Friday, March 25, 2011
Fukushima Faces Facts on Nuclear Breach; Evacuations "Encouraged"; Mass Job Fair Canceled Due To Lack of... Jobs; Markets Ignore Fundamentals; Annualized M1 Hits 11.3%, GDP "Grows" 3.1%; Sales of Doomsday Bunkers Up 1000%
Update 6: Here's an update that deserves not only a separate post, it perhaps deserves an entire blog dedicated to the absolute madness and propaganda we are exposed to on a daily basis. This example illustrates the hopelessly pathetic job situation in this country. In brief, an entire "job fair" in Massachusetts was canceled due to - wait for it... wait for it... "a lack of jobs!" You can't make this stuff up.
Update 5: In just another example of how serious this situation is and can not simply be explained by "poo and fart" cartoons, 2 Japanese travelers from Tokyo flying to China were treated for "severe" radiation levels. Expect to see more as the situation spirals out of control. These are the first cases of passengers coming from Japan with such high levels. Last week, detectors were set off in Dallas and Chicago when passengers from Tokyo arrived at a checkpoint, but the levels were still low. Not this time.
Update 4: How does the gov't of Syria disperse protesters in the streets? Shoot 'em up. As expected, the Egyptian uprising was just the start of things to come. Next up, expect to see US boots in Syria.
Update 3: Some great video showing the extent of the damage now coming out of China, Myanmar, and Thailand of today's 6.8 earthquake. As you can see, all that destruction and loss of human life is positive news for the markets. Rally on.
Update 2: Kyodo news is reporting that now 3 reactors are confirmed breached. Then again, by simply looking at the pictures, one could have concluded 10 days ago that they were breached. More soon.
Update 1: A survey by NHK is showing that 60% of the survivors of the March 11th catastrophe are unlikely to return home and probably never will.
Before we discuss "the markets" or whatever you want to call them now, let's briefly look at the situation in Japan, which has "officially" deteriorated. The breaking news over night that a "breach" in a reactor "may have occurred" and that the situation is now "very grave and serious" should be no surprise to keen investors watching world news events. For even laymen know that when radiation is detected thousands of miles away in Iceland, when radiation in drinking water 150 miles away is detected, when high levels of radiation in sea water miles away are discovered, when radiation levels 25 miles away from the epicenter in the air are so high one could get sick in hours if not minutes, when radiation is detected in milk and food and made unsafe -- we know at least one of those 6 reactors is leaking. Which is why it is particularly interesting the officials are just now saying "evacuations are encouraged" between the 12-19 mile "safe to stay indoors" zone when the US and all other nations had set the minimum limit at 50 miles. I wonder if money has anything to do with that?
Now that it's been admitted officially that the rods are exposed and likely have been since the March 14th explosions, we can now accept that this is beyond the Chernobyl accident. Of course, this has been known since almost 10 days ago that "Uncovered Nuclear Fuel Rods In Japan Could Ignite A Chernobyl-Like Disaster" as the title of this article dated the 16th of March states. Also 10 days ago, Japanese officials talked about a "lag time" of information as to the reason why the entire world was saying the disaster was much worse than they were admitting to. It seems the "lag time" they were talking about applied to them. Who's kidding who?
Of course, they can always raise the "healthy" limit of radiation exposure... oh, scratch that - they already did. This leads nicely into two other topics: 1) Is this event a foretaste of the way other gov'ts handle these types of situations, which have a very high probability of occurring and 2) if the markets even care anymore about any bad news, here, here, here, here, here and here just to start. Notice too, the timing of an "upward revised" GDP could not have come at a better time (I say show me the money!).
All that matters is the endless flow of money being pumped into the markets to keep them up. Do you have your rally hats on? A quick look at the markets shows green everywhere with a 100 point rally today. Remember the mantra - bad news is good news for the stock markets in this upside down world. At least the wealthy will be saved, as they dole out $20 million for their underground bunkers which have seen sales rise 1000% since January.
As reported here yesterday, Portugal needs $100 Billion in funding and fast. Not only did the entire gov't disintegrate, Portugal has run out of money; not to mention the ECB is looking at even more funding for Greece as well. Soon, Spain will follow. Then comes Ireland looking to get more or simply leave the EU entirely. If a major earthquake struck at the heart of Europe, perhaps the markets would have yet another reason to rally. Absurd, or is it? Take a look at the M1 money supply being pumped into the economy.
Thus, we will continue to see more inflation around the world in the things we need and use everyday, and deflation in things we want to keep as an investment such as housing. But who wants to hear about fundamentals? All that matters is the Fed's unofficial mandate to pump up the markets at any "cost" until the DOW reaches 54,000. Therefore, I leave you with the most important topic that means anything right now and for many months ahead - Japan.
at 9:37 AM