Sheila says goodbye to the ABA
Submitted by Bruce Krasting on 03/16/2011 13:09 -0400
I have gone both ways with Sheila Bair. I have criticized some of what she has done and applauded others. She gave a speech to the America Bankers Association today. She summed things up pretty well. Early on in the presentation she made this significant remark:
This may be my last opportunity to speak with you before the end of my term in June.
Read this to mean that she is out. This is a big job that requires a transition period. A new FDIC head has to be named soon. Given the politics of this position and the daggers being bandied about in D.C. I think this has to come by 4/30. Just six weeks away. Should be interesting.
Given that this was her last opportunity to address all the big bankers in one room it was a good time for Sheila to beat up on the audience:
I would like to propose to you a radical-sounding notion. And it is that increasing the size and profitability of the financial services industry is not – and should not be – the main goal of our national economic policy.
Apparently this woke the audience up. Guys were choking on their bagels. This must have also gotten the coffee cups rattling:
My reading of recent polling data on how the public views banks also speaks to the need for a different approach from your industry. In April 2010, a Pew Research poll found that just 22 percent of respondents rated banks and other financial institutions as having “a positive effect on the way things are going in this country.”
This was lower than the ratings they gave to Congress, the federal government, big business, labor unions, and the entertainment industry.
She warned the banks:
What is important for you to recognize is that this type of reputation risk will eventually have implications for your bottom line and the confidence of your investors and customers.
All this is old news to Zero Hedge readers. But it's a pretty big deal when the outgoing head of the FDIC says it.
Notes:
(I) We have not seen the last of Ms. Bair. I don’t think she is a presidential candidate, but she would make a good VP. Her name is on this list. She might be our next Treasury Secretary. I’m "ABT" (anyone but Tim). She could also run the Fed. Bernanke has erred with QE2. He will take heat for the inflation that is brewing. It just might be that he goes back to Princeton in a year. Her name is definitely on that list.
(II) I finally got around to dumping my accounts with the big banks. I am now with a Community Bank. They do everything the big slobs do. They don’t have branches on every corner. Who cares? Community Banks are now lending. The big guys are not. Their deposit rates are better. Plus you get to say “screw you” to a Morg, a Citi or a BoA.
Wednesday, March 16, 2011
Energy chairman warns US headed toward 1970s-style crisis
Energy chairman warns US headed toward 1970s-style crisis
By Michael O'Brien - 03/14/11 09:02 AM ET
The U.S. could be heading toward an energy crisis of a type unseen since the 1970s, the chairman of the House's Energy panel said.
Rep. Fred Upton (R-Mich.), the chairman of the House Energy and Commerce Committee, warned of elevated prices for gas and other energy sources along the lines of what the U.S. experienced under President Carter.
Asked by the conservative website Newsmax if energy prices were heading toward a '70s-style crisis, Upton said: "Well, we are.
"Who knows where this is going to stop? How long is this turmoil going to last?"
Video of the interview was posted over the weekend.
Upton echoed GOP criticism of President Obama, whom the Michigan Republican blamed for not allowing permits for additional energy exploration, which Upton said would help bring down prices.
The GOP chairman's words are part of a new barrage by Republicans against Obama over the increased price of energy, especially gasoline, in recent weeks. Speaker John Boehner (R-Ohio) led House Republicans in a push against the White House's energy policies last week, and GOP presidential candidates have also joined in the fun; Mississippi Gov. Haley Barbour (R) has been a frequent critic of Obama's energy policies, and will level more criticism in a speech Monday in the president's hometown of Chicago.
The president addressed the increasing energy prices in a Friday news conference, in which he renewed calls for lawmakers to work on energy reforms, including encouraging more efficient technology and some increased energy production. Obama also suggested he would be willing to tap the Strategic Petroleum Reserves to provide relief from prices if they get too high.
He also shot back at Republican critics, who have suggested Obama is purposefully keeping prices high.
"[A]ny notion that my administration has shut down oil production might make for a good political sound bite, but it doesn’t match up with reality," Obama said.
By Michael O'Brien - 03/14/11 09:02 AM ET
The U.S. could be heading toward an energy crisis of a type unseen since the 1970s, the chairman of the House's Energy panel said.
Rep. Fred Upton (R-Mich.), the chairman of the House Energy and Commerce Committee, warned of elevated prices for gas and other energy sources along the lines of what the U.S. experienced under President Carter.
Asked by the conservative website Newsmax if energy prices were heading toward a '70s-style crisis, Upton said: "Well, we are.
"Who knows where this is going to stop? How long is this turmoil going to last?"
Video of the interview was posted over the weekend.
Upton echoed GOP criticism of President Obama, whom the Michigan Republican blamed for not allowing permits for additional energy exploration, which Upton said would help bring down prices.
The GOP chairman's words are part of a new barrage by Republicans against Obama over the increased price of energy, especially gasoline, in recent weeks. Speaker John Boehner (R-Ohio) led House Republicans in a push against the White House's energy policies last week, and GOP presidential candidates have also joined in the fun; Mississippi Gov. Haley Barbour (R) has been a frequent critic of Obama's energy policies, and will level more criticism in a speech Monday in the president's hometown of Chicago.
The president addressed the increasing energy prices in a Friday news conference, in which he renewed calls for lawmakers to work on energy reforms, including encouraging more efficient technology and some increased energy production. Obama also suggested he would be willing to tap the Strategic Petroleum Reserves to provide relief from prices if they get too high.
He also shot back at Republican critics, who have suggested Obama is purposefully keeping prices high.
"[A]ny notion that my administration has shut down oil production might make for a good political sound bite, but it doesn’t match up with reality," Obama said.
Tuesday, March 15, 2011
Bahrain imposes state of emergency
Submitted by: Francis Soyer
The story below is a precurser to what will be a complete shit show that will end badly in Saudi Arabia and WILL send oil to $200-$225 per barrel. To protect purchasing power at the pump Francis is taking a 5% to 10% portfolio position in DBO. At the same time he is also taking a 5% to 10% portfolio position in PSLV to offset the ongoing demise of the USD which is headed to zero over the next 16 to 18 months. Sending love, light and thoughts of peace to the citizens of Bahrain, Mauritania, Afghanistan, Yemen, Cote d'Ivoire, Mali, Eritrea, Libya, Egypt, Pakistan, Haiti, Central African Republic, Niger, Nepal and Sudan. The above countries all experiencing states of protest and revolt.
Middle East
Bahrain imposes state of emergency
Two killed and many wounded in violent clashes as king authorises "all necessary measures to protect safety of country".
Last Modified: 15 Mar 2011 16:57 GMT
The king of Bahrain has declared a state of emergency for three months on the island following weeks of anti-government protests, as deadly clashes continued across the country.
An order by the king "authorised the commander of Bahrain's defence forces to take all necessary measures to protect the safety of the country and its citizens," a statement read out on television on Tuesday said.
The development comes a day after Saudi-led military forces arrived to support the government, which is facing pressure from the Shia majority to implement reforms.
Al Jazeera's correspondent in the capital, Manama, who we are not naming for security reasons, said the declaration of a state of emergency appeared to have been deliberated upon for some time now.
"The last few days Manama has effectively been shut down. So there was a sense that something was going to happen. Then yesterday we had the GCC troops come in," he said.
"I'm standing now in and amongst a demonstration. There are tens of thousands of people streaming past me to the Saudi embassy. There is a great sense of change here."
Renewed clashes
Our correspondent said there was not a visible presence of Saudi troops on the streets in his area, but clashes between protesters and Bahraini security forces continued elsewhere.
He confirmed reports that at least two people were killed in the Shia suburb of Sitra outside of Manama in fighting there on Tuesday.
Abdullah Al Hubaaishi, a Bahraini who was making his way to the protest camp at Pearl Roundabout in Manama, told Al Jazeera that there were many wounded protesters on the streets in Sitra.
"Most of them have been shot," he said. "Those people started attacking the villages and the towns. If there is anybody in the road they will shoot them. If there is nobody in the road they will enter the houses."
Request for assistance
Hundreds of Saudi-led troops entered Bahrain on Monday to help protect government facilities there amid an escalation in the protests against the government.
Local television broadcast images of troops in armoured cars entering the Gulf state via the 26km causeway that connects the kingdom to Saudi Arabia.
The arrival of the troops followed a request to members of the Gulf Co-Operation Council (GCC) from Bahrain.
The United Arab Emirates also sent about 500 police to Bahrain, according to Abdullah bin Zayed Al-Nahyan, the Emirati foreign minister. Qatar, meanwhile, did not rule out the possibility of its troops joining the force.
Sheikh Hamad bin Jassim bin Jabr Al-Thani, the Qatari prime minister and foreign minister, told Al Jazeera: "There are common responsibilities and obligations within the GCC countries.
"The arrival of Saudi and UAE troops in Bahrain is in line with a GCC defence agreement that calls for all members to oblige when needed and to fully co-operate.
"We are committed to adhering to the GCC agreement. At the moment we have peacekeeping troops. We don't have a full force there, but this is up for discussion."
International concern
The US, which counts both Bahrain and Saudi Arabia among its allies, has called for restraint, but has refrained from saying whether it supports the move to deploy troops.
"We urge our GCC (Gulf Co-operation Council) partners to show restraint and respect the rights of the people of Bahrain, and to act in a way that supports dialogue instead of undermining it," Tommy Vietor, the White House spokesman, said on Monday.
Americans are being advised to avoid travelling to the island, which is home to US warships that patrol the Gulf.
Iran, meanwhile, has warned against "foreign interferences".
"The peaceful demonstrations in Bahrain are among the domestic issues of this country, and creating an atmosphere of fear and using other countries' military forces to oppress these demands is not the solution," Hossein Amir Abdollahian, an official from the Iranian foreign ministry, was reported by Iran's semi-official Fars news agency as saying.
Provocation to protesters
Abdel al-Mowada, the deputy chairman of Bahrain's parliament, told Al Jazeera that it was not clear how the Saudi force would be deployed but denied the troops would become a provocation to protesters.
"It is not a lack of security forces in Bahrain, it is a showing of solidarity among the GCC," he told Al Jazeera.
