Daily Digest

Daily Digest 3/14 - The Gathering Storm, BOJ Bolsters Money Markets, What Happens In A Nuclear Meltdown

Monday, March 14, 2011, 10:49 AM
  • The Gathering Storm
  • Quake Toll May Top 10,000 as Japan Fights Nuclear Accident
  • Does Anyone Seriously Believe the Global Recovery Is Still Intact?
  • BOJ Takes Action to Bolster Money Markets
  • Update: Make That 15 Trillion; BOJ Raises Liquidity Injection To JPY12 Trillion ($146 Billion)
  • Japan Central Bank Jumps To Help After Earthquake
  • Shake Up & Change
  • U.S. City Fires All Of Its Teachers
  • European Stocks Tumble as Reinsurers, Utilities Fall on Japan Earthquake
  • Why I'm Not Worried About Japan's Nuclear Reactors
  • Japan Earthquake: Nuclear Power Under Fire
  • How a Reactor Shuts Down and What Happens in a Meltdown

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

The Gathering Storm (JimQ)

The firestorm started by Bouazizi has brought down Mubarak in Egypt and is lapping at the heals of Gaddafi in Libya. Tyrants throughout the world are quivering with fear. The mood of the people across the globe has turned dark and angry. The political class and media are persistently surprised by the reaction of citizens to events during the Fourth Turning.

Quake Toll May Top 10,000 as Japan Fights Nuclear Accident (pinecarr)

Workers battled to prevent a nuclear meltdown after a second hydrogen explosion rocked an atomic plant north of Tokyo, while officials said the death toll from the nation’s strongest earthquake may top 10,000.

Does Anyone Seriously Believe the Global Recovery Is Still Intact? (pinecarr)

Today's exercise: design a semi-plausible scenario guaranteed to halt a global recovery that is entirely dependent on massive money printing, credit creation, Central Bank intervention and Central State spending.

I don't know about your answer, but here's my scenario for kicking out the rotten posts holding up a fragile, debt-fueled global recovery...

BOJ Takes Action to Bolster Money Markets (guardia, login required)

The Bank of Japan jumped into action Monday to temper the economic blow from the earthquake, tsunami and nuclear emergency that hit northern Japan, doubling the size of its asset-purchase program and pouring a record 15 trillion yen ($183.17 billion) into money markets to ease liquidity concerns.

Update: Make That 15 Trillion; BOJ Raises Liquidity Injection To JPY12 Trillion ($146 Billion) (pinecarr)

We have since learned that the extra 3 trillion will be use to buy government bonds. Hello QE, my old friend.

Japan Central Bank Jumps To Help After Earthquake (pinecarr)

The Bank of Japan moved quickly to try to keep financial markets stable. By flooding the banking system with cash, it hopes banks will continue lending money and meet the likely surge in demand for post-earthquake funds.

Shake Up & Change (Ilene)

In last week’s newsletter, we discussed the historical connection between rising oil prices and weakness in equities. We wrote: “while Libya produces roughly 1.5 million barrels of oil a day, Saudi Arabia produces over six times that amount... Should Saudi Arabian oil production be disrupted, the consequences for the global economy would be enormous, and the price of oil would undoubtedly go up considerably.” This played out this week. Stocks pulled back from recent highs as concerns mounted over Libya and the discord spreading through Saudi Arabia. Fears of civil unrest in Saudi Arabia helped drive the price of oil to a momentary high of over $106 a barrel for West Texas Intermediate Crude on Monday, March 7.

U.S. City Fires All Of Its Teachers (GBJ)

Not all will ultimately go, but sending dismissal notices to everyone means the city can fire teachers at the end of the school year without regard to seniority.

Angel Taveras, who only took office in January, defended the move by saying it was a necessary "protective measure" to help tackle the shortfall.

