Food Price Rise Puts Asia at Risk; Monetary Blockages; Central Planning

September 1, 2012

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“If more of us valued food and cheer and song above hoarded gold, it would be a merrier world.” ~ J. R. R. Tolkien – maybe, but also impoverished

Research:

Study: how top performers turn stress to eustress: ‘Tell yourself that those gut pinches and heart races are good for you — that’s it’. ~ HBR

Spyware used by governments FinFisher can take over IPhones ~ Bloomberg

Demand for grains rises six percent for a ten percent rise income among low income countries (< 1k GNI) and three in lower middle (1-4k) ~ Nomura

  • 73% of Asia ex-Japan’s population is below mean GNI per capita income of $2,985
  • Asian currencies most vulnerable to higher food prices vs overall: Philippines 1st, India and China 4th, Indonesia 9th and South Korea 12th
  • New Zealand, Uruguay, Argentina and Denmark benefit from higher Food prices, more than offsetting negative impact on household consumption.

During 1929 – 1933, the pinnacle of the Great Depression and Dust Bowl, the life expectancy increased by six years ~ BBC – people stopped overeating

"As an asset class, inflation linkers offer a natural protection against such a stagflationary environment"

U.S:

(Bernanke 2008) highlighted the difficulty in obtaining a meaningful gauge for future commodity price movement. ~ amusing

Bernanke calls unemployment situation ‘grave’

printers and central planners alike remain perplexed why printing money, taxes, regulations, and handouts is failing to generate jobs and a healthy economy.

Chart on monetary blockages from @mattmiller1973‘s best guest ~ @joebrusuelas ~ Bloomberg

no mention of misallocations of capital from hiding credit risk, asset bubbles, and bad debt

loans are growing and inflation is here

World:

‘EU Proposes "All Powerful" Banking Committee’- freedom continues to fall, continues its centripetal force towards elite statists ~ Mish

Spain capital outflows rise nearly 40 percent in June ~ Reuters

Australia: Running Out of Luck Down Under ~ Mauldin Economics ~ @johnfmauldin

China:

China exported $58 billion in arms in 2010, imported $3 billion. Thailand and Indonesia notable partners ~ google charts 

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