Standard & Poor’s cut its outlook on Japan’s sovereign rating to negative from stable Wednesday to reflect the potential for a downgrade if the country’s fiscal situation deteriorates more than expected in the wake of last month’s disaster.
http://www.marketwatch.com/story/sp-cuts-japan-rating-outlook-to-negative-2011-04-26
US Constitution and Flag
Sunday, May 1, 2011
The 9 places where inflation is crushing us
The Federal Reserve would have you believe that everything is fine, focusing on core inflation rates and ignoring broader measures of inflation as they affect food and energy. These commodity-driven prices, as our central banking overlords would have you believe, are naturally more volatile and shouldn’t be overstated.
High gas prices could hurt ObamaNeil King looks at whether soaring gas prices will hurt President Obama's chances for re-election in 2012 and how Republicans in Congress are trying to put the blame on Obama for consumers' pain at the pump.
You would think after Fed bureaucrat William Dudley was castigated for talking up the affordability of iPads while ignoring real family expenses, our Federal Reserve officials would have woken up to reality. But after the publicity stunt by Chairman Ben Bernanke on Wednesday, it’s clear that the Fed — and perhaps many Americans as a result — is in denial when it comes to the inflationary trends crippling U.S. households.
http://www.marketwatch.com/story/the-9-places-where-inflation-is-crushing-us-2011-04-28?link=home_carousel
High gas prices could hurt ObamaNeil King looks at whether soaring gas prices will hurt President Obama's chances for re-election in 2012 and how Republicans in Congress are trying to put the blame on Obama for consumers' pain at the pump.
You would think after Fed bureaucrat William Dudley was castigated for talking up the affordability of iPads while ignoring real family expenses, our Federal Reserve officials would have woken up to reality. But after the publicity stunt by Chairman Ben Bernanke on Wednesday, it’s clear that the Fed — and perhaps many Americans as a result — is in denial when it comes to the inflationary trends crippling U.S. households.
http://www.marketwatch.com/story/the-9-places-where-inflation-is-crushing-us-2011-04-28?link=home_carousel
Monday, April 25, 2011
China creeps toward a crisis
China's leaders have turned an economic problem -- rising inflation that is projected to go from 5.4% in March to 6% in April -- into a political problem. They now face increasing protests over higher prices for everything from cooking oil to diesel fuel.
http://money.msn.com/investing/china-creeps-toward-a-crisis-jubak.aspx
http://money.msn.com/investing/china-creeps-toward-a-crisis-jubak.aspx
Sunday, April 24, 2011
China should cap forex reserves at 1.3 trillion U.S. dollars: China banker
China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday.
The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.
China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.
http://news.xinhuanet.com/english2010/china/2011-04/23/c_13842843.htm
The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.
China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.
http://news.xinhuanet.com/english2010/china/2011-04/23/c_13842843.htm
The Best and Worst Run States In America: A Survey of All Fifty
How well run are America’s fifty states? 24/7 Wall St. has taken several months to consider that question. Our writers looked at hundreds of data sets ranging from debt rating agency reports to violent crime rates, unemployment trends and median income. Of those, we chose what we considered to be the 10 most important ranking of financial and overall government management. The best run state is Wyoming. The Worst is Kentucky. The standing of each is supported by their ranking in the data sets we considered, as are the rankings of all fifty states.
http://247wallst.com/2010/10/04/the-best-and-worst-run-states-in-america-a-survey-of-all-fifty/
http://247wallst.com/2010/10/04/the-best-and-worst-run-states-in-america-a-survey-of-all-fifty/
$6 Gas? Could Happen if Dollar Keeps Getting Weaker
A dollar plumbing three-year lows is hitting Americans squarely in the gas tank, and one economist thinks it could drive prices as high as $6 a gallon or more by summertime under the right conditions.
With the greenback coming under increased pressure from Federal Reserve policies and investor appetite for more risk, there seems little direction but up for commodity prices, in particular energy and metals.
Weakness in the US currency feeds upward pressure on commodities, which are priced in dollars and thus come at a discount on the foreign markets.
http://www.cnbc.com/id/42683030
With the greenback coming under increased pressure from Federal Reserve policies and investor appetite for more risk, there seems little direction but up for commodity prices, in particular energy and metals.
Weakness in the US currency feeds upward pressure on commodities, which are priced in dollars and thus come at a discount on the foreign markets.
http://www.cnbc.com/id/42683030
A Frightening Satellite Tour Of America's Foreclosure Wastelands
RealtyTrac is out with the total foreclosure numbers for 2010. On the whole things are getting worse.
72 percent of major metro areas saw an increase in foreclosure volume. Although some of the worst hit areas in Nevada, California and Florida improved from 2009, the foreclosure rate in these areas remains shockingly high. If not for some foreclosure suspensions due to the robosigning scandal, these numbers would have been higher.
For a frightening way to visualize the foreclosure crisis,
http://www.businessinsider.com/satellite-tour-foreclosure-cities-2011-1?op=1
72 percent of major metro areas saw an increase in foreclosure volume. Although some of the worst hit areas in Nevada, California and Florida improved from 2009, the foreclosure rate in these areas remains shockingly high. If not for some foreclosure suspensions due to the robosigning scandal, these numbers would have been higher.
For a frightening way to visualize the foreclosure crisis,
http://www.businessinsider.com/satellite-tour-foreclosure-cities-2011-1?op=1
US government’s fiscal plight, the numbers say it all
As the Republican and Democratic leadership in Washington suit up for the battle that will be the 2012 budget, a battle that will have a lot to say about the fiscal fate of the U.S. government, we here at THE CONTRARIAN TAKE will be watching like a hawk.
http://blogs.forbes.com/michaelpollaro/2011/04/22/us-governments-fiscal-plight-the-numbers-say-it-all/
http://blogs.forbes.com/michaelpollaro/2011/04/22/us-governments-fiscal-plight-the-numbers-say-it-all/
Friday, April 22, 2011
The World Bank’s global Food Price Index remains close to its 2008 peak
Global food prices remain high, partly due to increasing fuel prices, and the World Bank’s Food Price Index is around its 2008 peak. Since June 2010, an additional 44 million people fell below the $1.25 poverty line as a result of higher food prices. Simulations show that a further 10% increase in the Food Price Index could lead to 10 million people falling into poverty, and a 30% increase could increase poverty by 34 million people.
http://www.worldbank.org/foodcrisis/foodpricewatch/april_2011.html
http://www.worldbank.org/foodcrisis/foodpricewatch/april_2011.html
Downgrading of U.S. Credit Rating Just Tip of the Iceberg
credit-reporting agency Standard & Poor’s downgraded the U.S. “AAA” credit rating from “stable” to “negative.” It was one big, loud message: if the U.S doesn’t get spending under control, its credit rating will be jeopardized further.
So how did the markets react? They gave us the opposite of what is expected. Instead of the U.S. dollar falling in value, it rallied. Bond prices, instead of declining, rallied. And gold stock prices declined with crude oil prices.
Why would U.S.-dollar denominated assets rally on the news of a U.S. credit rating cut (aside from trying to confuse the heck out of investors)? The reality of the situation is that investors still foolishly flock to U.S. dollars in times of uncertainty—even when the debt rating of the country issuing the dollars, the U.S., has been downgraded.
http://wallstreetpit.com/71669-downgrading-of-u-s-credit-rating-just-tip-of-the-iceberg
So how did the markets react? They gave us the opposite of what is expected. Instead of the U.S. dollar falling in value, it rallied. Bond prices, instead of declining, rallied. And gold stock prices declined with crude oil prices.
Why would U.S.-dollar denominated assets rally on the news of a U.S. credit rating cut (aside from trying to confuse the heck out of investors)? The reality of the situation is that investors still foolishly flock to U.S. dollars in times of uncertainty—even when the debt rating of the country issuing the dollars, the U.S., has been downgraded.
http://wallstreetpit.com/71669-downgrading-of-u-s-credit-rating-just-tip-of-the-iceberg
McDonald's warns of higher food inflation
* Q1 profit $1.15 per share vs Street view $1.14
* Sees more food inflation in United States, Europe
* Plans small price increases this year
* Will sacrifice some margin to protect traffic
* Shares down 1.5 percent
http://www.reuters.com/article/2011/04/21/mcdonalds-idUSN2113482820110421
* Sees more food inflation in United States, Europe
* Plans small price increases this year
* Will sacrifice some margin to protect traffic
* Shares down 1.5 percent
http://www.reuters.com/article/2011/04/21/mcdonalds-idUSN2113482820110421
Killer Combo of High Gas, Food Prices at Key Tipping Point
The combination of rising gasoline prices and the steepest increase in the cost of food in a generation is threatening to push the US economy into a recession, according to Craig Johnson, president of Customer Growth Partners.
With gas prices now standing at about $3.90 a gallon, energy costs have now passed 6 percent of spending—a level that Johnson says is a "tipping point" for consumers.
"Energy is not quite as essential as food and water, but is a necessity in today's economy, and when gasoline costs more than bottled water—like now—then it takes a huge bite out of disposable spending," he said, in a research note.
Of the six US recessions since 1970, all but the "9-11 year 2001 recession" have been linked to—of not triggered by—energy prices that crossed the 6 percent of personal consumption expenditures, he said. (During the shallow 2001 recession, energy prices had risen to about 5 percent of spending, which is higher than the long-term 4 percent share.)
http://www.cnbc.com/id/42704213
With gas prices now standing at about $3.90 a gallon, energy costs have now passed 6 percent of spending—a level that Johnson says is a "tipping point" for consumers.
"Energy is not quite as essential as food and water, but is a necessity in today's economy, and when gasoline costs more than bottled water—like now—then it takes a huge bite out of disposable spending," he said, in a research note.
Of the six US recessions since 1970, all but the "9-11 year 2001 recession" have been linked to—of not triggered by—energy prices that crossed the 6 percent of personal consumption expenditures, he said. (During the shallow 2001 recession, energy prices had risen to about 5 percent of spending, which is higher than the long-term 4 percent share.)
http://www.cnbc.com/id/42704213
Tuesday, April 19, 2011
Monday, April 18, 2011
Bank Of America Analyst Advocates The “Unthinkable” — An Intentional Default On US Debt
No one need create the catastrophic event otherwise feared from a temporary deferral of interest payments on Treasury debt arising out of a political conflict. Politicians on both sides of the debate could help to avoid that outcome by setting market expectations. With appropriate direction from Treasury or Congress, holders of Treasury debt could accrue their missed interest payments while continuing to accrue future interest payments.
http://www.blacklistednews.com/Bank_Of_America_Analyst_Advocates_The_%E2%80%9CUnthinkable%E2%80%9D_%E2%80%94_An_Intentional_Default_On_US_Debt_/13560/0/0/0/Y/M.html
http://www.blacklistednews.com/Bank_Of_America_Analyst_Advocates_The_%E2%80%9CUnthinkable%E2%80%9D_%E2%80%94_An_Intentional_Default_On_US_Debt_/13560/0/0/0/Y/M.html
U.S. Companies Shrink Packages as Food Prices Rise
U.S. food prices have been rising in the last year, but it seems the growth is only just beginning. A sharp jump in commodities' prices this year will soon result in sticker shock for American consumers.
