Search This Site:

Friday, 2 March 2012

Commodities price inflation likely

"It remains uncertain how the banks will use the cheap money" provided by the European Central Bank (ECB), which has lent 530 billion euros to European banks, according to Der Spiegel.

One scenario is that much of the low interest rate liquid funds will be invested speculatively in commodities which are in demand by China, including base metals, energy and agricultural commodities.  Fertiliser related industries would also seem to be a sensible target.  And general equities are usually an attractive protective investment haven during early inflationary times.

See Der Spiegel's "The ECB's policies are anything but harmless".

No comments:

Post a Comment