Nice passage from the FT’s Alphaville today that I’ll quote in full here, touching on rising food prices, oil, etc.:
Something is deeply wrong in the global economy as inflation and over-fast growth lead to strains in an ever-growing number of markets (from coal, iron, shipping, steel, tin, copper, electricity, crude oil and distillates) and an ever-growing number of price restrictions and non-market responses (from diesel price controls in China and the rest of Asia, export embargos on steel in India, rice embargoes in India and Vietnam, to supermarket price freezes in the Persian Gulf and now purchasing limits in the United States). These are all symptoms of an global economy where demand is far outstripping supply, creating shortages and intense and accelerating upward pressure on prices. One way or another, growth is set to slow very sharply over the next two years – either of its own accord or because the major central banks in the United States, the Anglo-Saxon economies and China will be forced to start tightening credit conditions to prevent inflation lifting off. The economic outlook is becoming progressively grimmer.