Divining the News (DTN)

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Posts Tagged ‘Meltdown

The Global Ditch: Is Eastern Europe Primed to Explode?

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Orders in the manufacturing sector, Quarter 4 2008 (Japan, Eurozone, United Kingdom, China, India) - Sources : MarketOracle / JPMorgan. This Graph NOT from the article below

Orders in the manufacturing sector, Quarter 4 2008 (Japan, Eurozone, United Kingdom, China, India) - Sources : MarketOracle / JPMorgan. This Graph NOT from the article below

counterpunch1

By MIKE WHITNEY

Eastern Europe is about to blow. If it does, it could take much of the EU with it. It’s an emergency situation but there are no easy solutions. The IMF doesn’t have the resources for a bailout of this size and the recession is spreading faster than relief efforts can be organized. Finance ministers and central bankers are running in circles trying to put out one fire after another. Its only a matter of time before they are overtaken by events. If one country is allowed to default, the dominoes could begin to tumble through the whole region. This could trigger dramatic changes in the political landscape. The rise of fascism is no longer out of the question.

The UK Telegraph’s economics editor Edmund Conway sums it up like this:

“A ‘second wave’ of countries will fall victim to the economic crisis and face being bailed out by the International Monetary Fund, its chief warned at the G7 summit in Rome….But with some countries’ economies effectively dwarfed by the size of their banking sector and its financial liabilities, there are fears they could fall victim to balance of payments and currency crises, much as Iceland did before receiving emergency assistance from the IMF last year.” (UK Telegraph)

Foreign capital is fleeing at an alarming rate; nearly two-thirds gone in matter of months. Deflation is pushing down asset prices, increasing unemployment, and compounding the debt-burden of financial institutions. It’s the same everywhere. The economies are being hollowed out and stripped of capital. Ukraine is teetering on the brink of bankruptcy. Poland, Latvia, Lithuania, Hungary have all slipped into a low-grade depression. The countries that followed Washington’s economic regimen have suffered the most. They bet that debt-fueled growth and exports would lead to prosperity. That dream has been shattered. They haven’t developed their consumer markets, so demand is weak. Capital is scarce and businesses are being forced to deleverage to avoid default. All of Eastern Europe has gotten a margin call. They need extra funds to cover the falling value of their equity. They need a lifeline from the IMF or their economies will continue to crumble.

The UK Telegraph’s economics correspondent Ambrose Evans-Pritchard has written a series of articles about Eastern Europe. In “Failure to save East Europe will lead to Worldwide meltdown” he says:

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Written by morris

February 18, 2009 at 4:40 pm

Catastrophic Fall in 2009 Global Food Production

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drought

Global Research, February 10, 2009

The countries that make up two thirds of the world’s agricultural output are experiencing drought conditions. Whether you watch a video of the drought in China, Australia, Africa, South America, or the US , the scene will be the same: misery, ruined crop, and dying cattle. –more–

Also see:

Graph of wheat prices, Guardian

Food is going to be scarcer, and Russia has only shown us how weak we are: Guardian and Times (UK)

BBC: Prime Minister tells British; Stop wasting food


Written by morris

February 11, 2009 at 6:02 pm

Posted in Environment, food, Meltdown

Tagged with , ,

World Agenda: riots in Iceland, Latvia and Bulgaria are a sign of things to come

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Times Online Logo 222 x 25

From January 21, 2009

Our third global political column explores the start of an age of rebellion over the financial crisis – beginning in Iceland

Protesters rally during a weekly demonstration against the country's financial situation in Reykjavik

(Halldor Kolbeins/AFP/Getty Images)

Icelanders vented their fury at the political class’s handling of the financial crisis by staging angry protests in Reykjavik

Icelanders all but stormed their Parliament last night. It was the first session of the chamber after what might appear to be an unusually long Christmas break.

