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Inflation Attacks the BRIC

Posted July 2, 2008

“Inflation is accelerating in the BRIC economies and central banks are responding with tighter monetary policy. While higher interest rates may be the standard remedy to combat inflation, tight money policies usually wind up dealing a death-blow to stock market investors.” — Mike Burnick

by Mike Burnick

Baltimore – (TFN): Don’t look now…but two of the most popular emerging markets in recent years are in trouble. It seems the BRICs are crumbling under the weight of soaring inflation!

These fast-growing emerging market countries include Brazil, Russia, India, and China. This year, they are facing their biggest economic challenge so far this decade: Runaway Inflation.

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The Urgent Steps You Must Take Now to Survive – and Prosper – from The Greatest Fuel Revolution in History

A slew of factors are lining up to make this the worst energy crisis in 35 years, possibly ever:

· China, India, Russia, and Brazil have tripled their oil consumption in the last five years as their economies boom.

· U.S. crude oil consumption is expected to increase at the rate of 1.2 million barrels per day in 2008.

· Summer “driving season” in the U.S. is here, pushing demand even higher. But this time drivers are facing $4+ a gallon at the pumps… a record high.

Yet a short list of investors will use these very same facts to turn every $5000 investment into $27000… find out how you could be one of them.

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Inflation is accelerating in the BRIC economies and central banks are responding with tighter monetary policy. While higher interest rates may be the standard remedy to combat inflation, tight money policies usually wind up dealing a death-blow to stock market investors.

The China Syndrome

The biggest runaway success story in recent years has, of course, been China. “The next century belongs to China,” say the bulls. And while there’s a lot of truth to that, the fact is sky-rocketing inflation is cutting into the Chinese miracle. Read on to learn more about investor pitfalls in China and the three other BRIC countries.

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Posted by Mike Burnick · Filed Under International Investing 

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