Commodities
in sentence
419 examples of Commodities in a sentence
The current global growth phase is particularly good for the price of oil (and other commodities), because it is synchronized, real, and, increasingly, self-reinforcing.
Here incomes are often considerably more volatile than in richer countries, owing to heavy reliance on a few
commodities
or industries and hence higher vulnerability to external shocks, including weather-related and other natural disasters.
The four countries have very different economic structures: Russia and Brazil rely on commodities, India on services, and China on manufacturing.
The prices of basic
commodities
and charges for electricity, heating, and other vital services will be reduced to their actual production costs.
This is not just because China is slowing; years of high prices have led to investment in new capacity and an increase in the supply of many
commodities.
In response, investors have sold the US dollar and bid up equity prices and US Treasuries, and
commodities
and emerging-market assets have surged.
If, as some have suggested, the Fed is responding to fears about global growth, it would not make sense that risk assets – above all
commodities
and emerging markets – are rallying.
But high unemployment, glaring inequality, and soaring prices for basic
commodities
are also a huge factor.
Resurgent prices for
commodities
are creating huge revenues for owners of mines and oil fields, even as price spikes for basic staples are sparking food riots, if not wholesale revolutions, in the developing world.
In fact, just seven sectors – oil and gas, electricity, construction, industrial commodities, real estate, telecommunications, and mining – account for more than two-thirds of the total increase in both debt and investment.
Countries on the periphery tend to be poorer and more dependent on
commodities
than the more developed world, and they must repay more than $1.4 trillion in bank loans in 2009 alone.
The same problem occurred with other
commodities
that people tried to use for exchange, such as gems or shells; their value was too uncertain.
Sixth, global banks are challenged by lower returns, owing to the new regulations put in place since 2008, the rise of financial technology that threatens to disrupt their already-challenged business models, the growing use of negative policy rates, rising credit losses on bad assets (energy, commodities, emerging markets, fragile European corporate borrowers), and the movement in Europe to “bail in” banks’ creditors, rather than bail them out with now-restricted state aid.
Today, there are seven sources of potential global tail risk, and the global economy is moving from an anemic expansion (positive growth that accelerates) to a slowdown (positive growth that decelerates), which will lead to further reduction in the price of risky assets (equities, commodities, credit) worldwide.
Today’s Russia is a gigantic reservoir of raw materials, and its economy relies heavily on
commodities
– mining and drilling.
Those
commodities
account for over two thirds of the country’s export earnings, and are the primary source of state revenue.
As George Akerlof and I argue in our recent book Animal Spirits , the current financial crisis was driven by speculative bubbles in the housing market, the stock market, and energy and other
commodities
markets.
China, in turn, is a major market for final products, intermediate goods (including those used to produce finished exports), and
commodities.
And the most important point about the commodity price cycle is that it is indeed a cycle: Demand for
commodities
rises and falls, while supply changes only slowly.
In my recent work with Vincent Reinhart and Christoph Trebesch, I show that over the past two centuries, this “double bust” (in
commodities
and capital flows) has led to a spike in sovereign defaults, usually with a lag of 1-3 years.
There are ongoing efforts in Africa and elsewhere to internationalize a campaign that seeks to bring to galvanize public awareness of the dark fact that, in many countries, women remain mere
commodities
at the disposal of tradition.
EU policymakers (the ECB, the Commission, the majority in the Council) generally have a narrowly defined "mission": price stability, enforcing the single market, holding prices of agricultural
commodities
stable.
One mantra of recent years has been that, whatever the twists and turns of global economic growth, of
commodities
or of financial markets, “the emerging-economy story remains intact.”
Suddenly, it is extremely difficult for a non-Chinese company to compete in any worldwide market with a strategy of low-cost, low-price commodities, even if those
commodities
are precision electronics components.
Few
commodities
are out of reach for Chinese industry, because, unlike any other nation, it can simultaneously mobilize low-cost labor and high-tech automation.
Chinese growth remained relatively strong in 2009 and after, which kept the price of
commodities
high.
Weakening developing-economy incomes further is a global demand slowdown and
commodities
crash, which, as Nobel laureate Angus Deaton has demonstrated, has been disastrous for most of the developing world.
That year, Jean-Baptiste Say published his Cours Complet d’Economie Politique Pratique, admitting that Thomas Malthus had been at least half right in arguing that an economy could suffer for years from a “general glut” of commodities, with nearly everybody trying to reduce spending below income – in today’s jargon, to deleverage.
Near-zero policy rates encourage “carry trades” – debt-financed investment in higher-yielding risky assets such as longer-term government and private bonds, equities,
commodities
and currencies of countries with high interest rates.
Finally, resource-intensive developing countries may benefit from strong projected relative demand for
commodities
in the medium term.
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