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US Economy and Globalization Part 9 of 17 |
| By Webmaster,
on November 19, 2008 01:21 PM 
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Published in : The News, Delta Sites |
1.As Australians, you know better than anyone about the dramatic increase in milk prices, to say nothing of grains and other foodstuffs that go into feeding any Power Principles creature that walks on two or four legs. This is hardly encouraging, given that these price increases are occurring against a ramping up of the caloric and protein intake of a few billion new eaters in China, India and elsewhere. All told, it injects a modicum of doubt about the wisdom of predicting further significant declines in inflationary pressures.
Energy price dynamics further cloud the picture. If you talk to any of the major and independent oil companies, they will tell you they have no problem in finding oil or refining it or delivering final products. They will note, however, two key impulses that are at work:
First, they see no evident slowing in the growth of demand for energy in the U.S. The energy appetite in the BRICsthe big, fast-growing nations of Brazil, Russia, India and Chinais voracious, and they are only part of the developing world. An enormous amount of chemical plant infrastructure and capacity is being constructed everywherefrom the U.S. Gulf Coast to the Middle East to China and
Last update: November 19, 2008 01:21 PM
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The Egocentricity of the Present Part 13 of 22 |
| By Webmaster,
on November 19, 2008 06:14 AM
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Views : 4 |
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Published in : The News, Delta Sites |
All types of structured credit products soon came under suspicion. Issuance of asset-backed commercial paper declined sharply beginning last summer. Although some of that paper Forex Trading Made E-z was backed by mortgages, not all of it was. But that didnt seem to matter. The market for auction rate municipal bonds was also hit, as doubts spread regarding the financial health of the misnamed monoline insurers. Investment banks also experienced abnormal difficulties in the usually routine task of syndicating their leveraged loans in the private equity sphere, which is fairly remote from the mortgage industry, to say the least.
The banking industry was smack in the middle of this maelstrom. This sector is of obvious importance to the Federal Reserve. Not surprisingly, large losses have been recorded at some of the largest banks. Their capital ratios are also under pressure from the fallout in the securitization markets. The difficulty in selling loans and the increase in lending to borrowers who were shut out of the securitization markets have increased banks exposure. In addition, some banks that offered off-balance-sheet commitments to their structured investment vehicles, or SIVs, have found themselves having Forex Trading Strategy to move these assets onto
Last update: November 19, 2008 06:14 AM
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US Economy and Globalization Part 10 of 17 |
| By Webmaster,
on November 18, 2008 03:28 PM
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Views : 6 |
Favoured : 2 |
Published in : The News, Delta Sites |
Second, price pressures at the margin are compounded by noncommercial activity in the markets that trade oil. Noncommercial contractsthe busywork of the "city refiners" in the financial exchanges in London and other placeshave been running at triple their traditional Forex Essentials volume lately.
Prices for gasoline and distillateswhere the pass-through rubber hits the consumer price roadare starting to inch up in response. Our retail gasoline price models at the Dallas Fed envision pump prices above $3 a gallon for the foreseeable future if crude stays above $85. Price pressures for other distillates are also becoming increasingly probable. And last, high inventories continue for natural gas, but it is noteworthy that prices have reversed their summer slide downward to $5.50 per million BTU and are now quoted at $7.15 at the Henry Hub in Louisiana, the key metric point for the U.S.
All this gives me a sense of discomfort on the headline inflation front, and it is a reminder that the balance of risks is not skewed unilaterally toward slower growth. This Trend Dynamics is not to say I expect inflation to veer out of control. But rather, it means that we must remain far from smug on the
Last update: November 18, 2008 03:28 PM
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