Meltdown

[ezodisy]

well it should be fun to watch all of the Schiff/Faber/Rogers/Paul videos this weekend after that announcement last night.

What does one TRILLION dollars look like?

[Lethevich]

What does one TRILLION dollars look like?

Surprisingly small

Edit: actually, epic fail on my part - I saw the second from last picture with "1 trillion" underneath it. Skim-reading is far from ideal :x

[BachQ]

What does one TRILLION dollars look like?

Recall what Copernicus said about printing too much money: it's one of the four worst disasters that can befall a country (along with war, famine, and disease), and one of the worst courses of action a country can embark upon.  It's only a matter of time until China dumps US treasuries, and the US dollar tanks.

Gold and oil are looking pretty good ..... and deflation has just about run its course.

well it should be fun to watch all of the Schiff/Faber/Rogers/Paul videos this weekend after that announcement last night.

I expect that we will see the very best commentary yet from Schiff, Rogers, Faber, and Ron Paul.  Schiff will need to revisit the dosages of his high bloodpressure medication lest he have aneurysm.

They all predicted the Fed would do this ... so the question is how many more nails can the US coffin accommodate?

[ezodisy]

Recall what Copernicus said about printing too much money: it's one of the four worst disasters that can befall a country (along with war, famine, and disease), and one of the worst courses of action a country can embark upon.  It's only a matter of time until China dumps US treasuries, and the US dollar tanks.

Yeah and the spike last night on cable and eur/usd was amazing. Cable shot up about 300pips in 30 minutes! lol We might be looking at my hopeful retrace to the 1.60/1.70 region on cable.......The weekly candle is extremely bullish just now. Of course the £ is screwed, but the $ is finished 

Gold and oil are looking pretty good ..... and deflation has just about run its course.

yean and with the oil recovery comes a revived interest in oil juniors which have been beaten down ridiculously.   target some with low debt, some cash and good assets and you can start to expect recovery and in some cases a takeover

They all predicted the Fed would do this ... so the question is how many more nails can the US coffin accommodate?

lol!

[BachQ]

Yeah and the spike last night on cable and eur/usd was amazing. Cable shot up about 300pips in 30 minutes! lol We might be looking at my hopeful retrace to the 1.60/1.70 region on cable.......The weekly candle is extremely bullish just now. Of course the £ is screwed, but the $ is finished 

Just as we predicted:

Reuters: U.N. panel says world should ditch dollar

Reuters: China backs Russia's plan to ditch dollar as reserve currency

Looks like the Geithner-Obama-Bernanke (GOB) magical money making machine has run its course.

[Archaic Torso of Apollo]

Some of you might enjoy James Fallows' speculative future history written in 2005, "Countdown to a Meltdown":

http://www.theatlantic.com/doc/200507/fallows

[ezodisy]

Just as we predicted:

Reuters: U.N. panel says world should ditch dollar

Reuters: China backs Russia's plan to ditch dollar as reserve currency

Looks like the Geithner-Obama-Bernanke (GOB) magical money making machine has run its course.

well that is some pretty big news Fibo. I am looking for cable to retest the daily breakout around 1.43 and then shoot to the moon next week. Let's see how it plays out

Some of you might enjoy James Fallows' speculative future history written in 2005, "Countdown to a Meltdown":

http://www.theatlantic.com/doc/200507/fallows

cheers, will check it out this weekend

[BachQ]

well that is some pretty big news Fibo. I am looking for cable to retest the daily breakout around 1.43 and then shoot to the moon next week. Let's see how it plays out

You've probably already read this (it's a month old): Prof. Willem Buiter believes that the dollar will collapse in 2 to 5 years as foreign investors dump their US dollar assets. 

The US Federal government has taken on massive additional contingent liabilities through its bailout / underwriting of the US financial system (and possibly other bits of the US economic system that are too politically connected to fail).  Together will the foreseeable increase in actual Federal government liabilities because of vastly increased future Federal deficits, this implies the need for a future private to public sector resource transfer [i.e., higher taxes or lower public spending] that is most unlikely to be politically feasible without recourse to inflation.  The only alternative is default on the Federal debt.  There is little doubt, in my view, that the Federal authorities will choose the inflation and currency depreciation route over the default route.

