Posts Tagged ‘cotton’

Notes From Underground: WAS BERNANKE HAWKING A HAWKISH OUTLOOK???

June 22, 2011

I feel like I’m the odd analyst out in that Bernanke failed to impress upon me that he is a DOVE in HAWKS’ feathers. Reading the FOMC statement over and over leaves me wondering just what made the statement so strong an anti-inflation stance. The FOMC release reiterated that the FED is relying on closing the output gaps, “including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate for an extended period.” This is not the musings of an inflation HAWK.

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Notes From Underground: In the Spring OLD GLOBAL MACRO TRADERS’ THOUGHTS TURN TO GRAIN REPORTS

March 30, 2011

Thursday brings the Department of Agriculture report on the prospective plantings for the new crop year and the quarterly grain storage report. In today’s WSJ,┬áthere was a piece titled, “U.S. Ethanol Industry May Pare Fuel-Blending Credit.” The readers of NOTES FROM UNDERGROUND know that the ETHANOL SUBSIDIES AND TARIFFS have been a major point of contention for me as I believe that the ethanol price supports have driven global grain prices higher and made a mockery of U.S. trade policy. The article said, “U.S. farmers are poised to increase plantings to take advantage of corn prices.” This is what I have been arguing: The higher corn prices go, the more land farmers take from growing other grains, thus driving beans and wheat and others higher as well. The ETHANOL LOBBY has argued that corn for ethanol is a benign effect … WRONG.

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Notes From Underground: The Long March toward Yuan appreciation–Schumer, Levin, Graham vs. the G-20

June 17, 2010

As we head into next weekends G-20 meeting, the swords of reprisal are being sharpened by the wagging tongues of political expediency. Sander Levin, chairman of the House Ways and Means Committee, is threatening that Congress will move to punish the Chinese for their recalcitrant behavior toward the rebalancing of the global financial and economic system if the Obama administration fails to get China to revalue the YUAN.

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