Asia

Chris Martenson has written an article about the Japanese economy

Japan Is Now Another Spinning Plate in the Global Economy Circus

"For those who are in a hurry today, the bottom line is that Japan is in serious trouble right now and is a top candidate to be the next black swan. Here are the elements of difficulty that concern me the most, each one serving to reduce Japan's economic and financial stability:

• The total shutdown of all 54 nuclear plants, leading to an energy insufficiency

• Japan's trade deficit in negative territory for the first time in decades, driven largely by energy imports

• A budget deficit that is now 56% larger than revenues (!!)

• Total debt standing at a whopping 235% of GDP

• A recession shrinking Japan's economy at an annual rate of 2.3%

• Renewed efforts underway to debase the yen"

For Chris Martenson’s article GO HERE

This, along with the drought in Texas spells disaster for cotton prices. If there's any cotton clothing you want, get it now. It just might be going away for good. -- MCR

India Bans Cotton Exports

CNN Money,  5 March, 2012

India banned all cotton exports on Monday, causing U.S. cotton futures to surge and igniting fears of another jump in prices for cotton goods.

India decided to immediately impose the ban because it's worried about a possible supply crunch in the country. One reason: India's cotton exports may have overshot government targets last year, its Directorate General of Foreign Trade said in a statement.

U.S. cotton futures jumped 4.5% -- the most allowed in a single day of trading -- to 92.23 cents per pound following the news.

"This India development really caught the entire cotton industry and traders off guard because it came with no warning," said Phil Flynn, senior market and commodities analyst with PFG Best.

Flynn said the market reaction to India's move reflects concerns that it could start a new rise in cotton prices that mirrors last year's rally.

Cotton prices hit an all-time high of $2.27 a pound last March due to a global supply crunch for the commodity.

Cotton clothing manufacturers responded to that steep price jump first by raising prices for consumers and eventually using less cotton and more blended fabrics such as poly-cotton.

Flynn said cotton prices cooled off toward the end of last year and reached as low as 84.35 cents a pound

Indonesia was a founding member of OPEC. They peaked ages ago and are ever-more dependent on imports... It's called PEAK OIL. -- MCR

Indonesian Lawmakers Asked to OK 33% Fuel Hike

Jakarta Globe,

6 March, 2012

The government is a step closer to raising the subsidized fuel price by 33 percent to Rp 6,000 a liter, with the proposal now with lawmakers, even as students across the country continued to protest the move on Monday. 

Speaking at the State Palace, Energy and Mineral Resources Minister Jero Wacik said the proposal had been signed by Finance Minister Agus Martowardojo on Wednesday and submitted to the House of Representatives. He did not say when it was submitted. 

“This is what we have proposed and if possible it should not be modified because otherwise it will be difficult for us,” he said. “We think the figure is reasonable given the current situation.” 

He said the proposal was now being debated at the House. 

For article GO HERE