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The year 2007 is called "The year of the inflation"
By: Peter Mill - 16-12-2007
0votesThe year 2007 we at World-Signals.com call the year of the highest inflation in the whole world. This high inflation comes in the world biggest economy after the Friday’s consumer price index report. Almost all countries of the world suffer by extremely high inflation this year. The inflation this year was cause by couple of factors one of the most important is the high oil prices and the weak dollar. The rumors and fears for the starting recession in U.S. together with the problems with the world economic growth send the currency investments as losing. Finally this high U.S. inflation causes the Fed to think about the new interest rates correction. The high inflation would not allow to Bernanke to cut the key benchmark interest rates again. The dollar is attractive currency again and many traders will start to accumulate dollars in expectations for recovery. The dollar there is broad space for recovery after the huge losses during the last couple of years.
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