TruthisTreason.net – Kevin Hayden

Federal Reserve Chairman Ben Bernanke faced off with economic genius Representative Ron Paul during his monetary policy report to Congress on Wednesday.  The head of the Fed was forced to respond to accusations of enriching already rich corporations while failing to help Main Street, while he was pushed on his views on gold.

“Gold isn’t money,” Bernanke said.

-in part from Infowars.com

Hayden’s Note:

I beg to differ.  Gold has been a form of money – if not one of THE most popular forms – for thousands of years, along with livestock, other precious metals and durable goods.  Gold isn’t money?  Then what is money?

Princeton defines money as “the official currency issued by a government or national bank.”

However, Thomas Greco defined money as:

“Money is anything that is generally accepted as payment for goods and services and repayment of debts. The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value, and occasionally, a standard of deferred payment.”

The Google dictionary defines it as “The assets, property, and resources owned by someone or something; wealth” or “financial gain.”

Dictionary.com states the following in regards to “money” -

–noun

TruthisTreason.net – Kevin Hayden

Source: Natural News

 TruthisTreason.net – Kevin Hayden

Source: Daily Finance

U.S. food prices have been rising in the last year, but it seems the growth is only just beginning. A sharp jump in commodities’ prices this year will soon result in sticker shock for American consumers.

Large food companies have recently announced that they will raise the prices they charge grocery retailers for commodities-based products. For example, a chocolate bar will cost more soon: Hershey last week announced a 10% increase for most of its confectionery goods.

Of course, straightforward price hikes could cause consumers to buy less of those products or to choose less costly store brands. So in many cases, food companies are trying a different tactic: Keeping the price of an item the same while decreasing the amount of food in the package. The company recoups the costs of the rise in commodities and hopes consumers don’t notice that they’re getting less of the product for the same price.

Food companies have no obligation to tell customers about the smaller packages, but may suffer a backlash from consumers who notice how the packaging trick works....

TruthisTreason.net – Kevin Hayden

Source: Zero Hedge

Nobody could have foreseen this. Nobody. In other news, Ben Bernanke has just ordered an extra absorbent set of Huggies.

Silver price is at 31-year high.

Time for some force majeure announcements from the TBTFs....

TruthisTreason.net – Kevin Hayden

Source: Zero Hedge

To those who think that buying food in the corner deli is becoming a luxury, we have five words: you ain’t seen nuthin’ yet. U.S. consumers face “serious” inflation in the months ahead for clothing, food and other products, the head of Wal-Mart’s U.S. operations warned Wednesday talking to USA Today. And if Wal-Mart which is at the very bottom of commoditized consumer retail, and at the very peak of avoiding re-exporting of US inflation by way of China is concerned, it may be time to panic, or at least cancel those plane tickets to Zimbabwe, which is soon coming to us.

The world’s largest retailer is working with suppliers to minimize the effect of cost increases and believes its low-cost business model will position it better than its competitors.

Still, inflation is “going to be serious,” Wal-Mart U.S. CEO Bill Simon said during a meeting with USA TODAY’s editorial board. “We’re seeing cost increases starting to come through at a pretty rapid rate.”

Along with steep increases in raw material costs, John Long, a retail strategist at Kurt Salmon, says labor costs in China and fuel costs for transportation are weighing heavily on retailers.

...

Source: AP

Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. Excluding those volatile categories, inflation was tame.

The Labor Department said Wednesday that the Producer Price Index rose a seasonally adjusted 1.6 percent in February — double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January’s 0.5 percent rise.

Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.

Read Full Article Here…

Hayden’s Note:

Don’t forget about Mexico’s Big Freeze – 80-100% of Crops Damaged, Expect Shortages and Higher Prices...

Source: Zero Hedge

A just released report by Goldman’s Jeffrey Currie attempts to quantify the impact of the tsunami on the Japanese economy from a commodity standpoint. Currie summarizes his conclusions as follows: “Assuming that the broader power grid infrastructure has not been permanently damaged, we believe today’s events are likely to put upward pressure on residual fuel oil and diesel cracks, LNG, UK natural gas and rice; downward pressure on naphtha cracks and Dubai spreads relative to other crude grades.”

Yet the thing we found more interesting than energy related bottlenecks was the disclosure toward the end of the report discussing the threat to the Japanese rice harvest: “In addition to the damage to energy infrastructure from the earthquake, the tsunami also impacted rice producing regions in Japan.

