‘Skunked’: Bill Gross On How ‘The U.S. Will Likely Default On Its Debt’

Captain Obvious strikes again.

More from Bill Gross:

PIMCO Total Return, The World’s Largest Bond Fund, Dumps All US Government Debt Holdings

PIMCO’s Bill Gross: US Treasuries Are Not Safe And ‘Most Overvalued’ Bonds

PIMCO’s Bill Gross: ‘No Way Out’ of Debt Trap, US Living Standards Doomed to Fall

PIMCO’s Bill Gross Asks The $64,000 Question: ‘Who Will Buy Treasuries When The Fed Doesn’t?’ His Answer: ‘I Don’t Know’; Gross Is Getting Out Of Risk


In a letter focusing on what has been well known to Zero Hedge readers for about two years now, Bill Gross’ latest investment outlook does the usual attack of Beltway stupidity (as if Congress is in any way competent of making math-related decisions – they do what Wall Street – that’s you Bill! – tell them to do, and you know it), emphasizing the impossible math of total US entitlement liabilities (on a net present value basis), which Gross estimates at $75 trillion. That Gross conclusion is predetermined from the onset is not surprising: “Unless entitlements are substantially reformed, I am confident that this country will default on its debt; not in conventional ways, but by picking the pocket of savers via a combination of less observable, yet historically verifiable policies – inflation, currency devaluation and low to negative real interest rates.”

Then again, that America is bankrupt is not really news to anyone. Neither is it news, that Gross, as we first reported, no longer has any US bonds to dispose of. What will be news is the inflection point at which Gross starts purchasing Treasuries once again. And after all with $220 billion in AUM in the Total Return Fund, what else will he do: hold on to cash? Buy Netflix? Then the only question will be how Gross spins the inevitable capitulation of the re-hypocrisy trade, validating that he, in a narrow sense, and PIMCO in a broad one, is perhaps the biggest cog in the very system that Bill spends so many hours writing letters about and complaining against. But yes, even that won’t be all that surprising to us. After all, in this bizarro world absolutely everything is now priced in.

From PIMCO

Skunked

  • Medicare, Medicaid and Social Security now account for 44% of total federal spending and are steadily rising.
  • Previous Congresses (and Administrations) have relied on the assumption that we can grow our way out of this onerous debt burden.
  • Unless entitlements are substantially reformed, the U.S. will likely default on its debt; not in conventional ways, but via inflation, currency devaluation and low to negative real interest rates.

Read more‘Skunked’: Bill Gross On How ‘The U.S. Will Likely Default On Its Debt’

Dangerous Levels of Radioactive Cesuim 137 Found 25 Miles From Fukushima Plant

WASHINGTON — A long-lasting radioactive element has been measured at levels that pose a long-term danger at one spot 25 miles from the crippled Fukushima Daiichi nuclear power plant, raising questions about whether Japan’s evacuation zone should be expanded and whether the land might need to be abandoned.

The isotope, cesium 137, was measured in one village by the International Atomic Energy Agency at a level exceeding the standard that the Soviet Union used as a gauge to recommend abandoning land surrounding the Chernobyl reactor, and at another location not precisely identified by the agency at more than double the Soviet standard.

The measurements, reported Wednesday, would not be high enough to cause acute radiation illness, but far exceed standards for the general public designed to cut the risks of cancer.

Read moreDangerous Levels of Radioactive Cesuim 137 Found 25 Miles From Fukushima Plant

FOIA Request Shows EPA Prepares To Dramatically Increase Permissible Radioactive Releases In Drinking Water, Food And Soil After ‘Radiological Incidents’

The EPA is preparing to dramatically increase permissible radioactive releases in drinking water, food and soil after “radiological incidents,” according to Public Employees for Environmental Responsibility.

What is termed a guidance that EPA is considering – as opposed to a regulation – does not require public airing before it’s decided upon.

EPA officials contacted today in the Atlanta and D.C. offices had no response on the issue as of 6 p.m.

The radiation guides called Protective Action Guides or PAGs are protocols for responding to radiological events ranging from nuclear power-plant accidents to dirty bombs.

Drinking water, for example, would have a huge increase in allowable public exposure to radioactivity, the group says, that would include:

A nearly 1000-fold increase in strontium-90

A 3000 to 100,000-fold hike for iodine-131

An almost 25,000 rise for nickel-63

The new radiation guidance would also allow long-term cleanup standards thousands of times more lax than anything EPA has ever before accepted, permitting doses to the public that EPA itself estimates would cause a cancer in as much as every fourth person exposed, the group says.

These relaxed standards are opposed by public health professionals inside EPA, according to documents PEER said it obtained under the Freedom of Information Act.

PEER is a national alliance of local state and federal resource professionals

Anne Paine
Mar 16, 2011‎

Source: The Tenessean

TEPCO Chairman Admits Battle To Safe Fukushima Plant Lost, Reactors To Be Entombed

But here is the problem with this ‘solution’:

Dr. Michio Kaku: Three Raging Nuclear Meltdowns In Progress!


