Nigeria has 37 billion barrels of crude oil reserve and is Africa's largest oil producer. The country also boasts 187 trillion cubic feet of proven natural gas reserves, the ninth-largest reserve in the world.
In a misguided attempt to maintain an unsustainable Status Quo, the Federal government is borrowing unprecedented amounts of money that then must be serviced.
Sandy is classified as a Hurricane 1 status, a low-grade hurricane. However, don't let that fool you in terms of impact. It's not the absolute magnitude of the hurricane, but rather the magnitude vs. what the infrastructure can handle that matters.
The abundance or scarcity of energy is only one factor in its price. As the cost of extraction, transport, refining, and taxes rise, so does the “cost basis” or the total cost of production from the field to the pump.
Chiwoong Lee at Goldman Sachs has a new report out (“China vs. 1970s Japan”, September 25, 2012) in which he predicts that China’s long-term growth rate will drop to 7.5-8.5%. I disagree very strongly with his forecast, of course, and expect China’s growth rate over the next decade to average less than half that number, but the point of bringing up his report is not to disagree with the details of his analysis.
At its most fundamental level, economic activity is no more than an exchange between strangers. It depends, therefore, on a degree of trust between strangers. Since money is the agent of exchange, it is the agent of trust. Debasing money therefore debases trust.
The markets are closed Monday, and likely on Tuesday as well, due to the approaching Hurricane Sandy. The decision to close all market activity on Monday reversed the earlier partial shutdown call that would have kept open electronic trading activities even as it closed down all trading floors.
In what has been one of the greatest signs of economic and financial hubris over the last quarter century was the argument that the business cycle had been conquered by central bankers and the modern economy. The idea that recessions were a thing of the past and that economic volatility since 1980 through 2007 had been greatly reduced lead to economists calling the period “The Great Moderation.”
Gold trading in London – heart of the world's wholesale bullion market – leapt in September. How come? "The continued economic uncertainty in the Eurozone and US, the end of the holiday period and the start of the Indian festival season boosted clearing turnover," says trade body the London Bullion Market Association, releasing the new data to members on Thursday.
Raising taxes is the "solution." Too bad incomes are declining. What will raising taxes do to household savings, spending and the economy?