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Bogdan Fiedur
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RE: Food crises, inflation - It will enable resource based economy
4/24/2011 8:22:32 PM
Vietnam Inflation Accelerates to Fastest Pace Since 2008, Government Says

Vietnam’s inflation accelerated to the fastest pace since 2008, putting pressure on the government to tighten policy further after almost doubling a key interest rate in less than six months.

Consumer prices climbed 17.51 percent in April from a year earlier, according to figures released by the General Statistics Office in Hanoi today. The rate is the highest since December 2008 and compares with the 13.89 percent pace last month. Prices rose 3.32 percent in April from March.

Policy makers have boosted the repurchase rate to 13 percent from 7 percent in November and cut the target for 2011 credit growth to tame inflation and regain investor confidence in the government’s ability to prevent the economy from overheating. Still, food and commodities make up a large share of household spending and increases in gasoline and power costs will fuel inflation, Standard & Poor’s said this month.

“Inflation shows little signs of responding to monetary and fiscal austerity just yet,” said Bill Stoops, chief investment officer at Ho Chi Minh City-based fund manager Dragon Capital. “Government policies to slow inflation operate with a lag effect.”

The inflation rate may peak at almost 20 percent before easing to about 13 percent by year-end, according to U.K.-listed Vietnam Property Fund Ltd. (VPF), which is managed by Dragon Capital.

Vietnam’s central bank raised borrowing costs for the second time in less than a month on April 1, when the refinancing rate was increased to 13 percent from 12 percent. The repurchase rate was raised to the same level.

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You don't need to be a victim of the corrupted government
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Bogdan Fiedur
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RE: Food crises, inflation - It will enable resource based economy
4/24/2011 8:37:37 PM
China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings

All those who were hoping global stock markets would surge tomorrow based on a ridiculous rumor that China would revalue the CNY by 10% will have to wait. Instead, China has decided to serve the world another surprise. Following last week's announcement by PBoC Governor Zhou (Where's Waldo) Xiaochuan that the country's excessive stockpile of USD reserves has to be urgently diversified, today we get a sense of just how big the upcoming Chinese defection from the "buy US debt" Nash equilibrium will be. Not surprisingly, China appears to be getting ready to cut its USD reserves by roughly the amount of dollars that was recently printed by the Fed, or $2 trilion or so. And to think that this comes just as news that the Japanese pension fund will soon be dumping who knows what. So, once again, how about that "end of QE" again?

From Xinhua:

China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.

Xia Bin, a member of the monetary policy committee of the central bank, said on Tuesday that 1 trillion U.S. dollars would be sufficient. He added that China should invest its foreign exchange reserves more strategically, using them to acquire resources and technology needed for the real economy.

And as if the public sector making it all too clear what is about to happen was not enough, here is the private one as well:

China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday.

The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.

Tang's remarks echoed the stance of Zhou Xiaochuan, governor of China's central bank, who said on Monday that China's foreign exchange reserves "exceed our reasonable requirement" and that the government should upgrade and diversify its foreign exchange management using the excessive reserves.

Tang also said that China should further diversify its foreign exchange holdings. He suggested five channels for using the reserves, including replenishing state-owned capital in key sectors and enterprises, purchasing strategic resources, expanding overseas investment, issuing foreign bonds and improving national welfare in areas like education and health.

However, these strategies can only treat the symptoms but not the root cause, he said, noting that the key is to reform the mechanism of how the reserves are generated and managed.

The last sentence says it all. While China is certainly tired of recycling US Dollars, it still has no viable alternative, especially as long as its own currency is relegated to the C-grade of not even SDR-backing currencies. But that will all change very soon. Once the push for broad Chinese currency acceptance is in play, the CNY and the USD will be unpegged, promptly followed by China dumping the bulk of its USD exposure, and also sending the world a message that US debt is no longer a viable investment opportunity. In fact, we are confident that the reval is a likely a key preceding step to any strategic decision vis-a-vis US FX exposure (read bond purchasing/selling intentions). As such, all those Americans pushing China to revalue, may want to consider that such an action could well guarantee hyperinflation, once the Fed is stuck as being the only buyer of US debt.

You don't need to be a victim of the corrupted government
Truth can only be found by those who have the humility to consider what they do not prefer.
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Patricia Bartch
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RE: Food crises, inflation - It will enable resource based economy
1/23/2012 8:02:07 AM
FOOD CRISIS HITS OUR CHILDREN. they're leading the fight against providing lunches to poor children. ( "When asked about how poor kids would fare under this bill, Senator Crandall pointed out that children who attend schools that scrap the school lunch program may have to change schools if they need free lunches.") please read article.
pat




January 22, 2012
By

An Arizona state senator is sponsoring a bill to allow public schools to opt out of the federal school lunch program.

