Thursday, March 31, 2011

The Next Crisis Will Be Ten Times Bigger

By John R. Talbott

If we don't come to understand the underlying reasons for the current crisis and enact real reform of Wall Street and the banks and get big corporate money out of our elections we face a future that is truly frightening.

I don't think people realize how widespread the government sovereign debt crisis is going to be. We have all heard about Greece, Iceland, Ireland, Portugal and Spain, but it is the biggest, richest and most advanced countries of the world that will be tested the most. It is the advanced countries' banks that have lent these troubled sovereign credits money and it will be their governments who will go into further debt to bail out both the countries that get into trouble as well as the banks in the advanced countries that lent to them.

It is unfair to ask American workers to stay on the job past 70 years of age to solve this financial problem as they didn't cause it. Similarly, it makes no sense to ask average American taxpayers to step up and bail out bank creditors at 100 cents on the dollar as it was these creditors who agreed to take this repayment risk and received the rewards over time in increased interest payments from financing these corrupt banks. Americans cannot just ignore this problem and hope it goes away.

http://www.huffingtonpost.com/john-r-talbott/the-next-crisis-will-be-t_b_842796.html

Oil climbs to highest since 2008 on Libya conflict

AP

Benchmark West Texas Intermediate crude rose $2.45, more than 2 percent, to settle at $106.72. At one point it hit $106.83, the highest it's been since September, 2008. Brent crude rose $2.25 to settle at $117.20 per barrel.

Libya's oil exports, which went mainly to Europe, are shut down. The rebels have said they plan to start shipping oil again, although how soon that could happen is unclear. Libya exported only about 1.6 million barrels of oil a day, or 2 percent of global consumption, but energy traders worry that unrest will spread across the region to disrupt shipments from OPEC countries like Saudi Arabia and Iran. The Saudis are the biggest oil producers in the world, supplying about 8.4 million barrels a day. Iran produces more than 4 million barrels a day. Anti-government protests in those countries so far have been limited, although unrest continues in Syria, Bahrain and Yemen.

http://finance.yahoo.com/news/Oil-climbs-to-highest-since-apf-1947152419.html?x=0&sec=topStories&pos=main&asset=&ccode=

Wal-Mart CEO Bill Simon expects inflation

By Jayne O'Donnell

U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday.

"We're seeing cost increases starting to come through at a pretty rapid rate."

"Every single retailer has and is paying more for the items they sell, and retailers will be passing some of these costs along," Long says. "Except for fuel costs, U.S. consumers haven't seen much in the way of inflation for almost a decade, so a broad-based increase in prices will be unprecedented in recent memory."

http://www.usatoday.com/money/industries/retail/2011-03-30-wal-mart-ceo-expects-inflation_N.htm

Taking Old Oil from Crankcase to Gas Tank

By Chuck Squatriglia

Billions of gallons of motor oil are drained from engine crankcases each year, and only some of it is reused. Much of it is simply thrown away or burned. But that old oil could find new life as fuel for your car.

Researchers at University of Cambridge have developed a process that uses microwaves to recycle old motor oil into gasoline-like fuel for use in conventional vehicles. They claim the process has “excellent potential” for commercial use.

His team mixed the old oil with microwave-absorbent material, then heated the mixture with microwaves. The pyrolysis process converts nearly 90 percent of a waste oil sample into fuel, and it has been used to produce conventional gasoline and diesel.

http://www.wired.com/autopia/2011/03/taking-old-oil-from-crankcase-to-gas-tank/

Obama rolls out plan to cut oil imports

By Alan Silverleib

President Barack Obama outlined a plan Wednesday to cut America's imports of foreign oil by a third.

"Over the past two years the administration has taken what can only be described as a war on American energy," he said. "It's canceled dozens of drilling leases, it's declared a moratorium on drilling off the Gulf Coast (and) increased permit fees. ... In short, it's done just about everything it can to keep our energy sector from growing."

Sen. John Cornyn, R-Texas, released a statement arguing that "the American people need action from President Obama, not another lecture, especially as skyrocketing gas prices are crippling middle-class families and small businesses."

