All Things Reconsidered in the Inflation Debate | Tactical Allocation Channel etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.
Global Reflation Fears: Does India Need To Worry?
Feb 26 2021, 7:28 AM
February 25 2021, 7:54 AM
February 26 2021, 7:28 AM
With governments and central banks continuing to add stimulus to support their respective economies, global markets have started to price in reflation. Commodity prices are rising and so are bond yields, on fears that inflation could make a stronger-than-anticipated comeback.Does India have cause to worry amid these rising global commodity prices? Yes and no, said economists pointing to the fractured correlation between global and lo.
With governments and central banks continuing to add stimulus to support their respective economies, global markets have started to price in reflation. Commodity prices are rising and so are bond yields, on fears that inflation could make a stronger-than-anticipated comeback.
David Rosenberg: This commodity boom could quickly turn to bust â but a better opportunity awaits China s dominance, India s rise and the shift towards green energy bodes well for some commodities
Author of the article: David Rosenberg
Publishing date: Feb 25, 2021  â¢Â February 25, 2021  â¢Â 4 minute read  â¢Â If the U.S. hopes to secure supplies of many of the key commodities required for the energy transition ahead, it will need to rely on partners such as Australia, Chile, India and Brazil that have significant reserves of rare earths, lithium, cobalt and graphite. Photo by Lynas Corp. via Bloomberg
Article content
The recent run-up in commodity prices has unsurprisingly spurred discussions about a newly emerging commodity supercycle. Itâs clear that we are in the midst of a supply-constraint led boom in this space, but this does not portend a long-term trend or decades-long supercycle ahead.
Over the last few weeks, we’ve outlined the following:
1. If you add up all of the money the U.S. has
ever printed…
2. In three months in 2020, the U.S. increased its deficit
by more than it had during the past five recessions combined (’73, ’75, ’82, early ‘90s and Great Financial Crisis).
3. Under Jerome Powell, the Fed bought more Treasuries in SIX WEEKS than it did in
10 years under Ben Bernanke and Janet Yellen.
4. Agricultural commodities prices are up nearly 40% since August.
5. The Commodity Research Bureau’s Index is up 75% since April.
These items alone are horrifying… and unfortunately for the world, there are a slew of new ones to add to the list.
David Rosenberg: Stop worrying about inflation, there are bigger risks on the horizon windsorstar.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from windsorstar.com Daily Mail and Mail on Sunday newspapers.