Rice Farmer

News Links, January 27, 2012

2012-01-26T17:21:00.000-08:00

## Global economic meltdown ##

Cameron Rebukes Euro Leaders at Davos, Calls Financial Transaction Tax "Quite Simply Madness" ; Mathematical Impossibilities
Soros: EU Needs Euro Bonds

Gloom gathers over Davos as Merkel digs in her heels on debt

Freighter Oversupply Weighs on Shipowners and Banks
"The skyscrapers and immaculate beaches of this seaport look out on one of the world's largest parking lots: mile after mile of empty cargo ships, as far as the eye can see.

"Similar fleets bob at anchor, with empty cargo holds, off the coasts of southeast Malaysia and Hong Kong. And dozens of newly built ships float empty near the giant shipyards of South Korea and China, their owners from all over the world reluctant to accept delivery during one of the worst markets ever for the global shipping industry."

Chart of the Day: Central Bank Balance Sheet as Percent of GDP: Fed, ECB, BOJ, BOE (Mish)

"The race is on to see which central bank can load up its balance sheet with the most garbage the fastest."

Chart of the Day: The Baltic Dry Index

No Slower Steaming as Container Lines Run Like Clippers: Freight

"Container ships can't go any slower.

"Shipping lines are running out of options to stop losses as sailing speeds reach their lower limit, exhausting a solution that helped restore profitability in 2010.
"The global container fleet is now cruising near record-low speeds after slowing 11 percent from August when the freight rate market collapsed, according to data compiled by Bloomberg and Lloyd's Register. Drewry Shipping Consultants Ltd. estimates some of the smallest shipping lines will run out of cash in the second half of this year as the industry fails to adjust to overcapacity that's allowing customers to push down rates."

Asian freight demand slides in 2011
"Demand for airfreight services in the Asia-Pacific took a nosedive in 2011, plunging 4.8 percent, year-over-year. Load factor in this region also declined considerably last year, falling to 66.6 percent — a 3.4-percent, year-over-year, drop — despite no capacity changes from 2010."

Ghost estates: Unwanted homes in Irish Republic could be demolished (BBC video)

Holy bubble! This looks just like China. Must-see video. -- RF

When the global housing bubbles collapse like a row of dominoes – Canadian housing bubble at apex. Real estate markets from Australia, UK, Italy, and Ireland now into correction phases. (Dr. Housing Bubble)

Austerity 'Does Not Deliver': HSBC Chief Economist

Stephen Harper says 'major' changes coming to Canada's pension system: speech
US unveils strategy for a global supply chain crisis

"The US has unveiled a strategy at the Davos World Economic Forum to protect the global supply chain in the event of a terror attack or natural disaster."

## Fault lines/flashpoints/powder kegs/military/war drums ##
Pre-emptive embargo: Iran could turn off oil tap to EU

India pledges to continue buying oil from Iran

"India could be on a collision course with the United States and European Union after officials in Delhi made clear they intended to carry on importing oil from Iran, despite the imposition of Western sanctions against Tehran."

Iran-China trade soars to top $45 bn: report

Iran won't move toward nuclear weapon in 2012: ISIS report
"Iran is unlikely to move toward building a nuclear weapon this year because it does not yet have the capability to produce enough weapon-grade uranium, a draft report by the Institute for Science and International Security said on Wednesday."

How Iran could beat up on America's superior military

"The US may outspend the Islamic Republic nearly 90-to-1 on defense. But Iran, heir to ancient Persia's naval innovation, has a well-honed asymmetric strategy designed to reverse that advantage.

"A 2002 US military exercise simulating such a conflict proved devastating to American warships."

Philippines may allow greater U.S. military presence in reaction to China's rise

Egypt Bans LaHood, Other Americans From Leaving

No military action against Syria‎, says David Cameron

Rebels claim control of Papua New Guinea military, demand new government

Reuters Magazine: The drone war

Thousands of NATO trucks in Pakistan backlog
"Two months into Pakistan's blockade on NATO supplies crossing into Afghanistan, thousands of trucks are crowding the port in Karachi where drivers, fed up with waiting, are starting to desert."

Cynthia McKinney: U.S. war machine pervades Africa

East Africa Is the New Epicenter of America's Shadow War

"It's not quite the new Pakistan, or even the new Yemen, but it's close — especially as new bases for the U.S.'s Shadow Wars pop up and expand. The U.S. military sometimes seemed like it was casting about for a reason to set up shop in Africa. Counterterrorism has given it one."

The real reason, of course, is Africa's resources and markets. -- RF

Saudi prince warns of Middle East nuclear arms race

## Global unrest/mob rule/angry people/torches and pitchforks ##
Egyptian protesters plan sit-in until army leaves

"Egyptian youths camped out on Thursday in Cairo's Tahrir Square and vowed to stay put until the army hands power to civilians, a day after a mass demonstration marked a year since an uprising which brought down Hosni Mubarak."

Fuel shortage results in business closures, clashes, road blockages (Egypt)

Police 'rescue' Australian PM from Aboriginal rights protesters

At least four arrested as Occupy Portland demonstration takes to streets

Bahraini police clash with protesters
"Bahraini police and anti-government protesters clashed in Shiite villages, leaving dozens of officers and several demonstrators injured, officials and the opposition said Wednesday."

Thousands march in Poland over Acta internet treaty

Tibetan areas under lockdown as unrest spreads

Protesters urged to occupy Chicago during G8 and Nato summits

"Adbusters, the group which helped spark the Occupy movement, has put out a call for tens of thousands of protesters to occupy Chicago during the G8 and Nato summits in May."

Riots in US Streets? Why Soros' Prediction Is Unlikely

On this I have to agree with Soros. There will be mobs and riots in the US. -- RF

Italy On the Verge of a Full Revolt

## Energy/resources ##
Textile sector faces unprecedented gas, power shortage (Pakistan)

Enter the Dragon - China to Increase Energy Investment in Pakistan

Two Sudans' oil dispute deepens as South shuts down wells
Supply concerns tighten oil markets

China overtakes Japan as world's top coal importer

Uranium supply crunch by 2016 - Nuclear expert

Fuel card news: south-east hauliers 'could face fuel shortage' (UK)

## Got food? ##
Toronto committee votes to uphold backyard chicken ban

## Environment/health ##
Gardening Map Of Warming U.S. Has Plant Zones Moving North

## Intelligence/security/internet/systemic breakdown ##
Anonymous Goes After World Governments in Wake of Anti-SOPA Protests

ACTA has same dangers as PIPA and SOPA

Railroad Association Says Hack Memo Was Inaccurate
FBI plans social network map alert mash-up application
"The FBI is seeking to develop an early-warning system based on material 'scraped' from social networks."

Newt Threatens China and Russia With Cyberwar

'Anonymous Palestine' Attacks Israeli Websites

## Japan ##
NEC to Cut 10,000 Jobs on Forecast of Third Loss in 4 Years

No takers for reconstruction work / Low labor budgets leave more than 400 tenders on the table in Tohoku region
"No contracts have been awarded in about 400 construction projects up for bid in the Tohoku region, as construction companies are shunning small-scale jobs amid a shortage of manpower in areas hard-hit by the Great East Japan Earthquake, it has been learned."

Suspect cattle still untested / Location of nearly 3,000 cows in radiation scare remains unknown
"The Health, Labor and Welfare Ministry has been unable to track the distribution routes of nearly 3,000 cows whose meat is suspected to contain high levels of radioactive cesium, ministry officials said."

New security teams to tackle cyber-attacks
"To enhance protection against cyber-attacks, ministries and agencies will be required to set up teams to handle computer security incidents and a new post of chief information security officer will be created, a government council on information security has announced."

Government debt closing in on quadrillion mark

And that's just government debt. Total debt comes to over 500% of GDP. -- RF
Japan losing hope for its pricey "dream reactor"

Nuclear reactors staying idle
"Of Japan's 54 nuclear reactors, four are in operation, generating 8 percent of nuclear-power capacity."

## China ##
Pollution sparks panic water buying in China

China to expand patrols to cover Senkaku isles, gas field
"The Shanghai Maritime Safety Administration plans to expand its aerial patrols to cover areas of dispute between Japan and China, including the Senkaku Islands and the Shirakaba natural gas field, according to reports by a subsidiary of the Xinhua News Agency."

## UK ##
Middle-income Britain is in state of emergency, says Nick Clegg

"Nick Clegg will warn on Thursday that the pressure on family finances has reached 'boiling point' and mark a new phase in coalition politics by setting out in public his party's budget demands, including a call for the chancellor, George Osborne, to speed up help for the working poor."

Police numbers at lowest for a decade
"Number of police officers in England and Wales falls by 6,000 in a year as chief constable warns of 'cliff edge'"
Ministry of Defence to cut further 3,000 civilian jobs

Newspaper review: Economy cause for doom and gloom

## US ##

Short Sellers Increase Bets Across the Board
"For the first time in a long time, short sellers have increased their bets that the stock prices of most large companies and in most large sectors will fall."
New-home sales hit a record low
North Dakota Oil Boom Brings Blight With Growth as Costs Soar
Michigan Attorney General Calls For 1,000 More Police Officers

Pentagon cuts reshape military, trim costs

Panetta: Military cuts to hit 'all 50 states'

The cuts will no doubt seriously impact local economies heavily dependent on the military. -- RF

Pentagon taps students to build robots, drones

Here's what the Fed's 'new transparency' looks like

And finally... Gingrich promises US moon colony by 2020

Talk about promising people the moon! Hasn't Gingrich noticed that the US is edging closer to Third-World status day by day? By 2020 there will likely be no space program at all. -- RF

News Links, January 26, 2012

2012-01-25T17:22:00.000-08:00

## Global economic meltdown ##
Angela Merkel casts doubt on saving Greece from financial meltdown

Angela Merkel rejects calls for increase in eurozone rescue fund

Hedge Funds Scramble to Unload Greek Debt

Roubini: Europe Needs 'Massive Monetary Easing'

Max Keiser interviewed for BBC: The sham and shame of Davos (video)

Asia to power world economy in 2012
"The Asian Development Bank chief says the global economic slowdown will affect Asia this year but the region will remain the economic powerhouse of the world, led by China, India and Indonesia."

South Korea Economy Grows at Slowest Pace in Five Quarters on Global Slump

Is the Carbon Bubble About to Pop?
"Internet, housing, banking, we have come across quite a few bubbles in the past decade, but now we are faced with the unfolding of possibly the biggest bubble of them all. The carbon bubble, created and sustained by the systematic over-valuation of carbon intensive firms and their assets."

More Reasons Why We are Reaching Limits to Growth
Jamaica launches emergency jobs initiative

## Fault lines/flashpoints/powder kegs/military/war drums ##

Even without Hormuz blockade, Iran has options
"Under pressure over its nuclear ambitions, Iran might never act on its threat to close the Strait of Hormuz but could retain enough tricks in its playbook to keep its enemies, shippers and global markets on edge."
EU Oil Embargo: Sanctions Benefit Iran's Revolutionary Guards (Spiegel)

Even if the gold-for-oil deal doesn't work out, overall the sanctions still seem to be backfiring. -- RF

IMF warns over risk of Iran oil price shock
"The IMF warned that if the West imposed financial sanctions on Iran, it would be tantamount to an oil blockade, and the shock to the market could be as bad as from Libya's revolution last year."

Blast destroys police station in north Nigeria

Is Nigeria to become Africa's next failed nation-state?

Torture and lawlessness as Libya "victory high" ends

Libyan government concedes to restive town's demands

GCC Nations to Withdraw Monitors, Push for UN Intervention Against Syria

Zetas are Mexico's 'largest drug gang', study says

## Global unrest/mob rule/angry people/torches and pitchforks ##
Two more Tibetans killed by Chinese forces after protests: group

Olympics organisers urged to ban tents for fear of Occupy-style protests (UK)

"The home secretary has vowed to clamp down on the threat of "encampment-style" protests within Olympic venues, urging organisers to ban ticket holders from bringing tents as a condition of entry."

Egyptian protesters say 'the revolution never went away'

Huge crowd gathers in Cairo to mark Egypt uprising, some call for new military rulers to go

Occupy protesters deliver icy verdict on Davos (CNN)

Police and fishermen clash in front of Italy's parliament buildings
"At least two people were injured Wednesday when police in Rome baton-charged a group of demonstrators who had thrown firecrackers at Italian parliament buildings to protest against fuel price and tax increases introduced by the country's technocratic government."

Students angry over fuel prices shut down Katmandu (Nepal)
"Students in Nepal have shut down the capital with a general strike to protest price increases for gasoline, diesel and cooking fuel."

## Energy/resources ##

Diesel consumption triples as gas supply disrupted (Israel)

High Oil Prices Taking Toll on Refiners
Instead of making money for refiners, high oil prices are driving them out of business. -- RF

The Peak Oil Crisis: On Closing Our Refineries (Tom Whipple)

Gas crisis stops power generation (Bangladesh)

Diesel cars guzzling 40% of segment's fuel: CSE (India)
Chinese Refinery in Chad Hits a Major Snag

Japan's Former Premier Takes Antinuclear Campaign to Davos

"Former Japanese Prime Minister Naoto Kan returns to the world stage this week, part of a campaign to reinvent himself as a global antinuclear activist nearly a year after he oversaw his government's widely criticized handling of the Fukushima Daiichi accident."

Black Sea resources focus of Kiev talks

Obama Backs Natural-Gas Fracking to Add 600,000 Jobs, Vows Safe Drilling

Pyongyang faces worst electricity shortage in years

"With apartments built after the 1980s having central heating systems, the power shortage has resulted in heating being cut off from apartments in central Pyongyang, where many high-level officials live."

Oil price could rise 30% if Iran halts exports

UPDATE 3-S.Korea hikes Iran crude imports 20 pct in 2011

Article in Nature: "Oil's tipping point has passed"

Electricity Crisis Likely to Worsen as Bassil Calls for More Rationing in Beirut (Lebanon)

## Infrastructure scavenging ##
Thieves seeking silver, brass and lead prey on churches (UK)

Metal thieves scrap entire Shorewood building (US)
"Thieves in the southwest suburbs apparently tore down an entire building to steal some scrap metal.
"Little is left of the building on Northwest Frontage Road near Shorewood."

Scrap metal thieves steal toilet parts from Amtrak station bathroom (US)

## Got food? ##
East Africa: Warning on Bio-Fuel Development Sounded

## Environment/health ##
Governments Worldwide Raise Acceptable Radiation Levels Based Upon Politics … Not Science

Electric grids survive solar storm

But they won't survive peak oil. -- RF

## Intelligence/security/internet/systemic breakdown ##
Docomo services disrupted for 4 1/2 hours, affecting 2.52 mil users (Japan)
#McFail? McDonald's Twitter Campaign Gets Hijacked

4,114 Stoplights in Los Angeles and the Intricate Network that Keeps Traffic Moving

## Japan ##
IMF says Japan should raise consumption tax to 15%

3 major parties agree on civil servant 8% wage cuts

Elpida may gain life support as chips slump
"Elpida Memory Inc., facing a deadline to repay ¥93.5 billion in debt by April, may gain financial support for the second time in three years as the government seeks to keep the company alive amid a slump in the chip market."

Tepco rate hike would drive Kanto steelmakers into red: industry group
"Tepco's plan to hike electricity rates for businesses by 17 percent will likely drive some steelmakers into the red and result in them shifting production to other parts of the country, the head of an industry group said Wednesday."

Radioactive gravel tied to more prefabs

## China ##
Chinese sub fleet on high alert in South China Sea
China's Oil Demand Rises by 0.7% in December
"Hits monthly, yearly records despite slowing growth"

China's real estate bubble more overvalued than US in 2006

Don't Fall for This China Head Fake

## UK ##

UK economy shrinks by 0.2% in last three months of 2011

400 jobs at risk as Thamesteel steel firm enters administration

Steel giant Tata to axe 110 jobs

Manufacturing sector hit as orders fall
Scotland talks independence – but can it afford it?

Student outrage as university places are cut by 15,000

## US ##

Bernanke: More easing possible if economy weakens

"Federal Reserve Chairman Ben Bernanke signaled on Wednesday the central bank may consider further monetary easing, after the central bank announced interest rates would remain near zero until late 2014."

Housing data points to slowdown in sales

Reports: Pentagon budget calls for cutting Army brigades
The Empire continues to downsize its legions. -- RF

Ron Paul: Steadily, 'Our Numbers Are Growing' (NPR interview with Paul)

Chart of the Day: Apparel Import Data in Square Meters and Dollars; J.C. Penney's Slashes Prices on All Merchandise by "At Least 40%", Offers Every Day Low Pricing (Mish)

NYC Hotels Alex, Flatotel Face Foreclosure

The Right to Bear Arms: Over 10,800,000 Guns Sold in the USA in 2011

J.C. Penney Says 'No Sale': Cuts All Prices

News Links, January 25, 2012

2012-01-24T17:30:00.000-08:00

## Global economic meltdown ##
S&P says likely to declare Greece in default

Greece, earnings worries send S&P to rare loss

Europe faces malaise and must reform, World Bank says
"Europe has little chance of making a strong economic recovery even if an impending recession proves mild and faces weak growth for the foreseeable future, burdened by debt that may not reach manageable levels until 2030, the World Bank said on Tuesday."

Greek Economy on Track to Implode: Hanke (Bloomberg)
"Whether or not Greece is able to reach an agreement on the restructuring of its debt, the country is set to 'implode' as the economy contracts, according to Johns Hopkins University's Steve Hanke.
"'The game is completely over,' Hanke, professor of applied economics, said at the Bloomberg Sovereign Debt Crisis Conference in New York hosted by Bloomberg Link. 'All the calculations are nonsense and have been since day one. Since the crisis began the money supply has been shrinking and the economy is going to implode, no matter what they do in the short run.'"

Hard Greek Default Likely This Quarter: Strategist (CNBC video)
"Bob Janjuah, Co-Head of Cross-Asset Allocation Strategy, Nomura, told CNBC, 'nobody is convinced that the fundamental story has been dealt with, I think what we are talking about here is a liquidity fuelled rally in risk assets, if that becomes a self-fulfilling prophecy, great but if it doesn't the ECB's balance sheet is going to look a real mess.'"

Sovereigns Declare War on U.S. Dollar

Young workers hit by rising unemployment (Australia)

13% of World's Youth Unemployed in 2011

India to pay gold instead of dollars for Iranian oil
"India is the first buyer of Iranian oil to agree to pay for its purchases in Gold instead of the US dollar, reported DEBKAfile's intelligence and Iranian. Those sources expect China to follow suit. India and China take about one million barrels per day, or 40 percent of Iran's total exports of 2.5 million bpd. Both are superpowers in terms of gold assets...

"The vast sums involved in these transactions are expected, furthermore, to boost the price of gold and depress the value of the dollar on world markets."

Governments Will Want Much, Much Higher Gold Prices Soon! Here's Why

Greek Standoff Sinks S&P

Billionaires Occupy Davos as 0.01% Bemoan Inequalities

## Fault lines/flashpoints/powder kegs/military/war drums ##

Brzezinski: Can democracies thrive with financial systems that are out of control?

"In an interview, Zbigniew Brzezinski, one of America's leading strategists, discusses shifting global power, looking at China, Europe, Turkey, Russia, the US, and the Arab Spring."

Pro-Gaddafi forces strike back, 'Libya out of control' (RT video)

Former Gaddafi stronghold revolts against Tripoli
"Libya's ramshackle government lost control of a former stronghold of Muammar Gaddafi on Tuesday after local people staged an armed uprising, posing the gravest challenge yet to the country's new rulers."
UK could send military assets to Strait of Hormuz

EU Agrees on 'Gradual' Iran Oil Embargo

Britain escalates warning to Iran over Gulf oil lanes

U.S. Sanctions Iran's 3rd Largest Bank

Poland fears U.S. defense cuts make it vulnerable to Russia

Arab League's peace mission to Syria on the verge of collapse

Deadly blasts in Baghdad's Sadr City

Japan and East Asia / Nations face off beneath the waves

China developing unmanned aircraft to counter U.S. forces

Davos: A Super Bowl For Smart, Rich People

## Global unrest/mob rule/angry people/torches and pitchforks ##
US relocates Bahrain embassy staff in safety move
"The United States said Monday it is relocating embassy staff and their families to new neighborhoods in Bahrain's capital Manama as part of safety precautions amid anti-government unrest."

Leaders' fear of political unrest grows
"WORLD leaders are increasingly fearful of major social and political unrest as they gather for a week of debates and drinks parties in Davos, according to three reports released yesterday.
"A majority of 345 designated 'risk experts' surveyed by the World Economic Forum (WEF) expected 'a major geopolitical disruption' – ranging from a terrorist attack to political unrest or war – to materialise over the next year. That compares to just over a third of those asked at the start of 2012."

Calls for demonstrations on Wednesday (Egypt)

Egypt's Wounded Revolutionaries Defy Army a Year After Uprising

Syria: Crackdown on protesters will continue

Romanian prime minister calls for unity as thousands protest

## Energy/resources ##
US-Iran standoff to send fuel prices through the roof (Pakistan)

EU's Iran embargo to raise pressure on Irish motorists
Petrol, diesel prices record high in Estonia
Shortages send fuel oil price soaring

"The price of fuel oil and marine fuel, known as bunker fuel, has risen to within a whisker of the record high set in 2008. A combination of low supplies as refiners shift output towards diesel and petrol and strong demand for electricity generation in Japan has pushed prices higher."

Sri Lanka to seek waiver on sanctions to get oil from Iran

Major energy companies rush to Norway

U.S. Cuts Estimate for Marcellus Shale Gas Reserves by 66%

Venezuela's declining oil production mirrors low investment

Venezuela Drills New Orinoco Oil Wells to Boost Production

Mexican state oil company says production continues to fall; dropped 1 percent in 2011

## Environment/health ##
Losing Bats to White Nose Syndrome

Outrage over Dams Being Built as Part of India's Hydro Energy Scheme

'Space hurricane' from the sun sweeping over our planet
Common Chemicals Could Make Kids' Vaccines Less Effective

## Intelligence/security/internet/systemic breakdown ##
Judge: Order to Decrypt Laptop Does Not Violate Fifth Amendment
Hackers Breached Railway Network, Disrupted Service

FTC site attacked by Anonymous, group says

Homeland Security Wants to Spy on 4 Square Miles at Once

## Japan ##

Japan's endgame nears

"In his 2011 book Endgame, New York Times best-selling author John Mauldin calls Japan a 'bug in search of a windshield,' and it's a great metaphor."
Exporter Japan eyes first trade deficit in three decades

"Japan probably produced its first trade deficit last year in more than three decades as energy imports surged to cover for the loss of nuclear power following the Fukushima disaster, a major blow to an economy built on its exports prowess."

Japan's economy predicted to shrink 0.4% in fiscal 2011

IMF slashes Japan's growth estimate for 2012 to 1.7%

Japan's Fiscal Pressure Intensifies as Tax-Boost Plan Insufficent: Economy

Fallout from Fukushima No. 1 on rise

Only one TEPCO nuclear power plant currently in operation

Utilities To Hike Surcharges Covering Solar Power Costs

## China ##
Gordon Chang: Inflation nudging Chinese to buy more gold

China Loans Ecuador $1 Billion as Correa Plans First Bond Sale Since 2005

## UK ##
Police issue security warning as fuel thieves hit lorries

Record diesel prices expected after refinery goes into administration
"1,000 jobs at risk after Coryton refinery in Essex stops supply, threatening disruption that could raise cost of food"

Government debt rises to a record of £1tn

IMF slashes UK's growth forecasts

House sales plunge to continue three-year slump

## US ##
Heating Oil Advances on EU Ban of Iran Oil, Refinery Shutdowns
Obama to Use Pension Funds of Ordinary Americans to Pay for Bank Mortgage "Settlement"
LAPD: Joint Military Drills In Downtown LA Won't Disrupt Public's 'Daily Routines'

Is The NYPD Experimenting With Drones Over The City? Evidence Points To Yes

Down And Out Escape To 'Slab' In California Desert

"Slab City is an informal community in the California desert on the site of a former WWII artillery range. The recent recession has sent the town a new wave of people who have fallen on hard times and are looking to escape the burdens of modern life."

