Daily Digest

Daily Digest 5/8 - Americans Gone Wild, Silver Takes It On The Chin, Anti-Nuclear Protesters Rally In Japan

Sunday, May 8, 2011, 10:54 AM
  • Mauldin: Muddle Through, or Crisis?
  • Americans Gone Wild
  • Fears For Euro In Greece Prompt Secret Talks
  • Official Greek Response To Der Spiegel Article
  • Silver Takes it on the Chin
  • Gold Daily and Silver Weekly Charts
  • Japan's Nuclear Energy Debate: Some See Spur For A Renewable Revolution
  • Japan Anti-Nuclear Protesters Rally After PM Call To Close Plant

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

Economy

Mauldin: Muddle Through, or Crisis? (JRB)

This week I finish the two-part letter on the Endgame and give you my thoughts on the economy and how it all plays out over the next five years." ... "It is a rather bold forecast, and fraught with peril and likely errors, but that is my job here. Damn the torpedoes, etc. I must offer one large caveat! If the facts change so will my forecast, but this is the view into my very cloudy crystal ball as I see it today. As always, remember that those of us in the forecasting world are often wrong but seldom in doubt. Read accordingly.

Americans Gone Wild (June C.)

In Sioux City, Iowa a 41 year old man recently walked into the office where his boss worked and beat the living daylights out of him. The boss suffered four chipped teeth and needed surgery to repair his nose. Apparently the boss was planning to fire the man.

Fears For Euro In Greece Prompt Secret Talks (pinecarr)

Europe's inner circle meet to discuss possible debt restructuring for Greece as well as problems in Ireland and Portugal.

Official Greek Response To Der Spiegel Article (pinecarr)

Looks like this one time the Greeks may actually be telling the truth. But who cares: by Monday, when every nation in the eurozone will be right where it was on Friday, the EURUSD will be 200 pips lower. Mission accomplished. Although unlike in 2010, we are absolutely certain no investigation will ever be launched to discover who instigated this EUR hit piece which just end up benefitting both Greece, German and... the eurozone.

Silver Takes it on the Chin (pinecarr)

This week saw the type of downside volatility in the precious metals market that will be remembered for years to come. For those of us who have been long gold, and silver in particular, the memories will not be pleasant. While many had been expecting a pullback in silver, when the violence did come it was nevertheless shocking. Silver shed one third of its value in less than one week. And while gold was pulled down by the general sell off in all commodities (oil, copper, coffee, etc.) the yellow metal shed only 6.5% during the carnage. Those mild losses should remind us that gold is not just another commodity, but has monetary qualities that tend to smooth out volatility. But will silver survive the vicious downturn?

Gold Daily and Silver Weekly Charts (pinecarr)

"Our government...teaches the whole people by its example. If the government becomes the lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy." Supreme Court Justice Louis D. Brandeis

Energy

Japan's Nuclear Energy Debate: Some See Spur For A Renewable Revolution (guardia)

The crisis at the Fukushima Daiichi nuclear power plant has spawned antinuclear protests in Tokyo on a scale not seen for decades, raising hopes among activists that Japan's future is geared toward a revolution in renewable energy. Japanese media estimated that 15,000 people calling for immediate closure of all the country's nuclear plants marched through Tokyo's Koenji neighborhood on April 10, and more are expected for a similar demonstration this Saturday.

Japan Anti-Nuclear Protesters Rally After PM Call To Close Plant (guardia)

Several thousand Japanese anti-nuclear protesters marched in the rain on Saturday, welcoming a call from the prime minister to shut down a plant in central Japan and urging him to close more to avoid another nuclear crisis.

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."

9 Comments

idoctor's picture
idoctor
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http://prudentinvestornewslet

http://prudentinvestornewsletters.blogspot.com/2011/05/has-uns-intervention-in-libya-been.htmly

Friday, May 06, 2011

Has the UN’s intervention in Libya been about the Libyan Gold Dinar?, Mexico Central Bank Buys Gold

Remember when some people speculated that the Iraq war had been prompted by Saddam’s proposal to price her oil trades in Euro?

Well, here is another theory on why the UN has intervened in Libya’s civil war and wants Gaddafi ousted: the Libyan Gold Dinar.

Says the Daily Bell, (bold emphasis mine)

Some believe it [the NATO/US-led Libyan invasion] is about protecting civilians, others say it is about oil, but some are convinced intervention in Libya is all about Gaddafi's plan to introduce the gold dinar, a single African currency made from gold, a true sharing of the wealth.

Gaddafi did not give up. In the months leading up to the military intervention, he called on African and Muslim nations to join together to create this new currency that would rival the dollar and euro. They would sell oil and other resources around the world only for gold dinars.

