Resource guru Sprott: "Three-digit price" for silver coming soon
Interview reveals why silver will outperform gold and his favorite silver stocks today... 

Kyodo Reports Radiation At Fukushima Jumps To Twice Maximum Seen So Far

Submitted by Tyler Durden on 03/14/2011 11:52 -0400

As the public is concerned about a possible deterioration at Dai'ichi Reactor 2, which according to TEPCO is now in a worse condition than either Reactor One or Three, Kyodo reports that radiation twice the maximum seen so far detected at nuke plant Monday. We are currently looking for a real time microsievert update or online Geiger counter tracking at Fukushima, which would probably be the most useful service to a population that has been lied to repeatedly (it's all contained until someone actually checks) by the government over the past 48 hours.

Japanese Officials Say Nuclear Fuel Rods Likely Melting In All Three "Troubled" Japanese Reactors

Submitted by Tyler Durden on 03/14/2011 11:31 -0400

It just got worse. From AP:

Japanese officials say the nuclear fuel rods appear to be melting inside all three of the most troubled nuclear reactors.

Chief Cabinet Secretary Yukio Edano said Monday: "Although we cannot directly check it, it's highly likely happening."
Some experts would consider that a partial meltdown of the reactor. Others, though, reserve that term for times when nuclear fuel melts through a reactor's innermost chamber but not through the outer containment shell.

We can only hope that the team that did not test for an 8+ magnitude earthquake did a better job at fortifying the containment shell which is the only thing separating radiation from the outer world.

Guest Post: Does Anyone Seriously Believe The Global Recovery Is Still Intact?

Submitted by Tyler Durden on 03/14/2011 11:20 -0400

Does anyone seriously think the global recovery is still intact? Based on what? Does anyone think that stagnant/declining wages, falling real estate values, skyrocketing prices for materials and energy, and belt-tightening by bankrupt States are ideal foundations for higher profits? Anyone who doesn't realize the quake in Japan is a tragic load dumped on a fragile addict's quivering back (i.e. the global recovery) will undoubtedly be surprised by how fast the global economy will start unraveling. Anyone who kept their eyes open is only wondering how a debt and propaganda-fueled recovery lasted this long.

Radioactivity Detected 60 Miles From Fukushima Power Plant

Submitted by Tyler Durden on 03/14/2011 07:00 -0400

The latest in an endless escalation of bad news comes from Seattle Times: "Pentagon officials reported Sunday that helicopters flying 60 miles from the Fukushima Daiichi nuclear plant picked up small amounts of radioactive particulates — still being analyzed, but presumed to include cesium-137 and iodine-121 — suggesting widening environmental contamination. The detection of the highly radioactive elements heralds the beginning of an ecological and human tragedy. The two radioactive isotopes can mean only one thing: One or more of the reactor cores is badly damaged and at least partially melted down." If true, this also means that the Japanese government is blatantly lying to its people and the world, in its relentless determination to prevent panic and to pursue the party line that after two massive blasts the cores are still stable. And judging by the time stamp, this was announced before last night's second blast: if radioactivity had spread then, how about now? And who can blame Americans and people around the world who are concerned that radiation may be coming their way if nobody is to be trusted.

More Than 1,000 Saudi Troops Have Entered Bahrain; Rumor Oil Exporters Selling US Treasurys

Submitted by Tyler Durden on 03/14/2011 07:14 -0400

And the hits just keep on coming. The news, first noted yesterday that Saudi Arabia would send troops into Bahrain, has just been confirmed with a Saudi Official reporting that more than 1,000 Saudi troops have entered the tiny island home to the US Fifth fleet. Just headlines for now and we will bring you more as we see it. But far more troubling is the rumor that oil exporting countries have now started dumping Treasurys, leading to a soft patch in the govvie space earlier. We have not yet confirmed the rumor, which may have confused the seller of bonds (Japanese insurance companies come to mind).

Bahrain Opposition Groups Says Saudi Occupation Is Declaration Of War

Submitted by Tyler Durden on 03/14/2011 07:29 -0400

Just headlines for now that war may just have broken out in the Persian Gulf. Look for America to have an official statement on this supposed act of war if for no other reason than to indicate on whose side the massive Fifth Fleet is on (for the time being).
And yes, in a day when a perfect clusterflock of black swans hits, news will be just a little faster than usual.