While Japanese rice inventories are large, this puts the 2011/12 crop production at risk and may in turn drive Japanese rice imports higher, posing upside risk to current prices.” Granted, Japan is not a big exporter of rice, but it is a top 10 consumer. Should the country’s consumption (which is estimated at around 9 million metric tons) need to be satisfied by a surge in imports, and with the price of rice already dependent on the margin on speculative money, this could be the catalyst that send the grain, which has plunged in price over the past month, finally break beyond any potential manipulative price suppression schemes....

Source: Bloomberg

Global food prices rose to a record in February and grain costs may continue to rise in the next several months, with only rice keeping the world from a repeat of the crisis three years ago, the United Nations said.

Hayden’s Note:

See why rice is the perfect long-term storage food in my article here.

An index of 55 food commodities rose 2.2 percent to 236 points from 230.7 in January, the eighth consecutive gain, the UN’s Food and Agriculture Organization said today. Wheat rose as much as 58 percent on the Chicago Board of Trade in the past 12 months, corn gained 87 percent and rice added 6.5 percent.

“I’ve never loved rice more than now,” Abdolreza Abbassian, a senior economist at the FAO in Rome, said by phone. The grain is the staple food of more than half of the world population, according to the International Rice Research Institute. “Probably rice is the commodity which is separating us from a food crisis,” Abbassian said.

Rising food costs contributed to riots across North Africa and the Middle East in the last several months that toppled leaders in Egypt and Tunisia....

Source: Zero Hedge - Mike Krieger

Another great post from the guys and gals at Zero Hedge. Bookmark them for economic news and analysis!

Thanks Ben…You Have Destroyed the Social Fabric of the World

History is littered with the carcasses of men that in their exaggerated hubris attempted to stop the forces of nature and the markets only to fall flat on their faces.  We tell the stories of these men in history books and myths from prehistory, but it never stops men of successive generations from trying it all over again.  What the current political class the world over (at the behest of Wall Street financial terrorists and other big corporate interests) are doing falls into the same exact formula of prior historical failures.   Some of the historical figures that attempted to beat back nature were great warriors or kings that just reached too far.  Some of them were evil megalomaniacs whose desire was nothing short of absolute power in their hands over any of the unfortunate human beings that happened to be in the way.  Ben Bernanke is neither of these.  He is a just a little dweeb with an electronic printing press.  Tragically, because of modern technology and the way the monetary system works today he has the ability to cause more damage than any other one person in the history of mankind and he is doing it.  I shudder to contemplate the ultimate effects of the inflationary holocaust he has unleashed on the six billion mesmerized and helpless souls present on earth at this time.  The signs are starting to show up again just like in early 2008.  Food is becoming scare at a “reasonable” price in many parts of the globe and the symptoms of this are starting to bubble up to the surface.  For example in recent days we have witnessed food riots in Algeria and Tunisia where at least 14 people are reported to have died in each country.         

These types of events were easily predictable and have been predicted by people like me and many other whose views will never be seen in the mainstream media.  Fortunately, the alternative media is taking over (which is why the Obama administration is certain to increase its crackdown on the internet) and people are becoming very informed and linked all over the world.  The divide and conquer strategy that has worked so well for millennia will be much harder to pull off this time around....

Source: The Intel Hub

See also: Martial Law, Economic Meltdown & Executive Orders – Truth is Treason

Get Out of the Dollar and Into Tangibles – Truth is Treason

We have worked extensively to document rising food prices and possible coming food shortages. Now the Food and Agriculture Organization of 55 food commodities has recorded that global food prices hit an all time record in December.

Natural News
Figures recently released by the Food and Agriculture Organization (FAO) index of 55 food commodities indicates that worldwide food prices hit a record high in December. Though the costs of some food commodities like rice, corn and soy actually decreased, oil seeds and sugar jumped significantly due to various factors including erratic weather and droughts, according to reports.

In the past, such ups and downs on the commodity market did not immediately affect actual food costs for consumers, but some experts say that this is no longer the case, and that “food inflation” will occur right alongside the commodity price gains. And rapid food inflation has already taken place in India, for example, with recent reports indicating that the country experienced an overall food inflation rate of 18 percent in 2010.

...

Kevin Hayden

TruthisTreason.net

NIA Releases Food Price Estimates For A QE2 World: Bread To $23.05, Corn To $11.43, $62.21 For Sugar

On one hand we have the WSJ writing day after day that prices of food and energy products are not “really” rising. On the other hand we have empirical evidence that virtually every staple is already higher in price, or is being served in proportionally smaller portions.

