Emerging markets inflation

Inflation in emerging markets could reach double digits, while economic growth this year will average 6 %, according to  experts. 

Economic growth and rising commodity and food prices are fuelling inflation in emerging economies, but these countries have previously withstood inflation running into the thousands of %, such as in Brazil.

What you have to focus on is (the) real interest rates environment, because if the inflation rate is above what people get in the banks, they will obviously have the tendency to move into equities. 

Experts seems to think  growth in Asia will be a little faster than in other emerging markets. Some analysts say inflows to these fast-growing economies, combined with existing inflationary pressure could lead to asset bubbles, posing what some experts called "monstrous" risks. 

Well we have to look out for that then don't we. Our property boom is certainly something to be a concern for all.

French men’s sperm quality is dwindling.

A study of 26,609 men whose semen samples were tracked over 17 years, published recently in the journal Human Reproduction, found declines in both sperm concentration and in the number of normally formed sperm. Concentration alone dipped by about a third during the study period.  

The study sample is probably one of the largest in the world on the topic and raises concern that modern lifestyles may harm fertility and health, the researchers wrote. Possible causes include environmental factors such as endocrine disruptors -- chemicals found in plastics or food that interfere with the body’s hormones -- or changes in body mass index and levels of stress, they said.  

“These results indicate a severe and generalized decrease in semen quality in France, possibly since the 1970s, which constitutes a serious public health warning,” wrote the authors, led by Joelle Le Moal of the Institute for Public Health Surveillance in Saint Maurice, France. “This issue could be a growing cause of concern for the next generation’s health.”  

The men studied were partners of women who were infertile and sought assisted reproductive procedures. Their sperm concentration fell about 1.9 percent a year, or 32 percent over the 17 years. The percentage of normally formed sperm declined 33 percent in the study period, which ran from 1989 to 2005. The concentration values reached at the end of the study were low enough to affect the time it takes to conceive, according to the authors.  

Le Moal and her colleagues plan to delve back into the data to see whether men born at certain times were more affected than others and whether they can find geographic patterns. They will also be working with data collected after 2005 to see if the decline continued in subsequent year. Beyond the fertility concern, the state of male sperm can be viewed as a gauge of public health, Le Moal said. 

The drop in sperm count coincides with a rise in cancers in France. Is there also a coincidence that France has 20 nuclear power plants spread around the country?

Thailand’s Bonds Fall

Thailand’s government bonds dropped, sending the benchmark three-year yield to a five-week high, on speculation the central bank will refrain from cutting interest rates after exports rebounded last month. The baht was steady.  

Exports, which account for about two-thirds of Southeast Asia’s second-largest economy, climbed 14 percent in October after falling 0.1 percent the previous month, a Nov. 30 central bank report showed. The Bank of Thailand kept borrowing costs unchanged Nov. 28 after an unexpected cut in October, citing strong local demand and an improving global economy. Governor Prasarn Trairatvorakul said a further reduction wasn’t needed.  

“Recent data suggests the global economy as a whole is beginning to bottom out, and the bond yields are rising to reflect less likelihood of further rate cuts,” Tohru Nishihama, an economist at Dai-ichi Life Research Institute Inc. in Tokyo. “Funds are flowing into Asia, especially into bonds, and the recent yield gains reflect a position adjustment rather than a long-term trend.”  

The yield on the 3.125 percent securities due December 2015 rose one basis point, or 0.01 percentage point, to 2.95 percent as of 9:10 a.m. in Bangkok, according to data compiled by Bloomberg. That’s the highest level since Oct. 25.

The central bank kept its benchmark interest rate unchanged at 2.75 percent last week after lowering it by a quarter of a percentage point in October. Consumer prices rose 2.74 percent in November, compared with a 3.32 percent gain the previous month, official data showed yesterday.  

The baht was unchanged from yesterday at 30.65 per dollar, according to data compiled by Bloomberg. One-month implied volatility, a measure of expected moves in exchange rates used to price options, dropped 14 basis points to 3.89 percent.

Everyone is into printing money now???

Printing money is how the govt gets to keep spending !!!!

Counterfeiting is relative, when the govt prints worthless 'money' then that is okay ,but when some mafia families do it that is somehow not good !!!!...lol....


There is no difference every dollar the govt prints that is not exchangeable for gold is just as counterfeit

Eyes on Germany

The U.S. Treasury has issued a damning criticism of Germany's chronic trade surplus in its annual report on worldwide exchange rate abuse, although it stopped short of labeling the country a currency manipulator.

Treasury officials told Congress that internal balances within the eurozone are disrupting the global trade structure, with almost nothing being done by north European states to curb their huge surpluses.
The report said Germany's current account surplus is running at 6.3 % of GDP, and Holland is even worse at 9.5 %. Yet the countries still cleave to fiscal austerity policies that constrict internal demand. ...

The U.S. Treasury said eurozone surplus states have "available room" for fiscal stimulus but refuse to act, despite repeated pledges by EU leaders  that more must be done to foster growth. "They have not yet made any concrete proposals capable of yielding meaningful near-term results." ...

A chart published in the report shows that Germany has overtaken China to become the biggest single
source of global trade imbalance, alone accounting for a large chunk of the U.S. deficit.

The U.S. Treasury's shift in focus away from China-and towards Germany's disguised mercantilism-
reflects mounting irritation in Washington over North Europe's "free-rider" strategy, which relies on exploiting

Europe crisis

There's a lot more available on the web now, about Europe. I'm not deep in it, but it seems their problem is the single currency leaves individual countries without the usual way to take their medicine and get renewed monetary life.

Germany is not willing to suffer along with the country(s) in trouble, and not having monetary sovereignty the troubled country, Greece for example, or Spain, can't devalue (devaluing currency effects foreign exchange, imports & exports, but keeps the relationships within an economy the same, so imported goods cost more but exports compete better) . . so devaluation offers opportunity for a fresh start. but being on the Euro, with currency relationships NOT changeable leaves out that opportunity for correction & a fresh start.

Seems like all those financial monetary geniuses could have seen that coming?

Another key issue I think is that of austerity. Under that prescription, the old (& I hope DYING) paradigm would cut back on domestic spending and raise taxes, so the banks (who are the ones most concerned with foreign exchange rates) wouldn't have to take losses (to me this is feeding the parasite when the host is already dying) --maybe kind of like bloodletting . . . . -at best! A lot of respected economists, including popular ones such as Krugman, are pretty convincing that austerity is EXACTLY the WRONG approach. & they make sense.


People used to say:
1. The money has to come from somewhere, and
2. The money has to be worth something.

I think they got that wrong!!!!

Money has been coming from thin air for a very long time, and has NO actual worth, except the faith of those who need and use it. (& that's how it should be, according to many) If money has that faith, it works. Without that, it doesn't. Being legal tender usually is enough to legitimize and evoke faith, because we really DO need to have money to use (rather than barter, etc.) and all the populace really wants is money that is reliable and not being manipulated to enslave them. Well THERE's the rub, eh?