U.S. Housing Slowdown Will Lead Fed to Cut Rates, McCulley Says
``This whole subprime crisis has been more of a Wall Street event than it has been a Main Street event, but that's going to change,'' he said. ``You've got overpriced homes and inventory that's half the distance to the moon. Nationwide deflation in home prices'' will follow.

Gulf dead zone to be biggest ever The UN believes the algal blooms are having a significant impact on commercially valuable fish stocks.

Quick Overview

• U.S. consumer prices rose 0.2% in June, up 2.7% YoY.
  

• U.S. housing starts rose 2.3% from May's pace. YoY housing starts are down 26%.
  
  
  
• China's gross domestic product expanded 11.9 % YoY -- the fastest pace in 12 years.
  

• The U.S. Department of Energy said that:
  Supplies of crude oil fell 500,000 barrels last week to 352.1 million barrels.
  Supplies of gasoline fell 2.3 million barrels
  Supplies of heating oil fell 700,000 barrels.
  Gasoline demand rose 1.3% YoY
  Distillate demand rose 4.4% YoY.
  
  

• MoM Consumer prices in Canada fell 0.2%. YoY prices rose 2.2%

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• U.S. Producer prices fell 2% in June, however the core rate rose 0.3%.
  
  

• YoY Swiss Retail Sales rose a stronger then exp. 7.2% vs 4.5% from May.
  
  

• YoY UK CPI rose 2.4%.
  
  

• Japan's tertiary index of services dropped 0.1% in May – more than expected.
  

• Diesel fuel’s U.S. average price rose 4 cents in the past week to $2.889 a gallon, the highest since September.
  

• Rains in the Midwest are improving prospects for the U.S. crop.

The Ron Paul Presidential Campaign, A Self-Organizing Complex System
The scientific community that has been studying complex systems intensely for the last twenty-five years is familiar with this sort of phenomenon, but this is perhaps the first time that it has been made apparent on such a large scale.

Why They Won’t Impeach
If one takes the trouble to examine the matter from the perspective of the machinations that dominate all political behavior, the answer becomes apparent. Though Republicans and Democrats have their personal and minor policy differences, they are in agreement on one basic point: their “bipartisan” support for the preservation and aggrandizement of the power of the state. They understand – as do members of the mainstream media – that their principal obligation is to serve the well-being of the political power structure that long ago laid uncontested claim to the ownership of modern society.

Quick Overview

• The New York Federal Reserve's Empire index, rode from 25.8 to 26.5 in July,
  

• YoY Consumer prices in the Euro zone rose 1.9%.
  

• China suspended imports of some chicken and pork from Tyson Foods because of alleged food contamination problems.
  

• The USDA said that:
  64% of the corn crop was rated good to excellent, down from 70% a week ago.
  62% of the soybean crop was rated good to excellent, down from 65% a week ago.
  76% of the spring wheat crop was rated good to excellent, down from 78% a week ago.
  55% of the cotton crop was rated good to excellent, the same as a week ago.
  

Quick Overview

• U.S. retail sales were down 0.9% in June
  

• U.S. business sales were up 1.3% in May
  

• New Zealand retail sales rose 1.2% in May
  
  

• University of Michigan's index of consumer sentiment increased from 85.3 to 92.4 in July, more than expected.
  

• The International Energy Agency anticipates world oil demand to increase 2.2 million barrels to 88.2 million barrels per day in 2008.
  

• Iran has asked Japanese oil wholesalers to make payments for their oil purchases in the yen instead of the U.S. dollar.
  

Corn Rises on Speculation Hot, Dry Weather to Reduce U.S. Crop
Crops west of the Mississippi River might face increased stress as the hottest, driest weather since at least 1995 starts July 18 and extends into August, said Fred Gesser, senior global meteorologist for Planalytics Inc. in Wayne, Pennsylvania. Temperatures may reach 102 degrees Fahrenheit (39 Celsius) beginning July 22, Gesser said.

Quick Overview

• The S&P 500 and DOW closed at a new high
  

• U.S. Trade deficit rose 2.3% in May.
  

• YoY U.S. Foreclosures rose 87% in June.
  

• Bank of Japan kept rates at 0.5%.
  

• YoY Japan's current account surplus widened 31.1 percent in May.
  

• Japan’s Consumer sentiment at 30-month low.
  

• YoY Japan’s Corporate bankruptcies rose 32.4 percent in June.
  

• Japans Wholesale inflation rose 2.8% in June the BOJ said.
  

• The unemployment rate in Australia rose from 4.2% to 4.3%
  

• GDP in the Euro area rose 3.1% QoQ.
  

