The penny has finally dropped – global inflation has returned. As David Uren reports in The Australian:
“Unease over the future of the economy intensified yesterday when
predictions of further increases in interest rates in the US saw the
Australian stock market suffer its biggest fall in almost two years and
the dollar drop sharply.”

To get some perspective about what we
might be in for, Henry Thornton’s recent article on US monetary policy
shows US inflation over 5% if house price inflation is added to CPI
inflation. Also the fact that global liquidity has been growing at 20%
pa. A graphic piece of imaginative writing by one of Henry’s
Goldmembers provides an image that surpasses central bankers’ measured
tones and professional optimism. Read more here.