Large food companies have recently announced that they will raise the prices they charge grocery retailers for commodities-based products. For example, a chocolate bar will cost more soon: Hershey last week announced a 10% increase for most of its confectionery goods.
http://www.dailyfinance.com/2011/04/04/u-s-companies-shrink-packages-as-food-prices-rise/
Large food companies have recently announced that they will raise the prices they charge grocery retailers for commodities-based products. For example, a chocolate bar will cost more soon: Hershey last week announced a 10% increase for most of its confectionery goods.
http://www.dailyfinance.com/2011/04/04/u-s-companies-shrink-packages-as-food-prices-rise/
Secret memos expose link between oil firms and invasion of Iraq
Plans to exploit Iraq's oil reserves were discussed by government ministers and the world's largest oil companies the year before Britain took a leading role in invading Iraq, government documents show.
The papers, revealed here for the first time, raise new questions over Britain's involvement in the war, which had divided Tony Blair's cabinet and was voted through only after his claims that Saddam Hussein had weapons of mass destruction.
http://www.independent.co.uk/news/uk/politics/secret-memos-expose-link-between-oil-firms-and-invasion-of-iraq-2269610.html
The papers, revealed here for the first time, raise new questions over Britain's involvement in the war, which had divided Tony Blair's cabinet and was voted through only after his claims that Saddam Hussein had weapons of mass destruction.
http://www.independent.co.uk/news/uk/politics/secret-memos-expose-link-between-oil-firms-and-invasion-of-iraq-2269610.html
BRICS Make Move to Shove Dollar Aside
China and four other leading high-growth economies have taken landmark steps toward lowering the importance of the dollar in international financial transactions — part of a seminal shift in the move towards a multicurrency reserve and trading system.
Mind you, you wouldn't get an idea of anything dramatic from reading the official Chinese press on the conclusion of a summit meeting of the so-called BRICS economies (Brazil, Russia, India, China and South Africa) in the southern resort twin of Sanya in southern China last week.
"Leaders call for peace and prosperity" was the front-page headline in the China Daily. Stirring stiff. Even more striking was the prominent story the previous day that China's President Hu Jintao and visiting Brazilian President Dilma Rousseff had agreed to quicken trade procedures for "gelatin, corn, tobacco leaf, bovine embryos and semen." At least we know there's no holding back the Chinese rhetorical flourishes on these issues.
http://finance.yahoo.com/banking-budgeting/article/112563/BRICS-move-dollar-aside-marketwatch?mod=bb-budgeting%20&sec=topStories&pos=3&asset=&ccode=
Mind you, you wouldn't get an idea of anything dramatic from reading the official Chinese press on the conclusion of a summit meeting of the so-called BRICS economies (Brazil, Russia, India, China and South Africa) in the southern resort twin of Sanya in southern China last week.
"Leaders call for peace and prosperity" was the front-page headline in the China Daily. Stirring stiff. Even more striking was the prominent story the previous day that China's President Hu Jintao and visiting Brazilian President Dilma Rousseff had agreed to quicken trade procedures for "gelatin, corn, tobacco leaf, bovine embryos and semen." At least we know there's no holding back the Chinese rhetorical flourishes on these issues.
http://finance.yahoo.com/banking-budgeting/article/112563/BRICS-move-dollar-aside-marketwatch?mod=bb-budgeting%20&sec=topStories&pos=3&asset=&ccode=
Wall Street shares slump as S&P downgrades US debt outlook
Ratings agency cuts long-term outlook from stable to negative for first time since Pearl Harbor attack 70 years ago
Shares fell heavily on Wall Street on Monday after a leading ratings agency fanned fears of Europe's debt crisis spreading across the Atlantic by issuing a strong warning about America's failure to tackle its budget deficit.
In a move seen by Wall Street as a "shot across the bows" of bickering politicians in Washington, Standard and Poor's (S&P) said it was cutting the outlook on the US's long-term rating from stable to negative for the first time since the attack on Pearl Harbor 70 years ago.
http://www.guardian.co.uk/business/2011/apr/18/us-economy-credit-rating
Shares fell heavily on Wall Street on Monday after a leading ratings agency fanned fears of Europe's debt crisis spreading across the Atlantic by issuing a strong warning about America's failure to tackle its budget deficit.
In a move seen by Wall Street as a "shot across the bows" of bickering politicians in Washington, Standard and Poor's (S&P) said it was cutting the outlook on the US's long-term rating from stable to negative for the first time since the attack on Pearl Harbor 70 years ago.
http://www.guardian.co.uk/business/2011/apr/18/us-economy-credit-rating
Saturday, April 16, 2011
Insolvent and Going Deeper
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Insolvent and Going Deeper
Share46EmailWednesday, April 13, 2011, 6:45 pm, by cmartenson
The US budget process is entirely out of control. By extension, its fiscal future is rather bleak.
All one has to do is back up two steps, entirely ignoring the meaningless budget scuffles currently ongoing in DC, to see that the federal government's fiscal situation is in complete shambles. In fact, as things currently stand in terms of spending and revenues, the US government is insolvent - its liabilities vastly exceed its assets on a net-present-value basis.
Yes, Obama has just laid out a plan that calls for cutting some $4 trillion of new, incremental deficit additions over the next 12 years, but this merely obscures the fact that the deficit will still grow by a rather hefty amount nonetheless. Plans from both sides of the aisle call for adding more debt but at a slower pace. True, that's progress of a sort, but not the type of progress you want to bring home to meet your mother.
http://www.chrismartenson.com/blog/insolvent-and-going-deeper/56407
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Home » Blogs » cmartenson's Blog
Insolvent and Going Deeper
Share46EmailWednesday, April 13, 2011, 6:45 pm, by cmartenson
The US budget process is entirely out of control. By extension, its fiscal future is rather bleak.
All one has to do is back up two steps, entirely ignoring the meaningless budget scuffles currently ongoing in DC, to see that the federal government's fiscal situation is in complete shambles. In fact, as things currently stand in terms of spending and revenues, the US government is insolvent - its liabilities vastly exceed its assets on a net-present-value basis.
Yes, Obama has just laid out a plan that calls for cutting some $4 trillion of new, incremental deficit additions over the next 12 years, but this merely obscures the fact that the deficit will still grow by a rather hefty amount nonetheless. Plans from both sides of the aisle call for adding more debt but at a slower pace. True, that's progress of a sort, but not the type of progress you want to bring home to meet your mother.
http://www.chrismartenson.com/blog/insolvent-and-going-deeper/56407
World Bank: Food prices have entered the 'danger zone'
Food prices have entered the “danger zone”, threatening to condemn a generation to extreme poverty and malnutrition, the World Bank has warned.
Robert Zoellick, World Bank president, said food prices are at “a tipping point”, having risen 36pc in the last year to levels close to their 2008 peak. The rising cost of food has been much more dramatic in low-income countries, pushing 44m people into poverty since June last year.
http://www.telegraph.co.uk/finance/economics/8451684/World-Bank-Food-prices-have-entered-the-danger-zone.html
Robert Zoellick, World Bank president, said food prices are at “a tipping point”, having risen 36pc in the last year to levels close to their 2008 peak. The rising cost of food has been much more dramatic in low-income countries, pushing 44m people into poverty since June last year.
http://www.telegraph.co.uk/finance/economics/8451684/World-Bank-Food-prices-have-entered-the-danger-zone.html
Monday, April 11, 2011
Toxic Dollar: Why Nobody Seems to Want US Currency
Traders are warning of a dramatic change in dollar selling. They fear central banks from the Middle East may force their Asian rivals to more aggressively drive the dollar down.
In 10 months, the Dollar Index has lost 14% because the world keeps accumulating dollars it doesn’t want and sells them. Asian central banks are key.
Many Asian central banks have been forced into waging wars to keep their currencies from appreciating because of the influx of investors to emerging markets. They sell waves of their own currencies into the market in an attempt to keep exports competitive.
http://www.cnbc.com/id/42479791
In 10 months, the Dollar Index has lost 14% because the world keeps accumulating dollars it doesn’t want and sells them. Asian central banks are key.
Many Asian central banks have been forced into waging wars to keep their currencies from appreciating because of the influx of investors to emerging markets. They sell waves of their own currencies into the market in an attempt to keep exports competitive.
http://www.cnbc.com/id/42479791
Treasury may borrow federal retirement funds in debt emergency
The government could temporarily tap tens of billions of dollars from two federal employee retirement programs if Congress fails to raise the federal debt ceiling next month, Treasury Secretary Timothy Geithner told lawmakers.
The government expects to hit a $14.3 trillion debt ceiling on May 16 or before, Geithner said in a Monday letter.
Geither implored Congress to extend the debt ceiling by that deadline and said that if Congress does not, Treasury will be forced to borrow money from the Civil Service Retirement and Disability Fund, and the Thrift Savings Plan's Government Securities Investment Fund, or G Fund, both of which are invested in U.S. Treasury securities. Those two moves could free up $142 billion through early July.
The government has taken similar steps before with no effect upon federal retirees. If the debt ceiling is extended by Congress within a couple months of the deadline, retirees and TSP participants should have nothing to worry about, several experts said. By law, both funds have to be repaid with interest, said Susan Irving, director for federal budget analysis at the Government Accountability Office.
http://www.federaltimes.com/article/20110405/BENEFITS02/104050306/
The government expects to hit a $14.3 trillion debt ceiling on May 16 or before, Geithner said in a Monday letter.
Geither implored Congress to extend the debt ceiling by that deadline and said that if Congress does not, Treasury will be forced to borrow money from the Civil Service Retirement and Disability Fund, and the Thrift Savings Plan's Government Securities Investment Fund, or G Fund, both of which are invested in U.S. Treasury securities. Those two moves could free up $142 billion through early July.
The government has taken similar steps before with no effect upon federal retirees. If the debt ceiling is extended by Congress within a couple months of the deadline, retirees and TSP participants should have nothing to worry about, several experts said. By law, both funds have to be repaid with interest, said Susan Irving, director for federal budget analysis at the Government Accountability Office.
http://www.federaltimes.com/article/20110405/BENEFITS02/104050306/
Sales of wholesale goods slip in February
Wholesale businesses boosted inventories for the 14th consecutive month but sold fewer cars, pieces of furniture and petroleum products in February.
