But I reckon that China's effect on global manufacturing and inflation is both more diverse and more benign than my colleague Dan believes.
The previous problems that had global stock markets topped out on fears of rising inflation and concerns about the sustainability of the fragile global economic recovery, have not gone away, and if anything worsened while attention was diverted by the disaster in Japan.
This is all good news for those worried about the possibility of a trade war brewing between China and any number of nations, not least the U.S. And what will be the real impact of this expected appreciation on trade, on U.S. jobs, on Chinese inflation, on Chinese domestic consumption and on the global economy as a whole?
Are commodity markets signalling that global recovery and higher inflation are on the way?
ECONOMIST: The prices of most raw materials have been surging
As a result, he broadly absolved the Fed of any blame for global inflation, putting it instead on foreign governments for not allowing their currencies to appreciate and for keeping their interest rates too low.
Interest rates are falling to single digits once again as inflation begins to ease on account of the global economic slowdown taking its toll on Brazil.
Whether the associated equity speed bump exceeds the May 2006 global-market correction depends on the extent of the U.S. inflation problem.
How each bond investment style will perform will depend largely on what happens with the U.S. economy, the global economy and inflation.
FORBES: Playing The Big Bond Meltdown Without Getting Burned
Perhaps the best way to determine China's impact on world inflation is to gauge whether its net impact is to increase aggregate global demand or supply.
ECONOMIST: Why China is not to blame for the surge in global inflation
When the global markets learn more about the approved bailout program and its impact on perceived inflation, we should monitor the rates that central banks around the world sell their gold reserves.
Global economic conditions, inflation, interest rates, tax rates, and so on are all wild cards in retirement plans if they rely on mutual funds and equivalent vehicles.
The Global Competitiveness Report ranks countries both on hard economic data--such as gross domestic product, inflation, government debt, country credit rating and infant mortality--and on survey opinions from over 11, 000 chief executives and other high-ranking executives in 125 countries.
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