"I don't know if they are going to be in the streets or save certain areas ... [but protesters] blocking the roads are no good for anyone, we should talk.
"The government is willing to get together and make the changes needed, but when the situation is like this, you cannot talk."
The Saudi troops arrived less than 24 hours after Bahraini police clashed with demonstrators in one of the most violent confrontations since troops killed seven protesters last month.
Opposition groups, including Wefaq, the country's largest Shia movement, have spoken out against the use of foreign troops.
"We consider the entry of any soldier or military machinery into the Kingdom of Bahrain's air, sea or land territories a blatant occupation," Wefaq said in a statement.
Bahrain Gets Added to the Official Travel Warning List at U.S. State Department
Submitted by: Francis Soyer
It is now official. Bahrain as of end of day yesterday is on the travel warning list as issued by the State Department. This is not a good sign of things to come as if the world does not have enough problems...
Travel Warning
U.S. DEPARTMENT OF STATE
Bureau of Consular Affairs
March 14, 2011
The U.S. Department of State warns U.S. citizens of the potential for ongoing political and civil unrest in Bahrain. We urge U.S. citizens to defer travel to Bahrain at this time. U.S. citizens currently in Bahrain should consider departing. On March 14, 2011, the Department of State authorized the voluntary departure from Bahrain of eligible family members of U.S. Embassy staff. This Travel Warning replaces the Travel Alert dated February 18, 2011.
Bahrain has experienced a breakdown in law and order in various areas of the country over the last few weeks. Demonstrations have degenerated into violent clashes between police and protesters on several occasions, resulting in injuries. There also have been multiple reports of sectarian groups patrolling areas throughout Bahrain and establishing unofficial vehicle checkpoints. On March 14, 2011, foreign military elements entered Bahrain. Spontaneous demonstrations and violence can be expected throughout the country. There is no indication that U.S. citizens are being threatened or targeted.
While demonstrations have not been directed toward Westerners, U.S. citizens are urged to remain alert to local security developments and to be vigilant regarding their personal security. The U.S. Department of State strongly urges U.S. citizens to avoid all demonstrations, as even peaceful ones can quickly become unruly and a foreigner could become a target of harassment or worse.
The U.S. Embassy in Manama can be reached at (973) 1724-2700; the after-hours emergency number is (973) 1724-2957; the fax number is (973) 1725-6242. Demonstration Notices can be found on the Embassy’s website. U.S. citizens requiring emergency consular assistance may contact the Department via our website by going to the “Middle East and North Africa Situation” site.
U.S. citizens in Bahrain are encouraged to enroll in the Smart Traveler Enrollment Program (STEP). U.S. citizens without internet access may enroll directly at the U.S. Embassy. By enrolling, U.S. citizens make it easier for the Embassy to contact them in case of emergency.
Stratfor On Japan, the Persian Gulf and Energy
Stratfor On Japan, the Persian Gulf and Energy
Submitted by Tyler Durden on 03/15/2011 15:43 -0400
From Stratfor
Japan, the Persian Gulf and Energy
By George Friedman
Over the past week, everything seemed to converge on energy. The unrest in the Persian Gulf raised the specter of the disruption of oil supplies to the rest of the world, and an earthquake in Japan knocked out a string of nuclear reactors with potentially devastating effect. Japan depends on nuclear energy and it depends on the Persian Gulf, which is where it gets most of its oil. It was, therefore, a profoundly bad week for Japan, not only because of the extensive damage and human suffering but also because Japan was being shown that it can’t readily escape the realities of geography.
Japan is the world’s third-largest economy, a bit behind China now. It is also the third-largest industrial economy, behind only the United States and China. Japan’s problem is that its enormous industrial plant is built in a country almost totally devoid of mineral resources. It must import virtually all of the metals and energy that it uses to manufacture industrial products. It maintains stockpiles, but should those stockpiles be depleted and no new imports arrive, Japan stops being an industrial power.
The Geography of Oil
There are multiple sources for many of the metals Japan imports, so that if supplies stop flowing from one place it can get them from other places. The geography of oil is more limited. In order to access the amount of oil Japan needs, the only place to get it is the Persian Gulf. There are other places to get some of what Japan needs, but it cannot do without the Persian Gulf for its oil.
This past week, we saw that this was a potentially vulnerable source. The unrest that swept the western littoral of the Arabian Peninsula and the ongoing tension between the Saudis and Iranians, as well as the tension between Iran and the United States, raised the possibility of disruptions. The geography of the Persian Gulf is extraordinary. It is a narrow body of water opening into a narrow channel through the Strait of Hormuz. Any diminution of the flow from any source in the region, let alone the complete closure of the Strait of Hormuz, would have profound implications for the global economy.
For Japan it could mean more than higher prices. It could mean being unable to secure the amount of oil needed at any price. The movement of tankers, the limits on port facilities and long-term contracts that commit oil to other places could make it impossible for Japan to physically secure the oil it needs to run its industrial plant. On an extended basis, this would draw down reserves and constrain Japan’s economy dramatically. And, obviously, when the world’s third-largest industrial plant drastically slows, the impact on the global supply chain is both dramatic and complex.
In 1973, the Arab countries imposed an oil embargo on the world. Japan, entirely dependent on imported oil, was hit not only by high prices but also by the fact that it could not obtain enough fuel to keep going. While the embargo lasted only five months, the oil shock, as the Japanese called it, threatened Japan’s industrial capability and shocked it into remembering its vulnerability. Japan relied on the United States to guarantee its oil supplies. The realization that the United States couldn’t guarantee those supplies created a political crisis parallel to the economic one. It is one reason the Japanese are hypersensitive to events in the Persian Gulf and to the security of the supply lines running out of the region.
Regardless of other supplies, Japan will always import nearly 100 percent of its oil from other countries. If it cuts its consumption by 90 percent, it still imports nearly 100 percent of its oil. And to the extent that the Japanese economy requires oil — which it does — it is highly vulnerable to events in the Persian Gulf.
It is to mitigate the risk of oil dependency — which cannot be eliminated altogether by any means — that Japan employs two alternative fuels: It is the world’s largest importer of seaborne coal, and it has become the third-largest producer of electricity from nuclear reactors, ranking after the United States and France in total amount produced. One-third of its electricity production comes from nuclear power plants. Nuclear power was critical to both Japan’s industrial and national security strategy. It did not make Japan self-sufficient, since it needed to import coal and nuclear fuel, but access to these resources made it dependent on countries like Australia, which does not have choke points like Hormuz.
It is in this context that we need to understand the Japanese prime minister’s statement that Japan was facing its worst crisis since World War II. First, the earthquake and the resulting damage to several of Japan’s nuclear reactors created a long-term regional energy shortage in Japan that, along with the other damage caused by the earthquake, would certainly affect the economy. But the events in the Persian Gulf also raised the 1973 nightmare scenario for the Japanese. Depending how events evolved, the Japanese pipeline from the Persian Gulf could be threatened in a way that it had not been since 1973. Combined with the failure of several nuclear reactors, the Japanese economy is at risk.
The comparison with World War II was apt since it also began, in a way, with an energy crisis. The Japanese had invaded China, and after the fall of the Netherlands (which controlled today’s Indonesia) and France (which controlled Indochina), Japan was concerned about agreements with France and the Netherlands continuing to be honored. Indochina supplied Japan with tin and rubber, among other raw materials. The Netherlands East Indies supplied oil. When the Japanese invaded Indochina, the United States both cut off oil shipments from the United States and started buying up oil from the Netherlands East Indies to keep Japan from getting it. The Japanese were faced with the collapse of their economy or war with the United States. They chose Pearl Harbor.
Today’s situation is in no way comparable to what happened in 1941 except for the core geopolitical reality. Japan is dependent on imports of raw materials and particularly oil. Anything that interferes with the flow of oil creates a crisis in Japan. Anything that risks a cutoff makes Japan uneasy. Add an earthquake destroying part of its energy-producing plant and you force Japan into a profound internal crisis. However, it is essential to understand what energy has meant to Japan historically — miscalculation about it led to national disaster and access to it remains Japan’s psychological as well as physical pivot.
Japan’s Nuclear Safety Net
Japan is still struggling with the consequences of its economic meltdown in the early 1990s. Rapid growth with low rates of return on capital created a massive financial crisis. Rather than allow a recession to force a wave of bankruptcies and unemployment, the Japanese sought to maintain their tradition of lifetime employment. To do that Japan had to keep interest rates extremely low and accept little or no economic growth. It achieved its goal, relatively low unemployment, but at the cost of a large debt burden and a long-term sluggish economy.
The Japanese were beginning to struggle with the question of what would come after a generation of economic stagnation and full employment. They had clearly not yet defined a path, although there was some recognition that a generation’s economic reality could not sustain itself. The changes that Japan would face were going to be wrenching, and even under the best of circumstances, they would be politically difficult to manage. Suddenly, Japan is not facing the best of circumstances.
It is not yet clear how devastating the nuclear-reactor damage will prove to be, but the situation appears to be worsening. What is clear is that the potential crisis in the Persian Gulf, the loss of nuclear reactors and the rising radiation levels will undermine the confidence of the Japanese. Beyond the human toll, these reactors were Japan’s hedge against an unpredictable world. They gave it control of a substantial amount of its energy production. Even if the Japanese still had to import coal and oil, there at least a part of their energy structure was largely under their own control and secure. Japan’s nuclear power sector seemed invulnerable, which no other part of its energy infrastructure was. For Japan, a country that went to war with the United States over energy in 1941 and was devastated as a result, this was no small thing. Japan had a safety net.
The safety net was psychological as much as anything. The destruction of a series of nuclear reactors not only creates energy shortages and fear of radiation; it also drives home the profound and very real vulnerability underlying all of Japan’s success. Japan does not control the source of its oil, it does not control the sea lanes over which coal and other minerals travel, and it cannot be certain that its nuclear reactors will not suddenly be destroyed. To the extent that economics and politics are psychological, this is a huge blow. Japan lives in constant danger, both from nature and from geopolitics. What the earthquake drove home was just how profound and how dangerous Japan’s world is. It is difficult to imagine another industrial economy as inherently insecure as Japan’s. The earthquake will impose many economic constraints on Japan that will significantly complicate its emergence from its post-boom economy, but one important question is the impact on the political system. Since World War II, Japan has coped with its vulnerability by avoiding international entanglements and relying on its relationship with the United States. It sometimes wondered whether the United States, with its sometimes-unpredictable military operations, was more of a danger than a guarantor, but its policy remained intact.
