[quote=Rich Toscano]Carlsbadworker, I think you misunderstand what I mean by the “big one.” I am referring the potential for a serious inflation.
And no, they are not panicking about our debt yet. But I feel pretty confident they eventually will.[/quote]
Alright. I got your points.
I am just trying to point out there are two possible major risks to the world economy right now:
1. Higher borrowing costs in the developed world.
2. Hard landing in the developing world triggered by “inflation control”.
I think too much emphasis has been put on the former risk in most blogs/sites that people are not paying enough attention to the second one. With G-7 share of world GDP falling below 50% at the moment, I felt that this is not entirely justified.
