Before popping champagne, a review of the chart here: http://tinyurl.com/3xh2uhd indicates that the commodities have been in a sideways consolidation move for the entire year. The main driver has been the strength of the U.S. Dollar which has stifled the appreciation of commodities priced in it. All eyes are on Europe and the Euro. Further Euro declines could strengthen the Dollar as a port of safety and depress commodity prices. If attention shifts back to the fiscal problems in the U.S. and the Dollar resumes its multi-year downtrend, commodities will rise to compensate for the loss of Dollar purchasing power.

"Euro zone turbulence is keeping global commodity prices in check, helping Kenya to cut its import bill and slowing down the pace of inflation that is offering consumers much needed relief in the marketplace.

The price of oil, Kenya’s top import item, has remained steady at below $80 a barrel, having dropped from a high of $83 in April on the back of subdued demand in key European and North American markets.

That has helped cut the oil import bill by Sh28.8 billion (or 61.7 percent of the total bill) besides cooling off prices at the pump...."

Read more:

http://www.businessdaily.../-/vywtx6z/-/index.html

Better late than never. The black gold of Chepkube as it was known in the '70s coffee boom is simmering hot. Long suffering coffee farmers will be smiling to and from the bank. Eaagads Ltd and Sasini Tea and Coffee will thank their lucky stars that unlike Kapchorua Tea, they did not capitulate and sell their coffee farms at the low of the market.

"Coffee prices on Friday hit their highest level in 12 years on the back of low availability of premium Arabica coffee from key producer Colombia, after a string of disappointing crops in the Latin American country.

In New York, ICE September Arabica coffee jumped 3.2 per cent to 178.75 cents a pound, the highest since February 1998. In London, Liffe September lower quality robusta coffee rose 3 per cent to $1,810 a tonne...."

Read more:

http://www.ft.com/cms/s/...-9ebd-00144feab49a.html

The Middle Kingdom, soon to brush aside Japan has one goal in mind, the throne of global dominance. The next generation will have to learn Chinese as they will be their masters.

http://tinyurl.com/2udyeqk

"A senior Beijing official’s reference to China as the “world’s second-largest economy” has sparked excited speculation that Asia’s new powerhouse may have already reached a long-looming milestone by surpassing Japan.

China’s rapid recent growth has made it increasingly likely that its gross domestic product, in US dollar terms, will be larger this year than Japan’s. However, the vagaries of international currency movements mean such a result is far from assured...."

Read more:

http://www.ft.com/cms/s/...-a7a4-00144feab49a.html

Fundamental analysis of the real estate market in the U.S. will argue for increasing demand from a growing population that should provide an upward momentum to housing prices. Therefore, the common mantra that housing or real estate prices always rise should hold water. Why is it then that according to the article, house prices in former hotspots of Miami, Las Vegas and Florida are down by between 59% and 80%?

The simple answer, dear reader, is public confidence.

All assets rise and fall upon the fickle whim of public confidence. Based on studies by Princeton Economics International, the bull market in U.S. house prices began in 1955 and ended in 2007 with a bubble top marked by market euphoria. The decline could last 10 - 23 years as in the case of Japan.

"The housing bust has made owning a home a lot more affordable -- but in some places, prices are extraordinary; you can buy a nice condo for less than the cost of a new family car.

Some cities have dozens of attractive condominium listings selling for $50,000 or $25,000. There are some selling for less than a new Toyota Corolla. And these are not derelict hovels in crime-ridden communities: These homes are often in move-in condition and located in nice neighborhoods.

"Not to sound like a salesman, but there are some real bargains out there," said Kevin Berman, a broker with Bankers Realty Services in Fort Lauderdale, Fla."

Read more:

http://finance.yahoo.com...nnm-1234989345.html?x=0

With attention in Forex markets shifting from the sovereign woes in southern Europe to the brink-of-broke states in mainland United States, the IMF is angling itself as backer to a One World Currency. Inorder to gain credibility, the shape and form of the IMF would have to change to become more transparent. The conclusion of the article: "It is understood that some of the ideas discussed are unlikely to materialize in the foreseeable future absent a dramatic shift in appetite for international cooperation." indicates that action will only take place in the wake of another crisis. Politicians never change.

"FT Alphaville missed this IMF paper when it first came out in April, 2010.

Authored by Reza Moghadam, director of the IMF’s strategy, policy and review department, it discusses how the IMF sees the International Monetary System evolving after the financial crisis.

We’ll cut to the chase and draw readers’ attention to the final bubble in the following chart, found on page 4:

IMS blue print - IMF

Which means, in the eyes of the IMF at least, the best way to ensure the stability of the international monetary system (post crisis) is actually by launching a global currency...."

Read more:

http://ftalphaville.ft.c...al-currency-yes-really/