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Friday, February 28, 2014

Mike Stasse: The Great Unraveling Has Begun

Reblogged from Mike Stasse's Damn the Matrix:
I have been warning of the Great Unravelling for years now. It is becoming increasingly difficult to shrug off feelings it has begun. Exactly what is causing me to feel this way today is hard to pinpoint. I have thought for a long time that some event would trigger it, an event like 9/11, or the GFC collapse in 2008, but still the Matrix defies all the odds. Today, however, too many ducks are lining up on the wall.
2014 was the year many pundits forecast would be the beginning of the long decline from civilisation. It's barely two months old today, and so far this year we have had confirmation that all car manufacturing will end in Australia, that Shell has sold its entire interests (except for aviation interestingly) in this country, and that QANTAS and Virgin Australia are unprofitable, QANTAS announcing it would cut 5000 jobs to save money After seeing Steven Kopits' presentation on what's happening in the oil industry, surely even blind Freddy can see where this is all going now. You even have to ask why Vitol bought Shell out?
It appears that all the oil majors are in such unprofitable positions due to Peak Oil, that they are all selling assets to prop up their bottom lines. And just to add a few more roadblocks, even American Independent producers will spend $1.50 drilling this year for every dollar they get back. Shale output drops faster than production from conventional methods, and it will take 2,500 new wells a year just to sustain output of 1 million barrels a day in North Dakota's Bakken shale, according to the International Energy Agency. Iraq could do the same with 60.
Steven Kopits' announcing that Shell had to borrow money to pay its shareholders' dividends really did it for me. As if the global debt situation wasn't bad enough.. This is like a dog chasing its tail, only worse; it's begun eating its own arse to stay alive. How long this state of affairs can go on for is hard to fathom. The fact that it can't is a certainty, however.
Then we have Chris Martenson, among many, saying that the stock market's fundamentals are crumbling in both the short-term & long. I've seen Alan Kohler say basically the same thing on ABC TV recently..
The Ukraine has joined the increasingly long list of failed states with a huge and rapidly growing foreign debt, placing the country under constant threat of default. Its foreign exchange reserves are nearly depleted. Ukraine has a large negative trade balance and is desperately short on outside investment and private savings. Russia is the only country willing to extend financial assistance in exchange for Ukraine's nearly worthless junk bonds.
And then we have the Climate. the numbers of record disasters happening globally defy listing. From droughts in both hemispheres simultaneously, to record high and low temperature events again simultaneously occurring in the USA while the UK gets a pounding with three (more?) one in a hundred years storms in less than a month Even here in Cooran, we have now officially had the driest February on record. By this time last year, we'd been flooded out twice and received 1200mm of rain in two months. So far this year, we've had 59mm, 9 of those this month. Whilst I normally have to mow twice a week at this time of year, I haven't done so since before we went to Tasmania more than six weeks ago. Check out this world map of extreme weather events in just January. the whole planet is peppered with them!
So there you have it. 2014 will be an interesting year indeed. What will it take for the authorities to wake up and admit everything they are doing is simply not working? And how long before another large stock market correction visits us again..? Only time will tell, but hang onto your seat, we're in for an exhilarating ride!