April 30, 2008
Rising Food Prices!
I got in a cab yesterday and somehow struck up a conversation with the cabbie about quote-unquote rice shortages, rising food prices, and rising energy prices. He seemed to believe it had to do with the government cutting interest rates. For those of you who aren't economists, cutting interest rates creates more lending, thus creating more money, thus creating inflation therefore higher commodities prices. He thought the government was conspiring to debase China's foreign currency reserves (I'm assured he heard this nonsense on NPR) by lowering the rates that would affect the rates they paid on these gov. securities.
I've been saying for too long, much too long, that prices in commodities have been rising for two reasons:
1. The Decline in the value of the US Dollar
Commodities are based in US Dollars and traded globally under our currency. As the dollar continues to decline (as it has been for the last few years) relative to other currencies, commodities that are bought, sold, and consumed all over the world also become relatively more expensive compared to the dollar. While cutting interest rates would create inflation, the dollar's decline is attributable to much deeper issues than simply the change in interest rates, which I assure the FED only exercises to maintain economic growth. This leads me to a reason of much greater importance.
2. Global developing market growth is creating demand...pushing prices up
GDP growth in huge developing economies such as China, India, Eastern Europe, and South East Asia is the main reason for higher prices in commodities, and also helps explain the Dollar's decline. I've been saying it forever, and it's not a new ideology in financial circles. In response to the cabbie, I present this chart, which shows global growth in fertilizer. Notice a trend? After the Jump for a bigger more legible picture.
April 29, 2008
April 28, 2008
Who Are You Yimmy Yayo?
An obscure, off-kilter art gallery begot an equally misaligned set of blogs. KnowGo and Foto-Club have become a last refuge for the kids of the Arden-Hanna collective. We thought we we're alone. Then you, Yimmy Yayo, stumbled upon our home. Though, we soon realized that when searching for "Yimmy Yayo" on, say, Google...low and behold...KnowGo and Foto-Club come up before Yimmy Yayo. So, who are you Yimmy Yayo? We want you as a contributor!!! This one is for you Yimmy.
April 27, 2008
Tim Knowles
A series of drawings produced using drawing implements attached to the tips of tree branches, the wind’s effects on the tree, recorded on paper. Like signatures each drawing reveals the different qualities and characteristics of each tree.
Courtesy of Reform & Revolution
Courtesy of Reform & Revolution
April 25, 2008
April 23, 2008
April 22, 2008
April 21, 2008
April 18, 2008
Props to The Post Family for Making me Look Good
The Visually Stunning Work of Michael Surtees
Oh, and Thanks to COLOURlovers for Posting it Before the Post Family
Oh, and Thanks to COLOURlovers for Posting it Before the Post Family
April 17, 2008
April 16, 2008
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