• YoY Industrial production in India rose 11.1%
  
  

• The USDA's 2007-2008 U.S. ending stocks estimate of:
• Corn was raised from .997 to 1.502 billion bushels.
• Soybeans were lowered from 320 to 245 million bushels.
• Wheat was lowered from 443 to 418 million bushels.
• Sugar was lowered from 1.417 to 1.377 million tons.
• Cotton was lowered from 6.70 to 5.90 million bales.
  

• The USDA's 2007-2008 world ending stocks estimate of:
• Corn was raised from 92 to 108 million tons.S
• Soybeans were lowered from 54 to 52 million tons.
• Wheat was lowered from 117 to 112 million tons.
• Cotton was lowered from 51.2 to 50.8 million tons.
  

• The latest 6 to 10-day forecast from the National Weather Service shows a hotter and drier outlook for most of the Midwest.

Quick Overview

• Japan's consumer confidence index fell from 47.3 to 45.0 in June
  
  

• The U.S. Department of Energy said that:
  Supplies of crude oil fell 1.4 million barrels to 352.6 million barrels.
  Supplies of gasoline rose 1.2 million barrels
  Supplies of heating oil rose 1.1 million barrels.
  Gasoline demand rose 1.4% YoY
  Distillate demand rose 3.6% YoY.
  
  
  

Report: Wars Cost US $12 Billion a Month

U.S. Navy Deploys Third Aircraft Carrier To Persian Gulf MANAMA (Reuters) - The U.S. Navy said on Tuesday it had sent a third aircraft carrier to its Fifth Fleet area of operations, which includes waters close to Iran, whose row with the West over its nuclear plans has stoked regional tensions.

Quick Overview

• Standard and Poor's said that $12 billion of securities are on negative watch because of the poor performance of subprime loans.
  

• The Federal Reserve Board should lose some if its consumer protection powers if it does not craft tougher rules on mortgage lending, a senior House Democrat said.
  

• U.S. wholesale sales rose 1.3% MoM
  U.S. inventories rose 0.3% MoM
  

• Canada housing starts in were at an annual rate of 225,500 units in June, down 4% MoM.
  The Bank of Canada raised interest rates from 4.25% to 4.50%.
  

• The Vietnam Coffee and Cocoa Association expects Robusta coffee crop to total 15 million (60-kg) bags in 2007-2008, down 3% YoY.
  
  

Quick Overview

• Japan's machinery orders were up 5.9% MoM.
  

• U.K.'s producer prices were up 0.2% MoM and up 2.4% YoY.

• Ethanol Poised to Reverse Plunge as Demand Lifts

In London’s Financial World, Carbon Trading Is the New Big Thing
“Carbon will be the world’s biggest commodity market, and it could become the world’s biggest market over all,” said Mr. Redshaw, the head of environmental markets at Barclays Capital.

Quick Overview

• U.S. Unemployment rate was unchanged in June at 4.5%.
  

• Canada’s unemployment rate remained at 6.1% in June
  

• Industrial production in the U.K. was up 0.6% in May.
  
  

• July 6 (Bloomberg) -- Sugar, corn, wheat and cotton may be among
  the best commodity investments in the next one to three years driven by biofuel demand and rising incomes in China and India, according to UBS AG, the world's largest money manager.
  
  

• Newmont Mining rose by more than 5% after that company announced it was eliminating its hedging program.
  
  

• A private forecaster pegs the 2007/08 winter wheat crop at 1.583 billion bushels, versus the June 11th USDA forecast of 1.61 billion bushels. The hard red wheat production is forecast at 989 million versus the USDA figure of 1.03 billion.
  
  

Plague of bioweapons accidents afflicts the US There are now 20,000 people at 400 sites around the US working with putative bioweapons germs, says Hammond, 10 times more than before the terrorist attacks of 9/11. Some scientists have warned for years that more people handling dangerous germs are a recipe for accidents.

Quick Overview

• The Institute of Supply Management's index of U.S. services rose from 59.7 to 60.7
  

• The Bank of England increased its interest rate from 5.50% to 5.75%,
  

• Retail sales volume was up 0.4% in the Euro zone.
  

• The U.S. Department of Energy said that:
• Supplies of crude oil rose 3.1 million barrels to 354.0 million barrels.
  Supplies of gasoline rose 1.8 million barrels
  Supplies of heating oil rose 300,000 barrels.
  Gasoline demand was up 1.2% YoY
  Distillated demand was up 3.4% YoY.
  

Updates resume July 5