If there is anything today that personifies the fractured global economy we currently have between the developed world and the developing world it’s the interest rate hike of 25 bps to 2.5% overnight in Malaysia, although it was expected. Yes, Malaysia is just a $190b economy, almost half the size of Greece but it follows the steps from China, India, Australia, and Singapore over the past 6 months to normalize monetary conditions in response to a better economy and inflationary pressures. This of course is in contrast to the policies of the US and the Euro region who are trying to inflate their way out of too much debt which ironically is leading to higher commodity prices which in turn Asian authorities are trying to counter. Spain’s PM said austerity measures will reduce GDP forecasts for ’11 while Australia reported a better than expected Apr jobs #. Italy sold 5 yr and 15 yr paper successfully at yields well below the pre bailout levels.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.