The stock of bank debt and hence the risks of bad loans may therefore still be large.Mr Shan insists that excess capacity, soaring commodity prices and flat or falling prices for finished goods are eroding profit margins.
And while Ecuador is no Saudi Arabia, it may feel it is able to rely on its near neighbour, "Uncle Hugo Chávezz, to provide it with some excess cash.The commodity boom has allowed others to strike a tougher attitude towards international capital than before, most notably Russia, which has mistreated foreign investors in its oil sector.
Monetization is when NGOs are allowed to take excess U.S.-grown commodities that are not used for meeting emergency needs and sell those commodities into local markets for cash, which is then used to support the NGO's programs.
The excess demand for commodities is not effective.
Reducing supply eliminates the excess supply of commodities by throwing the burden of excess supply back on the labour market.
Specifically, why does not the excess demand for commodities induce this expansion of output and absorption of unemployment?
Basically, the answer is that the unemployed do not have the cash (or the credit) to make the excess demand for commodities effective.
However, excess inventories of commodities (e.g., gold, oil, copper) that are held as inflation hedges also represent malinvestment.
And yet, over the years years, and certainly during this administration, nothing has been done to rein in the excesses that the commodity exchanges have propagated.
"Surplus agricultural commodity" means any agricultural commodity or product thereof, class, kind, type, or other specification thereof, produced in the United States, either publicly or privately owned, which is in excess of domestic requirements, adequate carryover, and anticipated exports for United States dollars, as determined by the Secretary of Agriculture.