It is not the loss of the reactors that will shake Japan the most but the loss of the certainty that the reactors were their path to some degree of safety, along with the added burden on the economy. The question is how the political system will respond. In dealing with the Persian Gulf, will Japan continue to follow the American lead or will it decide to take a greater degree of control and follow its own path? The likelihood is that a shaken self-confidence will make Japan more cautious and even more vulnerable. But it is interesting to look at Japanese history and realize that sometimes, and not always predictably, Japan takes insecurity as a goad to self-assertion.
This was no ordinary earthquake in magnitude or in the potential impact on Japan’s view of the world. The earthquake shook a lot of pieces loose, not the least of which were in the Japanese psyche. Japan has tried to convince itself that it had provided a measure of security with nuclear plants and an alliance with the United States. Given the earthquake and situation in the Persian Gulf, recalculation is in order. But Japan is a country that has avoided recalculation for a long time. The question now is whether the extraordinary vulnerability exposed by the quake will be powerful enough to shake Japan into recalculating its long-standing political system.
This report is republished with permission of STRATFOR
Submitted by Tyler Durden on 03/15/2011 15:43 -0400
From Stratfor
Japan, the Persian Gulf and Energy
By George Friedman
Over the past week, everything seemed to converge on energy. The unrest in the Persian Gulf raised the specter of the disruption of oil supplies to the rest of the world, and an earthquake in Japan knocked out a string of nuclear reactors with potentially devastating effect. Japan depends on nuclear energy and it depends on the Persian Gulf, which is where it gets most of its oil. It was, therefore, a profoundly bad week for Japan, not only because of the extensive damage and human suffering but also because Japan was being shown that it can’t readily escape the realities of geography.
Japan is the world’s third-largest economy, a bit behind China now. It is also the third-largest industrial economy, behind only the United States and China. Japan’s problem is that its enormous industrial plant is built in a country almost totally devoid of mineral resources. It must import virtually all of the metals and energy that it uses to manufacture industrial products. It maintains stockpiles, but should those stockpiles be depleted and no new imports arrive, Japan stops being an industrial power.
The Geography of Oil
There are multiple sources for many of the metals Japan imports, so that if supplies stop flowing from one place it can get them from other places. The geography of oil is more limited. In order to access the amount of oil Japan needs, the only place to get it is the Persian Gulf. There are other places to get some of what Japan needs, but it cannot do without the Persian Gulf for its oil.
This past week, we saw that this was a potentially vulnerable source. The unrest that swept the western littoral of the Arabian Peninsula and the ongoing tension between the Saudis and Iranians, as well as the tension between Iran and the United States, raised the possibility of disruptions. The geography of the Persian Gulf is extraordinary. It is a narrow body of water opening into a narrow channel through the Strait of Hormuz. Any diminution of the flow from any source in the region, let alone the complete closure of the Strait of Hormuz, would have profound implications for the global economy.
For Japan it could mean more than higher prices. It could mean being unable to secure the amount of oil needed at any price. The movement of tankers, the limits on port facilities and long-term contracts that commit oil to other places could make it impossible for Japan to physically secure the oil it needs to run its industrial plant. On an extended basis, this would draw down reserves and constrain Japan’s economy dramatically. And, obviously, when the world’s third-largest industrial plant drastically slows, the impact on the global supply chain is both dramatic and complex.
In 1973, the Arab countries imposed an oil embargo on the world. Japan, entirely dependent on imported oil, was hit not only by high prices but also by the fact that it could not obtain enough fuel to keep going. While the embargo lasted only five months, the oil shock, as the Japanese called it, threatened Japan’s industrial capability and shocked it into remembering its vulnerability. Japan relied on the United States to guarantee its oil supplies. The realization that the United States couldn’t guarantee those supplies created a political crisis parallel to the economic one. It is one reason the Japanese are hypersensitive to events in the Persian Gulf and to the security of the supply lines running out of the region.
Regardless of other supplies, Japan will always import nearly 100 percent of its oil from other countries. If it cuts its consumption by 90 percent, it still imports nearly 100 percent of its oil. And to the extent that the Japanese economy requires oil — which it does — it is highly vulnerable to events in the Persian Gulf.
It is to mitigate the risk of oil dependency — which cannot be eliminated altogether by any means — that Japan employs two alternative fuels: It is the world’s largest importer of seaborne coal, and it has become the third-largest producer of electricity from nuclear reactors, ranking after the United States and France in total amount produced. One-third of its electricity production comes from nuclear power plants. Nuclear power was critical to both Japan’s industrial and national security strategy. It did not make Japan self-sufficient, since it needed to import coal and nuclear fuel, but access to these resources made it dependent on countries like Australia, which does not have choke points like Hormuz.
It is in this context that we need to understand the Japanese prime minister’s statement that Japan was facing its worst crisis since World War II. First, the earthquake and the resulting damage to several of Japan’s nuclear reactors created a long-term regional energy shortage in Japan that, along with the other damage caused by the earthquake, would certainly affect the economy. But the events in the Persian Gulf also raised the 1973 nightmare scenario for the Japanese. Depending how events evolved, the Japanese pipeline from the Persian Gulf could be threatened in a way that it had not been since 1973. Combined with the failure of several nuclear reactors, the Japanese economy is at risk.
The comparison with World War II was apt since it also began, in a way, with an energy crisis. The Japanese had invaded China, and after the fall of the Netherlands (which controlled today’s Indonesia) and France (which controlled Indochina), Japan was concerned about agreements with France and the Netherlands continuing to be honored. Indochina supplied Japan with tin and rubber, among other raw materials. The Netherlands East Indies supplied oil. When the Japanese invaded Indochina, the United States both cut off oil shipments from the United States and started buying up oil from the Netherlands East Indies to keep Japan from getting it. The Japanese were faced with the collapse of their economy or war with the United States. They chose Pearl Harbor.
Today’s situation is in no way comparable to what happened in 1941 except for the core geopolitical reality. Japan is dependent on imports of raw materials and particularly oil. Anything that interferes with the flow of oil creates a crisis in Japan. Anything that risks a cutoff makes Japan uneasy. Add an earthquake destroying part of its energy-producing plant and you force Japan into a profound internal crisis. However, it is essential to understand what energy has meant to Japan historically — miscalculation about it led to national disaster and access to it remains Japan’s psychological as well as physical pivot.
Japan’s Nuclear Safety Net
Japan is still struggling with the consequences of its economic meltdown in the early 1990s. Rapid growth with low rates of return on capital created a massive financial crisis. Rather than allow a recession to force a wave of bankruptcies and unemployment, the Japanese sought to maintain their tradition of lifetime employment. To do that Japan had to keep interest rates extremely low and accept little or no economic growth. It achieved its goal, relatively low unemployment, but at the cost of a large debt burden and a long-term sluggish economy.
The Japanese were beginning to struggle with the question of what would come after a generation of economic stagnation and full employment. They had clearly not yet defined a path, although there was some recognition that a generation’s economic reality could not sustain itself. The changes that Japan would face were going to be wrenching, and even under the best of circumstances, they would be politically difficult to manage. Suddenly, Japan is not facing the best of circumstances.
It is not yet clear how devastating the nuclear-reactor damage will prove to be, but the situation appears to be worsening. What is clear is that the potential crisis in the Persian Gulf, the loss of nuclear reactors and the rising radiation levels will undermine the confidence of the Japanese. Beyond the human toll, these reactors were Japan’s hedge against an unpredictable world. They gave it control of a substantial amount of its energy production. Even if the Japanese still had to import coal and oil, there at least a part of their energy structure was largely under their own control and secure. Japan’s nuclear power sector seemed invulnerable, which no other part of its energy infrastructure was. For Japan, a country that went to war with the United States over energy in 1941 and was devastated as a result, this was no small thing. Japan had a safety net.
The safety net was psychological as much as anything. The destruction of a series of nuclear reactors not only creates energy shortages and fear of radiation; it also drives home the profound and very real vulnerability underlying all of Japan’s success. Japan does not control the source of its oil, it does not control the sea lanes over which coal and other minerals travel, and it cannot be certain that its nuclear reactors will not suddenly be destroyed. To the extent that economics and politics are psychological, this is a huge blow. Japan lives in constant danger, both from nature and from geopolitics. What the earthquake drove home was just how profound and how dangerous Japan’s world is. It is difficult to imagine another industrial economy as inherently insecure as Japan’s. The earthquake will impose many economic constraints on Japan that will significantly complicate its emergence from its post-boom economy, but one important question is the impact on the political system. Since World War II, Japan has coped with its vulnerability by avoiding international entanglements and relying on its relationship with the United States. It sometimes wondered whether the United States, with its sometimes-unpredictable military operations, was more of a danger than a guarantor, but its policy remained intact.
It is not the loss of the reactors that will shake Japan the most but the loss of the certainty that the reactors were their path to some degree of safety, along with the added burden on the economy. The question is how the political system will respond. In dealing with the Persian Gulf, will Japan continue to follow the American lead or will it decide to take a greater degree of control and follow its own path? The likelihood is that a shaken self-confidence will make Japan more cautious and even more vulnerable. But it is interesting to look at Japanese history and realize that sometimes, and not always predictably, Japan takes insecurity as a goad to self-assertion.
This was no ordinary earthquake in magnitude or in the potential impact on Japan’s view of the world. The earthquake shook a lot of pieces loose, not the least of which were in the Japanese psyche. Japan has tried to convince itself that it had provided a measure of security with nuclear plants and an alliance with the United States. Given the earthquake and situation in the Persian Gulf, recalculation is in order. But Japan is a country that has avoided recalculation for a long time. The question now is whether the extraordinary vulnerability exposed by the quake will be powerful enough to shake Japan into recalculating its long-standing political system.
