All of a sudden alarms are on . Everything seems to point towards spiral inflation .

Even people with faith in gold is selling it because underground potential inflation seems getting ready to erupt with violence and reach levels not seen since the eighties impossible to assume even for gold .
The reason ? Big economies with growing stagflation holding low interest rates and injecting huge amount of liquidity more than three times the neccessary to match the real economic requirements , instead of confronting bubbles resulting from maintining real estate and stock exchange at levels far from market reality .

Watch some big world funds attitude .

Rates could burst around 10 % not so much to capture liquidity but to try to rain in out of control inflation .

Of course economies with a tremendous lasting debt and deficit should find some relief in such a context , but north Europe may not like it so much .

Holders of variable rates mortgages may find themselves in a dramatic situation .


Published in: on mayo 17, 2011 at 5:47 pm  Deja un comentario