One possible arbitration on the issues comes from the NIA, which even if biased, does provide an estimate of where prices of various key perishables will end up in a post-QE2 world. These are as follows: “$11.43 for one ear of corn, $23.05 for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71 for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a 64 fl oz container of Minute Maid Orange Juice, and $15.50 for a Hershey’s Milk Chocolate 1.55 oz candy bar.” Granted these are likely somewhat whimsical, but even if they are partially correct, it would mean the bulk of US society, as we pointed out previously, is in for a long, cold, hungry winter....

Source: CNBC

via Activist Post

Everyone is waiting for inflation.

Corn is up 45 percent the last three months. We haven’t seen cotton prices this high since after the Civil War. Soybeans are up. Oil is up. Metals are up. So are coffee and cocoa.

In this era of massive liquidity, everything is up, except for food prices—specifically processed food (made from many of the same commodities and other ingredients whose prices have risen).

According to the USDA, that is going to change. In its most recent CPI report for food, the USDA reported that prices are expected to rise in 2011.

For all food, prices are expected to rise two to three percent, which is double the levels of 2010. Meat prices are expected to rise up to 3.5 percent, and dairy 5.5 percent.

“The forecast for 2011, that remains unchanged, but it’s moving to the higher part of that range,” said Ephraim Leibtag, who serves as a senior economist for the USDA and out together the report. He added, “The potential to go above that is more likely if current commodity price increases remain where they are or rise even more.”

Read Full Article

....

Kevin Hayden

TruthisTreason.net

Money Printing Set To Devalue Every Dollar You Own

I wish I could say it’s not happening. But it is. Central banks all over the world are now embracing Bernanke’s Friday announcement … and they’re gearing up to print a massive GLOBAL flood of paper money!

• Chicago and Boston Fed Presidents Charles Evans and Eric Rosengren are throwing their hat into the ring, putting more muscle behind Bernanke.

• The normally conservative, European Central Bank President Jean-Claude Trichet is joining in the chorus, calling for more money printing at the ECB, while also extending additional financial assistance to the European Union’s most indebted nations, Greece, Spain, and Portugal.

• The Bank of England is jumping into the fray, acknowledging that it will expand its money printing spree by at least $160 billion.

What Are These Central Bankers Smoking?

Don’t they remember ANY lessons of history?

Don’t they know that devaluing a nation’s currency is an insidious trick that has never created real, lasting wealth?

That it devalues every paper dollar you own? That it threatens your wealth like never before?...

Source: Bloomberg

The Philippines, the world’s biggest rice buyer, may lose 600,000 metric tons of the crop as Supertyphoon Megi, the strongest to hit the nation this year, strikes some of the nation’s biggest producing areas, a government official said. Rice futures advanced.

“Once the typhoon hits those areas, the crop will be affected,” Agriculture Undersecretary Antonio Fleta said in a phone interview from Manila. “Even if farmers harvest the damaged rice, they’d have a hard time drying the grain. There may not be much left to sell.”

About 157,000 hectares of land planted to rice in Cagayan and Isabela provinces may be in the path of the typhoon, Fleta said. Megi has sustained winds of 270 kilometers (168 miles) per hour, the U.S. Navy Joint Typhoon Warning Center said, making it a Category 5 storm capable of catastrophic damage.

Half of the planted areas in the two provinces are ready for harvest and the rest are in the reproductive stage, leaving them susceptible to damage, Fleta said.

Damage to Philippine crops would come amid production losses in other countries, further curbing the global harvest and potentially sustaining a rally in prices....

Kevin Hayden

TruthisTreason.net

.

Bank of America Downgraded by Bonds Market: Junk

Bondholders are penalizing Bank of America Corp. the most of any of the largest U.S. financial firms as the investigation into the foreclosure crisis expands.

Credit-default swaps on the country’s largest bank by assets rose above those of its peers by a record margin, according to data provider CMA. The contracts, which imply Bank of America has lost its investment-grade rating, exceed Citigroup Inc.’s by the most ever and surpassed Morgan Stanley’s this week for the first time in a year.

Attorneys general from all 50 states joined to open an investigation into whether lenders and mortgage companies falsified documents as they sought to repossess homes.

.