Americans Lead in Debt Reduction: Study

US Post Office Needs to Cut 260,000 Jobs: Rep. Issa

George Soros on the Coming U.S. Class War

Why Isn't Illinois A Bigger Story Than Greece?

Illinois will likely be one of the states leading the muni bond collapse. -- RF

News Links, January 24, 2012

2012-01-23T17:15:00.000-08:00

## Global economic meltdown ##
Lagarde calls for larger bailout fund
"International Monetary Fund director Christine Lagarde urged the European Union to add significantly more firepower to its economic rescue fund.
"In a speech in Berlin, Lagarde advocated for the EU to double available emergency funds, which she called a 'firewall' to $1.3 trillion."
IMF Chief Lagarde: World Economy Risks Depression-Era Collapse In Demand
"The global economy faces a depression-era collapse in demand if Europe doesn't quickly act to dramatically boost the size of its debt-crisis firewall, implement pro-growth policies and further integrate the euro zone, the head of the International Monetary Fund warned Monday."
600 million new jobs needed in next 10 years, says ILO
"The International Labor Organization on Tuesday released a pessimistic report for the global jobs market in 2012 saying urgent attention is needed to create 600 million new jobs in the next 10 years."

Many — or most — new jobs will be created by the quickly growing global underground economy. -- RF

EU Banks Deepen Dependence on Unlimited Central Bank Loans
"European banks, shunned by investors and each other, may borrow as much next month from the European Central Bank as they did in a record offering in December as they seek refuge from frozen funding markets."

Apple (and America's) Chinese Slave Labor Problem
Dubai's Zabeel $1.6bn debt talks stall - sources
"Debt restructuring talks at Zabeel Investments, owned by the crown prince of Dubai, have ground to a halt with multiple loans in limbo and few assets available for sale, leaving banks facing steep haircuts, five people familiar with the matter said."

Bloodbath to hit Australian real estate, analyst Jordan Wirsz says

More than 50,000 federal jobs on chopping block as Ottawa trims spending (Canada)

U.S. economy may never fully recover: Carney

Toyota to cut 350 jobs nationwide (Australia)

Maruti Suzuki Profit Slumps 64%

Bank of Israel cuts rates as economy slows

Texas Instruments Profit Drops 68%; To Close 2 Plants

## Fault lines/flashpoints/powder kegs/military/war drums ##
U.S. aircraft carrier sails through strategic Strait of Hormuz

Iran slams EU oil embargo and warns could hit U.S.

Iran 'definitely' closing Strait of Hormuz over EU oil embargo

Currency Wars - Iran Banned From Trading Gold and Silver

France's Hollande declares war on world of finance

Gaddafi loyalists take back Bani Walid

Russia closes deal on $550 million worth of warplanes for Syria

USS Simpson and Fire Scout set sail for Africa
US Troops Barely Gone, But Iraqi Govt Coming Apart at the Seams
Sheikhs fall in love with renminbi

## Global unrest/mob rule/angry people/torches and pitchforks ##
Chinese fire on Tibetan protesters, 1 dead: advocacy group
"Chinese troops fired on thousands of Tibetans who staged a protest in southwestern Sichuan province Monday, killing one and wounding as many as 30 of the demonstrators, an overseas advocacy group said."

Some See Two New Gilded Ages, Raising Global Tensions

Super-Rich Play Snow Polo as Igloo Agitators Heckle Davos Elite

## Energy/resources ##

OPEC: World Oil Demand to Near 89mb/d

Loss of Iranian Oil Could Add $40 a Barrel to Oil Price (CNBC video)

"Sabine Shels, senior director and global commodity strategist at BofA Merrill Lynch Global Research, told CNBC, 'sanctions against Iran could be a big risk for oil prices to go higher, simply Iran is the second biggest supplier of crude oil to Europe after Saudi Arabia and it is particularly the peripheral countries that are highly exposed to a loss of Iranian output.'"

China's Energy Firms Invade the Great White North

Analyst: Libyan oil recovery has limits

"'It is going to become progressively more difficult for them to increase production further,' Paul Stevens, a senior research fellow from Chatham House, told The National. 'There was a lot of damage done, a lot of theft of equipment and, more importantly, there's a serious shortage of qualified manpower.'"

IEA predicts declines in Nigerian energy

Gazprom to build South Stream in December

Sanctions push crude oil prices

Shale-Shocked: Fracking Gets Its Own Occupy Movement

Fossil Fuels vs. Renewables: The Key Argument That Environmentalists are Missing
Russia Orders Oil Companies To Freeze Gasoline Prices -Report
London and South East could face petrol shortage after refinery closure

## Got food? ##

Thinking About Food at Davos

"'We believe that the general trend for food commodity pricing is upwards,' says David Philipp, CEO of Ambata Global Advisors, an investment and advisory firm focused on sustainability themes."

Why GMO And Organic Can Not Co-Exist: Lateral Gene Transfer
Imagining Skyscraper Farms

Urban farms, yes. But vertical farms will last only as long as there is money and energy to maintain and operate the buildings. -- RF

## Environment/health ##
Huge Pool Of Arctic Water Could Cool Europe: Study

"A huge pool of fresh water in the Arctic Ocean is expanding and could lower the temperature of Europe by causing an ocean current to slow down, British scientists said Sunday."

Hospitals facing an acute drugs 'drought' (Australia)

"A SEVERE shortage of cancer and anaesthetic drugs is looming in Australia following a similar drought in the US, health experts warn."

10 places abandoned because of man-made environmental catastrophes

Bjorn Lomborg's climate sceptic thinktank to close

## Intelligence/security/internet/systemic breakdown ##
If feds can bust Megaupload, why bother with anti-piracy bills?
Polish sites hit in Acta hack attack

## Japan ##
Fukushima Cover Up Unravels: "The Government Can No Longer Pull the Wool Over the Public's Eyes"

IAEA reviews Japan's nuclear power safety

Thai Floods Took 4% Bite Out Of Japanese Output: Cabinet Office

10 control systems infected by viruses / Manufacturing sector vulnerable, ministry says
"At least 10 control systems managing production lines at vehicle and chemical plants had been infected with computer viruses by last March, forcing some of them to temporarily suspend operations, according to an investigation by the economy ministry."

Tainted stone tied to 60 buildings so far

## China ##

China's housing market is set for a hard landing
"The numbers are grim: China's property bubble is heading for a spectacular burst, and its effect on the country's economy will be widespread."
US actions make China-Russia alliance appealing (People's Daily)
State Grid of China Said to Bid for 25% of Portugal's REN; Oman Oil Offers
"State Grid International of China offered to buy 25 percent of Portuguese power-grid operator REN- Redes Energeticas Nacionais (RENE) SA, said two people with knowledge of the potential deal. Oman Oil Co. separately made a bid for 15 percent of REN, one of the people said."

ANALYSIS: Chinese military on edge after death of Kim Jong Il

European debt crisis rings alarm bells in China

## UK ##
Royal Navy warship set for Middle East mission

David Cameron: 'don't complain about welfare cuts, go and find work'

## US ##

United Welfare States of America: In 2011 Nearly Half The Population Received Some Form Of Government Benefit
Union reaches settlement to end Port of Longview labor dispute that included arrests, fines
Apparently there were plans to use military intervention. -- RF

Police need warrant for GPS tracking: court

Stocks Are Cheaper Than They've Been in Two Decades
"U.S. stocks are trading at their cheapest levels since at least 1990, according to such commonly used valuations as price-to-earnings and price-to-book ratios as well as dividend yield, Bespoke Investment Group says."

BofA Targets Up to $3 Billion in Additional Cuts

Fannie, Freddie Would Need Another $100 Billion From Taxpayers for Obama's Proposed Mortgage Writedowns; Obama Seeks Vote-Buying Opportunity; What's the Real Cost?

Is the ETF bubble about to burst?
Foreclosures: America's hardest hit neighborhoods

The Jobless Recovery to Remain Jobless

News Links, January 23, 2012

2012-01-22T17:01:00.000-08:00

## Global economic meltdown ##
Australia Roundup: Oceanfront Homes for 65% Off; Chain Sales and Contingent Offers; Retailers Brace for More Job Cuts; Cusp of a White-Collar Recession (Mish)

Greek Debt-Swap Accord 'Coming Into Place'

Korean Shipyards to Buy 12% Less Steel as Slump Hits Posco

Offshore plants, LNG ships may save Korean shipbuilders in 2012

Reuter update on output cuts by major steelmakers in Europe

"European steelmakers have announced several production cuts in the face of weaker demand and more furnaces are likely to be idled in coming months. Some producers have announced restarts and even an expansion, but curtailments are likely to dominate as consumers prefer to run down their stocks in an uncertain economic environment."

Norsk Hydro Restricts Production at its Aluminium Facility in Australia
"In response to the economic slowdown, low metal prices and a weak market, Norsk Hydro has announced that it will stop one of its production lines at its facility located in Kurri Kurri in Australia."

Taiwan Industrial Production Declines More Than Expected

U.S. industrial pop may be just that

Russia's Norilsk plans production cut in 2012 - CEO

## Fault lines/flashpoints/powder kegs/military/war drums ##
Iraq risks slipping into authoritarianism: rights group
"Iraq risks sliding back towards authoritarian rule with Shi'ite Prime Minister Nuri al-Maliki's security forces cracking down on protests, harassing opponents and torturing detainees, a U.S.-based human rights monitor said on Sunday."

Rasmussen: NATO No Threat to Russia, Kaliningrad Shield a 'Waste'

Iran Sanction Bill Exempts BP Project

"British and European Union officials have convinced some U.S. lawmakers to ensure that any new sanctions against Iran exempt a BP PLC-led natural-gas project, as Western governments try to isolate Tehran without harming their own energy security.

"The $20 billion project in the Caspian Sea off Azerbaijan is seen as key to alleviating Europe's dependence on Russia as its largest supplier of natural gas."

Saudi Arabia to withdraw Arab League monitors from Syria

Nigeria's deadliest terror attack kills at least 178

Nigeria sectarian violence shows no signs of abating

US to keep 11 aircraft carriers to show sea power
"Defense Secretary Leon Panetta told sailors aboard the country's oldest aircraft carrier that the U.S. is committed to maintaining a fleet of 11 of the formidable warships despite budget pressures, in part to project sea power against Iran."

## Global unrest/mob rule/angry people/torches and pitchforks ##
Protesters ordered off city parks (New Zealand)

Romanian anti-government protests enter 10th day

Syria unrest spirals out of control

Coldiretti Estimates 50 Mln Euro Damage For Trucker Strike (Italy)

"(AGI) Rome - The damage caused to the agro-food sector by the Sicilian truck-drivers' week-long strike amounts to 50 mln Euros."

Villagers hold protest against shortage of basic amenities in Kinnaur, Himachal (India)

## Energy/resources ##
Aluminium's energy nightmare (India)

Australia's LNG boom fizzles as costs, competition bite

The peak oil crisis: cold fusion update
Greece Pushes Back Against Cutting Off Iranian Oil Imports
"The economies of Greece and other struggling EU countries would be harmed with the US-led sanctions on Iran"

Fuel crisis continues, despite state TV report of Cairo letup (Egypt)
Fuel oil assistance program runs dry (Canada)

## Got food? ##
Explosive growth expected for global agri-chemicals market

Intolerable Stench: Confronting the Threat of Industrial Pig Farms (Germany)

Argentina Corn, Soy Forecasts Cut on 'Disastrous' Drought

## Environment/health ##
U.S. craving for energy drives wildlife toward extinction: Report
China reports second bird flu death in a month

## Intelligence/security/internet/systemic breakdown ##
Europe to issue tough new data-protection rules soon

## Japan ##
Tokyo Steel may cut output in Kanto on Tepco power price hike
'Radiation divorce' enters Japanese vernacular

Concentrations of radioactive substances in the air falling quickly

Sony considering moving battery production from Japan to abroad

## China ##
Senkakus are 'core interests': China
"Japanese government officials are weighing China's intent after the People's Daily, the newspaper of the Communist Party, called the disputed Senkaku Islands in the East China Sea part of Beijing's 'core interests.'"
China's crude imports from Saudi surge
"China's crude oil imports from Saudi Arabia rose to 1.12 million barrels per day in December, the fourth-highest on record on a daily basis, Chinese customs data showed, as the world's top oil exporter pumped just under the 10m bpd mark."

## UK ##
Eight City banks in £1.8m pay spree

Fruit and vegetable consumption by poorer families falls 30%, figures show
"Rising food prices and recession resulting in lower income households cutting their recommended five-a-day portions"

Profit warnings in UK 'up 70% in fourth quarter'
"The number of UK firms who warned that profits would be lower than expected rose by more than 70% in the last three months of 2011, a report has said."

## US ##
Indian Casinos Struggle To Get Out From Under 'Wall Of Debt'
There Are 1.4 MILLION Gang Members In The United States And More Pour Into The Country Every Single Day

Skip the dryer, save $200

Dripping with red ink: Will anyone fix Illinois' budget mess?
Oil prices ground Southwest growth (CNN Money video)
Apple Proves It: Jobs 'Aren't Coming Back' to America
HIV meds increasingly sold on the black market

And finally... Sex scene plays in the background of TV news broadcast

News Links, January 22, 2012

2012-01-21T17:10:00.000-08:00

## Global economic meltdown ##
Greece's creditors leave Athens, talks to continue
"Chief negotiators for Greece's private creditors left Athens on Saturday without a deal on a debt swap plan that is vital to avert a chaotic default, sources close to the negotiations told Reuters."

Greek bond deal won't fix Athens' debt woes

"But the financial lifeline from European officials comes with painful conditions that include more spending cuts and tax increases. That will likely plunge the Greek economy even deeper into recession. Greece's economy has already shrunk 13 percent from its pre-crisis peak. Unemployment is at record highs. Frequent protests and strikes against austerity measures have further deepened the economic contraction."

Greek Debt Talks Stall, More Negotiations "By Phone" Later Today; IMF Germany Think 4% Coupon Too High; Greek Haircut Calculator

Germany's Westerwelle Says Financial 'Firewall' Needed to Stem Debt Crisis

Vietnam Inflation Slows to 17.27%

How the rise of the megacity is changing the way we live

## Fault lines/flashpoints/powder kegs/military/war drums ##
After threats, Iran plays down U.S. naval moves
"Iran's Revolutionary Guard Corps said on Saturday it considered the likely return of U.S. warships to the Gulf part of routine activity, backing away from previous warnings to Washington not to re-enter the area."

France's Sarkozy: Military strike on Iran would trigger Middle East war (Haaretz)

Scores killed in terrorist attacks in Nigeria

Libya and the NTC - 12,000 U.S Troops to Libya

One Mexican State Bordering The US Was Deadlier Than All of Afghanistan Last Year

Putin meets Kissinger on global issues, bilateral ties

Egypt's Muslim Brotherhood Wins In Landslide

## Global unrest/mob rule/angry people/torches and pitchforks ##
Libya: Protesters Storm Transitional Government Headquarters

"Hundreds of angry Libyans on Saturday stormed the transitional government's headquarters in the eastern city of Benghazi, carting off computers, chairs, and desks while the country's interim leader was still holed up in the building."

Syria blasts kill 14, Arab monitors may stay

Over 100,000 rally in Hungary to back govt in EU row
"More than 100,000 people rallied Saturday in a show of support for the embattled Hungarian government, as it prepares to compromise in a bitter row with the European Union to secure a vital loan."

Occupy London protesters take over fifth London site

Severe electricity cuts give rise to protests across country (Lebanon)
"Severe electricity cuts fueled several protests Friday as residents and lawmakers staged a sit-in in the mountain town of Aley and small groups of protesters blocked roads in the south of the country. Civil society groups and local officials from the districts of Aley and Upper Metn gathered near Aley's Serail to protest severe power cuts and inadequate supplies of diesel in the region."

Anger grows over shortage of essentials (Kashmir)

"The public reaction against shortage of essentials is growing severe with reports of anti-Government protests from various places."

## Energy/resources ##
China Cuts December Gasoline Exports, Imports More Diesel Before Holiday
"China cut gasoline exports to the lowest level in almost three years in December and diesel imports reached their 2011 high as fuel was stockpiled to meet increased demand for transport around the Lunar New Year break."

Diesel thirst fueling exports, pressuring prices (US)

Wind turbines are blowing communities apart, farm group says (Canada)
"Ontario should suspend awarding further contracts for large wind turbines, the province's biggest farm organization says.
"'It's tearing rural communities apart, so farmers can't do what they do best, which is grow food,' OFA president Mark Wales said in an interview."

Water revolution looming, author says

Like Fracking? You'll Love 'Super Fracking'

Brazil Oil: China's Growing Role
"Brazil has surpassed Venezuela as Latin America's largest exporter of oil to China."

The natural gas glut is reshaping electricity markets

The glut will have a highly disruptive effect, especially since it won't last. -- RF

U.S. Wind-Farm Boom Set to Bust in 2013 as Obama Tax Breaks End

Polysilicon Prices Hit Record Low in 2011

How to Choose the Right Woodstove

Australian Peaky Leaks goes mainstream
Blackout hits five regions (Ghana)

Ont. refineries affected by power outage

Gas station owners face uncertainty (Virgin Islands)

Search for oil – and engineers

## Infrastructure scavenging ##
Manchester Cathedral at the mercy of God over metal thefts
"There have been so many metal thefts at Manchester Cathedral that it can no longer claim on its insurance policy."

## Got food? ##

Sugar shortage looms as retailers start rationing (Malawi)
Use of Corn for Fuel in U.S. Is Increasing Prices Globally, FAO Chief Says

Indonesia Seeks 10 Million Ton Domestic Rice Crop Increase, Suswono Says
Urban gardens: The future of food?

## Environment/health ##
Overflowing sewage water woes force Jeddawis to dig wells (KSA)
"A number of residents of Jeddah, who are desperate to find solutions to the problem of the overflowing sewage water following what they called the empty promises from the concerned officials, have found their own solution to the issue, although only temporary.
"They have started digging surface wells near their houses to collect the leaking sewage water, Al-Madinah reported Friday quoting a number of Jeddah residents."

## Intelligence/security/internet/systemic breakdown ##

What if Internet went down?
"If a day without Wikipedia was a bother, think bigger. In this plugged-in world, we would barely be able to cope if the entire Internet went down in a city, state or country for a day or a week."
Network outage crimps work of Va. state police
"Virginia State Police say a computer network outage left them unable for several hours to perform such routine tasks as running fingerprints, conducting background checks and registering sex offenders...

"It was the latest in a rash of sporadic outages to hit a state computer system."

Power failure takes down Zoho
"The Web site and office tools of online services company Zoho were knocked offline Friday by a power outage in its data center."

Hundreds Without Phone Service after FiberNet Outage

Senate told; seven airports closed on low traffic, suspension of PIA flights (Pakistan)

## Japan ##
Plan calls for TEPCO to be nationalized for at least 10 years
"The operator of Japan's crippled nuclear power plant will be effectively nationalized for at least 10 years under a plan to provide it with money to fund compensation payouts, a report said Saturday."

Water falling like rain inside N-reactor

Oil Shipments Bound for Japan Increase 12%, Tanker Data Show

## China ##
China's Oil Imports from Iran Jump
China Hedges Mideast Oil Bets Amid Iran Tensions

## UK ##
Ofcom switches off Iranian broadcaster Press TV
Ministry of Defence faces £2 billion more cuts

## US ##
Stark Choice for Lawyers— Firms Must Merge or Die

"Business is slow. Clients demand discounts. And top partners are being poached by rivals. For many law firms, these factors have created a stark choice: Merge or die."

City Libraries to Reopen Mondays (Chicago)
"After shutting down library branches on Mondays earlier this month, Mayor Rahm Emanuel announced Saturday that he planned to re-open them on Monday afternoons for most of the year and all day on Mondays when schools are not in session."

NYPD can look through clothes for hidden guns, top cop says

Army report: Suicide rate sets record; some alcohol abuse up 54 percent

Housing & American Health (CNBC video; increases in foreclosures = increases in hospitalization)

Pentagon Directing More Military Aid to Eastern Europe

News Links, January 21, 2012

2012-01-20T17:22:00.000-08:00

## Global economic meltdown ##
Visualizing the World's $1 Trillion Black Market (National Geographic infographic)

Say hello to the world's second-largest economy. -- RF

Greece on verge of breakthrough in deal to cancel 70% of debt

Greek Default Won't Lessen Contagion Risk: Strategist

EUR Shorts Hit New Record

Survival Of The Unfittest: Japan Or The UK?

Italy Faces 2-Year Recession says IMF; European Recession Neither Mild Nor Short

US, Europe Face More Ratings Cuts in Coming Years

Cash-Strapped Ireland Tests Limits of Austerity
"Ireland is testing the limits for how much European Union-ordered austerity one country can take. Its four-year struggle to save its banks and tame a runaway deficit has already meant slashing thousands from the annual budgets of most households — and many Irish say they're close to breaking point."

Austerity Measures in Portugal Lead to Tax Dodging
"The new data indicates that the shadow economy in Portugal is much higher than in most other OECD countries in Europe, which have estimated underground economies worth 17 percent of the GDP on average. According to the authors of the new report, the only countries with higher levels of unreported economic activity are Greece."

One in 10 Canadians cannot afford prescription meds

2012 Supply Chain Predictions: Is the End of the World Nigh?

France grapples with job conundrum

Korean Shipyards to Buy 12% Less Steel as Slump Hits Posco

ThyssenKrupp says steel markets have weakened, no recovery soon

European steelmakers feel the heat; cut production
"In the wake of declining steel demand, many of Europe's leading steelmakers are cutting back production and more furnaces are likely to be idled in coming months."

Marc Faber Resumes Bloodfeud With Treasurys, Still Sees Entire Financial System Imploding

Shilling says new global recession is here

Portugal's restaurants down in dumps as crisis bites

## Fault lines/flashpoints/powder kegs/military/war drums ##
Syria: U.S. Reportedly Prepares To Close Embassy

Major powers signal openness to Iran talks

"Major powers seeking to negotiate an end to Iran's suspected pursuit of nuclear weapons on Friday signaled their openness to renewed talks with Tehran but diplomats said the powers remain divided on their approach."

EU prepares unprecedented attack on Iranian economy
"The European Union is preparing to launch an unprecedented attack on Iran's economy at a moment when experts believe the confrontation over the country's nuclear ambitions is entering a dangerous new phase."

Iran oil to be sanctioned by Europe Monday

Iran's options if they find themselves on end of a military strike
"If Israel or America were to launch a military strike to destroy Iran's nuclear facilities, Tehran would have numerous ways of hitting back."

Nigerian city of Kano rocked by explosions and gunfire

U.S. Military Chief in Israel Amid Iran Tensions

Battle for control of Asia's seas goes underwater

"But America's submarine dominance in the Pacific is facing its biggest challenge since the Cold War. Nearly every Asian country with a coastline is fortifying its submarine fleet amid territorial disputes stirred up by an increasingly assertive China and the promise of bountiful natural resources."

## Global unrest/mob rule/angry people/torches and pitchforks ##
Vietnam's factories grapple with growing unrest
"The number of wildcat strikes in Vietnam doubled last year as workers suffering from Asia's highest inflation rate struggled to obtain better wages."

Labour unrest in China – no letup soon

Unrest Spread Eastwards
"Protests in Hungary and Romania are the first signs of anti-systemic mobilisation in the Eastern half of the continent."

Occupy Wall Street: Protesters To Demonstrate Outside Courthouses
Karachi police clash with KESC workers
"Karachi's 'Red Zone' on Friday became a battlefield as a strong police force clashed with members of the Karachi Electric Supply Company (KESC) workers union who tried to reach governor's house."

## Energy/resources ##
Uganda: Power Crisis Weighs Down Economy

Barrelling towards fuel shortages (South Africa)

"Because South Africa sources about a quarter of its crude oil imports -- about 100 000 barrels a day -- from Iran and another quarter from neighbouring Saudi Arabia, geopolitical events involving these countries could seriously knock the local economy."

South Sudan plans to shut oil production within 2 weeks
"South Sudan said on Friday it was working out a plan to shut down oil production within two weeks after Sudan said it had started seizing southern oil to compensate for what it said were unpaid transit fees."