European Stocks Tumble as Reinsurers, Utilities Fall on Japan Earthquake (pinecarr)

European stocks dropped for a fourth day, led by a selloff in reinsurers and utilities, as Japan battles to prevent a nuclear meltdown following its largest earthquake on record. Asian shares and U.S. futures fell.

Why I'm Not Worried About Japan's Nuclear Reactors (Ivo)

I have been reading every news release on the incident since the earthquake. There has not been one single (!) report that was accurate and free of errors (and part of that problem is also a weakness in the Japanese crisis communication). By “not free of errors” I do not refer to tendentious anti-nuclear journalism – that is quite normal these days. By “not free of errors” I mean blatant errors regarding physics and natural law, as well as gross misinterpretation of facts, due to an obvious lack of fundamental and basic understanding of the way nuclear reactors are build and operated. I have read a 3 page report on CNN where every single paragraph contained an error.

Japan Earthquake: Nuclear Power Under Fire (pinecarr)

Until the explosion at Fukushima, nuclear power was enjoying a renaissance as a 'clean' source of energy. Now its future looks a lot less secure, says Geoffrey Lean.

How a Reactor Shuts Down and What Happens in a Meltdown (Ivo)

The operating reactors at Fukushima Daiichi power station automatically shut down during the earthquake. But after subsequent cooling failures, two of them went into partial meltdown.

Article suggestions for the Daily Digest can be sent to [email protected]. 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."

13 Comments

saxplayer00o1's picture
saxplayer00o1
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Ivo's picture
Ivo
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Posts: 73
Meanwhile in the Middle East...

...Saudi troops have entered Bahrain

http://www.nytimes.com/2011/03/15/world/middleeast/15bahrain.html

 

green_achers's picture
green_achers
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Joined: Jan 3 2009
Posts: 205
Kunstler's predictable pithy take on it all

He did not dissapoint this morning.

http://kunstler.com/blog/2011/03/rock-me-on-the-water.html

Similarly, in the US. Japan has accumulated about 800-billion in US debt paper. They have more-than-generously propped up our operations here for years by buying the stuff. Now they would seem to have little choice but to liquidate a bunch of it and cancel their seats at the upcoming auctions of new paper issues. That leaves Ben Bernanke alone in his office with a <sneeze> sandwich for lunch. What to do now, Ben? Who on this planet is going to buy more debt of a people who spend their lives in zombie-like thrall to the Kardashian sisters? No, Ben's going to have to eat the sandwich himself, a least until the end of QE-2. Or watch interest go way way up to the point where the risks are acceptable to outside parties - but that would only destroy the US Economy and American government at all levels, since we can't meet our obligations even at ZIRP levels - and, anyway, who would step forward now to buy this crap under any circumstances? (Echo answers....)

Family-unfriendly language at original.

 

rhare's picture
rhare
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Posts: 1325
Sen. Rand Paul on Consumer Choice in Energy Committe Hearing

For a bit of humor and common sense:

spiffydave's picture
spiffydave
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Posts: 6
Best Explanation of Japanese Nuclear Power Plant Issues...

Read this today and it's excellent:

http://bravenewclimate.com/2011/03/13/fukushima-simple-explanation/

I am writing this text (Mar 12) to give you some peace of mind regarding some of the troubles in Japan, that is the safety of Japan’s nuclear reactors. Up front, the situation is serious, but under control. And this text is long! But you will know more about nuclear power plants after reading it than all journalists on this planet put together.

There was and will *not* be any significant release of radioactivity.

By “significant” I mean a level of radiation of more than what you would receive on – say – a long distance flight, or drinking a glass of beer that comes from certain areas with high levels of natural background radiation.

I have been reading every news release on the incident since the earthquake. There has not been one single (!) report that was accurate and free of errors (and part of that problem is also a weakness in the Japanese crisis communication). By “not free of errors” I do not refer to tendentious anti-nuclear journalism – that is quite normal these days. By “not free of errors” I mean blatant errors regarding physics and natural law, as well as gross misinterpretation of facts, due to an obvious lack of fundamental and basic understanding of the way nuclear reactors are build and operated. I have read a 3 page report on CNN where every single paragraph contained an error.

anton95's picture
anton95
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Posts: 22
Best Explanation of Japanese Nuclear Power Plant Issues...

