World News (Mon 27th. June ’11)

  By Mystic | June 26, 2011 - 11:19 |

Politics resisting reality, US, China and Europe.
[audio:http://overthepeak.com/wordpress/wp-content/uploads/2011/06/Mon27June_001.mp3|titles=Mon27June_001]


Links – 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

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Written by: Mystic on June 26, 2011.
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  • Anonymous

    Good evening again Nick, and what a fine evening it is here in England today…!!!

    Although the link 3 graph be explained by prices falling, so the amount of equity falls with respect to outstanding debt,
    I am thinking that people releasing equity from their homes, and either spending it,
    or putting it down on another deposit for another home has increased the sharp decline seen…???

  • Anonymous

    The Euro question raised it’s ugly head again this evening on OTP,
    so I thought I would post a link of Nigel Fararge, discussing the greek issue and the Euro….

    http://www.youtube.com/watch?v=SAH3hpCdthw

    I am not affiliated with UKIP… ( just thought I would add that )…. :)

  • Anonymous

    Nick, good you mentioned the oil release from the SPR (link 4/ link 5)

    Also on theoildrum some ‘argumentation’ why ‘the decission was taken’ to release some oil from the Strategic Petroleum Reserves.

    Link to the article:  http://www.theoildrum.com/node/8069
    In my view especially the comments are very interesting [speculations about: are there besides NON- political reasons also political motives to release oil from the SPR?]

    Below some arguments (one argument doesn’t have to exclude another argument. It can be a conglomerate of reasons (motives) for releasing oil from the SPR.

    1)
    quote from an article:
    The loss of Libyan crude, which is light and sweet and has proved difficult
    to replace, has led to tightness in oil markets, especially in Europe, Libya’s
    main market. European commercial crude stocks are now at five-year
    lows.

    2)
    quote from an article:
    The move to release oil from the SPR is a tacit admission that the
    speculation argument is rubbish. After all, if the rally in oil is all about
    speculators and the world is truly awash in oil, then adding an additional 2
    million barrels per day to that supply won’t help the situation. It doesn’t make
    sense to argue that this move is necessary to offset disruptions to Libyan oil
    exports, while also arguing that supply and demand have nothing to do with oil
    prices. . .

    3)
    quote from an article:
    The IEA stated that global oil demand will increase by 1 million barrels per day
    between the second and third quarters of this year alone. This is due to the
    seasonal ramp in supplies that coincides with the SUMMER DRIVING SEASON in the
    Northern Hemisphere. Projections from the IEA and the US Energy Information
    Administration showed that without much additional OPEC supplies, global
    commercial oil inventories would decline sharply through the summer amid the
    ramp-up in demand. Global oil inventories would have thinned substantially by
    the fourth quarter. . .

    4)
    quote from an article:
    the decision to release 60 million barrels of oil from global SPRs partly a
    political move designed to bring down oil prices ahead of the summer driving
    season. That may work over the next few weeks. But the more important point is
    that it reflects how tight the global oil market has become and that meeting
    global oil demand growth will require an unacceptable decline in global spare
    capacity.

    But [based on what I read in the comments] for (most) peakoilers the bottomline is as follow: There is not enough supply of affordable oil to sustain sufficient economic growth.
    That most politicians don’t dare to tell the public there is a structural problem with cheap energy and that the latter has serious consequences for the world economy. I am afraid many people would not except a message of scarcity. That it is all speculation or whatever other reasons but not real scarcity…The driving season is just beginning….

    • http://overthepeak.com/wordpress/ Mystic

      For a Peak Oil person, the answer is obvious (that doesn’t make the answer right).
      It may be a shortage (probably is) of light sweet.

      Interesting to look into the minds of `politicians` and `the people`………..and see plain disbelief that it could be `a genuine shortage`.

      If this is to be labelled as the first obvious `world announcement of Peak Oil`, we must add that the IEA and the politicians that signed off on this, cannot now say they don’t know what is going on.

      I must admit that it has shaken me.  (there are some big jumps in one’s level of realization)

      It is impossible to express what a painful process this is going to be~!

      • Anonymous

        “For a Peak Oil person, the answer is obvious (that doesn’t make the answer right).
        It may be a shortage (probably is) of light sweet”.
        Ofcourse it doesn’t make the answer right! What the real reasons are to open the SPR is speculation. Looking through colored glassed to a certain subject.
        If I am correct most of the refineries in Europa need light sweet crude. It would take huge investments to rebuild refineries so that they can refine the heavier oil. More oil and expensive equipoment needed to produce 1 gallon of gasonline etc. etc.

        “If this is to be labelled as the first obvious `world announcement of
        Peak Oil`, we must add that the IEA and the politicians that signed off
        on this, cannot now say they don’t know what is going on”.
        Yes, that is why I am very interested in how things are formulated to the public. But in my view the IEA is giving clear signals to the public (and politicians) that there is a real problem with cheap oil and that it is structural.
        I would be suprised if not a significant part of the politicians are taking peakoil serious.

        “If this is to be labelled as the first obvious `world announcement of
        Peak Oil`, we must add that the IEA and the politicians that signed off
        on this, cannot now say they don’t know what is going on”
        Also my idea!