Sales at the wholesale level slipped 0.8 percent in February, the first setback since June 2010, the Commerce Department reported Friday.
Inventories rose 1 percent and have been rising for more than a year. The string of inventory gains pushed them to $438 billion, up 13.4 percent from the low reached in September 2009.
The drop in sales is likely temporary, given expectation for gains in consumer demand in coming months, supported by tax cuts and stronger employment growth.
Auto sales at the wholesale level dropped 2.2 percent, furniture sales fell 2.2 percent, and sales of petroleum products declined 1 percent. Sales of petroleum products had surged 10.8 percent in January, a rise that was heavily influenced by a spike in oil prices.
http://finance.yahoo.com/news/Sales-of-wholesale-goods-slip-apf-1004846056.html?x=0
Sales at the wholesale level slipped 0.8 percent in February, the first setback since June 2010, the Commerce Department reported Friday.
Inventories rose 1 percent and have been rising for more than a year. The string of inventory gains pushed them to $438 billion, up 13.4 percent from the low reached in September 2009.
The drop in sales is likely temporary, given expectation for gains in consumer demand in coming months, supported by tax cuts and stronger employment growth.
Auto sales at the wholesale level dropped 2.2 percent, furniture sales fell 2.2 percent, and sales of petroleum products declined 1 percent. Sales of petroleum products had surged 10.8 percent in January, a rise that was heavily influenced by a spike in oil prices.
http://finance.yahoo.com/news/Sales-of-wholesale-goods-slip-apf-1004846056.html?x=0
PIMCO goes short US government debt, raises cash holdings
PIMCO has shifted to a short position in U.S. government-related debt in the world's largest bond fund, while also raising cash holdings in a sign of the asset manager's serious concerns about the U.S. fiscal outlook.
http://www.reuters.com/article/2011/04/11/pimco-bonds-short-idUSL3E7FB10S20110411
http://www.reuters.com/article/2011/04/11/pimco-bonds-short-idUSL3E7FB10S20110411
Sunday, April 3, 2011
$5 Fees May Be Coming to an ATM Near You
J.P. Morgan Chase [JPM 46.35 0.25 (+0.54%) ] and other banks are trying to recoup approximately $30 billion a year in lost overdraft fee income by testing $5 ATM fees, Consumer Action spokesman Joe Ridout told CNBC.
These banks have "historically been reliant on overdraft fees," he said, so they're "coming up with new ways to make up the difference." He said higher ATM fees and other rising costs penalize small depositors.
http://www.cnbc.com/id/42357880
These banks have "historically been reliant on overdraft fees," he said, so they're "coming up with new ways to make up the difference." He said higher ATM fees and other rising costs penalize small depositors.
http://www.cnbc.com/id/42357880
Jim Rogers Predicts Soaring Oil Prices
“The price of oil is going to go much higher over the next decade,” said Jim Rogers, Chairman of Rogers Holdings. He added the demand for oil and natural gas will rise in the next few years as nuclear demand falls in response to Fukushima, but “we need nuclear whether we like it or not.”
http://www.prisonplanet.com/jim-rogers-predicts-soaring-oil-prices.html
http://www.prisonplanet.com/jim-rogers-predicts-soaring-oil-prices.html
Dimon Says a Hundred Municipalities in U.S. Won’t ‘Make It’ Out of Debt
JPMorgan Chase & Co. (JPM) Chairman and Chief Executive Officer Jamie Dimon said some municipalities will need to renegotiate debt and a hundred may not “make it.”
“I wouldn’t panic about what I’m about to say,” Dimon, 55, said today at a U.S. Chamber of Commerce event in Washington. “You’re going to see some municipalities not make it. I don’t think it’s going to shatter America, I just think it’s a part of the credit cycle.”
Speculation about widespread municipal-bond defaults intensified in December when bank analyst Meredith Whitney predicted that “hundreds of billions” of dollars of municipal bonds may default in 2011 amid pressure to balance budgets.
http://www.bloomberg.com/news/2011-03-30/dimon-says-hundreds-of-municipalities-in-u-s-won-t-make-it-out-of-debt.html
“I wouldn’t panic about what I’m about to say,” Dimon, 55, said today at a U.S. Chamber of Commerce event in Washington. “You’re going to see some municipalities not make it. I don’t think it’s going to shatter America, I just think it’s a part of the credit cycle.”
Speculation about widespread municipal-bond defaults intensified in December when bank analyst Meredith Whitney predicted that “hundreds of billions” of dollars of municipal bonds may default in 2011 amid pressure to balance budgets.
http://www.bloomberg.com/news/2011-03-30/dimon-says-hundreds-of-municipalities-in-u-s-won-t-make-it-out-of-debt.html
Friday, April 1, 2011
Foreign Banks Tapped Fed’s Secret Lifeline Most at Crisis Peak
U.S. Federal Reserve Chairman Ben S. Bernanke’s two-year fight to shield crisis-squeezed banks from the stigma of revealing their public loans protected a lender to local governments in Belgium, a Japanese fishing-cooperative financier and a company part-owned by the Central Bank of Libya.
Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request. Dublin-based Depfa Bank Plc, taken over in 2007 by a German real-estate lender later seized by the German government, drew $24.5 billion.
http://www.bloomberg.com/news/2011-04-01/foreign-banks-tapped-fed-s-lifeline-most-as-bernanke-kept-borrowers-secret.html
Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request. Dublin-based Depfa Bank Plc, taken over in 2007 by a German real-estate lender later seized by the German government, drew $24.5 billion.
http://www.bloomberg.com/news/2011-04-01/foreign-banks-tapped-fed-s-lifeline-most-as-bernanke-kept-borrowers-secret.html
Thursday, March 31, 2011
Food inflation kept hidden in tinier bags
'It's sneaky, because they figure people won't know'
Chips are disappearing from bags, candy from boxes and vegetables from cans.
As an expected increase in the cost of raw materials looms for late summer, consumers are beginning to encounter shrinking food packages.
With unemployment still high, companies in recent months have tried to camouflage price increases by selling their products in tiny and tinier packages. So far, the changes are most visible at the grocery store, where shoppers are paying the same amount, but getting less.
http://www.msnbc.msn.com/id/42317990/
Chips are disappearing from bags, candy from boxes and vegetables from cans.
As an expected increase in the cost of raw materials looms for late summer, consumers are beginning to encounter shrinking food packages.
With unemployment still high, companies in recent months have tried to camouflage price increases by selling their products in tiny and tinier packages. So far, the changes are most visible at the grocery store, where shoppers are paying the same amount, but getting less.
http://www.msnbc.msn.com/id/42317990/
Oil climbs to highest since 2008 on Libya conflict
The price of oil rose to a 30-month high on Thursday as fighters loyal to Moammar Gadhafi pushed back rebels from key areas in eastern Libya.
Benchmark West Texas Intermediate crude rose $2.45, more than 2 percent, to settle at $106.72 a barrel on the New York Mercantile Exchange. At one point it hit $106.83, the highest it's been since September, 2008. In London, Brent crude rose $2.25 to settle at $117.20 per barrel.
http://finance.yahoo.com/news/Oil-climbs-to-highest-since-apf-1947152419.html?x=0&sec=topStories&pos=main&asset=&ccode=
Benchmark West Texas Intermediate crude rose $2.45, more than 2 percent, to settle at $106.72 a barrel on the New York Mercantile Exchange. At one point it hit $106.83, the highest it's been since September, 2008. In London, Brent crude rose $2.25 to settle at $117.20 per barrel.
http://finance.yahoo.com/news/Oil-climbs-to-highest-since-apf-1947152419.html?x=0&sec=topStories&pos=main&asset=&ccode=
Fed Official Sees Rates Inching Up This Year
The president of the Minneapolis Federal Reserve Bank said Thursday the Fed may need to increase short-term interest rates by year's end if underlying inflation rises as he anticipates.
In a interview, Narayana Kocherlakota said he expected "a big upward movement" in core inflation—inflation excluding volatile food and energy prices—from about 0.8% late last year to about 1.3% by year-end.
As a result, he said, it's "certainly possible" the Fed's target for short-term interest rates, now near zero, would be lifted by more than half a percentage point late this year.
http://online.wsj.com/article/SB10001424052748703806304576235033771422402.html?mod=googlenews_wsj
In a interview, Narayana Kocherlakota said he expected "a big upward movement" in core inflation—inflation excluding volatile food and energy prices—from about 0.8% late last year to about 1.3% by year-end.
As a result, he said, it's "certainly possible" the Fed's target for short-term interest rates, now near zero, would be lifted by more than half a percentage point late this year.
http://online.wsj.com/article/SB10001424052748703806304576235033771422402.html?mod=googlenews_wsj
Wal-Mart CEO Bill Simon expects inflation
U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday.
The nation's largest retailer needs to get back to its roots as the lowest priced one-stop shop for consumers, Walmart CEO Bill SImon said.
The world's largest retailer is working with suppliers to minimize the effect of cost increases and believes its low-cost business model will position it better than its competitors.
Still, inflation is "going to be serious," Wal-Mart U.S. CEO Bill Simon said during a meeting with USA TODAY's editorial board. "We're seeing cost increases starting to come through at a pretty rapid rate."
http://www.usatoday.com/money/industries/retail/2011-03-30-wal-mart-ceo-expects-inflation_N.htm
The nation's largest retailer needs to get back to its roots as the lowest priced one-stop shop for consumers, Walmart CEO Bill SImon said.
The world's largest retailer is working with suppliers to minimize the effect of cost increases and believes its low-cost business model will position it better than its competitors.
Still, inflation is "going to be serious," Wal-Mart U.S. CEO Bill Simon said during a meeting with USA TODAY's editorial board. "We're seeing cost increases starting to come through at a pretty rapid rate."
http://www.usatoday.com/money/industries/retail/2011-03-30-wal-mart-ceo-expects-inflation_N.htm
Traders Worry That April 27 Could Derail the Bull Market
Traders are saying the scariest moment of the second quarter will be on April 27, when Federal Reserve Chairman Ben Bernanke will hold the first ever press briefing following a monetary policy decision by the central bank.
http://www.cnbc.com/id/42362299
http://www.cnbc.com/id/42362299
Monday, March 28, 2011
Private Corporation Official Admits Impending U.S. Bankruptcy
http://www.opinion-maker.org/2011/03/private-corporation-official-admits-impending-u-s-bankruptcy/
The Dollar Will Collapse Within 3-4 Months
The US Dollar's inflationary death spiral continues. We've now taken out the 2010 low leaving only two more lines of support before we're in completely uncharted territory.
