Highlights
A third railroad union, the Brotherhood of Railroad Signalmen, has voted to reject the tentative agreement with the National Carriers’ Conference Committee. If the railroads go down with the barges down... possible Black Swan event. Will Biden let the railroad unions strike? President Truman did not and he was a Democrat also.
Reuters reports that 800,000 people were placed on covid lockdown in Wuhan, China and new daily cases yesterday were in excess of 1,000 across China, sending over 200 million people into varying degrees of lockdown. That is bearish soybeans and, to a lesser extent, corn.
After two quarters of contraction, the American economy expanded 2.6% in the third quarter. The recession is over, but the Fed is doing its best to control inflation by putting the US back into recession. The Fed sees the much stronger economy as a reason to choke us with higher interest rates because, in their minds, a good economy means higher inflation. That is Keynes economics versus Friedman (supply side) economics.