Category Archives: International

Business/Economics, International, U.S.

Commodities crashing? More signs that there is no economic recovery

The cost of living in the U.S. rose at its fastest pace since December 2009 in the year ended in March, the same month when Chinese consumer prices rose by the most since 2008.-Bloomberg report

Rising commodity prices can bring inflation.  Commodity prices go up when there is an expected higher demand than supply (or speculators playing the market).  Today, May 5, commodity prices are falling.

Some people blame an increase in the value of the U.S. dollar, but has it really gone up that much? When the U.S. dollar is up, it makes commodities that much more expensive on the world market, because commodities are traded in U.S. dollars: “The common denominator for all the commodities selling today is the strength of the dollar.”-Bayram Dincer, LGT Capital Management Ltd

Others are pointing out that commodity traders are realizing that the world’s economy is still bad, and that the average person can’t afford to pay higher prices.  That means demand will go down.

If you buy commodities (oil, gas, metals, food stuffs, etc) why bid higher when there’s a good change you can’t sell it on the retail market?  Some analysts think this will be the crash of the commodities (which is a good thing for us little guys): “This could be one of the most severe corrections that we’ve seen over the last year. If things get really bad, we could possibly retrace half of the rally of the past six to nine months.”-Sean Corrigan, Diapason Commodities Management SA

How about the fact that a little known company, Glencore, who turns out to have a lot of say in the commodities market, has told their clients to be “underweight” when it came to commodities.  Glencore expects prices to actually go up in the next 12 months.  Being “underweight” means to sell off your investments, so maybe what we’re seeing is an intentional, and temporary, sell off.  A sell off would drive prices down.

 

Business/Economics, International, Opinion

Oil prices drop, suddenly there’s a new oil disaster, big pipeline leak in Canada

Ever since the supposed raid to kill bin Laden was announced, oil prices have been falling.  In fact, May 5, oil is about $99.00 per barrel for WTI.

Guess what, now there’s a huge leak in a big oil pipeline in Alberta, Canada.  How convenient.  Not only that, but officials who control the Plains Midstream pipeline claim the leak started on April 29!  So far, 4.5 million liters (1.2 million gallons) of oil has leaked out.

Business/Economics, International, U.S.

Who’s behind high commodity prices? Glencore, ever hear of them? Call them food crisis managers

Glencore is a private company in Switzerland.  The company is valued at $60 billion.  What do they do?  Buy and sell commodities.

Glencore is the world’s biggest commodities trader, buying and selling much of the world’s wheat, corn, rice, sugar and edible oils. They also buy and sell minerals; metals, oil, coal.  In fact they control 3% of the world’s daily oil supply.

Because Glencore is a privately held company, no one has heard of them.  Why are they in the news now?  Glencore wants to become even more powerful, so they are going public, offering public stocks in their company for the first time.  For those of you who think ,”If you can’t beat ’em, join ’em.”, the public stocks offering will take place at the end of May, in the London and Hong Kong stock markets.

Glencore has on it’s board some controversial people, including people with their hands in the pockets of U.S. politicians, so do your research.

 

Business/Economics, International, U.S.

Kraft moving chocolate production to Brazil?

The U.S. doesn’t need to lose anymore jobs, but Kraft just announced they will build a new plant in Brazil.

“Brazil is one of 10 priority developing markets where we’re making big bets. Today, we’re among the fastest growing consumer goods companies in markets like Brazil, India and China. We’re excited to build on what’s working by making our biggest investment in Brazil in more than 10 years!”-Sanjay Khosla, Kraft Foods

Kraft will build an $80 million chocolate factory in Pernambuco, Brazil.  They hope to have it up and running by 2012.

Business/Economics, International

Germany to pump more money into Mexico

Despite the bloody Drugs War, German companies are about to invest more money into Mexico.

German President Christian Wulff wants to increase business relations with Mexico.  Already there are 1,200 German operations in Mexico, employing 130,000 people.  Wulff also implied that Germany will help the Mexican government in their Drugs War.

Germany has historically been interested in relations with Mexico, this could be a sign of the declining influence of the United States.

Business/Economics, International

WalMart business down in U.S., but booming down south of the border

“Our expansion plan will continue to support the socioeconomic development of the Brazilian population. The focus in formats aimed at the emerging middle class will be even stronger in 2011.”-Marcos Samaha, president of WalMart Brazil

Recently WalMart officials expressed their concerns for the poor U.S. retail market.  They blame inflation and lack of jobs.  But, WalMart is spending big money in Brazil, ’cause the economy is boomin’ there.

Brazil is one of the money making members of BRICS (Brazil, Russia, India, China & South Africa).

WalMart is going to open 80 new stores in Brazil, and spend R$ 1.2 billion in the next year (R$ = Real, the Brazilian money).   In the past five years, WalMart has already invested R$ 6 billion, constructing 177 stores and creating 25,000 jobs in Brazil.

International, Technology

Like Bananas? They might become extinct no thanks to Black Sigatoka, more food crisis woes

Ecuadorian scientists want to create a genetically modified Banana.  They say it’s the only way to keep Bananas in their country from going extinct.

“…something that we can be sure of is that the Sigatoka will not lose its battle.  As soon as we can get a new fungicide, the disease becomes more resistance. Replacing the Cavendish banana (dominant variety today) for another type, by genetic engineering, is the only answer.”-Emile Frison, International Network for the Improvement of Banana and Plantain

Apparently the use of fungicides has resulted in a super fungus that is resistant to chemicals.  Ecuadorian officials are warning against using too much fungicide.

Another motivator for a GMO Banana, is competition.  Farmers say they just can’t make enough money on each box of Bananas,  mainly because of the cost of fighting the fungus Black Sigatoka.

International, Opinion, U.S.

Obama administration flip flops on bin Laden raid info, bin Laden’s daughter says he was killed AFTER capture

Ever since the announcement that Osama bin Laden was dead, the Obama administration has been flip flopping on the details.

First they said bin Laden was killed in a fire fight.  Then they said he was resisting, but not armed (how does a sick 54 year old man resist without weapons?).  They said he used a wife as a human shield, they flopped and said she willingly rushed at the U.S. forces.  First they said she was dead, now she was just wounded in the leg.

What’s up Obama?  I thought you guys watched the whole thing live?  You issued a pic of your cabinet supposedly watching the event live?

Now Pakistani officials say Osama bin Laden’s young teen daughter witnessed the whole thing and says her father did not resist, and that U.S. forces killed him AFTER they got him on the helicopter.  Is this the real reason they dumped his body in the ocean, to cover up how he was killed?

“Not a single bullet was fired from the compound at the U.S. forces and their choppers.”-Pakistani security official

Pakistani officials, and locals living in the area, say only the U.S. forces were doing the shooting, no shots came from anyone in the bin Laden compound.

Here are the latest statements from Obama’s officials: “…rushed the U.S. assaulter and was shot in the leg but not killed.” “Bin Laden was then shot and killed. He was not armed.” –White House Press Secretary Jay Carney