tag:blogger.com,1999:blog-5713178645208582139.post1947032067290756875..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: The Next Big Bubble?David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5713178645208582139.post-43008863094688225842008-08-25T17:11:00.000-05:002008-08-25T17:11:00.000-05:00The USDA has estimated that in 2007 24% of the tot...The USDA has estimated that in 2007 24% of the total U.S. corn crop was used to produce ethanol. When adjusted for exports, 29% of non-export corn was used for ethanol. That is expected to grow to a full 1/3 used for ethanol in 2008. Ethanol is the fastest growing end use for corn. Here is a link to the graph:<BR/>http://bp2.blogger.com/_7NrAt8xGd0E/SC25ckjZ8wI/AAAAAAAAAuc/RrajGvub7HM/s1600-h/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-50127367738846234212008-04-21T22:40:00.000-05:002008-04-21T22:40:00.000-05:00The increase in food costs is also due to the stup...The increase in food costs is also due to the stupdity of Al Gore's global warming baloney and therefore the need for ethanol as a fuel which just serves to raise food prices, causes starvation in poor countries and doesn't do anything for energy. It's the law of unintended consequences at work. Now we're paying higher prices for fuel and food.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-82795355843050573792008-04-21T22:37:00.000-05:002008-04-21T22:37:00.000-05:00First stocks burst, then real estate, next it will...First stocks burst, then real estate, next it will be commodities.<BR/><BR/>As far as China is concerned they're screwed too, if the USA isn't buying all the stuff they make.<BR/><BR/>We've just set the stage for a world wide recession this time.<BR/><BR/>Maybe someday it won't be this way, but for now when the USA gets a cold the rest of the world gets a fever. We are the world's biggest Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-68915385984923888042008-02-22T23:03:00.000-06:002008-02-22T23:03:00.000-06:00Yes, I got the graph from The Oil Drum, your one-s...Yes, I got the graph from <A HREF="http://www.theoildrum.com/" REL="nofollow">The Oil Drum</A>, your one-stop source for energy doom and gloom.<BR/><BR/>[If you want to explore troubled economic waters, just consider the fallout of energy supply not meeting energy demand.]<BR/><BR/>I can't speak for all commodities, but it certainly seems like the increase <A HREF="http://www.iht.com/articles/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-20725407164617838702008-02-22T10:03:00.000-06:002008-02-22T10:03:00.000-06:00This is really quite easy to explain. We are in a...This is really quite easy to explain. We are in a liquidity bubble caused by financial deregulation and financial innovation of liquidity producing instruments and practices. As long as the global inflation trade is producing results, Wall Street traders will play a disproportionate role in ramming hard assets. To those who say the markets are working as they should.....well.....it is true Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-46592620514878992372008-02-22T08:28:00.000-06:002008-02-22T08:28:00.000-06:00Brian, the 'presumably' part is key. If the world ...Brian, the 'presumably' part is key. If the world economy is slowing down then global economic demand should be weakening too. In turn, the demand for oil should slow down as well. So there is a big 'if' here, and it may be the case as James Hamilton argues that the global economic outlook is improving. See this <A HREF="http://www.economist.com/daily/news/displaystory.cfm?story_id=10733130&David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-24482987867169141932008-02-22T00:20:00.000-06:002008-02-22T00:20:00.000-06:00Oil and other commodity prices continue to rise ev...<I>Oil and other commodity prices continue to rise even as global demand is presumably slowing down.</I><BR/><BR/>I don't know about other commodities, but thus far <A HREF="http://i129.photobucket.com/albums/p237/1ace11/08fig1r.gif" REL="nofollow">I haven't seen much evidence</A> that world oil demand has fallen off much.Anonymousnoreply@blogger.com