING
it has been an exciting two weeks for investors. bravo to the central bankers and finance ministers for the hard work and tough decisions taken to calm and stabilize the markets.
however:
1. how are these countries paying for all the financial pledges and guarantees
2. i believe many countries will have to tap into their reserves if they have any, or start printing more money to meet their obligations therefore depreciating their currencies
3. although there will be a slow down in china and india, these two nations with a combine population of 2.5 billion people, are not going to stop growing
4. going forward, commodity prices should hold firm or start trending upwards again from growing demand from china and india
with a combination of abundant liquidity, strong demand in commodities, a huge pool of jobless bankers and a poor global economic outlook, we might be experiencing a new era of slumpflation soon.
2. i believe many countries will have to tap into their reserves if they have any, or start printing more money to meet their obligations therefore depreciating their currencies
3. although there will be a slow down in china and india, these two nations with a combine population of 2.5 billion people, are not going to stop growing
4. going forward, commodity prices should hold firm or start trending upwards again from growing demand from china and india
with a combination of abundant liquidity, strong demand in commodities, a huge pool of jobless bankers and a poor global economic outlook, we might be experiencing a new era of slumpflation soon.
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