Archive
Oil Should Spike Higher Following Saudi Riots and Nigerian Elections in April
The following special report on oil (LA Blog Only, leverageacademy.com/blog) discusses the oil market, providing reasons to be bullish on the commodity given unrest in the Middle East, Nigerian elections in April, and rising domestic consumption in oil producing countries, including Venezuela, Nigeria, and Iran. According to the article, the rise of oil prices could easily cause the next recession. In 2010, soft commodities outperformed energy, but that will certainly change given the political headwinds abroad and continued monetary easing in the developed world. Therefore, the Bernanke “Put,” combined with political unrest will be to blame for continued sharp price increases in the energy commodity sector.
Emerging market demand, especially in China, which now consumes nearly 10mm barrels of oil per day, will also be driving the demand side of the equation. Money supply in China was also up 19.7% in 2010, because of the rapid Read more…
The Oil-Food Price Shock
When future historians attempt to trace the origins of the current turmoil in the Middle East, they will find that one of the earliest of the many explosions of rage occurred in Algeria and was triggered by the rising price of food. On January 5, young protesters in Algiers, Oran and other major cities blocked roads, attacked police stations and burned stores in demonstrations against soaring food prices. Other concerns—high unemployment, pervasive corruption, lack of housing—also aroused their ire, but food costs provided the original impulse. As the epicenter of youthful protest moved elsewhere, first to Tunisia and then to Egypt and other countries, the food price issue was subordinated to more explicitly political demands, but it never disappeared. Indeed, the rising cost of food has been a major theme of anti government demonstrations in Jordan, Sudan and Yemen. With the price of most staples still climbing—spurred in part by a parallel surge in oil costs—more such protests are bound to occur.
North Korea Nears Completion of Electromagnetic Pulse Bomb
abcnews
N. Korea Disrupts Current Military Maneuvers With Russian Device To Jam GPS
North Korea appears to be protesting the joint U.S. and South Korean military maneuvers by jamming Global Positioning Devices in the south, which is a nuisance for cell phone and computers users — but is a hint of the looming menace for the military.
The scope of the damage has been minimal, putting some mobile phones and certain military equipment that use GPS signals on the fritz.
Large metropolitan areas including parts of Seoul, Incheon and Paju have been affected by the jamming, but “the situation is getting wrapped up, no severe damage has been reported for the last two days,” Kyoungwoo Lee, deputy director of Korea Communications Commission, said.
The jamming, however, has raised questions about whether the Korean peninsula is bracing for new electronic warfare.
The North is believed to be nearing completion of an electromagnetic pulse bomb that, if exploded 25 miles above ground would cause irreversible damage to electrical and electronic devices such as mobile phones, computers, radio and radar, experts say.
“We assume they are at a considerably substantial level of development,” Park Chang-kyu of the Agency for Defense Development said at a briefing to the parliament Monday.
Park confirmed that South Korea has also developed an advanced Read more…
Oil will go up ‘ballistically’ if unrest shifts to Saudi Arabia, says Marc Faber
INTERNATIONAL. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor sees oil prices extending their bull run despite the 15% run-up this year alone.
In an optimistic scenario demand for oil will rise as the global recovery takes hold, and in a pessimistic scenario prices still go up if the Middle East unrest spreads and crude production is curtailed. In both cases, he says, you should be long energy and energy related shares.
Speaking to CNBC today, Faber said: ” I think long term you should be exposed to energy in either scenario….if you are extra bearish and believe that War World III is going to start soon, as I believe, or in an optimistic scenario”.
Addressing the fundamentals of the oil market, Faber said: “What we had over the last couple of years is essentially a reduction in demand from the developed world, the US, Western Europe and Japan, and continued growth in emerging economies.
“So, if you take a very optimistic view of the world, namely a global economic recovery, demand in the Western World will pick up and demand in the Emerging World will continue to rise strongly, so from a very optimistic point of view you should be long oil,” he recommended.
On the flip side, “in a very pessimistic scenario you have to assume that unrest will shift to Saudi Arabia and other countries in the gulf and at that stage the production is curtailed and in that case obviously oil will go up ballistically.”
Brent crude futures could hit US$200 a barrel if political unrest spreads into Saudi Arabia, Societe Generale said on Monday.