Obama's policies "have exacerbated the economic pain Americans are feeling at the pump," Cornyn argued. "It is time for the president to recognize the damage his policies are having on the economy, take his boot off the neck of domestic energy producers, and unlock our domestic energy potential."



http://www.cnn.com/2011/POLITICS/03/30/obama.energy/index.html?eref=rss_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fcnn_topstories+%28RSS%3A+Top+Stories%29

Wednesday, March 30, 2011

Obamageddon: Signs that we are on the verge of another Great Depression

By Wayne Allyn Root

The first sign is the fact that Bill Gross, head of the world’s largest bond fund (PIMCO), has just sold all of his domestic government bond holdings. Every single dollar. Do you have any idea what that means? In my opinion, Bill Gross is one of the ten smartest men on this planet. He knows everything about the economy and bonds. His sell-off indicates he believes governments at the local, state and federal level are on the verge of bankruptcy.

The next [sign]of economic disaster is even more ominous.

Tuesday, March 29, 2011

Food prices going up: Portion sizes coming down

Food Inflation Kept Hidden in Tinier Bags

Chips are disappearing from bags, candy from boxes and vegetables from cans.

As an expected increase in the cost of raw materials looms for late summer, consumers are beginning to encounter shrinking food packages.

With unemployment still high, companies in recent months have tried to camouflage price increases by selling their products in tiny and tinier packages. So far, the changes are most visible at the grocery store, where shoppers are paying the same amount, but getting less.

Most companies reduce products quietly, hoping consumers are not reading labels too closely.

http://www.nytimes.com/2011/03/29/business/29shrink.html?_r=4&ref=business

For those of you who still haven't seen it yet: Stansberry & Associates "End of America Video"

Stansberry & Associates Investment Research, one of the largest and most recognized investment companies in the world, produced this video regarding America's financial future. While many of the facts are sound, the presentation is a bit dramatized. Listen & learn, but take with salt.

I reference our success and experience with Wall Street's [2008] crisis because we believe there is an even bigger crisis lurking... Something that will shake the very foundation of America.

I want to talk about a specific event that will take place in America's very near future which could actually bring our country and our way of life to a grinding halt.

This looming crisis is related to the financial crisis of 2008 but it is infinitely more dangerous.

A Man-Made Energy Crisis: Obama’s policy is working . . . to raise energy costs.

Gas is well over $4 a gallon in most places in California — and soaring elsewhere as well. But are such high energy prices good or bad? That should be a stupid question.

It seems as if paying lots more for electricity and gas, in European fashion, was originally part of the president’s new green agenda.

“Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.” - Secretary of Energy Steven Chu

“Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket.” - Obama

“So, if somebody wants to build a coal plant, they can — it’s just that it will bankrupt them, because they are going to be charged a huge [fee]" - Obama

These utopians have no idea that without reasonably priced fuel and power, the self-employed farmer cannot produce food. The private plant operator cannot create plastics. And the trucker cannot bring goods to the consumer.


http://www.nationalreview.com/articles/262941/man-made-energy-crisis-victor-davis-hanson

Monday, March 28, 2011

WTF post of the week: Iranian Video Says Mahdi is 'Near'

Ok, whether you believe in this or not, apparently the Iranian government does, or at least is willing to use it to drum up a good old fashion war against the US and Israel. Lets see if this story gets debunked or if Ahmadenijad really wants to start a war.


New evidence has emerged that the Iranian government sees the current unrest in the Middle East as a signal that the Mahdi--or Islamic messiah--is about to appear.

CBN News has obtained a never-before-seen video produced by the Iranian regime that says all the signs are moving into place -- and that Iran will soon help usher in the end times.

While the revolutionary movements gripping the Middle East have created uncertainty throughout the region, the video shows that the Iranian regime believes the chaos is divine proof that their ultimate victory is at hand.

'The Coming is Near'

The propaganda footage has reportedly been approved at the highest levels of the Iranian government.

The video claims that Iran is destined to rise as a great power in the last days to help defeat America and Israel and usher in the return of the Mahdi. And it makes clear the Iranians believe that time is fast approaching.

Kahlili says The Coming is Near will soon be distributed by the Iranian regime throughout the Middle East. He explained that their goal is to instigate further uprisings in Arab countries.

http://www.cbn.com/cbnnews/world/2011/March/Iranian-Regime-Video-Says-Mahdi-is-Near-/

Gold Replacing Dollar as World’s Reserve Currency?

