Click on this interactive map from the IMF, it’s amazing and scary

http://www.imf.org/external/datamapper/index.php?db=DEBT

There aren’t enough termites on the planet to chew through

all the paper the US Fed has printed…

Rupees probably taste better anyway, little curry and spice…

US Dollar’s probably tastes weak…..(pun intended)

http://www.bbc.co.uk/news/world-south-asia-13194864

Staff at an Indian bank have been punished for allowing termites to eat their way through banknotes worth millions of rupees.

Staff at the bank, in the state of Uttar Pradesh, are reported to have been found guilty of “laxity”.

The insects are believed to have chewed their way through notes worth some 10 million rupees ($225,000/£137,000).

A similar incident happened in 2008, when termites in Bihar state ate a trader’s savings stored in his bank.

The State Bank of India says an enquiry into the latest incident has been held.

Replaced
“The branch management has been found guilty of laxity due to which the notes were damaged by termites in the Fatehpur branch of Barabanki district,” State Bank of India Chief General Manager Abhay Singh told the Press Trust of India.

The State Bank of India has warned staff to be alert for money-grubbers
“Action will be taken against those responsible in the matter.

“As it was the bank’s fault, it will bear the loss caused due to termites… there will be no loss to the public.”

Ms Singh said that identity numbers on the majority of the notes were still intact, which meant that they could be replaced.

Bank officials discovered that the notes – which were kept in a strongroom – had been damaged by termites earlier this month.

Ms Singh said that directives had now been issued to all branches that stored currency in strongrooms to ensure that the condition of the cash is checked every two months.

Reports say that the branch where the money was stored was old, seldom properly cleaned and known to be a haven for termites.

“It was earlier brought to the notice of the management that termites were damaging files and furniture. Efforts are on to relocate the bank at some other place,” Ms Singh said.

In the incident in Bihar in 2008, trader Dwarika Prasad lost his life savings after termites infested his bank’s safe deposit boxes and ate them up.

Mr Prasad deposited currency notes and investment papers worth hundreds of thousands of rupees in a bank safe in the state capital Patna.

The bank said at the time that it had put up a notice warning customers of the termites.

More on This Story
Related Stories
Termites feast on trader’s money 07 APRIL 2008, SOUTH ASIA
India alarm over ‘illicit money’ 20 JANUARY 2011, SOUTH ASIA

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Good Morning Traders,

Thank you to all of you who have written in the last week to send prayers for, and even asking where to send money to our friends and readers in Japan.

We suggest that any of you who want to donate assistance do so through the International Red Cross, you can contact them here http://www.google.com/crisisresponse/japanquake2011.html there are several other good sources for donation there too. God Bless.

Alternative Realities

The crisis in Japan has renewed the debate about the future and safety of nuclear energy, and for good reason. Meanwhile almost all of the uranium companies share prices imploded on the disaster, dropping 20%+, some may never recover. Even so, the fact remains that as a world, we desperately need a viable domestic uranium industry and while some countries may curtail their nuclear programs for now, others like the US, will certainly have to push ahead.

I will have a much more detailed analysis in this weeks full update, but for now, we need to look at picking up a couple of key strategic uranium producers.

One of my favorite companies in domestic uranium space is Uranium Energy Corp (UEC.NYSE) who recently opened a new ISR mine in South Texas.

UEC has ambitious plans to gradually increase production to one million pounds per year thru several satellite operations feeding a central processing plant.

The UEC Advantage

The company’s initial operating costs at the Palangana mine are a very low $18/lb. It has 12 million pounds of historic and 43-101 qualified resources in all categories in South Texas. Additionally, it controls another 23 million pounds of historic resources in past-producing districts of New Mexico, Wyoming, and Colorado.

Uranium Energy Corp has solid workers and specialists, all highly skilled, a tightly held share structure, and $33 million in cash and working capital. More on UEC and how we plan to move on it and others, in this weeks CC trading update.

Also, I have an update about one of our Dragon Metals holdings, Lynas Corp. If you don’t have our Dragon Metals Report go to www.dragonmetalsreport.com and get your copy now! Only $49.95 while supplies last.

DM Portfolio Holding: Lynas Corp (LYC)

Kevin & Jason’s Trading Note:

For the record, we expect a reverse stock split from Lynas sometime in the next 12-18 months as the company goes towards its full production capacity goals from mining and processing of REOs and also if it decides to uplist to the NYSE or NASDAQ. If Lynas decides not to uplist on a major American exchange, a reverse stock split would be much less likely.

