I’m not sure if the race is limited to these two, but this is worth a read.
China vs. the U.S.: The Case for Second Place
Shockingly, another central bank begins the easing process. While I get the near term possibility of deflation, I have yet to hear how we avoid significant global inflation when so many countries ease simultaneously. Pay attention to how many countries are complaining about waning exports, which is typically to blame upon relative strength in the subject currency. Yes, I know, it’s dry. But, you can almost just read the headlines for confirmation on this. I suggest you read the articles to make sure you understand them, but at a minimum observe the trend AND consider what it means to you.
Singapore Cuts Growth Forecast, Central Bank Eases Currency Policy Stance
An interesting article on the shrinking middle class:
Growing Income Gap May Leave U.S. Vulnerable
This does assume that people are more logical than impulsive with respect to decisions like this. Generally speaking, I doubt this…but it’s interesting thought.
Refinancing Chills U.S. Home Purchases
I know, I know, what credibility?
Kocherlakota: Recent easing hurts Fed credibility
India’s Inflation Exceeds 9% for 10th Month, Increasing Pressure onRates
Water-Starved Texas Rice Crops Erode U.S. Harvest Prospects as Prices Gain
Z Koolaid 