I suspect the world's central bankers and economic ministers have a difficult decision to make. If they decide to raise interest rates to slow the economy (and possibly induce a global recession) then poor people might not earn enough money to buy food at recent high prices. If they decide to avoid a food crisis then inflation rates (and commodity prices) remain high and likely increase.
Reuters Washington Post says Bernanke will not raise rates Monday June 16, 9:14 am ET WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke does not intend to raise interest rates because he is more worried about soaring oil prices slowing global growth than he is about their firing inflation, the Washington Post said on Monday. A column by Robert Novak, citing unnamed "sources close to him," said Bernanke "has no plans for a raise." The Federal Reserve declined to comment on the Washington Post column. The column said there was "an unusual difference in outlook on the global economy" between Bernanke and European Central Bank president Jean-Claude Trichet, who has hinted that the ECB will raise rates to combat inflation.
Not sure there's an unusual difference in outlook between Bernanke and Trichet. It's just that Trichet has one mandate - control prices. Bernanke does whatever he thinks is best for Wall Street.
Remember when Greenspan would testify before Congress and it was essentially gobbledygoop coming out of his mouth. Well, i have on good authority that Jack was his ghost writer. If you recall we were coming out of the Tech bubble recession in 2002-3 and were essentially out of it by late 2003. Consequently, I'll never accept that Greenspan's lowering the discount rate to an historically low level in Nov 2003 (I think it was something like 0.87% for the discount rate!) had nothing to do with his desire to goose the economy in time to help Bush win re-election. Another Zionist strike against the US!
How can the media continue to get this wrong.. Rising oil prices don't stoke inflation.. they are the symptoms of inflation.. inflation is an increase in the money supply Too many dollars chasing too few goods means prices rise.. Fucking elementary, and yet there won't be a retraction...
Greenspans speech bookings must be slowing down so he has to come out and stir things up. I did see him (youtube) confronted at a book signing by a young person asking why he acted in a way that causes problems in the future. The vile old lizard looked pointedly away not deigning to acknowleddge the question nd just carried on signing books. That made me really (really f*cking) detest him, don't let anything get in the way of the great Al show, whch of course is what it is about. I supect anybody would have ignored the question, it was the attitude and disdain with which he ignored it. Vile old lizard who needs to be villified so that he dies alone and discredited. Inflation is [constantly probing] business being able to get away with putting up prices - often caused by excess money supply. A bubble is when people who do not have a history as professional speculators in a market are able to make a living solely from that market. Markets are just not that easy.