How High Will Corn Prices Go Before Usage is Rationed?

Panic at the pumps: French motorists swamp petrol stations

US Cities Face Half a Trillion Dollars of Pension Deficits

Dollar Keeps Falling As Investors Await Fed Action

.

Swazi Salaries ‘can’t be paid’

Swaziland’s government may run out of money to pay government employees before the end of the financial year if no funding is forthcoming from international finance institutions, various role players in the country said this week....

Kevin Hayden

TruthisTreason.net

$5,000 Gold Equates to $100 – $350 Silver – Here’s Why

By: Lorimer Wilson

108 respected economists, academics, analysts and market commentators are of the firm opinion that gold will go to $2,500 and beyond before the parabolic peak is reached. In fact, the majority (75) think a price of $5,000 or more -even as high as $15,000 – is actually more likely.  As such, just imagine what is in store for silver given its historical price relationship with gold.

See also: Whistleblower Exposes JP Morgan’s Silver Manipulation Scheme

See also: Feds Launch Probe into JP Morgan Trades in Silver Pit

Let’s look at the gold : silver ratio from several different perspectives:
- Over the past 125 years the mean gold:silver ratio (i.e. 50% above and 50% below) has been 66.9 ounces of silver to 1 ounce of gold.
- In the last 25 years (since 1985) the mean gold:silver ratio has increased to 45.69:1
- The present gold:silver ratio has been range-bound between 60:1 and 70:1 (58.8:1 as of October 6/10).
- Interestingly, during the build-up to the parabolic blow-off in 1979/80 silver outpaced gold going up 732.5% vs....

Source: Global Research

It is interesting to watch Wall Street defy reality. This is a scene we’ve observed since the early 1960s, the effect of debt on the economy and the nation and in turn on its currency. The result of the profligacy over all those years is the biggest bull market in history in gold and silver. As we write gold is toying with $1,300 and silver with $21.50. Each day a new high is reached in spite of a pending options expiration and the perpetual market rigging and manipulation by the US government.

Hayden’s Note:

I highly recommend you read this entire article.  This isn’t your typical “Buy gold!”-type article.  Instead, it accurately describes the bigger picture (especially towards the last 1/3 of the post) and that is something you need to understand now, not later.

One of the things that astound us is that few professionals have seen this coming over the past 10-1/2 years, and even those that do believe do not think this is an earth-shaking event. What we are about to experience is an event that only occurs every 300 to 500 years....

Source: Zero Hedge

by Gonzalo Lira

I usually don’t do follow-up pieces to any of my posts. But my recent longish piece, describing how hyperinflation might happen in the United States, clearly struck a nerve.

It was a long, boring, snowy piece of macro-economic policy speculation, discussing Treasury yields, Federal Reserve Board monetary reaction, and the difference between inflation and hyperinflation—but considering the traffic it generated, I might as well been discussing relative breast size in the porn industry. With pictures.

Essentially, I argued that Treasury bonds are the New and Improved Toxic Assets. I argued that, if there was a run on Treasuries, the Federal Reserve—in its anti-deflationary zeal, and its efforts to prop up bond market prices—would over-react, and set off a run on commodities. This, I argued, would trigger hyperinflation.
 
The disproportionate attention my post garnered is indicative of people’s current fears. As I’ve said before, people aren’t blind or stupid, even if they often act that way. People are worried—they’re worried about the current state of affairs: Massive quantitative easing, toxic assets replaced by the full faith and credit of the U.S....

Source: Kansas City Star

Drought and raging wildfires have destroyed one-fifth of the wheat crop in Russia and sent wheat prices soaring around the world.

The fear that Russia, a major wheat producer, will have to cut exports by at least 30 percent is good news for U.S. farmers, who now are getting more money to go along with a bumper crop this year.

Update – 08.05.2010

Russia halts all wheat exports

Source: Reuters

Chicago wheat markets jumped 8 percent to near two-year highs on Thursday, twice triggering trading curbs to restore order before easing back after Russia said it would temporarily halt grain exports.

Russia’s worst drought on record has devastated crops in parts of the country and sent international grain prices soaring as markets placed bets that without shipments from one of the world’s leading exporters, global supplies would be restricted.

Wheat has risen seven of the past eight days at the Chicago Board of Trade and buying by funds and traders spilled across the grain markets. Corn and soybeans were 2 and 0.5 percent higher, respectively.

