Inflation Worries Spread

The front page of the Wall Street Journal had the title of this post as the top headline.

So yes, we have been watching for goofiness to happen due to all the printed-paper-money floating around. But the article points out some other prophetic points as well...mainly famine and food shortages which make prices rise.

Few emerging-market countries have a firm grip on the inflation problem. Just last week, John Lipsky, the International Monetary Fund's No. 2, said many emerging economies are running out of excess capacity "and yet most of them still have in place the expansionary…monetary and budgetary policies." The cure is clear, he said. "Everybody is going to need to tighten monetary policy, reduce budgetary stimulus and continue with the process of structural reforms."

Inflation fears intensified Tuesday after the U.N. Food and Agriculture Organization said drought in the five Chinese provinces that account for two-thirds of China's wheat production is endangering this year's crop. U.S. wheat futures surged Tuesday to a fresh 30-month high on fears of further strains on global supplies. The current wheat contract rose 1.8% to $8.7425 a bushel in Chicago, up 81.3% from a year ago.

See this here; http://online.wsj.com/article/SB10001424052748704364004576131670845358208.html

Did you catch that quote, "everybody needs to tighten monetary policy,"? I guess he must be talking about everybody else because our Federal Reserve just keeps rolling out the fake money and flooding the globe with paper.

No wonder much of the financial world is upset with the U.S.