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PIMCO sees 3 key factors as adding to global inflationary risks: the degradation of sovereign...

PIMCO sees 3 key factors as adding to global inflationary risks: the degradation of sovereign balance sheets, emerging markets becoming exporters of inflation, and aging populations saving less and consuming more. With accommodative central banks, it's a recipe for a secular move higher in inflation.
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Comments (6)
  • tigersam
    , contributor
    Comments (1711) | Send Message
    PIMCO always talk in riddle. I do not understand a single word from Mohamad. You have to rocket scientist to solve these riddles.
    23 Mar 2011, 09:24 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
    What I like about these kinds of "revelations" is that they have been out there all along and the press releases make like these just arose. No knock on PIMCO but let's face it, who didn't know this?
    23 Mar 2011, 09:25 AM Reply Like
  • OptionManiac
    , contributor
    Comments (3469) | Send Message
    Aging population consuming more? What world does he live on? A family of four spends less than a retired couple? My 80 year old parents hate to spend a dime on anything. Both my kids are out of the house and I can't believe how much excess cash I have. (Relatively speaking).
    The only thing the very old spend their money on is healthcare and lawn maintenance (and the latter very reluctantly).
    I hate it when an off the cuff remark is made without any thought put into it.
    23 Mar 2011, 09:56 AM Reply Like
  • Duude
    , contributor
    Comments (3402) | Send Message
    I would lay most of the global inflation risk at the footstep of marginally higher demand originating from the emerging nations. While we are still the single largest consumer of everything, our own demand is relatively stagnant as compared to the emerging nations. As for the aging population consuming more? Maybe healthcare, but I don't see much beyond that.
    23 Mar 2011, 11:46 AM Reply Like
  • Poor Texan
    , contributor
    Comments (3531) | Send Message
    "As for the aging population consuming more? "


    How about travel? Those who have always wanted to go to ????? but couldn't due to work and child raising can now take that one or two month trip to ?????. Big dollars.
    23 Mar 2011, 12:20 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3469) | Send Message
    I wonder what % does actually travel. My dad can't stand to spend a night away from his own bed.
    You are right, though, Poor Texan, I do think more travel now than in years past, but traveling doesn't increase consumption, so it would have little effect on inflation. Our peak consumption years are in our 30's and 40's, when we are collecting all kinds of "stuff". Now, being in my 50's, I walk the basement wondering what is next to go on Craig's List. I may buy myself a big boy's toy now and then, but my consumption rate sans children has gone way down. The fear of outliving my savings has made my savings rate go up.
    23 Mar 2011, 01:56 PM Reply Like
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