Fertilizer Markets and Finance

On this blog I publish posts & news about what's new in the fertilizer industry and how it's markets are affected by geopolitical developments, environmental changes and monetary policies. I also focus on how farmers are affected by government decisions, and economic fundamentals of the market place. I am passionate about agriculture in Trinidad and write about problems farmers face in the agriculture industry especially in rural areas. Thanks for viewing.

Jonathan Mohan


Some of my highlighted work -
The destruction of Trinidad and Tobagos’ local banana market.
http://tinyurl.com/pne2lwv

The geopolitics and economic stratagem of Uralkali’s bombshell will change the global potash oligopoly.
http://tinyurl.com/l57nco8
Recent Tweets @FertilizerMkts
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Who I Follow
Posts tagged "IMF"

The global economy faces “major downside risks” as its recovery continues to be threatened by stresses in the euro area, the International Monetary Fund said in a report prepared for the Group of 20 nations.

The world economic expansion will slow to 3.3 percent this year from 3.8 percent in 2011, according to the surveillance report prepared for the meeting of G-20 finance ministers and central bank governors in Mexico City Feb 25-26. The euro economy is forecast to contract 0.5 percent this year, compared with growth of 1.6 percent in 2011.

“The overarching risk remains an intensified global ‘paradox of thrift’ as households, firms, and governments around the world reduce demand,” the Washington-based IMF said in the report. “This risk is further exacerbated by fragile financial systems, high public deficits and debt and already-low interest rates.”

“Advanced economies are experiencing weak and bumpy growth, reflecting both the legacies from the crisis and spillovers from Europe,” according to the report.

Read more at Bloomberg

Hungary says it is ready to resume talks with the International Monetary Fund (IMF) and the European Union (EU) on a massive loan after it responded to EU legal challenges that held up negotiations last year.

'The political will and determination … on our side is to start negotiations as soon as possible, … hopefully before the end of March,' Foreign Minister Janos Martonyi told reporters in Prague on Tuesday.

Hungary, an EU member since 2004, asked the IMF and the EU for a 20-billion-euro ($A24.73 billion) loan last November as the forint dropped to record lows against the euro and borrowing costs rose to record highs.

But the two institutions halted preliminary talks in December when Hungary’s conservative government adopted laws seen as threatening the independence of the central bank and freedom of the press.

Hungary and its Prime Minister Viktor Orban have come under international criticism over the new laws, which are seen as a possible slide towards authoritarianism.

The EU executive launched legal proceedings on January 17 against the laws and gave Budapest one month to modify the reforms.

Last Friday, Hungary sent a letter responding to the European Commission, which said it would carry out a ‘full legal analysis’ to assess whether Hungary has taken steps to ensure its laws are in line with European treaties.

'All the points that were raised have now been answered. If there are further questions raised, of course we will answer them in the same way, trying to find an acceptable solution for each point concerned,' Martonyi said.

Read more at SkyNews

Financial holocaust looms as Germany storms Greece. Protesters in Athens are clashing with police, some throwing stones and Molotov cocktails. Greece’s coalition government managed to agree on a new austerity deal their creditors demanded. 

But Eurozone finance ministers say they want to see concrete action before the second bailout worth 130 billion Euros can be handed over. The Greek Parliament is expected to vote on Sunday. But a junior coalition member says he will not back the new plan.

RT talks to Max Keiser, financial analyst and host of the Keiser Report.

By: Jonathan Mohan

Administrator of Fertilizer Markets and Finance

 The Russian word troika means three of a kind. It can be used to refer to a sleigh drawn by three horses abreast of each other. The classic troika in the European Union comprises the Member State that is holding the Presidency of the Council, the Member State that held Presidency the previous six months and the Member State that will be holding Presidency in the future six months.

 In Europe, another entity referred to as the troika fits a different description. This entity exists within Europe and has an overwhelming influence over Greece’s financial future and by extension the outlook of the euro currency. This troika consists of members from the EC (European Commission), the ECB (European Central Bank) and the IMF (International Monetary Fund). The European Commission, headed by President Jose Manuel Barroso, has 27 commissioners who implement EU policies and spend EU funds accordingly. The ECB consists of the 17 nations that use the euro and has bought bonds of the collapsing nations of “PIGS” (Portugal, Ireland, Greece and Spain). This was done in an effort to decrease borrowing rates and restore confidence in markets. Its effectiveness is yet to be seen.

