Pilgrim
Wugger
Hehe, glad to see the world is still ending...
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Hehe, glad to see the world is still ending...
...over at the Riksbank in Stockholm, it's been panic stations. Latvia, just across the Baltic Sea, has been trying to raise cash to fund its surging public deficit. And it failed to raise a penny, or in Latvia's case, a 'lat', in its latest treasury auction.
Why? Latvia is in big trouble – its foreign debt needing re-funding this year is equal to 320% of GDP, says Fitch Ratings. And international investors didn't want to lend any more. If Latvia can't somehow cadge the money it needs, either the IMF – which is already imposing bailout terms - steps in, or the country goes bust.
...even if a Latvian bust won't nuke the whole system, it can still do serious damage. "Latvia has vast repercussions for the region", says Bartosz Pawlowski of BNP Paribas, "if the currency breaks in Latvia, it's likely to break in Estonia and Lithuania, perhaps Bulgaria, affecting other countries like Romania".
In other words, Europe's own sub-prime disaster is brewing. With £1.3 trillion of exposure to Eastern Europe, Western European banks are set to stack up enough losses to keep them in the recovery ward for years. That would cripple their ability to make future loans – and be very bad news for the eurozone, as well as the share prices of 'cyclical' stocks which need an economic rebound.
Well people would have to realize what the t&c's of the financial instruments that they choose to engage deals with are. Either way, no one is perfect, we are learning and moving forward.
In my view, the underlying problem is the fact that the current level of debt (by individuals, businesses, and governments) cannot be maintained, unless we have a growing economy. The reason we need a growing economy for the debt system to work is the fact that a person can borrow from tomorrow, only if tomorrow is better than today. (This is especially the case if loans require the payment of interest.) But if tomorrow is worse than today, borrowing from the future doesn't work. Even if tomorrow is the same as today, the system doesn't work, if loans need to be paid back with interest.
The problem is that the economy cannot grow unless oil production is truly rising. This lack of growth in world oil production since 2005 is what is causing the debt collapse we are now seeing. This debt collapse is in turn giving rise to the demand destruction we are seeing currently. Since oil production cannot rise in the future, it seems to me that we are going to see a continuing unwind of the credit bubble that was made possible by rising oil production. Without credit, people will be unable to buy cars and houses. Businesses will be unable to finance new investment, and we will see greater and greater demand destruction.
The result will be oil prices dropping, more and more people unemployed, and fewer goods and services purchased. In short, the whole system will unwind from the demand side. At some point, there may be a major break, if the international financial system cannot stand the strain. There may also be political upheaval, both in oil producing countries (because the price is too low) and in oil consuming nations (because more and more people are out of work). The results are likely not to be very nice.
If you really are arguing in good faith, and really are worried about the current situation, then you deserve a reply.
Don't worry about it. If the world is too full, mother nature will respond. She always has and always will. I just love the way humans think they can fight nature. Hurricane Katrina told New Orleans a different tale.
Hydrogen, a most-explosive, clean fuel is all around us. 70% of the world's surface is covered by a substance that is 66% hydrogen. All we need to do is to have Exxon relinquish the patents for cheap hydrogen extraction from water and we're saved. And they will; when oil hits $1000 a barrel and everyone is driving powered unicycles. Come on, std, you know it's there. They have the world's greatest minds in 18hour a day think tanks to come up with things they can patent. The company earns over $ 500 billion a year in revenue. Do you really believe a company with those resources does not have the answer?
If mother nature does not respond, the West will just think up another excuse (swine flu?) to send UNICEF through Africa, vaccinating kiddies with diseases their immune systems can't fight. They will die and leave Africa weak(er) and ripe for the taking. The second Colonial era will follow.
What the world needs is a crisis. A crisis to make it forget its bull**** international human rights bull****. A war or a plague that ravages 50% of the world;s population. It'll come, I promise you. We probably won't be around to see it.
Then, the over-populated West and East will fight like dogs over Africa, destroying much of each other. The winner will claim Africa, the most beautiful, resource-rich continent in the world.
http://www.sciencedaily.com/releases/2009/04/090406102555.htm
Do you really think this is breaking news? Exxon Mobil is one of the main inhibitors of the Green Revolution. It gains threefold. 1: It owns the patents (the good ones) to alternative fuel sources, thus keeping oil demand high. 2: By agreeing with the Greenies, it effectively helps shoot the oil price into the stars. 3: When oil is unaffordable, (long before it's finished) Exxon will "discover" this brilliant new way of creating clean energy.
Solar, geothermal, wind; all "clean". All readily available. Problem is, they are owned.
Money can buy everything. Lawyers, politicians, etc. And Exxon's got money.
http://www.sciencedaily.com/releases/2009/04/090406102555.htm
Do you really think this is breaking news? Exxon Mobil is one of the main inhibitors of the Green Revolution. It gains threefold. 1: It owns the patents (the good ones) to alternative fuel sources, thus keeping oil demand high. 2: By agreeing with the Greenies, it effectively helps shoot the oil price into the stars. 3: When oil is unaffordable, (long before it's finished) Exxon will "discover" this brilliant new way of creating clean energy.
Solar, geothermal, wind; all "clean". All readily available. Problem is, they are owned.
Money can buy everything. Lawyers, politicians, etc. And Exxon's got money.