Feds To Finance Small Nuclear Reactor Designs

Solar Stocks Plunge as Germany Vows to Quicken Subsidy Cuts
"Solar stocks plunged around the world after Germany, the largest market for panels, said it will make quicker cuts to subsidized rates and phase out support for the industry by 2017."

China's Next Big Energy Playing Field – Canada?
Gas crisis getting worse (Pakistan)
Russia doubled gasoline imports in 2011
"Russia, the world's top crude producer, more than doubled gasoline imports last year in an attempt to ease politically-sensitive fuel shortages before the national election cycle began, statistics showed on Friday."

## Infrastructure scavenging ##
Seniors stranded after thieves pilfer golf cart batteries

## Got food? ##
After immigration crackdown, farmers mull planting

"Farmers and state officials have said that some produce was left to rot in the field last year because there weren't enough workers to help with the harvest."

## Environment/health ##
Bird Flu Study Shut Down Over Terrorism Fears

Solar blast heading our way

## Intelligence/security/internet/systemic breakdown ##
Tasers a 'new urban terrorism' against 'downtrodden': Canadian study

Middle-East Cyberbattle Escalates as Arab Banks Take a Pounding

## Japan ##

Japan asks Washington to grant waiver on latest Iran oil sanctions
"Japan has requested that the United States grant it a waiver from new sanctions it is leveling on Iran, pointing to the risk of another economic setback and its already extant plans to reduce oil imports, a senior Foreign Ministry official said."

Scrambles against Chinese military jets soared in 2011
"Scrambles by Japan's Air Self-Defense Force against Chinese military aircraft skyrocketed last year, most of them occurring over the disputed Senkaku Islands in the East China Sea."

Meltdown at Hamaoka plant certain if power supply knocked out for 3 days
"A catastrophic meltdown of nuclear fuel in reactors at the Hamaoka nuclear power plant would take place if a blackout and failure of emergency power sources lasting three days crippled the cooling system, according to operator Chubu Electric Power Co."
Citing Weak TV Market, Moody's Downgrades Sony, Panasonic

Kansai Electric facing heavy loss
"Kansai Electric Power Co. is expected to post a significant group net loss in the business year to March as fossil fuel costs for generating electricity have expanded to cover the plunge in nuclear power, industry sources said Friday."

Manufacturers' Confidence Slides For 2nd Month

Economists Estimate Japan's Dec Trade Deficit At Y139.7bn

Firewood ash at Nihonmatsu homes found to contain high levels of radioactive cesium
"High levels of radioactive cesium have been detected in ash from firewood used in stoves and fireplaces at homes in Nihonmatsu in Fukushima Prefecture, according to the Environment Ministry."

## China ##

China's 'Strong' GDP Growth Is A Mirage

"Official inflation numbers in China are generally deemed to be about half of the actual inflation. If the latter is deducted, GDP growth would be almost flat."

China January 'flash' PMI 48.8, shows contraction

Roubini Sees 'Significant' Slowdown in China

China's urban explosion: A 21st century challenge

## UK ##
Occupy protest movement to go into schools

"Former citizenship teacher Jamie Kelsey Fry says that with protesters due to be evicted within weeks, an outreach programme is the natural next step."

## US ##

U.S. Debt in Worst Start Since 2003
Lose a job, prepare for a really long job search
Rich Shoppers Are as Bargain-Hungry as Less Affluent

Doctors living on loans

"Government-backed loans to doctors have surged more than 10-fold in the past decade, a trend industry insiders say is a red flag that doctors in America are in financial distress."

Supplying Troops in Afghanistan Costs US Six Times After Closure of Pakistan Routes

News Links, January 20, 2012

2012-01-19T17:23:00.000-08:00

## Global economic meltdown ##
Money Supply Figures Suggests Italy Headed Into Depression; Non-Performing Spanish Loans Hit 134 Billion Euros, 7.51% of All Loans, Highest in 17 Years; Eurozone Unemployment Charts

Momentum to drain from world economy in 2012: poll

Japan disaster turned 2011 into record year for losses
"Economic losses from disasters around the world in 2011 totaled a record $366 billion due mainly to the March 11 earthquake and tsunami, according to a United Nations report released Wednesday."

The World Continues Preparations for the End of the Global Dollar-Based Ecosystem (Financial Sense)

Hedge Funds May Sue Greece If Loss Forced

Fed's Latest Easing Could Cost $1 Trillion: Economists
"The Federal Reserve is likely to step in with $1 trillion worth of easing that could be announced as soon as this month, according to a growing consensus of economists who see the recent uptick in economic growth as unsustainable."

Australian Banks Brace for Leaner Times

Barclays says chequebook still open for debt-laden Dubai

Large Nations Consider Economic IMF Aid as Smaller Ones Collapse

## Fault lines/flashpoints/powder kegs/military/war drums ##

Russia says will stand firm with China on Syria
"Russia will offer Washington no explanation for arms deliveries to Syria and together with China will prevent the U.N. Security Council from approving any military intervention in the conflict-torn nation, its foreign minister said on Wednesday."

Syria's Muslim Brotherhood tells world to isolate Assad

Iran's UN Ambassador Says Closing Strait of Hormuz Is an Option

Iran warns neighbours not to join isolation attempts

Israel says ... Iran isn't building a nuclear weapon

Top U.S. general in Israel to discuss Iran's nuclear program
"The top U.S. general, visiting Israel at a delicate and dangerous moment in the global standoff with Tehran, is expected to press for restraint amid fears that the Jewish state is nearing a decision to attack Iran's nuclear program."

Exclusive: New U.S. Commando Team Operating Near Iran

U.S. To Israel: Give Iranian Sanctions A Chance

Iran Could Hold U.S. Attention in Middle East for Decades

Operating from Range to Defeat Iran's Anti-Access and Area-Denial Threats
"Since the collapse of the Soviet Union, the U.S. military has been able to project power overseas with few serious challenges to its freedom of action. This 'golden era' for U.S. power projection may be rapidly drawing to a close."

## Global unrest/mob rule/angry people/torches and pitchforks ##
Protesters try to disrupt showpiece Bahrain Air show
"Anti-government protesters tried to disrupt the Bahrain airshow on Thursday, burning tires which sent up columns of smoke as the authorities attempt to show life is returning to normal in the troubled Gulf kingdom."

'Unemployed graduates' set themselves alight in Morocco

"Five unemployed Moroccan men set themselves on fire in the capital Rabat as part of widespread demonstrations in the country over the lack of jobs, especially for university graduates, a rights activist said Thursday. Three were burned badly enough to be hospitalized."

Anger over plans to restart Japan's nuclear plants

"'Shame on you, shame on you,' shouted protestors, as officials met to discuss plans to restart Japan's nuclear plants for the first time since last year's Fukushima disaster."

Students in Nepal burn tires, block roads to protest fuel price increases

## Energy/resources ##

With Gas so Cheap and Well Drilling Down, Why is Gas Production so High? (Post Carbon)

"So, despite vocal industry proponents to the contrary, there is no such thing as a free lunch. Growing, or even maintaining, U.S. oil and gas production will require an increasing level of inputs in terms of the number of wells drilled, the footage drilled, the capital investments required, and, likely, the large amounts of collateral environmental damage incurred."

A good read in that it mostly sidesteps the environmental issues and concentrates on inputs. -- RF

Oil rig arrives for Cuba offshore exploration work

Bulgaria Bans Gas Fracking, Thwarting Chevron Drilling Plan

Fuel costs, weak euro compound Europe's troubles
"Euro prices for gasoline, diesel reach record high"
Fuel crisis continues despite government's claims of breakthrough (Egypt)

Shortage of coal to worsen power woes (India)

## Got food? ##
Russia Restarts Grain Purchases for Government Reserves
European Commission Aims to Cut Food Waste 50 Percent by 2020

## Environment/health ##
Study Finds that Childhood Leukemia Rates Double Near Nuclear Power Stations

British pharmacy chain announces roll-out of new smart pills loaded with microchip

## Intelligence/security/internet/systemic breakdown ##
Internet SOPA/PIPA Revolt: Don't Declare Victory Yet

Anonymous strikes back after feds shut down piracy hub Megaupload

## Japan ##
Tepco Drills a Hole in Fukushima Reactor … Finds that Nuclear Fuel Has Gone Missing

About that "cold shutdown"... -- RF

Scientists say they can find melted reactor fuel

Japan Asks U.S. To Exempt Domestic Banks From Iran Sanctions

"Japanese negotiators on Thursday urged the U.S. to exclude domestic banks from any penalties related to the Iranian oil sanctions, citing a potentially debilitating impact on the nation's economy."
Oi plant gets initial NISA restart nod
"The Nuclear and Industrial Safety Agency has tentatively approved two idled reactors at Kansai Electric Power Co.'s Oi power plant in Fukui Prefecture as safe to restart but had a hard time submitting the draft to nuclear experts because of hours of interference from protesters."

Welfare ministry to make new poverty index
"The welfare ministry has decided to create a new poverty index in response to the sharp increase in the number of people living on welfare benefits and problems related to the working poor, it has been learned."

## UK ##
Hague to 'uphold UK sovereignty' over Falklands

## US ##
Gas Tax Hike Debated In Virginia, Iowa As Revenues Disappoint
Wall Street Job Cuts December 2011: Financial Industry Shed 2,000 Jobs Last Month

Army Foresees Expanded Use of Drones in U.S. Airspace

Public Employees Fight To Retain Shrinking State Pensions

Southwest May Delay Expansion Until 2014 With Oil Near $100

30-year fixed-rate mortgage hits record low

Panetta, Aerospace Executives To Talk Industrial Base

The extent to which war underpins the industrial base cannot be underestimated. -- RF

Americans Anti-Big Business, Big Gov't (Gallup)

The Nine American Cities Nearly Destroyed by the Recession
Cargo Theft Reaches Record High in 2011

News Links, January 19, 2012

2012-01-18T17:15:00.000-08:00

## Global economic meltdown ##

IMF seeks $600 billion more in funds

"The IMF said it will need $500 billion to lend to member countries in need and IMF sources who were present at an IMF board meeting on the issue on Tuesday told Reuters that another $100 billion is needed as a 'protection buffer.'

"The IMF also estimated there would be a $1 trillion global financing gap over the next two years if global economic conditions worsened considerably, the sources added."

US Has 'No Intention' of Giving More Money to IMF
"The US Treasury has 'no intention' of providing additional money to the International Monetary Fund, a Treasury official told CNBC Wednesday, even though the IMF is hoping to raise an additional $500 billion to help fight the European debt crisis."
Hungary faces ruin as EU loses patience
"The European Commission has launched legal action against Hungary's Fidesz government for violations of European Union treaty law and erosion of democracy, marking a dramatic escalation in the war of words with the EU's enfant terrible."

Greece in new talks to avoid debt default
"Papademos in talks with country's private creditors in effort to persuade them to accept $129bn write down on bonds."

"No Deal" - Greek Bondholders Do Not Think Agreement Can Be Reached Before "Crunch Date"

Central banks huge gold buyers in 2011

Germany Cuts Growth Forecast

Fitch Could Downgrade Italy by Two Notches: Director

France to Sell Up to EU9.5 Billion in Debt

France and the death of the sovereign debt market

World Bank Lowers Growth Forecast

"The World Bank has revised downward its global growth forecast for 2012, acknowledging that the world is in a precarious position under threat of a Lehman-like crisis engulfing capital markets."

Why the Cascade of Downgrades Has Barely Begun

Vinashin Said to Miss Third Payment on $600 Million Facility

Bangladesh squeezes imports
"Asif said the foreign currency reserves might fall to as low as $3 billion after payment of debts against new rental power plants. He doubted whether the government would be able to pay the salaries of its employees within five months. 'Where's the money? Forget about investment,' he told a press conference on January 8."

Tanker firms batten down the hatches

Acropolis Succumbs to Debt Crisis as Greece Cuts Filming Costs

Debt Crisis Leaves Nothing Sacred as Italy Church Chased on Tax

The Debt Supercycle Reaches Its Final Chapter (Financial Sense)

## Fault lines/flashpoints/military/war drums ##

Iran oil embargo set to be agreed by EU ambassadors
"Embargo could take effect on 1 July although Greece, which is heavily dependent on Iranian oil, could be a stumbling block"
Russia: New sanctions against Iran too stifling
"A military attack on Iran would trigger a 'chain reaction' that destabilizes the world, while new sanctions against Tehran would 'stifle' the Iranian economy and hurt its people, Russia's foreign minister warned Wednesday."

Pentagon's Ex-Mideast Chief: We Might Need Nukes to Deter Iran

Israel Says Decision on Iran Attack 'Far Off'

Israeli Army Says Nuclear Iran Would Hinder Military Aggression in Gaza, Lebanon

NATO urges Iran to ensure security of oil supply
"NATO urged Iran on Wednesday to ensure the security of energy supplies through the Strait of Hormuz but said the Western military alliance had no plans to intervene in the area."

Russia vows to block Western intervention in Syria
"Syria's powerful allies in Russia vowed Wednesday to block any Western attempts to intervene militarily in Syria as Damascus fights off an increasingly chaotic 10-month-old revolt against President Bashar Assad."

Rocket hits Turkish embassy in Iraq

Russia boosts military aid to Kyrgyzstan
"Russia has started to send extra military aid to Kyrgyzstan to help bolster security along the Central Asian state's borders before NATO withdraws from Afghanistan in 2014."
Anti-Islamic groups across Europe to attend far-Right rally
"Far-right anti-Islamic groups from across Europe are planning to rally in Denmark, for what organisers have billed as the birth of a European movement."

Russia Allocates Funds for Drone/UAV Development for Military and Police
Situation Deteriorates, Pakistan Tells US Envoy to Stay Away

## Global unrest/mob rule/angry people/torches and pitchforks ##
Wakiso, Kampala residents demonstrate over load-shedding (Uganda)

Strike against electricity, gas load shedding (Pakistan)

Power cuts lead to outrage and protests in south, Beirut (Lebanon)

Occupy D.C. has a plan: To stay in the public's face

Budget rally in Toronto turns ugly; activists clash with police
Occupy London campers told to leave cathedral

One Killed, 7 Wounded In Protest Against Power Shortage In Guinea

## Energy/resources ##

Major Oil Refinery to Close in U.S. Virgin Islands
China, Saudi Arabia and the new oil alliance

'Red alert' in Mindanao amid power blackouts (Philippines)
"MINDANAO is now on 'red alert' due to a power shortage, while Luzon will need more power generators in the next three years as a result of rising demand and the increasing population, Energy Secretary Jose Almendras said Tuesday.
"He said Mindanao's power reserves dropped to zero on Tuesday, when the peak demand reached 1,236 megawatts but the available supply reached only 1,215 megawatts."

Shivering S. Koreans Battle 'Big Chill' in Offices

"'It's freezing!' complained chef Byun Sang-Won, jogging on the spot with arms folded and teeth clenched as he tried to keep warm inside the luxury Seoul hotel where he works.

"'I can't even imagine working without wearing extra underwear and hot packs because it's too cold in the kitchen and hallways,' the 26-year-old said."

Energy minister warns of further electricity cuts (Lebanon)

North Dakota Drillers Need More Fracking Crews, State Says

Uganda government ends power subsidies

Obama administration rejects Keystone oil pipeline

Canada Pledges to Sell Oil to Asia After Obama Keystone Denial

Why Wind Power Doesn't Live up to its Environmental Promises

S. Korea promised stable oil supply
"Oman and the United Arab Emirates assured South Korea of a stable crude oil supply as Seoul considers cutting imports from Iran, officials said Wednesday."
Basking in the Sun

## Infrastructure scavenging ##
South West Trains delayed after cable theft (UK)
Thieves casing abandoned buildings for scrap metals (US)

"'It's getting to the point that the thefts are so overwhelming,' he said. '[Thieves] are starting to target closed-down buildings now.'...

"But Forgione said thieves now are targeting shuttered restaurants for their steel — which can net them several thousand dollars from one establishment."

## Got food? ##
Iraq Plans to Raise Wheat Output by 74% to 3 Million Tons

One Acre Feeds a Person

## Environment/health ##
Bulgaria Bans Fracking Following Public Protests

Problems plague cleanup at Hanford nuclear waste site

America's new dumping ground (CNN Money video)

Where does all that fracking wastewater go? Find out here. -- RF

## Intelligence/security/internet/systemic breakdown ##
A Huge Crowd Just Mobbed The New York Senators' Offices To Protest SOPA

Ten Prominent Websites Protesting SOPA and PIPA

Sunk! How Hollywood Lost the PR Battle Over SOPA (Reuters)
Abu Dhabi bourse denies tit-for-tat hacker attack

"Abu Dhabi Securities Exchange (ADX) and the Saudi Stock Exchange (Tadawul) on Wednesday both denied claims by Israeli hackers that their websites had been attacked.

"Cyber-criminals claiming to be Israelis said they had brought down the sites of both the Tadawul and ADX in a retaliatory strike, days after a Saudi hacker attacked the Tel Aviv bourse."
Chinese Virus Targets DoD Common Access Card
"A Chinese-based cyber attack is targeting the U.S. Defense Department's Common Access Cards with technology that could steal information from military networks while troops and civilians work at their desks, researchers say."

## Japan ##

Electricity goes out at nuke plants
"Power transmission problems temporarily halted cooling systems for spent nuclear fuel facilities at both the Fukushima No. 1 and No. 2 nuclear plants Tuesday afternoon, as well as nitrogen injections into the wrecked No. 1 plant's crippled reactors, Tokyo Electric Power Co. said."

Lack of backup systems evident at Fukushima nuclear plants
Japan To Allow Reactors To Operate Up To 60 Years

A new definition of insanity. -- RF

Radioactive gravel finds way to school

Japan Finance Minister Nation Not Immune to Europe-Style Crisis

Companies balk at TEPCO's 17% rate hike

Weak euro puts exporters in 'critical situation'

## China ##
China Brings US Treasury Holdings To One Year Low, Russia Cuts Treasury Exposure By 50% In One Year
China Said to Consider Relaxing Capital Rules for Banks as Economy Falters

China's housing slowdown to cut a big hole in GDP growth

China's Real Estate Bubble Shrinks, Looks Like U.S. in 2007

## UK ##
UK faces request for £19bn as IMF boosts bailout fund to $1tn

UK unemployment increases by 118,000 to 2.69m
Lloyds Banking Group to cut 700 jobs

## US ##
Investigation of Aging U.S. Nuclear Power Plants Reveals Some Scary Truths
One million homeowners may get mortgage writedowns: U.S.

"About one million American homeowners would get writedowns in the size of their mortgages under a proposed deal with banks over shady foreclosure practices, Housing and Urban Development Secretary Shaun Donovan said on Wednesday."

Goldman Shifts to Tracking Costs as Profit Falls

"Goldman Sachs Group Inc., facing declining revenue because of a global slump in capital-markets activities, has turned its focus to controlling expenses and managing the size of its various divisions."

Cities brace for bad news in Obama's next federal budget, top mayor says

"Los Angeles Mayor Antonio Villaraigosa, president of the US Conference of Mayors, says 'bad news is coming' for the nation's cities in the federal budget the Obama administration is preparing to release in early February."

Third World-Style Economies Proliferate

"With poverty on the rise and millions of unemployed and underemployed people still scratching by in urban and rural areas of the US, the potential for expansion of the informal sector is enormous."

Local currencies: 'In the U.S. we don't trust'

Detroit teeters on the brink despite autos comeback

Harvard Study Says US Competitiveness Will Decline

And finally... Iranian company wants to send toy drone to Obama

News Links, January 18, 2011

2012-01-17T17:17:00.000-08:00

## Global economic meltdown ##
Eastern Europe May Need Funding Deal to Cushion Effect of Bank Asset Cuts
"Eastern Europe may require funds from the International Monetary Fund and other international lenders to pre-empt a banking crisis and a shortage of credit in the region's economies as western banks pare assets."

Prepare for a Meeting of "Monetary Cardinals" as Euro End-Game Nears; Sarkozy Falling Apart; "Hope Trade" in Extreme Overvaluation

Baltic Dry Index Slumps To Lowest Since January 2009

$10 TRILLION Liquidity Injection Coming? Credit Suisse Hunkers Down Ahead Of The European Endgame

Fitch Says Greece to Default, Believes Will Be Orderly

Britain's leading indicators down again

Analysis: Nigeria strife highlights Africa investment risks
South America Boom Backfiring With Complacency From Commodities

Global Gold Coin & Bar Demand Surges in 2011 - Thomson Reuters GFMS Annual Gold Survey

Decentralization Is The Only Plausible Economic Solution Left

## Fault lines/flashpoints/military/war drums ##
Explosive Words - US Media First to Bomb Iran (RT video; on how the US media beat the war drums)

U.N. nuclear monitors to visit Iran late Jan: report
"Senior U.N. nuclear officials will visit Iran on January 29-31, the Islamic state's envoy to the International Atomic Energy Agency (IAEA) said on Tuesday."

Korea, U.S. Continue Talks on Iran Sanctions

"South Korea said it will continue bilateral discussions with the U.S. to find an acceptable compromise on sanctions against Iran's crude-oil exports, as the resource-poor country attempts to safeguard its energy security without alienating its key ally and trade partner."

Iraq militia says to keep weapons, citing instability
"A Shi'ite militia that fought U.S. troops in Iraq said Tuesday it will not lay down its arms immediately despite the departure of American forces.
"Abu Mustafa al-Khazali, one of the commanders of Kata'ib Hizballah, cited unstable Iraqi politics and uncertainty about the mission and size of the U.S. embassy in Baghdad as reasons for maintaining its war posture."

Why Russia is planning Iran war games
"Russia has reportedly ordered the military to plan war games to deal with potential spillover from a US-Iran conflict."

Obama: Syria violence unacceptable, government must leave

Bashar al-Assad to be driven from power within three months, says Syrian MP

North Korea's leader will not last long, says Kim Jong-un's brother

Sweden Proposes Common Nordic Air Space

Israeli Military Prepares for Massive Gaza Invasion 'Within Months'

## Global unrest/mob rule/angry people/torches and pitchforks ##
'Occupy Congress' Protesters Swarm Capitol Hill To Represent The 99 Percent

Peace protesters avoid Parliament Square clearance (UK)

"The decade-long ambition of police and local officials to clear peace protesters from the area opposite the Houses of Parliament has remained unrealised, with an expanse of tents, placards and other structures still resolutely in place despite a night-time clearance operation."

Greek strikes greet debt inspectors

"Strikes and demonstrations over government cuts hit Athens today as international debt inspectors returned to continue examining the reforms."

Romanians Protest Hard Living Conditions after Entering European Union

## Energy/resources ##

Fuel shortage worsens as motorists queue for several days (Malawi)
"The fuel shortage crisis in Malawi worsened from last week with motorists queuing on dry pumps for days, an indication that there is no near solution to the crisis despite government's repeated promises to solve the problem."
Illegal fuel vending escalates (Malawi)

"Illegal fuel vendors are now plying their trade freely as the country continues to experience petroleum shortages, with most filling stations remaining dry for weeks."

Govt. urged to seek waiver on sanctions to get oil from Iran (Sri Lanka)

Oil Rises to Three-Day High as Saudi Arabia Is Seen Targeting $100 Crude

Petrol pumps dry up after prices are cut (Kenya)

Fuel shortage fears as refinery shuts (South Africa)
"South Africa's recent fuel supply problems could reoccur as the country's largest refinery, Sapref in Durban, has gone into full shutdown for unplanned repairs. It is expected to only be back in full production by mid-February."

Finance Ministry building in dark ages (Lebanon)

"It is hard to imagine how ordinary people cope with the relentless power cuts every day. But it is even harder to contemplate a vital government building experiencing three hours of electricity rationing. But such a situation is exactly what taxpayers, bearing invoices and documents, encounter when they flock to the Finance Ministry's revenue department on Beshara Khoury street only to find out that there is no electricity in the building."

Power cuts hit Istanbul, 6 Turkish provinces

Russia Drives Final Stake Through the Heart of the Nabucco Pipeline?

