I was going to write a long piece on this - but a short one will do for the time being.....
Anyone else noticing inflation starting to rear its ugly head (not so much in AUS although this is happening)... more importantly in China!!
The worlds largest exporter of deflation is now heading towards an inflationary crisis.... bank deposits there earn about 3-4% (govt regulated), so in real terms you are losing purchasing power rapidly.... this seems to be the reason for continued rampant stock market and real estate speculation going on in China (SSE300 up 30% since govt tried to make it tank due to overvaluation)....
Locally there seems to be a lot of anecdotal evidence that rents, food + energy are rising well above CPI targets....
and the US fed is about to cut rates!
The central banks must be literally crapping their pants - after years of talking tough and the work that was achieved over the 70's and 80's from 15%+ rates - it looks like they will collectively blow it in a few years of credit expansion