7/2 - "U.S. Federal Reserve Chairman Ben S. Bernanke ignored the warnings of most economists last week, and kept the benchmark Federal Funds rate at 2%, far below the actual rate of inflation.
As a result of this non-move, investors can probably look forward to having the global commodities boom continue for at least a while longer."
"The reason for this intense advance in commodity prices is that the Fed and its European counterpart have been pumping money into their respective economies to prevent the collapse of several major banks...In the key emerging markets, the money supply has been rising even faster - 19% in China over the past year, and 21% in India. Not surprisingly, those countries’ inflation rates are taking off, with India into double digits and China quickly getting there."
"...even if the (U.S.) inflation rate is truly only 4%, the Fed’s monetar...
$92.85 (07/02/08)
