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Posts Tagged ‘interest rates’

Will $200 oil kill the economy?

March 2, 2011 Comments off

money.msn.com

Unrest in key oil-producing nations opens the door to price spikes that could push gas to $7 a gallon and spin the world back into recession. Here’s how we’d get there, and how to protect your portfolio.

Image: Oil drums © Kevin Phillips, Digital Vision, age fotostock


Are your pocketbook and portfolio ready for $200-a-barrel oil?

This kind of dramatic price spike may seem less likely now than a few days ago, with oil markets calming down a bit and the price slipping below $100. But given the instability and unrest rolling through the Middle East and North Africa, it’s a definitely a viable scenario.

For the moment, most oil sector analysts have gone off high alert because of a Saudi Arabian pledge to increase production to make up for any shortfalls sparked by unrest. But that ignores a key angle in all this: There’s simply not enough spare capacity to make up for the production losses we’d see if the rolling crises in the region hit just two or three major producers at once.

This could easily happen, given the heightened Read more…

Thousands in India protest increasing food prices

February 25, 2011 Comments off

NEW DELHI — Tens of thousands of trade unionists, including those from a group linked to India’s ruling party, marched through the streets of the capital on Wednesday to protest food prices, piling pressure on a government already under fire over graft. The demonstration in New Delhi was the latest in a wave of protests sweeping across the world, including the Middle East and Africa, ignited by a worldwide spike in food prices.

India, Asia’s third-largest economy and home to more than a billion people, has been grappling with double-digit food inflation. Hundreds of millions of poor have been hit the hardest.

In one of the largest anti-government protests in New Delhi in recent years, at least 50,000 people representing trade unions from the country’s political parties marched through the center of the capital towards the parliament building. In a sea of red flags and hats bearing their union name, protesters chanted Read more…

China sees U.S. stoking Brazil and India anger over yuan

February 13, 2011 Comments off

By Zhou Xin and Koh Gui Qing

BEIJING (Reuters) – The United States has incited Brazil and India to criticize China’s currency policy, but Beijing need not worry too much because it can defuse the tension through talks, a series of Chinese government advisers told Reuters.

Independent analysts warned, however, that a belief that Brazil and India are doing Washington’s bidding and are not truly aggrieved could make Beijing complacent and undermine fledgling ties between the emerging powers.

Increasingly widespread calls for a stronger yuan are awkward for China, which is accustomed to facing U.S. pressure over its tightly controlled exchange rate but has long tried to cast itself as the natural ally of other developing nations.

Brazil and India are unlikely to be any more successful than the United States in persuading Beijing to permit faster appreciation, researchers in Chinese government think tanks said.

“They must realize that the root of problem is not China but Read more…