Grab Some Cover from More Incoming BRICs
Posted by Larry Doyle on June 17, 2009 6:02 PM |
While all eyes domestically are seemingly focused on the financial regulatory reforms coming out of Washington, news of much greater long term impact is hitting us half a world away.
Take cover!! Shots from one BRIC nation after the other are coursing across our landscape. Don’t think for a second that Washington does not feel this heat. The mere fact that the media largely dismisses these stories is not surprising. In fact, the media’s approach of generally overlooking these developments is remarkably consistent.
Be careful . . . and let’s review the following:
1. Bloomberg reports: Russia, China to Promote Ruble, Yuan Use in Trade
2. The Washington Post writes: Beijing Orders ‘Buy China’ for Stimulus Projects
3. Yahoo News offers: China Sells U.S. Bonds to ‘Show Concern’
4. Breitbart provides: Time for ‘New World Order’: Brazilian President
There is little doubt that stories of this magnitude and measure were released in a very coordinated fashion. Recall that the BRIC (Brazil, Russia, India, China) Summit in Yekaterinburg just finished.
By the way, how do you think the U.S. dollar did today?
The Wall Street Journal highlights: Euro, Yen Make Gains Against Dollar
Breitbart adds: Dollar Drops on Reserve Currency Doubts
If our dollar were to continue declining in value, that is the precursor to inflation. For those who maintain that our economy is too weak with too much slack to spark inflation . . . welcome to stagflation. Who has thoughts about that?
InvestmentNews reports: Roubini Warns of Stagflation
In connecting these dots, I look at this onslaught of activity and coordinated news releases and think, “just because you’re paranoid, does not mean they’re not out to get you!”
This entry was posted on Wednesday, June 17th, 2009 at 6:02 PM and is filed under BRIC, General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.