Archive - Aug 6, 2010

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 06/08/10 (US Nonfarm Payrolls Special)

Good thing humans don't eat or use energy or else the highly "accurate" core CPI, courtesy of the draught and harvest catastrophe in Russia, causing wheat prices to literally take off, might actually reflect reality for once. A closer look at the consequences of the grain export collapse in the third biggest exporter in the world: "Russia’s domestic prices rose even more within the last 30 days. In addition, on August 5, Russia announced a ban on grain exports through year-end, effective August 15. This should help contain further domestic price gains, but may send global prices even higher. J.P. Morgan’s commodity team expects that any meaningful decline in prices is unlikely to occur before late 2010, but wheat prices are forecast to recede to below $6/bu in 2011, as higher prices now are likely to promote increased global planting."

The mass media’s way of communicating war is basically to put fake tough-guy narcissists on your TV screen speaking to the equivalent of a pre-oedipal 2 year old: “there are scary people out there…you need to be terrified…heroic saviors will attack and destroy their bad countries for you so you can maintain your mental fantasy that you’re safe. All you need to do is keep shopping, buying your little toys, while daddy keeps you safe.”