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News Sept-Oct 2009


THU 8th OCT 2009

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Warning over global oil 'decline'   BBC News    Sarah Mukherjee

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There is a "significant risk" that global production of conventional oil could "peak" and decline by 2020, a report has warned.

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Peak oil could hit soon, report says   

guardian.co.uk

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Era of cheap, easy oil is over, warns study   

Telegraph.co.uk

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China calls time on dollar hegemony  

Ambrose Evans-Pritchard  Telegraph

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You can date the end of dollar hegemony from China's decision last month to sell its first batch of sovereign bonds in Chinese yuan to foreigners.

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Will California become America's first failed state?   guardian.co.uk

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Los Angeles, 2009: California may be the eighth largest economy in the world, but its state staff are being paid in IOUs, unemployment is at its highest in 70 years, and teachers are on hunger strike.

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"Lucky break" slows spread of swine flu    guardian.co.uk

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Britain's swine flu outbreak is slowing down, possibly as the result of a "lucky break" in the way the virus has behaved, the chief medical officer said today.

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7th OCT 2009

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The demise of the dollar   Independent

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In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

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The end of the dollar spells the rise of a new order   Independent

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This radical proposal is a reflection of a changing economic world

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Colin Campbell: "What are the financial consequences of Peak Oil"?   LATOC Archives

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Matt Savinar: The Most Important Thing You Don't Know About "Peak Oil"    LATOC Archives

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Richard Heinberg: "Will you be eating after the economy collapses?"    LATOC Archives

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6th OCT 2009

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Peak Oil: The End Of the Oil Age is Near, Deutsche Bank Says   

Wall Street Journal

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Police opt for electric Mitsubishi   Channel 4

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Police forces in the UK are turning to electric power for their new fleets of panda cars. West Midlands Police force will be the first force to run Mitsubishi's all-electric i-MiEV city car for operational use and the Japanese company says more

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Potential end of dollar-based oil deals helps gold shine    Marketwatch

  

Gulf Arab states, along with China, Russia, Japan and France, are planning to put an end to dollar-based trading in the oil market, according to an exclusive report published Tuesday in the U.K. by The Independent.

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House prices: rise 'unsustainable'    Telegraph.co.uk

A leading firm of economists have said that the five consecutive months of house price rises reported by the Nationwide Building Society are unsustainable.

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Glaxo sees huge demand for vaccine    

The Press Association

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Drugs giant GlaxoSmithKline said that it was shipping another 149 million doses of its swine flu vaccine as governments step up their fight against the pandemic.

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The great swine flu mystery   Independent - Alistair Dawber 

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It's a bonanza! At least that is how some describe the drug industry's expected windfall from the swine flu pandemic

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3rd OCT 2009

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Obama Meets Top Afghan Commander as He Mulls Change in War Strategy   

New York Times

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COPENHAGEN - President Obama held an unannounced meeting here on Friday with Gen. Stanley A. McChrystal, his Afghanistan commander, to discuss a possible change in strategy and a proposed troop buildup in the eight-year-old war.  General McChrystal has requested as many as 40,000 more troops for the effort in Afghanistan and issued a dire report warning that without more forces the mission there would fail. Mr. Obama already sent an additional 21,000 troops earlier this year, for a total of 68,000 by this fall.

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2nd OCT 2009

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Five hundred more British troops set to be sent to Afghanistan   

Mirror.co.uk

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Five hundred more British troops will be sent to Afghanistan under plans due to be presented to the Cabinet next week. Pm Gordon Brown said yesterday: "Barack Obama and I are looking at how we can train up the Afghan army and Afghan police and improve ...

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1st OCT 2009

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Credit collapsing on both sides of Atlantic   

Ambrose Evans-Pritchard   Telegraph

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Private credit is contracting on both sides of the Atlantic. The M3 money data is flashing early warning signals of a deflation crisis next year in nearly half the world economy. Emergency schemes that have propped up spending are being withdrawn, gently or otherwise.

