Nogger's Blog

22/09/11 -- The bed restraints are out again today after the Fed failed to throw billions more freshly printed dollar bills into the system. Instead it announced "Operation Twist" accompanied by a very gloomy statement warning of everything from slow economic growth to high unemployment and rising inflation.

If that wasn't bad enough ratings agency Moody's was reported to have cut the debt rating on three leading US banks: the Bank of America, Wells Fargo and Citigroup.

Remember the US debt ceiling, which got a temporary hike at thirty seconds to midnight on the day before the US government ran out of money to pay it's bills? That only lasts until the end of the month.

US Republican rebels and Democrats last night unexpectedly voted down a bill by 195 to 230 to keep the government funded past this deadline.

Across the pond meanwhile the IMF is warning that time is "running out to tackle vulnerabilities" in the European banking system and whilst the Greek government is talking the talk it remains to be seen if it can also walk the walk.

The FTSE100 is 170 points lower in early trade this morning, a fall of more than 3% with the French and Germany stock markets posting similar falls.

This my friends is all starting to look like the tip of a very large iceberg indeed.

The overnight grains aren't impressed with Globex wheat down 12-14 cents, beans down 16 cents and corn 12-16 cents lower with all months now below USD7.00/bushel. NYMEX crude is almost USD3.00/barrel lower.

European grains will also surely open well into the red when trade begins there shortly.