For Entertainment Purposes Only (or maybe not??)!!

[Rubicon]

The latest internet bot predictions website (Google Internet Bot predictions to see more) report gives a clear warning that there is going to be a world event within the next six to twelve months which will result in a ripple effect resulting in possible hyper inflation, world wide economic depression, and possible loss of the US dollar as being the currency of reserve.  the world event could be something like Israel launching a bombing raid on Nuclear facilities in Iran, which could result in an unforseen overwhelming response by Iran and countries which suddenly become allied with Iran, resulting in a war and overwhelming catastrophe for Israel, leading to extremely high oil prices, inflation, hyper inflation, etc.

internet bots have been very successful in predicting future events, but remember, it is FOR ENTERTAINMENT PURPOSES ONLY!!

[GQBlues]

Man Rubicon....I thought it was something serious like, I predict "the Lakers will lose to the Cleveland Cavaliers".

Good thing it's just fictional. Good grief, can you imagine?  

[Shostakovich]

"When the Jews return to Zion, and a comet rips the sky, when the holy Roman empire rises, then you and I must die ..."

You never know.

[Shostakovich]

Prophets are good at prophecy also: The time is come, it is nigh! 

[Daveman]

Well, I don't know about you guys, but while there's a little time left ... I'm damn sure gonna get laid...

[chivo]

Well, I don't know about you guys, but while there's a little time left ... I'm damn sure gonna get laid...

Starting tonight .

[Gylden]

I don't know.....after seeing what those bank execs. and wall street bozos (stir in a few politicians) did I don't think any bombs could create that much of a mess!!   

But I do buy into the inflation thing!!

[Maxx2]

22 signs austerity has already come to America

1)  The financial manager of Detroit Public Schools wants to close half of all city schools, leading to class sizes of up to 62 students.

2)  Detroit Mayor Dave Bing wants to cut 20 percent of the city off from police and trash services.

3)  California Gov. Jerry Brown is requiring 48,000 state workers to turn in their government cell phones by June 1st.

4)  N.Y. Gov. Andrew Cuomo is proposing to completely eliminate 20 percent of state agencies.

5)  NYC Mayor Michael Bloomberg has closed 20 fire departments at night and is proposing layoffs in every single city agency.

6)  Illinois lawmakers recently pushed through a 66% increase in the state's personal income tax rate.

7)  The town of Prichard, Ala., recently stopped sending pension checks to retirees in violation of state law.

8.)  N.J. Gov. Chris Christie purposely skipped a scheduled $3.1 billion payment to the state's pension system.

9)  New Jersey still faces a $10 billion budget deficit this year even after cutting $1 billion from the education budget and laying off thousands of teachers.

10)  Major cuts to Newark's police force have led to a substantial spike in the city's crime rate.

11)  Camden, N.J., the second-most dangerous city in America, recently laid off half of its police force due to a huge budget shortfall.

12)  Philly, Baltimore and Sacramento have started "rolling brownouts," shutting down city fire stations on a rotating basis.

13)  In Georgia, Clayton County eliminated its public bus system to save $8 million.

14)  Due to budget cuts, OAKLAND POLICE WILL STOP RESPONDING TO SEVERAL CRIMES, INCLUDING CAR WRECKS, GRAND THEFT AND BURGLARY.

15)  In Connecticut, the governor wants state legislators to pass the biggest tax increase the state has seen in two decades.

16)  State parks and historic sites are deteriorating due to widespread budget shortfalls.

17)  Arizona has decided to stop paying for many types of organ transplants for people enrolled in the state's Medicaid program.

18)  Arizona is so desperate for money they have sold off the state capitol building, the supreme court and the legislative chambers.

19)  All over the nation, asphalt roads are being ground up and replaced with gravel because it is cheaper to maintain.

20)  Illinois is such a financial disaster zone, it is difficult for even the state Comptroller to describe.

21)  Chicago's budget is in such dire straits, officials are toying with the idea of setting up a city-owned casino to raise cash.