It is an idea that would shift the economic balance of the world.

"If Gaddafi had an intent to try to re-price his oil or whatever else the country was selling on the global market and accept something else as a currency or maybe launch a gold dinar currency, any move such as that would certainly not be welcomed by the power elite today, who are responsible for controlling the world's central banks," says Anthony Wile, founder and Chief Editor of the Daily Bell.

"So yes, that would certainly be something that would cause his immediate dismissal and the need for other reasons to be brought forward from moving him from power."

Read the rest here.

I am not saying that I believe in this, but this info just adds up to the possible avenues on how things could be shaping up.

By the way, as the war against precious metal continues, the Mexican central bank has reportedly accumulated massive amounts of gold during the first quarter

From the Reuters,

Mexico massively ramped up its gold reserves in the first quarter of this year, buying over $4 billion of bullion as emerging economies move away from the ailing U.S. dollar, which has dipped to 2-1/2-year lows.

The third biggest one-off purchase of gold by any country over the past decade took Mexico's reserves to 100.15 tonnes -- or 3.22 million ounces -- by the end of March from just 6.84 tonnes at the end of January, according to the International Monetary Fund and Mexico's central bank.

This goes to show that either the Mexican Central Bank plays the role of the greater fool or that today’s manipulated decline will present itself as a buying opportunity. My bet is on the latter.

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maceves
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Americans gone wild

I don't think the kids rioting in restauants has anything to do with the economic situation of their parents,

One thing we have been seeing in middle school age kids is staged fights that someone videotapes and puts on You-Tube.  We have had a lot of trouble with this at our middle school, at a school that has never had a reputation for fights. There has been a little of it at the high school, but it is becoming a part of the middle school culture.  The kids think it is very cool.

I am not sure where it is coming from, but the words Facebook and You-Tube keep coming up.  My guess is that kids are spending their homework time on the internet just messing around.  There is gossip, sexting, and downright meanness, You Tube videos of mean teachers and very personal information.   If I had a middle schooler in my house, I don't think I would allow that child to have a Facebook account or I would monitor it very closely.  

Whatever it is, it is a very scary paradigm shift that has me very unnerved.

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Iraq Slashes Projected Crude Output By Half Over Next 5 Years

Per zerohedge, at http://www.zerohedge.com/article/iraq-slashes-projected-crude-output-half-over-next-5-years 

And another huge hit to future oil supply. After Goldman released a report on Friday, backtracking on its April recommendation that clients sell crude, instead warning that "critically tight supply-demand fundamentals" will likely cause oil prices to "return to or surpass the recent highs by next year", "should Libyan oil supplies remain off the market", which it now appears they will considering Gadaffi is winning the Libyan civil war against the West-backed rebellion, here comes a stunner out of Iraq which has just slashed its 2017 oil production estimate from 12 million barrels to just 6.5-7 million bbpd. Oddly enough, Iraq is being rational: "Baghdad believes it would not be in its interests to try to achieve the 12 million target by 2017 because boosting global supply would depress prices."

There is more at ZH.

[edit]

Here is the original article from the Australian, Iraqi oil production cutback plan adds to global supply fear", at:

 http://www.theaustralian.com.au/business/iraqi-oil-production-cutback-plan-adds-to-global-supply-fear/story-e6frg8zx-1226050749186 

The country's Oil Ministry, with backing from the Prime Minister Nouri al-Maliki, will set a new target to produce between 6.5 million and 7 million barrels per day by 2017, down from original plans to pump 12 million barrels, according to industry insiders.

Iraq, which is a member of the OPEC cartel that pumps 40 per cent of the world's oil, produces about 2.68 million barrels a day, barely higher than under Saddam Hussein.

It had been hoped that with a huge injection of foreign investment, it would be able to challenge Saudi Arabia as the world's biggest oil exporter this decade.

Confirmation it has scrapped the old target will add to fears that global supply will be unable to keep pace with demand in coming years.

It is understood that government negotiations to change the long-term service agreements signed by companies in the past two years based on the old production target will begin soon.

Analysts said companies would seek improved terms to compensate them for losing out on revenue, which at present is earned for each barrel of oil produced above a base target.

Baghdad believes it would not be in its interests to try to achieve the 12 million target by 2017 because boosting global supply would depress prices.

Ministers also argue that there is not sufficient demand for the extra oil, despite soaring prices. Last month, Saudi Arabia cut its output by 800,000 barrels a day after pumping more in response to the political crisis in North Africa, complaining that the extra crude was sitting in tankers with no customers.

