Stacy Summary: Really, there is nothing to see here. These floods have nothing to do with the economy. Keep moving. Everything is going to be okay.
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Stacy Summary: Luckily, for those who follow our site and are not wed to an ideology that forces them to see no floods, hear no hurricanes and speak no rising temperatures, they will have been hedged against this economic catastrophe. For those who are ideologically opposed to the environment having any possible impact on finance or economics . . . good luck with that, buddy.
Australia’s economy shrank in the first quarter by the most in 20 years as floods hurt exports, even as stronger business investment underscored the central bank’s forecast for a rebound in the second half of the year.
Gross domestic product fell 1.2 percent from the previous three months, when it rose a revised 0.8 percent, the Bureau of Statistics said in Sydney today. Exports slumped 8.7 percent, subtracting 2.1 percentage points from GDP growth, today’s report showed, while machinery and equipment spending jumped 6 percent, adding 0.4 point.
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The flood damage comes in the middle of the spring planting season. In a report earlier this week, the Canadian Wheat Board said only 3% of all crops have been planted, compared with almost 40% usually in the ground by this time of year.
“There could be a reduction varying from two to five million acres, depending on the weather in the next month, in terms of possible unseeded areas,” said Bruce Burnett, director of weather and market analysis at the CWB.
Planting is likely to be delayed by two to three weeks at least.
“One of the things we are very concerned about is that later planting raises concerns from the quality point of view and that could significantly affect exports.”
Canada is the world’s second-largest wheat exporter, shipping about 20 million tonnes annually to 70 countries.
“I imagine this will take its toll on wheat prices,” said Scotiabank commodity specialist Patricia Mohr. “Energy prices may start to settle down but food prices will continue to move higher.”
Wheat prices have climbed by 50% over the past year as a combination of factors, such as drought in Russia and floods in Australia and Canada, reduced supplies. Last summer, Russia imposed a ban on all grain exports to prevent shortages at home after its crops were largely destroyed.
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Stacy Summary: Competition for increasingly rare capital increasing as weather continues to go berserk. As we’ve seen across America this past week or two with snow and floods, record precipitation has also been hitting Australia and New Zealand. And this competitor for capital always wins.
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Stacy Summary: Beware those claiming that major weather disasters like the Moscow heatwaves and fires or the Pakistan floods have nothing to do with the economy, markets or finance. Moscow’s July and August weather has not only impacted, for example, the bond market, but also the wheat market. The floods in Pakistan have not only dislocated millions of people and killed 1600, but have also caused great dislocation in agricultural markets where it has caused inflation in prices of local agricultural goods and is expected to cost the nation up to 10% of GDP. And now it has forced the nation to go to the IMF and plead for restructuring; the IMF is central to the global matrix of ne0-liberal finance so this action, too, will cause unknown knock on effects. Many have an ideology that necessitates weather events NOT be reported on, but these two events will have knock on economic, market and geo-political effects for years to come. Black them out of your memory if you must, but it doesn’t mean the costs will disappear.
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Stacy Summary: More empire sinking into the muck of collapse and eco-eco holocaust.
A year after Congress passed $7.5 billion in aid to undercut the insurgents by strengthening Pakistan’s governance and economy, the worst floods in decades have destroyed more than $13 billion worth of crops, farms, railroads and towns along the country’s economic spine . . .
From DemocracyNow! yesterday:
Just to give you a sense of how bad the rain was that caused this flooding initially, on the 28th of July, there was 318 millimeters of rain just on one day. To put that into context, the record, all-time record, for rain in Peshawar, which is where this number is from, for one month, the month of July, was 217 millimeters. So it rained more in one day than it had ever rained in an entire month for the monsoon season.
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Stacy Summary: Eco-eco holocausting causing lots of ‘temporary lifestyle changing’ these days . . .
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Stacy Summary: I know, I know, climate has nothing to do with markets, finance or economy. You don’t need to tell me again. But, for those that are interested in the economic impact of the almost monthly once in 1,000 year floods and heatwaves, the story below offers some information. By the way, Pakistan’s total GDP last year was $177 billion.
Related news today:
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Rick Ackerman
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