Although Kraft and Starbucks each has found new partners after their bitter breakup, surging prices of coffee (34-year high) and sugar (30-year high in Feb.) could bring margin and cost pressures in the food and coffee sector.
Has anything really improved?
Now that the global financial system is down to living literally auction to auction, with negligible available cash and deficits as far as the eye can see, not to mention a European continent living day to day on the whims of either political extreme, issuance of government paper, and particularly its proper uptake, takes takes on a especially significant role. Below we present not only Goldman's summary of the key events in the past week as well as those in the next 5 days, but a bond auction schedule, together with a POMO summary, for the next two weeks.With everyone selling as much paper as they can wet away it, not even the global central banking cartel selling unlimited long term puts on the worldwide treasury curve will do much to prevent the upcoming global yield tsunami.
While the Japanese nuclear crisis might upstage the Gulf crisis, it hasn't gone away...
One should expect to consider political risk as a much greater part of the equation when investing in mining stocks in coming years. So where are the riskiest mining jurisdictions in the world and where are the safest?
Central Banks Favour Gold and AAA Rated Government Debt – Reserve Currencies of EUR and USD QuestionedSubmitted by Tyler Durden on 04/13/2011 07:07 -0500
Stocks are higher in Europe after gains in Asia despite losses on Wall Street yesterday. Gold and silver are showing tentative gains after 1% declines yesterday. With America set to have the largest budget deficit of any of the developed economies, a whopping budget deficit of 10.8pc of GDP this year alone, gold and silver’s medium term prospects remain positive. The IMF has warned that the U.S. lacks credibility regarding its debt and must implement stringent austerity measures. This is one of the primary factors which strongly suggests that, contrary to the consensus, a double dip recession looks increasingly likely in the U.S. This would be negative for the dollar and US treasuries and lead to higher gold and silver prices due to safe haven buying. Central banks are questioning the dollar and the euro as reserve currencies due to the massive liabilities and debt levels confronting the US and the Eurozone (see News below). This is set to lead to central banks continuing to be net buyers of gold for the foreseeable future
Nixon had his commerce secretary, Peter G. Peterson (he of enormous wealth these days), promise far reaching and revolutionary “initiatives” to tame our thirst for oil. But Nixon was out of office before these palliatives were revealed. Gerald Ford, caught up in vicious inflation, partly linked to the cost of oil, launched the Energy Research and Development Administration (ERDA), combining the Atomic Energy Commission, the Office of Coal Research and other energy entities in the federal government. ERDA initiated many programs, while politicians invoked the Manhattan Project and the Apollo 11 moon landing. But the search for the Fountain of Eternal Energy failed. Jimmy Carter wanted not only to solve the energy challenge, but to be seen to be solving it. Ergo, he expanded ERDA into the Department of Energy (DOE) and created a separate Synthetic Fuels Corporation. The latter failed after a short and unhappy life. No oil reached the pumps. When the price of oil collapsed in the 1980s, so did hopes for many of the alternative energy sources, including ocean thermal gradients and flywheel energy storage. To its credit, though at great cost, DOE, through its chain of national laboratories, kept searching. The result has been evolutionary improvements in many fields, and some really revolutionary ones in how we find oil and drill for it; these include seismic mapping, new drill bits and horizontal drilling. These evolutionary developments brought more oil to market and have contributed to the recent improvement in domestic production that Obama likes to point out. It has enabled us to cut our imports slightly, so they now stand at 11 million barrels per day out of consumption of 20million barrels per day.Obama wants us to cut those imports by a third. To do this, he has no magic bullet.
It’s a scam folks, it’s nothing but a huge scam and it’s destroying the US economy as well as the entire global economy but no one complains because they are "only" stealing about $1.50 per gallon from each individual person in the industrialized world.
An 'important' voice has just advocated default on federal debt. I think he's a fool.
A few days ago Transocean stunned every sapient creature (with a memory just a little longer than that of momos chasing every up and downtick of Travelzoo stock) in the world after it announced it had achieved an "exemplary" safety record last year as measured by its total recordable incident rate and total potential severity rate, which in turn justified executives' safety bonuses. For those who may have forgotten last year's unprecedented Gulf oil spill, this is comparable to TEPCO announcing next year that management will receive record bonuses due to the company's unprecedented ability to avoid hazard, not to mention nuclear power plant meltdown and recriticality. Luckily, it only took a few days for the firm's PR division to realize someone may get very angry with the company's spin of events, and as Reuters reports, the company has "acknowledged that its description of 2010 as its "best year in safety" despite a blowout that sank one of its rigs, killing 11 workers and causing a huge oil spill, might be insensitive."
Silver Set For All Time Record Quarterly Close - Gold To Silver Ratio On Way To 17 To 1 As Per 1980?Submitted by Tyler Durden on 03/31/2011 06:27 -0500
‘Poor man’s gold’ is set for a record nominal quarterly close which will be bullish technically and set silver up to target psychological resistance at $40/oz and then the nominal high of $50.35/oz . Silver’s record quarterly close was $32.20/oz on December 31st, 1979. While silver is up 22 percent this year and is heading for a ninth straight quarterly advance, its fundamentals remain very sound. With gold above its nominal record of 1980, poor man’s gold continues to be seen as offering better value. To the masses in India, China and Asia, silver is the cheap alternative to gold and an attractive store of value and hedge against inflation and debasement of paper currencies. Increasing global investment and industrial demand in the very small and finite silver bullion market is a recipe for higher prices. Thus, as we have long asserted the gold silver ratio is likely to revert to its long term average of 16 to 1. A return to a ratio of 16 to 1 is likely due to basic supply and demand and the geological fact that there are 16 parts of silver for every one part of gold in the earth’s crust.
The president is due to address America's energy "security" any minute now. We wonder if he will address the fact that OPEC is set for a bumper export year, generating profits of over $1 trillion for the first time ever. Of course, that is money that will have to be recycled back into US bonds so it is bullish.
Government Responds to Nuclear Accident by Trying to Raise Acceptable Radiation Levels and Pretending that Radiation is Good For UsSubmitted by George Washington on 03/29/2011 13:17 -0500
We've always been at war with Eastasia ... and plutonium has ALWAYS been good for us!
The time is now to collectively fight back. We can work together to demand that the big banks are held accountable for their crimes.
Highlights from the just released speech by Philly Fed hawk Charles Plosser:
- Fed's Plosser says would want to make explicit the Fed's commitment to a numerical inflation objective
- Says important to communicate a systemic plan that describes where Fed is going, how it will get there
- Says his proposed strategy would tie pace of asset sales to size of interest rate increases
- Says his preferred exit strategy would raise rates, shrink balance sheet concurrently
- Says failure to exit in timely manner will have serious consequences on inflation, economic stability in future
- Says monetary policy will have to reverse course in the not too distant future
- Says consumer spending continues to expand at reasonably robust rate
- Says US economy seems to be on much firmer foundation
- Says labor market conditions are improving
In other words, an attempt to return confusion over the fate of QE3. As for the Fed existing anything.... good luck. As part of his exit proposals, Plosser proposes two exit plans (12 and 18 months) both of which sees a dramatic reduction in reserves, a hike in IOER, and asset sell offs. Should the Fed indeed proceed to do this, the market will prolapse.