22)  Mich. Gov. Rick Snyder is desperately looking for ways to cut the budget and says that "hundreds of jurisdictions" in the state could go bankrupt in the next few years.

But everything you just read is only the beginning.


Budget shortfalls for our state and local governments are projected to be much worse in the years ahead.

So what is the answer?  Well, our state and local governments are going to have to spend less money.  That means that we are likely to see even more savage budget cutting.

In addition, our state and local politicians are going to feel intense pressure to find ways to "raise revenue".  In fact, we are already starting to see this happen.

According to the National Association of State Budget Officers, over the past couple of years a total of 36 out of the 50 U.S. states have raised taxes or fees of some sort.

So hold on to your wallets, because the politicians are going to be coming after them.

We are entering a time of extreme financial stress in America.  The federal government is broke.  Most of our state and local governments are broke.  Record numbers of Americans are going bankrupt.  Record numbers of Americans are being kicked out of their homes.  Record numbers of Americans are now living in poverty.

The debt-fueled prosperity of the last several decades came at a cost.  We literally mortgaged the future.  Now nothing will ever be the same again.

[Maxx2]

This 60 minutes segment has been critiqued as "they finally got one right".

Day of Reckoning

[youtube=425,350]http://www.youtube.com/watch?v=nP3b0_fnPxQ[/youtube]

Entertaining and thought provoking

[Rubicon]

 
Top Business Stories
David Rosenberg warns of $200 oil if turmoil hits Saudi Arabia
Michael Babad | Columnist profile | E-mail
Globe and Mail Update
Published Tuesday, Feb. 22, 2011 12:18PM EST
Last updated Tuesday, Feb. 22, 2011 2:47PM EST
22 comments Email  Print/License Decrease text size Increase text size  Markets roiled, oil higher
Violence in Libya is roiling global financial markets today, driving down stock prices and pushing the cost of crude (CL-FT95.315.606.24%) to above two-year highs as several companies suspend output and fears grow of even more severe disruptions.

Libya is the new focus for the turmoil that began in Tunisia and spread to Egypt, Yemen, Jordan and elsewhere. While oil prices have bounced around amid the trouble, the crisis in Libya has heightened fears of another oil price shock. Libya accounts for 2 per cent of global crude output, and is home to the largest oil reserves in Africa, Globe and Mail writer Tavid Grant reports.

Light Sweet Crude Oil  (CL-FT)
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Bet on oil demand, not supply  Graphic
Canadian retail sales in 2010 "If this means we see $100 a barrel much sooner than we expect, it is clearly going to impact on global economic recovery," warned Yusuf Heusen, senior sales trader at IG Index. "This would only hinder share prices in the months to come."

David Rosenberg, the chief

[Rubicon]

The worst-case scenario regarding the price oil just became, well, a little worse.

On Thursday CIBC World Markets Chief Economist Jeff Rubin said oil production will barely grow over the next five years, and that shortfall, combined with solid emerging market demand, will drive oil to $150 per barrel by 2010 and $200 per barrel by 2012, and The Financial Post reported Thursday.

Just as bad, and despite easing gasoline demand in the United States, U.S. gasoline prices will climb to as much as $7 per gallon by 2012, Rubin said, and The Financial Post reported.



Oil closed Thursday down $2.32 to $115.98 per barrel. Oil hit a record high of $119.90 per barrel on April 22, 2008. Wholesale unleaded gasoline closed down 3 cents to $3.01 per gallon. The U.S. national average for gasoline now exceeds $3.50 per gallon, with several high-cost zones, including New York and San Francisco, already reporting prices over $4 per gallon.

Slowing production growth?

In his research, Rubin argues that global oil supply will increase by only about 1 million barrels per day per year -- far slower than ramping demand, with the market bidding-up the price accordingly, The Financial Post reported, adding that a rise in natural gas liquids found in current oil production was a sign of depleting oil supply in certain, mature oil fields.

