Market Memorandum does a good job of analysing the new IADB paper entitled, “Dealing with an International Credit Crunch: Policy Responses to Sudden Stops in Latin America.” Recommended reading for those who need to know the subject but don’t have time to wade through the whole IADB report (like me, for example).
Biiwii does his own analysis of the Gold/Silver Ratio mentioned here yesterday. As you might expect Gary does it better, though it is nice to see him basically in agreement.
This short’n’sweet report from Bloomberg probably flew under most radars this morning, but I find it very interesting. The Chinese government has approved the construction of an oil refinery in China to process 200,000bbl/d of Venezuelan crude oil. How do we know the oil will be from Venezuela? That’s because the Venezuelan stuff tends to be very heavy and sulfur-rich, which means it needs special treatment and refineries must be custom-built to handle it. For sure it’s a long-term project and the plant doesn’t even have a final location decided upon yet, but it’s a sign of the times.