Daily Digest

Daily Digest 3/17 - Japan Catastrophe Sends Shock Waves, Riding The Silver And Gold Wave, The World Energy Crunch

Thursday, March 17, 2011, 11:47 AM
  • Understanding The Deteriorating Situation In Fukushima
  • Japan Catastrophe Sends Shock Waves
  • How A Tokyo Earthquake Could Devastate Wall Street And The World Economy
  • U.S. Government: Ever More Reliant on Foreign Investors
  • Twin Threats Of Japan and Gulf Stalk Global Recovery
  • Riding the Gold and Silver Wave
  • Real Estate Roulette - Moscow, Russia
  • Japan's Quake And Nuclear Emergency Coverage
  • G-7 to Hold Urgent Talks on Japan Quake, Global Markets
  • Let The Bombing Commence: UN Set To Impose "No Fly Zone" Over Libya
  • World Energy Crunch As Nuclear And Oil Both Go Wrong
  • Wholesale Prices Up 1.6% On Steep Rise In Food

Crash Course DVDThe 3-disc Special Edition DVD, now $24.99 in our store (NTSC or PAL)

Economy

Understanding The Deteriorating Situation In Fukushima (pinecarr)

Below is a great video explaining what is going on and what the risks are…

Japan Catastrophe Sends Shock Waves (pinecarr)

As the situation at the Fukushima nuclear plant continues to deteriorate, increasing panic has gripped Japan and the world. By early Thursday, last-ditch attempts to prevent a full-blown disaster appeared desperate, and fears about the status of spent fuel at the plant added to speculation that the authorities were withholding vital information about the scope of the catastrophe.

How A Tokyo Earthquake Could Devastate Wall Street And The World Economy (jdargis)

The title of an article written by Michael Lewis in 1989.

"When the Japanese emerge from the rubble, the world will change forever: they'll want their money back!"

U.S. Government: Ever More Reliant on Foreign Investors (Joe P.)

Despite the Fed recently surpassing China as the largest owner of U.S. government debt, the U.S. remains heavily reliant on foreigners to fund the government’s ongoing fiscal largess. Geithner’s Treasury Department has firmly focused new issues at the mid to longer end of the yield curve (since Geithner assumed office, the average length of marketable Treasury debt held publicly has increased by nearly one year).



Despite the Treasury taking advantage of the ultra-low interest rate and funding environment, there are substantial refinancing issues over the near term; moreover, many of these maturing issues are foreign owned. Should sovereign fiscal concerns spread to the U.S., in concert with the evermore attractive interest rates offered internationally, refinancing the U.S. debt could become increasingly difficult if foreign investors turn their backs.

Twin Threats Of Japan and Gulf Stalk Global Recovery (jdargis)

"People had thought global recovery was self-sustaining and now equity markets are starting to ask whether it might be snuffed out," said David Bloom, currency chief at HSBC.
The twin crises come as fiscal tightening in the West and credit tightening in China start to bite. US economists such as Larry Summers and Paul Krugman fear recovery has not yet reached "escape velocity", leaving it vulnerable to external shocks.

    Crash Course DVDThe 3-disc Special Edition DVD, now $24.99 in our store (NTSC or PAL)

Riding the Gold and Silver Wave (adam)

Michael Maloney still believes gold is undervalued, even today, but as he points out, that will change some day—and that change is the crux of The Wealth Cycle Principle.

Real Estate Roulette - Moscow, Russia (adam)

At the site Mike points out some 9 skyscrapers which lay barren, including the proposed tallest building in Europe, The Federation Tower.

Japan's Quake And Nuclear Emergency Coverage (K&E)

Breaking news and analysis from IEEE Spectrum editors and correspondents.

G-7 to Hold Urgent Talks on Japan Quake, Global Markets (pinecarr)

Group of Seven nations finance chiefs will hold talks on financial markets and Japan’s economy tomorrow, after the March 11 earthquake triggered a drop in global stocks and drove the nation’s currency to a post World War II high.

Let The Bombing Commence: UN Set To Impose "No Fly Zone" Over Libya (pinecarr)

The endgame in Libya begins. The UN has agreed on a draft resolution to implement a no fly zone over Libya, which means the bombing may commence as soon as the vote passes later today. As to what Gaddafi's retaliation will be, and whether he will burn down the oil wells, which previously were in rebel hands, but have since fallen back into his control, we will surely find out in the next 24 hours.

Energy

World Energy Crunch As Nuclear And Oil Both Go Wrong (pinecarr)

The existential crisis for the world's nuclear industry could hardly have come at a worse moment. The epicentre of the world's oil supply is disturbingly close to its own systemic crisis as the Gulf erupts in conflict.

Environment

Wholesale Prices Up 1.6% On Steep Rise In Food (Dana T.)

The Labor Department said Wednesday that the Producer Price Index rose a seasonally adjusted 1.6 percent in February -- double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January's 0.5 percent rise.

Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.

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

back40's picture
back40
Status: Member (Offline)
Joined: Jan 27 2009
Posts: 14
U.S. backing for world

U.S. backing for world currency stuns markets

Am i missing something, or is this headline not from March of 2009?  I saw a link to the same report today on another popular news consolidator....same article, same time stamp.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
jeaninedargis's picture
jeaninedargis
Status: Bronze Member (Offline)
Joined: Jul 13 2009
Posts: 29
Strange! I'll update it with

Strange! I'll update it with Ambrose Evans-Pritchard's latest article.

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
You are NOT the one missing something
back40 wrote:

U.S. backing for world currency stuns markets

Am i missing something, or is this headline not from March of 2009?  I saw a link to the same report today on another popular news consolidator....same article, same time stamp.

