Archive for February 29th, 2008

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Friday, February 29th, 2008

Surging Asian inflation could hit Western markets

The upshot of rapidly rising inflation in Asia could not only result in stronger Asian currencies, but also in reduced Asian investment in Western bond markets and, over the longer term, the need for higher real rates in the West with commensurate implications for lower economic activity. Of immediate consequence: be very careful of overvalued US and EMU government bonds.

6 Comments » - Posted in Money, Markets, Investment, Currencies, Bonds by Prieur du Plessis