Archive for the ‘El Niño and La Niña’ Category
If the IMF is asked for funds from the EU, it won’t have enough resources for the rest of the worlds emerging markets if there is a contagion.
The fiscal situation in the EU’s GIIPS countries is not good, but it’s not like they were jewels to begin with, they’ve battled these problems for decades, even centuries.
The ECB must resolve this. Today, there exists a real possibility that the EZ might just break apart and countries would return to multiple currencies.
The ECB must stop the meltdown by buying GIIPS bonds as needed.
One, politics in Europe are local, not “European.”
Two, monetary, fiscal, and labor policy are at the core of the problems in the GIIPS.
Third, The EU had better identify itself and make its presence known- finally.
It is her “fight or flight” moment. The Entire EU hangs in the balance, and coupled with that the US economy. Sovereign debt and negative growth are actually spreading.
Mr. Monti and Mr. Papademos must play a role in tightening the fiscal policies and make the structural reforms needed. These technocrats, should provide a positive step in increasing pro investor policy.
The human cost to natural disasters like the one in Turkey weeks ago include injuries and temporary and permanent disabilities, temporary and permanent displacement of people, increased poverty and disease, and psychological scars. In addition Economic costs, based largely on direct infrastructure or losses of fixed capital and inventory, are also underestimated. Many indirect effects on economic activity include long-term consequences of the reallocation of investment resources, and the loss in human capital. Over the past year the incidence of natural disaster has increased.
The El Niño and La Niña events, associated with anomalous floods, droughts, and storms, are getting larger and more frequent.
In fact commodity producers are already bracing for another La Niña, a weather phenomenon that wreaked havoc earlier this year on commodities markets, sending prices to multiyear highs. La Niña is a shift to cooler than normal temperatures in the Pacific Ocean, causing above normal rainfall in south-east Asia and northern and eastern Australia, and an increase in tropical cyclones. Here in the USA, our Pacific Northwest and Northern Plains are wetter while the southern states face a lack of rain. In South America the heavy rains threaten coffee, corn and soybean production. India experiences an increase in monsoons, threatening their iron and ore. South East Asia and Australia experience heavy rains that destroy the harvests of rubber, palm oil, coal, wheat, and sugar. The change in the elements has a huge impact on commodities production.