Tuesday, November 15, 2011


News Links, November 16, 2011

## Global economic meltdown ##
Sovereign Debt Yields and Spreads Soar Everywhere: Belgium, France, Italy, Spain, Ireland; Major Problem List is Every Country but Germany; Belgium Spread Inverts Significantly
Crises in Greece and Italy mask looming zombie debts
ADB urges Asia to help rescue eurozone
Four Main Reasons Europe is Likely to Collapse
• The European banking system is leveraged at 25 to 1 (twice that of the U.S. e.g.) so a 4% decline in equity wipes out capital!
• European financial corporations operate with debt of 148% of total EU GDP!
• Euroland banks have to roll over from 15% to 50% (depending on the bank) of their total debt by 2012.
• Many Euro nations have massive unfunded liabilities. The typical Euro nation would require 400% of its GDP to be banked earning interest to cover these… not possible.
Greek leader says debt deal must pass soon to avoid default
Greece, EU head for showdown over bailout pledge
"Greek conservatives set themselves on a collision course with the European Commission on Tuesday, refusing its request to sign a pledge to meet the terms of a bailout designed to save the country from bankruptcy and safeguard the euro zone."
France draws fire after "alarm bells" warning
"France came under heavy fire on global markets Tuesday, reflecting fears that the euro zone's second biggest economy is being sucked into a spiraling debt crisis after a warning that Paris's failure to adapt should be "ringing alarm bells.""
German ZEW Economic Sentiment Index Falls Sharply Again in November; Europe Already in Recession, Expect it to Dramatically Worsen
More on Italy's impossible debt reduction
Swaps Market Up 18% In 1st Half
"The gross nominal value of privately traded derivatives in force globally rose 18% in the first half of this year, to a record $708 trillion by the end of June, according to figures released Tuesday by the Bank for International Settlements."
European Funding Crisis Accelerating
IMF Calls for China Banking Revamp
SocGen To Cut Hundreds Of French Jobs To Lift Capital-Unions
No Stopping Technocrats Rule as Debt Crisis Brings Down Europe Governments (Bloomberg)
Asian Stocks Fall as Default Swaps Rise on European Debt Concern

## Fault lines/flashpoints/military ##
Attacking Iran? Not Just Yet
"That Iran is keen to acquire the know-how capability of assembling a bomb, as the report indicates, is nothing new and was in fact predicted by the Israeli Intelligence agency back in 1995. In addition, the current speaker of the Iranian parliament, Ali Larijani, had also, perhaps unintentionally, made this objective crystal clear during an official visit to Tokyo in February 2010 when he stated that Tehran wants to develop nuclear capabilities 'similar to those of Japan'. Japan does not have nuclear bombs of its own, but the lead time for the Japanese armed forces to assemble a bomb is 24 hours, and thus Larijani's remarks did indeed shed lights on the nature and scope of Iran's nuclear posture."
Europe to Israel: Military strike on Iran nuclear program not an option
Saudi Prince Rebuffs Talk of Strike on Iran
"Saudi Arabia's former intelligence chief said Nov. 15 his country opposes any military strike on Iran, amid rising tensions over the Islamic republic's nuclear program."
Arab League meets Assad foes after 69 die in Syria
OK, now both the Arab League and the Iranians have met with the anti-Assad camp. -- RF
Syria protests: Arab League consensus paves the way for UN sanctions
Turkey on brink of open confrontation with Syria
"Turkey was on the brink of open confrontation over its border with Syria on Tuesday night, announcing its first economic sanctions against Damascus and saying President Bashar al-Assad's regime was 'on a knife-edge'".
Palestinians will keep knocking on U.N.'s door
China Resists Sea Discussion at Summit
Clinton in Manila amid ASEAN row over South China Sea
"The Philippines criticized fellow Southeast Asian nations Tuesday for failing to take a united stand against China over maritime rights in the South China Sea, a crucial commercial shipping lane thought to contain valuable oil and minerals."
Nicaragua's top cop, who once wanted to be a nun, fends off drug gangs
India test fires most advanced missile
Report: U.S. pivoting to Asia

## Global unrest/mob rule/angry people ##
UAE leader promises more political rights to citizens
Zurich police evict anti-bank protesters
"Swiss police on Tuesday evicted anti-banker protesters from the Lindenhof, an ancient square in one of the oldest parts of Zurich, just hours after a similar move by police in New York against an anti-Wall Street demonstration."
Judge upholds eviction of New York 'Occupy' camp

