it all revolves around time..with enough time most anything can be adjusted.
in this case where you have a single country such as china growing at an aggregate of 7%pa which basically means it doubles it's size every 10 years then adjustment time is something we have run out of without some radical action which would be so economically disruptive no govt will sanction it.. At this point you would have to be brain dead to position yourself against this longer term energy flow and unfortunately if you have not yet noticed much of the black stuff is not actually in the hands of our nearest and dearest friends. neither is a lot of the gassy stuff. Without meaning to be alarmist wars have started over just such issues as this..scarce resources. We would hope we have learned how destructive this is ,but I wouldn't bet on that.
"Inflation will drop........" ...you might in time be right on that one ,but how about a little bet that if it does the next boogeyman will be deflation and if you have not noticed....
"Global stock markets will THRIVE..." ...markets do not thrive on deflation they stagnate
and just to cover all possible bases you can have a combination of deflation and inflation effecting different elements of the economy known as stagflation
![Wink ;) ;)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
where your investments will actually only be of passing concern to your grandchildren who will have the momentus decision of whether to sell their 5% share of BP to buy their next holiday ,or should they just use the certificates to paper juniors bedroom.
12.5% rate in Iceland virtually overnight,but of course they are the exception. are they not...no other country ,or individual out there is so financially over stretched are they ?
We're walking a tightrope....hands up everyone who thinks Ben Bernanke is up to the job of making sure we don't fall off ...hands up everyone who's buying a safety net