Rice Farmer

## Global economic meltdown ##
Korea Announces Household Debt Plan

"Reflecting widespread home ownership and increased borrowing to finance major expenditures such as education, South Korea has some of the highest levels of household debt in the developed world."

Danish Banks Face International Funding Wall
"Denmark's banks face reluctance from international investors to buy their bonds after a second regional lender failed this month, triggering Europe's toughest resolution rules."

The Screaming Fundamentals For Owning Gold And Silver (Chris Martenson)

"Trouble is, things are not likely to go well. There is no plausible growth rate that will make it possible for the Greeks to 'grow their way out' of this debt. All they can do is default, one way or another."

S&P to deeply cut U.S. ratings if debt payment missed (Reuters)

Moody's Sees U.S. Rating Cut to Aa On Default (Bloomberg)

The Coming Chinese Depression (Daily Bell)

"Conclusion: The seeming inevitability of the coming Chinese Crash is surely the largest and most significant economic story of the upcoming decade. Look for concerted, regular coverage in your local newspapers and periodicals ... Not."

IMF Urges U.S. Debt-Ceiling Increase to Avoid a 'Severe Shock' to Economy

## Fault lines/flashpoints/military ##
North Korea threatens 'sacred war' against South

Russia cuts off power to Belarus
"MINSK, Belarus (AP) — Russia cut off electricity supplies to struggling Belarus over unpaid bills on Wednesday, raising the heat on its economically struggling neighbor."

What kind of BS is this? There has never been any other game, and there never will be. -- RF

France supplying weapons to Libyan rebels
"France has begun supplying weapons to the Libyan rebels despite the UN arms embargo, confirming on Wednesday it had dropped assault rifles into the Nafusa Mountains south-west of Tripoli."

China lambastes Japan after Taiwan boat confrontation
"BEIJING, June 29, 2011 (Reuters) — China's Foreign Ministry lambasted Japan on Wednesday after a confrontation between a Taiwanese fishing boat and a Japanese coast guard vessel near a group of disputed islands in the East China Sea."

## Global unrest ##
Egypt: Fresh clashes erupt in Cairo's Tahrir Square

## Energy/resources ##

Iraq can barely handle oil security in south
"BASRA, Iraq, June 29, 2011 (Reuters) — Iraq is barely capable of protecting its vital oil infrastructure and could falter if its oil police do not get enough manpower and sophisticated security equipment soon, a senior Iraqi security official said."

And what are they protecting? Iraq's oil infrastructure is a pile of rusting junk. -- RF

Brazil Steelmakers Face 'Increasingly Difficult' Coal Supply
"RIO DE JANEIRO -(Dow Jones)- Some new steel mills planned in Brazil won't emerge due to coal supply difficulties, industry consultants said Tuesday."
Crude oil hovers near $93 per barrel

Brazil and China Battle Over Copper in Africa
"Brazil and China are heading for a battle of strategic necessity over copper in Africa that will leave the winner walking away with the most expensive acquisition of a diversified minerals company."

A good read on the shale gas boom. -- RF
China's Diesel Smile (Gregor Macdonald)

Opec split threatens increase in Saudi oil production
"A growing split between the world's biggest oil consumers and major Opec producers over prices means Saudi Arabia may no longer increase its oil output by as much as it pledged."

## Infrastructure scavenging ##
Arrest Made In Dept. of Agriculture Outage

"An arrest has been made in connection with a copper theft that cut off telephone and internet service at the headquarters of the state Dept. of Agriculture near Charleston Tuesday."

## Got food? ##

"The global agriculture supply situation has worsened and a failure to boost food production fast enough to meet demand may lead to shortages, said investor Jim Rogers, chairman of Rogers Holdings.

"'We've got to do something or we're going to have no food at any price at times in the next few years.'"
UN warns of severe food crisis in Horn of Africa

Soggy U.S. Corn Fields Curb Planting
"U.S. corn farmers were unable to plant on soggy or flooded fields from Arkansas to North Dakota this year, signaling tighter grain stockpiles even after rising demand for livestock feed and ethanol sent prices surging."
Reports of North Korea food shortages overblown, say US, South Korea

## Intelligence/security/internet/systemic breakdown ##
MasterCard website attacked by hackers
Hackers hit Arizona law enforcement
MidEast states fly military jets disguised as commercial planes

"Middle East military jets equipped with state-of-the-art surveillance technology are being disguised as commercial aircraft to enable them to operate discreetly, defence experts told Arabian Business."