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I.M.F. Calls for Overhaul of Financial System   New York Times


WED 30th SEPT 2009

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Hillingdon PCT unveil Swine Flu vaccination plan   Uxbridge Gazette

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NHS chiefs in Hillingdon have released a plan of action ready for when a vaccine against Swine Flu is made available- and it does not include children.  The PCT argue that while children are disproportionately affected by swine flu, the vast majority make a full recovery, so experts are not advising that children, other than those in at risk groups, should be vaccinated initially.

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Wood chip power station given go-ahead   WalesOnline

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A new power station that will use wood chip to produce enough electricity to supply half a million homes was given the go-ahead by the Environment Agency today.

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Four degrees of warming 'likely'   

BBC News

In a dramatic acceleration of forecasts for global warming, UK scientists say the global average temperature could rise by 4C (7.2F) as early as 2060.

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Prince of Wales launches campaign to save rainforest   

Telegraph.co.uk

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The Prince of Wales has launched a ground-breaking "SOS" text campaign to save the rainforests, backed by some of the world's biggest companies and celebrities including Sting, Joanna Lumley and Stephen Fry.

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What it felt like to lose everything  Times Online

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We once had limitless money. My husband had a hedge fund on Wall Street - his tax return in one year alone was $50m. In New York, money is king; if you're making a great deal of it, you're a rock star.

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Up to the waist in Brown's slurry on my new farm  Times Online - Jeremy Clarkson

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Last week I bought a farm. Though financially speaking, it's entirely possible I've bought the farm. But let's look on the bright side.

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29th SEPT 2009

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B-Prep Note: Lots of interesting news today...

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Forced Vaccinations for New York State Workers   Newsday

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Forced Mandatory flu vaccination splits workers 

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Ten Reasons for an Imminent Stock Market Crash  Seeking Alpha

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The coming Population Wars: a 12-bomb equation  

marketwatch

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Can Gates' Billionaires Club stop these inevitable self-destruct triggers?

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Robocops Employ Scary Crowd-Stopping Technology at Pittsburgh Protests   

AlterNet

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An arsenal of "crowd control munitions," was deployed with a massive, overpowering police presence in Pittsburgh during last week's G-20 protests.

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28th SEPT 2009

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Flu vaccine rekindles debate over connection to autism  Calgary Herald 

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The much-anticipated H1N1 vaccine has given new life to an ongoing debate about whether vaccinations in children can cause autism, a discussion ...

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Swine flu vaccine to contain axed additive   

Gulf Times

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Fear the vaccine, not the swine flu itself   

Standard Freeholder

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Cyclists benefit from £14m 'hubs'  BBC News

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Plans for £14m of investment to improve facilities for cyclists who use railway stations have been announced. Ten stations in England will get "cycle hubs" which will provide storage facilities, repair services and bicycle hire schemes.

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FRI 25th SEPT 2009

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Mass swine flu vaccination could begin within weeks  

guardian.co.uk 

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Mass vaccination against swine flu could begin within weeks, following the approval of two vaccines by the European regulator today

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UK swine flu vaccine 'approved'  BBC News

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Swine flu on the rise, as 66 schools report fresh outbreaks   

guardian.co.uk

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Swine flu cases in England almost doubled last week with at least 66 schools reporting outbreaks, according to the Department of Health ...

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Swine flu cases double as children return to school Daily Mail

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G20 to police new world economic order  Telegraph.co.uk 

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The Group of 20 rich and developing countries is to take on a new role as caretaker of the global economy, giving rising stars such as China and India more say in world affairs.

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Video: G20 protest in US: Police silence freedom of speech RT

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HSBC moves East in power base shift  

This is Money

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HSBC plans to base all of its future chief executives in Hong Kong, signalling its belief that the shift in economic power towards the East will not be reversed.

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Wilcke to head toxic asset protection scheme  guardian.co.uk 

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The Treasury has picked a former management consultant and private equity boss to oversee the scheme. Photograph: Cate Gillon/Getty The Treasury has picked a former management consultant and private equity boss to take charge of its mammoth £585bn bank ...

