Prof. Nouriel Roubini Says a ‘Perfect Storm’ May Converge on the Global Economy in 2013

See also:

Greece: Default Is Inevitable

Germany’s Rating Agency Feri Downgrades US Government Bonds: AAA to AA!

China’s Rating Agency: ‘In Our Opinion The United States Has Already Been Defaulting’

St. Louis Federal Reserve President Sees US Default As Big Global Risk (Reuters)


Roubini Says a ‘Perfect Storm’ May Converge on the Global Economy in 2013 (Bloomberg, Jun 13, 2011):

A “perfect storm” of fiscal woe in the U.S., a slowdown in China, European debt restructuring and stagnation in Japan may converge on the global economy, New York University professor Nouriel Roubini said.

There’s a one-in-three chance the factors will combine to stunt growth from 2013, Roubini said in a June 11 interview in Singapore. Other possible outcomes are “anemic but OK” global growth or an “optimistic” scenario in which the expansion improves.

“There are already elements of fragility,” he said. “Everybody’s kicking the can down the road of too much public and private debt. The can is becoming heavier and heavier, and bigger on debt, and all these problems may come to a head by 2013 at the latest.”

Read moreProf. Nouriel Roubini Says a ‘Perfect Storm’ May Converge on the Global Economy in 2013

Ireland Seizes $7 Billion From Its Pension Fund To Boost Employment

Hopeless!

See also:

Former Assistant Secretary of the US Treasury Dr. Paul Craig Roberts: Revolution is the Only Answer (For Greece, Ireland etc.)

Irish Bombshell: Government Raids PRIVATE Pensions To Pay For Spending!

True Finns Party Chairman: Greece, Ireland and Portugal Ruined; Gangrene Spreads; Enron Looks Simple; Spain Next Zombie


Ireland Seizes $7 Billion From Its Pension Fund To Boost Employment (Business Insider, Jun. 12, 2011):

THE GOVERNMENT WILL use the last €5 billion in the National Pensions Reserve Fund (NPRF) to help create employment although it will need approval from the International Monetary Fund (IMF) and Europe before doing so.

The Sunday Times reports today that the money will be used by the government to create as many as 80,000 jobs in Ireland. The paper cites government sources in reporting that the use of the money would be seen as more viable then the proposed sale of semi-state assets in the current weak market.

One source says that the view of the troika of IMF, the European Union and the European Central Bank is that if you have money it should be spent rather than drawing on outside funding or money from selling off assets at the wrong-time.

Read moreIreland Seizes $7 Billion From Its Pension Fund To Boost Employment

Radioactive Bulgarian Mushroomes Seized, Containing More Than 6,000 Becquerels Per Kg Cesium-137

Radioactive mushrooms contaminated in Chernobyl disaster seized at British port (Daily Mail,  June 11 2011):

A ton of mushrooms containing ten times the safe level of a radioactive metal has been seized and destroyed by health chiefs.

The Bulgarian consignment of dried wild mushrooms is thought to have been irradiated by caesium 137 from the Chernobyl disaster in Ukraine 25 years ago.

It was found by a UK Border Agency team looking for illegal immigrants and impounded before it reached the shops.

Levels of radiation are measured in becquerels. The EU sets a maximum limit for caesium 137 in food of 600 becquerels per kilogram – double the level in Japan.

But the amount of radioactivity found in the mushrooms destined for British families was more than 6,000 becquerels.

Caesium 137 causes genetic mutations in humans and animals. Eating food contaminated with the radioactive metal can lead to cancer or cause deformities in developing babies.

Read moreRadioactive Bulgarian Mushroomes Seized, Containing More Than 6,000 Becquerels Per Kg Cesium-137

EU Presidents Herman Van Rompuy And Jose Manuel Barroso Fly To Same Destination In Separate Jets

Taxpayer money at work!


A feud between two of the European Union’s leaders was exposed yesterday as the two men travelled in separate VIP jets on the same morning to the EU-Russia summit destination in Russia.


