This is the main source of global inflation

Are beginning to note that "red" 1, 2 or 5 euro cents parts are more rare. Their market value exceeds their monetary value. There must be people who take advantage of the difference! On the international market, the course of the copper oscillates between 7,500 and 8,000 dollars per tonne. In the less profitable deposits, the cost of extraction rises at more than 2,000 dollars. In the Chile, main producer countries, sometimes barely 1,000 most important mines. The huge profits have honed the revendicatif spirit of trade unions. But it leaves running noise that it is the strike makes the market fever.

The increased demand from the emerging countries in Asia for their industrial needs a good back. The movement strongly accelerated as a result of speculation. Nickel is the tassel. Its course reached the $ 32,000 per tonne. Eight times the cost of returned poorly placed producer in the world. The customs of the casino to penetrate in the industrial world. Similarly the bubble changes the habitat of entire cities. And what is the part of the speculative frenzy in the increase of oil

It has not occurred since 1959 (where the major currencies return convertible between them) a single access of inflation around the world which was preceded and accompanied by massive purchases of dollars by a small number of central banks. As they, people's Bank of China in the lead, are now mainly banks to issuance of industrious but little developed countries financially is not fortuitous. It is as if the Americans to live beyond their means, had found a resourceful to organize their trade with the rest of the world: much more import that they export and pay the difference in him selling bonds and Treasury bonds. It is less tiring!

Can say the same thing from an elementary thinking almost always lost from view: is not a deficit that is. It has all been personal experience: the sine qua non is to find a lender. This is why a deficit standing, as is the case for the United States (since...) (1959) remains an extraordinary anomaly... and a fantastic privilege. To get it, the Americans have taken advantage of the overdevelopment of their financial markets. Despite a few memorable crisis which has seen trade hang on Wall Street, they have accredited the idea that it is always possible to sell in New York on time any amount of titles, starting with the US Treasury debt. When it proclaims that the dollar has become the "reserve currency" of central banks around the world, in substitution of gold, not tells only half the story. The assets of reserve for all other States, it is the debt in the US State. The assumption is that you can always turn it into money.

Depending on the year, the deficit of the United States is thus filled in whole or in part. Through this process, this great country provides satisfaction to finance its military intervention in Iraq by the people's Bank of China and some other countries since the first day (Korea of the South, Taiwan, India, Mexico, Russia, etc.)! (See our Chronicle of December 16, 2005: "dollar system: Kant had already dismissed him...") .) Given the tremendous expansion of credit in the United States, the market consider as irresponsible the "pause" in the rehabilitation of the rates decided in early August by the Fed The latest figures indicate that, for the past two months, an acceleration of the pace of the dollar support operations. Before you convert the liquidity in the US Treasury, Central Bank debt purchasers lay a part with the Federal Bank of New York. It is then that places bonds and Treasury bonds. From July 5 to September 6, the deposits in question grew at an annual rate of 17.4, compared to 9.4, from 3 May to July 3.

At the outset, the intervener Central Bank, I assumed to be China, buys dollars in Chinese commercial banks (from which the Chinese exporters filed them). Commercial banks see their credit account with the Central Bank to expand as much. The interbank market is global. This additional to ease broadcasts quickly in large banking institutions of the world. On this basis, they extend their faculty to credit (companies, households) with a coefficient of amplification of the order of 10. This is the main source of global inflation. It is recognized that inflation is focused on real estate, stock, commodity bubble. Through rents, fuel prices will eventually determine a strong increase in the cost of living Accept the stock increases of wages as a result

To put an end to the "system" dollar, it relies on the attractiveness of the euro outside the euro (30 approximately of new reserves). But a system monetary bi - or multipolar has all chances to be terribly unstable. That money comes in an aspect of increasingly intangible (electronics) is in itself a progress. But the value of a currency depends on a single criterion: its purchasing power. In essence, the currency is is never "abstract". In the past, its value was measured in terms of the goods (gold or silver more often) chosen as standard by a large number of countries. The implied standard it is today the basket (303 articles France compound), used as the basis for the calculation of the CPI (the consumer price index). Turn on the non-existence of the European housekeeper.

Consumption patterns are different from one country to another, and many products and services. The OECD argues in calculating "purchasing power parities" judging the realism of the exchange rate. Pure illusion. Each country, through his own basket of reference, calculates its own index. No chance to know objectively how currency is overvalued or undervalued relative to another. Floating exchange rates have inaugurated the era of invisibility. Price systems evolve independently from each other. The absence of an organic link between currency areas exclude any regulation. How to avoid the chaos