## Japan -- Long, Hot Summer ##
Summer power crunch for Tohoku Electric (article in Japanese)

Tohoku Electric, the utility that serves northeast Honshu, has determined its current maximum output to be 12,300 MW, which is more than 40% below its pre-disaster capacity of 21,100 MW. Maximum predicted demand in August is 13,000 MW to 13,800 MW. Rolling blackouts could become necessary if conservation can't hold down demand.

Tokyo Metro subway stations to heat up from Friday
Hot day stokes power overload fear
"Demand for electricity in Tokyo Electric Power Co.'s service area totaled 45.7 million kw after 2 p.m. Wednesday, about 93 percent of the utility's maximum supply capacity."

Automakers Begin Designated Weekday Shutdowns
"TOKYO (Kyodo)--Japan's auto industry began designated weekday shutdowns Thursday, with three major automakers closing their plants through Friday as part of efforts to save electricity."

"Japanese factory output jumped by the most in almost 60 years in May as manufacturers restore supply chains damaged by the massive earthquake and tsunami in March, the latest evidence the economy is headed for a "V-shaped" recovery from the disaster."

A V-shaped recovery? From what? Japan's collapse started 20 years ago. This is nothing but noise. -- RF

"The accident at the Fukushima No. 1 nuclear power plant has brought to light the cascading problem of spent nuclear fuel that threatens to overwhelm Japan's nuclear power plants."

## China ##

China's debt bomb (CNN)

China's Top Auditor Warns of Chinese Local Government Defaults (Mish)
China's Local Governments Really Want To Default On Their Debts
China Pork Prices at Record High, Likely to Spur Inflation
Investors pile into the bet against China
"Manufacturing jobs are leaving China and returning to the U.S. But many investors are betting that that may actually be the least of China's problems."

## UK ##
Household spending power suffers biggest drop in 34 years

## US ##
Financial martial law: Crumbling US town on verge of democratic collapse (video)
Cops Fear Violence Against Flash Mobs

"UPPER DARBY, Pa. - As police in Upper Darby, Pa., search for more young people involved in last week's flash mob, more adults are thinking about arming themselves with guns.

"ATLANTA, June 28 (UPI) -- A smash-and-grab mob of almost a dozen thieves plundered a clothing boutique in downtown Atlanta in an early morning robbery, police said."

"An increasing number of financial institutions are vying to make loans on commercial real estate now. But many buildings are still drowning under heavy debt loads, leaving few properties that can support new borrowing."

Police Forced Out Due to Budget Crisis (Texas)

## Global economic meltdown ##
No relief seen from inflation in S. Korea

Afghanistan Central Bank Head Flees To US
Specter of Years of Stagnating Wages Hunts the Globe (FT via CNBC)

"In the postwar years, there was a belief in developed economies that each generation could expect to have materially better living standards than their parents. Yet the outlook for income growth has rarely looked worse than it does today."

Debt saturation and energy decline make it inevitable. And it's going to get worse as the global "growth-economy" Ponzi scheme continues to unravel. -- RF

No bailout Plan B, EU warns Greece
"The European Commission insisted today it isn't bluffing over the euro crisis - if Greece does not vote for more austerity tomorrow there is no more EU bailout money."

A good read. Local governments around the world are up to their eyeballs in debt. -- RF

Indian Companies Tighten Their Belts (WSJ)

"NEW DELHI—India's companies are scaling back spending and curbing expansion plans this year, putting a dampener on the country's economic growth, in an unintended consequence of interest-rate hikes aimed at stemming inflation."

