THE ECONOMIST MAGAZINE JOINS THE CHORUS

Do you remember our letters of the last few months where we have said "INFLATION IS EVERYWHERE" and similar things like HOW INFLATION IN THE DEVELOPING WORLD WOULD BE EXPORTED TO THE DEVELOPED WORLD? This week there is a big article about this very topic in The Economist, a publication that we at Guild Investment Management respect.
The Economist restates what we have long been saying. Problems in developing economies are not being dealt with intelligently. If they are not tackled immediately, the inflation growing in the developing world will create a large (and hard to manage) inflationary environment for the entire globe. The inflation that is being experienced in Vietnam, China, India, Russia, Venezuela, Argentina, Saudi Arabia other oil exporters and many other countries worldwide will be exported to the developed countries in the same way the inflation of the developed countries in the 1970's was exported to the developing world at that time.