Biofuels Increase Food Prices by 75% According to World Bank. They are Holding the Report for Fear of Embarassing President Bush.

MWF (Friday) Briefing:

The Dow ended Wednesday 20.8% below its close of Oct. 10 set the preconditions for a Dow Theory sell signal. It's more than a regular Bear Market.  Also, a confidential World Bank report found that biofuels have spiked food prices significantly, but has not yet released the report since it would embarrass President Bush.  It's too late now...have a happy 4th of July to everyone stateside.

• Biofuels have forced global food prices up by 75% - far more than previously estimated - according to a confidential World Bank report obtained by the Guardian. The damning unpublished assessment is based on the most detailed analysis of the crisis so far, carried out by an internationally-respected economist at global financial body. Guardian

• China is toughening capital controls with a new system for monitoring funds brought into the nation by exporters.  as it seeks to control the surging fund inflows that are complicating the government's fight against inflation. WSJ

• J. Hamilton's paper examines the factors responsible for changes in recent crude oil prices by reviewing the statistical behavior of oil prices, theory, and features of petroleum demand and supply. Also discussed is the role of commodity speculation, OPEC, and resource depletion.