Friday, 06 May 2011 03:42

Iraq "Day of Rage" Protests Shake US Occupation Regime; Bank of India to Settle Trade in Yuan - 20 February 2011

I'd like to send a big welcome to all the new members who have joined us in the last week. This is where it happens. This is the fastest and most effective way to analyze and disseminate information quickly. If you're new you'll find oft-repeated threads just by looking back a few days prior for my comments. You will see that Collapsenet is supremely useful and we're really good at telling you what to expect next, and then hooking you up with everything you'll need to prepare for it. We can't help but become more useful in the gut-wrenching days ahead. As I go through today's stories, gathered by Jenna Orkin and "Rice Farmer" I'll try to catch the new folks up when I think about it. -- MCR


From Jenna Orkin et al.



Bank of India becomes 1st Indian bank to offer trade settlement in Chinese yuan   

Easing out the dollar -- MCR

Attack shuts Iraq's largest oil refinery, kills 1

Iraqis threatening to get out of control. -- MCR 

Russia Unexpectedly Raises Main Rates, Reserve Requirements

Aside from fighting inflation like every other country since QEII, Russia is IMO also preparing for a major global financial shock. -- MCR

US Will Be the World's Third Largest Economy: Citi

What a crock of shit paragraph this opens with. -- MCR

China's Stealth Investments in Japan (WSJ)

"TOKYO—China's government-wealth investors last year more than doubled their investments in major Japanese blue-chip companies, with combined stakes totaling more than 1.6 trillion yen ($19.4 billion), according to investment-advisory firms and people familiar with the matter." 

They weren't all that stealthy. We've been reporting on Chinese purchases of Japanese bonds for almost a year. Glad you noticed.-- MCR

2011 Tipping Points

A very good read that charts the rapidly approaching global systemic collapse. -- RF

I love the cartoon at the very end! -- MCR

US Seeks Backing for Libya Intervention

I'll repeat what I've been saying for four days now. NATO will almost certainly take action within days. All that's happening on the diplomatic front (e.g. with the UN) is a check list before NATO military intervention. It's happening at breathtaking speed actually. -- MCR

Former Libyan Diplomat: Killing Gadhafi Only Way to End Violence

Affirming my $5 bet with Max that he's dead by Sunday. -- MCR

U.N. Security Council to meet, Libya hands out cash

NATO checklist. -- MCR

Libya: Col Gaddafi's son 'in hiding on Venezuelan island' Telegraph

"One of the sons of Muammar Gaddafi, the Libyan leader, is in hiding on an island off the coast of Venezuela, a politician in the South American country has claimed."

China Vows to Protect Chinese in Libya

"Xinhua said numerous Chinese corporate facilities were damaged in the violence in Libya, with 'armed gangsters' robbing some of them of grain and other materials."

A diplomatic precondition for Chinese boots on the ground. -- MCR

Chinese Missile Ship Races to Libya for Rescue Duty Danger Room

Good catch Danger Room!

The video leaves you reaching for breath. If a confrontation doesn't happen over Libya, it most certainly will off Somalia, or around Hormuz. As Peak Oil bites harder one of my worst-case outcomes is a global nuclear conflict after ships from maybe 20 navies get into it. It won't take much to set that off.  I wrote quite a bit about that from Rubicon forward, especially on the old blog in 2008. -- MCR

Iraq “day of rage” protests shake US occupation regime

Haven't seen a lot from World Socialist Web Site recently. They did some good reporting between 2002 and 2006. And yes, someone needs to be talking about Iraq. -- MCR

Angola, Nigeria Can't Immediately Replace Libya Oil    

Saudi Arabia Alone Can t Reverse Oil Rise   

Blame it on anything except depletion and decline. -- MCR

Why Rising Oil Prices Will Hurt China The Most   

Maybe that's why

Chinese Missile Ship Races to Libya - JO 

Following US Sanctions, UN Security Council to Meet on Libya  

Libyan rebels say control oil fields, honour deals  

Gas jumps 6 cents in a day   

Oil Could Hit $120 a Barrel: Boone Pickens  

Geologist Bets on $70 Billion Oil Find Chasing Atlantic Drift  

We're Rapidly Approaching the Crisis to Which 2008 Was a Warm Up  

Top 12 Countries Most Likely To Go Belly Up  

Interactive Chart On The Oil Price To Global GDP Correlation

UK economy shrinks fast  

Doom for the Dollar   

"Debt is going to have to be repudiated. It's going to have to be written off." 

