Posted on 06/29/2008 6:00:30 PM PDT by BenLurkin
BASEL, Switzerland (Reuters) - Central bankers issued a stern warning on Sunday against the dangers of surging inflation, saying rising energy costs risk damaging growth in rich and poor countries alike.
Policymakers attending talks at the annual meeting of the Bank for International Settlements said they were on high alert to the dangers posed by rising inflation and slowing growth, but there was no one-size-fits-all solution.
"We see very difficult times for the world economy moving ahead," said Martin Redrado, Argentina's central bank governor.
"In particular in the financial sector we are going to be witnessing the second wave of turbulence now that the slowdown is going to hit consumer credit ... It is uncharted waters that we are testing at this point, and central bankers all over the world are very alert."
Officials from more than 100 central banks exchanged views on the global economic outlook on Saturday and agreed oil prices -- which surged past $142 a barrel for the first time last week -- were a major concern.
In emerging economies, where consumers spend more of their income on food than in industrialized nations, inflation is no longer just a monetary policy problem but a social one.
"Around the world there is an enormous problem because of the rise in crude oil prices," Daouda Bangoura, Guinea's central bank governor, told Reuters.
Guinea, the world's top bauxite exporter, is among countries from Asia to Western Europe where anger over inflation has ignited protest and sometimes violence.
...
"We need to take concerted measures against inflation. We need to conciliate policy with social considerations ... in many countries today we are seeing tensions and protests," Bangoura said.
(Excerpt) Read more at news.yahoo.com ...
"We see that inflation is causing the United States to raise interest rates in the near future and that's going to take the dollar up. So why do anything opposite to what is good for us?"
world inflation.
“So why do anything opposite to what is good for us?”
The same can be asked of Harry Reid and Nancy Pelosi. *SPIT*
I hate it when that happens...!!!
Hey Pelosi, lets raise taxes and take the profits from energy companies. /s.off/
Who stands to benefit from inflation? The world's principal debtor: the United States Government. Of course, it's only problematic (for the Feds) when inflation is bad enough that people start noticing.
It’s OK for central bankers to notice high oil prices, but there is nothing they can or should do about it. Unless W calls for intervention to strengthen the dollar, oil prices will continue to rise and his friends will keep making money.
the answer is for the US to start raising interest rates in the fall and for the europeans to start lowering their interest rates in the fall.
likely the US will start raising interest rates but the european central bank will just do nothing or raise rates further
Yes, and some of us have been noticing for years.
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