global inflation, page-10

Pakistan is interesting. Last month their CB put rates up to 15%. That indicates a nominal lending rate of +20% and a real inflation rate of perhaps over 20%.

That being the case we could be looking at the first real hyperinflation breakout in recent times.

That country is on a knife edge socially aggravated by 20 million people made destitute by floods last year.

There's every chance that we'll see Pakistan self destruct and as a nuclear power the security issues are enormous.

Now this is what cheap money flooding into developing countries means. The start of double digit inflation in countries with fragile economies is beginning now.

The currency wars have yet to intensify as governments desperately try to keep the lid on unemployment. And if Donald Trump becomes US president next year the US will in all probability tax Chinese imports.

We can only hope our near neighbours can control their destinies.

Everything seems to be sliding into a predictable dangerous olio