Pension Costs Will Bankrupt California's Government  

Calpers is already insolvent. -- MCR

Ireland elects the party that wants to trash bondholders

"Haircuts on senior bank debt still unlikely"

"In their election manifestos, Fine Gael and Labour state that they would aim to force bond-holders to share the costs of recapitalizing troubled financial institutions. However, we believe that unilateral action against senior unsecured bank debt is unlikely given the strong resistance from the European Commission and the ECB. Instead, we think the spectre of haircutting senior bank debt will likely be used to secure additional assistance in supporting the Irish banking system."

It look like half measures, which will not produce 50% beneficial results. -- MCR

Read more:

Qaddafi moves $4.8 billion of his own money to London  

Ouch! How soaring oil prices will hit your wallet

Egypt protest dispersed 'with force'   

Rebels lay siege to Gaddafi stronghold    

Gaddafi son says fighting limited, sees end soon  

Federal, State and Local Debt Hits Post WW II Levels  

Tens of thousands hold rival rallies in Yemen

Russian oligarchs accuse BP of 'sabotage' over Rosneft dispute

Shoppers wary of GM foods find they're everywhere     

"I Won't Pay" Movement Spreads Across Greece    

This is a popular response that hasn't been factored into governmental and banking calculations. I predict it will spread around the world as countries approach Greece's condition. -- MCR

Michigan Orders DPS to Make Huge Cuts   

How'd you like to teach a high school class of sixty students? - JO

Mary Meeker's Definitive Guide To The American Public Debt Crisis 
Robert Gates advises against land war; future wars in air, sea

Why The World Has No Choice But To Buy More And More Fertilizer   

There are choices, but they are -- at present -- not being accepted. The first one is to get free from the infinite-growth model. -- MCR

Here's The Only Way We Won't Starve To Death By 2050   

Didn't see any discussion of relocalizing food production. -- MCR



Suicides Reveal Tragedy Behind Irish Crisis    

Very sad, but not a problem unique to Ireland. -- MCR


Home Prices Plummet In Most Big US Cities  

Day of Reckoning on California Pensions?   

"But a new report from the Little Hoover Commission in Sacramento makes a more troubling point: Many state and local government employees have been promised pensions that the public couldn't have afforded even had there been no crash."

FDIC Conducting Stress Test Exams - "Shock Testing 400 Basis Points Up and Nothing Down"  

Lloyds posts £2.2bn profit  

BA warns on fuel surcharges amid turmoil in oil market    

Virginia's New "Currency" Debuts at Capitol    

U.K. Economy Shrank More Than Estimated in Fourth Quarter

Every light flashing red. -- MCR

British forces would struggle to mount small military intervention, claim officers
"British forces would struggle to mount even a small scale military intervention as the cupboard for resources was 'threadbare', senior officers have said."

We have been covering the Draconian cuts to Britain's military budgets closely for about a year. That's extremely significant to even assembling a NATO operation for Libya. For Italy it is High Noon. They will commit everything they have. The German will go too I think. As will the French. But all nations are breaking under the weight of debt now. -- MCR

Governor: Florida could see Wisconsin-style protests

I'm sure it will.

Starting last November I warned of these events and said clearly that the attack on public employee pension funds and collective bargaining would be timed with federal legislation allowing states to go bankrupt. Florida now joins, Iowa, New Jersey, California, Ohio and a few other states where these initiatives are being launched, almost simultaneously.

I have also been saying for months that the whole nation will likely go up at once and this timing makes that more likely. I am clear in expecting civil unrest in New Jersey, Illinois, Michigan and California. Those were (after all) the scenes of the four deadliest riots of the 1960s. (Newark, Chicago, Detroit and Los Angeles But thinking about Florida in this context makes me shudder a little. That's because much of Florida in poisoned as a result of Deepwater Horizon and the people are waking up to that as they get sicker and sicker. I wrote about this scenario, right here, as the Gulf of Mexico and all the people now condemned were being murdered. -- MCR

Could Wisconsin trigger bond doom?

"Some [analysts] say a union victory could put the nation’s municipal bond market at risk – a market many analysts already fear is heading for a crash."

'King of Bonds' sees municipal bonds collapse, plans to buy after carnage

"Jeffrey Gundlach of DoubleLine Capital, dubbed 'King of Bonds' by Barron's, sees a 'major collapse' in the municipal-bond market.  After the carnage happens, he plans to scoop up the bargains left behind."

