Daily Digest 5/26 - Inside Gadhafi's Surveillance Network, China Finally Slows Growth, What Superweeds Can Teach You
- Jamming Tripoli: Inside Moammar Gadhafi’s Secret Surveillance Network
- After Barreling Ahead in Recession, China Finally Slows
- Part 10: Inter-Regional Trade Movements of Petroleum to and from Japan
- Greasing the Wheel: Oil’s Role in the Global Crisis
- What Superweeds Can Teach You
Illegalities (Thomas C.)
On May 13, 2008, the CFTC published a 16 page public response to my allegations of an ongoing manipulation in silver by means of a concentrated short position. The response was based upon silver market activity through the end of 2007, thereby conveniently sidestepping the drama that occurred through March 2008 when the biggest silver short in the market, Bear Stearns, failed and needed to be rescued with taxpayer assistance (Federal guarantees given to JPMorgan). The May 13, 2008 report from the CFTC went into great lengths in explaining there was nothing amiss on the short side of silver, even though the Commission knew that two months before the report was issued, the biggest concentrated short had failed and needed to be rescued by taxpayers. A lie by omission is no less of a lie.
It was February 10, 2011, and Libya was in an uproar. Two months earlier, in neighboring Tunisia, a street vendor named Mohammed Bouazizi had set himself on fire after a policewoman beat him and confiscated his wares. It was the beginning of the Arab Spring, a series of uprisings, revolutions, and civil wars that would radically alter the politics of the Middle East. In Libya, opponents of the Gadhafi regime had called for a day of protest on February 17, to mark the anniversary of a 2006 protest in the city of Benghazi, where security forces had killed 11 demonstrators and wounded dozens more.
A deepening slowdown would ripple across the world economy. Until now, China’s economy barreled ahead mostly unhindered as the main engine of global growth, even as Europe struggled with its government debt crisis and the United States limped along with a crippled housing market.
Japan’s growing dependence on petroleum imports from the Middle East, a region whose total petroleum exports have been flat for the past several years, and whose exports appears to be shifting towards China and the remaining Asia Pacific region (see e.g., Figure 10 in Part 7), does not bode well for Japan having a reliable import source upon which to depend. Indeed, troubles in the Middle East involving a loss of petroleum exports would be a disaster for Japan as 70 percent of its total petroleum imports must travel through the Strait of Hormuz.
Between January 2002 and August 2008, the nominal oil price rose from $19.7 to $133.4 a barrel. This led to a large increase in oil revenues for oil exporters and a deterioration of the current account for oil importers (Figure 1). Between 2002 and 2006, net capital outflows from oil exporters grew by 348%, becoming the largest global source of net capital outflows in 2006 (McKinsey 2007). Capital outflows from oil exporters therefore played an important role in the global liquidity glut during the build-up to the US subprime crisis.
What Superweeds Can Teach You (Dagny)
The same genetic modifications that made useful crops immune to Roundup have migrated into the genetic code of the weeds that were sprayed with it. Now, 20 species of weeds across 12 million acres of farmland (about 8% of all US farmland) are resistant to Roundup. Further, given current rates of growth, most of US farmland will have them too in five years.
Article suggestions for the Daily Digest can be sent to dd@PeakProsperity.com. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."