Wednesday, December 12, 2007

Inflation hawk does it again!

Yes. The "inflation hawk" does it again. Rates have been cut to 4.25%. Discount rates cut to 4.75%. Cutting the benchmark rates would have absolutely no effect because the problem now is investors are not willing to lend the money due to high risks! You drive down the rates, but investors are not willing to lend out due to the high risks. What's the use?? This like giving panadol to someone having a stomach ache.

With this kind of "inflation hawk", I think we're in for a lot of trouble with regards to inflation. I'm still of view that the US now is thinking that if China/Japan does not appreciate their currencies, then they will depreciate theirs. I see the signs there since US started actively pushing China to appreciate their currency.

Now is no more the age of traditional warfare. Wars are now fight economically. In fact, I think I'm seeing an "economic world war" right now. However, I rather an economic world war than a real war.

No comments:

Visit Rhinestic's Knick Knacks @ Etsy for handmade goods and supplies!

Related Posts Plugin for WordPress, Blogger...