Interdependence Tidbits

We will once again try, and try hard, to look away from domestic political events just long enough to reinforce the central theme that the world is not our own anymore.

Interdependence tidbits:

When reading the Wall Street Journal's "Media and Marketing" column last Thursday, we were momentarily suprised to learn that "China's ad market is valued at more than $60 billion annually...and is expected to overtake Japan's soon as the world's second largest in spending terms after the U.S."

Given the general feeling that marketing is akin to fluffery, (when done wrong, as it often is), one becomes amazed at the amount of money devoted to this endeavor with China as the target. Simply stunning. The article talks about the arrival of foreign advertising firms and rising incomes altering the expectations of Chinese consumers (as in, wanting less mediocre commericals).

Nor can you overlook the fall in various commodities this past week, particularly soybeans. Jeff Wilson reports on Bloomberg.com (3/7) of a canceled soybean purchase by China
due to a huge domestic drop in price, and thus:

Soybeans tumbled the maximum allowed by the Chicago Board of Trade, capping the biggest weekly loss since July 2005, after China canceled some contracts to buy soybean oil.

We are used to seeing foreign markets following our lead whether up or down, and here, the polarity is reversed.

Interdependence rising. Along with incomes worldwide.

The article continues:

Rising incomes in countries such as China, India and Brazil have increased demand for meat, dairy products and manufactured food products. Supplies of soybeans and vegetable oil have declined as record energy costs boost demand for biofuels made from oilseeds.

All of this is rather obvious to those who by employment or interest choose to stay abreast of this changing world. But the speed of change is sure to catch someone, possibly the individual investor, possibly the next president, possibly America, totally off-guard.