The US Fed trying to Stem a Flood of Barings and BCCI deals

The G8 Summit in Japan was more focused on worldwide inflation and the riots insuing then any talk of the dollar. World Leaders everywhere are starting to feel the wrath of the populace who is falling further behind economically.

The Fed stance is now to combat inflation. If they dont move rates up soon, the market is going to crush the dollar further, so the US has once again managed to put itself in an interesting position. However i think that the Cheap dollar is a policy, in order to "recalibrate external debt" and cheapen the cost of servicing existing debt.

If the world does not quelch the inflation issue (and stop lying about inflation figures) soon, and i mean within another 4 months.. inflation is going to become imbedded in the economy. This is not going to be good and will take us to the next level down and my 2010 doomsday scenario.

Long Term, still bullish on Oil!

Type rest of the post here

Posted by OscarNOW on 2:25 AM. Filed under central banking, inflation . You can follow any responses to this entry through the RSS 2.0