by
Chris Martenson
All:
Sorry for the site/server troubles we experienced today. Trust me, we were working hard to figure out what was going on. Still no solid answers on how to prevent it again. Hopefully we’ll know that soon. Part of it seems to have been due to a large influx of visitors that came to view the Crash Course in Spanish. I underestimated the demand by a wide, wide margin. My bad.
U.S. Economy: Trade Gap Widens Less Than Forecast
Aug. 12 (Bloomberg) — The U.S. trade deficit widened less than forecast in June, reflecting a second consecutive gain in exports spurred by a pick-up in economies around the world.
The gap increased 4 percent to $27 billion from $26 billion in May, which was the lowest level in almost a decade, Commerce Department figures showed today in Washington. Exports gained 2 percent, helped by stronger demand for goods such as semiconductors and aircraft engines, while imports rose 2.3 percent, led by a higher cost for oil.
Comments: I think it’s a great thing that the US has a vastly reduced trade deficit compared to last year. While this "bump" in exports and imports is potentially good news for those seeking an economic bottom, it’s worth noting that exports are down 22% and imports are down 31% on a year-over-year basis. This chart from Calculated Risk puts the entire move in better context:
Martenson Insider – Tidbits for August 12, 2009
PREVIEW by Chris MartensonAll:
Sorry for the site/server troubles we experienced today. Trust me, we were working hard to figure out what was going on. Still no solid answers on how to prevent it again. Hopefully we’ll know that soon. Part of it seems to have been due to a large influx of visitors that came to view the Crash Course in Spanish. I underestimated the demand by a wide, wide margin. My bad.
U.S. Economy: Trade Gap Widens Less Than Forecast
Aug. 12 (Bloomberg) — The U.S. trade deficit widened less than forecast in June, reflecting a second consecutive gain in exports spurred by a pick-up in economies around the world.
The gap increased 4 percent to $27 billion from $26 billion in May, which was the lowest level in almost a decade, Commerce Department figures showed today in Washington. Exports gained 2 percent, helped by stronger demand for goods such as semiconductors and aircraft engines, while imports rose 2.3 percent, led by a higher cost for oil.
Comments: I think it’s a great thing that the US has a vastly reduced trade deficit compared to last year. While this "bump" in exports and imports is potentially good news for those seeking an economic bottom, it’s worth noting that exports are down 22% and imports are down 31% on a year-over-year basis. This chart from Calculated Risk puts the entire move in better context:
by
Chris Martenson
This is your chart of the day. If anything can explain exactly the sort of difficulties our economy is facing, this is it.
Source
All economic growth requires energy. This decline in energy use is the first such decline in the entire history of our energy records. Sure, there have been a couple of minor dips (back in the 1970’s), but nothing quite like this.
Chart of the Day – US Oil Imports
PREVIEW by Chris MartensonThis is your chart of the day. If anything can explain exactly the sort of difficulties our economy is facing, this is it.
Source
All economic growth requires energy. This decline in energy use is the first such decline in the entire history of our energy records. Sure, there have been a couple of minor dips (back in the 1970’s), but nothing quite like this.
by
Chris Martenson
This is a must-read article. It shows that the big money, and what I consider to be the long-term smart money, is moving aggressively towards locking up the last remaining critical resources on the planet. This article centers on crop land, but it could just as easily center on critical mineral resources. Or oil.
Wish you weren’t here: The devastating effects of the new colonialists
Resource Wars
PREVIEW by Chris MartensonThis is a must-read article. It shows that the big money, and what I consider to be the long-term smart money, is moving aggressively towards locking up the last remaining critical resources on the planet. This article centers on crop land, but it could just as easily center on critical mineral resources. Or oil.
Wish you weren’t here: The devastating effects of the new colonialists
by
Chris Martenson
Sugar Rallies 40% in Options Pointing to ‘81 Peak
Aug. 10 (Bloomberg) — Damaged crops from India to Brazil mean the world won’t have enough sugar for a second straight year.
Global demand will exceed output by as much as 5 million metric tons in the year through September 2010, leading to a record two-year shortfall, according to the International Sugar Organization in London. Parts of Brazil, the largest grower, are drenched by rainfall four times more than normal and too wet to harvest. India, the biggest consumer, had its driest June in 83 years and may double imports.
The number of options to buy sugar for delivery in March at 30 cents a pound, 44 percent higher than the Aug. 7 price in New York, has jumped more than 18-fold in four months. The rally is boosting expenses for food makers from Kellogg Co. to Kraft Foods Inc. and increasing profits for Cosan SA Industria e Comercio, the largest cane processor.
“I haven’t seen sugar fundamentals being so severely unbalanced in my time,” said Adam Leetham, the Gurgaon, India- based director of Czarnikow Group who has been tracking the domestic industry since 1994. “It’s not just India. You see fundamental deficits in a number of large markets. It certainly looks like we will enter uncharted territory.”
August 10 – Tidbits
PREVIEW by Chris MartensonSugar Rallies 40% in Options Pointing to ‘81 Peak
Aug. 10 (Bloomberg) — Damaged crops from India to Brazil mean the world won’t have enough sugar for a second straight year.
Global demand will exceed output by as much as 5 million metric tons in the year through September 2010, leading to a record two-year shortfall, according to the International Sugar Organization in London. Parts of Brazil, the largest grower, are drenched by rainfall four times more than normal and too wet to harvest. India, the biggest consumer, had its driest June in 83 years and may double imports.
The number of options to buy sugar for delivery in March at 30 cents a pound, 44 percent higher than the Aug. 7 price in New York, has jumped more than 18-fold in four months. The rally is boosting expenses for food makers from Kellogg Co. to Kraft Foods Inc. and increasing profits for Cosan SA Industria e Comercio, the largest cane processor.
“I haven’t seen sugar fundamentals being so severely unbalanced in my time,” said Adam Leetham, the Gurgaon, India- based director of Czarnikow Group who has been tracking the domestic industry since 1994. “It’s not just India. You see fundamental deficits in a number of large markets. It certainly looks like we will enter uncharted territory.”
by
Chris Martenson
Today, again, we receive news that Fed is continuing to pour more and more POMO money into the banking system, this time with a ‘mere’ ~$2 billion addition.
August 7 – New York Fed purchases $1.937 billion in agency coupons
As long-time readers here know, I have been tracking the Permanent Open Market Operations (or "POMO") activity of the Fed for a long time.
As I wrote in The Five Horsemen ( May 31 2009, enrollment required $):
Martenson Insider – Fed POMO activity and the Stock Market
PREVIEW by Chris MartensonToday, again, we receive news that Fed is continuing to pour more and more POMO money into the banking system, this time with a ‘mere’ ~$2 billion addition.
August 7 – New York Fed purchases $1.937 billion in agency coupons
As long-time readers here know, I have been tracking the Permanent Open Market Operations (or "POMO") activity of the Fed for a long time.
As I wrote in The Five Horsemen ( May 31 2009, enrollment required $):
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