This report is republished with permission of STRATFOR
Monday, March 14, 2011
Thursday, March 3, 2011
Frontrunning: March 3
Frontrunning: March 3
Submitted by Tyler Durden on 03/03/2011 08:06 -0500
•Why the Dollar's Reign Is Near an End (WSJ)
•Take a bow Hatzius: John Taylor takes apart Goldman's economic "achemists and quacks" (Bloomberg) - This is what happens when you sellout to the propaganda machine
•William Cohan joins the tinfoil hat brigade - A Conspiracy With a Silver Lining (NYT)
•Gaddafi strikes oil areas, Arabs weigh peace plan (Reuters)
•No criminal charges ever: Officials Disagree on Penalties for Mortgage Mess (NYT)
•Bernanke Sees 200,000 Hit to Jobs from Budget Cuts (Reuters)
•It's Taps For the Still Weakening Dollar (RCM)
•Asia Moves to Shore Up Strategic Oil Reserves (FT)
•Beijing home sales slump in February (China Daily)
•ECB Set to Deliver Inflation Warning (WSJ)
•Obama "outraged" by attack in Germany (Reuters)
•Europe Must Plan a Reform, Not a Pact (FT)
•Merkel names ally as new defence minister (FT)
•Congress Approves Temporary Budget Bill, Avoids Shutdown (BusinessWeek)
•Gross Says Treasury Yields Too Low as Fed Approaches End of Asset Buying (Bloomberg)
•Mukherjee Signals Higher Oil May Spur India Subsidy, Risk Deficit-Cut Plan (Bloomberg)
European economic highlights:
•Euro-Zone PMI Composite for February 58.2 - lower than expected. Consensus 58.4. Previous 58.4.
•Euro-Zone PMI Services for February 56.8 - lower than expected. Consensus 57.2. Previous 57.2.
•Euro-Zone GDP for Q4 0.3% q/q 2.0% y/y – in line with expectations. Consensus 0.3% q/q 2.0% y/y. Previous 0.3% q/q 2.0% y/y.
•Euro-Zone Retail Sales for January 0.4% m/m 0.7% y/y - higher than expected. Consensus 0.3% m/m 0.0% y/y. Previous -0.6% m/m -0.9% y/y.
•Germany Retail Sales for January 1.4% m/m 2.6% y/y - higher than expected. Consensus 0.5% m/m 1.7% y/y. Previous -0.3% m/m -1.3% y/y.
•Germany PMI Services for February 58.6 - lower than expected. Consensus 59.5. Previous 59.5.
•France PMI Services for February 59.7 - lower than expected. Consensus 60.8. Previous 60.8.
•Italy PMI Services for February 53.1 - higher than expected. Consensus 51.1. Previous 49.9.
•Italy PPI for January 1.1% m/m 5.2% y/y - higher than expected. Consensus 0.9% m/m 4.6% y/y. Previous 0.6% m/m 4.6% y/y.
•UK PMI Services 52.6 - lower than expected. Consensus 53.7. Previous 54.5.
•ECB Announces Interest Rates. Consensus 1.00%. Previous 1.00%.
Submitted by Tyler Durden on 03/03/2011 08:06 -0500
•Why the Dollar's Reign Is Near an End (WSJ)
•Take a bow Hatzius: John Taylor takes apart Goldman's economic "achemists and quacks" (Bloomberg) - This is what happens when you sellout to the propaganda machine
•William Cohan joins the tinfoil hat brigade - A Conspiracy With a Silver Lining (NYT)
•Gaddafi strikes oil areas, Arabs weigh peace plan (Reuters)
•No criminal charges ever: Officials Disagree on Penalties for Mortgage Mess (NYT)
•Bernanke Sees 200,000 Hit to Jobs from Budget Cuts (Reuters)
•It's Taps For the Still Weakening Dollar (RCM)
•Asia Moves to Shore Up Strategic Oil Reserves (FT)
•Beijing home sales slump in February (China Daily)
•ECB Set to Deliver Inflation Warning (WSJ)
•Obama "outraged" by attack in Germany (Reuters)
•Europe Must Plan a Reform, Not a Pact (FT)
•Merkel names ally as new defence minister (FT)
•Congress Approves Temporary Budget Bill, Avoids Shutdown (BusinessWeek)
•Gross Says Treasury Yields Too Low as Fed Approaches End of Asset Buying (Bloomberg)
•Mukherjee Signals Higher Oil May Spur India Subsidy, Risk Deficit-Cut Plan (Bloomberg)
European economic highlights:
•Euro-Zone PMI Composite for February 58.2 - lower than expected. Consensus 58.4. Previous 58.4.
•Euro-Zone PMI Services for February 56.8 - lower than expected. Consensus 57.2. Previous 57.2.
•Euro-Zone GDP for Q4 0.3% q/q 2.0% y/y – in line with expectations. Consensus 0.3% q/q 2.0% y/y. Previous 0.3% q/q 2.0% y/y.
•Euro-Zone Retail Sales for January 0.4% m/m 0.7% y/y - higher than expected. Consensus 0.3% m/m 0.0% y/y. Previous -0.6% m/m -0.9% y/y.
•Germany Retail Sales for January 1.4% m/m 2.6% y/y - higher than expected. Consensus 0.5% m/m 1.7% y/y. Previous -0.3% m/m -1.3% y/y.
•Germany PMI Services for February 58.6 - lower than expected. Consensus 59.5. Previous 59.5.
•France PMI Services for February 59.7 - lower than expected. Consensus 60.8. Previous 60.8.
•Italy PMI Services for February 53.1 - higher than expected. Consensus 51.1. Previous 49.9.
•Italy PPI for January 1.1% m/m 5.2% y/y - higher than expected. Consensus 0.9% m/m 4.6% y/y. Previous 0.6% m/m 4.6% y/y.
•UK PMI Services 52.6 - lower than expected. Consensus 53.7. Previous 54.5.
•ECB Announces Interest Rates. Consensus 1.00%. Previous 1.00%.
Texaco dumped 18b gallons of toxicwaste and 17m gallons oil into Amazon waterways
(CNN) -- A judge in Ecuador this week awarded $8.64 billion to Ecuadorian residents of the Amazon who had sued Chevron for years of crude oil pollution, but both sides said Tuesday they will appeal the verdict.
Chevron charges the verdict against them is the "product of fraud," and the plaintiffs say the size of the award is too small in comparison to what would be needed to do a real cleanup.
Luis Yanza, speaking for the residents' group the Assembly of those Affected by Chevron, said at a news conference that the ruling was "historic" and a "collective victory." However, he said, "Eight billion dollars doesn't represent a significant amount to repair the environmental damages."
The judgment against Chevron is the latest in 18 years of litigation between the Amazon residents and Texaco, which was later purchased by Chevron. It was decided in a courtroom in the Amazon by Judge Nicolas Zambrano.
For its part, Chevron said it will also appeal.
"The Ecuadorian court's judgment is illegitimate and unenforceable," said Chevron, in a press release Monday. "It is the product of fraud and is contrary to the legitimate scientific evidence."
Both sides have until Friday to file their appeals.
Despite the pending appeal, one of the local leaders, Humberto Piaguaje, called the judgment a victory for the population that lives in the oil-producing area in northern Ecuador.
"The judge did justice and has seen reality," he said. "We know that this is only one part of our fight and we will continue until there is justice and the damage is healed. The world should know that what happened in the Amazon and our fight for life, for justice."
The case, Aguinda v. ChevronTexaco, was originally filed in New York in 1993 on behalf of 30,000 inhabitants of Ecuador's Amazon region. The suit was eventually transferred to the Ecuadorian court and Ecuadorian jurisdiction.
The lawsuit alleges that Texaco used a variety of substandard production practices in Ecuador that resulted in pollution that decimated several indigenous groups in the area, according to a fact sheet provided by the Amazon Defense Coalition.
According to the group, Chevron has admitted that Texaco dumped more than 18 billion gallons of toxic waste into Amazon waterways, abandoned more than 900 waste pits, burned millions of cubic meters of gases with no controls and spilled more than 17 million gallons of oil due to pipeline ruptures.
Cancer and other health problems were reported at higher rates in the area, the group says.
Chevron charges the verdict against them is the "product of fraud," and the plaintiffs say the size of the award is too small in comparison to what would be needed to do a real cleanup.
Luis Yanza, speaking for the residents' group the Assembly of those Affected by Chevron, said at a news conference that the ruling was "historic" and a "collective victory." However, he said, "Eight billion dollars doesn't represent a significant amount to repair the environmental damages."
The judgment against Chevron is the latest in 18 years of litigation between the Amazon residents and Texaco, which was later purchased by Chevron. It was decided in a courtroom in the Amazon by Judge Nicolas Zambrano.
For its part, Chevron said it will also appeal.
"The Ecuadorian court's judgment is illegitimate and unenforceable," said Chevron, in a press release Monday. "It is the product of fraud and is contrary to the legitimate scientific evidence."
Both sides have until Friday to file their appeals.
Despite the pending appeal, one of the local leaders, Humberto Piaguaje, called the judgment a victory for the population that lives in the oil-producing area in northern Ecuador.
"The judge did justice and has seen reality," he said. "We know that this is only one part of our fight and we will continue until there is justice and the damage is healed. The world should know that what happened in the Amazon and our fight for life, for justice."
The case, Aguinda v. ChevronTexaco, was originally filed in New York in 1993 on behalf of 30,000 inhabitants of Ecuador's Amazon region. The suit was eventually transferred to the Ecuadorian court and Ecuadorian jurisdiction.
The lawsuit alleges that Texaco used a variety of substandard production practices in Ecuador that resulted in pollution that decimated several indigenous groups in the area, according to a fact sheet provided by the Amazon Defense Coalition.
According to the group, Chevron has admitted that Texaco dumped more than 18 billion gallons of toxic waste into Amazon waterways, abandoned more than 900 waste pits, burned millions of cubic meters of gases with no controls and spilled more than 17 million gallons of oil due to pipeline ruptures.
Cancer and other health problems were reported at higher rates in the area, the group says.
Chavez: U.S. distorting situation in Libya ‘to justify an invasion’
Chavez: U.S. distorting situation in Libya ‘to justify an invasion’
Catherine E. Shoichet,
CNN
March 2, 2011
Venezuelan President Hugo Chavez claims U.S. criticism of Libyan leader Moammar Gadhafi has a clear aim: military invasion.