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BoE economist warns against too much Qauntitive Easing  

Money Marketing

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Bank of England chief economist Spencer Dale has warned that there is a danger of creating a new bubble in the markets if quantitative easing is over-used.

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Venezuela seeking uranium with Iran's help  The Associated Press 

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CARACAS, Venezuela - President Hugo Chavez's government says Iran is helping to detect reserves of uranium in Venezuela. Mining Minister Rodolfo Sanz says Iran has been assisting Venezuela with geophysical survey flights and geochemical analysis of the ...

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Loss of soil threatens food production, UK government warns   

guardian.co.uk

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World consumption plunges planet into 'ecological debt'  guardian.co.uk

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Rich consumers are still voraciously gobbling up the world's resources, despite the worst recession in a generation, with their appetite pushing the planet into "ecological debt" from today , according to a report by think-tank the new economics ...

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Fruit and veg have 'unacceptable' levels of pesticides  Telegraph.co.uk 

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Many fruit and vegetables sold in supermarkets and greengrocers contain pesticide residues that are above the maximum legal level, an in-depth report has said.

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Chemicals Found In Schools' Free Fruit  

UK Express

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.24th SEPT 2009

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HSBC bids farewell to dollar supremacy  

Telegraph.co.uk  

Ambrose Evans-Pritchard 

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The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC.

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FDIC weighs extraordinary steps to shore up fund

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23rd SEPT 2009

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Australia engulfed by dust storms  

guardian.co.uk

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Storms of red dust have produced a glowing orange sky over much of Australia's east coast as the country experiences freak weather conditions.

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21st SEPT 2009

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Tamiflu warning as swine flu cases rise  

Shields Gazette

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PARENTS whose children have been given Tamiflu for swine flu are being urged to contact their GPs if their conditions worsen. The symptoms of swine flu can be similar to other illnesses that Tamiflu is not effective in treating.

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19th SEPT 2009

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Babcock buys commercial arm of UK Atomic Energy Authority  Times Online

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One of the last remnants of Britain's once-mighty state-owned nuclear industry is to be transferred into private hands, the Government said yesterday.

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Britain's nuclear caretaker privatised in Babcock sale  

guardian.co.uk

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Paul Reichmann gives up Canary Wharf stake  Telegraph.co.uk

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The founder of Canary Wharf, Paul Reichmann, has given up his stake in the London Docklands development, effectively marking the end of his 22-year involvement with the site.

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Lloyds forced to abandon toxic asset plan  Citywire.co.uk

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18th SEPT 2009

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Is Leeds rubbish war a sign of things to come for Britain?  Independent 

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Ten days into a strike by the city's bin men and the dispute over Leeds' rubbish collection was already proving a dirty affair.

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Blackstone bags a bargain and gets cut-price City offices from British Land  Daily Mail

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Property giant British Land has finally sold half of its £2.2billion Broadgate office complex to Blackstone - but for just £77million in cash.

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Public debt hits £800m - the highest on record  

Times Online

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Britain is clocking up debt at a rate of £6017 per second as the Government struggles to balance the books. With tax receipts plummeting because of the recession, state borrowing grew by £16.1 billion last month - almost twice the entire budget for the ...

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17th SEPT 2009

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Obama shelves Europe missile plan  BBC News

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President Barack Obama shelves controversial US missile defence plans for Europe, in a major foreign policy shift.

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Britains Year 2000 Fuel Protests Offer Chilling Preview of Future  

LATOC Archives / Peak Oil Blues

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Chavez Seeks to Boost Oil Output With $16 Billion China Deal  

Bloomberg

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Venezuelan President Hugo Chavez said that China will invest $16 billion to boost oil production in the country, as part of a strategy to reduce dependence on the US and strengthen oil ties ...

