Comodities Archive

China, Saudi Output, Credit Check

This monetarist stuff doesn’t work: China removes regulation on loan-to-deposit ratio Aug 28 (Xinhua) — China’s top legislature on Saturday adopted an amendment to the Law on Commercial Banks, removing a 75-percent loan-to-deposit ratio stipulation. China has kept the 75-percent ratio since the law was enacted and put into effect in 1995. ...Read More

Personal Income and Outlays, Consumer Sentiment, Japan Household Spending, China Profits

Everything pretty much as expected and the same, helped by vehicle sales which are both volatile and leveling off: United States : Personal Income and Outlays Highlights There’s no hurry for a rate hike based on the July personal income and outlays report where inflation readings are very quiet. Core PCE prices ...Read More

Saudi output

Saudis set price and let their clients buy all they want at the price settings, so their output continually adjusts to equal global demand net of all others producers. What’s clear is that said net global demand has fluctuated very little, obviating the notion that the price collapse was somehow a function ...Read More

oil related jobs at risk?

Lots of oil related jobs about to vanish seems: ...Read More

macro update

Let’s look at the Saudi price cuts in the context of the accounting identity that states that for everyone who spent less than his income, another must must have spent more than her income or that much output would not have been sold. ;) The price cut itself shifts income from producers ...Read More

Mosler RT interview part 2

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Oil futures show spot shortage, not surplus, Cuts, PCR on jobs

When there is a surplus of physical supply the nearby contracts trade at lower prices, with prices going higher as you go further out to discount storage charges. That is, with a physical glut of supply the storage facilities fill up and the price of storage goes up. Likewise, when spot is ...Read More

Putin buying gold in size?

If this is true Putin is even dumber or more subject to special interest influence than I thought. Someone please tell me if it isn’t! ...Read More

Comments on crude pricing, the economy, and the banking system

Crude pricing The Saudis are the ‘supplier of last resort’/swing producer. Every day the world buys all the crude the other producers sell to the highest bidder and then go to the Saudis for the last 9-10 million barrels that are getting consumed. They either pay the Saudis price or shut the ...Read More

ADP, mtg purch apps, Productivity, ISM, oil and gas well permits

Remember, this is their forecast for Friday, not hard data from their subscribers: ADP Employment Report Highlights ADP’s estimate for private payroll growth for November is 208,000 vs the Econoday consensus for 225,000 and against a revised 233,000 for October. The corresponding Econoday consensus for Friday’s jobs report from the government is ...Read More