Pennies on the dollar. -- RF

Oil shock threatens airline recovery

"U.S. airlines had their best year in a decade in 2010, but with a mere 2% profit margin."

Oil Prices And The Future Of Airline Employees
Downsize, downsize, downsize. -- RF

Do you ever worry about ending up old and poor?  

Don't like the price? Learn to haggle  


How will America handle the fall of its Middle East empire?

The U.S. is playing it almost exactly like I wrote it in "Crossing the Rubicon", seven years ago. We have come a long way; good and bad. -- MCR

Saudi Arabia king accused of misjudged bribery in attempt to avoid unrest

The House of ibn al Saud is... T-O-A-S-T... Toast. -- MCR

"Jasmine" protests greet Chinese envoy in Taiwan

Sideshow. -- MCR

Protesters gather for Baghdad's 'Day of Rage'

Is anybody seeing mainstream- electronic media covering any of what's going on in Iraq? I can't find it and this is very serious for the U.S. -- MCR

At least 5 killed in clashes during demonstrations in Iraq

I'm starting to have a really bad feeling for all U.S. forces deployed in Iraq. I mean a really bad feeling. -- MCR

Four dead as militants blow up 11 NATO tankers

It bears repeating: The United States of America is under attack on a global scale. We called this part over and over again at FTW... back in the day. -- MCR

Nat. Gas Industry Tried to Remove Doc From Oscars  

'Army supply cupboard bare'  

Government Infiltrates Terror Cells Time and Again ... But Fails to Stop Attacks   

Al-Qaida's Embarrassment:  Revolutions Mark Setback for Terror Group

Pretty story. - JO

Terrorists, Mafia Make Profits Selling ... Cigarettes  

TSA Source:  Armed Agent Slips Past Body Scanner    

Feds Spied On NYT Reporter In CIA Leak Investigation  
Cops shut down Ga. Girl Scout cookie stand  


Sleeping With Dogs May Spread Plague  

Emergency! Pathogen New to Science Found in Roundup Ready GM Crops?    

No, BP Won't Make it Right  

Food Safety Advocates Have Read the Law Wrong

44 Million People Driven Into Poverty by Rising Food Prices

Just the beginning. -- MCR

Study predicts aged-care bed shortage (Australia)

"A new report has found Australia faces a shortage of 280,000 aged-care places by 2050, if there are no changes to current policy."

Japan Population Sees Slowest Growth Since 1920

Although this demographic factor is no help for the pension system, it is a good thing in the face of peak food. -- RF 



Latin American Oil to China and not to the United States

Started happening in 2005-2006. We told you at FTW. -- MCR

China’s Sinopec wants to take part in oil exploration in Brazil 

Oh, I'm sure they do.

Would Obama invoke the Monroe Doctrine?... A little late, of course, because China's already buying a lot of oil from -- and heavily invested in -- Canada. Sounds like economic encirclement. -- MCR

Spain to lower speed limit as oil prices rise

That was a very import Point in "Confronting Collapse". Bravo Spain!

Saudis have a plan for high oil prices

Well, the Saudi hand has finally been called. There is no out here. The whole world is watching. A very good friend of mine, Matt Simmons, established conclusively that that Saudis had passed their peak five-plus years ago. And Peak Oil means ABSOLUTELY that it is no longer possible to increase production by any means... I fear it's time for a war, a big one. -- MCR

IEA Says Saudis Boosted Oil Shipments After Libyan Shut-Ins

"More Saudi oil is 'reportedly' flowing through the kingdom’s 1,200-kilometer (750-mile) East-West pipeline from the 7 million-barrel-a-day Abqaiq processing facility in the eastern part of the kingdom to the Red Sea port of Yanbu for shipment to the Mediterranean, the agency said."

How much actual increased production is there, and how long can it be sustained? These are vital questions. The wolf is already at the door of the global economy. -- RF

JPMorgan Boosts 2011 Brent Oil Forecast by $9 to $104

We passed $104 for Brent crude two days ago. -- MCR

Visual Atlas Of Distressed Oil Production

Bulls--t! They left out Saudi Arabia and Iraq; the first and second largest known reserves on the planet. -- MCR

Russia ready to meet Europe's gas demand, boost supplies

And Europe is going to pay for it... how? I think there's going to be a really big fire sale of European assets. Russia will be the primary buyer. -- MCR


Last modified on Friday, 06 May 2011 03:48

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