However, I noticed Japan is catching up quickly. China can still learn more.
Fed probably want to hit the asset market(equity/commodities) for the time being so that it can stop raising rate. Money supply, on the other hand, has kept rising.
Fed must have noticed that market is basically saying housing market is going to impode. Given their research about housing/equity market impact on consuming spending(4x), I would not be surprised they come to rescue.
I believe are still early in this massive inflation/stagflation cycle, may be the largest and the last we will see in our life time.
There are a lot of guesses/rumors about how Mr. Paulson would play a role in the markets. General view is we will see more intervention in the markets.
All positions should be kept short term.
