Preparing Accordingly II

posted by Turd Ferguson at Along The Watchtower - 6 hours ago

A frequent topic here has been the ongoing and still-building food inflation crisis. The MSM is just now awakening and beginning to discuss the implications. By the time the great unwashed become fully awa...

 

 

 

The One Chart Von Bernankestein Will Never Admit To Seeing

Submitted by Tyler Durden on 02/12/2011 19:27 -0500

Charting Austrian Money Supply, the Fed's outright security holdings, and commodity prices. Any questions? 

 

 

 

 

 

A Look At The Week Ahead: All Eyes On Chinese CPI And Lending Growth Data

Submitted by Tyler Durden on 02/13/2011 17:45 -0500

In the early part of the week (Monday – Tuesday) China will release key lending growth data. Goldman expects the amount of CNY loans made in January to be around Rmb1.1 trillion, up from Rmb480 billion in December. The yoy growth of CNY loans is expected to fall to 18.5% yoy in January from 19.7% yoy in December. Also, January net exports are expected to decline to US$9.8 billion vs.US$13.1 billion in December. Meanwhile China CPI is expected to continue to rise to 5.3% from 4/6% previously. 

 

 

 

The End Of The MUB Bounce? Republicans To Block Renewal Of Build America Bonds

Submitted by Tyler Durden on 02/13/2011 17:35 -0500

The final nail in the zombified Build America Bond program may be finally approaching, in which case the dead cat bounce in the MUB may be about to end. After late last week Gerald Connolly, D-Va, proposed an extension to the BAB program through 2012, resulting in yet another risk bounce in the one asset class that has seen a major walloping in early January, not to mention record outflows (and a corresponding inflow into US equities), it seems that the GOP is not very excited about the prospect of further state subsidies. From the WSJ: "Key Republicans signaled they would block renewal of the Build America Bonds program as the Obama administration prepared to reinstate the bonds in the 2012 budget plan due Monday. Build America Bonds were originally introduced as part of the $787 stimulus program in 2009 but expired at the end of last year. They allowed states and localities to sell taxable bonds and receive a federal subsidy payment from the Internal Revenue Service equal to 35% of the interest costs on their bonds. But Sen. Orrin Hatch (R., Utah), the ranking Republican on the Senate Finance Committee, said late Friday that BABs were "simply a disguised state bailout." "These bonds rightly expired at the end of 2010 and it is my hope the Obama administration does not try to resurrect such a nonsensical provision in their upcoming budget," he said." Yet that is precisely what the president intends on doing, while somehow pretending that the budget will actually cut $1.1 trillion from the deficit over the next decade. Just how crazy is it to request that at some point America has a president and economic advisors who actually understand at least the most basis mathematical concepts, the key of which is that spending does not equal saving...

Rice Speculators Expect 50% Jump In Price

Submitted by Tyler Durden on 02/13/2011 14:24 -0500

Analyzing last week's CFTC Commitment of Trader data continues to confirm our assumption that ever more speculators are honing in on rice as the fulcrum commodity. Jumping to a fresh year high of 6,652, non-commercial net spec contracts are the highest they have been since December 2009, when they hit 6,773, and approaching the record from early 2008. Yet while the price of rough rice in late 2009 was comparable to recent price levels in the $16 region, the peak from early 2008 was 50% higher, approaching $25. Therefore it is safe to assume that should speculative interest continue surging at the current rate, and if it were to approach the spec exposure of ~8,000 last seen in early 2008, then the price of rice has a long way to go...