Electricity Declines 50% as Shale Spurs Natural Gas Glut: Energy

Uzbekistan's power crisis - why is there no heat and light?
"The majority of Uzbekistan's population are having a tough time this winter as the country's energy supply problems go from bad to worse. Unplanned power cuts and lengthy rolling blackouts have become everyday occurrences in almost every Uzbek neighbourhood."

Running on empty: Egypt's fuel crisis rumbles on
China 2011 Electric Power Output Growth Drops as Economy Slows

## Got food? ##
Russia expanding land under plow this year
Ethiopia forcing thousands off land to make room for Saudi and Indian investors
"Ethiopia is forcing tens of thousands of its poorest people off fertile land earmarked for Saudi Arabian and Indian investors and into villages lacking schools, clinics or clean water, a new report has claimed."

## Environment/health ##
Americans as fat as ever. Obesity rate stuck, CDC finds

Garbage piles up in 'green' Mexico City
Drought goes on in U.S. South

Eco-friendly car refrigerant 'turns into deadly gas it vehicle catches fire'

Commentary: Fracking gives me gas

## Intelligence/security/internet/systemic breakdown ##

Cyberspat Erupts As Iran-Azerbaijan Relations Become Increasingly Strained
Wikipedia joins web blackout in Sopa protest

OpenDNS To Participate in Anti-SOPA Protests

Returning to Simplicity (Whether We Want to or Not) (Gregor Macdonald at Chris Martenson)
"What has begun to take place in global energy extraction is that the current tranche of resources obtained by more complex methods -- deepwater drilling, underground fracturing, in-situ mining, and other strip mining -- have begun to move towards the quadrant of Perrow's chart that is occupied by nuclear power and chemical plants. Here, systems are both technically advanced and tightly coupled, which is to say that failures anywhere in their operations can spread easily and cause systemic failure."

A good read. -- RF

## Japan ##
Tepco pushes April 1 17% business rate rise

Japan Continues To Buy EFSF Debt Despite S&P Downgrade

Building contamination spreads / Radioactive materials used to repair road and waterway in Fukushima

72% of graduating univ. students have job offers, 2nd worst on record

Ministry plans to enable real estate securitization

## China ##
Landmark shift: Majority of Chinese now live in cities
"Supply of cheap labor from rural to urban areas is dwindling, leading to speculation that wages will start to surge"

China Casts Increasingly Large Investment Shadow Over Southeast Asian Neighbors

China Construction Starts Slowed in 2011

"Growth in new construction starts in China last year decelerated sharply compared with a year earlier, another sign of distress in the country's real-estate sector amid the government's reluctance to relax its two-year-long sector-tightening campaign."

## UK ##
UK 'planning for eurozone collapse'

"The Government is undertaking "extensive contingency planning" in the event of a eurozone collapse, peers have been told."

MoD announces details of 4,200 job cuts

## US ##

Many Americans gave up hope last year – 2012 will be worse
"The chance of realising the American dream is receding for millions as jobs are lost, savings run out and houses are repossessed"
Treasury dips into pension funds to avoid debt
"The Treasury on Tuesday started dipping into federal pension funds in order to give the Obama administration more credit to pay government bills."

Americans keeping their autos longer than ever

Americans raid savings, putting recovery at risk

Strategic foreclosure: Why people are ditching their mortgages

Christie Calls for 10% Income-Tax Cut for N.J.

News Links, January 17, 2011

2012-01-16T17:15:00.000-08:00

## Global economic meltdown ##
Eurozone Bailout Downgraded By S&P To AA+

Portugal Downgraded to Junk; Bond Yields Soar; Record Spread vs. Germany; Portugal to Follow Greece Into Default Abyss

Portugal's grey economy grows amid austerity: study
"Portugal's grey economy expanded to a quarter of GDP in 2010, denying the debt-ridden country much-needed tax revenues, and probably grew further last year as Lisbon raised taxes, a study showed on Monday."

Germany rejects rescue fund boost, Greece under pressure

"Germany, the only major euro zone member to retain a top-notch credit rating, refused on Monday to consider boosting the bloc's rescue fund, while Greece was under pressure to urgently break a deadlock in debt swap talks if it is to avoid an unruly default."

Greeks Worry Over A Possible Return To The Drachma

Greece Dispatches Officials to US Over Default Fears; Senior S&P Official Expects Default Soon; Greek One-Year Bond Yield Touches 415%; Ducks Lined Up for Merkel Orchestrated Default

Clearing Houses: The Next Casualty of the Crisis?

"'What happens if they go bust? I can tell you the simple answer: mayhem. As bad as, conceivably worse than, the failure of large and complex banks,' Paul Tucker, deputy governor of the Bank of England, said in October."

Has The ECB Given Up On Portugal?

Ireland Continues to Fall Apart
"Ireland's economic problems have been largely forgotten as concerns about a financial collapse of Italy and Spain have taken the spotlight. That likely will change now. Research firm Davy has significantly cut its 2012 GDP forecast for Ireland to 0.4% from a previous number of 1.7%. Ireland's national economy has worsened as much as those of the most troubled eurozone economies."

Sarkozy: Europe facing 'unprecedented crisis'

Majority of Italians No Longer Trust the Euro: Poll

Central Bank of Chile Unexpectedly Cuts Interest Rate to 5% on Slowdown in Domestic, Global Growth
China a Harbinger for Global Slowdown

UN Carbon Credit Futures Drop to Record on Worries Over Greece

Dubai World unit mulls sale of UK asset as debts loom

## Fault lines/flashpoints/military/war drums ##
Flexing muscle, Iraq detains US contractors in Baghdad

Nigeria unions suspend strike after fuel price cut

"Nigerian trade unions called off strikes and protests on Monday, ending a major confrontation over fuel prices after President Goodluck Jonathan said he would cut them by one third."

Questions Surround Leadership in Pyongyang

Saudi Arabia, China to enhance relations

Syria suffers series of embarrassing defections
"The Syrian regime of President Bashar al-Assad has suffered a series of defections, handing the opposition a propaganda coup amid growing demands for international intervention."

Syrian legislators join anti-Assad uprising
"Two members of parliament flee and declare support for opposition as activists report more deaths across country."

Qatari Emir Pushes for Attack on Syria
"With the Arab League's monitoring mission continuing in Syria, Qatari Emir Hamad bin Khalifa al-Thani took the unprecedented step of urging the Arab League to organize a military attack against Syria."

Iran Studying 'Hormuz Letter,' Warns Gulf Producers

## Global unrest/mob rule/angry people/torches and pitchforks ##
Protests in Hungary, Romania

Romanian PM warns protesters on fifth day

Thousands of workers protest at Sanyo's China plant
"Thousands of Chinese workers protesting over compensation and job security at a Sanyo Electric Co Ltd plant clashed with police in southern Shenzhen, media said on Monday, the latest outbreak of labor unrest in China's manufacturing hub."

Protesters ready igloos to Occupy Davos

"Occupy protesters with their sights set on the World Economic Forum, the annual gathering next week of the rich and powerful in the Swiss ski resort of Davos, unveiled their igloo accommodation on Monday."

At least one killed in Guinea riots over power outage
"At least one person was killed during riots in a bauxite mining town in Guinea on Monday over power outages, witnesses said."

Crises, protests precede revolution anniversary (Egypt)

## Energy/resources ##

Fuel shortage in Egypt leads to rising tensions
"A gasoline shortage in Egypt has led to long queues at fuel stations and raised suspicions among drivers that it may be a prelude to a cut in subsidies, despite official reassurances that there is no plan to hike prices."
South Korea seeks to limit damage from US sanction on Iran oil
"As the US pressure increases on it allies to ban their Crude Oil imports from Iran, South Korea is reported to be in intense conversation with the US authorities to provide itself certain concessions with regard to the imports."

Obama Administration Finds Few Asian Takers for Oil Sanctions Against Iran

Sofia debates shale gas after protests

Gas Bears Up Bets on 'Catastrophic' Surplus
"Hedge funds turned bearish on U.S. natural gas for the first time in eight weeks as a surplus and warmer-than-normal weather pushed the price of the heating fuel to the lowest level in more than two years.
"The funds and other large speculators switched from bets that futures will rise to a bearish, or 'short,' position of a net 10,344 futures equivalents in the week ended Jan. 10, according to the Commodity Futures Trading Commission's Commitments of Traders report on Jan. 13."
Dubai residents suffer as district cooling bills jump

Norway sees oil output down, gas up

OPEC: worsening euro zone crisis would hit oil demand

## Infrastructure scavenging ##
Thieves targeting street lights cost San Jose thousands in repairs
"San Jose officials have asked for the public's help in thwarting thieves, who have stolen copper wire from 197 street lights in the past year and a half, incurring $164,000 in damage.

## Environment/health ##
India reports new strain of 'totally drug-resistant tuberculosis'
Cornell Study Links Fracking Wastewater with Mortality in Farm Animals

## Intelligence/security/internet/systemic breakdown ##
Israel hit by cyber-attacks on stock exchange, airline and banks

"Hackers disrupted online access to the Tel Aviv stock exchange, El Al airlines and three banks on Monday, in what the government described as a cyber-offensive against Israel.

"The attacks came just days after an unidentified hacker, proclaiming Palestinian sympathies, posted the details of thousands of Israeli credit card holders and other personal information on the internet in a mass theft."

Wikipedia, Reddit plan blackout in SOPA protest
Zappos hacked, 24 million accounts accessed

## Japan ##

Economists Cut FY12 Growth Forecast To 1.89%
"The real economy is projected to grow 1.89% next fiscal year, according to a January survey of economists, a downgrade of 13 basis points from December."

BOJ lowers assessments on 7 of 9 regional economies

Japan to name islands in disputed area
"Japan has decided to name several uninhabited islands in a group that is also claimed by China and Taiwan, a move likely to anger the Asian neighbors."
New condo's foundation radioactive
"Quarry sourced crushed stones from hot-zone city of Namie"

## China ##
Lagging new capacity to strain China power supply this yr - report
"China's new installed power generation capacity this year will be the least since 2006, straining electricity supplies with power consumption expected to grow by about 9 percent, China Energy News reported on Monday."

## UK ##
UK in recession says Item Club economic forecasters

'Democracy village' removed from Parliament Square
U.K.: No public funding for new royal yacht

## US ##
Sturgeon Bay: Some streetlights to go dark by the end of January
Americans honor MLK with service — and more protests

"Americans honored Martin Luther King Jr. on Monday with a traditional day of service as well as a new wave of economic injustice protests by Occupy Wall Street."

Economy: Why the 'good' news isn't

Ripe For The Picking: Time to Short Muni Bonds?
Gas prices may get close to $5 in some spots

The new Sharing Economy: Is it legal? (video)

Drop in Public Workers Digs a Deeper Jobs Hole
Retail Sales Growth Begins to Falter
California Launches Task Force to Dismantle the Underground Economy

News Links, January 16, 2012

2012-01-15T17:12:00.000-08:00

## Global economic meltdown ##
Greece Says Debt Talks Will Resume

The Staggering Cost Of Youth Unemployment Across Europe
"Let the Euro Die" Candidate Trails Sarkozy by Slight 2 Percentage Points; Will Sarkozy Survive the First Round Vote? Eurozone About to Become Unglued (Mish)

Is German Anger Finally Coming To A Boil? Even Local CEOs Say Time To Exit Euro May Have Arrived

Iran oil boycott menaces world economy

Exodus of Workers From Continent Reverses Old Patterns

Italy Ship Disaster Could Hit Cruise Industry

Euro Hits Fresh 11-Year Low Of Y97.17 In Oceanian Market

## Fault lines/flashpoints/military/war drums ##

U.S., Israel Postpone Joint Missile Exercises
UK seeks Saudi Arabia support to attack Iran? (RT video)

Beating the Drums of War: Provoking Iran into "Firing the First Shot"? (Michel Chossudovsky)

Iran could face UK military action over nuclear programme, says Hague

Iran warns of consequences if Arabs back oil sanctions

"Iran warned Gulf Arab neighbors on Sunday they would suffer consequences if they raised oil output to replace Iranian crude facing an international ban."

China angry at US sanctions on oil firm Zhuhai Zhenrong
"China has criticised sanctions imposed by the US on a Chinese firm for selling refined petroleum products to Iran."

Europe set to announce ban on Iranian oil, William Hague says
"Europe will agree sanctions banning the purchase of oil from Iran by the end of the month, William Hague, the foreign secretary, said on Sunday as Saudi Arabia promised it could boost output to make up the shortfall."

The U.S. Government Funded the Iranian Terrorist Group Which "Found" The Documents Upon Which the Warmongers Are Relying

The Navy Is Depending on Dolphins to Keep the Strait of Hormuz Open

U.S. army chief heads to Israel as fears over attack on Iran mount

Appeasement Arrives: Joint US-Israel Exercise Postponed For "Budget Reasons", US Will Not Enforce No Fly Zone Over Syria

World Map of All Wars and Conflicts Happening In 2012
Syria offers second amnesty to anti-regime protesters

Suicide bombers target police in Iraqi city

Nigeria Oil Shutdown 'Last Resort' as Strike Enters Second Week

Chinese vessel attacked on Mekong River

## Global unrest/mob rule/angry people/torches and pitchforks ##
Police fire tear gas at protesters in Romania

"Romanian police fired tear gas and clashed with protesters during an anti-government rally, the third consecutive day of demonstrations against austerity cuts and falling living standards."

Italian police, protesters clash in St Peter's Sq
"Protesters unhappy about the Vatican's wealth clashed with police in St. Peter's Square, with one of the demonstrators scaling the towering Christmas tree."

Tibetan's suicide triggers fresh clashes in China
"Security troops clashed with Tibetans in southwestern China on Saturday after the latest in a series of self-immolations that have come with growing resentment of Beijing's grip on the region, two overseas advocacy groups said."

Tibetan protesters fired at in China, one dead

Occupy takes it to the top of Wells Fargo

## Energy/resources ##
Water Risk in Supply Chains Draws Investor Scrutiny
"Jonas Kron is worried about water. The investment adviser at Trillium Asset Management, a $900 million fund manager that focuses on environmentally sustainable investment, fears the world's dwindling supply of fresh water is hurting the companies he has invested in."

Dubai's power capacity grows by 18% in 2011

"The UAE is one of the highest per capita consumers of water and electricity in the world."
Nigerian talks fail to reach deal, but oil shutdown on hold

Saudi, Chinese oil giants ink joint refinery deal

Statoil 'may exit West Qurna 2'
"Statoil reportedly may be looking to dispose of its stake in the West Qurna 2 field development project in Iraq as security in the country deteriorates following the withdrawal of US forces amid escalating political tensions."

Geopolitics heat up; oil price premium settles in
"Flare-ups in geopolitical hot spots such as Iran are nothing new to the oil markets, so commonplace for the market that there may actually be a 'permanent premium' built into the price."

Diesel thirst fueling exports, pressuring prices (US)

MoF's inability to provide funds leads to massive power loadshedding (Pakistan)

Kashmir freezing, desolate, bereft of hope & supplies
"For the seventh day in a row, people of Srinagar suffered sub-zero temperatures, and faced extreme shortage of essential commodities. Water sources have dried up and people are forced to melt snow to meet their needs."

Immediate prospects for Philadelphia's oil refineries are dim (US)
LUKoil Ups Reserves, Cuts Output, Refining
Aramco aims to lift refining capacity to 8 mln bpd

PM to talk gas, coal shortage with power firms on Jan 18 (India)

## Infrastructure scavenging ##
Copper Thieves Battled With New Anti-theft Telecom Cable

"CommScope claims that copper theft in costs U.S. companies $60 million a year."

## Environment/health ##
Danger! Nuclear waste! Keep out — forever!
Unlocking the Secrets Behind Hydraulic Fracturing

"Starting Feb. 1, drilling operators in Texas will have to report many of the chemicals used in the process known as hydraulic fracturing. Environmentalists and landowners are looking forward to learning what acids, hydroxides and other materials have gone into a given well.

"But a less-publicized part of the new regulation is what some experts are most interested in: the mandatory disclosure of the amount of water needed to 'frack' each well. Experts call this an invaluable tool as they evaluate how fracking affects water supplies in the drought-prone state."

After Earthquakes, Ohio City Questions Future Fracking Wells

## Intelligence/security/internet/systemic breakdown ##
Scared by street dogs, residents use cars to go to Parks for morning walks (India)

## Japan ##

Japanese Investors Pull Back From Euro-Zone Bonds
Japan's Prime Minister Seeks Doubling National Sales Tax; S&P Downgrade of Japan Likely; No Winning Play for Japan (Mish)

Radioactive cesium detected in condo in city in Fukushima

FinMin Azumi worried about Japan's debt rating after EU downgrades

Disaster left cities in limbo: mayors

Electronics giants turn to smart cities / Companies aim to build eco-friendly, energy-efficient communities

Technocratic wet dream. -- RF

## China ##
China Growth May Slow to 10-Quarter Low

Beijing home prices drop 11 pct

## UK ##
Health chiefs prepare campaign to prevent epidemic during Olympics

"Measures already in place include what organisers call the biggest health surveillance system in the world – covering everything from UK advice lines to hospital intensive care units – to alert medics to the first signs of unusual illness."

Operation Trident to spearhead attack on teenage gangs

Which? warns of energy smart meter 'fiasco'
"The scheme to install new energy meters in every home in the UK should be halted because of spiralling costs, a consumer campaign group has warned."

## US ##
Record number of Americans 55 and older are working
10 reasons the U.S. is no longer the land of the free (Washington Post!)

News Links, January 15, 2011

2012-01-14T16:50:00.000-08:00

## Global economic meltdown ##
German Five-, 30-Year Yields Drop to Records on Europe Crisis

Merkel vows faster eurozone reform after S&P downgrades

Der Verkauf Ist Verboten - Germany Considers Ban On Sovereign Bond Sales

Merkel Wants Higher Taxes, Deeper Cuts, Faster Reforms; S&P Says Eurozone Policies Fall Short , France at Risk of Further Downgrades

Q4 Spanish Unemployment Soars By Most Since Lehman, Hits "Astronomical" 23.3%

Economic 'winter' threatens Tunisia's spring

Tyler Durden and Paul Krugman agree! – The EU is toast!

## Fault lines/flashpoints/military/war drums ##

Russia: Attack on Iran a 'Direct Threat to Our Security'
"Speaking today at a press conference in Brussels, outgoing Russian Ambassador to NATO Dmitry Rogozin warned against a NATO attack on Iran, saying that Russia would view any military attacks as a 'direct threat to our security.'"
US 'concerned' over possible Israel strike on Iran
"The US government is concerned that Israel is preparing to take military action against Iran over US objections, and has stepped up contingency planning to safeguard US facilities in the region, The Wall Street Journal reported."

Iran says it has evidence U.S. behind scientist's killing

Iran sends rare letter to U.S. over killed scientist

ElBaradei pulls out of Egypt presidency race
"Mohamed ElBaradei pulled out of the race for the Egyptian presidency on Saturday, saying 'the previous regime' was still running the country which has been without a head of state since Hosni Mubarak was deposed last year."

Suicide bomber kills 15 in attack on Iraqi Shi'ite pilgrims

US holds highest contacts so far with Egypt's Muslim Brotherhood, shunned when Mubarak ruled

Qatar's emir suggests sending troops to Syria
'Dangerous Cargo' Ship Arrives in Syria: Source
"A Russian ship suspected of carrying munitions for Damascus arrived in the Syrian port of Tartus on "Jan. 11 or 12," shipping expert Mikhail Voitenko said."

## Global unrest/mob rule/angry people/torches and pitchforks ##
2,000 protest against nuclear power in Yokohama

Nigeria megacity shows signs of strain amid strike

## Energy/resources ##

Nigeria labor says no agreement to end fuel strike
"Nigeria's government and labor unions failed Saturday night to end a paralyzing nationwide strike over high gasoline costs, potentially sparking an oil production shutdown in a nation vital to U.S. oil supplies."

Saudis have 2.5m barrels spare oil capacity, PFC says
Saudi oil output 'stretched to the limit'
EU May Impose Sanctions In Stages To Iran Oil Embargo: French Minister
"When Europe imposes an embargo on Iranian oil imports, some nations in the region may be granted extra time to find alternative supplies, France's minister of foreign and European affairs, Alain Juppe, said in an interview with The Nikkei on Friday."

China Rivals Global Leaders for Oil Shipments: Chart of the Day

Coal shortage forces DVC to go slow on capacity expansion (India)

Why biofuels are not a good idea

"The efficiency of photosynthesis is low and the result is that the areas needed for cultivation are large. If we are thinking of amounts of biofuels comparable to the present needs for transportation, the task is simply unthinkable: there would be no space left for food production."

Weak Coal Demand Driving Fear
"US coal miner Patriot Coal Corp. (NYSE: PCX) said this morning that it was closing three of its contractor-operated coal mines and two production units in West Virginia 'in response to weaker market demand for metallurgical coal.'"

## Infrastructure scavenging ##
Police seize 1,000 beer kegs in London
"About 1,000 beer kegs worth more than £100,000 have been seized by police tackling metal thieves."

## Got food? ##
Are You Growing Any Food Indoors This Winter?

## Environment/health ##
Cancer drug shortage (Australia)

## Intelligence/security/internet/systemic breakdown ##
Decision on expanding cyber defense pilot due in March

Rep. Smith Waters Down SOPA, DNS Redirects Out

The White House Comes Out Against SOPA

## Japan ##
Noda Says Japan Must Heed Lessons of Europe Credit Downgrades

IMHO, it's already far too late. I've strapped myself in for a rough ride. -- RF

Japan to Continue Dialogue With Iran

"Prime Minister Yoshihiko Noda said Saturday that Japan will continue its dialogue with Iran despite increasing pressure to join sanctions proposed by the U.S. and Europe, saying its ties with Iran go beyond oil imports."

Spike in oil prices loom due to Iran sanctions

First contingent of GSDF engineers leave for South Sudan

Anti-nuke energy conference starts in Yokohama

All 3 nuclear reactors in Shikoku suspended
"Operations at all three nuclear reactors in Shikoku have been suspended as the last one was stopped for a regular inspection on Jan. 13."

JAXA to get national security role; NASA password leaked
"A government panel on space program strategy plans to revise a law to allow the Japan Aerospace Exploration Agency to step outside its current commitment to peaceful projects and become involved in the use of space for national security."

## China ##
China Pledges to Stabilize Imports, Exports as Global Trade Growth Slows
"China will take measure to stabilize its exports and imports as slowing global growth creates a 'grim situation' for trade, said Zhang Xiaoqiang, a vice chairman at the nation's top economic planning agency."
Growth in new cars sales in China running near empty

## UK ##
Cameron urges Saudis to turn on the oil taps

Tax revenues in Britain hit records

"Income tax revenues reached a peak, as Britain has increased various tax rates to make up for falling revenues during the recession."

## US ##
Made in America: Trend against outsourcing brings jobs back from China

News Links, January 14, 2011

2012-01-13T17:13:00.000-08:00

## Global economic meltdown ##
Experts predict German recession in 2012

Mass S&P downgrade as Greek debt impasse hit euro zone

"Standard & Poor's downgraded the credit ratings of nine euro zone countries, stripping France and Austria of their coveted triple-A status but not EU paymaster Germany, in a Black Friday 13th for the troubled single currency area."

Greek Debt Talks Halted, Appear Close to Collapse

Greek 1-Year Bond Yield Tops 408 Percent; Hard Default Appears Imminent

Eurozone thrown into new crisis as France loses AAA credit rating

Most Europe, US Ratings Should Be Lower: Faber

Fitch warns of 'cataclysmic' euro collapse
"The European Central Bank should ramp up its buying of troubled euro zone debt to support Italy and prevent a 'cataclysmic' collapse of the euro, David Riley, the head of sovereign ratings for Fitch, has warned."

Everyone Hates The Euro - EUR Shorts Hit New Record High
ECB Says Credit Crunch Averted; Yet ECB Overnight Deposits Again Hit Record High; Skyrocketing ECB Balance Sheet

Eurozone Industrial Output Falls For Third Month

Prime Office Rent in Rio de Janeiro is More Expensive Than in Manhattan

Canadian mortgage rate hits record low

22 Signs That We Are On The Verge Of A Devastating Global Recession
Nakheel may need state pledge to raise new debt

"Nakheel, the Dubai developer that wrote down $21bn of its assets, may struggle to raise debt without a state pledge to back its first fundraising since the emirate's property crash, analysts say."