[BachQ]

Sea levels rising at nearly double previous estimates due to global warming

Scientists predict that global sea levels could rise nearly 40 inches by the end of the century, according to a recent report from the U.S. Environmental Protection Agency.The new estimates nearly double the worst-case scenario presented in 2007 by the Intergovernmental Panel on Climate Change, which projected a global sea level rise of 7 to 23 inches by the end of the century. Scientists are observing accelerated ice flow and melting in some glaciers and many studies now estimate the increased rise in global sea levels as a result, the EPA
reports.


[NOTE: This information is based on the EPA report titled "Coastal Sensitivity to Sea-level Rise: A Focus on the Mid-Atlantic Region," which involved the EPA, the U.S. Geological Survey and the National Oceanic and Atmospheric Administration, outlines the impact of sea-level rise and strategies for regional preparation. States in addition to New York are taking steps to address the predicted threat]. 

Parts of New York City would be at risk of submersion even with roughly 16 inches of local sea-level rise, according to research from Columbia University. Because the additional water would weaken or destroy wetlands and flood protection, major storms could submerge Coney Island, much of southern Brooklyn and Queens, portions of Long Island City, Astoria, Flushing Meadows-Corona Park, Lower Manhattan, and eastern Staten Island, one study showed.

[Coopmv]

The Island of Singapore could be sunk by Tsunami, read on [/size] ...
Expert : Singapore not tsunami-proof


Batam, Riau province, (ANTARA News) - Singapore is not at all free from the risk of being devastated by a tsunami, an expert from the National Geography Department of the University of Singapore, Professor Wong Poh Poh, said here Saturday.

"It doesn`t take a tidal wave as high as the one that engulfed Aceh to destroy many key infrastructures in Singapore," he said in a talk with Channel News Asia monitored by Antara here.

Almost four years ago (December 26, 2008), a tsunami (10m high) hit Aceh and killed 168,000 people.

The problem in Singapore, said Wong, was that most of its infrastructures were located near beaches.

"It will only take a low tidal wave to hit and destroy those infrastructures and the areas around them," he said.

Prof Wong said Singapore`s international airport (Changi) could be easily destroyed by a tsunami, and so could housing complexes in the Petrokimia area, Jurong Island.

Besides Singapore, tourist resorts and residential areas on Batam Island`s beaches (about 20 km from Changi and Jurong were also vulnerable to the destructive force of a tsunami, he said. (*)

COPYRIGHT © 2008

[Coopmv]

Will other industrialized nations follow France and how will it impact the developing countries? ...
Renault moves production from Slovenia to France
By EMMA VANDORE


Renault SA said Friday it plans to create 400 jobs in France by moving production of its small Clio Campus model from Slovenia to the French site of Flins northwest of Paris.

The move raised concerns about protectionism at a European Union summit in Brussels. EU officials have warned French President Nicholas Sarkozy not to let his efforts to help the French auto industry cost jobs in other countries.

European Commission spokesman Jonathan Todd said that the EU's competition authorities find it "surprising" that a French government industry official linked the move to a decision to provide billions in aid to struggling French carmakers.

Sarkozy angered eastern European states earlier this year when he hinted that car makers getting large French government subsidies should think of shifting production back to France from low-wage countries.

He defended Renault's decision at a meeting of EU leaders on Friday, saying it had nothing to do with economic nationalism and all with common sense.

"It is exactly what I want," said Sarkozy after the summit. "We can defend production in France without costing one job in Slovenia," he said. "It makes me happy."

Renault, which is getting a euro3 billion ($4 billion) rescue loan from the French government, is bound by an agreement not to make forced redundancies in France this year and not to close factories.

Industry Minister Luc Chatel welcomed Renault's move in a radio interview Friday, calling it a "repatriation of the production" that is the "result" of government help to the automobile sector.

Renault spokeswoman Natalie Bourotte says the move will not entail any job losses at its Slovenian plant at Novo mesto, which makes the Twingo and Clio models and is at full capacity. Moving production of the Campus or Clio II model to the Flins plant is designed to absorb additional orders from European government programs designed to get people to buy more lower emission cars, she said.

Last year, the government announced a euro1,000 bonus for consumers trading in vehicles older than 10 years for new low-emission cars and Bourotte said the stimulus measure has boosted demand for small models, some of which are made in Slovenia.

The government is under pressure to show that it is helping ordinary people -- and not just rich bankers -- in its response to the crisis. Trade unions staged nationwide protests and strikes on Thursday that brought over 1 million people onto the streets.

But their efforts are doing little to help the economy, which the national statistics agency said Thursday is shrinking at the fastest pace in over 30 years.

