(an interoffice email)
> On Mon, Jun 9, 2008 at 5:05 AM, Sean wrote:
> Today Korea announced a plan to spend $10bb to counter the effects of
> rising oil prices. The $100bb will include tax rebates and subsidizing
> power providers. This is with GDP growing at 5.8% ( although expected
> to slow to the mid 4% range and CPI at 4.9% – the package is expected
> to add 0.2% to GDP.
> There is no political will in Asia to avoid measures that sustain demand
> for energy related products – subsidy cuts have been very small and the
> outcry loud enough to prevent further meaningful cuts. Inflation is
> ripping in Asia, the second round effects are unavoidable and its going
> to be imported to the US.
Thanks, looks like Japan cpi break evens have a long way to go!