Lynas has a high share count, but as I explained to a few of you here and elsewhere, that can be changed very quickly by a reverse stock split. What matters most is market cap and what the market values the company at regardless of shares.

Reverse splits with rising earnings work.

That’s a good reverse stock split. A bad reverse stock split is one where a company has no earnings and does so to further dilute the shareholders and buy time from possible bankruptcy or to avoid being delisted from a major exchange.

If Lynas does do a reverse stock split I would expect a 1:10 reverse stock split to get down to around 100 million shares. The market cap stays the same and only the share count changes.

So if you have at least 1,000 shares and the reverse split takes your position down to only 100 shares but at a much higher share price, you would be able to use options to hedge your Lynas position if they do indeed uplist.

Just some further chess moves for you to consider. I’m always trying to think a few moves ahead on the chessboard.

P.S. Lynas also exercised its contractual option to purchase a deposit in Malawi, Africa. Good grade REOs at the deposit.

http://www.lynascorp.com/page.asp?category_id=8&page_id=27

Stay safe out there this week. Look for your regular update and as always stay sharp for Urgent Trading Alerts!

Yours for Resource Profits,

Kevin Kerr, Editor & Trader

Great talking with Neil last night from here in Estonia. Got several hundred emails from all of you who saw it, so thanks. The situation in Japan and the markets here in Europe are changing rapidly so check back often, we will have constant updates. Listen to my interview with Neil here.

Click link:

Kerrcavuto3162011

Published on FINANCIAL SENSE (http://www.financialsense.com)
Home > $300 Oil is on the Way

$300 Oil is on the Way

By Kevin Kerr
Created 14 Mar 2011
When nothing changes, nothing changes!

When nothing changes, nothing changes!
As global oil prices surge above $100, consumers are once again reminded of the fact that oil prices are subject to the whims of geopolitics, weather, and growing demand. And unfortunately little is still being done to eliminate dependence on fossil fuels.
As global oil prices surge above $100, consumers are once again reminded of the fact that oil prices are subject to the whims of geopolitics, weather, and growing demand. And unfortunately little is still being done to eliminate dependence on fossil fuels.

Pain Is a Good Teacher

The recent run up in crude oil is reminiscent of the surge crude took back in 2008 up to $147 a bbl. Back then as crude broke through the key $100 mark and surged to the record high, consumers and the government went into panic mode.

Suddenly alternative energy stocks were hot again, talk of hybrid cars was all the rage, drilling off shore became a national emergency, and people even talked about car-pooling.

Unfortunately as soon as crude prices dropped, all that went out the window.

Crude prices dropped from $147 and fell to around $38, essentially nailing the coffin shut on many good energy solutions that had been gaining momentum.

As equity got pulled out of alternative energy companies like solar, geo thermal, coal, wind turbines, etc. may of those companies went bankrupt.

Prices for crude didn’t stay low for long and here only a couple of years later we are seeing crude rallying above $100 again.

So is pain at the pump the only solution. My question is, why does it always have to get to that point?

Fear Factors

While the global recession and credit crunch have severely impacted global demand for energy, it’s only temporary. The problems that propelled oil prices to $147 haven’t gone away, in fact there worse now.

Traders are seasick from the oil markets lately; the volatility has been so extreme. Aside from the obvious macro-factors, the weak dollar is absolutely the biggest culprit in high commodity prices. The Fed’s ongoing decimation of the greenback has undermined any stability in pricing and this in turn has led to unrest all over the Middle East and soaring prices in much of the World.

So what were the major factors that drove oil to record levels the last two years? There are many.

Global demand is among the biggest. Pent-up demand is exploding in growth areas like China and India. Once that global manufacturing engine begins firing again, you can count on energy prices ramping up quickly. If we are seeing over $100 a barrel crude while the global economy is still in crisis, what will prices be like when economies are functioning full speed again? $300 may seem cheap.

There’s been almost no progress in alternatives since 2008. The global investment engine has ground to a halt. After all when the markets crashed and oil prices dropped, the last place investors wanted to put their money was in the alternative energy space. Every sector from uranium miners and clean-coal technology to bio-fuels and oil drillers saw investment and share prices dry up. But here we are again, back at $100, so what’s different?

