[ennui2]

http://thegreatrecession.info/blog/black-swans-economy/
http://www.infowars.com/plunging-manufa ... l-economy/
Two articles on problems with US and the World economy

Seriously, you're gonna link to infowars? Come on, man. Spend at least a few seconds vetting your sources before you appeal to crap like infowars as an authority.

[onlooker]

so what am I supposed to do go to MSM media , I don't think so. We all can believe what we want and the Net can confirm that for us. You wish Ennui to believe a rosier version of things fine that does not make it the reality.

[onlooker]

Oh and Ennui if you also had bothered to look, the original story is from Michael Snyder of the Economic Collapse blog. Also, notice that Washingtonsblog has ran with this story can you get more mainstream than that. http://www.washingtonsblog.com/2016/03/ ... onomy.html

[ennui2]

Then link to that and don't give that douchebag Alex Jones any more of an overinflated sense of importance than he already has.

[onlooker]

Then link to that and don't give that douchebag Alex Jones any more of an overinflated sense of importance than he already has.

In fairness hearing him speak he does seem to be a doomer version of Rush Limbaugh in fact doesn't he look like him a little?

[dohboi]

http://www.bloomberg.com/news/articles/ ... e-year-low

World's Food-Import Bill Just Shrank $9 Billion to Five-Year Low

The world’s food bill just fell $9 billion from a previous estimate as a glut of oil and ships cut transportation costs, adding to an oversupply of everything from grains to sugar, according to the United Nations.

The beginnings of a deflationary spiral?

[dolanbaker]

Food prices are dropping because of last year's drop in oil prices making agriculture cheaper to run.
Those price drops had to eventually go through the system.

[dolanbaker]

I was responding to the cost reduction, rather than the volume drop.
Farmers are not going to produce more than they can sell, otherwise it goes to waste,

[dohboi]

My reading of the article is that it is cheaper to get products to market, so more products are getting to their markets, only to find that the market is already saturated.

Maybe, just maybe, I got that impression from the very sentence I quoted above!!!

Here's the relevant part for you again, in case you're having trouble with attention disorder issues:

a glut of oil and ships cut transportation costs

ETA: good point, dolan

[ennui2]

I was responding to the cost reduction, rather than the volume drop.
Farmers are not going to produce more than they can sell, otherwise it goes to waste,

Funny how simple logic like this eludes Pstarr. He's too busy mocking me as his strawman to really think these things through.

[dolanbaker]

I was responding to the cost reduction, rather than the volume drop.
Farmers are not going to produce more than they can sell, otherwise it goes to waste,

So in those last two years (2014--2105) that agriculture production dropped, the planet added 160 million people. Yet demand/supply is down because fuel is cheap? Folks, do we see a problem yet? No. oh well.

ennui, you are an after thought.I will continue to mock you as long as you'd like lol

It's the monitory value of the produce that has dropped, there isn't anything in the article that says that the quantity of produce has dropped, there could even be an increase in the quantity and the value will still be lower.
In simple terms 1000 apples = €100 and if the production costs drop 1050= €90, are you looking at the quantity or the value.

[americandream]

The global market is an interrelated unit. So volatility in one corner affects the entire market as the network around which it revolves frays. The ME with its current dislocation is affecting a whole swathe of sectors worldwide with knockon effects all across the globe. Added to this, the Saudis have seized the opportunity to take out competition and thus you have the strange spectacle of an energy glut in a global economy out of sync.

This is sort of good in a way as the global economy weans itself off Saudi dominated Islam and establishes a more secular network. This in turn will compels Muslims to adapt in order to regain entry. Volatility will cripple huge swathes of the financial sector granted but that is a price worth paying.

[americandream]

Think of it like this. With Libya, Iraq, Syria, Yemen and counting falling out of the commodities import sector, countries such as NZ (its dairy sector especially) are taking a hit for the moment. Iran has come back on stream but unlike the ones I mentioned, is much more innovative and less dependent, is undergoing reform and thus is a WIP.

In a nutshell, post colonial Islam is undergoing a seismic shift in how we trade and profit from them which in turn affects us, and China and all the rest. In this planetary merry go round, new forms of business relationship emerge as countries such as India, Russia and Cuba, (the first two formerly at the mercy of the now hobbled Saudi empire) rise in the ranks, creating new secular opportunities for global capitalists.

All it needs now is for us to formalise the divorce with Islam.

[americandream]

Is that a systemic contraction (fundamental) or a political event (cyclical) though? We will never know with energy (as that is the basis of much of how we pontificate here) as that sector is a mystery reserves wise. We can trying looking at objective price but who is going to or is able and willing to?

So in the final analysis it is my speculation versus yours. That said, there is clearly energy capacity in the system with fracking and shale so I think it is reasonable to assume that we are in another cycle.

[sjn]

This idea that the prices at which commodities are sold is set by the cost of production is a new one for me. It's something that seems to keep coming up. No actual functional (free-)market gives producers a guaranteed price. It's an oxymoron.