Much of the global economy remains underground: It's hidden, massive and lucrative

Weaker Europe starts to lose appetite for US goods

Mobius Says Nigeria Strike May Cause Substantial Corrections

## Fault lines/flashpoints/military/war drums ##

Cameron warns Iran not to shut the Strait of Hormuz

U.S. warns Iran ayatollah on strait threat
Pentagon downplays reports of Mideast buildup
"The Pentagon said on Friday that Iran's 'destabilizing behavior' was a factor in its planning in the Middle East but sought to discourage speculation the U.S. military was quietly building up forces in the region to counter any perceived threat."

US stations 15,000 troops in Kuwait

Russian Ship Heads to Syria with Weapons: Report

Syria tanks and troops 'enter protest town, Zabadani'

INTERVIEW-Syria's army weakened by growing desertions

Somali pirates struggle against international crackdown

In the future, pirates will rule lawless seas. -- RF

U.S. warns of possible "terrorist" attack on Bangkok

Brotherhood claim 46 percent of Egypt parliament

US to exchange ambassadors with Burma

## Global unrest/mob rule/angry people/torches and pitchforks ##
Nigeria workers stage 5th day of strikes, talks pause
"Nigerian workers took to the streets for a fifth day of strikes over the lifting of a popular fuel subsidy Friday, after trade unions broke off talks with President Goodluck Jonathan and said they would not restart until Saturday."

Saudi forces clash with protesters in Qatif
"One person killed, and at least one injured, as security forces open fire after protesters attacked a police car."

OWS Prepares to Occupy Martin Luther King Jr. Day

Police disperse 'stateless' protest, dozens arrested (Kuwait)

## Energy/resources ##
Are Offshore Wind Farms a Feasible Option for the Future?

This is a must-read article and a much-needed shot of realism into all the hoopla about wind power. -- RF

Strikes hurting Nigerian oil economy

Renewables too expensive, Sofia claims

"Bulgaria remains committed to 2020 goals regarding renewable energy but at this time finds clean energy technology too costly, the prime minister said."

LUKoil's oil output falls 5.5 pct to 90.7 mln T in 2011

## Got food? ##
Black Swans, Food Shortages, and Social Unrest

But does not sufficiently treat the role of cheap oil in raising food production. -- RF

## Environment/health ##
NASA predicts massive ecological change in Canada

Warmer summers cause colder winters, scientists say
"Warmer summers in the far Northern Hemisphere are disrupting weather patterns and triggering more severe winter weather in the United States and Europe, a team of scientists say, in a finding that could improve long-range weather forecasts."

## Intelligence/security/internet/systemic breakdown ##
Homeland Security Given Green Light to Monitor American Journalists

Facial recognition: In the future, can you remain anonymous?
False Flag (Foreign Policy)
"A series of CIA memos describes how Israeli Mossad agents posed as American spies to recruit members of the terrorist organization Jundallah to fight their covert war against Iran."

## Japan ##
Fukushima Daiichi Nuclear Plant Weekly Review

Noda says no decision yet on reducing Iran oil imports

"Prime Minister Yoshihiko Noda said Friday the government has yet to decide on whether it will reduce oil imports from Iran in line with U.S. sanctions, saying businesses implications need to be considered."

Iranian oil cut a source of worry / Reestablishing ties could be hard; other supplier could seek higher prices

4,000 in Tohoku to lose jobless benefits as extensions end

TEPCO looks to become nationalized to gain taxpayer funds as expenses balloon

Long ago I said that TEPCO is a dead man walking. -- RF

Surplus plunges 85% in Nov. / Year-on-year fall to 138 billion yen marks lowest level since Jan. 2009

## China ##
Hot Money Heads for China's Exit

"A hurried exit of capital from China is flashing a warning sign for investors in the world's second-largest economy."

## UK ##
David Cameron in talks with Saudi king

Construction growth sluggish, new figures show
Child benefit cut will go ahead, says Osborne

## US ##

Fed to Weigh Further Easing Amid Doubts About Recovery
Serious debt problems will continue, experts say
"Over the past 10 to 15 years, total debt outstanding in the US has grown as a much faster pace than population, and little has been done to deal with the debt in spite of widespread unemployment, flat personal income, and declining collateral values."
Delta hikes rates, other carriers follow

"'We're still battling high fuel prices. Any kind of increase we take is specifically to combat the high cost of fuel,' said Southwest spokeswoman Katie McDonald."

Foreigners Sell Record $85 Billion In Treasurys In 6 Consecutive Weeks - Time To Get Concerned?

Navy to Maintain Focus on Middle East, Strait of Hormuz (DoD)
It's Official: Wealth Gap Has Turned America Into a Seething Pit of Class Resentment
Ponzi Scheme or Not, Social Security Can't Keep Up the Pace

And finally... The Most Outrageous Excuses for Being Late to Work

News Links, January 13, 2012

2012-01-12T17:07:00.000-08:00

## Global economic meltdown ##
Greece races to tie up writedown deal before debt repayments fall due

Hedge funds hunker down for Greek debt standoff

Dear U.S.A.: Your Account Is Overdrawn

Gold Bar Premiums In Asia Rising Again On Physical Demand

Ulster Bank axes 950 jobs

## Fault lines/flashpoints/military/war drums ##

Geithner Gets China Snub on Iranian Oil as Japan Plans Cut

EU Iran Oil Embargo Likely Delayed Six Months

"A European Union embargo on imports of Iranian (OPCRIRAN) oil will probably be delayed for six months to allow countries such as Greece, Italy and Spain to find alternative supplies, an EU official with knowledge of the talks said."

As I observed before, if it's this hard to replace Iranian oil, we are already in trouble. -- RF

China says war over Iran will bring disaster

China Gets Cheaper Iran Oil as U.S. Pays Tab for Hormuz Patrols

Brilliant! This is a real coup for the US! -- RF

Iran Hype undermined by Obama Administration Admissions

Russia opposes oil sanctions against Iran

U.S. may deal military strike at Iran - Patrushev

Adversaries of Iran Said to Be Stepping Up Covert Actions (NYT)

Thousands Of US Troops To Arrive In Israel This Week

West planning no-fly zone to aid Syrian rebels

Norway: NATO Losing Self-Defense Ability
"NATO's ability to defend member nations against aggression by a conventional enemy force may be atrophying, Norway's Defense Minister said Jan. 13."

US State Dept. Official Meets With Egypt's Muslim Brotherhood

## Global unrest/mob rule/angry people/torches and pitchforks ##
Washington Occupy protesters persevere

Day Three: Protests increasingly difficult to control (Nigeria)

Anger at squalid housing unleashes Algeria protest

Occupy Tokyo Actions Don't Get Media Coverage — Surprised?

## Energy/resources ##
Oil-rich Nigeria running on fumes

Nigerian union orders oil shutdown from Sunday
"Nigeria's main oil union said Thursday it would shut down output from Africa's biggest oil producer Sunday if the government did not reverse its decision to remove publicly popular fuel subsidies."

Saudi Arabia's Rising Domestic Oil Consumption to Threaten Exports?

Oil Climbs From 2-Week Low on Nigeria Disruptions, Iran Tension

Palace sets contingency measures in case of oil crisis
"MANILA, Philippines - Malacañang assured the public yesterday that contingency measures are in place in case fuel prices rise dramatically due to tensions in the Strait of Hormuz."
U.S. Gasoline Use Declines to Seven-Year Low, MasterCard Says

Blackout: Prolonged power outages paralyse life in Swat (Pakistan)

Industrial leaders to meet today for solution of energy crisis (Pakistan)

State in the throes of worst power crisis (India)
"In an unprecedented manner, Manipur is currently experiencing a situation of power crisis wherein the consumers could get no more than one and half hours of power supply in a day, that too erratically."

Prolonged blackouts (Botswana)

"In some cases since last Friday, the power outages have exceeded the eight-hour mark across the country as Botswana Power Corporation (BPC) tried to preserve the nationwide shortage of power."

## Got food? ##

Bumper 2011 Grain Harvest Fails to Rebuild Global Stocks
"The world's farmers produced more grain in 2011 than ever before. Estimates from the U.S. Department of Agriculture show the global grain harvest coming in at 2,295 million tonnes, up 53 million tonnes from the previous record in 2009.
"Consumption grew by 90 million tonnes over the same period to 2,280 million tonnes. Yet with global grain production actually falling short of consumption in seven of the past 12 years, stocks remain worryingly low, leaving the world vulnerable to food price shocks."
Corn export premiums firm at US Gulf Coast
"Corn export premiums at the US Gulf Coast were steady to firm on Tuesday as worries about declining production in drought-hit South America supported demand for US grain."

## Environment/health ##
List of natural disasters and extreme weather makes 2011 the worst on record

## Intelligence/security/internet/systemic breakdown ##

The Crisis of Civilization (video)
Military Networks 'Not Defensible,' Says General Who Defends Them

## Japan ##
Japan to cut Iranian oil imports under U.S. sanctions

But not right away... -- RF

Water, blankets ready for Tokyo subway commuters

43,000 move from hard-hit Tohoku prefectures

## China ##

S&P: China Bank Loss Deferral a Step Back

"China's authorities are likely to allow local banks to postpone their recognition of losses on some local-government loans, but such a move would be damaging to the sector's reputation and could result in greater losses ultimately, Standard & Poor's Ratings Services said on Thursday."

China Auto Sales Growth Lags U.S. For First Time in 14 Years
China slams survey that shows rising Hong Kong resentment

China's December inflation eases to 4.1 percent but food prices up sharply

## UK ##

No fracking in home counties, village residents tell oil company
"Cuadrilla's plan to drill test well in West Sussex leads to furious reactions at public meeting"
RBS ditches investment bank in fresh jobs cull
More power firms cut energy tariffs

"The bottom line for consumers is that these cuts will go nowhere near cancelling out the £224, or 21%, hike in prices they've seen in the last 18 months."

Barclays to axe over 400 jobs

UK Debt Infographic: All You Need To Know

## US ##

24 Statistics To Show To Anyone Who Believes That America Has A Bright Economic Future
Obama formally requests debt limit increase
Who Is Flying Unmanned Aircraft in the U.S.?
"Government Withholds Information on Drone Flight Authorizations"
Biggest financial trap of 2012: US Treasury debt (Daily Reckoning)
"US debt is becoming less valuable as Americans grow poorer and poorer"

Jobless claims have gone up
"Despite last week's good job market news, new unemployment claims increased by 24000"

Smugglers' air force? Drug war sees rise in use of ultralight planes.

Rail Traffic Plummets -9.3% To Start 2012

30-Year Mortgage Rates Fall to Record 3.89%

Vestas Threat to U.S. Jobs Adds Pressure on Congress to Extend Tax Break

Home Seizures May Jump 25% as U.S. Foreclosures Resume, RealtyTrac Says

Retail Sales Up Scant .1% in December, Core Retail Sales Decline; Chart of Retail Sales Adjusted for Population Growth and Inflation

"Considering the massive 50% off entire store sales that it took to clear merchandise in December, this may have been the last gasp of this economic 'recovery.'"

SNA: Analysts paint bleak picture of future Navy
6 things you'll pay more for in 2012

News Links, January 12, 2012

2012-01-11T17:12:00.000-08:00

## Global economic meltdown ##
Germany May Be on Brink of Recession After Economy Contracts

German steelmakers see zero output growth in 2012

German Economy Contracts in 4th Quarter; Spain's Industrial Output Plunges 7%; UK Trade Deficit Widens; European Banks Wisely Hoard Cash (Mish)

Germany May Add Money to Rescue Fund at the Start

Europe Banks Hoarding Cash Resist Draghi Bid to Avoid Crunch

Asia skyscraper building boom may be sign of impending economic collapse, warn experts

Singapore Construction Demand to Drop

"Private-sector construction demand in Singapore could fall by more than 50% this year compared with last year due to the effect of the global and domestic economic woes on the domestic property market, the government said."

Spanish Banks Try to Build Their Way Out of Home Glut

Stocks go nowhere and rumors are flying in Europe

Greek Crisis Has Pharmacists Pleading for Aspirin as Drug Supply Dries Up

"The situation is worsening day by day."

Debt Trap Looms in India on Convertible Bonds; Borrowing Costs May Quadruple for Indian Corporations

Europe's $39 Trillion Pension Threat Grows as Regional Economies Sputter

I've said it many times and I'll say it again: Kiss your pension and "retirement" goodbye. -- RF

Reinforcing the Supply Chain

"After a decade of streamlining their supply chains to make them less costly, the natural disasters and political upheavals that marked 2011 showed many multinational companies just how vulnerable those links have become."

Financial Crisis Lays Seeds of 'Dystopian Future'
"The World Economic Forum warned Wednesday that the financial crisis that has gripped the global economy for the past few years is fueling resentment that could lay the seeds for a rising tide of protectionism, nationalism and social unrest."

## Fault lines/flashpoints/military/war drums ##

Two U.S. Aircraft Carriers Near Iran, With A Third On The Way

Iran: Oh, No; Not Again (Chris Martenson)
Bomb kills Iran nuclear scientist; U.S. presses sanctions

"An Iranian nuclear scientist was killed by a bomb placed on his car on Wednesday in an attack Tehran's deputy governor blamed on Israel, raising the diplomatic temperature in a stand-off with the West over Iran's nuclear program."

Analysis: Israel uses risky "hits" in deadly shadow war
"If Mossad assassins were behind the killing of an Iranian nuclear scientist Wednesday, it would be the latest chapter in a long history of Israeli covert action against foes best not confronted with full force."

US denies killing Iran nuclear scientist with magnetic bomb

Russia worried about a nuclear Iran, but leery of US sanctions

Israeli Mossad recruiting Iranian exiles in Iraq's Kurdish region: report

U.S. launches first drone strike since deadly November attack

Second Arab monitor may quit Syria over violence

Pakistan army steps up confrontation with government

Leading Think Tank Urges Naval Buildup in South China Sea

## Global unrest/mob rule/angry people/torches and pitchforks ##
Hundreds Threaten Suicide At Microsoft Supplier Plant In China

Minna riot: Nigeria curfew in Niger state
"The Nigerian authorities have imposed a 24-hour curfew in Niger state after a crowd of youths went on the rampage, setting fire to buildings and cars."

Occupy Wall Street returns to NYC's Zuccotti Park

Syrians face more economic hardship as unrest spreads

## Energy/resources ##
Kashmir on the edge: no water, no heating, no peace

"In the midst of the worst cold wave in decades, Kashmir is freezing and pitch-dark, reeling from a severe electricity shortage."

Nonstop Flights Stop for Fuel

"Dozens of Continental Airlines flights to the East Coast from Europe have been forced to make unexpected stops in Canada and elsewhere to take on fuel after running into unusually strong headwinds over the Atlantic Ocean."

Saudi Oil Output Nearing Capacity Limit
"Top oil exporter Saudi Arabia is nearing its comfortable operational production limits and may struggle to do much to make up for shortages that arise from new sanctions imposed on Iran by the West, Gulf-based sources said."

Nigerian oil union threatens to shut down crude output

Industry to close shop on Jan 31 to protest erratic power outages (India)
"All trade and industrial establishments in Coimbatore district plan to close shop on January 31 to protest the erratic power cuts and failure of the state government to resolve the issue."

Manufacturers sound alarm over scarcity of minerals, metals
"Global manufacturers are sounding a cautious note over the scarcity of minerals and metals they need to build everything from cellphones and jet planes to cars and trucks, a new survey has found."

Fuel crisis takes toll on Dang cement factories (Nepal)
"Large scale cement factories that were planning to launch their products by Feb said fuel shortage has badly impacted their preparations, forcing them to postpone their plans. These industries have the capacity to substantially replace cement imports. Similarly, road expansion project in the district has also been affected."

Lufthansa ends aviation biofuels trials; cites fuel shortage

## Infrastructure scavenging ##
Train cable theft hits Daveyton (South Africa)
"No trains were running on the Daveyton line, on the East Rand, on Wednesday morning because of stolen overhead power cables, Metrorail Gauteng said."

## Got food? ##

If You Want More Local Food, Stop Criminalizing Family Farmers
"Food Sovereignty" law passed in small Maine town to allow sale of locally produced food without interference of regulators

Drought, shipping, storage costs raise food prices
"Higher meat prices, especially beef, are projected to drive food prices up slightly to more than a 3 percent increase in 2012, according to the U.S. Department of Agriculture.
"Because of the drought in Texas and Kansas, cattle herds are at 50-year lows and could continue to decline in numbers if dry weather hangs on into summer as most meteorologists predict."

## Environment/health ##
Interstellar Energy Cloud may be as much to Blame for Climate Change as CO2 Emissions

## Japan ##
Japan Wants to Keep Importing Iranian Crude

"Japan wants to keep importing crude oil from Iran despite rising pressure from the U.S., its key ally, to cooperate in strengthening sanctions over the Islamic Republic's uranium enrichment program.

"'We are concerned about an impact on global energy prices,' an official at Japan's Ministry of Foreign Affairs said Wednesday. 'We are also worried about how a fuel shortage might impact rebuilding' after the massive earthquake and tsunami that hit Japan in March, added the official, who asked not to be named."

Chiba Prefecture troubled by shrinking population after nuclear disaster

Machine Tool Orders In '12 May Show 1st Decline In 3 Years

## China ##
China's Wen To Visit Key Mideast Energy Powers

Be prepared for a big disappointment from China this year
China's Debt Maturity Problem Has Arrived

China's Gold Imports From Hong Kong Surge to Highest Ever? - PBOC Buying?

'Reshoring' firms head for home

## UK ##
Scots referendum row a boost for separatists: SNP

City 'to be offshore currency market for China'

## US ##
Rising Share of Americans See Conflict Between Rich and Poor
Trained marksmen will be watching NATO/G8 dignitaries, protesters
Private-Equity Payday: Carlyle Founders Get $402 Million

Debt-limit increase request 'days' away

White-Collar Workers Join Crowd Straining Food Banks

Americans Gorge on Credit Card Offers
"It would appear that the Federal Reserve's guarantee of freakishly low interest rates until at least 2013 (soon to be extended into 2014 or beyond) and the resulting push by credit card companies to clog mail boxes with all sorts or tempting offers had the desired effect on Americans as they racked up new credit card debt in November at a rate not seen since before the wheels fell of the global financial system back in early-2008."

Social Security - January 2012 and Beyond
"SS will never again see a cash surplus."
The Ponzi Debt Bubble Leaves Only Two Options

My guess is that the US government will take the second option. -- RF

Ten States That Cannot Pay Their Bills

News Links, January 11, 2012

2012-01-10T17:15:00.000-08:00

## Global economic meltdown ##
Mafia now "Italy's No.1 bank" as crisis bites: report
"Organised crime has tightened its grip on the Italian economy during the economic crisis, making the Mafia the country's biggest 'bank' and squeezing the life out of thousands of small firms, according to a report on Tuesday."

Italy Is Biggest Risk to Euro, Says Fitch

Greek Debt Deal Talks: How Much of a 'Haircut'?

Greece Bank Run Shows No Sign Of Stopping: Deposit Outflows Continue In November

With Work Scarce in Athens, Greeks Go Back to the Land

Hedge Funds Now Hold Future Of Europe Hostage

Fitch warns that many euro countries may see ratings cut by the end of this month

Car sales growth likely to be near-zero in 2012 (India)

Hungary Folds, Ready To Change Its Laws To Get European Bailout Money

The Periphery Remains in a Vicious Circle of More Austerity and Lower Growth (CNBC video)

Germany: High on jobs, low on growth
"Germany boasts a low unemployment rate, but industrial production is in a free fall"

The Faustian Bargain has Enabled an Unsustainable Economic System, but Not for Much Longer

'Nuclear winter' to cost 1000s of jobs at RBS

Ontario universities, hospitals 'in shock' after $66-million funding cut
"Research projects at universities and hospitals on everything from advanced health technologies to digital media have ground to a halt after the Ontario government pulled the plug on $66-million in funding and loan programs – and there could be more to come."

Soft drinks lose their fizz as plants shut down (Australia)

Abu Dhabi may rescue more developers after $9.8bn bailout

The return of "The Limits to Growth"

## Fault lines/flashpoints/military/war drums ##
Bomb targeting anti-Taliban militia kills 25 at Pakistan market

Syria's Assad vows "iron fist", mocks Arab League

Russian warships conclude visit to Syrian port

Israel prepares for fall of Assad, Syria refugees

EU ministers plan Iran oil embargo, IAEA team to visit

EU, Japan prepare for Iran oil embargo

US Defense Secretary Admits "Iran Not Trying to Develop Nuclear Weapon"

Hyperinflation Comes To Iran

Turkey Said to Tell India Help on Iran Oil Payments May End

Geithner Seeks Support for Iran Oil Sanctions From China; What Should China's Response Be? Shoddy Reporting by Bloomberg on Oil Story

Kenya on edge as terror attack threat looms

Pirates hijack Iranian ship in Gulf of Aden: report

Doomsday clock moved closer to midnight
Geopolitical Implications of "Peak Everything"

Blast kills 35 in Khyber agency

Report: US Likely to Resume Pakistan Drone Strikes Soon
"Attacks Killed 609 in 2011, Only Three 'Commanders'"

## Global unrest/mob rule/angry people/torches and pitchforks ##
Occupiers Target 'Mayor 1% Emanuel's' Anti-Protest Ordinance

Industrialists, citizens stage demos against power, gas loadshedding (Pakistan)

"The angry protesters set the ablazed tyres and chanted slogans against the government at the mentioned localities. Protestors blocked the defense Road for more than a couple of hours by parking tractor trollies and by forcibly closing the railway crossing present at the road."

Nigerians protest over fuel price for second day
"Tens of thousands of Nigerians took to the streets for a second day Tuesday and many more stayed off work nationwide to try to force President Goodluck Jonathan to rescind a removal of subsidies that has doubled the price of petrol."

Unilever workers stage pension protest

Terrorist sympathisers take over Athens radio station

Protests follow Tibetan self-immolations

## Energy/resources ##
Crude supplies from West Asia hang in balance (India)

Eskom warns of power shortage (South Africa)
"The new year is off to an uncertain start, with an irregular electricity supply the last problem the domestic economy needs. As most companies returned to full production on Monday on the first day of work for many, Eskom warned that there was a risk of power shortages for the rest of the month."

Pakistan to import 500MW electricity from India

Blackout nation: Pak running out of gas and oil

Argentina May Impose Fuel Discount on Shortage, Cronista Says
"Argentina may force companies including YPF SA (YPFD) to sell premium gasoline for the price of lower-quality fuel in the case of shortages."

The power to change (Nepal)
"It is hard to remember a winter in urban Nepal that was bleaker than this one. Till this time last year, if there was no power people could at least fire up the diesel generator. Now there is no diesel, either. Nor petrol. Nor LPG."

Electricity only reaches one in three Afghans

The dangers of natural gas: Infographic

Expiration of Cash Grant to Affect Biomass & Wind More than Solar

Areva Invites More Banks to Table as Wind Projects Vie for Loans in Crisis

Fuel strikes threaten Nigeria's oil sector

Fur shoes, fleece sweaters replace heaters in offices (SKorea)

## Infrastructure scavenging ##
Attempted copper theft at Entergy substation leads to blackout (US)

## Got food? ##
Argentine Grains To Get Rain, But Will It Be Enough?

Orange juice futures spike on fungicide fears

## Environment/health ##
Hong Kong Air Pollution At Worst Levels Ever: Report

Residents on the warpath over growing rat menace (Abu Dhabi)

Alaska snow and ice cuts off Cordova and Nome
"Extreme winter weather has left one Alaskan town battling huge snowdrifts and forced another to seek fuel supplies from a Russian tanker."

Thousands of British skiers trapped in Austria after 10ft snowfall

## Intelligence/security/internet/systemic breakdown ##
5 Things You Should Know About the FBI's Massive New Biometric Database

How To Prepare For The Difficult Years Ahead

As Centralized Systems Devolve, The Solution Is Localism
Iran jamming broadcasts by Qatar's Al Jazeera

## Japan ##
Tepco Begins Talks With Banks on New Loans

"Facing the prospect of bankruptcy or a government takeover, Tokyo Electric Power Co., the utility at the center of Japan's worst-ever nuclear accident, has entered negotiations with creditor banks in the hopes of persuading them to lend it more money, government officials familiar with the matter said Monday.