I too found this article thoughtful, detailed and informative..........

However it was written on March 12 in Japan and here we are 2 and a half days later and the expected cooling down predicted by the article has clearly not happened.  Indeed, the situation appears to be deteriorating, which begs the question, why?

 

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5731
Re: Best Explanation of Japanese Nuclear Power Plant Issues...
spiffydave wrote:

Read this today and it's excellent:

http://bravenewclimate.com/2011/03/13/fukushima-simple-explanation/

I am writing this text (Mar 12) to give you some peace of mind regarding some of the troubles in Japan, that is the safety of Japan’s nuclear reactors. Up front, the situation is serious, but under control. And this text is long! But you will know more about nuclear power plants after reading it than all journalists on this planet put together.

There was and will *not* be any significant release of radioactivity.

By “significant” I mean a level of radiation of more than what you would receive on – say – a long distance flight, or drinking a glass of beer that comes from certain areas with high levels of natural background radiation.

I have been reading every news release on the incident since the earthquake. There has not been one single (!) report that was accurate and free of errors (and part of that problem is also a weakness in the Japanese crisis communication). By “not free of errors” I do not refer to tendentious anti-nuclear journalism – that is quite normal these days. By “not free of errors” I mean blatant errors regarding physics and natural law, as well as gross misinterpretation of facts, due to an obvious lack of fundamental and basic understanding of the way nuclear reactors are build and operated. I have read a 3 page report on CNN where every single paragraph contained an error.

Yes very comforting.

Also quite overly optimistic and eclipsed by events.   I would caution against accepting the views of anyone who feels the need to resort to calling out everyone else's errors in this story while using very little moderating language to describe their own limitations.

Nobody knows what's going on and design limits aremost likely being tested even as we speak.  The unthinkable, which this author proposes as the 'correct' answer to the question of whether a containment breach is possible, is not really all that unthinkable.

I would humbly propose that the author has some very strong beliefs, faiths if you will, in the technology about which they write and that these have, predictably, colored both their assessments and their sense of what's possible.

gegreene's picture
gegreene
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Posts: 9
Simple

We will buy their bonds with newly printed money, and they will buy our bonds with newly printed money.  The public will be fooled until the next administration they hope.  This is very sad.

derfman64's picture
derfman64
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Joined: Nov 4 2009
Posts: 13
Nuclear Nerds

I would love to see the so called "experts" take off their plaid jackets and bow ties and volunteer to lend their "expertise" at the actual nuclear facilities. Then come back and tell us everything is hunky dorey.

Maybe we can all pitch in for the plane fare......

I am sure they will come back with glowing reviews.

SagerXX's picture
SagerXX
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Posts: 2237
Nikkei down 6.4%

nm

yoshhash's picture
yoshhash
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Posts: 271
all 3 reactors in meltdown

http://www.dailymail.co.uk/news/article-1365781/Japan-earthquake-tsunami...

I do not have an educated stance on this, but it does seem to be breaking news- hope i'm not being alarmist, apologies if I am.

mono's picture
mono
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Joined: Nov 13 2008
Posts: 70
Germany takes 8 reactors of the grid.

As a reaction to the nuclear threat in Japan, germany is turning 8 of his 17 Nuclear Powerstations off.

All but one of them are older reactors, built pre 1980.

 

 

www.tagesschau.de

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
More Dependence On Oil...
mono wrote:

As a reaction to the nuclear threat in Japan, germany is turning 8 of his 17 Nuclear Powerstations off.

All but one of them are older reactors, built pre 1980.

www.tagesschau.de

Oh yeah? More dependence on oil, coal, and natural gas, then...

Poet

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