Global oil demand for 2008 is projected to be 87.2 million barrels per day, according to the International Energy Agency. Meanwhile, global oil supply for March 2008 totaled 87.3 million barrels per day, due to lower supplies last month from OPEC, the North Sea region, and non-OPEC Africa.

U.S. conservation seen

Economist Glen Langan told BloggingStocks Thursday Rubin's projections "would certainly have to be placed at the bleakest end of the worst-case scenario spectrum," but that it does provide cause for further analysis. While noting that he hasn't reviewed Rubin's research yet, Langan said a $130-$150 level for oil by 2012 is the more-likely, worst-case scenario, given changes he expects the developed world to make as oil, and its products (gasoline, diesel, motor oil) climb to unprecedented levels.

"More than likely, consumers and businesses will cut back consumption, demand destruction will occur, and nations will begin to find substitutes," Langan said. "A [gasoline] price of $4 per gallon is enough to propel changes in U.S. housing and commuting patterns, so at $5 the changes will occur that much more quickly. The short answer is that, absent subsidies in the U.S., Americans will simply use less gasoline and oil, and there will be substitutes, and that will place a top on oil's price."

Oil Analysis: For the typical investor / trader, each week can seem like a new session of 'Can You Top This?' regarding oil price projections. Still, two oil fundamentals are a stark reality: high per capita gasoline consumption in the U.S. and galloping oil demand in emerging markets. Based on Q1 2008 data, it appears American consumers have started to cut back. Rising demand in China, India and other developing markets, however, still must be addressed, before one can relegate Rubin's analysis to the overestimate category.
Tags: CIBC, CIBC World Markets, emerging markets, gasoline, gasoline prices, IEA, International Energy Agency, oil, oil prices, Rubin

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[Rubicon]

7 Potential Economic Effects Of A War With Iran
As each day passes, war in the Middle East seems increasingly likely.  The truth is that Israel will never allow Iran to develop nuclear weapons, and Iran is absolutely determined to continue developing a nuclear program.  So right now Israel and Iran are engaged in a really bizarre game of "nuclear chicken" and neither side is showing any sign of blinking.  In fact, even prominent world leaders are now openly stating that it is basically inevitable that Israel is going to strike Iran.  For example, Italian Prime Minister Silvio Berlusconi recently made the stunning admission that the G8 nations "absolutely believe" that Israel will attack Iran.  But a conflict between Israel and Iran would not just affect the Middle East - it would have staggering implications for the rest of the globe.

So just what would a war between Israel and Iran mean for the world economy?

The following are 7 potential economic effects of a conflict between Israel and Iran....

#1) The Price Of Oil Would Skyrocket - One of the very first things a war with Iran would do is that it would severely constrict or even shut down oil shipments through the Strait of Hormuz.  Considering the fact that approximately 20% of the world’s oil flows through the Strait of Hormuz, world oil markets would instantly be plunged into a frenzy.  In fact, some analysts believe that oil prices would rise to $250 per barrel.

So are you ready to pay 8 or 10 dollars for a gallon of gasoline?  What do you think that would do to the U.S. economy?

The truth is that every single transaction that we make every single day is influenced by the price of oil.  If the price of oil suddenly doubles or triples that would absolutely devastate the already very fragile U.S. economic system.

#2) Fear Would Explode In World Financial Markets - Even without a war, the dominant force in world financial markets in 2010 is fear.  We are already seeing unprecedented volatility in financial markets around the globe, and there is nothing like a war to turn fear into a full-fledged panic.  And what happens when panic grips financial markets?  What happens is that they crash.

#3) World Trade Would Instantly Seize Up - Once upon a time the economies of the world were relatively self-contained, so a war in one area would not necessarily wreck economies all over the globe.  But all of that has changed now.  Today, the economies of virtually every nation are highly interdependent.  That has some advantages, but it also has a lot of disadvantages.

If a war with Iran did break out, nations all over the globe would start taking sides and world trade would seize up.  The global flow of goods and services would be severely interrupted.  That would be enough to push many nations around the world into a full-blown depression.