Bodies of 1,000 victims of Japan earthquake left uncollected because of fears of high levels of radiation


Apology: Tokyo Electric Power Co. chairman Tsunehisa Katsumata, right, finally admitted that the battle to save the plant had been lost and apologised for the ‘trouble and anxiety’ caused by the radiation

* Police, rescue workers and family members could be exposed to radiation
* Radioactivity levels in the ocean 4,385 times above regulatory limit
* Fisherman warned not to operate within 12 miles of plant
* Compensation claims could top $12bn
* Power firm’s shares lose 80% of value – may need government bailout
* President still recovering in hospital recovering from ‘fatigue and stress’
* U.S. sends specialist Marine unit to assist in decontamination
* Traces of radioactive particles found in U.S. milk


Too dangerous: This aerial photograph of the Fukushima plant shows the damaged reactors three and four at the which will now be entombed in concrete after the battle to contain radiation was lost

Up to 1,000 bodies of victims of the Japan earthquake and tsunami have not been collected because of fears of high levels of radiation.

Police sources said bodies within the 12-mile evacuation zone around the crippled Fukushima Daiichi nuclear plant had been ‘exposed to high levels of radiation after death’.

It follows the discovery of a body on Sunday in Okuma, just three miles from the power plant, which revealed elevated levels of radiation.

Read moreTEPCO Chairman Admits Battle To Safe Fukushima Plant Lost, Reactors To Be Entombed

Japan Nuclear Crisis: TEPCO Workers Threatened by Heat Bursts And Sea Radiation Rises

(Updates with Moody’s downgrade in 18th paragraph.)

March 31 (Bloomberg) — Japan’s damaged nuclear plant may be in danger of emitting sudden bursts of heat and radiation, undermining efforts to cool the reactors and contain fallout.

The potential for limited, uncontrolled chain reactions, voiced yesterday by the International Atomic Energy Agency, is among the phenomena that might occur, Chief Cabinet Secretary Yukio Edano told reporters in Tokyo today. The IAEA “emphasized that the nuclear reactors won’t explode,” he said.

Three workers at a separate Japanese plant received high doses of radiation in 1999 from a similar nuclear reaction, known as ‘criticality.’ Two of them died within seven months.

Read moreJapan Nuclear Crisis: TEPCO Workers Threatened by Heat Bursts And Sea Radiation Rises

Greenpeace Radiology Experts Find High Levels Of Radiation Beyond No-Go Zone

(Japan Times) — Radiology experts from Greenpeace urged the government Wednesday to expand the evacuation zone around the Fukushima No. 1 nuclear plant after they found high levels of radiation outside the 20-km mandatory no-go zone.

Jan van de Putte, the radioactivity safety adviser of the NGO, said the survey, taken on a road between the villages of Iitate and Tsushima in Fukushima Prefecture, saw a radiation level of 100 microsieverts per hour, despite being outside of the evacuation area.

One would reach the annual legal limit of 1,000 microsieverts — or 1 millisievert — of radiation in about 10 hours in such an environment, van de Putte said, adding that it is likely the people living in Iitate, about 9 km outside the no-go zone, “have surpassed that level” of exposure already.

Read moreGreenpeace Radiology Experts Find High Levels Of Radiation Beyond No-Go Zone

Japan Nuclear Meltdown Emergency: Fukushima Beyond Point Of No Return As Radioactive Core Melts Through Containment Vessel

(NaturalNews) The battle to save the Fukushima nuclear power plant now appears lost as the radioactive core from Reactor No. 2 has melted through the containment vessel and dropped into the concrete basement of the reactor structure. This is “raising fears of a major release of radiation at the site,” reports The Guardian, which broke the story (http://www.guardian.co.uk/world/201…). A former General Electric nuclear expert told The Guardian that Japan appears to have “lost the race” to save the reactor.

The only feasible interpretation from this analysis is that radiation emissions from Fukushima could suddenly become much greater. It is also now obvious that the radioactive fallout from Fukushima will last for decades, if not centuries.

Japan’s Prime Minister Naoto Kan last night admitted the situation at Fukushima remains “unpredictable.” Meanwhile, the presence of plutonium in soil samples is proof that the nuclear fuel rods have been compromised and are releasing material into the open atmosphere. (http://www.breitbart.com/article.ph…)

But don’t worry (and don’t prepare)

How many times were we told over the last two weeks that the Fukushima situation was solved? How many times were we assured there was “no danger” to the world? President Obama even went out of his way to tell Americans they should not prepare for anything, since there was nothing to worry about.

Don’t acquire any potassium iodide, people were told. The situation is completely under control and nuclear power is safe, clean and green!

Read moreJapan Nuclear Meltdown Emergency: Fukushima Beyond Point Of No Return As Radioactive Core Melts Through Containment Vessel

Japan Nuclear Meltdown: ‘Fukushima Plutonium Leak Comparable To Chernobyl Disaster’ (RT)

Don’t miss:

–  Japan Nuclear Meltdown Emergency: Fukushima Beyond Point Of No Return As Radioactive Core Melts Through Containment Vessel

And TEPCO tells us that plutonium is SAFE:

Unbelievable: TEPCO: Plutonium Found On 5 Locations Around Fukushima Plant A Week Ago (But The Deadliest Substance On The Planet ‘Poses No Human Health Risk’!)

BUT:

“Plutonium is the deadliest substance on the planet since 1 molecule of Plutonium in your body guarantees the development of cancer, according to radiation medicine experts.”
– Dr. Rima Laibow



Added: 30.03.2011

See also:

Read moreJapan Nuclear Meltdown: ‘Fukushima Plutonium Leak Comparable To Chernobyl Disaster’ (RT)