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Rise in swine flu cases signals second wave could have begun  

Telegraph.co.uk

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The rise in cases was mainly seen among school age children, with six schools across the country reporting suspected outbreaks

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Mass swine flu coffins warning  Scotsman

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MINISTERS have been urged to have thousands of cardboard coffins ready for mass deaths should swine flu take a turn for the worse

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16th SEPT 2009

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Rolls-Royce set for key role in UK nuclear project  Telegraph.co.uk

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Rolls-Royce is set to play a key role in the revival of Britain's nuclear industry after revealing plans to collaborate with EDF Energy on the construction of four new power plants.

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UK Coal raises £100 million to pay down debt  Times Online

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UN announces ozone-killing sprays now completely banned worldwide  Ha'aretz

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UNEP hails Timor-Leste's signing of Montreal protocol  

Xinhua

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New Japanese leader is sworn in to start reform  Independent 

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Japan's new Prime Minister took office yesterday, launching an untested government which has pledged to radically change how the nation is run and make domestic demand, not exports, the engine of economic growth.

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Pilgrims Need Flu Certificates for Mecca Hajj  Holiday hypermarket 

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Pilgrims planning to travel to Mecca for the annual Hajj will now have to produce valid flu certificates.

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Tories pledge to end the database state  

ZDNet UK

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The Conservative Party has promised to reduce government databases and introduce stronger measures to protect people's privacy, if it wins the next general election.

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Renewables focus for Wales' first 'low carbon town'  New Energy Focus 

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15th SEPT 2009

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The financial reality that Obama will not acknowledge  

Times Online

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Lehman: 'alarm bells should still be ringing'  

Times Online

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gps will be handed a £4000 bonus for swine flu jabs  Daily Mail

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gps will receive bonuses worth thousands of pounds to deliver the swine flu vaccine, it has been announced. Despite having seen their pay soar in recent years, they will be given more cash from the hardup NHS to carry out the ...

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14th SEPT 2009

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A risk of total collapse   

Guardian Archive 2005

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Stiglitz Says Bank Problems Bigger Than Pre-Lehman 

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Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.  “In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview yesterday in Paris. “The problems are worse than they were in 2007 before the crisis.”

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Ambrose Evans-Pritchard: EU faces 'existential' danger from economic crisis  

Telegraph

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Revealed: The ghost fleet of the recession - the pictures economic csensors don't want you to see  Daily Mail

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The biggest and most secretive gathering of ships in maritime history lies at anchor east of Singapore. Never before photographed, it is bigger than the U.S. and British navies combined but has no crew, no cargo and no destination  -  and is why your Christmas stocking may be on the light side this year.

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Read more: http://www.dailymail.co.uk/home/moslive/article-1212013/Revealed-The-ghost-fleet-recession.html#ixzz0R7QSX2Uy

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What The Bankers Got Away With   Newsweek

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Swine flu claims life of first 'healthy' victim  

Scotsman

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A MIDDLE-AGED man has become the first person in Scotland to die from swine flu without having an underlying health condition. The 53-year-old, from Fife, is the eighth person in Scotland to die with the H1N1 infection.

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Climate change: melting ice will trigger wave of natural disasters  guardian.co.uk

Scientists at a London conference next week will warn of earthquakes, avalanches and volcanic eruptions as the atmosphere heats up and geology is altered.

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Factbox: Chavez's ties with Russia: arms, energy, politics  Reuters

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Venezuelan President Hugo Chavez on Thursday recognized the pro-Russian rebel regions of Abkhazia and South Ossetia as independent states.

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Medvedev says Venezuela key partner of Russia   Xinhua

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13th SEPT 2009

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Latest UK Swine flu update from the NHS  

Gov Monitor

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Britain "close to winning" H1N1 flu fight - official  Reuters UK

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Lehman collapse: the drama of a mad 48 hours that will never fade  Telegraph.co.uk

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The collapse of Lehman Brothers started a chain of events that has cost governments $9 trillion. Here, we look back at its final days.

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10th SEPT 2009

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Britain heading back to the dark ages  Telegraph

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The UK is facing a tipping point over the next few years in its ability to generate enough power to satisfy an ever-increasing demand.

