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pyewackitt

One shock away from Crisis

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Interesting article here from the BBC.

 

http://www.bbc.co.uk/news/business-13108166

http://www.bloomberg.com/news/2011-04-16/zoellick-says-world-economy-one-shock-away-from-food-crisis-1-.html

 

President of the world bank cites that inflation and the job-less recovery have created a environment of potential crisis.

 

Speaking of the rise in pricing and shortages in available supplies:

 

“You have one other weather event in some of these areas and you really take a danger zone and start to push people over the edge.”

 

“The question now is whether it’s strong enough to reduce unemployment, particularly in developed countries. Inflation is up in developing countries, and this could lead to overheating or asset price bubbles.”

 

My take on this is that he is spot on, but the power that be in the various nations will be unable to do anything for as long as the developing nations continue to devalue their currencies through aggressive money printing.

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As they lick the ice cream cone, and enjoy the "sugar high",

they may soon discover that something "less tasty" is hidden underneath

== == ==

 

“For most commodities, stocks are relatively low,” he said. “You have one other weather event in some of these areas and you really take a danger zone and start to push people over the edge.”

 

Zoellick said he opposes export bans that nations use to depress local commodity prices for their citizens, lifting costs for consumers in other countries.

 

Farmers in Russia, once the second-biggest wheat exporter, are planting the fewest acres in four years, in part because a government export ban kept prices low, a Bloomberg survey of producers, traders and analysts showed last month. India, the largest grower after China, is mulling lifting an export ban in place since 2007 as harvests may reach a record for a fourth straight year, Agriculture Minister Sharad Pawar said this month.

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As they lick the ice cream cone, and enjoy the "sugar high",

they may soon discover that something "less tasty" is hidden underneath

Unless, of course, it's a cornetto! I love the last chocolaty bit at the end of the cone :rolleyes:

 

I heard some of this on R4 today, linked with the pirates off Somalia. Scary stuff. A huge ocean and a few naval ships to patrol a seriously important oil route. Bottom line was, with all the other potential problems that could tip us over the edge, the PTB are taking their eye off the ball here, as the pirates are getting better organised and better equipped every day.

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Unless, of course, it's a cornetto! I love the last chocolaty bit at the end of the cone :rolleyes:

 

I heard some of this on R4 today, linked with the pirates off Somalia. Scary stuff. A huge ocean and a few naval ships to patrol a seriously important oil route. Bottom line was, with all the other potential problems that could tip us over the edge, the PTB are taking their eye off the ball here, as the pirates are getting better organised and better equipped every day.

 

Apparently you can invest in these pirates. The ROI is over 2000%. I have heard about a British ship capturing a few pirates who were given a health check, a cup of tea, photographed and put into a dingy and sent back to the coast. What a disgrace!!!!

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Haven't we been one shock away for the last few years? I'm not saying we aren't about to enter crisis it's

just that given the perilous state of the global economy I don't understand how the duct tape is still holding

up.

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Chris Martensen is on the same wavelength

 

The Breakdown Draws Near

 

Things are certainly speeding up, and it is my conclusion that we are not more than a year away from the next major financial and economic disruption.

 

Alas, predictions are tricky, especially about the future (credit: Yogi Berra), but here's why I am convinced that the next big break is drawing near.

 

In order for the financial system to operate, it needs continual debt expansion and servicing. Both are important. If either is missing, then catastrophe can strike at any time. And by 'catastrophe' I mean big institutions and countries transiting from a state of insolvency into outright bankruptcy.

 

/more: http://www.chrismartenson.com/blog/breakdown-draws-near/56594

 

SYMPTOMS of a worsening global PROBLEM:

 

+ Banks face $3.6 trillion "wall" of maturing debt: IMF

 

+ Greek T-Bill Sale Fails to Allay Fear

(The 4.1% yield paid by Greece, which means it now pays more for 13-week money than the 3.8% Germany currently pays on its 30-year bond... Greek two-year bonds now yield more than 19.3%, up from 15.44% at the end of March.)

 

+ March Home Transactions in 30 Major Cities Fall 40.5% Y-o-Y

 

Conclusion

There are two entirely, completely, utterly different narratives at play here. One of them is that the economy is recovering, policies are working, and the vaunted consumer is either back in the game or close to it. The other is that the world is saturated with debt, there's no realistic or practical model of growth that could promise its repayment, and the level of austerity required to balance the books is so far beyond the political will of the Western powers that it borders on fantasy to ponder that outcome.

 

If we believe the first story, we play the game and continue to store all of our wealth in fiat money. If we believe the second, we take our money out of the system and place it into 'hard' assets like gold and silver because the most likely event is a massive financial-currency-debt crisis.

 

The IMF, the World Bank, the BIS, and numerous other institutions with access to $2 calculators have finally arrived at the conclusion that there's still 'too much debt' and that it cannot all be paid back. And they are now alert to the idea that the predicament only has two outcomes: either the living standards of over-indebted countries will be allowed to fall, or the global fiat regime will suffer a catastrophic failure.

 

China is unlikely to ride to the rescue of the West, although it may have some time yet to help out a few of the smaller and mid-sized players, such as Spain.

/How it will play out: http://www.chrismartenson.com/martensonreport/how-will-play-out

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New Concerns... about security ?

 

Fortifying Yourself And Your Home Against Crime

Wednesday, April 6, 2011

 

burglary-home.jpeg

 

In my first post on crime, I urged you to accept the reality of the criminal threat and to mentally choose not to allow yourself to be easily victimized. Hopefully you’re reading this second post because you’ve sworn off the denial, distraction, and passivity that characterizes most people and decided to do whatever you reasonably can to protect yourself, your family, and your home. If this mindset of yours is authentic and deeply felt, you’re more than halfway to your goal.

Your next step is to form a self-protection plan...

 

http://www.chrismartenson.com/blog/fortifying-yourself-and-your-home-against-crime/56117

 

Hmm.

He Seems to assume the average person lives in a suburban McMansion

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