## Energy/resources ##
JinkoSolar, Daqo Add To Global Solar Gloom
The worse the downturn gets, the less money there is to subsidize renewables. But there's still plenty of money to subsidize nuclear, right? -- RF
Investors Thirsty For New Markets Looking To Water
"Oil and water may not mix, but managing water -- moving it, filtering it, recycling it and ultimately exhausting it -- is one of the fastest growing sectors of the oil and gas industry, industry experts and investors said on Thursday.
"Because getting U.S. oil and natural gas out of the ground requires billions of gallons (liters) of water a year, 'oil companies are the largest water companies in the world,' Amanda Brock, CEO of the water treatment company Water Standard, told a conference on water investment and technology."
How to confront the energy crisis?
"Flawed planning, wrong strategy and poor management of infrastructure projects in the energy sector are driving the Bangladesh economy to a possible serious depression."
Selling the Oil Illusion, American Style
Another great reality check from Gregor Macdonald. -- RF
China's Energy Investments on a Global Roll, Now Include Brazil
Oil Approaches $100 a Barrel
Boom fuels oil field talent search
Oil is another one of the many industries with a critical skilled worker shortage. -- RF
The Shared Fate of GDP and Energy Growth
Just look at these graphs. It's so obvious that energy growth is the sine qua non of GDP growth. -- RF
Can new plan to forcefully cut corporate power use work? (Korea)
Diesel shortage a concern for dairy producers (Canada)
Bus operators bear the blunt of fuel shortages (Malawi)
Uganda faces prospect of massive energy rationing

## Infrastructure scavenging ##
Dramatic rise in Northern Ireland lead thefts

## Got food? ##
Midwest Farmland in Third Quarter Rises 25%, Most Since 1977, Fed Reports

## Environment/health ##
'Winter drought' could mean hosepipe bans next year (UK)

## Intelligence/security/internet/systemic breakdown ##
Pentagon: Offensive cyber attacks fair game
All lower house members' IDs leaked / E-mails possibly exposed for 2 weeks; network remotely accessed over 10 times (Japan)

## Japan ##
From Minamata to Fukushima -- The Japanese Nuclear Crisis Isn't Over Yet
New study maps spread of Fukushima fallout
Mountains limited spread of fallout from Fukushima
It's true. I too have been spared thanks to the mountains. -- RF
Japan burns 200,000 bpd more crude for power in Oct
Japanese Utilities Imported 3.9 Million Tons of LNG in October
Megabanks' PIIGS Corporate Lending Down 12%
"Outstanding loans by Japan's three megabanks to corporations in five heavily indebted euro zone countries fell 12% from June to September, according to the banks' first-half financial statements."
Total net profit of 5 major banks up 18.7% in 1st half of FY 2011
Japan's Nuclear Safety Steps May Cost 19 Billion Yen Per Reactor
"Additional safety measures required at Japan's nuclear power plants in the wake of the Fukushima disaster may cost 19.4 billion yen ($252 million) per reactor, the government said."
The costs of nuclear power just keep escalating. What was sold as "too-cheap-to-meter power" has turned into what is perhaps industrial civilization's biggest liability. -- RF
Defense ministry to urge contractors round-the-clock data security

## China ##
More Mammoth (and Mysterious) Structures Found in China's Desert
IMF says China banking system vulnerable
China's consumer boom facing slowdown

## UK ##
Drivers should not count on fuel duty cuts, says Cable
MPs urge ministers to scrap a planned rise in fuel duty
Solar giant 'could quit UK' after Government cuts to subsidies

## US ##
JPMorgan To Issue CMBS Backed By... Defaulted Loans
US Postal Service loses $5.1 billion, could face default this week as financial woes mount
Anti-coal protesters arrested outside Bank of America in Charlotte
Breast-milk shortage hits milk banks; tiniest babies at risk
US Pension Agency Deficit Largest Ever at $26 Billion
"The U.S. agency that insures corporate pensions reported a record annual deficit of $26 billion on Tuesday with its potential exposure to financially weak companies also on the rise in a tough economy."
Lawmakers Agree on Spending Bill to Avert Shutdown
Buffett: Returns 'Terrific' as U.S. Workers Suffer
Hard-drive issue looms over Dell forecast

And finally... Internet Insecurity: The 25 Worst Passwords of 2011

<< Home

This page is powered by Blogger. Isn't yours?