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Why $200 Oil is Just Around the Corner   

Rigzone News

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Washington Finally Admits: Peak Oil Is Real  whiskey & gunpowder

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Tamiflu swine flu policy 'should be reviewed urgently'   

Pulse 

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Prescribing experts have called for an urgent review of the NHS's use of Tamiflu in tackling the swine flu pandemic - amid concerns that the public have been misled about the drug's effectiveness.

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Electric car charging points plan  BBC News 

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Nine cities and towns in the UK are to have charging points for electric and hybrid fuelled vehicles under an £11m development plan.

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Critical care doubled for return of swine flu  guardian.co.uk 

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The government's chief scientist says a second wave of swine flu is inevitable. 

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Secret documents reveal Thatcher's fears that a united Germany would gain more ground than Hitler  

Daily Mail

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Factbox: Chavez's ties with Russia: arms, energy, politics  Reuters

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Venezuelan President Hugo Chavez on Thursday recognized the pro-Russian rebel regions of Abkhazia and South Ossetia as independent states.

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Medvedev says Venezuela key partner of Russia   Xinhua

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9th SEPT, 2009

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Carbon rationing may be needed by 2012, says IPPR  The Ecologist 

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The report, Plan B? The prospects for personal carbon trading, says existing measures on reducing individuals' carbon impact, such as smart meters and the Low Carbon Buildings Programme should be given time to succeed.

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North Sea oil fields could store carbon  

Telegraph

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Vast quantities of carbon dioxide could be stored in porous rocks beneath the North Sea, providing a potential money-spinner for the UK on a par with off-shore oil, it was claimed.

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Storing carbon dioxide could be Britain's new oil industry  Times Online

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Pesticides fingered in UK honeybee wipeout  

Register

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A new study appears to have confirmed suspicions that the neonicotinoid group of pesticides is in part responsible for the dramatic decline in UK honeybee numbers, the Telegraph reports.

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8th SEPT 2009

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U.S. Dollar Will Weaken, Currency Crash Possible, Roubini Says    

bloomberg

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China Alarmed by U.S. Monetary Expansion Policy    bloomberg

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Meltdown 101: Why does $1000/ounce gold matter?  

The Associated Press

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7th SEPT 2009

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***** B-Prep Note: The following three articles are a MUST-READ for anyone who wants a detailed overview of the financial collapse of 2008, and to further understand just how fragile our global systems are:

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Missing Lehman Lesson of Shakeout Means Too Big Banks May Fail   bloomberg

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UK was hours from bank shutdown - FSA ready to close cash machines during crisis guardian.co.uk

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Britain was within hours of a banking shutdown last autumn as the government battled to piece together a rescue plan for the stricken Halifax and Royal Bank of Scotland, it has emerged.

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Dark days when banks reached brink of oblivion  guardian.co.uk

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After Lehman Brothers collapsed a year ago, financial contagion spread like a virus around the world. Here Jill Treanor and Larry Elliott tell the inside story of the manoeuvres to save British banking Sir Fred Goodwin went white and silent.

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Thousands set for Offshore Europe  

BBC News 

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Tens of thousands of people are expected to generate millions of pounds of business as the world's biggest oil and gas conference begins in Aberdeen.

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Chavez ready to export gasoline to Iran  Xinhua 

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TEHRAN, Sept. 7 (Xinhua) -- Venezuelan President Hugo Chavez said that his country is ready to provide Iran with gasoline, the local satellite Press TV reported on Monday.

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Activists to target City firms over international arms fair   This is London

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Brazil, France close to seal major arms deal  

PRESS TV 

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Brazil has announced plans to ink a substantial arms contract with France, which would allow the South American state to buy 36 fighter jets.

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Ministers 'waved through' sale of riot equipment to Libya  

Times Online 

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Ministers waved through an export of water cannon to Libya despite concerns that they could be used for internal repression

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Ian Dalton's swine flu update   Nursing Times

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National director for NHS flu resilience Ian Dalton discusses the revised planning assumptions for the pandemic

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Short-haired bumblebee to be reintroduced in Britain  Times Online

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A bumblebee species that has been extinct in Britain for almost a decade is to be reintroduced next year, from a colony of the insects that was exported to New Zealand over a century ago.