As reported in AZCentral.com:

“A bill introduced by Sen. Rich Crandall, R-Mesa, would allow schools to drop out of the National School Lunch Program.

The federal program gives public schools money and food and requires them to serve nutritionally balanced meals. Children whose families fall below certain income thresholds qualify for free lunch or lunch at a reduced price.

Arizona has a state law that requires K-8 district schools to participate in the program, although high schools and charter schools are exempt.

Crandall said the idea behind the legislation, Senate Bill 1061, is to make sure all schools are treated the same.”

The article also stated that Crandall’s motivation behind this bill was based on a worry that new federal lunch requirements will hurt schools financially.

When asked about how poor kids would fare under this bill, Senator Crandall pointed out that children who attend schools that scrap the school lunch program may have to change schools if they need free lunches.

While we may feel some sympathy that actually serving healthy food to kids may cost a bit more for Arizona’s already cash strapped schools, the idea of passing legislation to allow for the elimination of those meals altogether is a prime example of throwing the baby out with the bath water.

It has also been revealed that Senator Crandall is the president of a company that oversees USDA child-nutrition programs on behalf of state agencies but he has stated, “If I were looking for a benefit, I would never run a bill to allow people to opt out of the school lunch program.”

So In case you are as baffled as I was as to why a senator with obvious ties to school lunches appears to be trying to eliminate them, let me explain.

It all goes back to the new government regulations that are being mandated to make school lunches healthier, including serving fruits, vegetables and low-fat dairy products. Along with this requirement, there is a six cent increase per lunch allocated to cover the additional costs of the lunches. Obviously Crandall isn’t pleased with this amount and it can only be surmised that his goal is to eliminate the federal school lunch programs in the state, which opens the door for lunch providers to go in as a cheaper alternative to serve less healthy foods to kids.

After all, who needs fruits and veggies when Tater Tots and corn dogs will do?

But of course schools could also choose to opt out of any kind of free lunches altogether as this bill is presently written, though the head of the largest teachers’ union in the state wants language inserted that will require free lunches to be served to qualifying students in public schools that opt out of the National School Lunch Program—with the local taxpayer instead of the federal government picking up the tab.

This bill’s irony is further emphasized by the fact that Arizona is in the top five states where children are going hungry. According to an important new study by Feeding America and reported by ABC News, childhood hunger is a stunning reality in the US with over 17 million, or one in four children currently suffering from food insecurity. Food insecurity is defined by the World Health Organization (WHO) as lack of food availability in sufficient quantities on a consistent basis, lack of access to food for a nutritious diet, and lack of appropriate knowledge of basic nutrition and care.

With the proposed federal budget cuts to other food aid programs like WIC, millions of our children are simply going without food during their important developmental years. With younger children affected by a slowing in cognitive development and older kids unable to concentrate on their work, childhood hunger leads to poor academic outcomes. In other words, dropping out of a school lunch program has a very real potential to increase the dropout rate in schools.

On the other side of the food insecurity equation is the fact that many kids are not eating good foods. Food deserts, defined as “A community in which residents must travel at least a mile to buy fresh meat, dairy products, and vegetables,” exist in most cities and rural areas. There are a whopping 23.5 million Americans living in food deserts who can only obtain and afford foods that are loaded with fat, sugar and highly processed ingredients. Whether food deserts or just poor food choices are at fault, childhood obesity is rampant and many formerly adult diseases such as diabetes, hypertension and high cholesterol are now afflicting young people in epidemic proportions. This carries enormous costs both to a child’s quality of life and to our healthcare system.

So any way you look at this, whether from a viewpoint of healthy lunches, unhealthy lunches or no lunches at all, this bill has all the makings of a cynical attempt on the part of one politician to maintain a status quo in poor nutritional choices for schoolchildren or– even worse– no food choice at all. Furthermore, claims by Senator Crandall that kids who need free school lunches should simply seek out schools that provide them ominously smacks of school segregation based on economic need.

An obvious solution to higher costs of school lunches is to simply apply a fraction of the $600 million budget surplus that Governor Brewer has recently bragged about towards providing free nutritionally balanced lunches to all low-income children in public schools.

But somehow I don’t think that idea is going to fly in Arizona’s republican-held legislature.




http://www.addictinginfo.org/2012/01/22/dropping-out-of-school-lunches/
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