Thursday, November 10, 2011


News Links, November 11, 2011

## Global economic meltdown ##
Europe Recovery Rally Fizzles As French Bund Spreads Hit Record On Fresh Downgrade Rumor
France, the New Elephant in the Room
Roubini: Italy Is Doomed And Will Exit EMU Unless ECB, Germany Step In
Eurozone's growth has stalled, says EU
A Financial Nightmare For Italy: The Yield Curve For Italian Bonds Is Turning Upside Down
World has Major Funding Gap; IMF Begs Russia and China for Money; Italy and Greece Demand Deposits Collapse; Run on Greek Banks?
Venezuela's risk of debt default keeps oil, other industries on the edge
"Greece may have to move over. While global investors and financial regulators have been transfixed in recent months on a possible European debt crisis, Venezuela, a major oil exporter, ranks just behind the cradle of Western civilization in terms of the risk of defaulting on its debt and roiling global financial markets."
Canada's pension system loses $1.2 billion
Since growth is dead, pensions are all going to evaporate. Count on it. -- RF
Papademos named PM to claw Greece out of crisis
A banker has been put in charge of Greece! -- RF
New Italian government seen within days
Steel outlook looks grim as uncertainty dissuades buyers from purchasing
Solar Glut Worsens as Supply Surge Cuts Prices 93%: Commodities

## Fault lines/flashpoints/military ##
Blasts hit Egypt's gas pipeline to Israel, Jordan
"Saboteurs blew up a Sinai pipeline on Thursday, halting gas supplies from Egypt to Israel and Jordan in the sixth such attack since the overthrow of President Hosni Mubarak, Egyptian security sources and witnesses said."
Online critic of drug violence beheaded in Mexico

## Global unrest/mob rule/angry people ##
Fuel subsidy removal: Youths mobilise for hunger strike, demonstration (Nigeria)
"'I am 100% sure there will be more. The situation is suffocating and there is no other way to demonstrate anger,' said Kanyang Tsering, 32, a monk from Kirti living in Dharamsala."
This is just one of the powderkegs waiting to blow up China. -- RF

## Energy/resources ##
"The shortage of diesel fuel is slowly shutting down the oil industry in southeastern Saskatchewan, according to the owners and operators of trucking and oilfield service companies, whose trucks and equipment run on diesel."
"The International Energy Administration (IEA) said on Thursday that if unrest in Africa and Gulf continue, Brent Crude Oil could spike above its all-time high of $147/bbl very easily and this would ultimately put further strain on global economy."
That we are compelled to hunt for energy resources in such inhospitable regions is testament to how grim the situation has become. -- RF
"The move follows massive blackouts on Sept. 15 that affected more than 6 million homes throughout the country and led to nearly 9,000 claims, seeking over 60 billion won (US$53 million) in damages."
Load-shedding likely to resume in Uganda
"Ugandans can begin to prepare for darker nights in the wake of a warning by Umeme Limited ‒ the country's principal power distribution company ‒ that 24-hour load-shedding is likely to be resumed.
"This warning came after the Uganda Electricity Transmission Company Limited (UETCL) had informed Umeme that thermal diesel electricity generator Aggreko had indefinitely switched off its Mutundwe station due to a shortage of diesel to run the power plant."
"France should meet its electricity needs this winter despite Germany's reduced nuclear power production, but the government has not ruled out a large-scale blackout if intense cold causes bottlenecks on the German power grid."
China faces hurdles to developing shale gas
"Energy-hungry China is tapping its vast shale gas reserves to reduce its reliance on dirty coal and imports, but experts warn its lack of technical expertise and scarce water supplies pose challenges."

## Infrastructure scavenging ##
Around eight cases of rail cable theft occurring daily
"MPs have been hearing how the rate of attempted cable theft on Britain's railways has escalated to around eight cases every day. Dyan Crowther, Network Rail's operations director, said the firm had lost more than £40 million in two years, as incidences of theft spread across the UK. She explained to the Transport Select Committee that cable theft had first started in the North East, but had now spread to the rest of the country."
"To small-scale farmers, this year is likely to rank among the worst on record as their returns continue to drop due to escalating food prices and rising inflation."
"State-owned China National Cereals, Oils and Foodstuffs Corporation, the country's largest trader of grains and edible oils, plans to spend more than $10 billion on overseas mergers and acquisitions in the next five years.
"'Because of the nation's limited agricultural resources, we have to look overseas,' COFCO board member Jiang Hua said."
Poultry Predators - How to Keep Your Chickens Safe

## Environment/health ##
World headed for irreversible climate change in five years, IEA warns
Insight: In Greek crisis, HIV gains ground
"'Contagion' is the label financial markets use for the economic spread of the Greek crisis. For hundreds of people in an increasingly chaotic society, the word has a deadlier meaning."

## Intelligence/security/internet/systemic breakdown ##
Cities of Europe haunted by euro zone crisis
HSBC UK server issue causes outage
"HSBC customers in the UK suffered a major ATM and internet banking outage on Friday afternoon due to an issue with a server."
Internet outages scares global business
"Widespread internet outages and slowdowns lead to immense business shock and concerns across United States and parts of Europe, leading to absolute shut down of various business processes across the globe for some time."
6 automakers report drop in sales, net profits

## China ##
Baseball bat is a hit as a defensive weapon in China
"'I need it for protection,' said Wang, 32, a native of Inner Mongolia who hauls heavy equipment across busy northeast highways stalked by thugs looking to steal loads and siphon fuel. 'There's local hooligans everywhere and they'll threaten you if you don't pay them money.'"
One might be forgiven for mistakenly thinking this is an article about Mexico. -- RF
500 Taxi Drivers on Strike in Luohe, China
"The Treasury and Bank of England are making contingency plans for an 'economic Armageddon' if the euro falls apart, business secretary Vince Cable said on Thursday as the European commission slashed its growth forecasts and predicted that the continent could be plunged back into recession next year."
Investors unnerved by eurozone uncertainty

## US ##
Why Americans Won't Do Dirty Jobs
So many things are going to change in the near future. -- RF
Shipping Thieves at Large: A Cargo Theft Review
"Cargo theft rates have consistently grown over the past five years, in some cases at an exponential rate. It's no wonder that supply chain pros see this growing threat as a risk to their operations."
Of course she's right, as I have consistently maintained. Growth is dead, and the muni bond bust is just getting started. Keep watching for that inevitable storm of defaults. -- RF
Diesel fuel shortage hits state (Nebraska)
"The shortage particularly is bad in the Lincoln area. One of the two fuel terminals south of Lincoln hasn't had any diesel fuel for at least a month, Garner said, and the other has had sporadic supply that runs out in a couple of hours."

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