–more–

TipoftheHat whatreallyhappened

Written by morris

January 25, 2009 at 11:08 pm

Posted in fiat money, Meltdown

Tagged with

Enjoying the crisis? It was all engineered

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I do solemnly  believe the financial crisis has been engineered. It stops the transfer of wealth to the oil producers. It surely will not go according to plan, very little in life does, but that is particularly true for the last eight years. Fortunately I have no inside info, so i can live longer.
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If the crisis was not engineered then it is such an indictement on the incompetence of our elite and the system we live under as to suggest our elite’s fall from power and grace.

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Oil is now 35$ a barrel, mission acomplished. Would our barrons inflict hardship on everyone in order to undermine Iran, Russia and Venezuela etc? Most definitely yes. Has there been a word about the cost of the wars? Not a whisper.

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In a timely essay on:

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Is the New World Order “Jewish”?

February 12, 2005

Central banks also control the supply of credit to businesses and individuals. Robert Hemphill, Credit Manager of the Federal Reserve Bank in Atlanta describes this untenable situation.

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“This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is… It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon.”

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When the Federal Reserve was inaugurated in 1913, a London banker acknowledged that it is a scam.

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“The few who understand the system will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class… The great body of the people, mentally incapable of comprehending, will bear its burden without complaint, and perhaps without even suspecting that the system is inimical (contrary) to their interests.”  Source

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I mean, If they had the gall to say Iraq had weapons of Mass destruction. Osama Bin laden did 9/11 even though he has never been charged and his family was in business with the Bush’s, why not have the gall to soak everyone?

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moneycount

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Bailout of 700 Billion is peanuts compared to what is going on:

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Written by morris

December 27, 2008 at 12:07 am

Dollar goes down – Gold goes up – Chart

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Dollar’s Slump Erases Months Of Solid Gains

Washington Post
Thursday, December 18, 2008; Page A01

The dollar yesterday staged one of its biggest one-day drops against the euro and fell to a 13-year low against the Japanese yen as near-zero interest rates and the Federal Reserve‘s plan to print vast sums of cash dilute the value of the greenback

Live Gold Phase chart

This chart works only on weekdays

The Fed Says Buy Gold

December 17, 2008

by David Nichols

On Tuesday we received direct confirmation from the Fed that the U.S. dollar will continue to be sacrificed to resuscitate ailing credit and asset markets. “Helicopter Ben” is finally living up to his advance billing, as dollars are set to rain down on the economy.  Source

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Written by morris

December 18, 2008 at 11:59 am

Money will cease to function as a meaningful commodity Sunday Times

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I was in Dublin last weekend, and had a very real sense I’d been invited to the last days of the Roman empire. As far as I could work out, everyone had a Rolls-Royce Phantom and a coat made from something that’s now extinct. And then there were the women. Wow. Not that long ago every girl on the Emerald Isle had a face the colour of straw and orange hair. Now it’s the other way around.

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Everyone appeared to be drunk on naked hedonism. I’ve never seen so much jus being drizzled onto so many improbable things, none of which was potted herring. It was like Barcelona but with beer. And as I careered from bar to bar all I could think was: “Jesus. Can’t they see what’s coming?”
Ireland is tiny. Its population is smaller than New Zealand’s, so how could the Irish ever have generated the cash for so many trips to the hairdressers, so many lobsters and so many Rollers? And how, now, as they become the first country in Europe to go officially into recession, can they not see the financial meteorite coming? Why are they not all at home, singing mournful songs?

 

It’s the same story on this side of the Irish Sea, of course. We’re all still plunging hither and thither, guzzling wine and wondering what preposterously expensive electronic toys the children will want to smash on Christmas morning this year. We can’t see the meteorite coming either.

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Written by morris

December 15, 2008 at 10:29 am

Video: Milton Friedman explains role of gold in Great Depression and general overview

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Milton Friedman explains what happened during the great depression and what the role of the federal reserve is during economic ups and downs. This is from a 10 hour documentary series which can be viewed online at: http://www.ideachannel.tv/

Written by morris

December 14, 2008 at 7:47 pm

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