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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (8108)	6/2/2008 12:30:14 PM
From: dybdahl	Respond to of 71462

I tried to look at the price levels in Kyiv in Ukraine. Many of the prices there don't seem to make sense, because food, which can be locally produced in Ukraine (like fruit), is more expensive than in countries, that doesn't produce the food, and has higher wage levels. Other prices seem to have risen, measured in dollars, but not in Euros. I guess the weak dollar explains that. Gasoline has risen a lot - but gasoline doesn't explain Ukraine's inflation. I think the explanation is very simple: The local production is not able to satisfy demand, so they need to import, which is expensive. However, when local production gets ramped up, I cannot believe anything else than that prices will drop to at least the levels of those countries that are not able to produce these kinds of food. I could imagine that similar mechanisms can explain some of the inflation in other east European countries, maybe also other countries. In that case, some of it is temporary.