asia-verges-on-major-asset-inflation-says-clsa

Asia verges on major asset inflation, says CLSA

The world's biggest debtor is finding out what happens when all that money comes home: a credit crunch in the US and soaring growth in Asia, says Russell Napier of CLSA.
The US Federal Reserve is locked in a great battle with inflation û and thereby triggering an exodus of private foreign capital to Asia, writes CLSA strategist Russell Napier, in a recent report.

The effect is damaging for the US, but beneficial for Asia, he points out.

Investors are leaving because fighting inflation throttles economic activity and is thus bad for growth and asset prices in the US. ôInflation will be a stubborn presence of the next decade or more, writes Napier. I believe that the great disinflationary following wind of the last 13 years in the US is abating, and that the Fed is running out of easy options.

The notion of...
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