About Inflation
It seems that "inflation" is becoming a buzzword again after Friday's CPI number. Whether we are going to have a true inflation or just a bubble in the bond market remains to be seen. In either case, the markets probably will have a big swing.
I still think the key is the currencies.
barchart.com
barchart.com
If the funds are panic, the first thing they will do is to pullback their money from overseas. This time it will be Europe. Then the Euro will be trashed, like what happened last time in Asia. It only takes Mr. Soros one sell order to do that. The million dollar question is whether he has the guts to do it this time, since Euro has such short trading history. If the Euro goes down, it will push dollar higher, which in turn to make the prices of commodities higher to other countries, and hence reduce the fear of even higher inflation.
The bad news is that we lost Rubin, instead gained Summers. He might be a boy-genius, but, a sell-order from Soros may make him a middle-age idiot. If we have a bad Summer this year, his name implies we have more to come. :-)
I don't know how much Rubin worth. If J. J. Cramer of TheStreet.com is worth $200 mln, Rubin should be worth the US GDP. Since he is not, Mr. Cramer is probably worth 200, in Yuan. (1 USD=8 Yuan) |
