Central Bank Gold Reserves

From Zero Hedge, here is a list of central bank gold reserves. Much of this central bank gold sits in bank vaults in London and New York. Think about what is going to happen to the price of gold as Venezuela and Libya start to repatriate their gold.

Notice that Italy, Portugal and  Spain are on the top 25 list. Perhaps the gold reserves of these countries should be used as collateral for future bailouts.

Canada's gold reserves are not enough to place it in the top 25. The Bank of Canada only has around 0.105 million ounces of gold (about 3.3 tons). 

Fukushima is a Big Problem

Here is a video from Australia's 60 minutes reporting on Fukushima.



The Japanese government is also finally admitting that there could be long term depopulation in the areas surrounding the plant.

Renewable Energy Breakthroughs

Here are two really cool recent breakthroughs in renewable energy.

MIT researchers have found a way to print solar panels onto a piece of paper. They can even be folded and reused! Check out the video!

Chinese researchers have developed a fuel cell that can clean water as it generates electricity.

Climate Change, Coffee and Canada

For BSUS 6600 students here is an interesting article  from the Toronto Star on the effects of climate change on Canadian business.

"Up to 60 per cent of the world’s coffee-growing regions will no longer be viable by 2050 thanks to climate change, according to a recent estimate from the Global Coffee Quality Research Initiative."

Canada does not grow coffee but the coffee example is relevant to Canadian agriculture. Think of the coffee example as the canary in the coal mine for agriculture. Even the Canadian Securities Administrators thinks there is cause for concern. According to CSA, here are some ways that climate change could affect business.

 • supply and distribution chain interruptions
 • unplanned costs, to address environmental accidents
 • loss of a license to operate
 • affordability and availability of insurance
 • changing consumer preferences

Canadian agriculture and shipping are two industries that could be particularly adversely affected.

More Gloom for Developed Economies

Here is a chart from The Economist showing how economies grew since the fourth quarter of 2007. Emerging  economies have grown the fastest while many developed economies are still below their pre-crisis level. Of the developed countries shown in the chart, Australia, Germany Switzerland and Sweden are above their pre-crisis levels. Germany would have recorded even higher growth had it not been for the poor economic performance and massive debt problems of some of its neighbors. China's economic growth is very impressive, but as my previous post indicates, the Chinese economy may be in a bubble.

Sotheby's As a Predictor of the World Economy

There is an interesting article in The Atlantic about how the art  market and in particular Sotheby's is a useful predictor of the world economy. The reasoning is that over investment, overconfidence and easy money  drive up the price of auction house bids.

"In May 2010, an anonymous bidder believed to be Chinese forked over $106 million for Nude, Green Leaves, and Bust, the most ever paid for a Picasso. Five months later, three bottles of Chateau Lafite 1869 sold at Sotheby's for 30-times their pre-auction estimate, at $230,000 per bottle to Chinese bidders. In November, an 18th century vase sold for $70 million. Eight figures for a vase."

Is the Sotheby's indicator pointing to a bubble in China?

Debt Crisis Phone In

On Monday August 8, I was on Ontario Today talking about the current global financial crisis. Here is a link to the podcast.