Back40

You are NOT the one missing something.  The date stamps for the article and the comments clearly show 2009 and a date in March later than today. This same article was mistakenly posted as current in the threads a while back.  Things are shaky enough already without adding to peoples' fears with out of date news.  Accuracy is particularly important now so let's be careful.

Travlin 

 

 

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
How A Tokyo Earthquake Could

How A Tokyo Earthquake Could Devastate Wall Street And The World Economy

The title of an article written by Michael Lewis in 1989.

"When the Japanese emerge from the rubble, the world will change forever: they'll want their money back!"

Maybe that's when debts are cancelled.......

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Peter Schiff - Housing

Peter Schiff - Housing Market Will Fall For Many More Years

Peter Schiff - What Happens After the Collapse

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
U.N.-backed military strikes in Libya within hours

"SAN FRANCISCO (MarketWatch) -- The United Nations Security Council voted 10 to 0 supporting the use of "all necessary measures" including the use of a no-fly zone to protect civilians and rebel forces in Libya from forces loyal to Col. Moammar Gadhafi. Russia and China, which held veto powers, abstained from the vote, along with three other council members. The passing of the measure is expected to lead to U.N.-backed military strikes in Libya within hours, according to media reports."

 

UN vote clears way for Libya air strikes

UN Authorizes Military Strikes on Libya

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
U.N.-backed military strikes in Libya

I'm wondering if our leaders have thought about a good exit strategy this time before going to war again... Frown

saxplayer00o1 wrote:

"SAN FRANCISCO (MarketWatch) -- The United Nations Security Council voted 10 to 0 supporting the use of "all necessary measures" including the use of a no-fly zone to protect civilians and rebel forces in Libya from forces loyal to Col. Moammar Gadhafi. Russia and China, which held veto powers, abstained from the vote, along with three other council members. The passing of the measure is expected to lead to U.N.-backed military strikes in Libya within hours, according to media reports."

 

UN vote clears way for Libya air strikes

UN Authorizes Military Strikes on Libya

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
G-7 to intervene in forex markets to aid Japan

 

“In response to recent movements in the exchange rate of the yen associated with the tragic events in Japan, and at the request of the Japanese authorities, the authorities of the United States, the United Kingdom, Canada, and the European Central Bank will join with Japan, on March 18, in concerted intervention in exchange markets,” the statement said."

 

Central Banks Intervene to Weaken Yen After Post-Quake Surge

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Bank of Japan Spotted Buying

Bank of Japan Spotted Buying Dollar Versus Yen - Traders (Click to Read Story)

 

The Group of Seven industrial nations agreed on Friday to  jointly intervene in the currency market to stem a sharp yen rise that complicates Japan's battle with the devastation caused by last week's violent earthquake and an unfolding nuclear crisis.

Yen
Comstock Images | Getty Images

"Given yen moves after the tragic events that hit Japan, the United States, Britain, Canada and the European Central Bank have agreed with Japan to jointly intervene in the currency market," Finance Minister Yoshihiko Noda told reporters.

Japanese authorities will buy dollar/yen in the market from 9 a.m. Tokyo time (midnight GMT). Other central banks will act when their markets open, Noda said. He declined to comment on the size of Tokyo's intervention.

"When Japan is in such a state, it's extremely meaningful for G7 countries to cooperate and take coordinated action to stabilise financial markets," he said.

The dollar spiked about 2 yen

[JPY=  81.18    2.18  (+2.76%)   ]

to above 81 yen on Friday, after the news, moving away from a record low against the Japanese currency hit earlier this week.

Tokyo last intervened in the currency market on its own on Sept. 15, 2010, when it sold 2.13 trillion yen, a record amount for a single day.The dollar spiked about 2 yen to above 81 yen on Friday, after the G7 agreed on joint intervention in the wake of the yen's surge to a record high the previous day.

trwiley's picture
trwiley
Status: Bronze Member (Offline)
Joined: Aug 11 2009
Posts: 78
There are NOT only two choices
idoctor wrote:

Peter Schiff - What Happens After the Collapse

 

Jeez...same old free market capitalism ideology that's going to save us.

A quote from Peter Schiff:

"I don't know what's going to happen after the collapse (which he blames on government). I know we have two choices..."

And he goes on to describe the two choices. If we choose a totally free market capitalism, as enshrined in our constituion by the founding fathers, then the future will be very bright. If we choose a collectivist, centrally planned model where government takes over everything, than it's going to be horrific.

Watch this documentary on Russia Today and tell me that unrestricted capitalism is going to create a bright future: Dying in Abundance: Part 1 and Part 2.

(By the way, I find it ironic that some of our most truthful journalism today is coming from Russia Today and Al Jazeera).

If the definition of insanity is doing the same thing over and over again while expecting different results, than rebuilding capitalism after the collapse is truly crazy.

There are NOT just two choices, between free markets and socialistic governments, which are both still based on a failed capitalistic monetary system. It is NOT crazy, and in fact becomes more sane everyday, that we consider the possibility of moving to a post-capitalistic world not based on money...to a resource based economy.

 

 

tx_floods's picture
tx_floods
Status: Silver Member (Offline)
Joined: Mar 1 2009
Posts: 155
U.N.-backed military strikes in Libya
SailAway wrote:

I'm wondering if our leaders have thought about a good exit strategy this time before going to war again... Frown

 

uhhhh.....no. That's not what they do.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
Japan raises accident rating at Fukushima plant

 

"LONDON (MarketWatch) -- Japan's nuclear safety agency has increased the alert level at its damaged Fukushima Daiichi nuclear plant from four to five, grading the disaster at the same level as the Three Mile Island accident in the U.S. in 1979, the BBC reported. The alert level of five on a seven-point international scale of nuclear accidents put the Japanese situation two levels below the Chernobyl catastrophe that took place in Ukraine in 1986, according to the report. "

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