What does the Federal Reserve plan to do about inflation? At the moment they’re just taking, but it could be time for action later in the year, says Mike Burnick.

Editor’s Note: The Fed and the ECB have taken up opposing positions in the current economic battle, says Mike Burnick. Bernanke & Co have chosen to protect economic growth from the threat of tumbling asset prices. In Brussels, the priority is controlling inflation. This is bad for the dollar, says Mike, which will drive commodity prices higher still. There is no pain-free solution, he adds.

The Sovereign Society’s global investments expert, Mike Burnick, says rising inflation is a real threat to the BRIC economies.

Runaway price growth is certainly testing confidence in emerging markets, and stock prices in these BRIC nations are feeling the strain. However, according to Mike, a tighter monetary policy response in these countries could deal stock market investors a “death blow.”

In India prices are rising there at over 11% in annual terms, and are likely to be behind the government’s three-month ban on corn exports.

Editor’s Note: Crude oil prices are still above $140 a barrel, and King Abdullah of Saudi Arabia has told us all to get used to high prices. But Mike Burnick — senior analyst at The Sovereign Society — says the black goo is ‘pretty cheap.’ When you compare it to other products consumed heavily by Americans, oil actually seems pretty good value.

Editor’s Note: “Don’t look now… but the BRICs are falling,” says The Sovereign Soceity’s global investment expert Mike Burnick.

Now going global by investing local has been completely turned on its head. Another leading global beverage company is making an offer to buy-out America’s biggest local brewer.

The “official” inflation rate in the U.S. jumped 4.2% in the 12 months to May. That’s the fastest rate of price increases in more than 10-years – mainly due to… you guessed it: soaring food and fuel prices.

Commodity prices have been going through the roof for years, thanks to a scarcity of supplies and ever-surging global demand.

It’s the end of an era in Detroit… At Wednesday’s General Motors (GM) shareholders meeting, the company threw its business strategy into reverse gear. GM will chuck its heavy dependence on the truck, and go green instead…giving its alternative hybrid-electric car the go-ahead.