Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
but I never put 2 + 2 together. Of course food prices have shot up precisely because trade finance costs have risen. Duh.

Frankly, I've been too busy this past month with research for this diary to pay this matter proper attention.

Thank you.

"It Can't Be Just About Us"
--Frank Schnittger, ETian Extraordinaire

by papicek (papi_cek_at_hotmail_dot_com) on Mon Oct 27th, 2008 at 06:15:00 AM EST
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It's not just trade finance costs. Trade itself is stopping because of the inability to make large cross-border payments.

India Times: Commodity traders hit by arrest of interbank lending (27 October, 2008)

The credit crisis has begun to take a toll on the real economy, slowly but surely. Among the sectors feeling the pinch, is commodities, though traders are not openly expressing their angst.

A large south-based trader of edible oils has been unable to procure de-gummed soybean oil from a South American exporter, whose bank refused to discount the latter's bill owing to shortage of dollars.

"Our banker, State Bank of India, issued a letter of credit (LC) to the exporter's bank in South America, but the bank refused to negotiate the LC and pay the exporter. We will now have to negotiate with another banker to get the consignment totalling 1.5 million tonne of de-gummed soybean oil," said a company source.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Carrie (migeru at eurotrib dot com) on Mon Oct 27th, 2008 at 06:53:25 AM EST
[ Parent ]
Article today in dead-tree paper about Iceland and their difficulties to keep trade going, seeing how the UK confiscates their money. Terrorists the lot of them, though they seem to disagree.

Icelanders are NOT terrorists

Gordon Brown unjustifiably used the Anti-terrorism, Crime and Security Act of 2001 against the people of Iceland for his own short-term political gain. This has turned a grave situation into a national disaster, affecting families in both Iceland and the United Kingdom. Help us avert greater damage by signing this petition now.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se
by A swedish kind of death on Mon Oct 27th, 2008 at 09:54:22 AM EST
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