Wednesday, June 11, 2008

Inflation On cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Brain

There is a ton of news today about inflation. Consider cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 following:

From cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 WSJ:

Inflation worries are heating up around cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 world and jolting financial markets in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 process.

On Tuesday, China's stock market was cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 latest to feel cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 blow, with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 benchmark Shanghai Composite Index tumbling by 7.7%, to its lowest close this year. The drop came after cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 government announced steps to remove cash from cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 financial system in an attempt to tamp down inflation.

.....Also Tuesday, officials in Vietnam effectively devalued cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir currency in a step aimed at easing market pressures related to soaring inflation rates. (See related article.)

And in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 U.S., investors sold off U.S. Treasury securities, one day after Federal Reserve Chairman Ben Bernanke warned that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 run-up in oil prices is adding to upside risks for inflation. The price of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 two year Treasury note, most sensitive to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Fed's moves, has fallen sharply (and its yield has risen) as investors grow convinced that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 central bank may have to raise rates this autumn to contain inflation. On Tuesday, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 two-year note's yield was 2.9%, up from 2.4% on Friday, marking a major jump in that rate.

Meanwhile, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Bank of Canada surprised markets Tuesday by holding off on an expected interest-rate cut; cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 central bank said cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 risk of inflation, driven by high energy prices, had grown too great to allow for furcá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r rate cuts. The European Central Bank is also considering interest rate increases to fend off inflation.


From Bloomberg:

European Central Bank board member Juergen Stark damped speculation of a series of interest-rate increases, saying policy makers have signaled only that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y may raise borrowing costs in July.

``The markets have understood cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Governing Council's signal,'' Stark, 60, said in an interview in Chatham, Massachusetts, late yesterday. ``However, we are not talking about a series of rate increases.''

ECB President Jean-Claude Trichet said last week cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 bank may raise its benchmark rate by a quarter-point to 4.25 percent in July to curb inflation, which is running at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 fastest pace in 16 years. Investors responded by increasing bets on higher borrowing costs. They expect cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ECB to lift cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 key rate twice this year, taking it to 4.5 percent, according to Eonia forward contracts.

.....

Oil prices above $130 a barrel and rising food prices pushed inflation in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 15-nation euro region to 3.6 percent in May, well above cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ECB's 2 percent limit. Central banks around cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 world are changing rate policy in response to surging inflation.

Global Policy Shift

Vietnam, Brazil, Chile, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Philippines and Indonesia all lifted borrowing costs this month. The Bank of Canada yesterday unexpectedly kept its benchmark rate unchanged after four straight reductions. U.S. Federal Reserve Chairman Ben S. Bernanke has also signaled cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Fed is done cutting rates, saying this week he'll ``strongly resist'' any surge in inflation expectations.


Tie this information to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 CRB chart below, especially cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 following points.

1.) The weekly chart is still in a major rally.

2.) The daily chart is still bullishly aligned

3.) The P&F chart shows a series of multiple new highs.

These developments explain cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 following statement from Bernanke's most recent speech:

Inflation has remained high, largely reflecting sharp increases in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 prices of globally traded commodities. Thus far, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 pass-through of high raw materials costs to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 prices of most ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r products and to domestic labor costs has been limited, in part because of softening domestic demand. However, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 continuation of this pattern is not guaranteed and future developments in this regard will bear close attention. Moreover, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 latest round of increases in energy prices has added to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 upside risks to inflation and inflation expectations. The Federal Open Market Committee will strongly resist an erosion of longer-term inflation expectations, as an unanchoring of those expectations would be destabilizing for growth as well as for inflation.


NY Fed President Geithner echoed Bernanke's sentiment:

Geithner also said containing global inflation risks will probably require tighter monetary policy. The Fed has cut U.S. interest rates sharply to 2 percent since September, though markets expect it to raise cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365m later this year.


And Treasury Secretary Paulson has supposed dollar intervention which is a de facto way to cure inflation caused by cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 dropping dollar:

U.S. Treasury Secretary Henry Paulson on Tuesday said he stood by comments made a day earlier in which he said he would never rule out currency intervention as a potential policy tool.

"I'll let my comments stand," Paulson said in an interview with Bloomberg Television. "I never like to say never, but my focus is on long-term fundamentals."


Now -- US officials have talked a good game for awhile, but haven't done anything. Let's see if cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y are will to act.