 In 1944 at the Bretton Woods conference in New Hampshire USA, the IMF was created to regulate trade between nations on the after effects of the Great Depression and World War II. This institution lends money to countries that are in deep financial trouble. Many speculate that the IMF’s main objective is not to help financially distressed nations but to keep them in debt so these governments will be submissive to the IMF. (I will deal with that in a future post)

The troika mentioned here is responsible for monitoring and recommending policies to solve the present European debt crisis. In Greece the troika is meeting with the Government to make decisions on bail-out packages and austerity measures. Greece borrowed excessively in ratio to its GDP and used its revenue through taxation with poor financial discipline. When the credit crunch of 2008 unfolded with the ‘mortgage bubble’ bursting in the US, massive shock-waves were felt by countries around the world. The countries that invested in these toxic mortgage-backed securities, crumpled financially. As a result credit rating agencies downgraded countries in the following months, one of them being Greece.

One of the reasons a country gets downgraded is due to its high debt to GDP ratio. In the case of Greece it stands at 160% today. Excessively leveraged financial institutions is another reason why Greece is in the state that it is in today. Severe austerity measures on the Greek people such as pay cuts for civil workers, pension cuts and increases in taxation measures is on the way as the troika sees this as a solution but this is just ‘kicking the can down the alley’. The Greek government has to make drastic cutbacks in unnecessary spending, implement regulations and enforce these regulations on financial institutions that hold the economy hostage because they claim they are ‘too big to fail’. The bailout packages and austerity measures recommended by the troika has not restored confidence in investors as many of them are looking at other asset classes such as precious metals to hedge against the upcoming crisis.

Will Greece’s demise begin the domino effect of falling economies within the European Union?

By: Jonathan Mohan

Administrator of Fertilizer Markets and Finance

 The Russian word troika means three of a kind. It can be used to refer to a sleigh drawn by three horses abreast of each other. The classic troika in the European Union comprises the Member State that is holding the Presidency of the Council, the Member State that held Presidency the previous six months and the Member State that will be holding Presidency in the future six months.

 In Europe, another entity referred to as the troika fits a different description. This entity exists within Europe and has an overwhelming influence over Greece’s financial future and by extension the outlook of the euro currency. This troika consists of members from the EC (European Commission), the ECB (European Central Bank) and the IMF (International Monetary Fund). The European Commission, headed by President Jose Manuel Barroso, has 27 commissioners who implement EU policies and spend EU funds accordingly. The ECB consists of the 17 nations that use the euro and has bought bonds of the collapsing nations of “PIGS” (Portugal, Ireland, Greece and Spain). This was done in an effort to decrease borrowing rates and restore confidence in markets. Its effectiveness is yet to be seen.

 In 1944 at the Bretton Woods conference in New Hampshire USA, the IMF was created to regulate trade between nations on the after effects of the Great Depression and World War II. This institution lends money to countries that are in deep financial trouble. Many speculate that the IMF’s main objective is not to help financially distressed nations but to keep them in debt so these governments will be submissive to the IMF. (I will deal with that in a future post)

 The troika mentioned here is responsible for monitoring and recommending policies to solve the present European debt crisis. In Greece the troika is meeting with the Government to make decisions on bail-out packages and austerity measures. Greece borrowed excessively in ratio to its GDP and used its revenue through taxation with poor financial discipline. When the credit crunch of 2008 unfolded with the ‘mortgage bubble’ bursting in the US, massive shockwaves were felt by countries around the world. The countries that invested in these toxic mortgage-backed securities, crumpled financially. As a result credit rating agencies downgraded countries in the following months, one of them being Greece. 

One of the reasons a country gets downgraded is due to its high debt to GDP ratio. In the case of Greece it stands at 160% today. Excessively leveraged financial institutions is another reason why Greece is in the state that it is in today. Severe austerity measures on the Greek people such as pay cuts for civil workers, pension cuts and increases in taxation measures is on the way as the troika sees this as a solution but this is just ‘kicking the can down the alley’. The Greek government has to make drastic cutbacks in unnecessary spending, implement regulations and enforce these regulations on financial institutions that hold the economy hostage because they claim they are ‘too big to fail’. The bailout packages and austerity measures recommended by the troika has not restored confidence in investors as many of them are looking at other asset classes such as precious metals to hedge against the upcoming crisis.

Will Greece’s demise begin the domino effect of falling economies within the European Union?

image

 

Standard & Poor’s has threatened to downgrade the U.S. sovereign rating, which is currently ‘AAA’, to ‘D’, meaning a default in the country’s credit worthiness, if the government fails to honor U.S. Treasury debt payments.  On this predicament, the IMF said: “At the opposite extreme, an excessively front-loaded adjustment could hurt the recovery. And a worsening of financial turmoil in European sovereign and bank debt markets could hurt U.S. growth through financial sector linkages.