Straws in the storms about to blow through ....

Lord Patel November 6th 2006 posted ..

“The world economy is on track to grow at a 5.1% rate this year, but the risk of a severe global slowdown in 2007 is stronger than at any time since the September 2001 terror attacks on the United States,” said the International Monetary Fund in a report to finance ministers meeting in Singapore in September.

They mentioned 2 possible triggers:

1. A sharp slowdown in the U.S. housing market
2. Surging inflationary expectations that would force central banks to raise interest rates.


Well, everybody but followers of Lord Patel's projections said the rise by the Bank of England of a 1/4% base Rate hike followed this week by the disclosure of higher than expected (but nonetheless heavily massaged) price inflation data was "unexpected" .."a shock"

Well more shocks are on the way.

Pic John Everett Millais' painting Bubbles in 1886 used to promote Pears Glycerine soap introduced in 1789 In London, by soapmaker Andrew Pears.