Did you see the news today that Beijing has issued a requirement that its stimulus projects ‘Buy China’ . You’ll remember that China protested vociferously when the U.S. talked about putting a “Buy American” requirement in its stimulus package. But the Chinese didn’t have to worry thanks to the echo chamber of babbling heads on CNBC and elsewhere in the corporate-controlled media, who also were outraged – outraged! – that we might have a “buy American” provision in our stimulus package. The Obama administration shows all the backbone of a fluke worm when it’s challenged on anything, and it quickly backed down.
I guess those CNBC commentators will be equally outraged over China’s requirement, right? Ri-i-i-i-i-ight.
Meanwhile, Oil fell to around $70 this morning on mixed US economic signs. My forecast on oil, the dollar and gold is working out so far. But this fast and furious market can change on a dime.
And The OECD says global agriculture prices will stay high over the next decade. Average agricultural prices in real terms are expected to be 10-20 percent higher in 2009-2018 compared to the 1997-2006 decade which preceded the price peak. This is no surprise, of course, and makes the pullback in grains a buying opportunity. I just don’t think we’re at the bottom yet.
I pay my credit card balances off every month, which apparently is quite rare in U.S. circles these day. If you owe a ton of money on your credit cards, the credit card company may be very willing to make a deal. The New York Times reports that Issuers are slashing credit card balances.
Speaking of living on credit, last week, California’s Controller, John Chiang, warned that the state was “less than 50 days away from a meltdown of state government. The date that California is supposed to run out of money is July 28 – mark it on your calendar. Because the Federal government has said “no” (so far) to bailing out California. If California fails, state and municipal bonds across the country are likely going off a cliff. That will make it much harder for states and localities to borrow money to pay for projects, which will be another wrench in the works of an economic recovery.
On the subject of bonds, technical analyst Robert Prechter says he sees the United States losing its top AAA credit rating by the end of 2010.
Jesse over at Café American has the scoop on China’s developing plans for a “Super-Sovereign” Currency. Should you worry? If you have U.S. dollars in your wallet, the answer is “yes.” It worries the hell out of me.
This should make gold more popular. Naked Capitalism informs us (from a Financial Times story) that Germany is going to install vending machines that sell gold. The gold in a vending machine will be no bargain, so I don’t know who their potential customers are. The easily amused impulse buyers with lots of cash to spend, I guess.
Speaking of the Financial Times, that paper’s excellent Martin Wolf gives us more data showing that this recession is tracking the Great Depression. Or, as our children will probably call it, “The First Great Depression.” It sends a shudder up my spine just writing those words.
And speaking of depressing, Ilargi over at The Automatic Earth drops this unemployment graph on us …
I’m not an economist, but that sure as hell doesn’t look like a good trend.
China’s scheme for a Super-Sovereign Currency reminds me that I and my daughter were at a Super-Target yesterday. I told her that with a name like Super-Target, the store should wear a cape around its big fat neck and fly around at night. She immediately ran with this idea.
“Yes! And it would have X-Ray vision to look inside your wallet, and it would be able to read your mind, and so it would know what you were there to buy AND how much money you had to spend,” she said. “So when you walked in the front door, it would re-arrange itself to put what you needed in the back of the store, so you would have to walk through aisles and aisles of stuff you didn’t need and might want.”
Wow, a 10-year-old can dream up a diabolical retail villain at the drop of a hat, can’t she? Luckily, we escaped yesterday without buying anything. Foiled again, Super-Target! Bwah-ha-ha!
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