Monday, April 12, 2010

Inflation Items: Monday 4/12/10

Brazil’s Real to Rise as Rate Increase Spurs Carry Trade
"Annual inflation has accelerated for four months and has been above the central bank’s target of 4.5 percent in all three months of 2010. Consumer prices rose 5.17 percent in March from the same month a year earlier, the government’s statistics agency said last week. " Bernanke's dollar inflation tide is rising quickly on foreign shores.

BOJ disagreement over loose monetary policy

“there was no solid justification for enhancing easy monetary conditions,” according to the minutes of the March 16-17 meeting published today in Tokyo. ““The market may also increasingly come to consider that the bank would take whatever policy action the market has anticipated.”
Someone should explain to these dissidents that the need for inflation is the justification. Creating inflation is the national policy of most of the developed world now. Keeping the "market" fat and happy is an inviolate rule of this process.

Rate pressure high in India
The Indian economy is booming, as are inflation pressures. More consumers to climb on Ben's cheap money, expensive commodity train.

China coal imports continue to rise.
High growth overwhelms environmental concerns. That will never change.

US Investors flock to Canadian Bonds causing record foreign inflows
"In the year ended Jan. 31, net foreign inflows into Canadian bonds were C$86.3 billion ($85.9 billion), the most for a 12-month period since at least 1988, according to Statistics Canada. Three-quarters of the inflows came from U.S. investors." Ben's effluent is sloshing across the border to the north.

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