I started this blog in June 2007 asking these questions: Are we in a massive asset bubble that will blow up in our faces ??? - ANSWERED YES ! Is western and particularly British society on the verge of social collapse??? What are the best common sense long term investment strategies to keep you rich? When will consumption/debt bubble economics end and a real savings/production economy begin ???

Friday 8 June 2007

New Zealand 8% rate shock as inflation stalks the world

New Zealand has stunned investors by raising interest rates a third time this year to 8pc to head off an inflationary spiral, adding to fears that central banks across the world may need to tighten much more than originally thought.

The rise was denounced as a "kick in the teeth" by the Auckland Chamber of Commerce, a sign that consensus over monetary policy is starting to break down as the overheating crisis turns serious.

Alan Bollard, the reserve bank governor, said roaring demand for commodities called for draconian measures. "We may once again be surprised about the persistence of domestic inflation," he said.

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