Global Inflation Cometh

Global inflation is coming, in fact, signs everywhere indicate inflation has already arrived.


Brazil’s Tombini to get tough on inflation

In 2010, Brazil posted its highest inflation rates in six years, 5.91 percent by December, according to one index. On Monday, another index found the rate of the price increases has accelerated in the first week of this year.


China will unveil food price controls and crack down on speculation in agricultural commodities to contain inflationary pressure that its central bank governor highlighted as a risk on Tuesday.

China will fight to control inflation


India is currently battling soaring price rises, causing a major headache for the ruling government, but policymakers have cautioned against panic reaction.

India has responded to persistently high inflation and an economy exceeding its growth forecasts by continuing its aggressive campaign of raising interest rates.

NEW DELHI January 27, 2011 (Reuters): India's food price index rose 15.57 percent and the fuel price index climbed 10.87 percent in the year to Jan. 15, government data on Thursday showed.

South Korea:

South Korean inflation accelerated more than forecast in January, breaching the central bank’s 4 percent ceiling and adding to the case for another increase in borrowing costs as early as next week.

President Lee Myung Bak last month declared “war” on inflation
, saying it must be contained at 3 percent to protect people on low incomes. Today’s inflation data may prompt the Bank of Korea to raise interest rates next week when it reviews policy, according to Royal Bank of Canada.

What does one do to preserve one's wealth?

Gold (and silver) have for thousands of years been the only money.

Nothing hedges against the destructive nature of monetary inflation like gold (and silver).


February 2 2011 (Financial Times) — China’s gold imports are estimated to have more than doubled from a year ago in the run-up to Chinese new year, putting the country on track to overtake India as the world’s largest consumer of the precious metal.

… Precious metals traders in London and Hong Kong said on Wednesday they were stunned by the strength of Chinese buying in the past month. “The demand is unbelievable. The size of the orders is enormous,” said one senior banker, who estimated that China had imported about 200 tonnes in three months.


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