“Let’s not get carried away by the drums of war, because the United States, I am sure that they are exaggerating and distorting things to justify an invasion,” Chavez said Monday, according to Venezuelan state media.
At a Monday meeting of the U.N. Human Rights Council in Geneva, Switzerland, U.S. Secretary of State Hillary Clinton said the United States was exploring “all possible options,” and that “nothing is off the table so long as the Libyan government continues to threaten and kill Libyan citizens.”
Asked at a news conference Monday whether the United States planned an imminent military response in Libya, Clinton said, “No.”
Speaking Monday in the Venezuelan capital, Caracas, Chavez proposed sending an international committee to Libya to mediate and help develop a peaceful solution to unrest in the North African country.
"Instead of sending Marines and tanks and planes, why don't we send a goodwill commission to try to help so that they do not continue killing in Libya? They are our brothers," he said in a speech televised on the government-run network.
Chavez and Gadhafi have a close relationship, having bonded partly over shared opposition to U.S. global influence.
At a lavish Tripoli celebration commemorating 40 years of Gadhafi's leadership in 2009, the two leaders sat side by side during a two-hour military parade. That same year, a new football stadium in Benghazi, Libya, was named after the Venezuelan leader.
As rumors swirled about Gadhafi and his whereabouts last week, some suggested that he may be en route to Venezuela. Those reports proved to be false; the Libyan leader later spoke publicly in Tripoli.
But the close ties between the two leaders remain strong. On Monday, Chavez said Gadhafi "has been my friend and our friend for a long time" in remarks broadcast on Venezuelan state television.
"We must be cautious. We know what our policy is: We do not support invasions or massacres or anything, no matter who does it. But there is no doubt that, regarding Libya, a campaign of lies is being woven -- the same that has been woven about Venezuela for a long time," he said.
The U.N. Security Council over the weekend voted for tough restrictions and possible war crimes charges against the Libyan regime.
The Security Council measures -- which include an arms embargo, an asset freeze and travel bans for Gadhafi and members of his family and associates -- also referred the situation unfolding in Libya to the International Criminal Court.
White House press secretary Jay Carney said Monday that the U.S. government was considering the possibility of imposing a no-fly zone over Libya.
"Col. Gadhafi and those around him must be held accountable for these acts, which violate international legal obligations and common decency. Through their actions, they have lost the legitimacy to govern," Clinton said Monday.
"And the people of Libya have made themselves clear: It is time for Gadhafi to go, now, without further violence or delay."
Catherine E. Shoichet,
CNN
March 2, 2011
Venezuelan President Hugo Chavez claims U.S. criticism of Libyan leader Moammar Gadhafi has a clear aim: military invasion.
“Let’s not get carried away by the drums of war, because the United States, I am sure that they are exaggerating and distorting things to justify an invasion,” Chavez said Monday, according to Venezuelan state media.
At a Monday meeting of the U.N. Human Rights Council in Geneva, Switzerland, U.S. Secretary of State Hillary Clinton said the United States was exploring “all possible options,” and that “nothing is off the table so long as the Libyan government continues to threaten and kill Libyan citizens.”
Asked at a news conference Monday whether the United States planned an imminent military response in Libya, Clinton said, “No.”
Speaking Monday in the Venezuelan capital, Caracas, Chavez proposed sending an international committee to Libya to mediate and help develop a peaceful solution to unrest in the North African country.
"Instead of sending Marines and tanks and planes, why don't we send a goodwill commission to try to help so that they do not continue killing in Libya? They are our brothers," he said in a speech televised on the government-run network.
Chavez and Gadhafi have a close relationship, having bonded partly over shared opposition to U.S. global influence.
At a lavish Tripoli celebration commemorating 40 years of Gadhafi's leadership in 2009, the two leaders sat side by side during a two-hour military parade. That same year, a new football stadium in Benghazi, Libya, was named after the Venezuelan leader.
As rumors swirled about Gadhafi and his whereabouts last week, some suggested that he may be en route to Venezuela. Those reports proved to be false; the Libyan leader later spoke publicly in Tripoli.
But the close ties between the two leaders remain strong. On Monday, Chavez said Gadhafi "has been my friend and our friend for a long time" in remarks broadcast on Venezuelan state television.
"We must be cautious. We know what our policy is: We do not support invasions or massacres or anything, no matter who does it. But there is no doubt that, regarding Libya, a campaign of lies is being woven -- the same that has been woven about Venezuela for a long time," he said.
The U.N. Security Council over the weekend voted for tough restrictions and possible war crimes charges against the Libyan regime.
The Security Council measures -- which include an arms embargo, an asset freeze and travel bans for Gadhafi and members of his family and associates -- also referred the situation unfolding in Libya to the International Criminal Court.
White House press secretary Jay Carney said Monday that the U.S. government was considering the possibility of imposing a no-fly zone over Libya.
"Col. Gadhafi and those around him must be held accountable for these acts, which violate international legal obligations and common decency. Through their actions, they have lost the legitimacy to govern," Clinton said Monday.
"And the people of Libya have made themselves clear: It is time for Gadhafi to go, now, without further violence or delay."
US Mint is cutting back on allocations of American Silver Eagles
Bill Haynes, President of CMI Gold & Silver, one of the largest dealers in the United States informed King World News today that the US Mint is cutting back on allocations of American Silver Eagles and this is resulting in higher premiums. Haynes told KWN in a phone interview, “Today the US Mint notified its eleven authorized purchasers that their allotments are being reduced and as a result the authorized purchasers increased their premiums to the dealers.”
Bill Haynes continues:
“Eric, the Mint sold about 10 million ounces of American Silver Eagles so far this year, 6.4 million in January and about half that in February. The Mint had no problem producing those record quantities, but now the US Mint is cutting allocations to its authorized distributors. There is a glitch somewhere but we just don’t know what it is.”
King World News also contacted the US Mint today to get a direct comment from them regarding a story that they had suspended production of Silver Amercan Eagles. As it turns out this information which was taken off of the US Mint’s website is over a year old. In a telephone interview with King World News Michael White of the US Mint stated, “This language was on our web site over a year ago when we did not produce American Eagle Silver Uncirculated Coins. The site will be updated shortly.”
We will have to wait and see what the update is from the US Mint, but we do know that Bill Haynes, a veteran of nearly four decades in the gold and silver business has confirmed a reduction in allotments of Silver American Eagles and an increase in premiums.
Bill Haynes continues:
“Eric, the Mint sold about 10 million ounces of American Silver Eagles so far this year, 6.4 million in January and about half that in February. The Mint had no problem producing those record quantities, but now the US Mint is cutting allocations to its authorized distributors. There is a glitch somewhere but we just don’t know what it is.”
King World News also contacted the US Mint today to get a direct comment from them regarding a story that they had suspended production of Silver Amercan Eagles. As it turns out this information which was taken off of the US Mint’s website is over a year old. In a telephone interview with King World News Michael White of the US Mint stated, “This language was on our web site over a year ago when we did not produce American Eagle Silver Uncirculated Coins. The site will be updated shortly.”
We will have to wait and see what the update is from the US Mint, but we do know that Bill Haynes, a veteran of nearly four decades in the gold and silver business has confirmed a reduction in allotments of Silver American Eagles and an increase in premiums.
Ron Paul: Fall of the Federal Empire
Ron Paul: Fall of the Federal Empire
7 hours ago - FOXBusiness 8:43
1083 views
Congressman Ron Paul, (R-Texas), on Bernanke?s testimony on the Hill and what the future will be for the Arabs in the Middle East.
http://finance.yahoo.com/video/economy-18773128/ron-paul-fall-of-the-federal-empire-24394905
7 hours ago - FOXBusiness 8:43
1083 views
Congressman Ron Paul, (R-Texas), on Bernanke?s testimony on the Hill and what the future will be for the Arabs in the Middle East.
http://finance.yahoo.com/video/economy-18773128/ron-paul-fall-of-the-federal-empire-24394905
Board Member of Goldman Sachs and Procter & Gamble Charged in Insider Trading Scheme
Board Member of Goldman Sachs and Procter & Gamble Charged in Insider Trading Scheme
FOR IMMEDIATE RELEASE
2011-53
Washington, D.C., March 1, 2011 – The Securities and Exchange Commission today announced insider trading charges against a Westport, Conn.-based business consultant who has served on the boards of directors at Goldman Sachs and Procter & Gamble for illegally tipping Galleon Management founder and hedge fund manager Raj Rajaratnam with inside information about the quarterly earnings at both firms as well as an impending $5 billion investment by Berkshire Hathaway in Goldman.
The SEC’s Division of Enforcement alleges that Rajat K. Gupta, a friend and business associate of Rajaratnam, provided him with confidential information learned during board calls and in other aspects of his duties on the Goldman and P&G boards. Rajaratnam used the inside information to trade on behalf of some of Galleon’s hedge funds, or shared the information with others at his firm who then traded on it ahead of public announcements by the firms. The insider trading by Rajaratnam and others generated more than $18 million in illicit profits and loss avoidance. Gupta was at the time a direct or indirect investor in at least some of these Galleon hedge funds, and had other potentially lucrative business interests with Rajaratnam.
FOR IMMEDIATE RELEASE
2011-53
Washington, D.C., March 1, 2011 – The Securities and Exchange Commission today announced insider trading charges against a Westport, Conn.-based business consultant who has served on the boards of directors at Goldman Sachs and Procter & Gamble for illegally tipping Galleon Management founder and hedge fund manager Raj Rajaratnam with inside information about the quarterly earnings at both firms as well as an impending $5 billion investment by Berkshire Hathaway in Goldman.
The SEC’s Division of Enforcement alleges that Rajat K. Gupta, a friend and business associate of Rajaratnam, provided him with confidential information learned during board calls and in other aspects of his duties on the Goldman and P&G boards. Rajaratnam used the inside information to trade on behalf of some of Galleon’s hedge funds, or shared the information with others at his firm who then traded on it ahead of public announcements by the firms. The insider trading by Rajaratnam and others generated more than $18 million in illicit profits and loss avoidance. Gupta was at the time a direct or indirect investor in at least some of these Galleon hedge funds, and had other potentially lucrative business interests with Rajaratnam.
