Here's what I'm reading this morning. You might find these stories and blogs interesting, too.
Economics as science? No chance.
Economics
is not a science. Physics wouldn't be a science either if esteemed
members of that profession who got prestigious jobs running the country
were willing to make statements that contradict all known facts.
Commodity Futures Speculation
Fundamentals are the most important part of the 5-year story, but that the falling dollar, negative real interest rates, and quite possibly fund purchases of commodity futures contracts have also made an important contribution during 2008.
The Economics of Sawdust
I
was in Vermont over the weekend and talking to a dairy farmer about the
rising price of milk. I was surprised when she said that higher sawdust
prices was one of the causes.
xx
Sean's note -- everything is interconnected, and in our modern society,
even more so. I'm always wondering what shoe missing a nail is going to
drop next. Speaking of which ...
More Collateral Damage from the Housing Crisis
The
fallout of the housing crisis is affecting many more people than just
those who purchased a home on dicey terms (or who provided the loan, or
now owns the debt). In several posts we will highlight how the current
crash has been cause for concern in some unexpected places.
Austrian Finance Minister Proposes European Tax on Commodity Speculation
Austrian Finance Minister Wilhelm Molterer said he'll propose a
Europe-wide tax on commodities speculation as people across the
continent protest against higher fuel and food prices.
Oil Trades Little Changed as Asian Governments Attempt to Cool Consumption Crude oil was little changed as Malaysia scrapped fuel price controls and India said subsidies were becoming unsustainable.
Corn Falls After U.S. Crop Conditions as Expected; Wheat Futures Decline
Corn futures declined in Chicago for the first time in three days as a
government report on the state of the U.S. crop, the world's biggest,
was within market expectations. Soybeans rose for a third day, while
wheat fell.
Nifty Oil Clock
Want to see how much oil the world uses second by second? CLICK HERE.
Posted by: B on Tuesday, June 3, 2008
For your oil column, isn't another answer to increase supply? If I read our potential oil reserves (albeit in prohibited areas), we have about 38 billion barrels of oil and about 175 trillion cubic feet in natural gas. So couldn't we pursue a dual-edged approach-- lower demand (efficiencies--speed limit, fuel efficient cars, walking/biking more) and supply?
Posted by: Sean Brodrick on Wednesday, June 4, 2008
Thanks for writing. Yes, I'm all in favor of increasing domestic supply (by opening up areas where we currently can't drill for oil and gas) but ONLY if it goes hand in hand with a strong conservation program. Without conservation, more supply is useless. We'd only end up back in the same bad spot in a few years. With conservation, we have a chance (albeit a slim one) to keep things going until we make the transition to whatever is next. I have some educated guesses as to what energy sources we might be transitioning to, but I'll save that for my reports.