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

    by DailyDigest

    Monday, March 14, 2011, 2:49 PM

  • 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.”

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