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Can Asian Money contribute to inflation, world food & petrol prices?

Discussion in 'The Economy' started by Billv, 24th May, 2008.

  1. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
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    Location:
    Sydney, NSW
    During the sub-prime crisis, Spengler, a writer in Asia Times
    wrote this:

    Asia Times Online :: Asian news and current affairs - Western grasshoppers and Chinese ants

    Well...it now seems like some Asian money is indirectly flowing into quality stocks but this is not enough.
    As the US chose to devalue it's currency to get out of their financial crisis now China has trillions of worthless US$.
    They can't exchange it and they can't get much interest for it, so it seems that they are now spending it stocking up on raw materials, food and petrol.
    This will increase world inflation, will cripple some economies and will bring misery and hunger to many people around the world.

    The following article explains
    Here is the link to the whole article
    Asia Times Online :: Asian news and current affairs
     
    Last edited by a moderator: 24th May, 2008