The Middle East Powder Keg

OPEC has been of little help during the unrest in the Middle East. We already are seeing supplies start to taper off. Eventually, demand will catch up with supply and we’ll be right back in the same boat of higher prices.

The realities are chilling. The largest oil field in Mexico Cantarell is still in major decline and when it does run out civil unrest in that nation could explode. These types of chokepoints, both political and physical, still exist with several major oil exporting nations.

Another key factor, that will lead to $300 oil is that the building of new refineries and pipelines has all but been non existent.

Buying Alternatives on the Cheap

With oil prices rapidly creeping back up, and consumers feeling the pinch, alternative energy stocks may all get a boost soon. Solar companies, wind technology, natural gas stocks, and even rare earth stocks that have all kinds of “green energy” end users for key rare earth elements. Don’t discount opportunities to buy traditional energy plays at these levels too, fossil fuels are not going anywhere soon.

Look at major oil companies that have pulled back significantly, equipment makers and drillers that will be key in exploring in remote regions and deep water for more supply.

Unfortunately for consumers, when it comes to energy, a lot of pain is on the horizon. However investors can essentially hedge themselves from the coming storm by investing in the incredible opportunities oil is affording us at $100, yet again. After all, this may be the last time we see prices at or below the $100 mark for any sustained amount of time.

6 reactors in trouble.

3 reactors with radiation..

2 of them in partial meltdown…

1541: A former nuclear power plant designer has said Japan is facing an extremely grave crisis and called on the government to release more information, which he said was being suppressed. Masashi Goto told a news conference in Tokyo that one of the reactors at the Fukushima-Daiichi plant was “highly unstable”, and that if there was a meltdown the “consequences would be tremendous”. He said such an event might be very likely indeed. So far, the government has said a meltdown would not lead to a sizeable leak of radioactive materials.

1548: Mr Goto said the reactors at the Fukushima-Daiichi nuclear plant were suffering pressure build-ups way beyond that for which they were designed. There was a severe risk of an explosion, with radioactive material being strewn over a very wide area – beyond the 20km evacuation zone set up by the authorities – he added. Mr Goto calculated that because Reactor No 3 at Fukushima-Daiichi – where pressure is rising and there is a risk of an explosion – used a type of fuel known as Mox, a mixture of plutonium oxide and uranium oxide, the radioactive fallout from any meltdown might be twice as bad.

1553: He accused the government of deliberately withholding vital information that would allow outside experts help solve the problems. “For example, there has not been enough information about the hydrogen being vented. We don’t know how much was vented and how radioactive it was.” He also described the use of sea water to cool the cores of the reactors at Fukushima-Daiichi as highly unusual and dangerous.

1558: He described the worst-case scenario: “It is difficult to say, but that would be a core meltdown. If the rods fall and mix with water, the result would be an explosion of solid material like a volcano spreading radioactive material. Steam or a hydrogen explosion caused by the mix would spread radioactive waste more than 50km. Also, this would be multiplied. There are many reactors in the area so there would be many Chernobyls.”

From Zero Hedge

European Gasoline Hits All Time Record Of $8.632 Per Gallon

Submitted by Tyler Durden on 03/08/2011 12:06 -0500

And Americans are complaining at an average gas price in the mid $3 range. In Europe, gasoline has just hit an all time record of $8.632 per gallon! As HLN.be reports: “tomorrow the price of gas will reach an absolute record. Petrol 95 can hit €1.624 per litre. This breaks the 2008 record of €1.61 per liter.” Translated into American this means that a gallon of gas in Europe is now an unprecedented $8.632 per gallon, which will certainly result in Europe literally and metaphorically grinding to a halt.

More from HLN.be:

The newest price increase, with 3.3 eurocent by litre, is the consequence of the increase of the quotations of the oil products on the international markets.

The maximum price of petrol 98 will also increase tomorrow, up to 1.637 euro by litre (+2,2 eurocent by litre).

Also fuel becomes more expensive. For orders of more than 2,000 litres the consumer pays up to 0.833 euro by litre as from morning (+2,5 eurocent by litre). That is record still no: in July 2008 mazout up to 0.954 euro by litre cost at orders of at least 2,000 litres.

The maximum price of diesel today already rose to 1.443 euro by litre. The price of diesel is now near the record of 1.469 euro by litre from May 2008.
Worried about the impact of oil price on the US? Be far more worried with what happens to Europe as the continent grinds to a halt.

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