India had tried to control inflation with rate hikebut in flation keep creeping up it is the classic of food inflation..?

Hi everyone.

Happy New years

The Chinese raise increase to curb Food inflation, the india have try to control inflation for the past year 2010with rate hike but it seem the inflation cannot be stop and keep charging higher due to commodity supply deficit.. so by raising more rate I think it will do little to stop inflation but will slow down economy.

The raising of agriculture price is also a good things it is like a good way to distribute wealth to farmer which I have see alot of farmer is now getting wealthier which will one way another ... but any too much is not good to little is not good but we will have to leave with high commodities price until the new supply is established.

There is some circulation that the Japaneses debt is getting out of hand and country debt rating is getting cut but it is still class as "rumour" but if there is smoke the fire will follow. With the saving rate decline, this is something to watch out for.. while the rescuer might be the Fed. Cause i think the US need an alliance in asia to contain China influence.

Clearly the china is finding new alliance in the West especially the Europe and central Asia and Africa, like helping funding euro debt backing Spain debt and EURO, this is a strategic political move which will bear fruit once the Europe crisis stabilized in 2012. ( for now the "investor" will focus on the Euro crisis which is relative small when compare with US and Japanese Debt ... so something to look out for.

Australia Flood.

It seem like the the flood in commodities gaint in Austrialia will bring a huge impact to commodities and the situation will get worse before getting better . Like flooding the mine ... it will take month before this mine will be operatable ..

And what will push the oil price up is the the coal, both indonesia and australia is major coal producer..so the bullish in energy is just adding up more chip in this sector.. with the cool weather continue, the natural gas and distaille gasoline will be quicken draw down especially in china.

Soft commodities will too as you guy already know, raising interest rate will not stop any inflation ... this is a classic inflation where demand outpact supply... and not about liquidity.

So long everyone, this should be publish since last week but i was on holiday again..

So cheer everyone..

Please input more comment so I respond more ..

China tightening, but the Chinese still need to grow at least 7-9%? so the china bull still on

Hi everyone ,

Hope everyone is well and good health. Just lose some passion is write the blog . But I am back so let go into my thought about things happen around the world.

First I like to spam the inflationary fed keep devalue the dollar purchase power which create a feeling for the world that we are earn more but actual we can buy lesser thing. From the 60 minute show when ben told the show what is in his mind, i start to pile into long in all position stock soft commodity and precious metal and oil.

China is gearing up to fight inflation but will they be able to do that, it is will quit difficult to fight inflation at the same maintaining growth at 8-9%. What china facing is food inflation due to extreme weather happening world and causes supply problem worldwide. We have both the india and china growth at fast rate which mean more middle class is entering the economy... this new working class and middle class will demand better food more meat and good fruit better quality meal better cloth buy more car (by the way with cheap compact car hit the market this will a bullish to oil too) ... With the food constrain with the supply while demand is increase greatly ....

The China is tightening poicy to control but this is not about liquid control , it is about limited supply. People agreedyness will keep push the price to new high.


I bet the commoditity will on the up trend, until new unitl supply is establish.

Oil: bullish possible target US$95.00 - US$ 100 (accumulate at any price US$83.00 - US$89)
GOLD and silver: VERY BULLISH (uptrend with no target insight)
Stock: mild bullish
Soft commodities: VERY BULLISH ( 3- 6 month)
Dollar : BEARISH
Bond: long term bearish

I will add more item in my comment