Gates: Libyan no-fly zone would mean widespread air strikes
Gates: Libyan no-fly zone would mean widespread air strikes
By John T. Bennett - 03/02/11 02:41 PM ET
Defense Secretary Robert Gates on Wednesday said the U.S. military could establish a no-fly zone over Libya, but he cautioned that doing so would first require widespread air strikes across that nation.
“If it’s ordered, we can do it,” Gates told the House Appropriations's Defense subcommittee.
But establishing control of Libyan air space would “start with attacks to destroy” Libyan air defense systems. That kind of assault would require more U.S. military aircraft than “you would find on a single aircraft carrier.”
With so many fighter jets involved in other conflicts, the needed additional jets would have to be redeployed.
Gates told the panel that U.S. military involvement in Libya would require Congress to approve a use-of-force measure.
Adm. Michael Mullen, Joint Chiefs chairman, reiterated on Wednesday that U.S. security officials have still been unable to confirm that Libyan military jets fired on opposition members.
White House press secretary Jay Carney and Secretary of State Hillary Clinton in separate appearances on Wednesday said all options remain on the table.
The White House on Wednesday insisted that there were no inconsistencies in administration policy when it comes to the no-fly zone.
"The fact that the no-fly zone idea is complex does not mean it's not on the table," Carney said. "We have not ruled any options out."
This story was posted at 11:42 a.m. and updated at 2:41 p.m.
By John T. Bennett - 03/02/11 02:41 PM ET
Defense Secretary Robert Gates on Wednesday said the U.S. military could establish a no-fly zone over Libya, but he cautioned that doing so would first require widespread air strikes across that nation.
“If it’s ordered, we can do it,” Gates told the House Appropriations's Defense subcommittee.
But establishing control of Libyan air space would “start with attacks to destroy” Libyan air defense systems. That kind of assault would require more U.S. military aircraft than “you would find on a single aircraft carrier.”
With so many fighter jets involved in other conflicts, the needed additional jets would have to be redeployed.
Gates told the panel that U.S. military involvement in Libya would require Congress to approve a use-of-force measure.
Adm. Michael Mullen, Joint Chiefs chairman, reiterated on Wednesday that U.S. security officials have still been unable to confirm that Libyan military jets fired on opposition members.
White House press secretary Jay Carney and Secretary of State Hillary Clinton in separate appearances on Wednesday said all options remain on the table.
The White House on Wednesday insisted that there were no inconsistencies in administration policy when it comes to the no-fly zone.
"The fact that the no-fly zone idea is complex does not mean it's not on the table," Carney said. "We have not ruled any options out."
This story was posted at 11:42 a.m. and updated at 2:41 p.m.
China "Attacks The Dollar"
China "Attacks The Dollar" - Moves To Further Cement Renminbi Reserve Currency StatusSubmitted by Tyler Durden on 03/02/2011 20:24 -0500
In a surprising turn of events, today's biggest piece of news received a mere two paragraph blurb on Reuters, and was thoroughly ignored by the broader media. An announcement appeared shortly after midnight on the website of the People's Bank of China. Reuters provides a simple translation and summary of the announcement: "China hopes to allow all exporters and importers to settle their cross-border trades in the yuan by this year, the central bank said on Wednesday, as part of plans to grow the currency's international role. In a statement on its website www.pbc.gov.cn, the central bank said it would respond to overseas demand for the yuan to be used as a reserve currency. It added it would also allow the yuan to flow back into China more easily." To all those who claim that China is perfectly happy with the status quo, in which it is willing to peg the Renmibni to the Dollar in perpetuity, this may come as a rather unpleasant surprise, as it indicates that suddenly China is far more vocal about its intention to convert its currency to reserve status, and in the process make the dollar even more insignificant.
A less diplomatic version implies that the relationship between China and the US would suffer a seismic shift in which the game theoretical model of Mutual Assured Destruction, and symbiotic monetary and fiscal policies, would no longer exist, allowing China to pursue its fate completely independent of any economic shocks that the increasingly distressed United States may be going through.
And confirming that the PBoC announcement is far more serious than the amount of airtime allotted to it by the mainstream media, is the just released article in Spiegel "China Attacked the Dollar" (google translated):
The Chinese central bank surprised with a spectacular announcement: The would-be superpower wants to handle their entire future foreign trade in yuan, not in dollars. Beijing shakes America's claim to represent the key currency - with serious consequences for the U.S..
The announcement was inconspicuous , but it has the potential, to permanently change the balance of power on the world currency market: China strengthens the international role of the yuan. All exporters and importers will, this year, be allowed to settle their business with their foreign partners in Yuan, the central bank said on Wednesday in Beijing.
This will respond to the growing importance of the yuan as a global reserve currency. "The market demand for cross-border use of the yuan rises," said the central bank. The PBoC had previously tested this plan by allowing 67 000 enterprises in 20 provinces to run their business abroad in yuan. The trade volume amounted to the equivalent of €56 billion.
Now the amount of yuan to be extended, it should be handled much more business in Chinese currency - and less in the U.S. Chinese companies trade at present often in dollars, they are thus dependent on the decisions of the U.S. Federal Reserve to pay on it in a rising oil price and will have pay higher transaction fees than necessary. That should change now.
Currently, the People's Republic can hardly take yuan out of the country and even that is monitored within the boundary of all legitimate capital flows. Chinese exporters have to change a large part of their euro, yen or dollars at a fixed rate revenue in yuan. Foreign companies wishing to do business in China must do so in Yuan, they can exchange their money in the People's Republic. Tourists are allowed a maximum of 20,000 yuan and exporting. Yuan an international market can not occur - and not on supply and demand-based exchange rate.
Needless to say, should the yuan be seen increasingly as a reserve currency, all of this, and virtually everything else is about to change.
The only question is whether or not the Yuan will cement its status at the top of the currency pyramid by allowing the backing of the currency with individual or a basket of commodities. If that were to happen, it would be the last nail in the coffin of the already terminally ill dollar.
In a surprising turn of events, today's biggest piece of news received a mere two paragraph blurb on Reuters, and was thoroughly ignored by the broader media. An announcement appeared shortly after midnight on the website of the People's Bank of China. Reuters provides a simple translation and summary of the announcement: "China hopes to allow all exporters and importers to settle their cross-border trades in the yuan by this year, the central bank said on Wednesday, as part of plans to grow the currency's international role. In a statement on its website www.pbc.gov.cn, the central bank said it would respond to overseas demand for the yuan to be used as a reserve currency. It added it would also allow the yuan to flow back into China more easily." To all those who claim that China is perfectly happy with the status quo, in which it is willing to peg the Renmibni to the Dollar in perpetuity, this may come as a rather unpleasant surprise, as it indicates that suddenly China is far more vocal about its intention to convert its currency to reserve status, and in the process make the dollar even more insignificant.
A less diplomatic version implies that the relationship between China and the US would suffer a seismic shift in which the game theoretical model of Mutual Assured Destruction, and symbiotic monetary and fiscal policies, would no longer exist, allowing China to pursue its fate completely independent of any economic shocks that the increasingly distressed United States may be going through.
And confirming that the PBoC announcement is far more serious than the amount of airtime allotted to it by the mainstream media, is the just released article in Spiegel "China Attacked the Dollar" (google translated):
The Chinese central bank surprised with a spectacular announcement: The would-be superpower wants to handle their entire future foreign trade in yuan, not in dollars. Beijing shakes America's claim to represent the key currency - with serious consequences for the U.S..
The announcement was inconspicuous , but it has the potential, to permanently change the balance of power on the world currency market: China strengthens the international role of the yuan. All exporters and importers will, this year, be allowed to settle their business with their foreign partners in Yuan, the central bank said on Wednesday in Beijing.
This will respond to the growing importance of the yuan as a global reserve currency. "The market demand for cross-border use of the yuan rises," said the central bank. The PBoC had previously tested this plan by allowing 67 000 enterprises in 20 provinces to run their business abroad in yuan. The trade volume amounted to the equivalent of €56 billion.
Now the amount of yuan to be extended, it should be handled much more business in Chinese currency - and less in the U.S. Chinese companies trade at present often in dollars, they are thus dependent on the decisions of the U.S. Federal Reserve to pay on it in a rising oil price and will have pay higher transaction fees than necessary. That should change now.
Currently, the People's Republic can hardly take yuan out of the country and even that is monitored within the boundary of all legitimate capital flows. Chinese exporters have to change a large part of their euro, yen or dollars at a fixed rate revenue in yuan. Foreign companies wishing to do business in China must do so in Yuan, they can exchange their money in the People's Republic. Tourists are allowed a maximum of 20,000 yuan and exporting. Yuan an international market can not occur - and not on supply and demand-based exchange rate.
Needless to say, should the yuan be seen increasingly as a reserve currency, all of this, and virtually everything else is about to change.
The only question is whether or not the Yuan will cement its status at the top of the currency pyramid by allowing the backing of the currency with individual or a basket of commodities. If that were to happen, it would be the last nail in the coffin of the already terminally ill dollar.
Tuesday, March 1, 2011
Muslim Brotherhood Plans Day of Rage for March 3rd in D.C.
Feb 21,2011
Whether or not Muslim extremists Anjem Choudary, Abu Izzadeen and Sayful Islam will actually be able to pull it off or not remains to be seen. However, the trio are planning to stand on American soil in front of the White House on March 3 and proclaim a “call to arms” in which they will , “call for Sharia law to be established across the U.S.,” according to the Daily Mail on Sunday.
Anjem Choudary is the same extremist who has insisted that the Islamic flag will one day fly over the White House. He also said that he anticipates that thousands will turnout. Whether that is a bunch of psychological warfare or there has truly been some focused organizing going on behind the scenes will eventually become evident.
Meanwhile, the AP has reported that Moammar Gadhafi has declared that if Libya ends up in a civil war, that there will be oil wells in Libya that go up in flames.
To make matters even more interesting, Haaretz reported on Sunday that Iranian warships have made it through the Suez Canal while Al Jazeera reports that Egypt is denying the claim.
