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.
Easing out the dollar -- MCR
Iraqis threatening to get out of control. -- MCR
Aside from fighting inflation like every other country since QEII, Russia is IMO also preparing for a major global financial shock. -- MCR
What a crock of shit paragraph this opens with. -- MCR
"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
A very good read that charts the rapidly approaching global systemic collapse. -- RF
I love the cartoon at the very end! -- MCR
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
Affirming my $5 bet with Max that he's dead by Sunday. -- MCR
NATO checklist. -- MCR
"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."
"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
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
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
Blame it on anything except depletion and decline. -- MCR
Maybe that's why
"Debt is going to have to be repudiated. It's going to have to be written off."
Calpers is already insolvent. -- MCR
"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: http://www.businessinsider.com/ireland-fine-gael-election-2011-2#ixzz1F5LdyJte
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
How'd you like to teach a high school class of sixty students? - JO
There are choices, but they are -- at present -- not being accepted. The first one is to get free from the infinite-growth model. -- MCR
Didn't see any discussion of relocalizing food production. -- MCR
Very sad, but not a problem unique to Ireland. -- MCR
"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."
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
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
"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."
"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
"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
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
The House of ibn al Saud is... T-O-A-S-T... Toast. -- MCR
Sideshow. -- MCR
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
I'm starting to have a really bad feeling for all U.S. forces deployed in Iraq. I mean a really bad feeling. -- MCR
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
'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
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."
Although this demographic factor is no help for the pension system, it is a good thing in the face of peak food. -- RF
Started happening in 2005-2006. We told you at FTW. -- MCR
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
That was a very import Point in "Confronting Collapse". Bravo Spain!
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
"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
We passed $104 for Brent crude two days ago. -- MCR
Bulls--t! They left out Saudi Arabia and Iraq; the first and second largest known reserves on the planet. -- MCR
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