China May Have to Resume US Soybean Purchases in Weeks

By Thomson Reuters – Re-Blogged From Newsmax

China may have to start buying U.S. soybeans again in coming weeks despite the trade war between the two countries as other regions cannot supply enough soybeans to meet China’s needs, Hamburg-based oilseeds analysts Oil World said on Tuesday.

In July, China imposed import tariffs on a list of U.S. goods, including soybeans, as part of the trade dispute with the United States. China is the world’s largest soybean importer and has been seeking alternative supplies, especially in South America, where supplies available for export are down.

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2018 Third-Quarter Forecast

Re-Blogged From Stratfor

Table of Contents

(ALY SONG-POL/JOHANNES EISELE/HULTON ARCHIVE/MLADEN ANTONOV/TIMOTHY A. CLARY/ABID KATIB/KATJA BUCHHOLZ/DAVID MCNEW/ATTA KENARE/FOverview

China Remains in the U.S. Crosshairs. The United States will impose tariffs, sanctions and blocks on investment and research in a bid to frustrate China’s development of strategic technologies. China not only has the tools to manage the economic blow, but will also accelerate efforts to lessen its reliance on foreign-sourced technological components.

Trade Battles Fall Short of a Full-Fledged War. Trade frictions will remain high this quarter as the White House continues on an economic warpath in the name of national security. U.S. tariffs will invite countermeasures from trading partners targeting U.S. agricultural and industrial goods. As Congress attempts to reclaim trade authority, the White House will refrain from escalating these trade battles into an all-out trade war.

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Why Argentina’s Leader Is in for a Tough 2019

Re-Blogged From Stratfor

Highlights

  • Argentina’s request for a standby loan from the International Monetary Fund will force the country to carry out tighter fiscal measures, such as reducing the transfer of funds to the provinces.
  • As a result of his decision to negotiate a deal with the IMF, President Mauricio Macri will have a more difficult time gaining congressional support for economic and labor reforms.
  • Although divisions persist in Argentina’s political opposition, worsening economic conditions will encourage Macri’s rivals in the next quarter, hurting the president’s chances of winning re-election in 2019.

State workers demonstrate outside Argentina's Congress in Buenos Aires in September 2016 during a national strike to demand the reopening of wage negotiations to compensate for high inflation.

(EITAN ABRAMOVICH/AFP/Getty Images)

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Inflation: The People’s Enemy…The Government’s Friend

By David Smith – Re-Blogged From http://www.Gold-Eagle.com

We can argue about the definition(s) of inflation until the cows come home – To be sure some economists spend a career trying to nail it down.

But for clarity’s sake, we’ll use the definition of the Austrian School (Mises.org) as an increase in the money supply. This is really the correct one, regardless of any bias of dogma, “schooling” or the mainstream media. Although most everyone defines inflation as an increase in the price of goods and services, this is actually a result.

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Here’s When Everyone Should Have Known That Argentina Would Implode

By John Rubino – Re-Blogged From Dollar Collapse

About a year ago, Argentina – which has inflated away and/or defaulted on its currency every few decades for the past century – issued 100-year government bonds. And the issue was oversubscribed, with yield-crazed developed-world institutions throwing money at the prospect of a lifetime of 7% coupon payments.

A contemporaneous media account of the deal:

Argentina sees strong demand for surprise 100-year bond

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Argentina Joins Venezuela In The Currency Crisis Club

By John Rubino – Re-Blogged From Dollar Collapse

In interviews, whenever I try to make the case that US policies are leading to the kinds of currency disruptions common in developing countries, I say something like, “For a glimpse of America’s future, take a look at Argentina, where they’re eating cats and dogs because of hyperinflation … wait, no, I meant Venezuela.”

Mixing up countries kind of dilutes the power of the statement, but for some reason I can’t seem to help it.

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Hezbollah in South America: The Threat to Businesses

Re-Blogged From Stratfor

Analysis Highlights

South America is a strong base of operations for the Lebanese militant group Hezbollah, which has had a presence in the continent dating back to the 1980s. The group established finance and logistical networks, which it used to facilitate two bombings in Argentina in the 1990s. The first bombing in 1992 targeted the Israeli Embassy in Buenos Aires, killing 29 people and injuring 242 more. A second bombing in 1994 targeted the Asociacion Mutual Israelita Argentina (AMIA), a Jewish community center in Buenos Aires, killing 85 and injured over 300. Since then, Hezbollah has shifted its operational focus from terror attacks to criminal activity to raise money, entering South America’s lucrative drug-trafficking business and dealing primarily with cocaine and heroin. Previously, we explored what Hezbollah now does in South America, and where it does it. Here, we will explore the threat Hezbollah poses to businesses in South America.

(Stratfor)

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