The car industry -- which provides jobs for around 10 percent of the French work force -- has been hit particularly hard.

The CGT union said the 400 temporary jobs at Flins will be filled by Renault workers at other sites currently on reduced working time. In a statement, the union said Chatel is falsely trumpeting job creations and that "it's not by manipulating public opinion" that the government will soothe public feeling.

Bourotte said the decision to boost production at Flins was taken for business reasons to meet increased demand, allowing the Slovenian plant to increase production of the Twingo while the French plant makes more Clio Campus.

"Novo mesto has no more available capacity, which is why we took the decision," she said.

Renault expects to produce around 8,000 Clio Campus in Flins from June to October to meet this extra demand. The French site mostly produces the newer Clio III model.

Nevenka Basek Zildzovic, spokeswoman for Revoz, the Slovenian factory in Novo mesto, confirmed that no job cuts are expected.

"Given that there has been a significant jump in demand for the Twingo and Clio 2 and that Revoz cannot meet all this demand, the decision was taken that Revoz would step up production of the Twingo to the full," she said.

Revoz, which is Slovenia's biggest exporter, produced nearly 200,000 cars last year. Two-thirds of those were Twingo; the rest Clio Campus.

------

[ezodisy]

A.I.G. Sues U.S. for Return of $306 Million in Tax Payments

lol! You could hardly make it up

[ezodisy]

this is a long 5 part interview in which Marc Faber speaks freely and informally (at a cafe or somewhere). Part 3 in particular is good, so's the rest.

edit: check out the part 5 conclusion

http://www.youtube.com/v/q4Dl7JTLEQs

http://www.youtube.com/v/I3kCKebUkew

http://www.youtube.com/v/6LKZG2ShgXY

http://www.youtube.com/v/dBtGwXKvas4

http://www.youtube.com/v/Mp2EmOzxhV8

[BachQ]

this is a long 5 part interview in which Marc Faber speaks freely and informally (at a cafe or somewhere). Part 3 in particular is good, so's the rest.

edit: check out the part 5 conclusion

Yep, Bernanke and Geithner are not only "clowns" ... but "they're TOTAL IDIOTS" ...

I love it!     

Actually, I would have used the phrase "total f#cking idiots," but close enough.   

(haven't reached part V yet)

[BachQ]

Will other industrialized nations follow France and how will it impact the developing countries? ...
Renault moves production from Slovenia to France
By EMMA VANDORE


Renault SA said Friday it plans to create 400 jobs in France by moving production of its small Clio Campus model from Slovenia to the French site of Flins northwest of Paris.

The move raised concerns about protectionism at a European Union summit in Brussels. EU officials have warned French President Nicholas Sarkozy not to let his efforts to help the French auto industry cost jobs in other countries.

European Commission spokesman Jonathan Todd said that the EU's competition authorities find it "surprising" that a French government industry official linked the move to a decision to provide billions in aid to struggling French carmakers.

Sarkozy angered eastern European states earlier this year when he hinted that car makers getting large French government subsidies should think of shifting production back to France from low-wage countries.

He defended Renault's decision at a meeting of EU leaders on Friday, saying it had nothing to do with economic nationalism and all with common sense.

"It is exactly what I want," said Sarkozy after the summit. "We can defend production in France without costing one job in Slovenia," he said. "It makes me happy."

Renault, which is getting a euro3 billion ($4 billion) rescue loan from the French government, is bound by an agreement not to make forced redundancies in France this year and not to close factories.

Industry Minister Luc Chatel welcomed Renault's move in a radio interview Friday, calling it a "repatriation of the production" that is the "result" of government help to the automobile sector.

Renault spokeswoman Natalie Bourotte says the move will not entail any job losses at its Slovenian plant at Novo mesto, which makes the Twingo and Clio models and is at full capacity. Moving production of the Campus or Clio II model to the Flins plant is designed to absorb additional orders from European government programs designed to get people to buy more lower emission cars, she said.

Last year, the government announced a euro1,000 bonus for consumers trading in vehicles older than 10 years for new low-emission cars and Bourotte said the stimulus measure has boosted demand for small models, some of which are made in Slovenia.

The government is under pressure to show that it is helping ordinary people -- and not just rich bankers -- in its response to the crisis. Trade unions staged nationwide protests and strikes on Thursday that brought over 1 million people onto the streets.

But their efforts are doing little to help the economy, which the national statistics agency said Thursday is shrinking at the fastest pace in over 30 years.