$105 per barrel oil. Cotton prices at record levels. Food prices at 2008 highs. Typically, such commodity price increases would send central banks running to the U.S. Dollar to secure the value of their savings. After all, the dollar has been the reserve currency since World War I.

But not this time.

Central banks are shedding dollars, reducing their holdings by about $9 billion in previous quarter. What are they buying instead? Gold.


http://www.cnbc.com/id/42250806

Friday, March 25, 2011

Total Goverment Fiscal Collapse - Think it cant happen here? Think again

It's just weeks after Greece declared insolvency, and the dominoes are beginning to fall

On Wednesday, the Portuguese Government collapsed
http://www.zerohedge.com/article/portuguese-government-rejects-austerity-plan-government-collapses

The next country was expected to be Spain. But it was Canada:
http://www.zerohedge.com/article/canada-government-falls-after-vote-no-confidence-gets-enough-votes-pass

The US may not be next, but we are in line with the other dominoes, and we ain't near the back of the line Bubba!

Thursday, March 24, 2011

Book: Crashing the Dollar: How to Survive a Global Currency Collapse

Understand why our paper money is on the verge of turning to ashes. In this eye-opening book, Mr. Smith shows what a crash of the dollar and other currencies would be like. He explains how you and your family, by preparing now, can survive, thrive, and even prosper during a collapse of the dollar.

https://www.swissamerica.com/offer/cbnbook.php?tcode=ZERO-FreeBk

US Will Go Bankrupt

"If we continue down on the path on which the fiscal authorities put us, we will become insolvent, the question is when," - Dallas Federal Reserve Bank President Richard Fisher


$100 billion in spending reductions from pre-planned increase levels when you're spending $1,700 billion more than you are taking in via taxes is not "real action" and do nothing to take us away from that "tipping point." It is in fact mashing the accelerator pedal despite seeing the granite wall in front of us.

The primary problem the Federal Government faces right now is that over the last three years their borrowing has become more than 10% of the economy. The "free stuff" mentality has become not just entrenched in our economic mindset it has become essential to keeping us from having to recognize an economic Depression

All we're doing now is trying to cover the inevitable hangover created by our debauchery through shifting that same behavior to the Federal Government. It won't work because it mathematically can't work - the government by definition can only be a part of the economy, not all of it. This is akin to a house cat attempting to eat a cheetah; this episode is not going to end as Fluffy intends.

Attempting to "print" via The Fed out of this at a rate which will be three times or more what was done in QE2 will lead to $10/gallon gasoline within five years and more than a clean double in the price of food and other energy commodities.

We can fix Social Security but Medicare and Medicaid cannot be fixed. Unemployment cannot be left alone. All three of those programs must be cut dramatically, and the entire rest of the Federal Budget must be reduced by roughly half.


http://market-ticker.org/akcs-www?singlepost=2480445

The Road to Fiscal Crisis

The financial sector in the US and globally has become much more unstable in recent decades, and there is nothing in any of the reform efforts undertaken since the near-meltdown in 2008 that will make it safer.

http://www.project-syndicate.org/commentary/johnson18/English

The U.S. Economy: Is it the Next Bubble to Burst?

The U.S. stock market has taken leave of its senses. The U.S. economy may well be in a financial bubble. Millions of Americans who now consider themselves investment geniuses could well end up rather disappointed if and when the bubble bursts.

http://www.project-syndicate.org/commentary/sac24/English

Wednesday, March 23, 2011

Investment Legends - “Dollar Collapse Inevitable”

What will happen to the U.S. economy and the dollar in the near term? Will inflation increase dramatically? What is the outlook for gold, and where should you put your money?

Quotes:

An intensifying economic downturn – what formally will be viewed as the second dip of a double-dip depression – already has started to unfold.

The governments worldwide (I don’t pay much attention to economists) want us to believe that the worst is behind us because the financial system is built upon the foundation of trust and confidence. Both of these were battered badly when it was shown that much of the world’s prosperity over the past few decades was simply a mirage that, once dispersed, left behind only debt with no means of future production. Now they want us to believe that they fixed the problem via more debt.

