The Oil and Revolutions

All the Due Course of Revolutions, left high oil prices, this might slow down world wide economic recovery! Hoping we are not going to these revolutions takes a long time, so thus world need to support the legitimate revolutions. Also our attitude toward the oil rich countries, not as pumping gas stations but mutually beneficial relationship both side, this is only possible when these countries have open honest democracy, and their political satiability.  The below is NYT report the the market trend, re:  Oil Prices Rise on Reports of Disruptions in Libya

Here is also International Energy Agency report Fact on Libya’s Oil and Gas  and read more IEA Home page.

Here is a nice article Tom Friedman NYT, about what sort of relationships of rest world and the oily Arabian countries, that has been “a rotten string of gas pumping stations” as they pumped humped… together...

YSK-W

Ground Breaking Food Prices

"Four main factors are seen as driving prices higher: weather, higher demand, smaller yields and crops diverted to biofuels."   Read more…



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Hey You-Human, All Blaming Yourself!

Here is Krugman stuck into another food story; weather, result of YOU! You-human made green house gas is the major disruption of environment, so food price is highjack by environment, origin of disasters are you-human made, so hey you-human, all blaming yourself! Because of bad weather; bad harvest, unable to just-in-time delivery so on…

“While several factors have contributed to soaring food prices, what really stands out is the extent to which severe weather events have disrupted agricultural production. And these severe weather events are exactly the kind of thing we’d expect to see as rising concentrations of greenhouse gases change our climate—“

This one from  his blog

"...But food is a physical commodity, and plays in the financial markets can only move the price to the extent that they affect physical flows and stocks."

Goes with his nice simple exotic model of the market for a physical commodity

Stocking up food at storages and waiting for  the price  goes up but also another cost consider; e.g.  land, utility and labour cost so on, there is life -span  how long food able to be  keep inside storage, even grain also, it would be short period time,   remember most of food is “JIT” delivery is important,  is not same as cotton or metal.  

Here is another things to read


Here and Here relations of CO2, from Barry Brook also interesting article with beautiful pictures goes with clean energy – wastage nuclear --- guarantee 1000 years of clean energy supply for us!

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Sky Rocking Food Prices

Why food price is sky rocking?  Demand and supply simple!  From Prof Krugman blog, it is all about demand and supply, then you know what is the price expect you have to pay what you want! There is always substitute though; e.g. NASA -- Kepler Planet Hunter Finds 1,200 Possibilities for substitute to the earth! We might all migrate another heavenly planet someday, there is always nice weather revolves around human need,  Eden wiht full of  forbidden Apples instead of rotten bananas becase of the nasty Yasi. We all become ETs; our heads are bigger than out limb by adopting new environment. There is always  substitute for sky rocking food prices  for starve!!

So the update result is the  picture below and here read

Here   is also another article interest you.

Friedman’s also the NTY article relation of the Egyptian Revolutions and Middle East political situation.  

YSK-W

Oh-God-We’re-All-Gonna-LIVE!!

This from Prof Krugman’s blog. The correlation  between Inflation and Stock Prices.

"Powerful evidence that the big problem is demand, not structural -It’s easy to find a correlation between two macro variables, as the same sort of factors (inflation, output growth, interest rates) tend to affect all sorts of financial and macro variables." Sumner says.

“…Regressions between 2003 and 2010 of the daily percentage change in the S&P 500 on the TIPS spread measuring inflation expectations show little correlation between asset prices and expected inflation from 2003 until early 2008. However, since early 2008 the correlation between changes in stock prices and in inflation expectations has been strongly positive and statistically significant.” Glasner says

“…stock prices have had a positive correlation with expected inflation since 2008, strongly suggesting that aggregate demand is at the heart of our problems."  Krugman says.

The below picture is the time-varying correlations S&P Index 500 v DGS10-DFII10 as:

All of them are sing their beloved Kenyan aggregate demand as to their Parrot mantra! So what we see in here Oh-God- we’re –all-gonna -live Oh-God- we’re –all-gonna -live. I say.

YSK-W