At its current rate of collapse, the US Dollar will do this within the next 3-4 months. This means the greenback will break into a new all-time lows by 2H11, which will precipitate the coming inflationary collapse.
http://www.zerohedge.com/article/dollar-will-collapse-within-3-4-months
At its current rate of collapse, the US Dollar will do this within the next 3-4 months. This means the greenback will break into a new all-time lows by 2H11, which will precipitate the coming inflationary collapse.
http://www.zerohedge.com/article/dollar-will-collapse-within-3-4-months
End of the Dollar?
In this new monetary world, moreover, the U.S. government will not be able to finance its budget deficits so cheaply, since there will no longer be as big an appetite for U.S. Treasury securities on the part of foreign central banks.
Nor will the U.S. be able to run such large trade and current-account deficits, since financing them will become more expensive. Narrowing the current-account deficit will require exporting more, which will mean making U.S. goods more competitive on foreign markets. That in turn means that the dollar will have to fall on foreign-exchange markets – helping U.S. exporters and hurting those companies that export to the U.S.
http://www.economics21.org/blog/end-dollar
Nor will the U.S. be able to run such large trade and current-account deficits, since financing them will become more expensive. Narrowing the current-account deficit will require exporting more, which will mean making U.S. goods more competitive on foreign markets. That in turn means that the dollar will have to fall on foreign-exchange markets – helping U.S. exporters and hurting those companies that export to the U.S.
http://www.economics21.org/blog/end-dollar
Saturday, March 26, 2011
Unsustainable budget threatens nation
Divided government is no excuse for inaction. The bipartisan National Commission on Fiscal Responsibility and Reform, under co-chairmen Erskine Bowles and Alan Simpson, issued a report on the problem in December supported by 11 Democrats and Republicans — a clear majority of the panel’s 18 members.
http://www.politico.com/news/stories/0311/51864.html
http://www.politico.com/news/stories/0311/51864.html
Moody's warns Britain over triple-A credit rating
Moody's, the ratings agency, said Britain's triple-A credit rating could be at risk if slower growth makes it harder for the government to rein in its budget deficit.
http://www.telegraph.co.uk/finance/economics/8403896/Moodys-warns-Britain-over-triple-A-credit-rating.html#
http://www.telegraph.co.uk/finance/economics/8403896/Moodys-warns-Britain-over-triple-A-credit-rating.html#
The Road of Inflation Will Only End in Tears
Cycles of booms and busts are planned, unpayable debts in many nations, we predicted the demise of the bond market months ago, Ron Paul looks at bogus CPI and PPI stats, world problems affect us here, recent low for the US dollar, near misses at leaky nuclear plant at home at Indian Point, a brutal labor war being waged in Wisconsin.
http://theinternationalforecaster.com/International_Forecaster_Weekly/The_Road_of_Inflation_Will_Only_End_in_Tears
http://theinternationalforecaster.com/International_Forecaster_Weekly/The_Road_of_Inflation_Will_Only_End_in_Tears
Thursday, March 17, 2011
US Cost of Living Hits Record, Passing Pre-Crisis High
A special index created by the Labor Department to measure the actual cost of living for Americans hit a record high in February, according to data released Thursday, surpassing the old high in July 2008. The Chained Consumer Price Index, released along with the more widely-watched CPI, increased 0.5 percent to 127.4, from 126.8 in January. In July 2008, just as the housing crisis was tightening its grip, the Chained Consumer Price Index hit its previous record of 126.9.
http://www.cnbc.com/id/42130406
http://www.cnbc.com/id/42130406
Currency Meltdown Coming
The situation in Japan is getting worse, not better. There are shortages in food, fuel and warm dry shelter. To make matters exponentially worse, nuclear power plants there continue to burn out of control and emit high levels of radiation. Japan is a stark reminder of how fast a modern technologically advanced society can be brought to its knees by an unforeseen calamity.
http://usawatchdog.com/currency-meltdown/
http://usawatchdog.com/currency-meltdown/
Enron Accounting: D.C. Politicians "Just Wasting Time" on Budget, BU's Kotlikoff Says
The Senate on Thursday is expected to pass another continuing resolution that will fund the government until April 8 and avert a shutdown. But that won't solve the need for a budget to fund the remainder of the fiscal year, much less address America's true fiscal woes, says Boston University economics professor Laurence Kotlikoff.
The ongoing budget debate in Washington is "really a food fight between Democrats and Republicans in order to shield what's going on, which is we are stealing from our kids," Kotlikoff says. "What these guys in Washington are doing is just wasting time."
http://finance.yahoo.com/tech-ticker/enron-accounting-d.c.-politicians-%22just-wasting-time%22-on-budget-bu%27s-kotlikoff-says-536041.html;_ylt=A2KJjammK4JNUD4AqJOTmYlQ?tickers=^DJI,^GSPC,TBT,TLT,XLV,GLD,TIP&sec=topStories&pos=10&asset=&ccode=
The ongoing budget debate in Washington is "really a food fight between Democrats and Republicans in order to shield what's going on, which is we are stealing from our kids," Kotlikoff says. "What these guys in Washington are doing is just wasting time."
http://finance.yahoo.com/tech-ticker/enron-accounting-d.c.-politicians-%22just-wasting-time%22-on-budget-bu%27s-kotlikoff-says-536041.html;_ylt=A2KJjammK4JNUD4AqJOTmYlQ?tickers=^DJI,^GSPC,TBT,TLT,XLV,GLD,TIP&sec=topStories&pos=10&asset=&ccode=
U.S. Debt and Deficits Ensure Violent Dollar Sell-Off Ahead
Monetization can be done in two ways. First, there is outright monetization as is now being conducted by the Fed through its POMO program; that is, its daily purchase of $4–$8 billion of Treasury debt. Indeed, the Fed’s QE2 bond purchases have been so massive that it is literally buying Treasury paper in the secondary market almost as fast as new bonds are being issued. During January, for example, fully 40% of the Fed’s $100 billion bond buy was from CUSIP numbers less than 90 days old.
Needless to say, putting brand new treasury bonds in the Fed’s vault before they have paid even a single coupon is functionally equivalent to printing greenbacks. After all, under this type of high-speed round trip, virtually all the coupons from newly issued bonds will end up as incremental profit at the Fed and be remitted back to the Treasury at year end.
Stated differently, in the present era of massive quantitative easing, newly issued Treasury securities amount to non-interest bearing currency without the circulation privilege.
http://www.marketoracle.co.uk/Article26902.html
Needless to say, putting brand new treasury bonds in the Fed’s vault before they have paid even a single coupon is functionally equivalent to printing greenbacks. After all, under this type of high-speed round trip, virtually all the coupons from newly issued bonds will end up as incremental profit at the Fed and be remitted back to the Treasury at year end.
Stated differently, in the present era of massive quantitative easing, newly issued Treasury securities amount to non-interest bearing currency without the circulation privilege.
http://www.marketoracle.co.uk/Article26902.html
It's Not Your Imagination: The Number Of Disasters Just Keeps Rising
The seventh largest quake ever occurred this week. The eighth largest quake occurred last year. The third largest quake occurred in 2004. Add to this hurricanes and floods, and it seems like natural disasters are on the rise
http://www.businessinsider.com/rise-of-natural-disasters-2011-3
http://www.businessinsider.com/rise-of-natural-disasters-2011-3
Wednesday, March 16, 2011
US backing for world currency stuns markets
US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is "quite open" to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.
http://www.telegraph.co.uk/finance/economics/5050407/US-backing-for-world-currency-stuns-markets.html#
http://www.telegraph.co.uk/finance/economics/5050407/US-backing-for-world-currency-stuns-markets.html#
The Silver Door Is Closing
A time will come when the value of silver is so strong and the value of the dollar so weak, that only a fool would ever trade silver for the dollar.
http://dont-tread-on.me/the-silver-window-is-closing/
http://dont-tread-on.me/the-silver-window-is-closing/
Saturday, March 12, 2011
Friday, March 11, 2011
Bank of America says nearly half its mortgages are 'bad'
Bank of America Corp. is segregating almost half its 13.9 million mortgages into a “bad” bank comprised of its riskiest and worst-performing “legacy” loans, Bloomberg News reported, citing Terry Laughlin, who is running the new unit.
“We are creating a classic good bank, bad bank structure,” Laughlin told investors at a meeting in New York Tuesday, according to Bloomberg. He was promoted last month to manage the costs of resolving disputes stemming from the company’s 2008 purchase of Countrywide Financial Corp. “We’re going to get after this, we’re going to do it the right way and we’re going to put it to bed in the next 36 months,” he said.
http://www.bizjournals.com/washington/morning_call/2011/03/bank-of-america-says-nearly-half-its.html?ana=twt
“We are creating a classic good bank, bad bank structure,” Laughlin told investors at a meeting in New York Tuesday, according to Bloomberg. He was promoted last month to manage the costs of resolving disputes stemming from the company’s 2008 purchase of Countrywide Financial Corp. “We’re going to get after this, we’re going to do it the right way and we’re going to put it to bed in the next 36 months,” he said.
http://www.bizjournals.com/washington/morning_call/2011/03/bank-of-america-says-nearly-half-its.html?ana=twt
Thursday, March 10, 2011
Price INCREASE
The price of just about every major agricultural commodity has been absolutely soaring during the past year....
*The price of corn has doubled over the last six months.
*The price of wheat has more than doubled over the past year.
*The price of soybeans is up about 50% since last June.
*The price of cotton has more than doubled over the past year.
*The commodity price of orange juice has doubled since 2009.
*The price of sugar is the highest it has been in 30 years.
*The price of corn has doubled over the last six months.
*The price of wheat has more than doubled over the past year.
*The price of soybeans is up about 50% since last June.
*The price of cotton has more than doubled over the past year.
*The commodity price of orange juice has doubled since 2009.
*The price of sugar is the highest it has been in 30 years.
Financial dismantling of the American middle class in 8 charts
The American economy runs on high octane debt. Debt has been welcomed by many with open arms and things seemed to be going well until people realized they actually had to pay the debt back. Average Americans trying to keep up with the picket white fence image of Leave it to Beaver were largely relying on debt to keep up with this lifestyle that was unsustainable with current incomes.
http://www.mybudget360.com/financial-dismantling-of-the-american-middle-class-in-8-charts-peak-debt-credit-card-cash-banking-finance-wealth/
http://www.mybudget360.com/financial-dismantling-of-the-american-middle-class-in-8-charts-peak-debt-credit-card-cash-banking-finance-wealth/
US Wants to Take Your Dollars -- and Replace Them With Coins
So in order to replace the paper currency with dollar coins -- a long-advocated move that could save the government an estimated $5.5. billion over 30 years -- the General Accountability Office called on Congress, the Federal Reserve and the Treasury to help yank the $1 note from circulation.