Herman Van Rompuy and José Manuel Barroso Photo: REUTERS

Rivalry between the EU president Herman Van Rompuy and the European Commission chief Jose Manuel Barroso, whose title is also president, over who is Europe’s true leader on the world stage meant that the pair and their entourages, would not share one aircraft.

Mr Van Rompuy, Belgium’s former prime minister before he took the EU post, did not offer Mr Barroso space on an aircraft supplied to him by the Belgian air force at cheap rates.

Instead, Mr Barroso was forced to charter a 15-seater plane, said to be a Learjet, at high commercial rates to carry himself, Baroness Ashton, the EU’s trade commissioner and a group of officials to Russia.

Air Charter Service, a London based company, estimated the cost of Mr Barroso’s Brussels to Russia air taxi would be between £50,000 and £70,000.

Meanwhile, Mr Van Rompuy, accompanied by fewer than 15 officials, travelled in a 35-seat Embraer 135 jet, charged only at the cost of the aircraft’s fuel consumption. Both planes left Brussels within four hours of each other for Nizhny Novgorod in the Volga-Vyatka region of Russia to hold talks on behalf of the EU with President Dmitry Medvedev.

The European Commission and Mr Van Rompuy’s office defended the arrangement by saying that the EU’s two most senior officials were too busy to co-ordinate their diaries and too important to travel in one aircraft.

Read moreEU Presidents Herman Van Rompuy And Jose Manuel Barroso Fly To Same Destination In Separate Jets

Greece: Default Is Inevitable

Greek Default Is Inevitable (Market Watch, June 10, 2011):

The European Central Bank, with its staunch opposition to sovereign debt restructuring in Europe, is making a bad situation worse. By threatening to withdraw support for banks in countries such as Greece if they restructure their debts, the ECB is practically inciting runs on banks.

The argument that Greek state paper could no longer be used as collateral in such cases hardly justifies such a potentially destabilizing step. The ECB is effectively the lender of last resort to such banks. If depositors believe it is about to pull out, then they will withdraw money from the banks — and we will face a self-fuelling downward spiral.

The debt problem of peripheral Europe is structural. It cannot be solved by piling debt on debt. There is an analogy to a Ponzi scheme, under which more money is continually paid in to keep the pyramid-like edifice from collapsing. The debt/GDP ratio increases over time because new loans are given to pay old debt and to finance the remaining fiscal gaps.

Read moreGreece: Default Is Inevitable

James Turk on the US Dollar, the Euro, Hyperinflation, Gold And Silver

James Turk’s presentation on the gold price and the US dollar

Added: 05.06.2011

James Turk of the GoldMoney Foundation speaks about currency devaluation and the rising gold price. How the gold price is rising against all major currencies and monetary policy is political, having abandoned all pretence of seeking monetary stability. He warns of the dangers of a hyperinflationary crisis. James also explains why gold should be considered money and not an investment.

He also talks of the coming dollar collapse and the waterfall decline in the dollar, especially since Ben Bernanke’s words on QE. He talks of different examples of hyperinflation from paper money hyperinflation in Weimar Germany to deposit currency hyperinflation in Argentina. The presentation was held on 29 April 2011 in Munich, Germany.

EU ‘Stress Test’ For Nuclear Reactors A Joke

#Fukushima I Nuke Accident: EU’s “Stress Test” For Nuclear Reactors Just like US’s “Stress Test” for Wall Street Banks (Ex-SKF, June 9, 2011):

To “learn” from the Fukushima I Nuke Plant accident, as the IAEA is to recommend, no doubt, the EU is going to conduct the “stress test” for the 143 reactors in Europe to see how Europe’s nuclear facilities are able to withstand natural or man-made disasters.

Caveat?

The test is voluntary, and as one German MEP (member of European Parliament) contends, the check is “largely in the hands of operators”.

Sound familiar?

It’s just like the so-called “stress test” devised by the US Treasury Department and the Federal Reserve to assure the world that the US banking system was safe and sound, in the wake of September-November 2008’s financial disaster that crashed the financial markets and triggered the worldwide recession. The “test” was not “voluntary” but the Treasury and the Fed handpicked which banks to do the “test”. The banks knew exactly what they would be tested for, because for the most part they were the ones who told the regulators what parameters to test.

