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Hi Everyone!,

This is Warren B’s daughter, the one in charge of the website. I want to let everyone know what’s going on, and why everything seems so delayed.

As you may have read in the ‘Quick update‘ post, Mr Mosler had his heart cut out (a piece of the mitral valve) this morning. He is under the care of the best surgeons and nurses in the best cardiovascular hospital around (the Cleveland Clinic).

I saw him this afternoon. His surgery went very well. He was sharp, making jokes, and wanting to hear about all the macro news he had missed. He always seems to think about economics, boats, or cars; so, hearing him ask about current events was very relieving.

Tomorrow, he will leave ICU and go to ’step-down’ for a few days. As requested, I will be there with my Bloomberg-equipped laptop. New posts and USER comments may follow.

He plans to be back to the Center of the Universe on Sunday.

I apologize for the delays. Been though a lot. I traveled far to be here to support my family.

Thank you for the flowers, cards, fruit baskets, balloons, bears, phone calls, text messages, emails, and kind words!
 
 
-sada
 
 
 
ps: I could tell a few of his jokes, specifically ones about non-Euclidean geometry and going on a saline trip, but I think you’d have to know him to fully appreciate.

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The financial sector facilitates private sector deficit spending that helps sustain output.

Without it, the government has to increase its deficit spending to sustain output.

Bottom line, all else equal, a less effective financial sector means lower taxes.

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The monetary system will burn up the world’s food supply for fuel until the marginal individual about to starve to death has enough political influence to stop the process.

I’m pretty sure that’s not the millionth one to die of starvation. And probably not the ten millionth.

As more and more acreage goes to biofuels, expect the real price of food to continue to rise.

Lula and Indonesian president pledge biofuel cooperation

by Zulhefi

(AFP) Brazilian President Luiz Inacio Lula da Silva and his Indonesian counterpart pledged cooperation on biofuels during talks here Saturday in a bid to take advantage of surging oil prices.

Lula and President Susilo Bambang Yudhoyono signed off on an agreement to share knowledge on biofuel technology after meeting at Jakarta’s presidential palace.

The Brazilian leader called spiralling global commodity prices a “great opportunity” for developing countries such as Indonesia and Brazil, both of which are major producers of biofuel.

“The developing countries that have the characteristics that Indonesia and Brazil have should not analyse this crisis as only a problem. We have to see this moment as a great opportunity,” Lula said.

“We have land, we have sunlight, we have water resources, we have technology and, thanks to God, the poor of the world have started to eat more, three meals a day, so they will demand more food production.”

The two leaders signed memoranda of understanding that would see the countries exchange experts and students to share knowledge on biofuels. Yudhoyono will also make an official visit to Brazil in November.

“In the energy sector, both countries are cooperating in the field of alternative energy. Brazil has succeeded in developing bio-ethanol and Indonesia can learn from Brazil to develop bio-ethanol,” Yudhoyono said.

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Dollar Index vs US Exports

Right - seems to me the dollar will fall until it’s at a level where the trade gap goes to about zero. So even though exports are way up and the trade gap down, there could be a lot more to go.

A nation can only run a trade deficit to the extent non-residents (governments and private sector agents) desire to net accumulate its financial assets (or buy its domestic assets such as real estate).

Seems to me Paulson, Bush, and Bernanke have successfully kept the world’s CBs, monetary authorities, and portfolio managers from actively accumulating USD financial assets.

Doesn’t seem like jawboning is going to alter foreign ’savings desires’ apart from short term trading responses.

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