Inflation is coming for Asia

[benjamen]

http://finance.yahoo.com/news/watch...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

"Weak economic growth has helped keep inflation in check, but signs of an economic recovery in Asia are growing and this combined with unprecedented monetary easing by central banks in the past two years will push prices higher in the months ahead, Xie told CNBC Asia's "Squawk Box" on Thursday."

"At the end of the day, you have all this money out there. It's rational to expect inflation," Xie, a former chief Asia-Pacific economist with Morgan Stanley, said. "India is the most vulnerable. It cannot solve supply bottlenecks. Southeast Asian economies like Indonesia and Thailand too."


The same exact situation is occuring in the U.S., yet no mention of inflation risk here?

 

[mike]

It will be double inflation for the US, since everything we buy is made in China.

 

[pmbug]

We are exporting our inflation. It's going to hit foreign shores first (remember the impetus for the so called "Arab Spring"?).

 

[DoChenRollingBearing]

No inflation in Peru yet, other than the fact that its currency is RISING vs. the US$. My last haircut cost me $5.00, 25% more than a year ago, the bulk of that due to Peru's strong currency. Scandalous!

Our Asian bearing suppliers have not raised prices in over a year. That sort-of tells me that on a larger scale that demand for replacement parts might be weakening (in other countries), but sales for us in 2012 were 21% + better than in 2011.

I have tracked the very recent Japanese Yen going down. That (of course) is good news for us, as some 15% - 20% of our bearings come from there, there will be less cost pressure on our supplier, and he will likely maintain the good prices we get (our supplier is very small by Japanese standards).