Chinese Economy Slows Further - Monetary Conditions Tighten As Credit Growth And M2 Both Come Below Consensus

Submitted by Tyler Durden on 03/14/2011 07:44 -0400

While geopolitical/logical news continues to dominate, the global economy still is supposed to be driven by something (even as the major slowdown to Japanese GDP is about to be factored in by economists). Today's important news in regard to marginal economic drivers comes from China where commercial banks extended CNY 535.6 billion in loans in February, down from CNY 1.04 trillion in January, substantially below market consensus: of CNY 650 billion. Same with existing credit: outstanding CNY loans grew by 17.7% yoy in February, down from 18.5% yoy in January (market consensus: 18.0% yoy). Just as importantly, M2 growth came in at 15.7% yoy, down from 17.2% yoy in January (market consensus: 17.0% yoy). China was officially slowing down long before of of the devastating news from Japan hit the tape.

Precious Metals Morning Summary

Submitted by Tyler Durden on 03/14/2011 08:32 -0400

Gold ticked lower momentarily to $1,417.63/oz on the open in Asia prior to rising to over $1,432/oz where determined sellers sold aggressively, sending gold back down to near Friday's closing price on the London AM Fix (see chart). Silver also rose initially prior to determined selling. Ordinarily, last week's lower silver and gold weekly close would lead to further momentum-driven liquidation but these are no ordinary times. The catastrophe in Japan is already leading to safe haven demand for gold. Premiums for gold bars in Tokyo rose to their highest level since February. Overnight, gold bars were quoted at a premium of $1 an ounce to the spot London prices in Tokyo, up from zero last week and a discount of 50 cents two weeks ago. In Japan, panic buying and stocking up with essentials such as food and gasoline has seen shortages developing, prices rising sharply and concerns of inflation. A bullion dealer in Tokyo said that premiums were higher as the Japanese market is a bit tight on gasoline, so there are inflation risks."

Report US, Britain And France Have Promised East Libyan Rebels A No Fly Zone

Submitted by Tyler Durden on 03/14/2011 08:41 -0400

Contrary to prior expectations that all No Fly Zone decisions will have to go through the UN, Reuters reports an Al Jazeera update that US, Britain and France have promised East Libyan rebels the imposition of a No Fly Zone. While the latter two were expected, and hardly relevant considering both are quite impotent at actually imposing "any" zone anywhere in the world, the addition of the US, with its USS Enterprise floating in the region, is rather surprising, especially since the nobel peace prize winning teleprompter announced previously how no unilateral invasion (because that is what a No Fly Zone in essence) decisions would be made.

Presenting The Countries Most Exposed To A Nuclear Backlash

Submitted by Tyler Durden on 03/14/2011 09:25 -0400

Following the nuclear power plant explosions in Japan over the weekend, the next step once the world gets over its shock, will almost certainly be a worldwide adverse response against any future nuclear developments (explaining the action in shares of Exelon and Areva). It will likely also see countries that have a substantial exposure to nuclear power plants be pressured to migrate to other sources of energy. Below we present a list of the 30 countries that have the largest exposure to nuclear power generation. At the top are Lithuania, France, Slovakia Belgium and Ukraine, all of whom see at least 50% of their energy needs satisfied by nuclear sources. The US is further back, at 20.2% as of 2009 (equivalent to an energy output of roughly 800 TWh). German is at 26.1% while the UK is at 17.9%. It is possible that many of the countries listed below could see social unrest based on concerns of developments comparable to those in Japan, with the respective governments promptly forced to do the old song and dance how nuclear power is the safest available... until the black swan event occurs and it isn't.

Reminder: Saudi's 5 Million Bpd Gwahar Oil Field Is 60 Miles Away From Bahrain

Submitted by Tyler Durden on 03/14/2011 10:42 -0400

The temporary lull in the Bahrain "peace" is over: Saudi troops have invaded the country, which has prompted the country's opposition to declare the escalation an act of war by Saudi Arabia, and as Reuters reports "Saudi troops who crossed into Bahrain were heading in the direction of Riffa, a Sunni Muslim area that is home to the royal family and a military hospital, witnesses said. They saw 150 armored troop carriers, and about 50 other vehicles including ambulances, water tankers, buses and jeeps. The vehicles were lightly armed and there were no tanks or missile launchers in the procession." All this serves as a reminder that should the violence in Bahrain not be contained, and if there is a "reverse invasion" out of Bahrain into Saudi Arabia, the Ghawar oil field, which supplies more oil than any country except Russia and the US, will likely be the first target of retaliating Bahrainis.