In the past 20 years, the GAO, Congress' investigative arm, has issued four recommendations for a switch to metal dollars in order to save all the money spent to replace worn-out dollar bills. Dollar bills last longer than they used to and now have a life span of up to 40 months. But the coins have an average life span of 30 years.
http://www.aolnews.com/2011/03/07/us-wants-to-take-your-dollars-and-replace-them-with-coins/
In the past 20 years, the GAO, Congress' investigative arm, has issued four recommendations for a switch to metal dollars in order to save all the money spent to replace worn-out dollar bills. Dollar bills last longer than they used to and now have a life span of up to 40 months. But the coins have an average life span of 30 years.
http://www.aolnews.com/2011/03/07/us-wants-to-take-your-dollars-and-replace-them-with-coins/
"No Way Out" of Debt Trap, Gross Says: U.S. Living Standards Doomed to Fall
In the U.S., states across the country face a collective $125 billion shortfall for fiscal 2012, while Congress is facing a budget gap nearly 10 times that size.
PIMCO founder Bill Gross -- one of the world's largest mutual funds managers, who focuses mostly on bonds -- has previously said that if the United States were a corporation, no one in their right mind would lend us money. For the last decade, we’ve been “relying on the kindness of strangers” to help cover our debts,
http://finance.yahoo.com/tech-ticker/%22no-way-out%22-of-debt-trap-gross-says-u.s.-living-standards-doomed-to-fall-536001.html?tickers=%5eDJI,%5eGSPC,%5eTNX,GLD,GDX,TLT,MUB
PIMCO founder Bill Gross -- one of the world's largest mutual funds managers, who focuses mostly on bonds -- has previously said that if the United States were a corporation, no one in their right mind would lend us money. For the last decade, we’ve been “relying on the kindness of strangers” to help cover our debts,
http://finance.yahoo.com/tech-ticker/%22no-way-out%22-of-debt-trap-gross-says-u.s.-living-standards-doomed-to-fall-536001.html?tickers=%5eDJI,%5eGSPC,%5eTNX,GLD,GDX,TLT,MUB
Tuesday, March 8, 2011
Maine gets break in federal health care overhaul
The federal government Tuesday granted Maine a waiver of a key provision in President Barack Obama's health care overhaul, citing the likelihood that enforcement could destabilize the state's market for individual health insurance.
The U.S. Health and Human Services department said in a letter it would waive the requirement that insurers spend 80 cents to 85 cents of every premium dollar on medical care and quality improvement. Instead, the letter said, the state could maintain its 65 percent standard for three years, with the caveat that HHS intends to review the figures after two years.
The decision makes Maine the first state to receive a waiver of the requirement. Similar requests are pending from Kentucky, Nevada and New Hampshire.
http://www.cnbc.com/id/41978227
The U.S. Health and Human Services department said in a letter it would waive the requirement that insurers spend 80 cents to 85 cents of every premium dollar on medical care and quality improvement. Instead, the letter said, the state could maintain its 65 percent standard for three years, with the caveat that HHS intends to review the figures after two years.
The decision makes Maine the first state to receive a waiver of the requirement. Similar requests are pending from Kentucky, Nevada and New Hampshire.
http://www.cnbc.com/id/41978227
Hoyer Says Federal Budget May Not Be Balanced for 20 Years
House Minority Whip Steny Hoyer (D-Md.) said on Tuesday that it may take as many as 20 years to balance the federal budget after years of deficit spending in Washington.
At Hoyer's weekly press briefing on Capitol Hill, CNSNews.com noted that President Obama's latest budget proposal does not balance at any time in the next 10 years
http://cnsnews.com/news/article/hoyer-says-federal-budget-may-not-be-bal#
At Hoyer's weekly press briefing on Capitol Hill, CNSNews.com noted that President Obama's latest budget proposal does not balance at any time in the next 10 years
http://cnsnews.com/news/article/hoyer-says-federal-budget-may-not-be-bal#
Warning Of 'Food Price Riots In The UK
"Even in the developed world I think we have very, very low wage growth, so people aren't getting more in their pay packet to compensate them for food and energy, and I think we could see social unrest certainly in parts of the developed world and the UK as well."
http://news.sky.com/skynews/Home/Business/A-Senior-HSBC-Economist-Warns-Of-Food-Riots-In-The-UK-If-Prices-Continue-To-Soar/Article/201103215948496?lpos=Business_Employment_First_Article_Region_0&lid=ARTICLE_15948496_A_Senior_HSBC_Economist_Warns_Of_Food_Riots_In_The_UK_If_Prices_Continue_To_Soar
http://news.sky.com/skynews/Home/Business/A-Senior-HSBC-Economist-Warns-Of-Food-Riots-In-The-UK-If-Prices-Continue-To-Soar/Article/201103215948496?lpos=Business_Employment_First_Article_Region_0&lid=ARTICLE_15948496_A_Senior_HSBC_Economist_Warns_Of_Food_Riots_In_The_UK_If_Prices_Continue_To_Soar
Sunday, March 6, 2011
Traders ‘short’ dollar as currency loses attraction
Hedge funds and forex dealers are betting record amounts against the dollar, reflecting a growing belief that the US currency has lost its haven appeal and that eurozone interest rates will soon rise.
As the crisis in the Middle East has worsened, the latest exchange data show that traders are selling “short” the currency. The big US fiscal deficit and concerns about the effect of rising oil prices have been blamed by some for the dollar’s slide.
http://www.ft.com/cms/s/0/e050b72e-4823-11e0-b323 00144feab49a.html#axzz1FsQ5F8cv
As the crisis in the Middle East has worsened, the latest exchange data show that traders are selling “short” the currency. The big US fiscal deficit and concerns about the effect of rising oil prices have been blamed by some for the dollar’s slide.
http://www.ft.com/cms/s/0/e050b72e-4823-11e0-b323 00144feab49a.html#axzz1FsQ5F8cv
Thursday, March 3, 2011
World Food Prices Climb to Record as UN Sounds Alarm on Further Shortages
Global food prices rose to a record in February and grain costs may continue to rise in the next several months, with only rice keeping the world from a repeat of the crisis three years ago, the United Nations said.
An index of 55 food commodities rose 2.2 percent to 236 points from 230.7 in January, the eighth consecutive gain, the UN’s Food and Agriculture Organization said today. Wheat rose as much as 58 percent on the Chicago Board of Trade in the past 12 months, corn gained 87 percent and rice added 6.5 percent.
http://www.bloomberg.com/news/2011-03-03/world-food-prices-climb-to-record-as-un-sounds-alarm-on-further-shortages.html
An index of 55 food commodities rose 2.2 percent to 236 points from 230.7 in January, the eighth consecutive gain, the UN’s Food and Agriculture Organization said today. Wheat rose as much as 58 percent on the Chicago Board of Trade in the past 12 months, corn gained 87 percent and rice added 6.5 percent.
http://www.bloomberg.com/news/2011-03-03/world-food-prices-climb-to-record-as-un-sounds-alarm-on-further-shortages.html
Manufacturing growing at fastest pace in 7 years
U.S. manufacturers expanded at the fastest pace in nearly seven years last month, but a sudden rise in the price of raw materials could threaten their profits.
The Institute for Supply Management said Tuesday that its index of manufacturing activity rose to 61.4 in February, up from 60.8 the previous month. That's the highest reading since it reached the same level in May 2004. The ISM's index bottomed out at 33.3 in December 2008, its lowest point in nearly 30 years.
http://finance.yahoo.com/news/Manufacturing-growing-at-apf-689542114.html?x=0
The Institute for Supply Management said Tuesday that its index of manufacturing activity rose to 61.4 in February, up from 60.8 the previous month. That's the highest reading since it reached the same level in May 2004. The ISM's index bottomed out at 33.3 in December 2008, its lowest point in nearly 30 years.
http://finance.yahoo.com/news/Manufacturing-growing-at-apf-689542114.html?x=0
Oil prices jump on Middle East, Bernanke comments
Oil prices climbed Tuesday as Iran clamped down on anti-government protesters and unrest in the Middle East threatened to keep energy prices high for months to come.
Benchmark West Texas Intermediate for April delivery gained $2.66 to settle at $99.63 per barrel on the New York Mercantile Exchange. In London, Brent crude gained $3.62 to settle at $115.42 per barrel on the ICE Futures exchange.
The recent surge in oil has pushed up gasoline prices in the U.S. by nearly 20 cents per gallon in the past week. That's the sharpest increase since September 2008, when Hurricane Ike shut down Gulf Coast refineries, according to the Oil Price Information Service. In 2005, Hurricane Katrina sent prices soaring about 45 cents per gallon in one week.
http://finance.yahoo.com/news/Oil-prices-jump-on-Middle-apf-1296176780.html?x=0
Benchmark West Texas Intermediate for April delivery gained $2.66 to settle at $99.63 per barrel on the New York Mercantile Exchange. In London, Brent crude gained $3.62 to settle at $115.42 per barrel on the ICE Futures exchange.
The recent surge in oil has pushed up gasoline prices in the U.S. by nearly 20 cents per gallon in the past week. That's the sharpest increase since September 2008, when Hurricane Ike shut down Gulf Coast refineries, according to the Oil Price Information Service. In 2005, Hurricane Katrina sent prices soaring about 45 cents per gallon in one week.
http://finance.yahoo.com/news/Oil-prices-jump-on-Middle-apf-1296176780.html?x=0
Tuesday, March 1, 2011
Oil drops, but gasoline prices keep rising
Oil prices fell below $97 per barrel Monday just days after spiking above $100. Last week's surge continued to ripple through global pipelines, however, as gasoline prices jumped 8 cents over the weekend.
Crude dropped on reports that Libya was still exporting oil. Shipments were thought to have halted last week as protestors clashed with the government and strongman Moammar Gadhafi lost control of many of the country's oil fields. But industry officials said Monday that a tanker bound for China was loading oil in the Libyan port of Tobruk. Saudi Arabia also was boosting exports.
Benchmark West Texas Intermediate crude for April delivery lost 91 cents to settle at $96.97 per barrel on the New York Mercantile Exchange. In London, Brent crude fell 34 cents to settle at $111.80 per barrel on the ICE Futures exchange.
Traders said there is a "fear premium" of $15 to $20 per barrel built into the price of oil to account for further disruptions in shipments as pro-reform movements sweep through North Africa and the Middle East. Oil prices should slide as the situation in Libya stabilizes, analysts said.
http://finance.yahoo.com/news/Oil-drops-but-gasoline-prices-apf-489242950.html?x=0
Crude dropped on reports that Libya was still exporting oil. Shipments were thought to have halted last week as protestors clashed with the government and strongman Moammar Gadhafi lost control of many of the country's oil fields. But industry officials said Monday that a tanker bound for China was loading oil in the Libyan port of Tobruk. Saudi Arabia also was boosting exports.
