Macro-economic frenzy... expecations, natural disasters, inflation, union strikes? what more?

Couple headlines that have grabbed my attention in recent days.


1) Unions strikes

Unions representing truck drivers are striking across the globe from Spain to England to South Korea, in protest of rising fuel prices, eroded purchasing power of their salaries, and feeling generally marginalized in society.
http://www.allheadlinenews.com/articles/7011212516
http://english.chosun.com/w21data/html/news/200806/200806100014.html
http://www.bloomberg.com/apps/news?pid=20601102&sid=a_EyvKsmJHSM&refer=uk

Peru-- LATAM fastest growing economy in 2007, just recently became the #1 global producer of silver, stands as the #2 producer of copper next to its neighbor Chile, and is the #6 producer of gold in the world. Peru in other is booming thanks to demand for copper, fish meal, and other commodities from Asia, and, second from countries and investors seeking to use metals like gold as a hedge vs inflation. This morning Peru's unhappy workers, currently in protest, due to the government failing to pass a resolution which puts ceilings on the level of profit sharing allowed. 28,000 miners from Peru's biggest mining union have postponed their strike in various mines until June 30-- many silver, copper, zing and gold (Dow newswire, accessed via Resource Investor).
http://www.resourceinvestor.com/pebble.asp?relid=43447

2) Asia plummets
A string of disasters in what susposed to be a continued boom year for the Chinese economy have crippled and done a great deal of damage to the new emerging super power of the world. First with the worst snow storms in 60 years which hit Southern China earlier this year-- where most of the countries economic activity is conducted, then with the anti-china/pro-tibet protests which hit the world stage during their Olympic torch rally, and last--the recent horrendous earth quake that hit Sichuan province. China's exchanges where down almost 5% yesterday at night one point, however it did not lead to the crash of Feb/March 2007, when Chinese market corrections led the way in a short global correction in stock markets. It seems the financial systems of the world has priced in the downside of this years problems in China and general difficulties which will face Asia in the wake of rising food and energy costs.

3) All over the world countries are concerned about inflation. Worse, speculation on metals and other commodities isn't helping the $, still the most circulated currency on earth rally, which would ultimately be helpful to the global economy as a whole. Its scary to see fed officials from the US and even the EU coming out and making comments on inflation. What action will they take? What ramifications will it have?
http://www.foxbusiness.com/story/markets/bernankes-inflation-comments-push-futures-lower/
http://money.cnn.com/2008/06/10/markets/stockswatch/?postversion=2008061008
http://glickreport.blogs.foxbusiness.com/2008/06/10/intervene-already/

What to make of all of this? Well i'm going with the plan of finding a few equities I feel are not still over-valued and are in a good position to retain market position and keep earnings expectations due to their unique business and or market niche. Follow emerging markets and where they head-- as the olympics get underway I'm still confident Asia will have a rally, but if the general health of financial systems of the globe don't improve before then it will be a short lived rally. Follow the price of energy and forecasting the future of emerging markets and the general global macroeconomic health of the world economy will be easier to follow. Inflation in food stuffs is also key... Rising oil and energy prices may hurt everyone-- especially the poor, but when even food is sky rockets in price, the people of the emerging world will feel it extra hard, potentially leading to further slow downs and social instability in countries.