Saab can finally pay workers... to do nothing

## Fault lines/flashpoints/military ##

Population bomb: 9 billion march to WWIII (Paul Farrell)

South China Sea disputes could lead to war in Asia: think tank
"CANBERRA, June 28, 2011 (Reuters) — Risks are growing that incidents at sea involving China could lead to war in Asia, potentially drawing in the United States and other powers, an Australian think tank warned on Tuesday."
Berlin Willing to Supply Weapons for Libyan War

"NATO is running out of munitions to use in the Libya conflict. Now the German government is willing to supply weapons to its allies, despite its fundamental opposition to the war, SPIEGEL ONLINE has learned. The defense minister has already approved a NATO request. "

So far it appears that KSA no longer has the spare capacity to do it. -- RF

Yemen is toast. -- RF

## Global unrest ##
Senegal: Protests in Dakar and Mbour over power cuts

"In Dakar, several government buildings were set on fire including the offices of the state electricity company.

"Security forces in Mbour fired tear gas to disperse thousands of demonstrators."

## Energy/resources ##
Japanese firm to recover gold, silver from E-waste

Crude oil back at $92 per barrel
Prepare for a world energy war (Michael T. Klare)

However, I disagree that in 30 years renewables will be able to take up the slack. -- RF

"Dubai, the second-largest of seven sheikhdoms in the United Arab Emirates, has stopped supplying gasoline to its neighbors as subsidies on fuel prices squeeze the city's ability to service and repay debt.

"Emirates National Oil Co., a Dubai government-owned refiner and operator of service stations, closed filling points in neighboring Sharjah and restricted supplies to other northern emirates last week. Dubai has $16 billion of publicly held debt maturing later this year, International Monetary Fund data show."

## Got food? ##

"China needs to reduce food production on its dry northern plains or aquifers will diminish to a "dire" level in 30 years, one the country's leading groundwater experts has warned."

## Environment/health ##
Horn of Africa sees 'worst drought in 60 years'

## Intelligence/security/internet/systemic breakdown ##
Waterlogged Sask. highways crumble in spots (Canada)

"The hacker group Anonymous on Monday declared war against the city of Orlando, Florida, over the arrest of people handing out food to homeless people."

At end, bin Laden wasn't running al Qaida, officials say
This whole debate about whether bin Laden was in command or not is absurd because he'd already been dead for years. -- RF

## Japan ##
Japan: "Too Rich To Be Bankrupt"

"Societe Generale not only believes that Japan is on course for a v-shaped recovery, but they also say Japan is 'too rich to be bankrupt.'"

I've been waiting to see that V-shaped recovery for 20 years. No sign of it yet. -- RF

38 years of nuke profit up in smoke?
"Tokyo Electric Power Co. faces a potential damages bill exceeding its profits from nuclear power generation over a 38-year period beginning in 1970, the year it opened the crisis-hit Fukushima No. 1 plant, according to a recent study."

Stupid and shortsighted. -- RF

## China ##

Higher hydropower generation eases China power shortages - NDRC
Some Japanese companies in China also notified of rolling blackouts (link in Japanese)

Japanese companies in Kunshan City, an industrial city near Shanghai, are expected to share the pain.

China Heading for a Hard Landing, Pt. 2
Old pipes stymie water quality (Shanghai)
Who Says China Inflation is Under Control

## UK ##
Cuts protests: where is the anger now? Will a teachers' strike reignite the unrest?

"More than 10,000 retail jobs face the axe as the British high street faces one of its most painful bouts of contraction since the second world war amid the biggest squeeze on household budgets for decades."

Household income sees biggest fall since 1977
"UK households have seen the biggest fall in disposable income for more than 30 years, official figures have shown."

## US ##

"When commercial nuclear power was getting its start in the 1960s and 1970s, industry and regulators stated unequivocally that reactors were designed only to operate for 40 years. Now they tell another story — insisting that the units were built with no inherent life span, and can run for up to a century."

Desperate situations make people spout absurdities. -- RF
Think Congress has a month to avert Debt Default Day? Think again.
Moody's cuts Connecticut outlook to negative

Exactly what I said yesterday. Whitney has been right since the beginning. Don't touch that dial — the muni crash-and-burn show will go on! -- RF

## Global economic meltdown ##

"The Bank for International Settlements (BIS) has warned that low interest rates across the globe are a threat to world financial stability."

Moody's: Greek Banks Have Lost 8% of Deposits
"Greek banks have lost about 8 percent of their private-sector deposits so far this year as customers worried about Greece's potential debt default transferred funds abroad or bought gold, Moody's said Monday."