Benchmark West Texas Intermediate crude for April delivery lost 91 cents to settle at $96.97 per barrel on the New York Mercantile Exchange. In London, Brent crude fell 34 cents to settle at $111.80 per barrel on the ICE Futures exchange.
Traders said there is a "fear premium" of $15 to $20 per barrel built into the price of oil to account for further disruptions in shipments as pro-reform movements sweep through North Africa and the Middle East. Oil prices should slide as the situation in Libya stabilizes, analysts said.
http://finance.yahoo.com/news/Oil-drops-but-gasoline-prices-apf-489242950.html?x=0
History tells us that a surge in fuel costs makes a US recession likely
Ever since the early 1970s, every single time oil prices have spiked sharply (rising by 80pc or more), regular as clockwork the US has entered recession.
http://www.telegraph.co.uk/finance/comment/liamhalligan/8349612/History-tells-us-that-a-surge-in-fuel-costs-makes-a-US-recession-likely.html#
http://www.telegraph.co.uk/finance/comment/liamhalligan/8349612/History-tells-us-that-a-surge-in-fuel-costs-makes-a-US-recession-likely.html#
Monday, February 28, 2011
Oil drops, but gasoline prices keep rising
Oil prices fell below $97 per barrel Monday just days after spiking above $100. Last week's surge continued to ripple through global pipelines, however, as gasoline prices jumped 8 cents over the weekend.
http://finance.yahoo.com/news/Oil-drops-but-gasoline-prices-apf-489242950.html?x=0
http://finance.yahoo.com/news/Oil-drops-but-gasoline-prices-apf-489242950.html?x=0
What Are We Getting for an Extra $1 Trillion in Federal Spending?
As every constituency fights to protect its herd of sacred cows, there's certainly no shortage of political jockeying in the battle over the 2012 federal budget. What's missing, however, is this simple question: What exactly are we getting for the extra $1 trillion a year the federal government is now spending?
http://www.dailyfinance.com/story/what-are-we-getting-for-an-extra-1-trillion-in-federal-spending/19859822/
http://www.dailyfinance.com/story/what-are-we-getting-for-an-extra-1-trillion-in-federal-spending/19859822/
Saturday, February 26, 2011
Oil prices could be game-changer for world economy
Soaring oil prices are reaching levels that could threaten to brake improving but tentative global economic recovery, with an outside chance of a new recession or that most destructive of conditions, stagflation.
http://www.reuters.com/article/2011/02/24/us-economy-oil-idUSTRE71N2SB20110224
http://www.reuters.com/article/2011/02/24/us-economy-oil-idUSTRE71N2SB20110224
The End of the US Dollar?
The turmoil across North Africa and the Middle East is threatening not only to overthrow aging dictatorships, autocracies and monarchies, but also to upset the geopolitical balance between the countries of that region and the Western powers that has existed since at least the 1950s. For the West, the issue has always been the security of oil. For the US there is a second issue, and that is the security of Israel. Now both are under threat.
http://news.goldseek.com/UnionSecurities/1298563200.php
http://news.goldseek.com/UnionSecurities/1298563200.php
State and local budget cuts are slowing US economy
Deep spending cuts by state and local governments pose a growing threat to an economy that is already grappling with high unemployment, depressed home prices and the surging cost of oil.
Lawmakers at state capitols and city halls are slashing jobs and programs, arguing that some pain now is better than a lot more later. But the cuts are coming at a price -- weaker growth at the national level.
The clearest sign to date was a report Friday on U.S. gross domestic product for the final three months of 2010. The government lowered its growth estimate, pointing to larger-than-expected cuts by state and local governments. The report suggested that worsening state budget problems could hold back the recovery by putting more people out of work and reducing consumer spending.
http://finance.yahoo.com/news/State-and-local-budget-cuts-apf-4195423316.html?x=0
Lawmakers at state capitols and city halls are slashing jobs and programs, arguing that some pain now is better than a lot more later. But the cuts are coming at a price -- weaker growth at the national level.
The clearest sign to date was a report Friday on U.S. gross domestic product for the final three months of 2010. The government lowered its growth estimate, pointing to larger-than-expected cuts by state and local governments. The report suggested that worsening state budget problems could hold back the recovery by putting more people out of work and reducing consumer spending.
http://finance.yahoo.com/news/State-and-local-budget-cuts-apf-4195423316.html?x=0
U.S. crop boom not enough to rebuild thin supplies
ARLINGTON, Virginia (Reuters) – Huge U.S. corn and soybean plantings this spring will likely fail to refill razor-thin stocks enough to quell the surge in grain prices, the U.S. Agriculture Department said on Thursday.
In updated forecasts for the world's biggest crop exporter, the USDA warned that it could take several years to restore inventories to comfortable levels. It mostly maintained earlier forecasts on how many acres farmers would sow this spring, but said stocks at the end of the 2012 season would remain tight.
http://news.yahoo.com/s/nm/20110224/bs_nm/us_usda_forum
In updated forecasts for the world's biggest crop exporter, the USDA warned that it could take several years to restore inventories to comfortable levels. It mostly maintained earlier forecasts on how many acres farmers would sow this spring, but said stocks at the end of the 2012 season would remain tight.
http://news.yahoo.com/s/nm/20110224/bs_nm/us_usda_forum
Friday, February 25, 2011
Companies concerned about rising fuel costs
Companies around the world have begun to warn about the impact of higher fuel costs on their businesses, raising fears about profits and inflation.
Companies in the most energy-intensive sectors, such as airlines, have been the first to raise the alarm, but analysts warned that a sustained period of high oil prices would have a widespread effect on earnings.
http://www.ft.com/cms/s/0/de612ac2-410f-11e0-bf62-00144feabdc0.html#axzz1F1fyO85o
Companies in the most energy-intensive sectors, such as airlines, have been the first to raise the alarm, but analysts warned that a sustained period of high oil prices would have a widespread effect on earnings.
http://www.ft.com/cms/s/0/de612ac2-410f-11e0-bf62-00144feabdc0.html#axzz1F1fyO85o
US Will Be the World's Third Largest Economy
The world is going to become richer and richer as developing economies play catch up over the coming years, according to Willem Buiter, chief economist at Citigroup.
"We expect strong growth in the world economy until 2050, with average real GDP growth rates of 4.6 percent per annum until 2030 and 3.8 percent per annum between 2030 and 2050," Buiter wrote in a market research.
"As a result, world GDP should rise in real PPP-adjusted terms from $72 trillion in 2010 to $380 trillion dollars in 2050," he wrote.
http://www.cnbc.com/id/41775174
"We expect strong growth in the world economy until 2050, with average real GDP growth rates of 4.6 percent per annum until 2030 and 3.8 percent per annum between 2030 and 2050," Buiter wrote in a market research.
"As a result, world GDP should rise in real PPP-adjusted terms from $72 trillion in 2010 to $380 trillion dollars in 2050," he wrote.
http://www.cnbc.com/id/41775174
Thursday, February 24, 2011
Cost of...everything...about to go up
A new report from The Labor Department indicates its concern about inflation, and businesses are claiming they can't absorb the rising cost of commodities alone. Many say they'll have no choice but to raise prices and shrink packages. Frustrating stuff for an economy that's supposed to be recovering.
http://www.wbtv.com/Global/story.asp?S=14071185
http://www.wbtv.com/Global/story.asp?S=14071185
Higher Inflation Is On The Way
The stakes have seldom been higher. With the unemployment rate still above 9%, and federal debt at record levels, this latest error by the monetary authorities is likely to be the most costly since the Great Inflation of the 1970s. Monetary instability will slow employment growth and further erode confidence in government at the same time that higher interest rates will add billions of dollars to the interest cost on the national debt. Yet, failure to act in a timely basis will lead to an even greater crisis.
http://blogs.forbes.com/charleskadlec/2011/02/22/higher-inflation-is-on-the-way/
http://blogs.forbes.com/charleskadlec/2011/02/22/higher-inflation-is-on-the-way/
Markets get jitters as oil price heads for the sky
Fears that the unrest in North Africa and the Middle East could seriously disrupt oil supplies and throttle the world economy turned to reality yesterday and propelled the price of oil to more than $108 a barrel during trading, the highest since September 2008. It was $85 at the start of the year. The region supplies a third of the world's oil needs.
http://www.independent.co.uk/news/business/news/markets-get-jitters-as-oil-price-heads-for-the-sky-2222905.html#
http://www.independent.co.uk/news/business/news/markets-get-jitters-as-oil-price-heads-for-the-sky-2222905.html#
Sunday, February 20, 2011
Food/Financial Crisis of 2011
World food inflation is smashing down on the world’s populations as prices rise precipitously in the face of increasing shortages and absurd monetary policies. Prices are rising everywhere. It is not millions but billions of people who must tighten their belts because they have no choice but to eat less. Billions of people on our planet have no discretionary funds so they just cannot afford the increased prices. They have to get by with less to eat. They have no choice.
http://agriculture.imva.info/food-prices/foodfinancial-crisis-of-2011
http://agriculture.imva.info/food-prices/foodfinancial-crisis-of-2011
Why Are Food Prices Going Crazy?
Global wheat prices more than doubled in the second half of last year, according to a new report from the World Bank. The price of corn, sugar and cooking oil also soared.
Why are global food prices skyrocketing? Who is going to go hungry as a result? And what does it mean for the U.S.?
http://www.npr.org/blogs/money/2011/02/16/133744524/why-are-food-prices-going-crazy?ps=cprs
Why are global food prices skyrocketing? Who is going to go hungry as a result? And what does it mean for the U.S.?
http://www.npr.org/blogs/money/2011/02/16/133744524/why-are-food-prices-going-crazy?ps=cprs
Inflation makes comeback as prices rise for food, fuel
Inflation is making a quick comeback after touching the lowest levels in decades last fall.
Fast-rising prices for food, fuel and other basic necessities, stoked by rapid growth in emerging countries, are coming home to American consumers despite reluctance by U.S. businesses to raise their prices.
A report from the Labor Department on Thursday showed consumer prices rose by 0.4 percent in each of the past two months — or a 4 percent annual rate over the last quarter f fed by the biggest gains in food prices in two years and surging energy prices.
