From 2010 till 2014 is the important period for both developed and developing countries.

By Daniel at 8 February, 2010, 11:29 pm


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Housing and Inflation remains a major concern throughout the world.

Housing has more than double in China, India, Brazil, Argentina in the past 4 years but Income up only 30 to 40% during that period. Commodity prices have gone up 20% in the past year alone in most of the developing countries.

Commodity prices in the coming years will be influenced by two the forces of deflation and inflation. If deflationary forces dominate, commodity prices will tend to decrease; if inflationary forces dominate, commodity prices will tend to increase

During the last twenty years or so as mentioned above, commodity prices have essentially been in a long bear market with declining inflation rates. This decline in inflation has even now gone to the point of a general fear of impending deflation. This is especially true when consideration of the massive export potential of China to produce manufactured goods at significantly lower cost than the Western industrialized countries.However, the loose monetary policies of the Western industrialized countries could lead to much greater and even severe levels of inflation in the near future. This in turn could raise commodity prices significantly likewise.

- NK


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