If a crowd ends up being drawn to the White House on March 3, it’s possible that the U.S. government will be in shut-down mode anyway given the fact that Reuters reported on Sunday that there has been some talk of a government shutdown if lawmakers can’t agree on a budget. It was also noted that the government is only funded through March 4. One can’t help but wonder if America would have Sharia law thrust upon it if the Republicans were to leave the state like the Democrats did in Wisconsin.
It would seem that Brigitte Gabriel’s warning about the attempt of Muslim Extremists to force an Islamic government into power in the United States is beginning to manifest. The Arab Christian is the founder and president of ACT! for America and has written a bestselling book entitled They Must Be Stopped: Why We Must Defeat Radical Islam and How We Can Do It. She told One News Now earlier this month that, “I actually dedicate a chapter to the Muslim Brotherhood's project for North America -- not only to what they have done in the Middle East and their goals of bringing back an Islamic government totalitarian regime worldwide, but their plan to the United States as well.”
She also stated that, “We not only have the fox watching the hen house; we have the fox inside the hen house right now," she notes. "This is why Obama is being wishy-washy on what's happening in Egypt, because the Obama administration right now is basically taking advice on Middle East policy from the Muslim Brotherhood front organizations in America."
It will certainly be interesting to see just how all the convenient crises brewing in DC will be taken advantage of in the coming days.
Whether or not Muslim extremists Anjem Choudary, Abu Izzadeen and Sayful Islam will actually be able to pull it off or not remains to be seen. However, the trio are planning to stand on American soil in front of the White House on March 3 and proclaim a “call to arms” in which they will , “call for Sharia law to be established across the U.S.,” according to the Daily Mail on Sunday.
Anjem Choudary is the same extremist who has insisted that the Islamic flag will one day fly over the White House. He also said that he anticipates that thousands will turnout. Whether that is a bunch of psychological warfare or there has truly been some focused organizing going on behind the scenes will eventually become evident.
Meanwhile, the AP has reported that Moammar Gadhafi has declared that if Libya ends up in a civil war, that there will be oil wells in Libya that go up in flames.
To make matters even more interesting, Haaretz reported on Sunday that Iranian warships have made it through the Suez Canal while Al Jazeera reports that Egypt is denying the claim.
If a crowd ends up being drawn to the White House on March 3, it’s possible that the U.S. government will be in shut-down mode anyway given the fact that Reuters reported on Sunday that there has been some talk of a government shutdown if lawmakers can’t agree on a budget. It was also noted that the government is only funded through March 4. One can’t help but wonder if America would have Sharia law thrust upon it if the Republicans were to leave the state like the Democrats did in Wisconsin.
It would seem that Brigitte Gabriel’s warning about the attempt of Muslim Extremists to force an Islamic government into power in the United States is beginning to manifest. The Arab Christian is the founder and president of ACT! for America and has written a bestselling book entitled They Must Be Stopped: Why We Must Defeat Radical Islam and How We Can Do It. She told One News Now earlier this month that, “I actually dedicate a chapter to the Muslim Brotherhood's project for North America -- not only to what they have done in the Middle East and their goals of bringing back an Islamic government totalitarian regime worldwide, but their plan to the United States as well.”
She also stated that, “We not only have the fox watching the hen house; we have the fox inside the hen house right now," she notes. "This is why Obama is being wishy-washy on what's happening in Egypt, because the Obama administration right now is basically taking advice on Middle East policy from the Muslim Brotherhood front organizations in America."
It will certainly be interesting to see just how all the convenient crises brewing in DC will be taken advantage of in the coming days.
U.S. stock index futures pared gains on Tuesday as crude oil prices advanced.
LATEST NEWS
Stock futures pare gains as crude oil rises
NEW YORK (Reuters) - U.S. stock index futures pared gains on Tuesday as crude oil prices advanced.
Full Article
Bernanke to tread cautiously before Congress
March 01, 2011 02:36 AM ET
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke will likely remain skeptical about the strength of the economic recovery in testimony on Tuesday, despite recent data pointing to improvement, signaling the central bank is unlikely to cut short its $600 billion stimulus plan.
Full Article
February auto sales seen up but oil risk looms
March 01, 2011 03:48 AM ET
DETROIT (Reuters) - U.S. auto sales are expected to show a gain of about 20 percent from the still-depressed levels of a year earlier in February, but the recent rise in oil prices could slow or even derail the industry's recovery, analysts and industry executives say.
Full Article
Morgan Stanley hit by China-based hackers: report
March 01, 2011 07:17 AM ET
NEW YORK (Reuters) - Morgan Stanley experienced a "very sensitive" break-in to its network by the same China-based hackers who attacked Google Inc's computers more than a year ago, Bloomberg reported, citing leaked emails from an Internet security company.
Full Article
World factory input costs rising sharply
March 01, 2011 06:21 AM ET
LONDON/BEIJING (Reuters) - Factory input costs leapt across the globe in February, the latest sign of rising inflationary pressures, while euro zone manufacturing grew at its fastest in nearly 10 years, surveys showed on Tuesday.
Full Article
US TOP NEWS
Gaddafi deploys forces as world raises Libya pressure
March 01, 2011 07:40 AM ET
TRIPOLI (Reuters) - Libyan leader Muammar Gaddafi despatched forces to a western border area on Tuesday in defiance of Western military and economic pressure, stirring fears that the bloodiest Arab revolt may grow more violent.
Full Article
Wisconsin governor gives Democrats ultimatum
March 01, 2011 07:11 AM ET
MADISON, Wisc. (Reuters) - Republican Governor Scott Walker on Monday gave absent Democratic lawmakers an ultimatum to return to Wisconsin within 24 hours and vote on a proposal to reduce the power of public sector unions or the state would miss out on a huge debt restructuring.
Full Article
Blackstone buys Centro's U.S. malls for $9.4 billion
March 01, 2011 12:35 AM ET
SYDNEY (Reuters) - Private equity firm Blackstone Group LP has bought nearly 600 U.S. shopping malls from Australia's debt-laden Centro Properties for $9.4 billion in one of the biggest global property deals since the credit crisis.
Full Article
Government shutdown unlikely, but budget battle remains
February 28, 2011 06:32 PM ET
WASHINGTON (Reuters) - A deal to avert a government shutdown took shape in Congress on Monday, but the short-term spending measure would do nothing to resolve the bitter debate over federal spending.
Full Article
Lawmakers question Medicare payment contractors
March 01, 2011 12:13 AM ET
WASHINGTON (Reuters) - Democratic senators on Tuesday expressed concern that companies hired to help pay and oversee medical claims under the Medicare health insurance program may have costly conflicts of interest.
Full Article
Stock futures pare gains as crude oil rises
NEW YORK (Reuters) - U.S. stock index futures pared gains on Tuesday as crude oil prices advanced.
Full Article
Bernanke to tread cautiously before Congress
March 01, 2011 02:36 AM ET
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke will likely remain skeptical about the strength of the economic recovery in testimony on Tuesday, despite recent data pointing to improvement, signaling the central bank is unlikely to cut short its $600 billion stimulus plan.
Full Article
February auto sales seen up but oil risk looms
March 01, 2011 03:48 AM ET
DETROIT (Reuters) - U.S. auto sales are expected to show a gain of about 20 percent from the still-depressed levels of a year earlier in February, but the recent rise in oil prices could slow or even derail the industry's recovery, analysts and industry executives say.
Full Article
Morgan Stanley hit by China-based hackers: report
March 01, 2011 07:17 AM ET
NEW YORK (Reuters) - Morgan Stanley experienced a "very sensitive" break-in to its network by the same China-based hackers who attacked Google Inc's computers more than a year ago, Bloomberg reported, citing leaked emails from an Internet security company.
Full Article
World factory input costs rising sharply
March 01, 2011 06:21 AM ET
LONDON/BEIJING (Reuters) - Factory input costs leapt across the globe in February, the latest sign of rising inflationary pressures, while euro zone manufacturing grew at its fastest in nearly 10 years, surveys showed on Tuesday.
Full Article
US TOP NEWS
Gaddafi deploys forces as world raises Libya pressure
March 01, 2011 07:40 AM ET
TRIPOLI (Reuters) - Libyan leader Muammar Gaddafi despatched forces to a western border area on Tuesday in defiance of Western military and economic pressure, stirring fears that the bloodiest Arab revolt may grow more violent.
Full Article
Wisconsin governor gives Democrats ultimatum
March 01, 2011 07:11 AM ET
MADISON, Wisc. (Reuters) - Republican Governor Scott Walker on Monday gave absent Democratic lawmakers an ultimatum to return to Wisconsin within 24 hours and vote on a proposal to reduce the power of public sector unions or the state would miss out on a huge debt restructuring.
Full Article
Blackstone buys Centro's U.S. malls for $9.4 billion
March 01, 2011 12:35 AM ET
SYDNEY (Reuters) - Private equity firm Blackstone Group LP has bought nearly 600 U.S. shopping malls from Australia's debt-laden Centro Properties for $9.4 billion in one of the biggest global property deals since the credit crisis.
Full Article
Government shutdown unlikely, but budget battle remains
February 28, 2011 06:32 PM ET
WASHINGTON (Reuters) - A deal to avert a government shutdown took shape in Congress on Monday, but the short-term spending measure would do nothing to resolve the bitter debate over federal spending.
Full Article
Lawmakers question Medicare payment contractors
March 01, 2011 12:13 AM ET
WASHINGTON (Reuters) - Democratic senators on Tuesday expressed concern that companies hired to help pay and oversee medical claims under the Medicare health insurance program may have costly conflicts of interest.
