"The sting of inflation is showing up in the emerging market economies, where rising food prices are stinging the consumer. (Oh sorry I forgot, food inflation isn't inflation!) China has a de facto USD peg and that policy means that, in the absence of other action, US monetary policy is Chinese monetary policy. The tsunami of liquidity that the Fed loosened on the markets is washing up on Chinese shores, where it has resulted in see-through buildings and empty cities. What's more, all that liquidity sloshing around has fueled a boom in Chinese antiques, where stories of record prices paid for an antique vase and for jade carvings abound. That is where inflation is stinging. Asset bubbles never end well. The latest round of QE is just a case of pouring gasoline on the fire." Read more."Inflation, Here is Thy Sting"Cam Hui Seeking Alpha, December 20, 2010.Image by m_bartosch / FreeDigitalPhotos.net.