No, the worst is yet to come. No structural changes have been made, no problems have been fixed. Printing money, a.k.a. Quantitative Easing, is a quick fix that has postponed the problem, yet also made it a lot worse. I would say that we are still in the early stages of the crisis and have another 4-8 years to go.


http://www.zerohedge.com/article/guest-post-investment-legends-%E2%80%9Cdollar-collapse-inevitable%E2%80%9D

Oil now above $106

NEW YORK (CNNMoney) -- Tensions in the Middle East and Libya show no signs of abating. Japan is dealing with post-earthquake rebuilding and major nuclear issues. And the U.S. is entering prime driving season.

At the same time, crude prices have surged and are now above $106 a barrel - a level not seen since Sept. 26, 2008. Gas prices aren't faring much better. Many drivers are already paying $4 a gallon.

Oil traders are wondering what's next.

http://money.cnn.com/2011/03/23/markets/oil_prices/index.htm

Libya, Japan crises could rock the economy

NEW YORK — The punishing allied airstrikes in Libya, coupled with the continuing nuclear crisis in Japan, threaten to push high oil prices even higher and undermine the fragile economic recovery in the United States and abroad.

If nothing else, some economists and market watchers warn, the volatility and uncertainty of both crises could cut into corporate and consumer balance sheets and shave enough off economic growth to help tip economies back toward recession.

Oil jumps to over $105 per barrel, Brent hovers at $115

NEW YORK (AP) -- Oil prices pushed above $105 per barrel Tuesday, as traders focused on a series of international crises that could tighten global supplies at a time when consumption is expected to increase.

Benchmark West Texas Intermediate for May delivery rose $1.88 to settle at $104.97 per barrel on the New York Mercantile Exchange. At one point it was as high as $105.18. In London, Brent crude gained 73 cents to settle at $115.64 per barrel.

Energy economists continued to gauge how recent unrest in Libya, Bahrain, Yemen and Syria will affect exports from a region that produces 27 percent of the world's oil. Libya, which sits on the largest oil reserves in Africa, has almost totally stopped petroleum shipments as rebels battle pro-Gadhafi troops. The addition of international forces, including the U.S., could mean that the country will be embroiled in a protracted conflict that will keep oil fields offline much longer than previously expected, energy experts said.

"Tensions are still pretty high in that entire region, so prices are going to stay above $100 per barrel for a while," PFG Best analyst Phil Flynn said.

Iraq's new oil minister said Tuesday that he expects oil to reach $120 a barrel. Iraq produces about 2.4 million barrels of oil per day.


http://finance.yahoo.com/news/Oil-tops-105-per-apf-3201140499.html?x=0&sec=topStories&pos=2&asset=&ccode=

Tuesday, March 22, 2011

Trump Talks

Seems as though "The Donald" thinks that China & OPEC, and the US foreign policy towards them are greatly to blame for our current economic condition.
TRUMP SAYS:  U.S. leaders 'not very smart'
TRUMP SAYS: Tax China's goods 25%
TRUMP SAYS:  U.S. should control Iraq oil

US Approaching Insolvency, Fix To Be 'Painful'

The United States is on a fiscal path towards insolvency and policymakers are at a "tipping point," a Federal Reserve official said on Tuesday.  "If we continue down on the path on which the fiscal authorities put us, we will become insolvent, the question is when," said Dallas Federal Reserve Bank President Richard Fisher.  "I think we are at the beginning of the process and it's going to be very painful," he added.

http://www.cnbc.com/id/42209447

With Gold Just 1% From Record Nominal High of $1,444/oz The Risk Of A Dollar Crisis Increases By Day

The U.S. dollar and yen are under pressure again today while gold and silver have taken breathers after yesterday’s gains (see table). Rather than gold and silver rising in price, we are seeing the continual devaluation of the U.S. dollar, the yen and all fiat currencies and thus their prices falling against the precious metals.

Incredibly, the dollar has lost 7.5% of its value in less than 3 months (since January 7th 2011) and more than 17% in just 8 months since August 2010. Hence the nominal record highs in gold and silver. The volatility and sharp falls in the dollar are leading to deepening inflation throughout the world .

