With the govt wary of raising fuel prices and scared of giving inflation figures a sudden boost, what might happen is that inflation will inch up and remain high as the govt will find it more practical to monetize the deficit rather than put the burden on the aam admi.
All said and done what goes around comes around, and the voter or the non voter has to suffer the consequence of his actions.
The advent of Winter will be interesting because oil prices will peak due to increased demand on cooling costs.
USA on the other hand, as per Bernanke will not shy away from keeping interest rates close to zero and monetizing its debt and debasing its currency with a new and unnamed qe …
Europe is also in a sticky situation with the yields of of its sovereign PIGS going up, as there is bound to be a tussle between the inflation hating Germans and French on one hand and the tier two nations who would rather inflate their way out of problems on the other.
So will we see the rally in gold and commodities continue ?