That should be very familiar to the Japanese, too. In Japan, at least in the past, when the fire department or the public health department conducted safety checks on the public facilities (hotels, restaurants, etc.) they used to “warn” those facilities days in advance about the inspection date and what to inspect.

Globalization is truly here.

From BBC News (6/9/2011):

MEPs split over nuclear ‘stress tests’

MEPs have clashed over plans for “stress tests”, which are due to be carried out on nuclear facilities in the EU.

Read moreEU ‘Stress Test’ For Nuclear Reactors A Joke

The European Parliament Refuses To Release Secret Expenses Abuse Report

European parliament refuses to release expenses report (Telegraph, June 9, 2011):

The European Parliament is refusing to release a secret report detailing widespread abuse of MEPs expenses despite an EU court ruling that there is “overriding public interest in disclosure”.

The existence of the document, written by Robert Galvin, a senior EU official who is the parliament’s chief internal auditor, was first disclosed by The Daily Telegraph in 2008.

Despite public controversy across Europe over misuse of generous allowances paid to MEPs, parliament officials have fought tooth and nail to keep the Galvin report, number 06/02, secret.

During an internal investigation, Mr Galvin discovered large scale abuse of £185 million in MEP staffing allowances and general expenditure expenses, paid without receipts.

Read moreThe European Parliament Refuses To Release Secret Expenses Abuse Report

Roundup Birth Defects: Regulators Knew World’s Best-Selling Herbicide Causes Problems, New Report Finds

On Roundup:

Scientists Warn Of Dangerous New Pathogen From Roundup Ready Treated Monsanto GM Crops Causing Infertility And Spontaneous Abortions

Roundup, GMOs linked to emergence of deadly new pathogen causing spontaneous abortions among animals

Monsanto’s Roundup Triggers Over 40 Plant Diseases and Endangers Human and Animal Health

Study: Monsanto’s Roundup Kills Human Cells (Flashback)

Scientist: Monsanto’s herbicide could cause brain, intestinal and heart defects in foetuses

More shocking information on GMOs below.


Roundup Birth Defects: Regulators Knew World’s Best-Selling Herbicide Causes Problems, New Report Finds (Huffington Post, June 08, 2011):

WASHINGTON — Industry regulators have known for years that Roundup, the world’s best-selling herbicide produced by U.S. company Monsanto, causes birth defects, according to a new report released Tuesday.

The report, “Roundup and birth defects: Is the public being kept in the dark?” found regulators knew as long ago as 1980 that glyphosate, the chemical on which Roundup is based, can cause birth defects in laboratory animals.

But despite such warnings, and although the European Commission has known that glyphosate causes malformations since at least 2002, the information was not made public.

Instead regulators misled the public about glyphosate’s safety, according to the report, and as recently as last year, the German Federal Office for Consumer Protection and Food Safety, the German government body dealing with the glyphosate review, told the European Commission that there was no evidence glyphosate causes birth defects.

Read moreRoundup Birth Defects: Regulators Knew World’s Best-Selling Herbicide Causes Problems, New Report Finds

France Tells Ireland: Increase The Corporate Tax Rate, Or We Won’t Cut Your Bailout Rate

France Tells Ireland: Increase The Corporate Tax Rate, Or We Won’t Cut Your Bailout Rate (Business Insider, June 8, 2011):

France is set to exercise its veto in order to ensure that Ireland does not secure a cut to the interest rate on its EU bailout without first increasing its corporate tax rate.

The news, reported in both the Irish Independent and Irish Examiner this morning, comes on foot of Michael Noonan’s stern declaration yesterday that Ireland would not be “waltzed around” and sacrifice the “heart and soul” of its economic policy.

The Rxaminer’s Ann Cahill and Paul O’Brien quote a French source as saying: “The French are digging in. They will use their veto.”

“To those who are opposing us and trying to force us to change our corporation tax rate, I tell them once more today that they have no negotiating position,” Noonan had told the Dáil yesterday.

Read moreFrance Tells Ireland: Increase The Corporate Tax Rate, Or We Won’t Cut Your Bailout Rate