World Economic News (Mon 14th. Feb ’11)

  By Mystic | February 13, 2011 - 10:58 |

World food prices, US 10year chart, Japan 10year chart, EMRatio, Prepare for a crash.
[audio:http://overthepeak.com/wordpress/wp-content/uploads/2011/02/Mon14Feb.mp3|titles=Mon14Feb]


Links – 1. 2. 3. 4. 5.

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Written by: Mystic on February 13, 2011.
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  • Anonymous

    Employment % at near 30yr lows, consumers loaded with debt and coupled with wages not rising
    in real terms….. Food prices rising….

    Doesn’t leave much room to maneuver…..

    • http://overthepeak.com/wordpress/ Mystic

      No.
      That is why they are giving `standing in the corner and not moving` a try.

      • http://maxwellsrepublic.tumblr.com/ maxwell

        we’re raising prices and wages where I work… we’ll see how long we can keep this up… the company stock has been solid though. I think its an industry trend… at least among big multinational corporations.

        • Anonymous

          Come on Maxwell, give us a clue….
          Which company do you work for…??? :)

          • http://maxwellsrepublic.tumblr.com/ maxwell

            it starts with an I. thats all you get.

  • Axel

    Well, would one credit it! The’ FOA Food price index’ chart looks very similar to the Oil Price chart in the link below:-

    http://en.wikipedia.org/wiki/File:Brent_Spot_monthly.svg

    I think if one adjusted for crop failures and wars, the correspondence would be remarkable.

    • http://overthepeak.com/wordpress/ Mystic

      Yes, oil may be at the bottom of most everything.

  • Wvolson

    Made Sense to Me! Thanks for the Video!

    • http://overthepeak.com/wordpress/ Mystic

      That is alright Wv…….my pleasure.

  • http://maxwellsrepublic.tumblr.com/ maxwell

    #5 – I think this is an interesting article and I have read some other rumblings about this actually. Some of those calling for a long shot on hyper inflation believe this sort of thing may just be the catalyst. Debt doesn’t actually matter, we agree on that I think, but then what may happen in reaction to these current events could cripple the debt markets…

    I point this out because its not the actual debt that is an issue. If yields rise, what happens? I think we have seen the compounding effect of interest in our debt markets, so what happens if rates shoot up. The rest of the world must be interested in our current system, since we in America seem to have the bloody hammer. We decide on the liquid markets, don’t we? Since everything is relative to the dollar, wouldn’t it make the most since? If banks can “poof” out the money, then we may also see an opposite reaction. I’m simply thinking out loud here, but I would imagine that this could be very bad for the inflation rate and/or dollar denominated valuations.

    I think Canada can sell us oil still, but they can demand more of our funny money and we borrow all of it (ie create it all) so then the lenders can also demand higher rates… then it all just gets completely ridiculous because of the compounding…

  • badgerwhacker

    test

    • http://overthepeak.com/wordpress/ Mystic

      No, I don’t think that test worked~!

  • rassillon

    Japanese citizens had a large amount of savings, US doesn’t.

    Not productivity and unit labor costs but instead fierce competition to get the tightly held consumer dollar “demand down”. Later….still not unit labor costs but “what the market will bear” as consumer spending becomes looser “demand up” and or competition is driven out of business “supply down”. Anyone who has been involved in business for a long period of time will have experienced this. I will coin the term “want > or < have = +/- have" since so many misunderstand "supply and demand"

    • Axel

      A test to see
      if whacker he be
      on overthepeak,
      by mister 3.

      • Axel

        Ooops!
        That message should have gone to badgerwhacker below.

        • Anonymous

          Oh yeah!
          I suppose your excuse was that someome other DISQUS user already registered the name Axel, and therefore you could not edit the post!

  • Anonymous

    Reduced labor costs could reduce prices UNLESS the business is so deep in debt that it takes almost all of the saving just to make payments or make up for shinking availability of revolving credit AND whatever is left over is passed on the the senior owners in the form of fantastic executive bonuses instead of being used to reduce prices.