As the world gradually rejects the dollar as the reserve currency of the world there is the real risk of a dollar crisis. Should the dollar fall to below 71 on the US Dollar Index (see charts), there could be a wholesale liquidation of the dollar. This could feed on itself and lead to a currency crash as was seen with the British pound in 1992.  The monetary and fiscal position of the U.S. today is many times worse than that of the UK in 1992 which makes this risk very real.

http://www.zerohedge.com/article/gold-just-1-record-nominal-high-1444oz-risk-dollar-crisis-increases-day

OPEC Says Perfectly Happy With $120 Oil, Does Not Think It Will Impair Growth

The oil exporting cartel remembers that in a world strapped for energy, oil prices can and will be quite sticky. Which is why now that OPEC has had its refreshed taste for $120 brent.  It will most certainly not let the price of crude drop into double digit territory.  OPEC has just announced that $120 oil is an acceptable level and will "not hinder global growth."

http://www.zerohedge.com/article/opec-says-perfectly-happy-120-oil-does-not-think-it-will-impair-growth

Price of Oil escalates as Israel Violence escalates

And just as oil was trending lower on the day, we receive our now daily news of Israel conflict escalation.  The result is an immediate jump in oil as the market.

http://www.zerohedge.com/article/oil-jumps-israel-violence-escalation-tanks-enter-gaza-kill-least-3

Is it time to end the Federal Reserve Bank?

The Center for Freedom and Prosperity has launched a new subject string that is sure to generate interest, if not controversy, on the Federal Reserve.  The Cato Institute’s Dan Mitchell makes the case that the Federal Reserve has a dismal track record and bears significant responsibility for almost every major economic upheaval of the past 100 years, including the Great Depression, Seventies stagflation, and the recent financial crisis. And yet it always seems to get more powerful over time.  But the big issue may not be central banking, according to Mitchell in this launch, but the move to fiat currency that took place forty years ago.

http://hotair.com/archives/2011/03/21/video-time-to-end-the-fed/

Thursday, March 17, 2011

Tragedy Week

Apologies to my readers.  As you can see, I haven't posted in a week.  The delay was initially accidental, but continued purposefully.

I began this blog out of the shock and bewilderment of the chaos that was unfolding in the middle east, and it's effect on the US economy.  I had to speak out about something of that magnitude.  Country after country in economic, political and military turmoil.

Then this week happened.

Shock and Awe don't begin to cover it.  Bewilderment took a new high.  Suddenly, the middle east wasn't even important anymore.  So much has been written about it, so many pictures and videos posted.  Everyone has been glued to these unfolding events.  And now suddenly all the emotion conveyed in all the pictures and stories can be summed up in one word.  JAPAN.

In the beginning I was too stunned to write.  To glued to the tube to see what would happen next.  Earthquakes, Tsunamis, Volcanoes and Nuclear meltdowns - all in one week.  Wow.  So here we are, on the 1 week anniversary of the tragedy that may go down as the worst natural disaster in history.  Our prayers have been going out daily to the victims and families of all those affected. 

The full scope of this event will likely not be known for some time.  Given the cataclysmic loss of life and property it seems just shameful to focus on the economic aspects that would be relevant to this blog.  The financial impact of this will likely dwarf all the "enormous" recent economic issues, and yet it is still trivial to the human tragedy that is unfolding.  And with the ongoing nuclear plant operations, we are still waiting for the other shoe to drop.

And so out of respect, I've delayed writing anything further.

God bless, and see you next week.

Friday, March 11, 2011

Should We Be Alarmed That The Biggest Bond Fund In The World Has Dumped All Of Their U.S. Treasury Bonds?

Bill Gross, the manager of the biggest bond fund in the world, PIMCO, has forgotten more about bonds than most of us will ever learn. That is why the big move that PIMCO has just made is so unsettling.  At one time PIMCO held more U.S. government debt than any other bond fund on the globe, but now news has come out that they have gotten rid of all their U.S. government-related securities.

For months, Gross has been warning that the bull market in bonds is coming to an end, and now it looks like he is putting his words into action.  Gross must really believe that something fundamental has shifted.
Here we are on the edge of one of the biggest financial disasters in human history and most Americans still don't understand what is happening.

http://www.zerohedge.com/article/should-we-be-alarmed-biggest-bond-fund-world-has-dumped-all-their-us-treasury-bonds?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

Thursday, March 10, 2011

Stocks sink and oil gains on report of Saudi unrest

Reports that Saudi police opened fire on protesters Thursday have heightened fears that instability and violence in the Middle East and North Africa would drive oil prices even higher and choke off the global economic recovery
"Saudi Arabia is the main supplier of oil around the world, so people are concerned," said Axel Merk, president and chief investment officer of Merk Investments in Palo Alto, California.