The report also showed a broadening of price pressures as airlines jacked up their fares by an average of 2.2 percent to pass on the cost of higher fuel and retailers raised clothing prices by 1 percent to reflect the higher costs of cotton and other fabrics.
http://www.washingtontimes.com/news/2011/feb/17/inflation-makes-comeback-prices-rise-food-fuel/
Fast-rising prices for food, fuel and other basic necessities, stoked by rapid growth in emerging countries, are coming home to American consumers despite reluctance by U.S. businesses to raise their prices.
A report from the Labor Department on Thursday showed consumer prices rose by 0.4 percent in each of the past two months — or a 4 percent annual rate over the last quarter f fed by the biggest gains in food prices in two years and surging energy prices.
The report also showed a broadening of price pressures as airlines jacked up their fares by an average of 2.2 percent to pass on the cost of higher fuel and retailers raised clothing prices by 1 percent to reflect the higher costs of cotton and other fabrics.
http://www.washingtontimes.com/news/2011/feb/17/inflation-makes-comeback-prices-rise-food-fuel/
Friday, February 18, 2011
Gold, Silver, Copper, Nickel and the Slow Death of Money
A huge opportunity to hedge against both inflation and deflation is lying out there in the open. There are no transaction costs and right now there’s even a built-in discount. But most people will never realize any of this.
In 1933 President Franklin Delano Roosevelt signed Executive Order 6102, which made it illegal for U.S. citizens to hold gold bullion.
Prior to that, the $20 bill was essentially a warehouse receipt for a one-ounce gold coin. Prior to the Federal Reserve Act of 1914, the $20 bill actually told you this.
http://whiskeyandgunpowder.com/gold-silver-copper-nickel-and-the-slow-death-of-money/
In 1933 President Franklin Delano Roosevelt signed Executive Order 6102, which made it illegal for U.S. citizens to hold gold bullion.
Prior to that, the $20 bill was essentially a warehouse receipt for a one-ounce gold coin. Prior to the Federal Reserve Act of 1914, the $20 bill actually told you this.
http://whiskeyandgunpowder.com/gold-silver-copper-nickel-and-the-slow-death-of-money/
Oil rises to $104 a barrel amid Middle East tensions
Brent crude rose above $104 a barrel late on Wednesday and remained there on Thursday after Avigdor Lieberman, the Israeli foreign minister, said two Iranian warships planned to sail through the Suez canal en route to Syria.
Aside from fresh Israel-Iran tensions, oil traders are also worried about unrest in Bahrain, where riot police killed protestors, and oil-rich Libya.
They fear the kind of disturbances that toppled the presidents of Egypt and Tunisia could spread to other oil-producing Middle East nations.
http://www.telegraph.co.uk/finance/newsbysector/energy/8329359/Oil-rises-to-104-a-barrel-amid-Middle-East-tensions.html#
Aside from fresh Israel-Iran tensions, oil traders are also worried about unrest in Bahrain, where riot police killed protestors, and oil-rich Libya.
They fear the kind of disturbances that toppled the presidents of Egypt and Tunisia could spread to other oil-producing Middle East nations.
http://www.telegraph.co.uk/finance/newsbysector/energy/8329359/Oil-rises-to-104-a-barrel-amid-Middle-East-tensions.html#
Rising wholesale prices spur inflation concerns
Steady improvement in the economy may soon come at a price -- faster inflation.
Shoes, clothes, tires, plastics and other products all cost more at the wholesale level last month, putting pressure on businesses to pass the increases along to their customers.
The hikes also give ammunition to critics who fear that the Federal Reserve's bold steps to strengthen the economy have started to feed inflation and need to be reined in. Those critics include some Fed officials.
A widely watched measure of wholesale inflation, the core Producer Price Index, rose 0.5 percent last month, the largest monthly increase since October 2008. The entire index, which includes volatile gas and food prices, rose 0.8 percent.
http://finance.yahoo.com/news/Rising-wholesale-prices-spur-apf-2005267013.html?x=0
Shoes, clothes, tires, plastics and other products all cost more at the wholesale level last month, putting pressure on businesses to pass the increases along to their customers.
The hikes also give ammunition to critics who fear that the Federal Reserve's bold steps to strengthen the economy have started to feed inflation and need to be reined in. Those critics include some Fed officials.
A widely watched measure of wholesale inflation, the core Producer Price Index, rose 0.5 percent last month, the largest monthly increase since October 2008. The entire index, which includes volatile gas and food prices, rose 0.8 percent.
http://finance.yahoo.com/news/Rising-wholesale-prices-spur-apf-2005267013.html?x=0
The Food Crisis is a Dollar Crisis
At this week’s hearing on Capitol Hill, Fed Chairman Ben Bernanke demonstrated a lack of understanding about what causes inflation. His comments reflected a belief that GDP growth causes inflation.
But true economic growth is production-driven, and adds to the supply of goods and services in the economy. True economic growth is not inflationary. Rather, inflation is driven by runaway government deficits and bloated central bank balance sheets. And right now, we have plenty of both. So we have every reason to expect the CPI, even with all of its window-dressing shenanigans, to soar past 2% in short order.
http://dailyreckoning.com/the-food-crisis-is-a-dollar-crisis/
But true economic growth is production-driven, and adds to the supply of goods and services in the economy. True economic growth is not inflationary. Rather, inflation is driven by runaway government deficits and bloated central bank balance sheets. And right now, we have plenty of both. So we have every reason to expect the CPI, even with all of its window-dressing shenanigans, to soar past 2% in short order.
http://dailyreckoning.com/the-food-crisis-is-a-dollar-crisis/
China sells $34.2bn of US treasury bonds
China sold $34bn (£21.5bn) worth of US government bonds in December, raising fears that Beijing is using its financial muscle to signal that it has lost confidence in American economic policy.
US treasury figures for the period ending in December 2009 show that, following the sale, China is no longer the largest overseas holder of US treasury bonds. Beijing ended the year sitting on $755.4bn worth of US government debt, compared to Japan's $768.8bn.
Since the sub-prime crisis that began on Main Street USA grew to engulf the global economy, China's leaders have repeatedly expressed concerns about US policy. December's $34bn sell-off made only a tiny dent in Beijing's total holdings of US assets, which amount to well over $1tn when stakes in American companies, as well as treasury bills, are taken into account.
http://www.guardian.co.uk/business/2010/feb/17/china-sells-us-treasury-bonds
US treasury figures for the period ending in December 2009 show that, following the sale, China is no longer the largest overseas holder of US treasury bonds. Beijing ended the year sitting on $755.4bn worth of US government debt, compared to Japan's $768.8bn.
Since the sub-prime crisis that began on Main Street USA grew to engulf the global economy, China's leaders have repeatedly expressed concerns about US policy. December's $34bn sell-off made only a tiny dent in Beijing's total holdings of US assets, which amount to well over $1tn when stakes in American companies, as well as treasury bills, are taken into account.
http://www.guardian.co.uk/business/2010/feb/17/china-sells-us-treasury-bonds
Thursday, February 17, 2011
U.S. Economy: Consumer Prices Rise More Than Forecast
The consumer-price index advanced 0.4 percent for a second month, led by the biggest increase in food costs in more than two years, according to figures today from the Labor Department in Washington. Other reports showed manufacturing is bolstering the expansion, and consumer confidence is being buffeted by rising household expenses.
Americans are paying more for air travel and clothing as growing economies in Asia and Latin America boost demand for commodities like oil and cotton. Another report today showing more people than projected filed claims for jobless benefits last week indicates workers don’t have the power to seek bigger pay increases, evidence inflation is unlikely to flare.
http://www.bloomberg.com/news/2011-02-17/consumer-prices-in-u-s-rise-more-than-forecast-on-higher-food-fuel-costs.html
Americans are paying more for air travel and clothing as growing economies in Asia and Latin America boost demand for commodities like oil and cotton. Another report today showing more people than projected filed claims for jobless benefits last week indicates workers don’t have the power to seek bigger pay increases, evidence inflation is unlikely to flare.
http://www.bloomberg.com/news/2011-02-17/consumer-prices-in-u-s-rise-more-than-forecast-on-higher-food-fuel-costs.html
World Bank: Food prices at "dangerous levels"
The World Bank's food price index rose by 15 percent between October and January alone. The increase has been driven by volatile global trading in wheat, corn and soybeans. Global corn futures more than doubled since this summer, from $3.50 to $7 a bushel, in part because of higher demand from developing countries and a growing biofuels industry.
http://news.yahoo.com/s/ap/20110215/ap_on_bi_ge/us_food_prices
http://news.yahoo.com/s/ap/20110215/ap_on_bi_ge/us_food_prices
Oil prices fall on economy, supply concerns
Oil prices retreated Tuesday on concerns about growing supplies of crude in the U.S. and weak retail sales numbers that suggested consumers were spending less because of high energy prices.
Benchmark West Texas Intermediate crude fell 66 cents to $84.15 a barrel in midday trading on the New York Mercantile Exchange after rising as high as $85.98 earlier in the session. In London, Brent crude fell 79 cents to $102.29 a barrel on the ICE Futures exchange.
http://www.breitbart.com/article.php?id=D9LDBTU02&show_article=1
Benchmark West Texas Intermediate crude fell 66 cents to $84.15 a barrel in midday trading on the New York Mercantile Exchange after rising as high as $85.98 earlier in the session. In London, Brent crude fell 79 cents to $102.29 a barrel on the ICE Futures exchange.
http://www.breitbart.com/article.php?id=D9LDBTU02&show_article=1
Precious Metals Get Heavy
Investors have been flocking to precious metals as a safe haven, boosting prices for the likes of gold and platinum.
But that's putting a squeeze on companies that use the metals in industries as varied as construction equipment and film making.
Precious metals tend to keep their value even as inflation and economic uncertainty hurt investments like stocks and bonds. That has fueled a flood of investment in exchange-traded funds, which track benchmark indexes, that are backed by gold and other metals.
http://www.marketwatch.com/story/precious-metals-weigh-on-manufacturers-2011-02-15
But that's putting a squeeze on companies that use the metals in industries as varied as construction equipment and film making.
Precious metals tend to keep their value even as inflation and economic uncertainty hurt investments like stocks and bonds. That has fueled a flood of investment in exchange-traded funds, which track benchmark indexes, that are backed by gold and other metals.
http://www.marketwatch.com/story/precious-metals-weigh-on-manufacturers-2011-02-15
Obama budget plan shows interest owed on national debt quadrupling in next decade
Interest payments on the national debt will quadruple in the next decade and every man, woman and child in the United States will be paying more than $2,500 a year to cover for the nation's past profligacy, according to figures in President Obama's new budget plan.