The car industry -- which provides jobs for around 10 percent of the French work force -- has been hit particularly hard.

The CGT union said the 400 temporary jobs at Flins will be filled by Renault workers at other sites currently on reduced working time. In a statement, the union said Chatel is falsely trumpeting job creations and that "it's not by manipulating public opinion" that the government will soothe public feeling.

Bourotte said the decision to boost production at Flins was taken for business reasons to meet increased demand, allowing the Slovenian plant to increase production of the Twingo while the French plant makes more Clio Campus.

"Novo mesto has no more available capacity, which is why we took the decision," she said.

Renault expects to produce around 8,000 Clio Campus in Flins from June to October to meet this extra demand. The French site mostly produces the newer Clio III model.

Nevenka Basek Zildzovic, spokeswoman for Revoz, the Slovenian factory in Novo mesto, confirmed that no job cuts are expected.

"Given that there has been a significant jump in demand for the Twingo and Clio 2 and that Revoz cannot meet all this demand, the decision was taken that Revoz would step up production of the Twingo to the full," she said.

Revoz, which is Slovenia's biggest exporter, produced nearly 200,000 cars last year. Two-thirds of those were Twingo; the rest Clio Campus.

------

Coop, I have zero doubt that we will see growing protectionism and nationalism as countries fight for survival in an effort to protect the well-being of their citizens.  And, as economies become increasingly desperate, I fear that this will culminate in war.



Global mess gives birth to new era National Post: ... when you step back from the daily rash of economic news, you can see the current economic crisis is giving birth to a new perilous era. An era of protectionism, failed states and new wars. An era that has such diverse consequences as dealing a blow to Scottish nationalism, hampering al-Qaeda buying weapons and causing the deaths of millions of children. "This crisis is the first truly universal one in the history of humanity," Michel Camdessus, a former managing director of the IMF, told an Asian Development Bank forum in Manila this week. "No country escapes from it. It has not yet bottomed out."

[Coopmv]

Coop, I have zero doubt that we will see growing protectionism and nationalism as countries fight for survival in an effort to protect the well-being of their citizens.  And, as economies become increasingly desperate, I fear that this will culminate in war.



Global mess gives birth to new era National Post: ... when you step back from the daily rash of economic news, you can see the current economic crisis is giving birth to a new perilous era. An era of protectionism, failed states and new wars. An era that has such diverse consequences as dealing a blow to Scottish nationalism, hampering al-Qaeda buying weapons and causing the deaths of millions of children. "This crisis is the first truly universal one in the history of humanity," Michel Camdessus, a former managing director of the IMF, told an Asian Development Bank forum in Manila this week. "No country escapes from it. It has not yet bottomed out."

We are going down that path, I am afraid this is just a matter of time.  How will the national interests be aligned?  I doubt it will be a replay of the two World Wars in terms of who were whose allies.  In all likelihood, it will be the western industrialized nations plus Japan against the rest.

[ezodisy]

Yep, Bernanke and Geithner are not only "clowns" ... but "they're TOTAL IDIOTS" ...

I love it!     

Actually, I would have used the phrase "total f#cking idiots," but close enough.   

(haven't reached part V yet)

In part V he predicts war. If you think he lays into them in that one you've got to hear the 4 part macalavanys interview posted on FinancialTruth: http://financialtruth0.blogspot.com/  That's another good one

[Coopmv]

Yep, Bernanke and Geithner are not only "clowns" ... but "they're TOTAL IDIOTS" ...

I love it!     

Actually, I would have used the phrase "total f#cking idiots," but close enough.   

(haven't reached part V yet)

Look, the Singaporean sovereign fund is run by a bunch of idiots as well.  Didn't they fork over billions to buy a stake in the bankrupt Merrill Lynch.  Boy, did they think they got the deal of the century?  At least Warren Buffett was smarter.    LOL ...

[ezodisy]

In part V he predicts war. If you think he lays into them in that one you've got to hear the 4 part macalavanys interview posted on FinancialTruth: http://financialtruth0.blogspot.com/  That's another good one

people should really listen to that macalavanys interview with Faber, he talks about stuff you never hear elsewhere in the media.

Hey Coop, why do you have a hard-on for everything Asian?

[Coopmv]

Hey Coop, why do you have a hard-on for everything Asian?

Do I have the rights to be amused at how a certifiably dumb American CEO of Merrill Lynch could have conned a group of supremely intelligent Singaporean investment officials at the government sovereign fund into sinking billions of dollars into a patently bankrupt company?