Full Article
Silver Hits Fresh Post Hunt Brother High Of $34.43 On News Saudi Has Sent Tanks To Bahrain
Silver Hits Fresh Post Hunt Brother High Of $34.43 On News Saudi Has Sent Tanks To Bahrain
Submitted by Tyler Durden on 03/01/2011 07:12 -0500
Middle East Newspaper Saudi Arabia
If RIA Novosti's update on the Middle East escalation is correct, the Middle East's worst kept secret, that Saudi Arabia would interfere militarily in Bahrain before the country fell, has just been confirmed. From RIA: "Saudi Arabia has sent dozens of tanks to Bahrain, where anti-government protests continue for about two weeks, Egypt's Al-Masry Al-Youm newspaper said on Tuesday. Eyewitnesses reported seeing "15 tank carriers carrying two tanks each heading towards Bahrain" along the 25-km King Fahd causeway, which links the small island nation of Bahrain to Saudi Arabia." And while nobody expects the DXY to do much if anything on this news, now that the dollar is irrelevant in the FX realm, the same can not be said about silver. Silver just hit $34.43 minutes ago, the highest print in the last 31 years.
More from RIA:
Protestors are mainly Shiites account for about 70% of the Bahraini population, but have long complained of discrimination and other abuses by the Sunni Khalifa dynasty that has ruled the tiny Gulf nation for more than two centuries.
In the worst unrest in the kingdom since the 1990s, a wave of protests swept across Bahrain in the past weeks. At least six people were killed and hundreds injured in clashes with police.
Opposition threatens to hold more protests and a nationwide strike if the government refuses to resign.
And a confirming report from Press TV:
Pro-democracy protests in Bahrain have shown no sign of decline after almost two weeks. The protesters are demanding the resignation of the government, constitutional reforms and the king's abdication.
Witnesses said that the causeway was blocked as "15 tank carriers carrying two tanks each were heading towards Bahrain," Egypt's al-Masry al-Youm daily reported in its latest edition.
Given the popular protests in the Persian Gulf kingdom, the transfer of the military hardware from Saudi Arabia to Bahrain seems highly unusual, commuters traveling along the 25-km causeway said.
The development follows a decision by the Bahraini military on Saturday to withdraw their vehicles out of the capital's Pearl Square after a deadly police attack on protesters, a condition the opposition had set to begin talks.
The arrival of tanks from Saudi Arabia also occurs on the eve of yet another scheduled pro-democracy rally on Tuesday organized by the Bahraini opposition and protesters in Manama's flashpoint Pearl Square.
Massive protests in Bahrain, which hosts the US Navy's Fifth Fleet in the region, have shown no sign of a decline after almost two weeks.
The protesters are demanding the resignation of the government, constitutional reforms and the king's abdication.
Fears of Saudi intervention in the ongoing Bahraini uprising first came to the fore last week when unconfirmed reports emerged on Wednesday.
Submitted by Tyler Durden on 03/01/2011 07:12 -0500
Middle East Newspaper Saudi Arabia
If RIA Novosti's update on the Middle East escalation is correct, the Middle East's worst kept secret, that Saudi Arabia would interfere militarily in Bahrain before the country fell, has just been confirmed. From RIA: "Saudi Arabia has sent dozens of tanks to Bahrain, where anti-government protests continue for about two weeks, Egypt's Al-Masry Al-Youm newspaper said on Tuesday. Eyewitnesses reported seeing "15 tank carriers carrying two tanks each heading towards Bahrain" along the 25-km King Fahd causeway, which links the small island nation of Bahrain to Saudi Arabia." And while nobody expects the DXY to do much if anything on this news, now that the dollar is irrelevant in the FX realm, the same can not be said about silver. Silver just hit $34.43 minutes ago, the highest print in the last 31 years.
More from RIA:
Protestors are mainly Shiites account for about 70% of the Bahraini population, but have long complained of discrimination and other abuses by the Sunni Khalifa dynasty that has ruled the tiny Gulf nation for more than two centuries.
In the worst unrest in the kingdom since the 1990s, a wave of protests swept across Bahrain in the past weeks. At least six people were killed and hundreds injured in clashes with police.
Opposition threatens to hold more protests and a nationwide strike if the government refuses to resign.
And a confirming report from Press TV:
Pro-democracy protests in Bahrain have shown no sign of decline after almost two weeks. The protesters are demanding the resignation of the government, constitutional reforms and the king's abdication.
Witnesses said that the causeway was blocked as "15 tank carriers carrying two tanks each were heading towards Bahrain," Egypt's al-Masry al-Youm daily reported in its latest edition.
Given the popular protests in the Persian Gulf kingdom, the transfer of the military hardware from Saudi Arabia to Bahrain seems highly unusual, commuters traveling along the 25-km causeway said.
The development follows a decision by the Bahraini military on Saturday to withdraw their vehicles out of the capital's Pearl Square after a deadly police attack on protesters, a condition the opposition had set to begin talks.
The arrival of tanks from Saudi Arabia also occurs on the eve of yet another scheduled pro-democracy rally on Tuesday organized by the Bahraini opposition and protesters in Manama's flashpoint Pearl Square.
Massive protests in Bahrain, which hosts the US Navy's Fifth Fleet in the region, have shown no sign of a decline after almost two weeks.
The protesters are demanding the resignation of the government, constitutional reforms and the king's abdication.
Fears of Saudi intervention in the ongoing Bahraini uprising first came to the fore last week when unconfirmed reports emerged on Wednesday.
Monday, February 28, 2011
Mish's Global Economic Trend Analysis
Mish's Global Economic Trend Analysis
______________________________________
• Arab World Embraces Israeli’s YouTube "Zenga Zenga" Spoof of Qaddafi Rant; Two Versions, With and Without Dancers
• China Cracks Down on Mid-East Style Protests With Water Canons; Police Blanket Shanghai, Beijing; Internet Search for "Egypt" and "Tunisia" Blocked
• Libyan Rebels Tighten Ring Around Tripoli; Oman Sultan Reshuffles Cabinet After Protests
• Massive Rout in Irish Elections; Collision Course with the EU; Default the Best Option for Ireland
Arab World Embraces Israeli’s YouTube "Zenga Zenga" Spoof of Qaddafi Rant; Two Versions, With and Without Dancers
Posted: 27 Feb 2011 04:27 PM PST
The New York Times reports Arab World Embraces Israeli’s YouTube Spoof of Qaddafi Rant.
A satirical YouTube clip mocking Col. Muammar el-Qaddafi’s megalomania is fast becoming a popular token of the Libya uprising across Middle East. And in an added affront to Colonel Qaddafi, it was created by an Israeli living in Tel Aviv.
Noy Alooshe, 31, an Israeli journalist, musician and Internet buff, said he saw Colonel Qaddafi’s televised speech last Tuesday in which the Libyan leader vowed to hunt down protesters “inch by inch, house by house, home by home, alleyway by alleyway,” and immediately identified it as a “classic hit.”
“He was dressed strangely, and he raised his arms” like at a trance party, Mr. Alooshe said in a telephone interview on Sunday. Then there were Colonel Qaddafi’s words with their natural beat.
Mr. Alooshe spent a few hours at the computer, using Auto-Tune pitch corrector technology to set the speech to the music of “Hey Baby,” a 2010 electro hip-hop song by American rapper Pitbull, featuring another artist, T-Pain. He titled it “Zenga-Zenga,” echoing Col. Qaddafi’s repetition of the word zanqa, Arabic for alleyway.
Mr. Alooshe said he was a little worried that if the Libyan leader survived, he could send one of his sons after him. But he said it was “also very exciting to be making waves in the Arab world as an Israeli.”
As one surfer wrote in an Arabic talkback early Sunday, “What’s the problem if he’s an Israeli? The video is still funny.” He signed off with the international cyber-laugh, “Hahaha.”
Two Versions, With and Without Dancers
original smash hit with dancers
Zenga Zenga Original Link: http://www.youtube.com/watch?v=cBY-0n4esNY
revised version without dancers
Zenga Zenga Revised Link: http://www.youtube.com/watch?v=6GcUutnU2gk
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.
______________________________________
• Arab World Embraces Israeli’s YouTube "Zenga Zenga" Spoof of Qaddafi Rant; Two Versions, With and Without Dancers
• China Cracks Down on Mid-East Style Protests With Water Canons; Police Blanket Shanghai, Beijing; Internet Search for "Egypt" and "Tunisia" Blocked
• Libyan Rebels Tighten Ring Around Tripoli; Oman Sultan Reshuffles Cabinet After Protests
• Massive Rout in Irish Elections; Collision Course with the EU; Default the Best Option for Ireland
Arab World Embraces Israeli’s YouTube "Zenga Zenga" Spoof of Qaddafi Rant; Two Versions, With and Without Dancers
Posted: 27 Feb 2011 04:27 PM PST
The New York Times reports Arab World Embraces Israeli’s YouTube Spoof of Qaddafi Rant.
A satirical YouTube clip mocking Col. Muammar el-Qaddafi’s megalomania is fast becoming a popular token of the Libya uprising across Middle East. And in an added affront to Colonel Qaddafi, it was created by an Israeli living in Tel Aviv.
Noy Alooshe, 31, an Israeli journalist, musician and Internet buff, said he saw Colonel Qaddafi’s televised speech last Tuesday in which the Libyan leader vowed to hunt down protesters “inch by inch, house by house, home by home, alleyway by alleyway,” and immediately identified it as a “classic hit.”
“He was dressed strangely, and he raised his arms” like at a trance party, Mr. Alooshe said in a telephone interview on Sunday. Then there were Colonel Qaddafi’s words with their natural beat.
Mr. Alooshe spent a few hours at the computer, using Auto-Tune pitch corrector technology to set the speech to the music of “Hey Baby,” a 2010 electro hip-hop song by American rapper Pitbull, featuring another artist, T-Pain. He titled it “Zenga-Zenga,” echoing Col. Qaddafi’s repetition of the word zanqa, Arabic for alleyway.
Mr. Alooshe said he was a little worried that if the Libyan leader survived, he could send one of his sons after him. But he said it was “also very exciting to be making waves in the Arab world as an Israeli.”
As one surfer wrote in an Arabic talkback early Sunday, “What’s the problem if he’s an Israeli? The video is still funny.” He signed off with the international cyber-laugh, “Hahaha.”
Two Versions, With and Without Dancers
original smash hit with dancers
Zenga Zenga Original Link: http://www.youtube.com/watch?v=cBY-0n4esNY
revised version without dancers
Zenga Zenga Revised Link: http://www.youtube.com/watch?v=6GcUutnU2gk
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.
Subscribe to:
Posts (Atom)