"People are starting to realize that the turmoil in the Middle East is going to affect oil supplies for a long, long time," he added.

http://www.reuters.com/article/2011/03/10/us-markets-global-idUSTRE71H0EB20110310

Saudi police opened fire on protesters

Saudi police opened fire Thursday to disperse a protest in the mainly Shiite east, leaving at least one man injured, as the government struggled to prevent a wave of unrest sweeping the Arab world from reaching the kingdom.

http://www.washingtonpost.com/wp-dyn/content/article/2011/03/10/AR2011031003269.html

Erste Oil Special Report: "Force Majeure - Middle East"

Even though the supply in the market is currently still sufficient, we believe that the wave of revolutions will continue to roll and could thus push the oil price  to new highs.

The wait-and-see stance taken by OPEC also contributed to the recent price increases. At its latest meeting, the organisation had indicated that it would only intervene from USD 100/barrel onwards.
(Note that we are already >$100/brl and they've done nothing)

http://www.zerohedge.com/article/erste-oil-special-report-force-majeure-middle-east

Higher Interest rates coming soon! And even higher in subsequent years!

This is a depressing but spot on interview with Bill Gross, founder of PIMCO, about our debt situation. He concludes that we should brace ourselves for higher interest rates in the very near future.

Interest rates [are expected to] go from 3.5 percent in 2011 to 6.6 percent in 2021.

Interest rates [are expected to] climb to 10.5 percent in 2021.

These projections, which show an explosion in the amount of money needed to service our debt, underestimate the problem, since any decrease in economic growth resulting from higher interest rates — or any other cause — is not accounted for. Bottom line: This could be really bad.

http://www.nationalreview.com/corner/261596/no-way-out-debt-trap-veronique-de-rugy

Tuesday, March 8, 2011

TARP & Everything That Is Broken With The US Financial System

On Friday, free and efficient market champion Ted Kaufman, no longer in his former position as a senator, but as Chairman of the Congressional TARP oversight panel, held a hearing on the impact of the TARP on financial stability.  In typical Kaufman fashion, this no-nonsense hearing was one of the most informative and expository of all Wall Street evils to ever take place on the Hill. Which of course is why it received almost no coverage in the media.

http://www.zerohedge.com/article/ted-kaufmans-friday-hearing-explains-everything-broken-us-financial-system

Bad Decisions

Well, it turns out that the White House certainly is considering a plan, but not one that anyone outside of a rubber room could have predicted.
White House Chief of Staff Bill Daley said on Sunday the Obama administration is considering tapping into the U.S. strategic oil reserve as one way to help ease soaring oil prices.
With Libya and other nations in the region experiencing unrest – or the threat of it – I would think that this is precisely the time when the United States would be seeking to top off those reserves, if not expand their total storage capacity. Draining them even before foreign supplies are cut off is nothing short of the height of folly.

And the kicker? Domestic oil producers are standing around by the Gulf of Mexico ready and willing to produce the oil we need, but waiting on Washington approval.


http://hotair.com/archives/2011/03/07/hey-lets-tap-into-the-strategic-petroleum-reserve/

The REAL unemployment rate

Everyone knows by now that the unemployment rate is vastly under-estimated or just completely wrong.  Take a drive though your town to see or ask anyone and you'll know that unemployment is higher than 10%.  And yet, the media persists in the lie:
Unemployment, as measured by Gallup without seasonal adjustment, hit 10.3% in February
The REAL unemployment rate is now referred to as the "Underemployment" rate.  A method to hide the actual numbers from the public.  "Underemployment" by the way, surged in February to 19.9%.

http://directorblue.blogspot.com/2011/03/legacy-media-continues-to-hide-real.html

UK electricity CEO: Get used to not having any electricity

US, get ready.  After the rolling blackouts of this Febuary, we could be next:

Steve Hollliday is the UK’s power czar, basically. He’s the CEO of National Grid. He is predicting that, because the UK is moving to more wind-generated electricity to meet government emissions targets, residents will end up with less access to electricity. And they’d better learn to like it!
[T]he government-regulated utility will be able to decide when and where power should be delivered, to ensure that it meets the highest social purpose. Governments may, for example, decide that the needs of key industries take precedence over others, or that the needs of industry trump that of residential consumers. Governments would also be able to price power prohibitively if it is used for non-essential purposes.
And how are citizens going to feel when their power is artificially off because they’re deemed unworthy of having electricity, when the industry across the street, which just happens to be a major donor to whatever party is in power, has all of its lights brightly shining?

http://pajamasmedia.com/tatler/2011/03/07/uk-electricity-ceo-get-used-to-not-having-any-electricity-suckas/

The Flood Cometh

It is amazing the castles in the air that can be built with paper money and deceitful manipulation of all economic data.  And Bernanke will do anything to keep King  Obama happy, including flooding markets with unlimited amounts of printed money. They both know that, in their holy alliance, they are committing a cardinal sin. But clinging to power is more important than the good of the country.  An economic and social disaster is imminent for the US and a major part of the world and Bernanke and  Obama are praying that it won’t happen during their reign. With a real unemployment rate of 22% and urban youth unemployment much higher, the US will soon experience social unrest.

During [Greenspan's] 19 years as Chairman of the Fed, he could have limited the economic and social damage that the US would suffer. Instead he took every single measure possible to ensure that there would be a catastrophe with uncontrollable consequences. But we shouldn’t just blame the incompetence of Greenspan. It was sickening to watch every sycophantic congressman and senator licking Greenspan’s boots and praising his wisdom. Because Greenspan’s money printing and incompetent interest rate management created one of the biggest financial bubbles in world economic history. But the politicians loved this. It made the stock market boom, and house prices surge. Thus the politicians were all loved by their voters who did not understand the dire consequences that were looming.

We have for years warned about hyperinflation leading to famine, misery and social unrest. Well, this is exactly what is happening in many parts of the world. The protests and overthrowing of regimes in Tunisia, Egypt and Libya.

Although food and fuel inflation is rampant worldwide already, we are only seeing the very beginning. Massive oil price rises are likely to continue as a result of the geopolitical situation as well as peak-oil. The Middle East is a time bomb waiting to go off. Israel is in an extremely precarious position and the involvement or non-involvement of the US in this conflict would both have dire consequences for Israel and peace in the world. Food prices will continue to rise dramatically.

http://goldswitzerland.com/index.php/apres-nous-le-deluge-evg/

Friday, March 4, 2011

CME Raises Margins On Crude Oil, Heating Oil And Gasoline By More Than 10% Each

The CME Group Inc. increased margins its New York Mercantile Exchange crude oil and petroleum products futures, effective after the close of trading today.  The attempts to prevent an out of control melt up in the one product everyone is terrified of, crude, are back on the table.

http://www.zerohedge.com/article/cme-raises-margins-crude-oil

Risk Off: Commodity Complex Jumps On Reports Libyan Oil Wells Near Benghazi On Fire

The Oil facility at Zueitina, south of Benghazi, is now damaged and oil wells are now on fire.  The journalists there are now rounded up "for their safety from Al Qaeda".  The result: WTI now passing $103, wiping out more tens of billions from the US GDP, further destroying corporate margins, and otherwise adding fuel to today's vapormeltup. Gold and silver follow suit.

http://www.zerohedge.com/article/risk-commodity-complex-jumps-reports-libyan-oil-wells-near-benghazi-fire

Thursday, March 3, 2011

Average gasoline prices jump another 4 cents

Pump prices jumped another 4 cents Thursday to a new national average of $3.43 per gallon.