Prime Minister Vladimir Putin signed an order banning grain and flour exports from August 15 to December 31, with a spokesman saying this would apply to contracts that had been already signed....

Source: Associated Press

Wholesale prices rose more than expected last month as food prices surged by the most in 26 years.

The Labor Department said the Producer Price Index rose by 0.7 percent in March, compared to analysts’ forecasts of a 0.4 percent rise. A rise in gas prices also helped push up the index.

Still, there was little sign of budding inflation in the report, which measures price changes before they reach the consumer. Excluding volatile food and energy costs, wholesale prices rose by 0.1 percent, matching analysts’ expectations.

Food prices jumped by 2.4 percent in March, the most since January 1984. Vegetable prices soared by more than 49 percent, the most in 15 years. A cold snap wiped out much of Florida’s tomato and other vegetable crops at the beginning of this year.

Gasoline prices rose 2.1 percent, the department said, the fifth rise in six months.

In the past year, wholesale prices are up 6 percent, with much of that increase driven by higher oil prices. But excluding food and energy costs, they have risen only 0.9 percent....

Source: DailyFutures

Orange juice prices had a nice rally since last summer, but it appears to be over – at least for a while. Today, May orange juice closed below its 100-day average and at its lowest level in nine weeks – a sign of weakness (Mar. 26, 2010).

(Note: Futures trading involves risk and the comments in this article may not be appropriate for your financial situation).

U.S. Economy

The U.S. Commerce Department said that real GDP was up 1.4% in the fourth quarter and up slightly from a year ago. For all of 2009, real GDP was down 2.4%. The June 2011 eurodollars ended up .045 at 98.405.

The University of Michigan’s index of consumer sentiment stayed at 73.6 in March, a little better than expected.

Grains and Cotton

Yesterday’s 6 to 10 day forecast from the National Weather Service is expecting above average temperatures over most of the Midwest with normal to above-average precipitation. May corn was up 1.75 cents at $3.567.

Livestock – Hogs Should Be Higher On Monday

After the close, the USDA said that there were 63.988 million head of hogs and pigs in the U.S....

Source: Daily Futures U.S. Economy The U.S. Labor Department said that jobless claims were down 14,000 last week to 442,000, less than expected. The U.S. Treasury sold $32 billion of 7-year T-notes at a median yield of 3.29% with a disappointing bid-to-cover ratio of 2.61. The June U.S. T-bonds closed down 26/32nds at 115.01/32nd, the lowest close in four weeks. Pimco's Bill Gross told Bloomberg Radio today that "bonds have seen their best days" (see article). He expects higher inflation to result from excessive government borrowing. Grains and Cotton - New Low Wheat The USDA said that, as of last week, 2009-2010 exports of: Corn improved from up 6% to up 7% from a year ago. Soybeans remained up 34% from a year ago. Wheat remained down 21% from a year ago. Cott

Sorry about the lack of Commodity News lately!  I've been slacking off! Source: DailyFutures U.S. Economy The U.S. Commerce Department said that personal incomes were up .3% in December while consumer spending was up .2%. For all of 2009, personal incomes were down 1.4%, the biggest decline since 1938. The Institute of Supply Management's manufacturing index increased from 54.9 to 58.4, much stronger than expected. The March 2011 eurodollars were down .03 at 98.60. The U.S. Census Bureau said that construction spending was at an annual rate of $902.5 billion, down 1.2% from November's pace. For all of 2009, construction spending totaled $939.1 billion, down 12.4% on the year. Even so, March lumber closed up its $10 daily limit at $258.50, the highest in eight weeks. Grains and C

Source: DailyFutures U.S. Economy The U.S. Labor Department said that jobless claims were up 11,000 last week to 444,000, more than expected. The March 2001 eurodollars closed up .065 at 98.475. The U.S. Commerce Department said that retail sales were down .3% in December, weaker than expected. They also said that inventories were up .4% in November, more than expected. The U.S. Treasury sold $13 billion of 30-year T-bonds at a median yield of 4.61% with a bid-to-cover ratio of 2.68. The March U.S. T-bonds closed up 27/32nds at 116.25/32nds. Grains and Cotton The USDA said that, as of last week, 2009-2010 exports of: Corn remained up 5% from a year ago. Soybeans increased from up 38% to up 42% from a year ago. Wheat slipped from down 28% to down 29% from a year a

