Global Economy

Like many of those who are engaged in this kind of trading business, I strongly believe that we are presently in the super cycle of the global commodities as we generally see the commodity prices upward trend that is expected to remain the same way for at least 10 years. This is important to keep in mind before we can really examine the different factors that influence the trends of the global commodities. While we may corrections that are only short-term, the substantial growth in the trend is still ahead of us.

Chinese inflation affects the Global economy. I've previously covered the issue about the problem of inflation in China in Early February this year.

Have you ever stopped to think: What would be the effect of inflation in China affect us? About ten years ago a decent sized donut at my local shops would cost 80 cents. Now they would be 2 dollars. Sunny boys (ice blocks) would be around 40 cents and now they could fetch up to $1.20 for a bit of flavoured ice. Now, everything around is made in China. The peanut butter I ate this morning came from China, the laptop I'm typing on is Chinese, my seat is Chinese as well as probably all my luxury products like Clothes, TV's and DVD players.