Firm U.S. dollar weighs on sentiment… Slips from 1-week high as oil prices ease…

Gold surge fuelled by inflation fears… Deflation seen short-lived…  Platinum boosted, helped by auto sector optimism

Global stocks decline as gloomy economic news flow resumes… Euro zone services activity falls to a fresh record low… Central banks expected to cut rates aggressively… MSCI World stock index down 0.4 percent

‘The economic figures in Spain have deteriorated. Rato proposes reforms, and hopes that the government approves a package of economic measures soon’ says Paola Pecora.

So, without further ado, let’s jump into the problem with the Euro. Back in May 2007, we wrote a piece entitled “Part 2-So What Should We Worry About“.

Even I was stunned when I saw the Financial Times and the headline said, “Oil Futures Near $140 Amid Fears of Shortage.” As Robin used to say, “Holy smokes, Batman!”

Just one day after Money Morning predicted that the U.S. Federal Reserve would soon be forced to increase interest rates, Dallas Fed President Richard W. Fisher said he expected the central bank would raise interest rates should inflationary pressures start causing severe consumer pain.

‘Imported inflation is generating the greatest damage in Latin America, even when domestic demand remains strong,’ says Paola Pecora.

In the currency market, the dollar firmed against the euro. Late Tuesday, the euro was trading at $1.5696 vs. $1.5763 on Friday.

With oil prices climbing to higher than $133, to what extent does Mexico benefit from this? Is it taking advantage of this special time?