        “I must admit that it has shaken me.  (there are some big jumps in one’s level of realization)

        It is impossible to express what a painful process this is going to be~!”
        Yes, if the peakoil reason is true (and in my opinion it is true, but ofcourse it doesn’t have to be true) many people have a very hard time to accept  the thruth and especially its implications for our modern way of life. I was              suprised by the ‘releasing from the SPR news. Mostly  only in emergency situations the SPR  is used.   

    • Stevo

      And now they wait for 60 million barrels from Saudi to refill their reserves.  Like an episode of When The Boat Comes In.

      • Anonymous

        Yes, possibly another signal to Saudi Arabia that the OECD need a lot more oil. When the SPR becomes more and more empty the saudies (and OPEC) can’t use the argument anymore that there is “enough oil available on the markets”. But ok, whats enough.

  • Motamouse

    Has the de-leveraging begun.

    • http://overthepeak.com/wordpress/ Mystic

      Some say yes.  Some say no.
      (they are probably both right)

  • Motamouse

    Has the de-leveraging begun.

  • CSArichardo

    Hi Nick…nice you tube.

    Let’s face it…at some point you have to fight back if you want to survive. 

    This is the real world which we seem to try to rationalize away as uncivilized ….. where it is eat or be eaten ! 

    I guess it is uncivilized !  Welcome to an over populated planet called … Earth.

  • Windcutter

    Here comes a possible spanner into the machinations of the Euro-heroes.

    http://www.athensnews.gr/issue/13449/43821

    “GERMANY’S constitutional court on July 5 will begin hearing a lawsuit against the aid provided to Greece and eurozone rescue packages in general, filed last July by a group of five Eurosceptics led by economist Joachim Starbatty. According to the plaintiffs, the financial help package for Greece runs contrary to article 125 of the EU Treaty – the so-called no-bailout clause – which does not allow the EU or a member state to undertake the responsibility of covering the debts of another member state”

    The Treaty is the Treaty and the Law is Law. Wonder how they are going to wriggle out of it this time.

    • http://overthepeak.com/wordpress/ Mystic

      They would have to be very bold to pass a judgement that could blow the Eurozone up.

  • Stevo

    10 more lessons in attempts at pain management.

    Perhaps they could learn a thing from the medical profession.  Instead of curing the ailment, load the people up with opium derivatives as they did in China for 400 years.

  • Bigcollapso

    Political manipulation is powerful for some things. Increasingly our problems are in the domain of the real world which cannot be manipulated by the liars. Although they try the same box is tricks, they are powerless. On one hand they have an era that many could only dream of, a populous mesmerizer by reality tv and sport, and that will stand idly by as high crimes and felonies are committed in broad daylight But the real world had become unaccommodating to their operation. Bummer.

    • http://overthepeak.com/wordpress/ Mystic

      Ah well~!  It was good while it lasted~!?

      • Bigcollapso

        Went out to do a little work, and had this thought.
        Maybe the Surgeon General can issue a warning that buying Gasoline or Diesel will clog your veins and kill your heart. Might work better that selling some of the emergency 30 day supply.

        • http://overthepeak.com/wordpress/ Mystic

          I bet there a plenty of highly paid folk that will come up with cleverer shit dan dat~!

  • rich

    I still think that the Euro has a built in way of at least trying to impose fiscal responsibility on it’s members. Sure, when each country had it’s own central bank, things were much more flexible. They were able to simply “ease” their way away from austerity and conservation. But where does that eventually lead? There is NEVER the political will or discipline to impose fiscal responsibility on one’s own nation. At least with the Euro their are “other” mitigating influences when the urge to kick the can is so intense.
    Whether or not this advantage can be brought to bear is another story.

    • http://overthepeak.com/wordpress/ Mystic

      The school rules say that the children cannot run in the corridors, but the teachers are lax in implementing the rules……so there is running in the corridors. 

      • rich

        Until one of the children fall and seriously injure themselves. Then the rules are enforced, and the children are safer.

        • http://overthepeak.com/wordpress/ Mystic

          Set the children free~!!

          • rich

            Set them free to feed themselves? To protect themselves? To shelter themselves? To care for themselves when they are ill? To educate themselves?
            Doesn’t sound like a promising prospect. I would argue that the children are better off with the discipline imposed on them by guardians whose interests lie in their own propagation.

            • http://overthepeak.com/wordpress/ Mystic

              How sad.

              • rich

                Sad? Maybe. But a fact of life, none the less.

  • Jantje

    Nobody wanted the euro, except politicians and maybe a few big companies. The other ones just believed the propaganda how good it was.
    You do  not have to exchange guilders for pesetas when you go to Spain on holiday.
    Well that is great isn’t it? Everything for convenience, even if everybody gets bankrupted.
    But the politicians can have their nice jobs in the EU and bonuses.
    Great.

  • safeinsuburbia

    MM, are you ok?

    Your voice seem deeper, like you’re becoming Andre the Giant.

    Your mopy affinity to Gary, and now this, are beginning to worry me.

    Hopefully it’s just the mic?  You don’t seem seven feet tall.