#4) Military Spending Would Escalate - Even if the United States was not pulled directly into a conflict between Israel and Iran, there is little doubt that the U.S. would be spending a lot of money and resources to support Israel and to build up military assets in the region in case a wider war broke out.  The U.S. has already spent somewhere in the neighborhood of a trillion dollars on the wars in Iraq and Afghanistan.  If war does break out with Iran the amount of money the U.S. government could be forced to spend could be absolutely staggering.   

The truth is that the U.S. is already drowning in debt.  At this point the U.S. government is over 13 trillion dollars in debt, and another Middle East war is certainly not going to help things.   

#5) Russia Would Greatly Benefit - Russia and other major oil producers outside of the Middle East would greatly benefit if a war with Iran erupts.  Russia is already the number one oil producer in the world, and if supplies out of the Middle East were disrupted for any period of time it would mean an unprecedented windfall for the Russian Bear.

#6) Massive Inflation - A huge jump in the price of oil and dramatically increased military spending by the U.S. government would most definitely lead to price inflation.  We would probably see a dramatic rise in interest rates as well.  In fact, it is quite likely that if a war with Iran does break out we would see a return of "stagflation" - a situation where prices are rapidly escalating but economic growth as a whole is either flat or declining.

#7) The Price Of Gold Would Go Through The Roof - When there is a high degree of uncertainty in world financial markets, where do investors turn?  As we have seen very clearly recently, they turn to gold.  As high as the price of gold is now, the truth is that it is nothing compared to what would happen if a war with Iran breaks out.  When times get tough, we almost always see a flight to safety.  Right now none of the major currencies around the globe provide much safety, so investors are increasingly viewing precious metals such as gold and silver as a wealth preservation tool.

War is never pleasant.  If war with Iran does break out it could potentially set off a chain of cascading events that would permanently alter the world economy for the rest of our lifetimes.

So let us hope that war does not erupt.  It wouldn't be good for anyone.  But the reality is that at this point it almost seems like a foregone conclusion.  Tensions in the Middle East are rising by the day, and all sides are certainly preparing as if they fully expect a war to happen.

Even without a war with Iran, incredibly hard economic times are on the way, so if a war does happen it could mean a complete and total economic disaster.

So what do you think?  Will a war with Iran devastate the world economy?  Feel free to leave a comment with your opinion....

Share and Enjoy:

[Rubicon]

you heard it hear first from Rubicon; so when it happens don't be surprised.  notice that Russia greatly benefits, and that the price of Gold goes through the roof!!

[GQBlues]

...The truth is that the U.S. is already drowning in debt.  At this point the U.S. government is over 13 trillion dollars in debt, and another Middle East war is certainly not going to help things. 

 


. C'mon Rubicon, 13 trillion (9 actually) is chump change. Even our Fed Inpector General doesn't believe there's any urgency at all enough to be bothered to monitor on who left with the bags of marbles....

To quote Amy2x: "...She is the best no question about it... One thing that kills me is the 5 min limit... Sh!t if I stole a gas station I would be interrogated for 4 days straight without even a cup of coffee... The US deserve to drown in their own sh!t...

It would shock you to know (or will it?) the amount of crimes committed by or charged against the overall congressional body that we have in charge to protect and serve our interest in the beltway presently and recent past.

Competency apparently is not required in our Constitution.

[Gator]

Frankly, this reminds me of the fall of the communist regimes with a couple of exceptions. 

At the start of the Egyptian turmoil, Boethius asked me about some comparisons with Iran.  I told her then that I expected the Egyptian people (who have always impressed me favorably) to make a relatively smooth transition.  So far, so good.

States with crazed dictators such as Libya will not be orderly.  Ghaddafi seems to have lost his influence and his authority is tenuous.  All he has is the power of the elite parts of the military who he has set up and enriched.  How long can that last with the support of the people.  I do not know much about Libya.  I recall when Ghaddafi  abandoned his nuclear program.  Many thought that this resulted from US pressure.  I think not.  Ghaddafi  feared he would be the target of Al Queda who would strive to overthrow his small country to get their hands on a nuke.  To stop that threat, he diarmed his nuclear capabilities.

