TOO FEW COUNTRIES ARE FIGHTING INFLATION, AND THOSE THAT ARE, ARE DOING TOO LITTLE TOO LATE.
Government action has been too little too late. Current account surplus countries are creating inflation with their currency sterilization, and current account deficit countries are creating inflation with their banking system bail out.
As we have said over and over for years, there will be no big interest rate rises in the U.S. Anyone who thinks so will be disappointed that inflation will be tolerated, because the Federal Reserve has no other choice. Do they want to put the banking system down for the count? No! Their job is to help it. They will help it by keeping interest rates too low and this will cause inflation to be too high. Inflation is too high already and the bailout is just getting started for the world banking system. It will continue for a long time...and the effects are inflationary.
Action by current account surplus countries is too little too late.
The U.S. dollar is headed lower due to triple deficits, low interest rates, rising inflation and a general flight from the dollar by account surplus countries reducing their huge dollar reserves and/or relaxing their currencies' peg to the dollar.
INFLATION IS HERE AND HAS GRIPPED NATIONAL AND INTERNATIONAL PSYCHOLOGY.
Within a few years the prices of many commodities will rise much higher.
IF YOU NEED PROOF LOOK AT THE PRICE CHARTS OF GOLD, COAL, OIL, FERTILIZERS, CORN, SOYBEANS, SUGAR, AND WHEAT.