Asian/emerging economies at breaking point:Ben Bernanke (Federal Reserve) is exporting US Dollar weakness.

Asia inflation wipe-out will come from China and should engulf the rest of Asia. China's engines that have being running too hot for too long with the added bonus now of the oil price marching to $90 and beyond. All thanks to Ben Bernanke and his US Dollar erosion policy, which then causes a speculative bubbles in Asia/emerging economies. Namely commodities prices blowing out, currencies blowing out and oil blowing it's top as it goes onwards into it's 25mth bull run please refer Oil on a 25mth cyclical bull run. Update 9 - US Dollar weakness and a possible oil spike above $100.00 with China being the big net importer of oil. If the oil price keeps the steady incline and the Chinese now cannot fix a lower YUAN (CNY) against the USD; as the Fed has, by default, trapped the Chinese to keep their YUAN devalued, otherwise a mass of hot inflows of money will go into the Yuan. Creating a speculative bubble of the currency. China's inflation problem just got a lot worst, as most South America countries will find out and the rest Asia (that trade their currencies freely on the markets). Hence the currency wars, which will go 'nuclear' (phrase).

This should occur very quickly as emerging markets digest the insanity of Ben Bernanke and the Federal Reserve of America.

At this point it's wise to watch the the response of Asia regarding the oil price and the weak US dollar, a high oil price usually crunches Singapore and Japan, with China at a inflation tipping point, and oil inflation at an economic breaking point should now send their property markets into crash realms. This would occur when the Chinese sell their speculative properties so they can keep their cars running.

refer to oil chart with US dollar. (Note the widening divergence between the oil price and USD.)


The issue with imported oil inflation (Asia/South America) from the Feds (ala Ben Bernanke) love of USD destruction. Is economies and merging economies have still got inflated stimulus programs running, of course namely China. The debt crisis in Europe is still offset with inflation that is a spill over by the maniacal government spending programs in 2009 which lead to price bubbles (housing) So oil may only need to rise towards $90.00, with could then increase the pain on already topped out/bubbles.

We are about to head into a world of hurt.