By Bob Blandeburgo Associate Editor Money Morning

Stimulus measures in Japan helped the world’s second-largest economy grow at its fastest pace in more than two years, but it’s unlikely policymakers will reduce spending despite the nation’s rapidly growing debt.

Gross domestic product (GDP) in Japan grew at 4.8% annual rate in the third quarter, surpassing all the forecasts of 20 economists polled by Bloomberg News. That follows a revised gain of 2.7% in the three months ended June 30, according to Japan’s Cabinet Office. Japan’s economy grew 1.2% on a quarterly basis.

“The turnaround in public investment has definitely contributed to the rebound in GDP, so if they do start to cut it’ll weigh on growth,” Hiromichi Shirakawa, chief Japan economist at Credit Suisse Group AG (NYSE ADR: CS), told Bloomberg.

Stimulus measures around the world helped Japan’s exports grow 6.4%, but as global economies withdraw stimulus measures,

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Why are the prices of so many commodities rising in an economy that seems to remain quite weak?

% change butter35 coffee21.8 cocoa20.2 copper89.1 corn-8.3 cotton38.6 gold32.1 hogs2.7 oats13.4 oil63.2 lead81.9 palladium75.9 platinum61.7 silver59.1 steel-0.9 sugar73.6 tin22.5 wheat-26.6 zinc55.4 average37.4 euro12

The table at the right summarizes the percent change between January 6 and November 11 in the cash prices of 19 commodities reported in the Wall Street Journal (downloaded via Webstract). The average commodity in this list has appreciated 37% since the start of the year.

A recent paper by Ke Tang and Wei Xiong documents an increasing tendency for commodity prices to move together over the last few years. A decade ago, what happened to oil prices was largely unrelated to movements in most other commodity prices. The graphs below show how the correlations between oil prices and

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Ever come across something so brilliant you wish you had thought of it yourself? Well that's what Seth Hettena has just put together, via sourcing from Vedomosti: an aggregation of the preferred timepieces worn by high-level Russian officialdom as a possible proxy for corruption. There are several questions raised from this little survey, not the least of which is: to those of you contending that Igor Sechin is the real master string-puller, I ask you, have you considered Moscow's Deputy Mayor Vladimir Resin? More importantly, could any of these men hold it together under the mind-bending microscope of Vesper Lynd?

A partial list of who prefers which wristwatch:

Vladimir Putin: Blancpain, Leman Aqualung Grande Date, $10,500

Dmitry Medvedev: Breguet, Classique Moon

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This post provides links to a number of interesting articles I have read over the past few days that you may also enjoy.

• Daniel Gross (Newsweek): The greatest trade ever, November 10, 2009. How hedge fund manager John Paulson bet against the real estate bubble and made $15 billion in a single year.

• abc News: SocGen’s top analyst sees market lows next year, November 9, 2009. Albert Edwards, a top analyst with French bank Societe Generale, expects global markets to hit a new low in 2010, adding that he would not be surprised if the global economy enters another recession next year. Edwards, one of the leading equities bears and a long-term critic of the policies of Western central banks, is skeptical of popular opinion that extreme policy response will safeguard the West against a repeat of Japan’s lost decade of the 1990’s.

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At the G20 finance summit in St Andrews, the problem of unemployment was raised as well as 'uneven growth'; Russian Finance Minister Alexei Kudrin has said that 'exit strategies' will have to be considered.  Kudrin apparently believes that a second wave of crisis is unlikely.  Goldman Sachs will not become the key adviser to Rusal on its intended $30 billion stock-market listing, a decision which is 'mutual'; the Bank of America Merrill Lynch will take its place.  Apparently Goldman Sachs may have been deterred by Rusal owner Oleg Deripaska's problems in the US, fueled by allegations that he is involved with organized crime.  The government has nearly completed the initial development of an agency designed to help provide subsidies for exports loans and regulate export tariffs.  Mitsubishi has acquired a 40% stake in Russia's Rolf Import.  ...

'We will have to take into account this style of dealing with partners in the future, though this scornful approach toward partners mainly affects the Europeans, not us':  Putin reacts to the aborted GM deal.   Finance Minister Alexei Kudrin was in London yesterday to discuss the envisaged issue of $17.8 billion in sovereign eurobonds - the selling of which is a core part of the government's deficit-reducing strategy.  A bond issue would 'be likely to draw keen interest from investors because Russia,[...] is in far better shape financially than a decade ago' says the New York Times.   Kudrin is planning changes to the budget which would see funds originally designed to recapitalize banks redirected to flagging industrial giants (such as Avtovaz) and the jobless, as the economic situation has been less harsh than expected.  In ...

Tracing the policy movements of Presidential power-handler Vladislav Surkov is rather like witnessing a three-point turn in a dark alley - as a piece in the Power Vertical points out today.  Whilst transparency is the last thing once can expect from the Kremlin's shadowy ideologue, his moves of late are dizzying analysts.  Brian Whitmore identifies some of Surkov's recent twists - from the motives for his alleged involvement in the Duma walkout - to the matter of his oscillating stance on liberalizing political structures to aid economic development.Whitmore quotes from a Stratfor.com analysis, which suggests that Surkov's maneuvring is underpinned by a familiar motive: power rivalry.  In a recently published four-part series titled "The Kremlin Wars," Stratfor.com offers up one possible answer.According to Stratfor, the Kremlin is divided into two roughly ...

The ever-positive Vladimir Putin is forecasting 8% inflation for the coming year, which would be a 'post-Soviet low'.  The government will sell tons of its gold stockpile this year to cover its budget deficit and help it fund other supporting measures such as Moscow's $570 million federal loan.  Private lender Alfa Bank is working on debt restructuring terms for giants BasEl and RusAl, and threatening to take the latter to court over unpaid debts.  St Petersburg Bank plans to raise up to $150 million selling additional preference shares to cope with its losses.  Reuters has compiled a timeline on Russia's bad loans.  'For all of the vaunted stability of the current regime, Russians still don't believe in the permanence of their system enough to invest into their society,' comments this reporter in a piece about ...

Avtovaz is on the brink of bankruptcy, Sergei Stepashin, the head of State Audit Chamber has informed Reuters.  Russia's government has stepped up the pressure on Renault to assist its embattled partner to stay afloat.  According to Ria-Novosti, the Industry Ministry has concluded that the government should not bail out the Lada-maker.  Industry and Trade Minister Viktor Khristenko has apparently said that sales of passenger cars may drop by 60% this year.  Finance Minister Alexei Kudrin has been quoted in Forbes as saying that the ruble is likely to remain stable over the next three years, but the issue of joblessness will prevail for at least a year.  The Federal Court Marshals Service is teaming up with Sberbank to create a new way of facilitating debt payments - allowing individuals to pay off loans via ATMs.  Kraft Foods has ...

Russia has denied yesterday's report in the Independent that the country discussed changing the dollar as the global currency of oil; France has called it speculation.  Iran's finance minister Shamseddin Hosseini says he has occasionally discussed a move away from the dollar with other nations, but such a shift would require agreement from everyone.  France and Kazakhstan have signed a flurry of deals: Total will acquire 17% and GDF Suez 8% of the Caspian Sea Khvalynskoye natural gas field.  Naftogaz says that it has paid in full its September bill.  Despite a catastrophic financial situation, the company is ready to meet its gas obligations this winter.  Reuters has a feature on the Nenet tribespeople of the Yamal Peninsula for whom Gazprom's plans for Arctic plunder are a threat to their very existence.  According to ...