Tuesday, July 08, 2008

Emerging markets inflation could break the current system

... says Nouriel Roubini, and there's already a fund to speculate on consequential revaluation of developing world currencies, according to this.

2 comments:

Anonymous said...

The rampant inflation in the the Far Eastern economies is the reason why I think the current oil price rise is an unsustainable bubble. China, India, Russia and a host of others all have large & growing inflation figures. It would be very unusual for such conditions not to lead to a reduction in economic activity. When this becomes apparent the commodity price boom will turn to bust in a flash. I predict oil well below $100/barrel and similar reductions in other commodities (including sadly (for me) agricultural prices)

Sackerson said...

Interesting, Sobers, I shall look out for this pattern.