Limited Demand Pressures Peas

VANCOUVER - Oct 17/08 - SNS -- Field pea markets are showing a weakening tone as end users withdraw from markets on account of tight credit, with the result bids are setting the tone of markets moreso than offers from growers.

Some market participants saw this as a paradigm shift in sentiment in the face of collapsing stock and commodity markets and massive efforts by G-7 governments to rescue the international financial system.

The assumption of "toxic" debt by governments and the massive increases in money supply needed to fund the multi-hundred billion dollar rescue is expected to result in a terrible hangover.

Rapid increases in deficit spending and in the money supply has the potential to result in significant inflation. Since consumer spending is not expected to recover, an increased number of economists expect a period of stagflation..

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