Starting in 2014, net interest payments will surpass the amount spent on education, transportation, energy and all other discretionary programs outside defense. In 2018, they will outstrip Medicare spending. Only the amounts spent on defense and Social Security would remain bigger under the president's plan.
http://www.washingtonpost.com/wp-dyn/content/article/2011/02/16/AR2011021606897.html?nav=rss_email/components
Starting in 2014, net interest payments will surpass the amount spent on education, transportation, energy and all other discretionary programs outside defense. In 2018, they will outstrip Medicare spending. Only the amounts spent on defense and Social Security would remain bigger under the president's plan.
http://www.washingtonpost.com/wp-dyn/content/article/2011/02/16/AR2011021606897.html?nav=rss_email/components
Wednesday, February 16, 2011
Monday, February 14, 2011
Roubini’s Next Crisis Is Scary Food for Thought: William Pesek
Forget Egypt for a moment. Skip the water crisis in China. Look past angst on the streets of Bangladesh. If you want to see how extreme the effects of surging food prices are becoming, look to wealthy Japan.
So big are the increases that economists are buzzing about them pushing deflationary Japan toward inflation. Yes, rising costs for commodities such as wheat, corn and coffee might do what trillions of dollars of central-bank liquidity couldn’t.
http://www.bloomberg.com/news/2011-02-13/roubini-s-next-crisis-makes-food-for-thought-commentary-by-william-pesek.html
So big are the increases that economists are buzzing about them pushing deflationary Japan toward inflation. Yes, rising costs for commodities such as wheat, corn and coffee might do what trillions of dollars of central-bank liquidity couldn’t.
http://www.bloomberg.com/news/2011-02-13/roubini-s-next-crisis-makes-food-for-thought-commentary-by-william-pesek.html
Major Food Distributor Sysco: “Immediate Volatile Prices, Expected Limited Availability, and Mediocre Quality at Best”
Adding to already rising food prices due to monetary inflation and weather related supply problems around the globe, one of the world’s leading food distribution companies, Sysco Corporation, is advising clients and their customers that the recent freeze across North America has significantly impacted growing operations in Mexico (as well as parts of the U.S.) leading to 80% - 100% crop damage:
http://www.shtfplan.com/commodities/major-food-distributor-sysco-immediate-volatile-prices-expected-limited-availability-and-mediocre-quality-at-best_02132011
http://www.shtfplan.com/commodities/major-food-distributor-sysco-immediate-volatile-prices-expected-limited-availability-and-mediocre-quality-at-best_02132011
Sunday, February 13, 2011
Kraft says more price increases ahead
The company reported Thursday that price increases it made to cope with higher ingredient costs are not going to be enough to sustain its profitability and it plans further hikes this year.
As one of the world's largest food companies, Kraft is feeling the pinch from higher costs for wheat, corn, sugar and other commodities.
The company already raised prices on most of its products in Europe and more than half in North America. But it said its input costs rose nearly $500 million during the fourth quarter and its profit margins suffered accordingly.
http://finance.yahoo.com/news/Kraft-says-more-price-apf-2318617575.html?x=0&sec=topStories&pos=6&asset=&ccode=
As one of the world's largest food companies, Kraft is feeling the pinch from higher costs for wheat, corn, sugar and other commodities.
The company already raised prices on most of its products in Europe and more than half in North America. But it said its input costs rose nearly $500 million during the fourth quarter and its profit margins suffered accordingly.
http://finance.yahoo.com/news/Kraft-says-more-price-apf-2318617575.html?x=0&sec=topStories&pos=6&asset=&ccode=
Another blow for families: Fastest rise in prices of staple foods in five years
Bread, pasta, and packets and tins of food increased in cost by 2.7 per cent between December and January to reach an annual rate of 6.3 per cent, according to the British Retail Consortium.
Overall, the annual rate of food inflation jumped from 4 per cent to 4.6 per cent, despite claims of supermarkets to be waging a new year price war. This was the largest monthly increase in two years.
http://www.dailymail.co.uk/news/article-1355055/Food-prices-fastest-rise-5-years-blow-families.html
Overall, the annual rate of food inflation jumped from 4 per cent to 4.6 per cent, despite claims of supermarkets to be waging a new year price war. This was the largest monthly increase in two years.
http://www.dailymail.co.uk/news/article-1355055/Food-prices-fastest-rise-5-years-blow-families.html
Thursday, February 10, 2011
McDonald's likely to raise prices in 2011
Food prices are rising around the globe and the comments from the world's biggest restaurant chain overshadowed weaker-than-expected December sales at established European and U.S. restaurants, as poor weather hurt demand, and a reported fourth-quarter profit that was in line with expectations.
McDonald's expects its costs to rise 2 percent to 2.5 percent this year in the United States and 3.5 percent to 4.5 percent in Europe.
Beef, chicken, pork, bread and milk products, paper, cola, ketchup and other sauces, and fruits and vegetables top McDonald's U.S. shopping list.
http://finance.yahoo.com/news/McDonalds-likely-to-raise-rb-1008649378.html?x=0
McDonald's expects its costs to rise 2 percent to 2.5 percent this year in the United States and 3.5 percent to 4.5 percent in Europe.
Beef, chicken, pork, bread and milk products, paper, cola, ketchup and other sauces, and fruits and vegetables top McDonald's U.S. shopping list.
http://finance.yahoo.com/news/McDonalds-likely-to-raise-rb-1008649378.html?x=0
China's Wheat Basket Faces Its Worst Drought In 200 Years
China's wheat basket, Shangdong Province, is stuck in the worst drought in 60 years. If weather forecasts hold true, this will be the worst drought in 200 years, according to Xinhua.
The government has already declared a state emergency to send relief to the province, including trucks full of drinking water and special equipment to irrigate the fields.
http://www.businessinsider.com/china-drought-20-years-2011-2
The government has already declared a state emergency to send relief to the province, including trucks full of drinking water and special equipment to irrigate the fields.
http://www.businessinsider.com/china-drought-20-years-2011-2
Seven Things That Will Cost More in 2011 and What You Can Do About Them
1. A Trip to the Grocery Store
2. The Cost of Gas and Heating Fuel
3. Health Insurance and Medical Costs
4. The Cost of Clothing
5. Colleges and Universities
6. Raising Kids
7. Bank and Bank Card Fees
http://www.walletpop.com/2011/01/07/seven-things-that-will-cost-more-in-2011-and-what-you-can-do-abo/
2. The Cost of Gas and Heating Fuel
3. Health Insurance and Medical Costs
4. The Cost of Clothing
5. Colleges and Universities
6. Raising Kids
7. Bank and Bank Card Fees
http://www.walletpop.com/2011/01/07/seven-things-that-will-cost-more-in-2011-and-what-you-can-do-abo/
Tuesday, February 8, 2011
Saudi Arabia cannot pump enough oil to keep a lid on prices
The US fears that Saudi Arabia, the world's largest crude oil exporter, may not have enough reserves to prevent oil prices escalating, confidential cables from its embassy in Riyadh show.
The cables, released by WikiLeaks, urge Washington to take seriously a warning from a senior Saudi government oil executive that the kingdom's crude oil reserves may have been overstated by as much as 300bn barrels – nearly 40%.
The revelation comes as the oil price has soared in recent weeks to more than $100 a barrel on global demand and tensions in the Middle East. Many analysts expect that the Saudis and their Opec cartel partners would pump more oil if rising prices threatened to choke off demand.
http://www.guardian.co.uk/business/2011/feb/08/saudi-oil-reserves-overstated-wikileaks
The cables, released by WikiLeaks, urge Washington to take seriously a warning from a senior Saudi government oil executive that the kingdom's crude oil reserves may have been overstated by as much as 300bn barrels – nearly 40%.
The revelation comes as the oil price has soared in recent weeks to more than $100 a barrel on global demand and tensions in the Middle East. Many analysts expect that the Saudis and their Opec cartel partners would pump more oil if rising prices threatened to choke off demand.
http://www.guardian.co.uk/business/2011/feb/08/saudi-oil-reserves-overstated-wikileaks
Monday, February 7, 2011
Silver in complete backwardation
We are in the process of pouring over the data from this week, and just below is something we are going to be hearing a lot more about in the coming days and weeks. As of Friday, February 4, 2011, there was near zero contango in the COMEX silver futures market.
http://harveyorgan.blogspot.com/2011/02/silver-in-complete-backwardation.html
http://harveyorgan.blogspot.com/2011/02/silver-in-complete-backwardation.html
Sunday, February 6, 2011
Jim Rickards On Inflation And Currency Wars
Jim Rickards: I think there is a definite and highly significant danger of inflation coming from QE and QE2 specifically. A lot of people have said, in fact, the Fed has said, that, if you look at the key price indices, the Producer Price Index (PPI), Consumer Price Index (CPI), and the Personal Consumption (PC) price deflator, they are very, they use the phrase, “well behaved”. For the past year and a half, the critics, and I would include myself, have been saying that this situation is dangerous and unstable. The Fed has been pointing to the price indices and saying that you can’t find inflation under a rock, you can’t find inflation with a microscope, so what are you worried about?
http://investmentwatchblog.com/interview-jim-rickards-on-inflation-and-currency-wars/
http://investmentwatchblog.com/interview-jim-rickards-on-inflation-and-currency-wars/
Supermarket surprise: smaller servings, same price
Product Old Size New Size Difference
Tropicana orange juice 64 oz. 59 oz. 7.8%
Ivory dish detergent 30 oz. 24 oz. 20%
Kraft American cheese 24 slices 22 slices 8.3%
Kirkland signature paper towels 96.2 sq. ft. 85 sq. ft. 11.6%
Haagen Dazs ice cream 16 oz. 14 oz. 12.5%
Scott toilet tissue 115.2 sq. ft. 104.8 sq. ft. 9%
Lanacane first aid spray 113 grams 99 grams 12.4%
Chicken of the Sea salmon 3 oz. 2.6 oz. 13.3%
Classico pesto 10 oz. 8.1 oz. 19%
Hebrew National franks 12 oz. 11 oz. 8.3%
http://news.yahoo.com/s//fool/20110124/bs_fool_fool/rx109081/
Tropicana orange juice 64 oz. 59 oz. 7.8%
Ivory dish detergent 30 oz. 24 oz. 20%
Kraft American cheese 24 slices 22 slices 8.3%
Kirkland signature paper towels 96.2 sq. ft. 85 sq. ft. 11.6%
Haagen Dazs ice cream 16 oz. 14 oz. 12.5%
Scott toilet tissue 115.2 sq. ft. 104.8 sq. ft. 9%
Lanacane first aid spray 113 grams 99 grams 12.4%
Chicken of the Sea salmon 3 oz. 2.6 oz. 13.3%
Classico pesto 10 oz. 8.1 oz. 19%
Hebrew National franks 12 oz. 11 oz. 8.3%
http://news.yahoo.com/s//fool/20110124/bs_fool_fool/rx109081/
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