Dairy prices jump +11.4%, WMP is up +20%; Wall Street down; EU banks have NZ$1.8 tln in bad loans; one huge loser in Melbourne Cup; UST 10yr yield at 1.82%; oil down, gold up; NZ$1 = 71.6 US¢, TWI-5 = 75.5

How seaweed eating super cows will save the world

http://inhabitat.com/how-seaweed-eating-super-cows-will-save-the-world/

"De Nys and his research team at JCU tested 20 different varieties of seaweed, which is known to aid in digestion and reduce gaseous emissions even in humans. (Beans are often cooked with kombu, a type of seaweed, in order to make them less of a ‘musical fruit.’) Where cows are concerned, scientists found that the species of red seaweed called Asparagopsis taxiformis is most effective in reducing methane burps, and they have been harvesting it off the coast of Queensland to aid in their research. Using an artificial cow stomach that operates a bit like a compost bin, the research team found that a diet consisting of two percent red seaweed and 98 percent typical feed resulted in methane levels that were 60-70 percent lower than without seaweed."

I thought that this was interesting, seeing that our (?) government has agreed to tax us to death with the Carbon Market.

A sudden 11% gyration in a single commodity price is unsustainable , and is unlikely to hold , so expect it to drop again ( maybe not by the same %, but it will adjust)

Of course the Kiwi$ has not reacted to the dairy price rise , because currency traders have either priced it in , or dont think its sustainable .

Lets not forget , the players in the market have access to much of the information driving prices , there is little information asymmetry nowadays

In Sydney, it was much more level-headed. The RBA held its policy rate unchanged at 1.50%.

Financial markets are functioning effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative. Government bond yields have risen, but are still low by historical standards.

Effective for whom, other than the already propertied?

I think the new RBA governor is an amateur comedian - does he not perceive low interest rates signal financial dysfunction, hence tight credit conditions for the majority? The 10yr Commonwealth Government bond priced at ~2.38% signifies little else other than moribund economic opportunities ahead.

What people observe as “cash on the sidelines” is nothing other than a mountain securities that have been issued in the form of short-term money market instruments, and those instruments will remain “on the sidelines” until they are retired. In the meantime, every single one of them will have to be held by someone. They do not “flow” anywhere. They simply change hands, and changing hands doesn’t affect their quantity.
http://www.hussmanfunds.com/wmc/wmc161031.htm

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