High oil prices, which have doubled since the 12 million target was set two years ago, will compensate Iraq for the lower production. Ministers also recognise that creaky pipelines and storage facilities could not cope with such an increase.

The International Energy Agency estimates that investment of more than $US160 billion ($149bn) would be needed to meet the target.

Samuel Ciszuk, senior energy analyst for IHS Energy, said an over-ambitious target was politically motivated, being set before elections in 2009. "It was clearly designed to impress the Iraqis ahead of the elections. The oil majors will now seek more attractive terms."

THE TIMES

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Doug
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Stockman interview

This interview contains a lot of truth in 10 minutes. 

http://www.zerohedge.com/article/david-stockman-it-will-take-major-dislocation-bond-market-wake-america

Don't know how to imbed the vid.

Doug

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Chubu Electric Shares Sink

Chubu Electric Shares Sink After Call to Shut Nuclear Plant http://www.cnbc.com/id/42951760

Chubu Electric Power shares tumbled as much as 14 percent on Monday after Japan's prime minister called for a shutdown of its nuclear plant in central Japan due to worries a large earthquake could trigger another nuclear crisis. 

 

Shares of Chubu, Japan's third-largest utility, were down 12 percent at 1,555 yen as of 0053 GMT, after falling as low as 1,521 yen. Chubu's tumble helped push Tokyo's electric and gas subindex down 2.5 percent. 

"This news is triggering uncertainty not just about Chubu Electric but the whole utility sector," said Yoshinori Nagano, a senior strategist at Daiwa Asset Management. 

"Investors are concerned that on the back of this news other reactors currently under inspection may not resume operations soon." 

The move to shutdown Hamaoka, seen at high risk to forecasts of a powerful earthquake in coming decades, follows pressure on the government to review Japan's nuclear energy policy after a March 11 quake and tsunami crippled another plant, triggering the world's worst nuclear accident in 25 years. 

Kan, who has been under fire for his response to the crisis at Tokyo Electric Power Co's (TEPCO) Fukushima Daiichi plant in northeast Japan, said the government would try to prevent the halt of the Hamaoka reactors from causing power supply problems. 

 

Chubu Electric is seeking a meeting with Prime Minister Naoto Kan and will likely heed Kan's legally non-binding request to close the Hamaoka plant if it can confirm government support for issues that will arise from a shutdown, Japanese media said. 

Chubu may hold a board meeting as early as Monday to make a final decision. The board met Saturday to discuss the matter without reaching a decision.

Chubu says it can meet peak demand of 25,600 MW even if Hamaoka shuts. Relying on thermal plants to make up shortfalls if Hamaoka closes would push up costs by 700 million yen per day — or about 256 billion yen a year, double its projected profit of 130 billion yen in the year to March 2012. 

An unusually hot summer would raise the risk of Chubu not having enough capacity to meet peak demand, which could cause problems for Toyota Motor and other major manufacturers with factories in the region.

Chubu chairman Toshio Mita, who flew to Qatar to discuss possible procurement of liquefied natural gas, was expected to return to Japan on Monday, the Yomiuri newspaper said. 

A Chubu spokesman declined to confirm Mita's schedule, the board meeting and whether a meeting with Kan was being sought.

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Hamaoka/Libya

The Hamaoka reactor that may be closed is 180km to the southwest of Tokyo from where in the event of an accident the prevailing winds would surely waft radioactive plumes over Tokyo in a matter of hours.  (Fukushima Daiichi is 250km to the northeast of Tokyo where the winds for the past two months have thankfully, for Japan, at least, largely blown out over the Pacific.

Spike Japan spends Golden Week in Fukushima and sends another inimitable tragi-comic report: "Holiday in Fukushima: To the zone of exclusion"  https://spikejapan.wordpress.com/

Re Libya and the from idoctor link above, surely related is the fact that one of the "rebels" first policy actions was establishing a "central bank".  How can one not be cynical about the manufactured nature of this rebellion? We are witnessing the terminal phase of empire... http://www.cnbc.com/id/42308613  (CNBC link provided because CNBC, while worse than useless,is after all a MSM outlet  meaning we citizens of the empire have no excuse not be aware of this telling detail.)

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pinecarr's picture
pinecarr
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Doug wrote: This interview
Doug wrote:

This interview contains a lot of truth in 10 minutes. 

http://www.zerohedge.com/article/david-stockman-it-will-take-major-dislocation-bond-market-wake-america

Don't know how to imbed the vid.

Doug

Doug, thanks for the pointer to the David Stockman clip.  I took a minute or two to grab my interest, but then it was well worth the watch.  A lot of what he says aligns with what we've been hearing here, from Chris, and from other good sources.  It feels both vindicating and sobering, all at the same time!

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