## Fault lines/flashpoints/military ##

## Global unrest ##
Turkey police disperse pro-Kurdish protesters

"Upset that a planned high-speed railroad line would disrupt their mountainous environment, around 2,000 demonstrators gathered late Sunday for a protest that erupted into violence early Monday."

## Energy/resources ##

France to invest one billion euros in nuclear power
Protesters Demand French Nuclear Plant Closure
"Thousands of demonstrators formed a human chain outside France's oldest nuclear power plant on Sunday to demand the site be closed as the government mulls whether to extend its life by a decade."
Worldwide Nuclear Industry Woes Deepen

Releasing Oil From the SPR - A Desperate Economic Fix as QE2 Comes to an End? (Gail Tverberg)

Presents both pro and con views. -- RF

## Infrastructure scavenging ##
One copper theft per week has been reported in Fort Worth

## Got food? ##
Starving plight of N Koreans revealed, even military is starving (video)

New burdens put pressure on global supply chain and prices

## Environment/health ##

## Intelligence/security/internet/systemic breakdown ##
More Glitches Hit NYSE Euronext
Google gives user data to government in most cases

## Japan ##
Who will pay for repair of aging street lights and electricity? (article in Japanese)

Kofu, capital of Yamanashi Prefecture, is left with a heavy bill for the repair of and power for aging street lights which declining shopping arcades can no longer maintain. The cash-strapped capital city is wondering how long this can continue.

"TOKYO (Dow Jones)--Kansai Electric Power Co. (9503.TO) said Monday it is unsure if it can restart by July 1 the 900-megawatt No.1 unit at its Maizuru coal-fired power station in western Japan, which has been offline since May 30 for unplanned maintenance.

"The outage of the big thermal power unit may worsen an expected power shortage in the Kansai area amid the continued suspension of the utility's nuclear power reactors."

Disposal of radioactive debris a headache for Fukushima Prefecture
"A lack of storage space and incinerators and fierce disagreements over final disposal sites--municipalities in Fukushima Prefecture face extreme difficulties in disposing of tsunami debris contaminated with radioactive material leaked by the crippled Fukushima No. 1 nuclear power plant."

More problems arise, new cabinet posts and bureaucracies are created to deal with them, complexity and energy flows increase: Here we can see the classic path toward inevitable collapse. -- RF

## China ##

"China's local governments had amassed 10.7 trillion yuan ($1.65 trillion) of debt by the end of last year, Liu Jiayi, auditor general of the country's National Audit Office, said Monday. That's equal to more than a quarter of China's 2010 gross domestic product of 39.7983 trillion yuan."

China to lower petrol tariffs from July 1st

## UK ##
Elderly 'facing cuts to care despite promises'

Cut, cut, cut. -- RF

## US ##
Threat of $100 Billion Hit if US Top Rating Lost
"Investors in the U.S. government bond market could face losses of up to $100 billion if the largest economy loses its triple A rating, according to a research arm of McGraw-Hill, the parent of Standard & Poor's."
Back-Up Generators Used At NE Nuclear Plant

The Next Mortgage Bombshell (Barron's)
"The private insurers that cover $700 billion of U.S. mortgages are facing an onslaught of foreclosures. The big three—MGIC, Radian, PMI—are at risk."

Meredith Whitney has always been right. It's just a matter of time until munis crash and burn. -- RF

## Global economic meltdown ##
Economist Charles Gave: The Euro Will Not Exist In One Year!
Ex-IMF chief: Emerging markets to dominate world, dollar to lose power
Pimco's El-Erian Says U.S. Debt Default Might Have 'Catastrophic' Effect
Inflation fears as India hikes fuel costs

"Dubai must take action to decide the future of real estate projects that have halted in the wake of the financial crash, analysts said, as cash-poor developers stall to avoid refunding investors."

## Fault lines/flashpoints/military ##

"NAJAF, Iraq (AFP) – Supporters of Shiite radical leader Moqtada al-Sadr have offered to carry out suicide attacks against US troops in Iraq, his office said Saturday, as a year-end deadline for a US pullout looms."