Gasoline has climbed more than 29 cents per gallon since the uprising in Libya began in the middle of February, costing Americans an extra $108 million per day to buy the same amount of fuel.

http://www.washingtonpost.com/wp-dyn/content/article/2011/03/03/AR2011030302133.html

Dollar Plummets, Market Surges, Rinse, Repeat

Is today day three of the Bernanke testimony? Because the dollar just plunged as if the Chairsatan was out there somewhere, lurking, once again, guaranteeing the death of the US currency any minute now. In the meantime stocks are going absolutely insane, even though with oil over $100.


http://www.zerohedge.com/article/dollar-plummets-market-surges-rinse-repeat

Food Prices Reach Record High

World food prices rose 2.2% in February from the previous month to a record peak, the United Nations' food body said Thursday, as it warned that volatility in oil markets could push prices even higher.  The Food and Agriculture Organization price index rose by 2.2%—the eighth consecutive rise since June—to an average of 236 points last month, the highest record in real and nominal terms since the agency started monitoring prices in 1990.


http://online.wsj.com/article/SB10001424052748703300904576177921469742708.html

Why the Dollar's Reign Is Near an End

For decades the US dollar has served as the World Reserve Currency, but soon the dollar's reign will come to an end, and with it, our reign as the World Financial Superpower.


Typically, when a South Korean wine wholesaler wants to import Chilean cabernet, the Korean importer buys U.S. dollars, not pesos, with which to pay the Chilean exporter.  Fully 85% of foreign-exchange transactions world-wide are trades of other currencies for dollars.  The greenback, in other words, is not just America's currency. It's the world's.  


This status as the world reserve currency is one of the major factors in America's economic success and for our status as a world financial superpower.

All that is quickly coming to an end.



http://online.wsj.com/article/SB10001424052748703313304576132170181013248.html

Wednesday, March 2, 2011

US Defense Secretary Gates says BOO and oil prices rise

US Defense Secretary Gates says establishing no-fly zone for Libya would require an attack on Libya. As a result, the entire crude complex levitated higher as if HFTed by the Fed's POMO desk.

http://www.zerohedge.com/article/and-defense-secretary-gates-just-uttered-magic-word

Need any more evidence that oil speculation is harmful?

Libya Planes Fire Missiles On Oil Facility Port Town Of Brega

WTI spikes by $0.70 following reports that a Libya plane has fired two missiles on the town of Brega, which contains a critical oil facility. The fact that Libya is now apparently willing to gamble with its oil infrastructure is precisely the worst case scenario that many have predicted.

http://www.zerohedge.com/article/libya-planes-fire-missiles-oil-facility-port-town-brega

Tuesday, March 1, 2011

A NOTE FROM THE BLOGGER

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New Bacteria sunlight, water and carbon dioxide, secretes Diesel fuel.

Scientists have genetically engineered an organism that secretes diesel fuel wherever there is sunlight, water and carbon dioxide.  Biotechnology company Joule Unlimited claims it can produce diesel fuel and ethanol on demand at unprecedented rates.

Chief executive Bill Sims said: 'We make some lofty claims, all of which we believe, all which we've validated, all of which we've shown to investors.'If we're half-right, this revolutionises the world's largest industry, which is the oil and gas industry. 'And if we're right, there's no reason why this technology can't change the world.'

Perhaps it can work, but 'the four-letter word that's the biggest stumbling block is whether it "will" work,' says Timothy Donohue, director of the Great Lakes Bioenergy Research Center at the University of Wisconsin-Madison. 'There are really good ideas that fail during scale up.'


What?  Just Diesel?  Not Super Unleadded?  Yeah, I'll believe it when I see it.


Gold is Already Predicting the Next Fed Chairman
Gold is acting fishy. Indeed, while emerging markets are generally going up in flames (literally) Gold hasn’t done much of anything since October 2010.  It’s odd, Gold should be above $1,500 per ounce by now given what’s going on in the world. By all counts demand for the precious metal is increasing dramatically.  I have a sneaking suspicion the market is beginning to discount some MAJOR changes in the US Federal Reserve...

http://www.zerohedge.com/article/gold-already-predicting-next-fed-chairman



Financial terrorism suspected in 2008 economic crash

Evidence outlined in a Pentagon contractor report suggests that financial subversion carried out by unknown parties, such as terrorists or hostile nations, contributed to the 2008 economic crash by covertly using vulnerabilities in the U.S. financial system.

'eh? That's a new one.  Sheesh. The government blame game has no equal.  Rule #1 - deflect blame away from yourself & your financial backers.

We know what caused the 08 crash.  Market bubbles created by stupid greedy banks who had no real risk because they were assured of a bailout, and other investors & speculators who thought they could game the system.

"Never ascribe to malice that which can adequately be explained by ignorance". - Hanlon's Razor