Under what the bank called Geopolitical Scenario 3, “unrest spreads to Read more…
Middle East Unrest Could Harm WMD-Free Zone Talks
Protesters chant slogans on Saturday during a demonstration outside an Egyptian state security building in the outskirts of Cairo. Recent political instability throughout the Middle East could complicate efforts to establish a regional weapons of mass destruction-free zone, current and former officials said (Wissam Nassar/Getty Images).
The unrest and revolutions sweeping through the Middle East have raised doubts over the potential for regional nations to hold previously planned talks focused on forming a weapons of mass destruction-free zone, Arms Control Today reported in its March issue (see GSN, March 1).
At the 2010 Nuclear Nonproliferation Treaty review conference in New York, member nations agreed to hold a 2012 meeting on “the establishment of a Middle East zone free of nuclear weapons and all other weapons of mass destruction.”
“We are absolutely committed” to the WMD-free zone meeting, White House WMD point man Gary Samore said in an interview last month. “But there’s a lot of uncertainty because of the unrest in the Middle East.”
In the last two months, longstanding regimes in Tunisia and Egypt have fallen, and protests in Libya have escalated into full-scale fighting between militants and forces loyal to Col. Muammar Qadhafi. Protests have also erupted in Bahrain, Jordan, Oman and Read more…
People Of Earth: Prepare For Economic Disaster
It is not just the United States that is headed for an economic collapse. The truth is that the entire world is heading for a massive economic meltdown and the people of earth need to be warned about the coming economic disaster that is going to sweep the globe. The current world financial system is based on debt, and there are alarming signs that the gigantic global debt bubble is getting ready to burst. In addition, global prices for the key resources that the major economies of the planet depend on are rising very rapidly. Despite all of our advanced technology, the truth is that human civilization simply cannot function without oil and food. But now the price of oil and the price of food are both increasing dramatically. So how is the current global economy supposed to keep functioning properly if it soon costs much more to ship products between continents? How are the billions of people that are just barely surviving today supposed to feed themselves if the price of food goes up another 30 or 40 percent? For decades, most of the major economies around the globe have been able to Read more…
3 dead, dozens shot in Yemen unrest
 |
| Many protesters are angry at widespread corruption in a country where 40 per cent live on $2 a day or less [Reuters] |
Anti-government unrest continued in Yemen on Tuesday with three people reported dead in a prison riot in support of protests and dozens reported injured when police opened fire on crowds in Sanaa, the Yemeni capital.
Policemen and security agents in civilian clothes opened fire as they tried to prevent people from joining thousands of protesters camped out in front of Sanaa University, witnesses told the Reuters news agency. Three of the injured were said to be in a serious condition.
Meanwhile, three prisoners at a Sanaa prison were reported killed and Read more…
If You Think This Oil Spike Is Temporary, Check Out This Chart
So beyond the Middle East instability trend, there’s a much bigger problem lurking.
China Adds New Limits on Foreigners
A police officer, left, filmed a foreign journalist as street cleaners swept water to keep passersby moving and a plain clothes officer, right, watched pedestrians on Sunday along Wangfujing Street in Beijing, where a protest had been called.
By SHARON LaFRANIERE
BEIJING — Apparently unnerved by an anonymous Internet campaign urging Chinese citizens to emulate protests that have rocked the Middle East, the authorities this week have begun a forceful and carefully targeted clampdown on activities by foreigners that the government deems threatening to Read more…
Iran, China playing key role in establishing new, fair world order
Iran and China could as two ancient civilizations play an effective role in establishing a new justice-based world order, President Mahmoud Ahmadinejad said Tuesday.
He made the remarks in a meeting with the new ambassador of China who was meeting with the Iranian President to submit his credentials to him.
“The current system of the world is old and rotten and its unjust nature has now become clear to everyone,” President Ahmadinejad said stressing that under the present circumstances, the world needed a “new, humanitarian and fair order which could be defined and established with the help of Iran and China.”
Referring to the common economic and political points between Iran and China, President Ahmadinejad said promotion of Tehran-Beijing bilateral ties was one of Iran’s top priorities.
Meanwhile, the Chinese diplomat referred to Iran as a great and ancient civilization which enjoyed a high position among the Middle Eastern states.
He added that Iran has also been playing a great role at the regional and international arenas.
The Chinese ambassador stressed the need to further activating existing potentials to upgrade bilateral cooperation between the two capitals.
![[Most Recent Quotes from www.kitco.com]](https://i0.wp.com/www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](https://i0.wp.com/www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
crisisboom
CRISISBOOM 
You must be logged in to post a comment.