New global currency or new regional trade units?

Rumblings out of the Kremlin for the creation of a new global currency.
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At the other end of the spectrum, bartering makes a comeback…
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The New Economy – Food banks, panhandling, and down time

Instead of writing about how many times Ali Velshi can be wrong and still have a job, I thought better to not focus on the negatives and instead start getting into the mindset of Disintegration 2010.

Dow Now and Then

BUY WHEAT. BUY GOLD. BUY SOUP.

WHEAT COULD REACH NEW HEIGHTS IN 2009

Droughts this year are going to squeeze already tight global wheat supplies. Parts of the US are severely dry like Texas and California. Elsewhere, China, Australia and eastern Europe are all experiencing extreme droughts. Financial mayhem has made it impossible for farmers to get credit for fertilizers so even with adequate rain, yields will be reduced. Another factor killing incentive to expand acres is the lower price compared to 2008. Liquidation continues with still almost 50% of open interest in wheat futures held by funds. A wild card is the stem rust fungus threatening wheat crops in Africa and moving west appearing in Iran. This is the making of another perfect storm with potentially devastating effects worldwide. Global stocks of wheat have recently come off 30 year lows. Even a modest reduction in 2009 yields could just be the trigger for civil unrest and mayhem. There are only 12 weeks of slack in the system. That’s it. It is not a pretty picture going into the summer of 2009.