Source: DailyFutures U.S. Economy - China Tightens Reserve Requirements China surprised the markets today, announcing that they are raising the reserve requirements for their banks by .5% starting January 18th. It is seen as a move to restrain the economy. The March U.S. T-bonds jumped up 1.20/32nds to 116.26/32nds. Most commodities were lower on the day. The U.S. Census Bureau said that exports were up .9% to $138.2 billion in November while imports were up 2.6% to $174.6 billion. The result was net imports of $36.4 billion, more than expected. The U.S. Treasury sold $40 billion of 3-year T-notes at a median yield of 1.45% with a bid-to-cover ratio of 2.98. Grains and Cotton - USDA Reports The USDA's 2009-2010 U.S. ending stocks estimate of: Corn was increased from 1.

Source: DailyFutures U.S. Economy The U.S. Treasury sold $10 billion of 10-year TIPS today at a yield of 1.30% with a bid to cover ratio of 2.65. The March U.S. T-bonds were down 9/32nds at 115.06/32nds. Grains and Cotton The USDA said that last week's export inspections of: Corn totaled 20.6 million bushels, down 6% from a year ago. Soybeans totaled 41.0 million bushels, up 52% from a year ago. Wheat totaled 11.0 million bushels, down 46% from a year ago. March soybeans closed down 11.5 cents at $10.105. Tomorrow morning, the USDA is scheduled to release its estimate of winter wheat seedings along with its monthly supply and demand estimates. March wheat closed up 4 cents at $5.725, its highest close in five weeks. March cotton closed up 1.80 cents at 74.24,

Source: DailyFutures U.S. Economy The U.S. Labor Department said that jobless claims were up 1,000 last week to 434,000. The U.S. Labor Department will release its unemployment report tomorrow. The International Council of Shopping Centers said that same-store sales at 32 retailers were up 2.8% in December. Grains and Cotton The USDA said that, as of last week, U.S. 2009-2010 exports of: Corn improved from up 3% to up 5% from a year ago. Soybeans remained up 38% from a year ago. Wheat remained down 28% from a year ago. Cotton remained down 37% from a year ago. March cotton closed down .66 at 72.89, the lowest close in six weeks. March soybeans fell 33 cents to $10.26 with concerns that China's move to raise its interest rate slightly signaled a change that

Source: DailyFutures U.S. Economy The U.S. Commerce Department said that factory orders were up 1.1% in November, better than expected. The March 2011 eurodollars closed up .10 at 98.28. The National Association of Realtors said that pending home sales were down 16% in November, but still up 15.5% from a year ago. March lumber fell $2.40 to $228.10. The March U.S. T-bonds closed up 30/32nds at 116.01/32nds. Grains and Cotton Part of yesterday's big gain in wheat prices was due to concerns that the winter wheat crops in Nebraska and Kansas may suffer damage from being exposed to below-zero temperatures. Today, March wheat was down 4.75 cents to $5.53. According to Bloomberg news, the soybean harvest in Brazil has begun and expectations are high for a record crop (see artic

Source: DailyFutures U.S. Economy White House advisor Lawrence Summers said that he expects the economy to start adding new jobs in the spring of 2010. Is that too optimistic? The March 2011 eurodollars were down .055 at 98.355 ahead of tomorrow's final Federal Reserve meeting of 2009. Citigroup has reached an agreement to repay the U.S. government $20 billion of the $45 billion that it borrowed last year from TARP. The government also holds $25 billion of Citigroup stock that it is expected to sell in the next twelve months. Standard and Poor's announced that MBIA, Ciena Corp., Dynegy, KB Home, and Convergys Corp. will all be dropped from the S&P 500 index on December 18th. In their place, will be added Mead Johnson, Ross Stores, VISA, Cliffs Natural Resources, and SAIC I

Source: DailyFutures U.S. Economy The U.S. Commerce Department said that retail sales were up 1.3% in November, much better than expected, and up 1.9% from a year ago. Sales in October were revised down, from a 1.4% gain to a 1.1% gain. The March 2011 eurodollars were down .055 at 98.41.   The University of Michigan's consumer sentiment index increased from 67.4 to 73.4 in early December, stronger than expected. Grains and Cotton The flow of soybeans to China continues: The USDA said today that China bought another 232,000 tons of U.S. soybeans. January soybeans closed up 8 cents at $10.35. Livestock The U.S. Meat Export Federation said that beef exports were down 4% in October from a year ago. February cattle closed up 1.10 at 83.20 while extremely cold tempera