And while the state-backed oil giant can tap one of the most dynamic growth stories in the world, Petrobras faces the dual problem of pricing restrictions and mounting inflation.
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Mounting inflation will also put pressure on Fed Chairman Ben Bernanke and his program of quantitative easing, dubbed QE2, devised to spark inflationary expectations. (Read Distressed Debt Investors Prefer Real Estate in 2011).
FORBES: Inflation-Wary Consumers Help Economy Grow 3.2% In Q4
While this helps to contain inflation in an import-dependent economy, further rapid capital inflows could trap Manila in a vise that's increasingly common in developing Asia rapid currency appreciation (which would argue for lower interest rates to deter excess capital inflows) versus mounting asset inflation (which would require higher interest rates).
Lately there's an emerging view in New Delhi that opening up retail trade could rein in mounting food price inflation.
Some (but not all) of the speakers believe that all fiat currencies, including the U.S. dollar, will default in one way or another, either outright or through inflation, as mounting debts and out-of-control entitlement obligations force large-scale monetization, leading to high inflation if not hyperinflation.
Investors fled amid a perception that India's economic boom is faltering under stubborn inflation, mounting debt, infrastructure bottlenecks and political stasis.
When Rep. Ryan read an article on the cover of the Journal noting rising inflation around the globe, Bernanke responded that the article clearly showed that inflation was mounting in emerging markets, where growth was occurring.
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Greenspan has been giving us the worst of both worlds: a mounting cost of money and more inflation.
After mounting pressure from the new government, the central bank raised its inflation target to 2% last month.
Over the past few months, India's consumer inflation has bucked a downtrend in wholesale inflation, constraining the central bank from lowering interest rates aggressively despite facing mounting pressure to make corporate borrowings cheaper and help stimulate an economy growing at its weakest pace in a decade.
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