For the complete report from the Guardian click on this link
The health of the global economy as a whole over the next couple of years will depend on how these two powerful forces - inflation and the credit squeeze - play out. Russell Jones of RBC Capital Markets points out that the problems the world is currently seeing resemble a patchwork of past recessions. 'We are experiencing the sort of asset price adjustment, credit rationing and deleveraging associated with the contractions of 1990-91 and 2001,' he says. 'But the world is also digesting a sharp escalation of energy and food prices redolent of 1973-4 and 1989-90. When combined, these considerations amount to a particularly poisonous cocktail.'"
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