Not wanting to bve left out of the party, China announced a huge stimulus package over the weekend. $600bln or thereabouts is not be to sneezed at. The Chinese are taking no chances with collapsing global trade and economic activity. They have an large domestic economy and plenty of headroom to generate homegrown action.

They also have the money to do it.

As Yves notes the sums involved are getting to the point where a trillion doesn’t raise eyebrows. The Fed’s balance sheet is expanding quicker than a fast food muncher’s waistline. $2trln or will it be 3? Who knows? Who cares anymore? It’s like the end of a Monopoly game where the deals come thick and fast and the rent for landing on Mayfair (or Park Avenue) breaks your bank.

At the same time one continues to hear, in the background, that ecosystem stress is alive and well. As I noted last week there are some major concerns about the level of ecological debt. In a report by the WWF, called The Living Planet, they estimate some $4-5trln worth of ecological damage is occuring on an annual basis.

Deflation, stagflation, hyperinflation, ecological breakdown and over population.

Your cash losing its value every day as the printing presses run wild.

Time for a pause and a lie down.

Do you ever feel like life is an endless re-run of Star Wars? Maybe not but news comes that Thailand has floated the idea of a rice cartel along the lines if OPEC.

Not surprisingly the Phillipines, the world’s biggest importer of rice, expressed strong reservations saying almost 3 billion people are rice eaters and calling it inhumane. Oh dear.

One can see his point. But the rise in agricultural commodities is giving producers a great opportunity to flex their muscles for a change and they may see it as one to grasp, especially if they happen to be major importers of oil.

This type of proposal will have many importers worried especially if those imports include oil and rice. We know the impact that the formation of OPEC had on the world economy and coming at at time of global financial instability, this proposal can only add to the uncertainty.

Following a huge campaign the death sentence on Pervez Kambaksh was lifted and we finally heard from him about his experience at the hands of the Afghani justice system.

Stories about the Taliban’s treatment of women and those who try to help them are legendary in their barbarism.

Now we hear about the treatment of women in Saudi Arabia. It’s one thing to treat women with violence (we have plenty enough of that terrible behaviour in the non-Islamic world) but the dis-empowerment via lack of rights and education is really unacceptable at the most basic level. It means there really is no escape from a life of slavery.

This extremist form of Islam does a dis-service to mainstream Islam and shows how vast and wide that congregation is in terms of beliefs and practices.

You wont hear anyone in power being critical of Saudi Arabia because their strategic position is so important and of course they buy a lot of weapons and sell a lot of oil. The hypocrisy of human rights and trade is summarised nicely here.

This year it’s the 60th Anniversary of the UN Declaration on Human Rights. The UN better start pulling its finger out before it gets done under the trades description act.

With rising food prices starting to kick in globally the specter of food fights is becoming a reality (hat tip to Nevil).

Riots have been seen in many countries now and food, like climate change, is starting to be seen as a national security issue.  The Philipines is facing major rice shortages which is almost unthinkable for a country where rice is a staple. It is also causing serious unrest.

Even here in New Zealand consumers are unhappy about paying 60% more for a block of cheese which has been produced down the road.

Its a difficult situation that will take some sorting out. Producers want the best prices they can get and so will sell into the international market. Subsidies continue to distort the market.

World Bank President, Robert Zoellick has suggested a move away from direct aid and an attempt to remove barriers, create local markets and improve local production.

About time! That’s what i like about Kiva which promotes empowerment and local solutions. That is the way forward. Forget about the huge projects of the 1970s and 80s which dropped so many developing nations into the debt trap. Create a level playing field and encourage local solutions.

So New Zealand have signed the first Free Trade Agreement with China. It’s quite a big deal really and there is no doubt New Zealand has been chosen by China as an easy country to do business with and there is a fairly long and open history between the two countries.

There’s been a bit of concern over the human rights aspects of the deal and what it means for workers conditions but it’s really simple to deal with that if it is a concern of yours:

Buy goods that you are happy to buy. Buy Kiwi made or buy ethically certified. But ultimately as a consumer you have the final say on what you purchase. So ask more questions and you’ll find your enquiries work their way up the chain. Business is business and the customer is always right. Over time wokplace conditions will improve and as China becomes more wealthy they will be able to move towards standards we take for granted here.

Lance, Jim and the NBR have all commented on the ins and outs of the deal but I think it’s a positive step to open up markets as it breaks down barriers.

However consumers will always have the final word so we’ll wait and see what the actual impact is.