Words of wisdom, as usual, from my man Jim Rogers.
"Protectionism is getting worse and worse. I'm terribly worried about because protectionism lead to the Great Depression... I'm worried about a lot of things. A 50% rise in 6-9 months is something to worry about. You usually have corrections after that.
Showing posts with label global recession. Show all posts
Showing posts with label global recession. Show all posts
Tuesday, September 15, 2009
Thursday, April 23, 2009
Does anyone really care what the IMF thinks?
Apr 22 (Retuers) - For the first time since the end of World War II, the International Monetary Fund is projecting that the world economy has fallen into a severe recession.
IMF statistics are widely used when proving a point in journalism, academic research or any other type of report. There are a handful of sources to turn when you need a legitimate source and the IMF's wonderful website is one of them.
It's full of statistics, economic research, news and pages dedicated to just explaining to you what the heck the IMF does... sounds like a exhilarating experience no?
There is already a raging debate among academics, economists and politicians if the good produced by the IMF outweighs the bad.
You don't see IMF economists, moving markets with their speeches on major news networks.
This is because they don't and they can't. When it comes down to it the IMF has true little power to influence momentum in markets. Financial markets don't care about what the chief economist at the IMF thinks or says because anyone in the business probably has a research department in their company that has already come to the same conclusion. Heck, I could have Googled what these IMF guys said in this Reuters video.
Friday, March 13, 2009
Thursday, March 12, 2009
The videos which lead up to... John Stewart tells it like it is and rips Jim Cramer a new one
In Cramer We Trust - Comedy Central
Sunday, February 22, 2009
Trouble for Mexico's oil sector
Petroleos Mexicanos (PEMEX), Mexico's state oil conglomerate said on Friday, crude oil output fell 9.2% in January.
Cantarell, one of Pemex's largest oil fields and the third largest in the world, saw output plunge at its fastest rate in over 14 years. Pemex says the field is currently producing around 772,000 barrels a day, down a whopping 38% from a year earlier.
Pemex's overall production fell to 2.885 million barrels a day, down from 2.957 million barrels a year earlier.
“If the question is, what is Pemex going to do in the short-term to prevent the falling production?” George Baker, a Houston-based energy consultant who publishes the newsletter Mexico Energy Intelligence, said in an interview. “I’m afraid the answer is nothing.”
On a positive note, Pemex's natural-gas output rose 8.5% to 7.091 billion cubit feet in January. Too bad natural-gas fell below $4 per million British thermal units for the first time in more than six years (see this Bloomberg article for more)
All in all, Pemex and more importantly the country of Mexico need to re-align their economy away from the oil sector. This has proven rather difficult in the past, as it has as well in other Latin American country's which rely too heavily on a particular basket of commodity exports.
The current global recession is once again evidence of how dangerous a commodity focused growth strategy in reality is.
For Mexico, the situation is even more dire. Crude oil and natural gas, as you can see below (and have probably heard) are not selling for what they used to.
Close proximity to the US, heavy reliance on money from relatives working in the US, a declining oil industry and the general erosion of their competitive edge in manufactured goods because of the rise of Asia put Mexico in a particularly difficult situation.
I in no way consider myself a expert on Mexico. As a matter a fact, I have purposely left Mexico out of much of my academic writing due to the unique Macro-Economic conditions facing the country. Check out this site for a great read on Mexico (http://mexfiles.net/).
Cantarell, one of Pemex's largest oil fields and the third largest in the world, saw output plunge at its fastest rate in over 14 years. Pemex says the field is currently producing around 772,000 barrels a day, down a whopping 38% from a year earlier.
Pemex's overall production fell to 2.885 million barrels a day, down from 2.957 million barrels a year earlier.
“If the question is, what is Pemex going to do in the short-term to prevent the falling production?” George Baker, a Houston-based energy consultant who publishes the newsletter Mexico Energy Intelligence, said in an interview. “I’m afraid the answer is nothing.”
On a positive note, Pemex's natural-gas output rose 8.5% to 7.091 billion cubit feet in January. Too bad natural-gas fell below $4 per million British thermal units for the first time in more than six years (see this Bloomberg article for more)
All in all, Pemex and more importantly the country of Mexico need to re-align their economy away from the oil sector. This has proven rather difficult in the past, as it has as well in other Latin American country's which rely too heavily on a particular basket of commodity exports.
The current global recession is once again evidence of how dangerous a commodity focused growth strategy in reality is.
For Mexico, the situation is even more dire. Crude oil and natural gas, as you can see below (and have probably heard) are not selling for what they used to.
Close proximity to the US, heavy reliance on money from relatives working in the US, a declining oil industry and the general erosion of their competitive edge in manufactured goods because of the rise of Asia put Mexico in a particularly difficult situation.
I in no way consider myself a expert on Mexico. As a matter a fact, I have purposely left Mexico out of much of my academic writing due to the unique Macro-Economic conditions facing the country. Check out this site for a great read on Mexico (http://mexfiles.net/).
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