This might just be put on the back burner — to keep simmering — like the Shirakaba/Chunxiao gas field dispute between Japan and China.

Iran to Stage Missile Wargames

## Global unrest ##
Teen mob storms Chicago Walgreens

"Scores of teenagers stormed a Chicago Walgreens store on North Michigan Avenue, stealing bottled drinks and sandwiches en masse, police said."

"They stole sneakers, socks, watches, whatever they could get their hands on, and left."

## Energy/resources ##

Peak Oil - the clear and present danger (TOD)

"Peak oil may threaten the global banking and financial system since the Ponzi scheme of growth based on credit expansion requires a growing stream of cheap energy to fuel the real economy."

The Facts About Fracking (A pro-fracking article from the WSJ)

"Natural gas companies have been placing enormous bets on the wells they are drilling, saying they will deliver big profits and provide a vast new source of energy for the United States.

"But the gas may not be as easy and cheap to extract from shale formations deep underground as the companies are saying, according to hundreds of industry e-mails and internal documents and an analysis of data from thousands of wells."...

"'The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work,' an analyst from IHS Drilling Data, an energy research company, wrote in an e-mail on Aug. 28, 2009."

'Fuel price hike cripples transporters, economy of country'
"New Delhi, June 25 (IANS) The Delhi Transporters Association (DTA) Saturday protested the hike in price of diesel, saying that it will have a crippling effect on the truckers and transporters - and thus on the economy of the country."
Strategic petroleum reserves: The world's last 'swing producer' tries to save the economy
Dozens of countries queue up to go nuclear

## Got food? ##
WB moves to curb high food prices

## Environment/health ##
Cheap pesticide, costly harvest: Kids genetically poisoned in India (video)

## Intelligence/security/internet/systemic breakdown ##
LulzSec announces it is disbanding

## Japan ##
Japanese parents fume over Fukushima radiation impact
"Angry parents of children in Japan's Fukushima city marched along with hundreds of people on Sunday to demand protection for their children from radiation more than three months after a massive quake and tsunami triggered the worst nuclear disaster in 25 years."

METI goes on TV to pitch reactor restarts at Genkai
"The government took to the airwaves and Internet on Sunday to lobby residents of Saga Prefecture to let Kyushu Electric Power Co. restart the reactors at the Genkai nuclear power plant."

"The March 11 earthquake, at the end of fiscal 2010, hurt many businesses and pushed some into the red, but brisk business in the previous 11 months helped many crucial sectors to positive results."

## China ##
Storm drenches east China while drought plagues northwest
China to cut import VAT to boost coal import

## UK ##
UK farm exports to get boost in $1.6 bln UK-China deals

## US ##
The Incredible Comeback For The American Farmer
Flood wall fails at Fort Calhoun

U.S. Economy: Low Money Velocity Signals Troubles Ahead
Abandoned projects leave lasting reminder of economic crash (Las Vegas)

And finally... Brady Bunch mom got crabs in affair with NY mayor

## Global economic meltdown ##
Swiss Franc Climbs to Record High Versus Euro Amid Concern on Debt Crisis

Bankers agree on plan to increase capital buffers
Expect Chaos (Mish)

The end of Ponzi financing era in the United States and the World – When income, revenues, and swindles no longer support servicing debt. From California home owners, Greek bondholders, and Japanese zombie banks. (Dr. Housing Bubble)

Gasp! -- RF

## Fault lines/flashpoints/military ##
Pakistani police station attacked

## Global unrest ##
Protests go on as car bomb kills five in Yemen

"Thousands of protesters opposed to mining and energy projects in southern Peru have taken over a commercial airport as the government struggled to restore calm a day after five died in a clash with police.

"Officials said that approximately 3,000 protesters had occupied the runway at the Juliaca airport in the region of Puno on Saturday. Several hundred police officers retreated to avoid another clash after weeks of protests over a controversial Canadian mining project."

Dozens march for freedom in Saudi Arabia: YouTube
"DUBAI, June 25, June 25, 2011 (Reuters) — Dozens of people wearing white shrouds have staged a peaceful march in the oil-producing region of eastern Saudi Arabia, demanding basic rights and the release of prisoners, according to a video posted on YouTube."

