What Could Possibly Go Wrong

Bill Bonner: The End of the World As We Know It

"People become 'educators' and never teach a single student. They go on 'disability.' They turn whole industries – defense, health, finance – into vast wealth transfer schemes that produce little or no net benefit for the people they are supposed to serve. In short, zombies consume more than they produce; they are a net negative for society. But Hadas is right about the effects of lower birthrates. They also lower 'growth.' And without substantial growth, life as we have known it will come to an end. Stocks will fall, creditors (bondholders, for example) won't be paid, and governments must cut back on their expenses... or go broke." Continue reading →

Continue ReadingBill Bonner: The End of the World As We Know It

The astonishing collapse of work in America

"Both demand and supply factors are at play in this disheartening dynamic. On the demand side, it seems fairly clear that our contemporary economy is just not generating jobs and work as robustly as it did in the past---even the relatively recent past. This can be seen as a 'structural' problem. For on the supply side, it is apparent that there has been a major behavioral change in America, wherein a growing proportion of working-age Americans are checking out of paid labor altogether. Suffice it to say that not working at all is neither unthinkable nor unaffordable these days, even for adults in the prime of life." Continue reading →

Continue ReadingThe astonishing collapse of work in America

Deep Divides Threaten Egypt’s Path Forward

"It is a good 15-minute drive from Tahrir Square in the heart of Cairo to Raba'a al-Adaweya Square in the Nasr City quarter of the capital. Yet worlds divide the Egyptians who have been gathering at the two sites in recent days. In Tahrir Square on Tuesday, people were selling posters of the country's new strongman, General Abdel-Fattah el-Sissi, who toppled then-President Mohammed Morsi last week. On Raba'a al-Adaweya Square, however, demonstrators held images of Morsi aloft. They are the followers of the Islamist Muslim Brotherhood movement -- and they have vowed not to vacate their tent city until Morsi is back in office."Deep Divides Threaten Egypt's Path Forward Continue reading →

Continue ReadingDeep Divides Threaten Egypt’s Path Forward

Reality of Egypt – Not What You Think?

"The Muslim Brotherhood was the first choice of Western powers, from what we can tell, and was only discarded when its leadership declined to go along with a US$4 billion International Monetary Fund plan. The military, meanwhile, has been portrayed as being of one piece, but as we have pointed out previously, it may be a mistake to believe that the military is cohesively pro-Western and at the service of the Pentagon. It may be at the top, but who can speak for the rank-and-file? The social chaos and bloody destruction now being predicted for Egypt may not simply be the result of a scripted clash between the military and Islamic factions." Continue reading →

Continue ReadingReality of Egypt – Not What You Think?

Egypt orders arrest of ousted Brotherhood leaders after army kills 53 protesters

"Washington, treading a careful line, has neither welcomed Mursi's removal nor denounced it as a 'coup', which would require it to halt aid, including the $1.3 billion it gives the army each year. The Brotherhood's downfall has, however, been warmly welcomed by three of the rich Arab monarchies of the Gulf. Kuwait promised Egypt $4 billion in cash, loans and fuel on Wednesday, a day after Saudi Arabia pledged $5 billion and the United Arab Emirates offered $3 billion. Mohamed ElBaradei, a former U.N. agency chief, has been named vice president and supports a stalled $4.8 billion loan deal with the International Monetary Fund." Continue reading →

Continue ReadingEgypt orders arrest of ousted Brotherhood leaders after army kills 53 protesters

Parched Jordan to start pumping radium-laced water from 300,000-year-old aquifer

"The water ministry says Jordan, where 92 percent of the land is desert, will need 1.6 billion cubic metres of water a year to meet its requirements by 2015, while the population of 6.8 million is growing by almost 3.5 percent a year. Officials say the project has required 250,000 tonnes of steel and the digging of 55 wells to pump water from Disi to Amman, where the per capita daily consumption [is 42 gallons]. A 2008 study by Duke University, in the United States, shows that Disi’s water has 20 times more radiation than is considered safe, with radium content that could trigger cancers. But the government has brushed aside those concerns." Continue reading →

Continue ReadingParched Jordan to start pumping radium-laced water from 300,000-year-old aquifer

One Million Children Labor in Africa’s Goldmines

"The U.S. Department of Labor also is funding a four-year, $5 million project in Burkina Faso, one of the world's poorest nations, to reduce child labor in cotton farming and gold mining. The grant will be used to help raise awareness about child labor laws and build government capacity to monitor and enforce the laws, said Eric Biel, acting associate deputy undersecretary for the Bureau of International Labor Affairs. Small-scale gold mining began here in earnest in the 1980s as droughts and famines forced families from farms and into mines to earn a living. It remains a family affair." Continue reading →

Continue ReadingOne Million Children Labor in Africa’s Goldmines

Deutsche Bank’s Opaque Loans From Brazil to Italy Hide Risk

"Deutsche Bank AG (DBK), perennially among the top three in global credit markets, made billions of dollars of loans to banks worldwide since 2008 and accounted for them in a way that obscured their continuing risk to investors. Germany’s largest bank managed to lend to firms from Brazil to Italy while making the transactions disappear from its balance sheet, even though it still is owed the money, according to four people with knowledge of the practice and internal documents provided to Bloomberg News. In the no-balance-sheet transactions, Deutsche Bank received the collateral, sold it and used the cash to make the loan." Continue reading →

Continue ReadingDeutsche Bank’s Opaque Loans From Brazil to Italy Hide Risk

The wheels are coming off the whole of southern Europe

"A leaked report from the European Commission confirms that Greece will miss its austerity targets yet again by a wide margin. Italy’s slow crisis is again flaring up. Its debt trajectory has punched through the danger line over the past two years. Spain’s crisis has a new twist. The ruling Partido Popular is caught in a slush-fund scandal of such gravity that it cannot plausibly brazen out the allegations any longer, let alone rally the nation behind another year of scorched-earth cuts. Portugal is slipping away. Professor João Ferreira do Amaral’s book -Why We Should Leave The Euro – has been a bestseller for months." Continue reading →

Continue ReadingThe wheels are coming off the whole of southern Europe

Bill would establish U.S. national park on the Moon

"The site where astronauts Neil Armstrong and Buzz Aldrin first landed on the Moon in July 1969 could receive the same federal protection as Yellowstone. In a press release, Edwards explained the Apollo Lunar Landing Legacy Act would ensure the scientific data and cultural significance of the Apollo artifacts remains unharmed by future lunar landings by endowing the artifacts as a National Historic Park. The bill would also direct the Secretary of the Interior to nominate the Apollo landing site as a UNESCO World Heritage Site." Continue reading →

Continue ReadingBill would establish U.S. national park on the Moon