"The negotiations could be fraught with difficulties, as the banks have told Tepco it must meet three preconditions for fresh loans: a capital injection from the government, a 10% increase in electricity rates, and the re-start of a nuclear plant next year, the officials said."

UAE, Saudis To Keep The Crude Flowing To Japan
"The United Arab Emirates will give priority to providing Japan with a stable supply of crude oil, foreign ministers from both nations agreed here Tuesday."

Qatar promises stable oil, gas supply
"Foreign Minister Koichiro Genba asked Qatar on Monday to ensure stable supplies of liquefied natural gas and crude oil, and won a promise of cooperation during meetings with two Qatari ministers, Japanese officials said."

New Wind Turbine Capacity To Slip 68% In FY11
"The combined generating capacity of wind turbines coming online in the current fiscal year to March will trail fiscal 2010's tally by 68%, the Japan Wind Power Association estimated in a report released Tuesday."

Japan formin says very concerned over Iran tension

No. of suicides surpasses 30,000 for 14th year in a row in 2011

Shrinking population finally hitting the Tokyo area

Head up: Govt to submit bill on epidemics / Special law to help prevent spread of infection, maintain order

Quake disaster survivors see bleak future as unemployment benefits run out

## China ##
China Import Growth Slide Deepens Global Risks

China mulls new energy "super-ministry"

And the result will be increased complexity, bloat, and higher required energy throughput. -- RF

Can China avoid a hard landing?

## UK ##
William Hague warns against Falklands intimidation

Retail warning despite festive boom

Labour admits it may cut spending further

## US ##

Food stamp use still rising despite good jobs news
"Household food stamp participation has been climbing so steadily that it has far surpassed the last peak, set as a result of Hurricane Katrina"

Moody's Downgrades Illinois Credit Rating To Worst In Nation
Closing of 259 USDA offices raises safety concerns
December freight rates climb even as volume stalls

"Year over year, freight costs were up 18.8 percent against an increase in freight volumes of only .7 percent."

New job openings decrease
"Private job openings declined 1.57 percent since October, and layoffs increased 5.68 percent"

Manipulating the Figures on US Unemployment: December Payroll Jobs Report

"Today's (Friday, January 6) payroll jobs report of 200,000 new jobs in December is overstated by at least 82,000 jobs. As approximately 130,000 new jobs are needed each month to stay even with population growth, the December job figures actually indicate that the US economy fell another 12,000 jobs behind."

DEA helped Colombian drug trafficker launder cash, new report reveals

Great Recession still affects health care spending

Georgia Will Merge Eight Colleges To Save Money

Treasury Draws Record Demand at $32 Billion Three-Year Note Sale
"The Treasury (YCGT0025) attracted record demand at today's $32 billion auction of three-year notes as concern that a resolution to Europe's sovereign-debt crisis is far off drove investors to the safety of the securities."

Commercial real estate stalls after rebounding

In The First Few Days Of 2012, US Mint Sells More Silver Than In Most Months Of 2011

Doctors: Why we can't stay afloat

And finally...

Fidel Castro: 'Robot' better than Obama or Republicans

The 'post-apocalyptic' condo that can withstand a nuclear attack

News Links, January 10, 2012

2012-01-09T17:10:00.000-08:00

## Global economic meltdown ##
Euro hits 16-month low vs dollar, 11-year low vs yen

"The euro hit a 16-month low versus the dollar on Monday, hurt by negative news from the euro zone over the weekend, with the risks of further declines seen in coming months."

Merkel, Sarkozy Pile Pressure on Greece

Dimwit Comment of the Day: Christine Lagarde, IMF Director says "Europe May Avoid a Recession This Year"

Greece Spends Bailout Cash On European Military Purchases

German debt auction priced at negative yield

Italian Banks Plunge On Capital Raise Concerns

European Banks Now Get Loans From Cash-Rich Firms
"Blue-chip names like Johnson & Johnson, Pfizer, and Peugeot are among firms bailing out Europe's ailing banks in a reversal of the established roles of clients and lenders...

"Europe's banks are struggling to secure the cash to fund their day-to-day business and have largely stopped lending to each other for fear Europe's sovereign debt crisis could land any of their peers in trouble."

Alcoa Says China to Cut 1.1 Million Tons of Capacity in 2012
"Alcoa Inc. (AA) Chief Executive Officer Klaus Kleinfeld said his company predicts that China will curtail 1.1 million metric tons of aluminum production capacity this year."

Australia's biggest economic threat is China: Weak commodity demand dampens resource-rich market

Outlook 2012: Airlines May Be Headed for a Bumpy Ride

More bleak times ahead for housing (Australia)

Construction activity continues to weaken (Australia)

Gold facts (infographic)

## Fault lines/flashpoints/military ##
Iran: we will close the Strait of Hormuz if our oil exports are blocked

Canadian warship bound for Mediterranean

"A Canadian warship steamed toward the Mediterranean Sea Monday for NATO anti-terrorism patrols as Iranian naval tensions ran high."

Iran starts nuclear work in mountain bunker: diplomats

UAE delays oil pipeline to bypass Hormuz

"The United Arab Emirates has delayed the launch of a crucial oil pipeline to bypass the Straits of Hormuz to mid-2012, which analysts said would add to supply worries at a time when Iranthreatens to block the strait for all the Gulf's oil."

Asia needs to prepare for oil crisis (Canberra Times)

"Since the last major rupture in the flow of oil from the Gulf after Iraq's invasion of Kuwait in 1990-91, Asia has greatly increased its reliance on Middle East oil to fuel rapid economic growth and expansion of modern transport networks that rely on petrol, diesel, jet fuel and other products refined from crude oil."

Almost 1 In 3 U.S. Warplanes Is a Robot

Indefinite Strike: Stockpile Foodstuffs, NLC Tells Nigerians

Israel Hikes Defense Spending By $700 Million
"Israeli premier Benjamin Netanyahu announced Jan. 8 an increase of nearly $700 million in the defense budget, after saying last year that he would cut military spending to finance social reforms."
Gov. Perry Vows to Reinvade Iraq if Elected

US Eyes Arms Sales to South Sudan

## Global unrest/mob rule/angry people/torches and pitchforks ##
The Revolution Returns to Egypt

Middle East protests, state repression set to continue in 2012: Amnesty International

Protesters take to the streets over state cuts (Ireland)

Protests, bonfires as strike starts in Nigeria
"Protesters gathered in Nigeria's main cities on Monday and fires were set on a road in the economic capital Lagos as the country embarked on a nationwide strike over soaring fuel prices."
Nigeria fuel protests turn violent, two killed

## Energy/resources ##

Saudi Arabia: 'Internal' matter if Japan buys Iran oil
"A Saudi oil official said that whether Japan or other countries continue to buy Iranian oil was an 'internal matter,' reflecting the unease in many nations after the latest U.S. sanctions on Tehran and Iran's threats to choke off the Strait of Hormuz in response."

Translation: We don't have enough capacity to replace Iranian oil. -- RF

Seoul looking for Iranian oil alternatives

If governments have such a hard time finding replacements for Iranian oil, we're already in trouble. -- RF

Unrest in MENA to fuel rental power growth in 2012

Diesel fuel is already in tight supply globally. What happens if all the people who want diesel generators start using them? -- RF

Motorists braced for petrol price rise after wholeseale costs jump (UK)
"Motorists and hauliers face record diesel prices at the pumps, putting a further brake on economic recovery, after an unprecedented rise in wholesale costs over the festive period."

Aboitiz barges ready to aid Mindanao during power shortage (Philippines)

"WITH Mindanao set to suffer from shortages in the coming days, the operator of the diesel power barges in Agusan and Compostela Valley expressed confidence the facility can deliver vital power to utilities to keep industries running as well as households lighted."

More oil firms hike gasoline, diesel, kerosene prices (Philippines)

Analysis: Power woes could trip Indonesia's economic surge

"Recurring blackouts this year have forced hotels on the resort island of Bali to rely on diesel generators for back-up power, which costs more than regular power supplies.

"'The situation has improved, but there are still blackouts from time to time. We have to use diesel which is more expensive and adds to our costs,' said a senior executive at a Bali hotel."

Drivers Face Record High Diesel Prices (UK)

Oil Prices Could Soar 80% If Iran Shut Hormuz: Analyst

U.S. Shale Bubble Inflates After Near-Record Prices for Untested Fields

"Surging prices for oil and natural- gas shales, in at least one case rising 10-fold in five weeks, are raising concern of a bubble as valuations of drilling acreage approach the peak set before the collapse of Lehman Brothers Holdings Inc."

Nigeria National Strike Not Hit Oil Output, Exports So Far-Sources

Big Statoil Arctic find boosts Norway's oil future

300 million bbl is about three and one-half days' world consumption. -- RF

Kuwait, Saudi Arabia not to supply oil to Pakistan on long-term credit

"Kuwait and Saudi Arabia have turned down Pakistan's request to supply oil on long-term credit despite the rhetoric of long-standing and brotherly ties between the countries, according to a media report today."

## Got food? ##
Grocery bills make dining out appear affordable (US)

## Environment/health ##

Fracking Moratorium Urged by U.S. Doctors
"The U.S. should declare a moratorium on hydraulic fracturing for natural gas in populated areas until the health effects are better understood, doctors said at a conference on the drilling process."
Light At Night Not A 'Bright' Idea

Wild weather hits Latin America
"From Chile to Colombia to Mexico, Latin America has been battered recently by wildfires, floods and droughts."

## Japan ##
Record-Low Number Of New Adults Mark Coming-Of-Age Day

Although regarded as a demographic disaster by the government and business community, this is good news for grossly-overpopulated Japan. -- RF

2 power companies likely to face supply shortages in 2012 if demand matches 2011 level
"Shikoku Electric Power Co. has announced that it will shut down the No. 2 reactor at its Ikata Nuclear Power Plant in Ehime Prefecture for regular inspections from Jan. 13, leaving just five of Japan's 54 nuclear reactors in operation as power companies struggle to secure reserve electricity."

Strong yen forces domestic firms to expand overseas

As Fukushima Cleanup Begins, Long-term Impacts are Weighed

## China ##
Japan, North hold secret talks in China

Flush With Cash, China's Three Gorges Corp. Buys Into Portuguese Electrical Utility

## UK ##

Price of fuel 'could reach record levels'
"Retail Motor Industry (RMI) Petrol is concerned fuel prices could leap to record levels in the UK after a sharp increase in the cost of wholesale diesel and unleaded petrol over the festive period."
Six million households have only five days' savings
"Around six million households would be unable to survive for more than five days if they stopped being paid, such are the low levels of savings among Britons, new research shows."

## US ##

Six in Ten Hedge Funds Lost Money in 2011

US Debt Is Now Equal to Economy
U.S. Weighs Retaliation Over Europe Aviation Law
Muslim man from Kosovo charged in Fla. bomb plot

Wall Street Prepares to Take Sharp Pay Cut

November boost in consumer debt is most in 10 years

"Americans dug their debt hole deeper by more than $20 billion in November, the biggest monthly gain in 10 years, the Federal Reserve reports.

"Not counting mortgage debt, Americans owe $2.48 trillion."

Government Set to Sell Foreclosures in Bulk
"The Obama administration, in conjunction with federal regulators and led by the overseer of Fannie Mae and Freddie Mac, is very close to announcing a pilot program to sell government-owned foreclosures in bulk to investors as rentals, according to administration officials."

Poor, but feeding the rich

Law enforcement officials can now secretly install GPS tracking on your vehicle and spy on you without a warrant, says judge
Alcoa Posts First Quarterly Loss Since 2009

Earnings outlook: Bye-bye, double-digit growth

And finally... Oh, the Irony! Bank of America Plaza in Atlanta Faces Foreclosure

News Links, January 9, 2012

2012-01-08T17:09:00.000-08:00

## Global economic meltdown ##
Merkel, Sarkozy Return to Work on Euro Rescue With Meeting in Berlin Today

Euro Suffers Longest Losing Streak Since 2010; Record High Speculative Short Positions; Big Specs vs. Currency Movements; Not Timing Devices (Mish)

Asia to become new world economic centre: FPCCI But...

East Asian Economies Slump

"The eurozone's worsening problems are affecting the export-dominated economies of East Asia hard. The 17-nation zone contracted in Q4, and it will probably shrink this quarter as well. 'We expect a fall in GDP of about 1.0 per cent this year and an even sharper decline in 2013,' said Jennifer McKeown at Capital Economics. Unemployment is at a record high, retail sales are falling, and consumer and business confidence is headed in the wrong direction."

Barclays: Rate of aluminum smelter cuts increasing

The grim reaper punctures Ontario's fiscal fantasies

"On current trends, the provincial treasury can't achieve a balanced budget by its 2017-2018 deadline. Without a course correction, Ontario risks a downgraded credit rating and ever higher servicing costs on a debt that will keep soaring over the next five years to well in excess of $300 billion."

Potash Corp. plans 4-week shutdown at Allan plant

'Inventory adjustment' causes weeklong shutdown at Chrysler's Windsor Assembly Plant

Hungary's hard-pressed workforce struggles with unaffordable mortgages

Venezuela's annual inflation at 27.6 percent

## Fault lines/flashpoints/military ##

India to pay for Iran crude in rupees

Iran 'enriches uranium at new site'

SocGen: It Would Be 'Easy' For Iran To Shut Down The Strait Of Hormuz, And Oil Would Surge To $150-$200

Iran Has Ability to Block Strait of Hormuz, U.S. General Dempsey Tells CBS

American, British, Israeli and Iranian Warships Sailing Towards Confrontation

Iran cracks down on film industry

Iranian leader seeks support in South America

Iran and Russia drop dollar for their own currencies in bilateral trade

Arabs urge Syria to halt violence, no call on U.N.

Top Syrian General Defects With 50 Troops

Report: Russian naval force arrives at Syria port in 'show of solidarity'

Iraq asks Kurds to hand over Sunni vice president

US reliance on Afghan paramilitaries in rural areas worries European allies

Manila protests Chinese ships' presence in Spratlys

Iraq: A country in shambles
"Despite promises made for improvements, Iraq's economy and infrastructure are still a disaster."

## Global unrest/mob rule/angry people/torches and pitchforks ##
Second Tunisian man sets self on fire in 2 days

Israel charges five settlers with army base rampage

Nigeria faces mass strike and protests over discontinued state fuel subsidy

'Occupy Nigeria' emerges ahead of mass strike

Armed protestors make their way to Bilawal House (Pakistan)
"PROTEST demonstrations in different parts of the country have become an order of the day but what happened in Karachi on Friday was very alarming. Furious people, many of them armed, clashed with the police during a protest rally that was making its way towards Bilawal House, which is considered to be seat of the power. Police resorted to tear gas shelling and put barriers to block the march during which exchange of fire also took place."

As economies teeter, leaders in Europe warn against extreme populism

## Energy/resources ##

Nigerian Fuel Price Strike May Disrupt Shell Oil Production, Close Ports

Oil Rises in New York on Iran Tension Amid Delays to Middle East Pipeline
Hugo Chavez has reason to smile

Water Shortage Affecting Industries (India)

The Dormant Hydro-Power Industry

Valley in darkness, tourists planning to leave (Kashmir)

Troubled Syria suffers from shortage of diesel

U.S. families pay a record $4,200 for gasoline in 2011
China's hunger for coal leaves dent in Pennsylvania's supply

DOE sees rationing as US acts vs Iran (Philippines)

Mindanao faces power shortage in 2012

## Infrastructure scavenging ##
Thieves Defy Death to Tap Metal Price Boom as U.K. Cracks Down

## Environment/health ##
Damning New Letter from NY State Insider: 'Hydraulic Fracturing as It's Practiced Today Will Contaminate Our Aquifers'

## Intelligence/security/internet/systemic breakdown ##
Hackers expose defence and intelligence officials in US and UK

"Thousands of British email addresses and encrypted passwords, including those of defence, intelligence and police officials as well as politicians and Nato advisers, have been revealed on the internet following a security breach by hackers."

Strategies For Survival: Are You Going To Be A Refugee Or Evacuee?

## Japan ##

IMF stress-tests Japanese banks
Japanese carbon steel export dropped by 16pct YoY in Nov

2 towns at risk of disappearing / Okuma, Futaba face uncertain future due to nearby crippled N-plant

Govt Request For Temporary Storage Site Displeases Fukushima Pref

Concern about aging reactors grows

University degree and full-employee-status no protection against joblessness in Japan

## China ##
China loan growth quickens

"China's banks ratcheted up lending in the last month of 2011 on the back of stronger money supply, reinforcing perceptions that the central bank is gently easing policy to cushion the impact of the global economic slowdown."

China: The rise of the 'Precious Snowflakes'
"First there were the Little Emperors, the often chubby and spoiled first generation of children born under China's one-child policy. Now the Precious Snowflakes have emerged - a generation so coddled some cannot even tie their own shoelaces."

## UK ##
Cut the working week to a maximum of 20 hours, urge top economists

Pensioners 'will work into 70s'

For a long time I've been advising everyone to kiss "retirement" goodbye. It's all downhill from here. -- RF

## US ##

New Jersey Will Pay You $1000 To Destroy The 2nd Amendment

Welcome the informant society, perhaps modeled on that of North Korea. -- RF
Natural gas, oil boom spurs sand mining in Midwest
Boeing shutdown will ripple across region

Soldiers on Lockdown After 'Sensitive' Military Equipment is Stolen from Washington Base
Occupy protesters in Vegas plan to take over foreclosed homes
Six arrested in latest Occupy Oakland march

Here's A Look At America's Achievement Gap In Education
Moving evicted tenants is 'lucrative' business
"Property owners across the country bear a burden from the recession: paying a fortune in moving and storage costs to evict tenants who fail to pay their rent.

"But the owners' losses are a boon for the companies that clear out homes. Their business has skyrocketed, 'making money out of people's misery,' said David Robinson, an attorney for Legal Services NYC, which helps low-income New Yorkers navigate the eviction process."

US Holiday Electronics Sales Drop 5.9 Percent

IRS estimate: 17 percent of taxes owed went unpaid

Bullard Says New Quantitative Easing Unlikely

Americans to Take DIY Approach in 2012

News Links, January 8, 2012

2012-01-07T17:39:00.000-08:00

## Global economic meltdown ##
Euro-Zone Sentiment Darkens as Recession Fear Looms
Eurozone strains increase with grim new economic data

Eurozone Crisis Spreads To France As Car Sales Decline

Euro Drops in Longest Losing Streak Since 2010

2012 Will Mark the End of the Euro

Wall Street Is Bracing for Dismal 4th Quarter

Drewry Says Container Lines Lost $5.2 Billion in 2011

Shipping industry to face another stormy year

Cement sector's capacity utilization lowest in 10 years (Pakistan)

UBS' Releases Most Dire Prediction To Date: Greece To Experience "Coercive" Restructuring With CDS Triggering Around March

## Fault lines/flashpoints/military ##
Iran holds military exercise near Afghan border

Iran's Ahmadinejad to seek Latin American support
"Iranian President Mahmoud Ahmadinejad will seek support from Latin America's leftist leaders on a tour starting on Sunday after tough new Western sanctions targeted Iran's oil industry."
Britain warns of militant attacks in Kenya

Allah's Energy Marriage - Saudi Arabia and India

The US-Iran economic war

"The requisite faceless bureaucrat, EU Energy Commissioner Gunther Ottinger, has been spinning that the EU can count on Saudi Arabia to make up the shortfall from Iran.

"Any self-respecting oil analyst knows Saudi Arabia does not have all the necessary extra spare capacity. Moreover, and crucially, Saudi Arabia needs to make a lot of money out of expensive oil. After all, the counter-revolutionary House of Saud badly needs these funds to bribe its subjects into dismissing any possibility of an indigenous Arab Spring. "

Asia making tough choices on Iranian oil

Syrian dissidents: Bombing was staged

NATO, Russia, China pursue World War to solve Financial Crisis

## Global unrest/mob rule/angry people/torches and pitchforks ##
Unilever workers to stage series of strikes (UK)
"Thousands of workers at Unilever, the consumer goods giant, are to stage a series of strikes in a huge escalation of a row over pensions."
Defying ban, protesters rally in Bahrain

TA: Social activists clash with police (Israel)
"Housing protest in Tel Aviv's Hatikva neighborhood turns unruly as 600 protesters clash with police, torch dumpsters and try to block Ayalon Highway."

## Energy/resources ##
How do consumers use engine efficiency? On bigger, faster cars.

Jevons paradox. -- RF

Green Self-Sufficiency Isn't Actually Self-Sufficient
Hormuz Bypass Oil Pipeline Delayed as Iranian Tensions Mount

## Got food? ##
Collapsing Honey Bee Colonies: Blame The Parasites?

## Environment/health ##
Record heat in January (video)

In Texas' worst drought on record, trees dying by the millions

## Intelligence/security/internet/systemic breakdown ##
Iran Mounts New Web Crackdown

Israel vows to retaliate after credit cards are hacked
"Israel has said it will respond to cyber-attacks in the same way it responds to violent "terrorist" acts after the credit card details of thousands of its citizens were published online."

## Japan ##
Military engineers set to be deployed to South Sudan

Concern about aging reactors grows

Tunnel full of radioactively-contaminated water found at Fukushima nuclear plant

Japan's nuclear phaseout could cause severe power shortages

Sales tax hike insufficient / Consumption levy of 17% needed to cover social security costs

## China ##
China 2011 insurance premiums up 10 percent: report

China's Property Bubble Is Imploding

## UK ##
Market Report: Man trips again – and falls to its lowest for 10 years
Farmers threaten to quit egg trade over low prices

## US ##
For many Americans, jobs crisis to last many years
Training excercise startles locals

NYC like 'occupying nation' to county
"New York City is like an 'occupying nation,' abusing waterways and poaching resources to get an exurban county's pure drinking water, the county executive says."

Mainstream Media Lies: 23 Things That Are Not What They Seem To Be On Television

Record air pollution hammers California's ag heartland

News Links, January 7, 2011

2012-01-06T16:55:00.000-08:00

## Global economic meltdown ##
IMF to Lower 2012 Growth Forecast

IMF chief Christine Lagarde: Some EU countries in technical recession
Soros says EU break-up would be catastrophic: report

Eurozone unemployment hits new record
Third ratings agency gives Hungary a junk credit rating

Iran Oil Ban Could Herald Economic Disaster for Europe

Global Economy Could Endure Disaster For a Week
"The global economy could withstand widespread disruption from a natural disaster or attack by militants for only a week as governments and businesses are not sufficiently prepared to deal with unexpected events, a report by a respected think-tank said."

German November industrial orders drop 4.8%

Do Not Underestimate the Desperation of Broke(n) Governments (Financial Sense)

The World Is Overflowing With Memory Chips

Elpida seeking 40 bil. yen in aid / DRAM chip business declines in face of strong yen, falling prices (Japan)
"Elpida Memory Inc., the world's third-largest manufacturer of dynamic random access memory (DRAM) chips, is seeking a total of 500 million dollars (40 billion yen) in financial assistance from about 10 of its business partners, according to sources."

Australia's Suncorp hit by hailstorms, quake costs

## Fault lines/flashpoints/military ##

Bureau of Counterterrorism (US Dept. of State)

Obama: the US can no longer fight the world's battles

Crude Plan: Iran war & double recession? (RT video)

Iran plans more war games in strait as sanctions bite

Pricing Dispute Threatens Iran's Oil Exports to China

"Iran's crude-oil exports to China, its largest export customer, are expected to fall by almost 40% in January because of a dispute over pricing and other contract terms, a person familiar with Iran's oil sales said.

"Though China could play a key role in the effectiveness of international sanctions on Iran, a major supplier to its energy-hungry economy, it has steadfastly declined to join international efforts to deprive Tehran of revenue."

