Posted on 03/16/2011 9:09:25 AM PDT by Heuristic Hiker
The current inflation scenario is reminiscent of the 1970s and the transition of economic dominance from the United States to China is already well under way, Harvard Professor Niall Ferguson told CNBC Monday.
Geopolitical events all add up "to a pretty bearish scenario because of all the inflation implications we're seeing right now," Ferguson said.
"You already had massive deficits and money printing in the developed world," he said. "On top of that you had enormous demand-side pressure from China relative to commodities."
"Now you've got the prospect of massive geopolitical disturbance in the great oil-producing centers of the world," he added. "That has to be a pretty inflationary scenario."
"At best case, we're going to re-run the 1970s, only with Barack Obama instead of Jimmy Carter in the White House," Ferguson said.
Globally, Western dominance peaked in the 1970s and the rise of Eastern dominance is evident with China taking over the top spot as world's biggest manufacturer, he said.
The dollar will likely keep its status as a reserve currency for a while, but there is "a sense around the world that exposure to the dollar has higher risk in it," Ferguson said.
© 2011 CNBC.com
I missed your ‘Jimmy QaedaII’ post - but I’m seeing that name everywhere now, lol.
Carter was legal and documented. Further there currently is no Reagan waiting out front.
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I should have thought of JIMMY QAEDA II long ago
It’s like gum on your shoe - or like walking through a pigpen
It sticks - and won’t go away
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Your imagination runs rampant, lolol
Don’t worry...I’ve missed some pings from you. I’ve been out of town...spent my mother’s 84th birthday with her. I just returned home tonight, and...boy...do I have the pings! lol
I hope you are feeling much better now, and hope you continue to feel better.
I’m so glad you got to spend important time with your Mother DC. Yes, the pings mount up and I often just try to reply ONCE to each person when I get behind, lol. Never worry about mine - I will understand.
Thank you for all your kind thoughts my friend!
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