Frogman

Eurozone Inflation Likely a Record 3.4% in March

The Economist talks about this last week...in a round about way...the ECB should cut rates to avoid inflation ( know this is counter intuitive but stay with me here).. Oil and Commodities have been flooded because of the plunging dollar...the ECB's refusal to cut rates (which is certainly justified considering the rising credit risk) will bring the Euro back to earth and strenghten the dollar..this will should cause people to move out of the commodities...This will give some relief to oil and food in the short run...there is evidence of this "safety" trade in commodiites with the recent deleveraging that was implemented last week...why? The ECB has a chance to lead us out but I am afraid they don't understand this either....my two cents...