Rice Farmer

## Global economic meltdown ##
S&P says likely to declare Greece in default

Europe faces malaise and must reform, World Bank says
"Europe has little chance of making a strong economic recovery even if an impending recession proves mild and faces weak growth for the foreseeable future, burdened by debt that may not reach manageable levels until 2030, the World Bank said on Tuesday."

Greek Economy on Track to Implode: Hanke (Bloomberg)
"Whether or not Greece is able to reach an agreement on the restructuring of its debt, the country is set to 'implode' as the economy contracts, according to Johns Hopkins University's Steve Hanke.
"'The game is completely over,' Hanke, professor of applied economics, said at the Bloomberg Sovereign Debt Crisis Conference in New York hosted by Bloomberg Link. 'All the calculations are nonsense and have been since day one. Since the crisis began the money supply has been shrinking and the economy is going to implode, no matter what they do in the short run.'"

Hard Greek Default Likely This Quarter: Strategist (CNBC video)
"Bob Janjuah, Co-Head of Cross-Asset Allocation Strategy, Nomura, told CNBC, 'nobody is convinced that the fundamental story has been dealt with, I think what we are talking about here is a liquidity fuelled rally in risk assets, if that becomes a self-fulfilling prophecy, great but if it doesn't the ECB's balance sheet is going to look a real mess.'"

Young workers hit by rising unemployment (Australia)

India to pay gold instead of dollars for Iranian oil
"India is the first buyer of Iranian oil to agree to pay for its purchases in Gold instead of the US dollar, reported DEBKAfile's intelligence and Iranian. Those sources expect China to follow suit. India and China take about one million barrels per day, or 40 percent of Iran's total exports of 2.5 million bpd. Both are superpowers in terms of gold assets...

"The vast sums involved in these transactions are expected, furthermore, to boost the price of gold and depress the value of the dollar on world markets."

## Fault lines/flashpoints/powder kegs/military/war drums ##

"In an interview, Zbigniew Brzezinski, one of America's leading strategists, discusses shifting global power, looking at China, Europe, Turkey, Russia, the US, and the Arab Spring."

Pro-Gaddafi forces strike back, 'Libya out of control' (RT video)

Former Gaddafi stronghold revolts against Tripoli
"Libya's ramshackle government lost control of a former stronghold of Muammar Gaddafi on Tuesday after local people staged an armed uprising, posing the gravest challenge yet to the country's new rulers."
UK could send military assets to Strait of Hormuz

## Global unrest/mob rule/angry people/torches and pitchforks ##
US relocates Bahrain embassy staff in safety move
"The United States said Monday it is relocating embassy staff and their families to new neighborhoods in Bahrain's capital Manama as part of safety precautions amid anti-government unrest."

Leaders' fear of political unrest grows
"WORLD leaders are increasingly fearful of major social and political unrest as they gather for a week of debates and drinks parties in Davos, according to three reports released yesterday.
"A majority of 345 designated 'risk experts' surveyed by the World Economic Forum (WEF) expected 'a major geopolitical disruption' – ranging from a terrorist attack to political unrest or war – to materialise over the next year. That compares to just over a third of those asked at the start of 2012."

Calls for demonstrations on Wednesday (Egypt)

## Energy/resources ##
US-Iran standoff to send fuel prices through the roof (Pakistan)

"The price of fuel oil and marine fuel, known as bunker fuel, has risen to within a whisker of the record high set in 2008. A combination of low supplies as refiners shift output towards diesel and petrol and strong demand for electricity generation in Japan has pushed prices higher."

Mexican state oil company says production continues to fall; dropped 1 percent in 2011

## Environment/health ##
Losing Bats to White Nose Syndrome

## Intelligence/security/internet/systemic breakdown ##
Judge: Order to Decrypt Laptop Does Not Violate Fifth Amendment
Hackers Breached Railway Network, Disrupted Service

## Japan ##

"In his 2011 book Endgame, New York Times best-selling author John Mauldin calls Japan a 'bug in search of a windshield,' and it's a great metaphor."
Exporter Japan eyes first trade deficit in three decades

"Japan probably produced its first trade deficit last year in more than three decades as energy imports surged to cover for the loss of nuclear power following the Fukushima disaster, a major blow to an economy built on its exports prowess."

## China ##
Gordon Chang: Inflation nudging Chinese to buy more gold

## UK ##
Police issue security warning as fuel thieves hit lorries

Record diesel prices expected after refinery goes into administration
"1,000 jobs at risk after Coryton refinery in Essex stops supply, threatening disruption that could raise cost of food"

House sales plunge to continue three-year slump

## US ##
Heating Oil Advances on EU Ban of Iran Oil, Refinery Shutdowns
Obama to Use Pension Funds of Ordinary Americans to Pay for Bank Mortgage "Settlement"
LAPD: Joint Military Drills In Downtown LA Won't Disrupt Public's 'Daily Routines'

"Slab City is an informal community in the California desert on the site of a former WWII artillery range. The recent recession has sent the town a new wave of people who have fallen on hard times and are looking to escape the burdens of modern life."

Illinois will likely be one of the states leading the muni bond collapse. -- RF