Interesting to follow the increasing inflation that is now rampant in Asia and the Central Asian region plus South America.
Emerging economies, awash with foreign inflows of money, are now on the verge of confronting this problem externally.
Confronting each other with currency wars and trade barriers.
Massive speculation in Bangladesh is becoming unstuck and Indonesia is under immerse pressure and the Indian stock market , like many others is heading south.
Vietnam, riddled with endemic inflation, has a huge banking problem hidden out of sight. We know that a State enterprise in trouble is a direct government problem. It can't be shifted with guarantees or bond purchases.
As the US quantitative easing no 2 starts, money will flow through US markets and into speculative foreign markets. Nowhere is safe. Soon things will get ugly as civil unrest becomes perhaps something else.
And is Australia immune from all of this....?
In my experience bad news can come in many forms over a short period. Then later we look back and say 'we should have seen it coming'.
