Growth in Asia’s developing economies will slow in 2008 to the weakest in five years, reports Reuters.

The Asian Development Bank has forecast that the region will average GDP growth of 7.6% this year, compared to a 8.7% rise in 2007. The forecast growth rate is the lowest since 7.1% in 2003.

The bank also warned that the region needs to tackle inflationary pressures. Inflation is forecast to rise to a decade-long high this year.

Inflation is a major problem at home, too, says Bill Bonner.

“In terms of what a dollar will buy in the United States, a dollar is down around 25% so far this century. In terms of what it will buy in Europe, it is down by about 50%. In terms of gold, it has shrunk 75%.

“An investor needs a baseline. He needs to be able to figure out whether he is making progress or backsliding. An American typically keeps score in dollars. But there’s the rub… the dollar is a baseline that keeps moving. When the euro came out in 1998, it quickly fell against the dollar – from $1.12 down to 88 cents. That was the era when the NASDAQ was flying and Americans were still the world’s most admired people. Since then, the tech stocks have crashed… the information age has proved a disappointment… the War against Iraq didn’t go as planned… housing has gone down… and Wall Street has shown itself to be as incompetent as the rest of us.”