Greek Power Workers Ordered to Obey Court Order
"Greece's Energy Ministry called on the union at Public Power Corp SA (PPC) to abide by a court order directing the striking workers to bring a number of power units back online.
"The defiance of the order to the GENOP-DEH union to bring capacity back to June 23 levels is "creating a shortfall which places the stability of the system in a critical situation", the Athens-based ministry said in an e-maied statement. The shortage led to extended power cuts today and yesterday, when Public Power sought to have the strike declared illegal, according to the statement."

## Energy/resources ##

Contango Dooms Reason for Strategic Oil Release
Power-grid experiment could confuse electric clocks (US)

"Tweaking the power grid's frequency is expensive and takes a lot of effort, said Joe McClelland, head of electric reliability for the Federal Energy Regulatory Commission."

Hydropower increase won't end electricity shortage (China)

Tanzania announces indefinite power outages
"Tanzania's state-run power company has announced daily 12-hour power cuts for an unspecified period because of low water levels at hydropower dams and a shortage of fuel for thermal power generation."

## Got food? ##
Food Price Volatility and Insecurity (CFR)

Costlier diesel to fuel food price rise (India)

Higher gasoline prices drive up cost of food 8 percent (US)

## Environment/health ##
For a real vacation, stay off Internet

Severe drought hits eastern Africa
"Ten killed in clashes over grazing and water and Red Cross says several have died of starvation in Kenya."

## Intelligence/security/internet/systemic breakdown ##
PBS website hacked again, some data taken
Must read: AP Enterprise: Pharmacy robberies sweeping US

"A wave of pharmacy robberies is sweeping the United States as desperate addicts and ruthless dealers turn to violence to feed the nation's growing hunger for narcotic painkillers.

"From Redmond, Wash., to St. Augustine, Fla., criminals are holding pharmacists at gunpoint and escaping with thousands of powerfully addictive pills that can sell for as much as $80 apiece on the street."

Anti-Virus Pioneer Evgeny Kaspersky: 'I Fear the Net Will Soon Become a War Zone'
"Evgeny Kaspersky is one of Russia's top Internet virus hunters and IT entrepreneurs. In a SPIEGEL interview, he discusses a raft of recent hacker attacks on multinationals, the 'total professionals' behind the Stuxnet virus and his fear of both personal and widespread cyber violence."

## Japan ##

"With increased power consumption mainly due to air-conditioning, peak demand was 91 percent of TEPCO's 47.9 million kilowatt capacity."

"Nobumoto said automakers may be unable to secure enough parts for their planned production increases, which are expected to go into high gear this autumn, 'depending on the supply of electricity.'"

Toyota considers operating plant on industry's designated holidays
"Toyota Motor Corp. is considering operating a factory on the auto industry's designated holidays, joining other leading automakers in exempting itself from a nonbinding agreement to stop plants on Thursdays and Fridays during summer to save electricity, company officials said Friday."

## China ##
China Banks Told to Cut Loans to Property Speculators

"Import tariffs on gasoline and fuel oil will both be lowered to 1 percent from the previous 5 percent and 6 percent, respectively, while tariffs for diesel and aircraft fuel will be cut to zero, the ministry said in a statement on its website."

China's ticking time bomb
"The fast-growing economy is fueled by low-paid migrant workers who have watched others profit from their sweat. How much longer will they be willing to do it?"

## UK ##

New crackdown on militant unions
"Ministers are drawing up plans for a harsh new crackdown on unions to be brought in if this week's strikes over changes to public-sector pensions develop into a full-scale summer of discontent."

## US ##
Millions of teens facing a jobless summer (video)
Tighter Lending Crimps Housing

It's not a "slowing recovery" any more than it's a "double dip." It's just a continuation of the overall downward trend toward collapse. -- RF

State and local government s should be listed as a primary risk to the US outlook
Forecasts for Growth Drop, Some Sharply (NYT via CNBC)
"A drumbeat of disappointing data about consumer behavior, factory sales and weak hiring in recent weeks has prompted economists to ratchet down their 2011 economic forecasts to as little as half what they expected at the beginning of the year."
Austerity Is Already Here, and It's Killing the Recovery