Royal Navy sends its mightiest ship to take on the Iranian show of force in the Gulf
Chinese ships attacked again on Mekong River
"Four Chinese cargo ships and a Myanmar patrol boat were attacked early morning on Jan 4 at Wan Pung Port in Myanmar, further aggravating safety concerns over the Mekong River that saw a bloody slaughter of 13 Chinese sailors last October."

Deadly explosion in Damascus, says Syria state TV

Syrian bomb attacks cause people to rally around Bashar al-Assad's regime

Gunmen kill 6 in Nigeria church attack: pastor

Nigeria: The Next Front for AFRICOM

China warns US on Asia military strategy

Obama Adopts Bush Plan to Cut U.S. Combat Brigades in Europe, Hammond Says

Iraq: 84 killed, 157 wounded in attacks

## Global unrest/mob rule/angry people/torches and pitchforks ##
Libyan soldiers demand salaries
"Hundreds of Libyan soldiers protested on Thursday in the eastern city of Benghazi, demanding payment of overdue wages and complaining militia groups had taken over their bases and were not interested in joining a new national army."

Two Tibetans in China set themselves ablaze in protest

Hungary's 'Viktator' faces tide of protest at home and abroad

Nigeria police block fuel hike protesters
"Trade unions have threatened to begin an indefinite general strike from Monday, as protests continue."

## Energy/resources ##

West readies oil plan in case of Iran crisis

"Western powers this week readied a contingency plan to tap a record volume from emergency stockpiles to replace nearly all the Gulf oil that would be lost if Iran blocks the Strait of Hormuz, industry sources and diplomats told Reuters."

Trains suspended again due to diesel shortage (Pakistan)

It appears that the trains are competing with diesel generators... and losing. -- RF

Not enough fuel in Kruger National Park (South Africa)

"According to the KNP's head of public relations, William Mabasa, the situation is a result of a general shortage of fuel in the country which is not only affecting Kruger, but many filling stations in the region."

Fidel Castro says world marching into abyss with shale gas

For Zimbabwe's Consumers, Electrical Brownouts Beat Blackouts

"While all these projects have potential, until the government of President Robert Mugabe addresses the 'perception problem of Zimbabwe as a safe investment destination,' it would seem that for the foreseeable future Zimbabwe's most important energy source will remain – wood."

A Look at Some of the Obstacles Facing Wind Energy in the U.S.

A good read. -- RF

US Beats Expectations Saving Energy

My take is that they are giving too much credit to efficiency and not enough to the crashing economy. -- RF

Saudi Arabia's oil price cuts not seen tempting Asia buyers

## Got food? ##
Agri collapse in '12 (Pakistan)

Qatar's next big purchase: a farming sector

"Like other oil-rich, water-poor Gulf states, Qatar has been investing in large areas of farmland overseas to ensure access to food supplies. The agricultural arm of Qatar's sovereign wealth fund, Hassad Food, has bought land in Sudan and Australia, and has announced plans to spend hundreds of millions of dollars on agricultural projects in countries including Kenya, Brazil, Argentina, Turkey and Ukraine."

Brazil's government reports highest inflation in 7 years, food prices weigh heavily

Analysis: Food price pressures weigh heavy on southern Africa
Florida Citrus Growers Report Damage to Oranges

## Environment/health ##
Latin America Battling Wildfires, Floods, Droughts

Paraguay emergency tackles crisis over cattle disease outbreak

## Intelligence/security/internet/systemic breakdown ##
Feds turn to dating websites and facial recognition tools to catch crooks

Livestreaming Journalists Want to Occupy the Skies With Cheap Drones

Hackers Get Symantec Anti-Virus Source Code

X-37B spaceplane 'spying on China'

Facebook worm compromises up to 45,000 accounts

Stuxnet cyberweapon looks to be one on a production line, researchers say

## Japan ##
Six Reasons to Avoid Japan In 2012 (on investing)

Japan plans massive investment in futuristic robot farm

Techno-porn. -- RF

Japan Retailers' Profit Hit By March 11 Impact

Gov't to introduce regulations limiting life of nuclear reactors to 40 years

Japan May Nationalize Nuclear Power Plants, Edano Tells Yomiuri

Japan considering alternative oil supplies as Iran sanctions loom

Catastrophe bonds drawing attention in financial industry

GDP shrank last quarter on Europe debt woes: JCER
"The rebound from the March 11 disasters was probably cut short in the fourth quarter as the impact of Europe's crisis outweighed the support from reconstruction spending."

## China ##
How China Stays Stable Despite 500 Protests Every Day

China To Lower Growth Target To 7% Level For '12

China faces social unrest from housing woes
Chinese Solar Firms Will Die Before Being Acquired

## UK ##
UK car registrations fall 4.4% in 2011

The UK's 10 Biggest Shopping Malls Are Tracking Shoppers Via Their Cell Phones

## US ##

Fed seen unveiling QE3 bond plans by summer

Investors Continue to Yank Money Out of Stocks
Shortages of important drugs mean big problems for thousands of U.S. patients
NDAA: Open Season for the Police State

Massive Beat? Not So Fast - Morgan Stanley Warns 42,000 "Jobs" Bogus Due To Seasonal Quirk

Nonfarm Payroll +200,000 ; Labor Force Drops Another 50,000 ; Those Not in Labor Force Rises by 194,000 ; Unemployment Rate 8.5%; Notes from Trim Tabs on the BLS Report

Brutal losses in state and local jobs

Upbeat Dec. jobs report fails to lift Wall Street

Break Out the Budgets, Study Reveals US Consumers Increasingly Overleveraged

FBI: Firearm purchases shoot up in 2011

Why banks shun 30 million Americans

When will the debt bubble burst? (Daily Reckoning)

"Positive inflation is the feds' answer to a debt blow-up. They have no other answer… When bond buyers refuse to roll over US debt at reasonable rates, the Fed will use its printing press. The resulting 'positive' inflation will blow up the world's monetary system as well as government debt. Gold will be the about the only money left."

Experts: Gas headed higher this year

Six police officers shot in Utah

U.S. issues travel warning for Philippines
"U.S. citizens are advised of a heightened risk of terrorist activity in the Philippines, the U.S. State Department said in an updated travel warning."
Profit Warnings at Target, Kohl's, J. C. Penney, American Eagle

U.S. Industry Associations Release Bleak Report
"A trio of U.S. defense industry associations jointly released a report Jan. 6 warning of catastrophic damage that might be caused by defense cuts."

Tax gap: IRS comes up $385 billion short

5 Big Retail Chains That Will Be Gone in 5 Years

News Links, January 6, 2012

2012-01-05T17:33:00.000-08:00

## Global economic meltdown ##
Papademos Warns Greeks Economic Collapse Looms Without Cuts

European Deathwish Exposed: Greek Bailout Package Delayed By Three Months

Fresh Data Damp Hopes on Europe

"Doubts over Europe's strategy to overcome its debt woes re-emerged Thursday amid fresh evidence that the region is in recession, reinforced by concerns about the fragility of its banks."

Europe's Debt Woes Return to Haunt Global Markets

EURUSD Dips Below 1.28 As All Hell Breaks Loose In Italian Financials

Hungary Marches Down Hyperinflation Path; What About the US?

Austerity czar sees pain ahead in Ontario (Canada)
"A government-commissioned review of Ontario's public services is set to deliver a grim diagnosis of the province's financial prospects, and propose a sweeping overhaul of the way it spends money."
Indian economy under risk, Rupee may weaken to 55-56: Macquire

"With India's total external outstanding debt more than doubling to $327 billion in the last 5 years, the Indian economy is becoming increasingly exposed to external vulnerabilities, a report by Macquaire states."

Asia Stocks Fall on Europe

"Chinese stocks finished at their lowest level in nearly three years to lead broad losses among major Asian markets Thursday, as worries about the property sector and tight liquidity conditions hit investor sentiment."

Alcoa to Close or Curtail 531,000 Metric Tons of Smelting Capacity

Kenya: Our Economy Needs Fast Radical Surgery

Low European Tech Spending Hurts Global IT
"Global spending on information technology will rise at the slowest pace in three years in 2012 as Europeans, worried about the region's sovereign debt crisis, cut back on investments, research firm Gartner said."

US ethylene producers plan shutdowns for Q1-2012

Seoul hints at stricter controls on capital flight

France sells 8B euros of debt, 10-year yield rises

## Fault lines/flashpoints/military ##
Bombs target Iraqi Shi'ites, kill at least 73

Iraq Shi'ite militia says ready to lay down weapons

"The leader of a Shi'ite militia which carried out some of the most prominent attacks on foreigners during the Iraq war, said the group will lay down its weapons and is prepared to join the political process.

"'This stage of the military conflict between the Iraqi armed resistance and the occupation forces is over, with a distinct, historic Iraqi victory and a distinct, historic U.S. failure,' Qais al-Khazali told Reuters in an interview on Wednesday."

Israel, US to hold largest ever missile defense exercise. Thousands of US soldiers will be deployed in Israel.

Iran: Turkey is best place for nuclear talks

UK warns Iran over oil passageway threat

US, EU Wage Economic War on Iran; Greece Lifts Objection to Oil Embargo; Warmongers United; Will Cooler Heads Prevail? (Mish)

New Pentagon strategy stresses Asia, cyber, drones

America's "Mini Air Force": Long-range drones directed against China
Pakistani Taliban say kill 15 soldiers, vow further "revenge"
"The Pakistani Taliban have killed 15 kidnapped troops in revenge for military operations against them near the Afghan border, a Taliban spokesman said Thursday, vowing further such attacks."

Afghan president demands control of Bagram prison

India rejoins the nuclear submarine league

Wave of shootings baffle Swedish police
"A new wave of execution-style shootings in Sweden's third largest city has left police puzzled, raising concerns that Malmo has become a magnet for gang-related killings."

## Global unrest/mob rule/angry people/torches and pitchforks ##
'Occupy DC' seeks court order to avert eviction

Occupy activists barred from Oakland City Hall

Police Break up Fuel Protest in North Nigeria

Railway employees hold protest, demand cash salaries (Pakistan)

"The protesters also torched the effigy of the chairman Railway and also set tyres on fire."

## Energy/resources ##
French nuclear plants told to prepare for disasters
"France must invest billions of euros to improve the safety systems of its nuclear facilities so they can withstand the kind of extreme shocks that triggered in Fukushima the worst nuclear accident in 25 years, the nuclear watchdog ASN said on Tuesday."

France Stands By Nuclear Power, Will Spend $13 Billion For Safety Upgrades

On the sly, Chinese fuel in Nepal

India oil demand jumps 11.2% y/y in November on record diesel sales

Oil clings to new plateau

Saudi Arabia Ready to Fill Any Oil Supply Gap: Source

South Africa cannot give up on coal, say big electricity users

Heat fear for the poor (Australia)
"VICTORIANS are living in sweat boxes, fleeing to shopping centres or sitting in cold baths over summer to cope with soaring power bills.

"Welfare agencies fear growing numbers of householders are too scared to turn on airconditioners when it is sweltering because of crippling price rises."

Survey reveals consumer interest in electric vehicles continues to slide

## Got food? ##
In Africa, using ants and termites to increase crop yields

## Intelligence/security/internet/systemic breakdown ##
Iran clamps down on internet use
"Restrictions on cybercafes and plans to launch national internet prompt fears users could be cut off from world wide web"

US pressured Spain to implement online piracy law, leaked files shows
"US ambassador threatened Spain with 'retaliation actions' if the country did not pass tough new Sopa-style internet piracy laws"

## Japan ##
Record $736k paid for single tuna fish in Japan

Japan Braces for Loss of Iranian Oil

"In addition to forcing Japan to find other sources of oil, analysts say, the loss of the Iranian supply will likely drive up prices—a chilling prospect for Japan, already grappling with rising fuel costs."

Pressure on Iran puts Tokyo in a bind

"'We are not considering banning imports,' a Foreign Ministry official said, indicating the government is wary of stepping up pressure on Iran in any coordinated action.

"An official at the Ministry of Economy, Trade and Industry said an embargo on Iranian oil would lead to a sharp rise in crude oil prices and added the U.S. must consider the negative impact of such a development on the global economy."

Gov't to test 'variable pricing' electricity system

Nippon Steel faces ¥84.6 billion loss

Kashiwa stops operation of incinerator again as radioactive ash fills up storage

6 civilian Japanese ports labeled essential by U.S. Navy
"The United States Navy has designated six civilian harbors in Japan as essential ports in the case of a military emergency on the Korean Peninsula or elsewhere nearby, multiple Japanese and U.S. military sources have told the Mainichi."

Japan auto sales down 15% in 2011

As radiation fears persist, ties unravel in society
Blowing bubbles: Construction booming, but where are the tenants?

## China ##
Hong Kong Business Activity Continues Slide

China Seeks to Boost Consumption, Chen Says
"China will roll out measures to boost consumption this year as it strives to meet challenges posed by a global slowdown, Commerce Minister Chen Deming said."

That will make energy and commodities really affordable to everyone. -- RF

China's Property Slowdown Spreads to Other Sectors (MarketWatch video)

## UK ##
British doctors decry healthcare rationing

Whooping cough cases increase in England and Wales

Storms leave thousands without power across England

## US ##

Here We Go Again: US $25 Million Away From Debt Ceiling Breach
New York governor urges mandatory DNA samples

"New York's governor on Wednesday proposed making the state the first in the country to take mandatory DNA samples from anyone convicted of a crime, including relatively lesser offenses."

Doctors going broke

Davis-Besse Nuclear Power Is Safe, NRC And Ohio Operators Insist

"Federal regulators along with the operators of nuclear plant in Ohio want to assure critics that it's safe to run a reactor despite the discovery of cracks in its concrete shell."

34 Shocking Facts About U.S. Debt That Should Set America On Fire With Anger

The decline of the American public good
"Much of what's called 'public' is increasingly a private good paid for by users, and the rest has become so shoddy that that those who can afford to find private alternatives."

Harder for Americans to Rise From Lower Rungs

Job cuts down in December, but up for year

Renter Nation Rages On As New Reality

Hey, what happened to Dubya's "ownership society"? -- RF

Bailout concerns mounting for federal housing agency
Pepsi Mulls Job, Pension Cuts: Report

Holiday Week Gasoline Demand Plunges To Lowest On Record

News Links, January 5, 2011

2012-01-04T17:05:00.000-08:00

## Global economic meltdown ##
Fresh credit crunch fears as banks park record €453bn cash with ECB

The Can Kicking Is Ending - Key Upcoming Dates For Europe's Patient Zero

Germany and France Eye the End of Triple-A Era

Euro Tumbles Amid Concern Region's Debt Turmoil Is Worsening; Pound Climb

Brussels Recommends Sucking Spain Dry with Increased VAT; France to Raise Sales Tax to Protect Jobs; Is There Any Point or Reason for the Eurozone?

Hungary Borrowing Costs Jump to 2009 High; Bond Risk at Record

Santa Rally Is Over: French Spreads Blow Out To Late November Levels; Shanghai Composite Already Down On The year

2012 Outlook for Korea's Shipbuilding Industry May Not Be So Bright

Gold Sales to India Were Double Average Yesterday, UBS Says
The Global Rise of the Informal Economy

Singapore to Cut Ministerial Salaries on Review
"Singapore will cut salaries for its prime minister and top office holders after voter unhappiness over a widening income gap weakened support for the ruling party in last year's elections."

Gerald Celente: EU Collapses in 90 Days, Bank Holiday and War
Indonesian Economy Booms, Its Infrastructure Groans

Turkish Inflation Soars

## Fault lines/flashpoints/military ##

U.S.-Iran Tensions: Mideast Showdown Builds As United States Tightens Military Ties To Israel

"'Powder keg doesn't begin to describe it,' said Louise Arbour, president of the International Crisis Group, an independent organization that monitors global tensions. 'Rising strategic stakes have heightened the regional and wider international competition,' she wrote in a new assessment. It is, she concluded, '"an explosive mix.'"

The Pentagon to Send US Troops to Israel. Iran is the Unspoken Target

Analysis: Fuel test won't hasten Iran bomb: experts
"(Reuters) — Iran's latest claim of a breakthrough in its nuclear program appears unlikely to bring it any closer to having atomic bombs, but serves rather as another defiant message to the West."

Iran prepares bill to bar foreign warships from Persian Gulf

Exclusive: EU agrees to embargo on Iranian crude

Turkey to seek US waiver on Iran oil -energy official
"Turkey will seek a waiver from the United States to exempt its biggest refiner Tupras from new U.S. sanctions on institutions that deal with Iran's central bank, a Turkish energy ministry official told Reuters on Wednesday."

Iran's Real Weapon Of Mass Destruction Is Oil Prices

Don't expect an Iranian oil crisis (CNN Money)
"Moves this week by the U.S. and the European Union may complicate Iran's ability to sell oil, but they will hardly kill it."

Geithner to Travel to China, Japan to Discuss Iran Sanctions

Syrian rebel leader threatens to escalate attacks

Syrian activists say government armor still in cities

Militias may drag Libya into civil war: NTC chief

Turkey warns against Shi'ite-Sunni Cold War
"Middle East powerhouse Turkey on Wednesday warned against a sectarian Cold War in the region and said rising Sunni-Shi'ite tensions would be 'suicide' for the whole region."

Eight Strategic Factors to Consider in 2012

Egypt's Street Kids Are Revolution's Smallest Soldiers

Sunni and Kurdish Blocs Boycott Iraqi Parliament While Attacks Continue

## Global unrest/mob rule/angry people/torches and pitchforks ##
Gas protests refuse to die down (Pakistan)

"Countrywide protests against gas shortage continues as protesters in the twin cities blocked majors highways, set several vehicles on fire, hurled stones at police and burnt tyres on Tuesday."

China says Xinjiang kidnappers were on "holy war"

Nigeria fuel subsidy: Unions announce indefinite strike

Venezuela families occupy Yare prison in protest

Clashes as Cypriots demand British forces out
"Protesters demanding that British forces withdraw from Cyprus clashed with police at a military base, leaving around a dozen people hurt, police said on Tuesday."

## Energy/resources ##

Oil Trades Near 8-Month High on Demand, Iran Tension Amid Shrinking Supply

South Korea, Japan Examine Iran Sanctions (WSJ)

"Energy-deficient South Korea and Japan are mulling the implications of U.S. moves to toughen sanctions against Iran, with each facing a potential disruption of oil imports from a country that meets close to 10% of their crude needs."

Sustaining coke supply a worry for steel firms (India)

Power shortfalls "to persist" (China)

Is the system at the brink of collapse? (Pakistan)

Blackout Pakistan
"The latest crisis that has Pakistani's from all walks of life up in arms is the lack of electrical power throughout the country. While rolling blackouts or load shedding as its locally known has always been a staple of daily life in Pakistan, the problem has become acute in the last couple of years. In the second half of December, the situation got so bad that WAPDA & KESC (power generation entities in Pakistan) resorted to draconian levels of load shedding. The power cuts during this time amounted to 20-22 hours a day in most small cities and even cities like Karachi were seeing 18+ hours of load shedding."

Alaskan oil production declines
"Crude oil production in Alaska fell nearly 5 percent, extending a steady production decline that began eight years ago, state tax data indicate."
Banks Hesitate to Finance Energy Projects, Handelsblatt Says

Power blackout risk could grow, Toronto Hydro workers warn

Latin oil supplies for US start to dry up
Nuclear numbers down despite connections
"Six new nuclear power reactors were connected to the world's electricity grids in 2011, adding over 4000 MWe of generation capacity. Thirteen units were closed permanently, all but one as a direct result of the accident at Fukushima Daiichi."
Is there really 100 years' worth of natural gas beneath the United States?

Electricity rates to rise 9% in February (Israel)
Public Utility Authority expected to approve IEC's price hike request, completing 25% increase in electricity prices since August

Vehicles queue up for fuel‚ roads obstructed (Nepal)

Mindanao short of 100 MW of power (Philippines)

## Infrastructure scavenging ##
Thieves stealing copper cause power outage Tuesday (US)

## Got food? ##
Weather Erratic For Brazil Soy As Harvesting Starts
"Heavy showers will sweep over central and northeastern soy regions in Brazil this week but little moisture will reach the critically dry south, forecaster Somar said on Tuesday, as some farmers fire up harvesters to start gathering the crop."

## Environment/health ##
2011 was costliest year in world disasters

## Intelligence/security/internet/systemic breakdown ##
MailChimp outage affects 400,000 customers
"A hardware issue at one of MailChimp's three data centers in the US caused outages for hundreds of thousands of customers of the email marketing services company on Monday."
Belarus puts restrictions on foreign internet sites

## Japan ##
Toyota's U.S. Sales Drop 7 Percent In 2011 On Japanese Earthquake

Shrinking Japanese Market Forces Exxon Mobil To Downsize

Pension Funds Yield 0.9% In Oct-Dec: Towers Watson
"Japanese pension funds returned 0.9% in the October-December period, the first positive return in three quarters, according to an estimate by U.S. consulting firm Towers Watson."

Absolutely pitiful. As a rule, pension funds need something like an 8% return to deliver promised benefits. This is just part of the worldwide pension meltdown. -- RF
Business leaders cautious / Most executives surveyed say Japan's economy is at a standstill

Public entity eyed for power supply

## China ##
China Home Prices Slide Amid Speculation

Fewer Property Deals Being Done in Hong Kong

New Year housing sales drop 60% in Beijing

China Shipbuilding Plunge Reflects Broad Stress

China Property Malaise Spreads to Furnishings

China Cuts Television Programs That Contradict Hu's Party Line

"China announced the plan in October as part of a broader effort by the Communist Party's Central Committee to assert more control of the media and Internet as it grapples with rising social unrest over work conditions and government corruption."

Caught in a Chinese pricing pincer
"Chinese exporters, already battling a slump in demand and an intense squeeze on profit margins, will come under even more pressure following the decision of two of China's largest cities to raise their minimum wage rates."

Solar power cell industry sees dimmer prospects

China Upgrading Yuan-Payment System

"China is creating a payment system that will make it more efficient for banks to clear yuan funds across its borders, in another move aimed at promoting the global use of the Chinese currency."

Chinese airlines refuse to pay EU carbon tax

China's 'Demographic Tsunami' Begins

## UK ##
Millions use payday loans to cover mortgage and rental costs
"Housing charity Shelter says research showing millions of families using unsecured borrowing to pay housing costs is evidence of a debt spiral"

Scotland counting cost of storms

University applications 'drop by 23,000' after fees hike

## US ##
Billions needed to upgrade America's leaky water infrastructure

Proposed Infrastructure Bank has $250 Billion Tab
Official: Los Angeles arson suspect under investigation in Germany

Ohio earthquake was not a natural event, expert says
"A 4.0 magnitude earthquake in Ohio on New Year's Eve did not occur naturally and may have been caused by high-pressure liquid injection related to oil and gas exploration and production, an expert hired by the state of Ohio said on Tuesday."

Recent Findings Reveal Massive Government Funding Behind Advances in Shale Gas Production

Fears Over Smart Grid Failure

Personal Incomes Fall More During 'Recovery' Than During The Recession

US non-lethal weapon 'wish list' revealed on the net

Tallying the Christmas Rush: Sales Gain, Profit Pain?

Boeing to Close Wichita, Kan., Facility by End of 2013

Tanks on Main Street: The Militarization of Local Police

Retail Investors Pull $140 Billion From Equity Funds In 2011 Which Close The Year With 19 Consecutive Outflows

First Time Ever: Silver Sales Surpass Domestic Production

Americans make up half of the world's richest 1%

News Links, January 4, 2012

2012-01-03T17:06:00.000-08:00

## Global economic meltdown ##
Global Growth Slows to 3.9% as O'Neill Sees BRICs Diminished by Population

Major Slowdown in Global Trade Coming Up; Think the U.S., China, Germany, or U.K. will Be Immune?

Bankers Feel Job Cuts Across Asia

Global Bond Issuance To Top A Staggering $8 Trillion In 2012
"As households are supposedly deleveraging and European nations face austerity, one might suspect that global debt levels were stabilizing or even dropping. Think again."

Singapore's Contraction Tests Resilience of Asia to Europe Crisis: Economy

Greek, Italian Cash Heads for Hills, or Undergound
"Greeks and Italians are taking their money and running, moving it abroad or even burying it underground for fear the euro zone crisis will topple banks and wipe out what remains of their savings."