I mentioned exceptions.  The one factor that will help to keep Ghaddafi  in power is that his country is economically independent.  Diplomatic pressure and embargoes mean little.

[Handycam72]

Oil closed Thursday down $2.32 to $115.98 per barrel. Oil hit a record high of $119.90 per barrel on April 22, 2008. Wholesale unleaded gasoline closed down 3 cents to $3.01 per gallon. The U.S. national average for gasoline now exceeds $3.50 per gallon, with several high-cost zones, including New York and San Francisco, already reporting prices over $4 per gallon.

Ohhhhh how I dream of Petrol (Gasoline) at $3.50 a gallon.

Its £1.31 GBP ($2.09 US Dollars) per litre or if you like £5.96 a gallon ($9.53 US Dollars)for unleaded here in UK. I just filled my car up this morning at a cost of £93 ($147 US Dollars)

[Faux Pas]

Ohhhhh how I dream of Petrol (Gasoline) at $3.50 a gallon.

Its £1.31 GBP ($2.09 US Dollars) per litre or if you like £5.96 a gallon ($9.53 US Dollars)for unleaded here in UK. I just filled my car up this morning at a cost of £93 ($147 US Dollars)

That would keep a lot of us in the US at home. The seers were saying in 2010 that 2011 the US will have $5.00 a per gallon gas year. I suspect they might be right. There's no shortage and the supply is actually greater than in 2008 yet with the current events in the Middle East all they need is a reason to speculate it into higher prices. It was the same situation in 06 when gas prices went on average from $1.75 to $3.25 a gallon. All on speculation which feeds on itself

[GQBlues]

Didn't Qadhafi, like Al Gore and Obama after him, received a Nobel Peace Prize?  Notice any common denominator other than the hardware?

Ahmadinejad's latest rant in reaction to Qadhafi's threat to use force against the protesters is hysterical considering the event that took place in Tehran in the last election. He is forecasting the same thing to spread in all of Europe and unto North America.

[Maxx2]

As I said before, Boobus Americanus will wake up when they are forced to sleep in their cars in the parking lots of their employment. To the cop writing the ticket for violating the city ordinance, "Hey man! I got jus enuff money for groceries and nuttin left over for gasoline. How am I gunna to pay this goll durn ticket?!" America is going to become deeply divided between the working class in the private sector and those supported by government and their tax collectors. Just witness what is going on in Madison, Wisconsin. It's the start of what is to come nationwide.

The presidential debates next year should be real interesting.

[SANDRO43]

Didn't Qadhafi, like Al Gore and Obama after him, received a Nobel Peace Prize? 

No, he did not (http://en.wikipedia.org/wiki/List_of_Nobel_Peace_Prize_laureates), much to the disappointment of your all-too-apparent political preferences .

[Maxx2]

Expect silver to explode.

[Rubicon]

Ohhhhh how I dream of Petrol (Gasoline) at $3.50 a gallon.

Its £1.31 GBP ($2.09 US Dollars) per litre or if you like £5.96 a gallon ($9.53 US Dollars)for unleaded here in UK. I just filled my car up this morning at a cost of £93 ($147 US Dollars)

now imagine what could happen if there is a war in the Middle East and the price of oil goes to $250.00 per barrel!!  I shudder to think about it.  the price is already going up because of the crisis in Libya...

[Rubicon]

Expect silver to explode.

yes I definitely agree.  I already have some silver, but I am purchasing some more.

[Rubicon]

Well, I don't know about you guys, but while there's a little time left ... I'm damn sure gonna get laid...

well if there is a war in the Middle East those of us in the USA Russia and Ukraine should be physically safe.  it is the inflation and cost of gasoline which is going to hard to deal with.  but by all means, continue with your enjoyable "activities". 

[Gylden]

Can anyone explain the disparity between the crude oil and brent oil prices lately?