Inflation is the next major threat to the global economy.

If a balance cannot be found, the lower interest rates will force people again to invest in risky assets - which is what caused the crisis in the first place.

SHOOT: In South Africa, the higher labour costs will be passed onto consumers in the form of higher prices for goods. So all that time spent toyi-toying...well, it's playing with numbers, because the situation doesn't change. We're all just sitting arounf fooling ourselves until the game is up.

clipped from www.fin24.com The rescue packages that governments, especially those in developed countries, have so lavishly doled out and the pressure on consumers create a dangerous inflation cocktail. Reacting to the crisis, governments in the developed world are quickly stepping up state expenditure - and borrowing money to do so. In so doing they are printing money in an attempt to stimulate spending. The inherent danger is that governments are backing insolvent businesses to sidestep their problems. Saville said unless governments in developed countries can come up with a plan to reduce money supply, runaway inflation is inevitable. Arno Lawrenz, head of investments at Atlantic Asset Management, reckons inflation will remain under control until economic recovery is in full swing, after which it will run riot. In the early stages of economic recovery higher resource prices will fan inflation, while governments will still want to keep interest rates low.