Year-End Bets Against Euro Hit Record
"Hedge funds increased their bets against the euro to a record level in the last week of 2011, increasing pressure on the embattled European common currency as it enters the most testing year of its history."

More employers in Brazil accused of slave-like conditions
"Nearly 300 employers in South America's biggest country submit workers to slave-like conditions, Brazil's Labor Ministry said Tuesday."

Portugal Car Sales Plunge 60% in December, 31% for Entire Year; Spain Car Sales Plunge 17.7% to 1993 Levels

## Fault lines/flashpoints/military ##

Militants agree to truce with Pakistan, unite against NATO (McClatchy)
"Pakistani Islamist militants on Sunday pledged to cease their four-year insurgency against Pakistani security forces, and join the Taliban's war against NATO troops in Afghanistan."
Syrian army deserters 'kill 18'
"Syrian army deserters have killed at least 18 members of President Bashar al-Assad's security forces, according to a human rights group."
Israel scraps military deal with Turkey

"Israel has escalated its bitter quarrel with Turkey, its erstwhile ally, by scrapping a $140 million deal for unmanned aerial vehicles and advanced intelligence-gathering systems the Israelis fear could end up in the hands of Iran."

Barak: Assad 'Only Has Weeks'
"Defense Minister Ehud Barak says the regime of Syrian president Bashar al-Assad only has 'a few weeks' before it loses control."

Iran nuclear crisis: France wants 'stricter' sanctions

Huawei's Supply Work in Iran Should Be Investigated, U.S. Lawmakers Say

Iran threatens U.S. Navy as sanctions hit economy

U.S. Dismisses Iranian Warning Against Navy Carrier in Gulf

Iran Has No Long-Range Missiles: Russia
Qatar offers to be mediator between Taliban, international community

"[Qatar is] now facilitating talks on the Afghan conflict by allowing the Taliban to open a liaison office in its capital, Doha."

China backs Russian anti-terror agreement

Triple bombing targets Kandahar police

U.S. Strategic Drone Fleet Infected by Stealthy Keylogger Malware

Mideast Weapon Sales Part of Long-Term Plan: U.S.

NATO supplies pile up at Pakistan port
"Tonnes of supplies bound for NATO forces in Afghanistan are piling up at the Pakistani port of Karachi following the blockade imposed after a deadly air strike in November, officials said Monday."

## Global unrest/mob rule/angry people/torches and pitchforks ##
Nigerians Stop Gas Stations From Selling Fuel

"Angry mobs of protesters stopped gas station owners from selling fuel Tuesday while others lit a bonfire on a major highway in an attempt to thwart the government's removal of a cherished consumer subsidy that had kept gas affordable for more than two decades."

Angry protests over gas shortage in Pakistan

## Energy/resources ##

South Korea crude oil imports up 2.7%, seeks exception from Iran sanctions

"South Korea is an energy dependent economy. Almost 97% of its energy requirement are met through imports. As such, the country will find it extremely difficult to accommodate increasing US pressure to cut imports of oil from Iran, especially with Iran meeting 8.3% of total oil imports in 2010."

Crude oil above $109 on Iran tension, Chinese data

Hunt for Gas Hits Fragile Soil, and South Africans Fear Risks

"If our government lets these companies touch even a drop of our water, we're ruined."

Oil and Gas Bubble Up All Over (WSJ)

Everything's gonna be OK. -- RF

Perfect storm ahead for Australia mining?

"Global consulting firm Deloitte in "Tracking the Trends 2012" questioned whether Australia was at the peak of a resources bubble that would soon burst."

Gas for future power plants unlikely: Petrobangla chief

Long queues as Nigeria fuel price soars

## Got food? ##
Saudi firm buys dairy farm land in Argentina as anger grows from activists, farmers alike

Food Prices Ease Slightly But Are Still Volatile: UN Official
A Punch to the Mouth: Food Price Volatility Hits the World (Gregor Macdonald at Chris Martenson)

## Environment/health ##
Australia in grip of fierce heatwave

Hong Kong on Alert Over Bird Flu

Upper atmosphere facilitates changes that let mercury enter food chain -- with video

Fierce storms batter Britain leaving one man dead and transport chaos in their wake

## Intelligence/security/internet/systemic breakdown ##
Saudi hackers claim to post personal information of 400,000 Israelis

## Japan ##
China, Taiwan complain after Japanese politicians land on disputed isles

Over 70% of top Japan firms see economy as slowing or flattening
Twitter crashed during Japan New Year celebration

## China ##
Diesel shortage fuels discontent

"'I have to wait for two hours and even longer at the gas station to get refueled. And you are only allowed to buy 50 yuan worth of diesel. So I have to come back for another two hours in the afternoon,' he said. 'In the worst scenario, I tried 10 filling stations and couldn't get a single drop of diesel and was afraid of running out of fuel.'"

## UK ##
Private sector pensions in seismic collapse, says ACA

British PMI indicates December contraction

## US ##

The Ministry of Propaganda Declares Ron Paul "Unelectable"

"The Status Quo's Ministry of Propaganda has a single political task for 2012: eliminate the sole threat to the Status Quo (Ron Paul) from the running, leaving voters with a 'choice' of clueless stooges for the Power Elite."

Manufacturing ISM Highest Since June; Expiring Business Tax Credits Explain Why; Enjoy it While You Can As US Decoupling Won't Last

US Closes 2011 With Record $15.22 Trillion In Debt, Officially At 100.3% Debt/GDP, $14 Billion From Breaching Debt Ceiling

Exposing American Banks' Multi-Trillion Umbilical Cord With Europe
No Warrant Needed for GPS Monitoring, Judge Rules
Signs point to tepid consumer spending for 2012

Funding Gap Doubles for US Corporate Pensions

Watch as pensions melt away like snow on a warm spring day. -- RF
Workers dropping out of the work force for school: Bad sign for the economy

No, The School Nurse Is Not In

NJ Public Workers Retire at Fastest Clip in a Decade

H.R. 3166: Enemy Expatriation Act

Whitney Call Fades as Default Spike Unlikely

Signs show that a massive muni bond default is in the cards. Whitney will have the last laugh. -- RF

Huge loss in home values cratered the Bay Area economy

And Now The Hangover: Retailers Face Record Returns Of Holiday Gifts

Holidays' Retail Binge Will Lead to a Spending Diet in Early 2012

Bachmann: Put US missiles on alert to warn Iran

News Links, January 3, 2011

2012-01-02T17:08:00.000-08:00

## Global economic meltdown ##
Factory output subdued going into 2012

"Global manufacturing activity was subdued going into 2012, with the euro zone's industrial sector suffering its fifth straight month of declines in December and Asian factories mostly stuck in a rut."

Asia Manufacturing Picture Clouds

Eurozone manufacturing decline persists, PMI survey says

Brazilian manufacturing still contracting

Hungary manufacturing sector contracts further in Dec 2011

Dutch Manufacturing Fell for Fourth Month as Employment Shrank, NEVI Says

Hyundai Heavy Expects Difficult Year

Austerity reigns over Euro zone as crisis deepens

Life Insurance Industry Reeling Under The Effect of Negative Growth (India)

Insurance companies struggling in new economy (Canada)

Bleak Outlook for the Insurance Industry (US)

Biggest Economies Face $7.6 Trillion Bond Tab as Rally May Fade
"Governments of the world's leading economies have more than $7.6 trillion of debt maturing this year, with most facing a rise in borrowing costs."
Moody's: Greatest risk to Israel's rating - security

Spain public deficit may top 8 percent: minister

China, India Manufacturing Grows as Europe Struggles

But they can't continue growing if the rest of the world is going down the tubes. And both countries have serious energy shortages. -- RF

China Export Orders Show Threat From Europe

## Fault lines/flashpoints/military ##
Iran refuses to fuel certain airlines

Iran tests missile that could hit US bases, Israel

Iraqi civilian deaths climb in 2011: study

Saudi Arabia seeks arrest of 23 Shi'ites for unrest
Deadly Turkish strike felt by Kurdish refugees in Iraq

Iran currency plunges 10% as US strengthens sanctions

Rebels seize two military checkpoints in Syria

Syria: Arab League secretary general concedes monitors have failed to stop killings

Obama Makes Arms Sales A Key Tool Of U.S. Foreign Policy

Obama's change: From kidnapping and torture to assassination

Chinese military bases are about more than just naval supplies and protecting trade routes

## Global unrest/mob rule/angry people ##
Nigerian anger heats up as petrol prices rocket
"Nigerian motorists and unions vented their anger Monday at a sudden more than doubling of fuel prices, a day after government subsidies were removed in a sweeping economic reform that could trigger mass protests."

Tens of thousands protest against Hungary government

Greece sees first strike of 2012 as doctors protest

Occupy protest follows 123rd annual Rose Parade

Gas-price increases anger Pakistanis
"Transportation slowed Monday across Pakistan because of protests, some violent, over price increases for gas and other petroleum products."

JI announces full support to mass protest against outages, gas shortage (Pakistan)
"Announcing all out support to the protest movement by industrialists, traders and workers against fuel price hike, stoppage of gas to industries and prolonged loaf shedding of electricity, the Jamaat-e-Islami has urged the people from all walks of life to join the JI countrywide protest on the issue."

Kashmir power cut protest turns deadly
"At least one person killed when Indian troops open fire on protesters angered by electricity outages in winter weather."

## Energy/resources ##
Pemex oil output slips for 7th year

Lights out: For India, a Power Failure Looms

"Almost a decade ago, India's government, seeking to overcome one of the biggest challenges to the nation's development, set an ambitious goal: electric power for all by 2012.

"Instead, as the target date of March nears, the power sector is in shambles, and its dire state threatens India's economic prospects at a time when a high inflation rate, a burgeoning government budget deficit and ripples from the European financial crisis are already damping growth."

Even higher costs and more headaches ahead for nuclear power in 2012

"A new paper presented by Mark Cooper, senior fellow for economic analysis, Institute for Energy and the Environment, Vermont Law School, suggests that the cost of nuclear power, which already had risen sharply in 2010 and 2011 before the Fukushima disaster, could climb another 50% due to tighter safety oversight and regulatory delays in the wake of the reactor calamity in Japan. The Cooper paper is available online at <http://www.markcooperresearch.com/Nuclear-Safety-and-Nuclear-Economics-Post-Fukushima.pdf>."

Pakistan to Produce Natural Gas - By Burning Underground Coal

What is Both Sustainable and Renewable that Makes Financial Sense Today?

Although MSW power production might seem like a win-win solution, it's actually a system which merely feeds off the detritus of the petroleum economy. -- RF

India Raises Iron Ore Export Tax

Gas Prices Rise 30% in Myanmar

## Infrastructure scavenging ##
Thieves stole £13m of metal from railways, say police (UK)

## Got food? ##
India's wheat production may be hit by ongoing weather

Wheat Futures Rise in Record Rally

On eve of caucus, a different boom in Iowa: Real estate prices soar for farmland
We've Lost Nearly All of Our Wild Foods

## Environment/health ##
Egypt's Red Sea Sharks Face Extinction

Deadly Chile forest fires spread

Britain braced for gale force winds

## Intelligence/security/internet/systemic breakdown ##
The cybersnoops are always one step ahead of ministers (UK)

"Most people would assume – and certainly hope – that the emails of a serving Chancellor could not be read by a newspaper looking for a story.

"Because if a journalist can access someone like Gordon Brown's personal correspondence just imagine what the Chinese are reading."

Govt working on defensive cyberweapon / Virus can trace, disable sources of cyber-attacks (Japan)

## Japan ##
No-man's land attests to Japan's nuclear nightmare

Happy New Year! -- RF

Gov't, TEPCO to negotiate over use of public funds

Different radiation standards add to confusion

Euro Touches 11-Year Low Against Yen

Japan IMF stress-test results coming soon: report

## China ##
Gushan announces significant drop in biodiesel production

China's Low-Cost Housing Boom (MarketWatch video)
"Building low-cost housing projects is part of the Chinese government's plan to restructure its housing sector. But some say it's a risky strategy for the already shaky real estate industry."
Mayan property risk looms for China

## UK ##
Commuter pain as rail fare rises take effect

Benefits change prompts affordable house shortage fear

## US ##

Ohio suspends well operations after series of quakes
Treasuries Rise on Europe Crisis, Gain Most in a Year Since 2008
New York firebomb attacks hit mosque, Hindu site

"New York police are investigating as bias crimes four Molotov cocktail attacks on Sunday night including one against a mosque with 75 people inside and another against a Hindu place of worship."

Ron Paul Had Accurate Conspiracy Theory: CIA Was Tied To Drug Traffickers

Formerly Great Cities All Over America Are Turning Into Open, Festering Sores

Happy New Year! -- RF

Man arrested in connection with L.A. car fires

In Mortgage Crisis, Some Banks Agree To Cut Losses

U.S. Farmer Optimism Rises on Harvest, Profits

News Links, January 2, 2012

2012-01-01T16:41:00.000-08:00

## Global economic meltdown ##

Karachi: bellwether for a country on the brink
Crisis talk, austerity calls mark euro anniversary

European leaders predict 2012 will be worse than 2011

Singapore GDP Slowed to 4.8% as Lee Predicts 'Difficult' Global Conditions
"Singapore's growth will weaken further this year after slowing in 2011, constrained by a 'difficult' global environment and government efforts to cut foreign-worker inflow, Prime Minister Lee Hsien Loong said."

Gilts Climb 17% in 2011, Beating Treasuries, Bunds Amid Europe Debt Crisis

Euro Leaders Aim to Buy Time to Save Currency

Promises Go Out the Window as Spain Undertakes Huge Tax Increase Coupled With Biggest Budget Cut in History; Depression in Spain will Worsen (Mish)

Eurozone is closer to break-up, warns Standard Chartered's Peter Sands

Irish Consumer Lenders' ECB Reliance Rises to 73.1 Billion Euros

## Fault lines/flashpoints/military ##
Iran says it has made its first nuclear fuel rod

Iran fires radar-beating missile during Gulf drill

US Imposes Sanctions on Iran, But With Some Exemptions
"President Barack Obama signed into law on Saturday a defense funding bill that imposes sanctions on financial institutions dealing with Iran's central bank, while allowing for exemptions to avoid upsetting energy markets."

Santorum Would Threaten Strikes Against Iran

Feeling marginalized, some Iraq Sunnis eye autonomy

Gaddafi supporters 'try to blow up Tripoli power grid'
"A Libyan militia chief said on Sunday his fighters had captured nine supporters of otherthrown leader Muammar Gaddafi who had been plotting to blow up Tripoli's power grid on New Year's Eve."

## Global unrest/mob rule/angry people ##
Surging Back Into Zuccotti Park, Protesters Clash With Police

Occupy the Rose Bowl Parade: Protesters gearing up to march behind the roses

4 charged after 2 U.S. flags burned at Occupy Charlotte site

China's labour unrest to continue in 2012

Workers at Tripoli's decaying port go on strike

Funeral of Bahrain youth turns into street protest

## Energy/resources ##

Oil Posts An All-Time Annual High

Natgas price plunge puts heat on producers
"A steep drop in natural gas prices is squeezing the profits of producers such as Southwestern Gas Corp., EXCO Resources and Quicksilver Resources, which may need to shut wells, raise cash, cut staff or seek merger partners in the coming year."
Power outage hits parts of Midtown Detroit

Nigeria fuel subsidy end raises protest fears

Iran ratchets up pressure on Kuwait over gas field

Venezuela to Invest $5 Billion in Orinoco Oil Belt, Chavez Says
Gas prices rise 30 percent in Myanmar for new year

## Got food? ##
New England Cod Crisis Has No Easy Answers

## Intelligence/security/internet/systemic breakdown ##
Insight: West in political crisis has echoes of 1930s

"Dysfunctional politics threatens to deliver a protracted period of slow global growth, possibly lasting well beyond 2012, which will only deepen the political and economic problems for the West."

Peak oil and peak complexity are taking their toll. Systemic breakdown accelerates from here. -- RF

Presenting NSSM 200: "Implications of Worldwide Population Growth For U.S. Security and Overseas Interests"

## Japan ##
In Tsunami Aftermath, 'Road to Future' Unsettles a Village

Noda vows to revive economy through social security, tax reforms

Japan's population decreasing at fastest postwar rate

54% of N-zone evacuees have yet to return

## China ##

China's Jade Cargo grounds planes on weak demand
"China's Jade Cargo International Company Ltd. said Saturday that it had temporarily grounded its fleet of six Boeing 747 freighter planes because of weak demand."
PLA's January Surprises

China Manufacturing Sector Narrowly Avoids Contraction

## UK ##
Housing benefit cuts will put 800,000 homes out of reach, according to study
"Chartered Institute of Housing says families face choice of cutting food bills to pay rent or moving out"
Year's end brings fresh job fears for high-street workers

Everyone Is Starting To Realize The Size Of Britain's Debt Crisis

## US ##
SPX Update: Is Your 401(k) Ready for a 70% Haircut?
Shortage of ADHD drug Adderall seen persisting in 2012
Earthquake Strikes Near Ohio Fracking Site
"Officials said Saturday they believe the latest earthquake activity in northeast Ohio is related to the injection of wastewater into the ground near a fault line, creating enough pressure to cause seismic activity."

Americans buy record numbers of guns for Christmas

2012: Another Bad Year for Store Closings

AES Coal Power Plants in New York State File for Bankruptcy
"AES Corp. (AES) units that either own or lease six coal-fired power plants in New York state sought bankruptcy court protection, citing the depressed economic environment for the electric power industry."

Low 2011 Mortgage Rates Won't Stop 2012 Foreclosure Wave

Urban Institute: Foreclosure backlog to 'take decades to complete'

Catherine Austin Fitts on Wall Street's Corruption, the Austrian School and Who's 'Really' in Charge (Daily Bell)

The Worst Part of the Signing Statement: Section 1024

News Links, January 1, 2012

2011-12-31T16:58:00.000-08:00

## Global economic meltdown ##
IMF: Greece will miss financial targets

"The International Monetary Fund in an official report said Greece's financial situation is worse than previously thought."

Angela Merkel Tells Germany She Will 'Do Everything' to Save Euro in 2012

$6.3 Trillion Wiped Off Global Markets in 2011

Foreign Central Banks Cut Treasury Holdings by Record
"Holdings of U.S. Treasurys by foreign central banks has fallen by a record amount over the past four weeks according to the latest Federal Reserve data."

Spain's Budget Minister says "Serious Budget Shortfalls in All 17 Autonomous Regions"; Primer Minister Announces $19.3 Billion Package of Tax Hikes; Cockroaches and the Theory of the Unexpected

PC Shortfall in 2012 Caused by HDD Shortages: IHS iSuppli
"The flooding in Thailand, which is causing shortages in HDD supplies, will mean 3.8 million fewer PCs shipping in the first-quarter 2012, IHS iSuppli analysts say."

2011 exposed big holes in supply chain
"Two natural disasters demonstrated how vulnerable the computer industry is to the slings and arrows of outrageous fortune. Earlier in the year, the tsunami/earthquake in Japan disrupted multiple manufacturers, some of which are still trying to recover their operations. And floods in Thailand created a massive shortfall in hard drive production, the effects of which are still rippling through the PC supply chain."

The Global Slowdown And Its Implications

New Year's 2012 Shortages Forecast Worldwide, and Not Just Norwegian Butter: A New Yorker's Opinion

## Fault lines/flashpoints/military ##
Unaccountable Killing Machines: The True Cost of U.S. Drones

US seals deal to sell $3.48B in missiles, technology to UAE

"Sale is part of strategy to help friendly Mideast nations keep Iran in check"

Ron Paul: Iran Does Not Threaten Our National Security

Iran delays missile test, ready for nuclear talks

Nigeria president declares emergency in some of north

North Korea names Kim Jong-un top military commander

Power behind Kim Jong-un's throne: the 'Gang of Seven' emerges from the shadows

Iraq celebrates US exit: 'Dawn of a new day'

US Civilians Are Now Helping Decide Who To Kill With Military Drones
Mossad Chief: Iranian Nuclear Weapon Wouldn't Be Existential Threat

## Global unrest/mob rule/angry people ##
Youth protesters, police clash across Bahrain
"Shi'ite youths chanting slogans against Bahrain's royal family clashed with riot police across the Gulf island kingdom Saturday, trying to block highways in a second day of protests, residents said."

Russian protesters arrested in Moscow rally

Syria: protesters rallied in record numbers across the country

## Energy/resources ##
Petroplus shuts 3 oil refineries as cash runs out

Huge power shortages, load shedding in 2012: Shortfall of power generation could cross 4500MW (Pakistan)

The Taps Have Run Dry (Cameroon)
Germany's Wind Power Revolution in the Doldrums
"The construction of offshore wind parks in the North Sea has hit a snag with a vital link to the onshore power grid hopelessly behind schedule. The delays have some reconsidering the ability of wind power to propel Germany into the post-nuclear era."

Oil price ending 2011 near $100 a barrel

Prices of essential goods continue to spiral up (Nepal)

Strike over CNG shortage, price hike cripples life in city (Pakistan)

## Infrastructure scavenging ##
Copper thieves darken streetlights, create road hazards
"Nighttime stretches of road across the USA are being left dark by the theft of copper wiring from streetlights, and police are investigating whether the darkness contributed to some crashes.
"Copper thieves also are hitting traffic lights. The problem is particularly acute for localities where the sour economy has already left coffers bare and officials cannot afford to replace the wiring."

## Got food? ##

State may face food shortage next year (Odisha, India)
Organic Milk: Rising Production Costs Cause Shortage (US)

"The main reason for the shortage is that the cost of organic grain and hay to feed cows has gone up dramatically while the price that farmers received for their milk has not."

Food Safety Disasters 2011: The Deadliest And Strangest Outbreaks Of The Year
Monsanto GMO Seeds Use to Further Expand Within US

## Environment/health ##
Norovirus outbreaks rise (UK)

Man dies of bird flu in southern China

## Intelligence/security/internet/systemic breakdown ##
U.S. court upholds telecom immunity for surveillance

SOPA opponents may go nuclear and other 2012 predictions
Crackpot Anti-Islam Activists, 'Serial Fabricators,' and the Tale of Iran and 9/11 (Gareth Porter)

"Behind a mysterious Dec. 22 Associated Press story about 'finding of fact' by a district judge in Manhattan Friday that Iran assisted al-Qaeda in the planning of the 9/11 attacks is a tapestry of recycled fabrications and distortions of fact from a bizarre cast of characters."

## Japan ##
Japan spent over 14 tril. yen on forex interventions in 2011

Number of new adults sinks to all-time low of 1.2 million

## China ##
China says rebel village was right to complain

If you can't beat 'em, join 'em. -- RF

China to Make Yuan More Convertible: Central Banker
"China is not far from making the yuan convertible under the capital account, central bank governor Zhou Xiaochuan was quoted as saying on Saturday in an interview with a local magazine."
Global economic crisis hits China's exporters

8 in 10 US-listed Chinese solar firms post losses

## UK ##
Jeremy Hunt rejects calls for 'austerity' Olympics

High street braces for wave of failures as La Senza closes 80 shops
"Analysts predict up to 40,000 could lose jobs as lingerie chain joins list of those struggling to contain their debts"

Younger earners leaning on debt relief

House prices will remain stagnant or fall in 2012, economists warn

## US ##
Darker Nights as Some Cities Turn Off the Lights (NYT)
Obama Signs Defense Bill Despite 'Serious Reservations'

30 Statistics That Show That The Middle Class Is Dying Right In Front Of Our Eyes As We Enter 2012

LA police hunt arsonist after 35 fires in Hollywood

US exports record amount of refined fuels

"U.S. refineries exported a record amount of refined fuels in 2011 to markets in South America, Central America and Europe. It was one reason why Americans spent a record amount on gasoline this year: Supplies that might have helped lower prices here had been shipped abroad."

Detroit churches face up to downsizing

After All Those Ups And Downs The Market Ended 2011 Right Where It Started
17 States Still Project Budget Deficits (It Will Get Much Worse); Moving Targets and the Slowing Global Economy

America's new poor (CNN Money video)

It was easy to promise everyone affluence when energy was cheap. -- RF

State revenue rises, but not enough to offset cuts