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6th SEPT 2009

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Health chiefs stockpile drugs in case of swine flu epidemic   

guardian.co.uk 

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Health service chiefs have outlined plans to stockpile billions of doses of essential medicines in readiness for the swine flu epidemic that is expected to hit Britain later this year.

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Swine flu death estimate 'reduced by two-thirds'  

Telegraph.co.ukP

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We take emergency preparation and food storage seriously, and so should you.  Civilization was built on the availability of clean water and the ability to store food.   There are many reasons why food scarcity could become a crisis here in the UK, not just in some other far-away land, such as: Pandemic, Economic Instability and Collapse, Crop Failure, Logistical Supply Chain Failure, Peak Oil, and Climate Change.

Pandemic

Swine Flu, Bird Flu, resurrected Spanish Flu, or anything else we haven't heard of yet.  The World Health Organization (WHO) has officially declared the H1N1 virus a worldwide level 6 (the highest level) pandemic, the first in 41 years.  This news story was number 2 on the BBC news, (being pipped to No. 1 by Ronaldo's transfer to Real Madrid!).

WHO declares swine flu pandemic

'Several million' swine flu cases possible in UK | World news | The Guardian 

In the 1918 Spanish Flu pandemic, over 50 million people worldwide died, equal to the current population of England. One out of every four people who caught the virus died.  Think of it.  One out of four people. You?  Your spouse or partner?  Your child?  It's not good odds.

In the case of a serious pandemic, schools will be closed and supermarket shelves will be bare within hours. Public services such as transportation, police, government and hospitals will struggle to maintain normal operation - many of their workers will be sick, unable or unwilling to come into work, or even dead. Schools, supermarkets, transport, workplaces, and public events - wherever large numbers of people traffic and interact - are all the highest risk places for contagion.  For this reason the government will advise all but the most essential workers to stay at or work from home. Where will you get your food?

Rather than trying to scare the wits out of people, we are trying to educate, advise and empower people to take positive action to protect themselves and their loved ones, by taking out the very best insurance policy there is - food and clean water.  It's too late to buy a fire policy when the house is on fire!  Survival experts all agree that the best way to optimize the chances of survival for you and your family (and let's face it - that's what we're talking about, and why you are reading this) - is to stay indoors and avoid outside contact with people for six to sixteen weeks (!), until the main waves of the pandemic have passed.  Be sure to also have a supply of any medication you rely on, as well as books, board games, cards, puzzles and a radio!  

But don't just take our word for it.  The UK Government considers pandemic the No. 1 threat to the nation, well above terrorism, and for good reason: in 1918 when 50 million died, it took three weeks to cross the Atlantic by ship. There was no mass transportation or air travel between countries.  Most people still lived in the country or on farms, and had access to food or had food stored in larders.  We urge you to take a look for yourself at UK Resilience, the UK Government agency and website for Disaster and Emergency Management - the UK equivalent of FEMA (U.S. Federal Emergency Management Agency). Governments and militaries around the world are stocking up on freeze-dried food.  Should you?  Do they know something their civilian populations don't? 

Economic Instability & Collapse  

The word “collapse” may strike some as being alarmist, extreme, or exaggerated – however, looking at history it is an accurate term, and ultimately, an eventual and inevitable outcome of any large, super-structure economy / civilization / empire. 

Many people assume that “superpowers” are just “too big to fail / collapse”, but Collapse is what happened to Egypt, to Greece, to Rome. In more recent times, Collapse is what happened worldwide from 1929-45 (starting on Wall Street with the collapse of the banks and the stock market, and resulting in WW II), and in even more recent times, Collapse is what happened to Russia (superpower), to Japan, to Argentina, and to Zimbabwe. History has shown that all superpowers eventually do (and will) collapse, when the cost of growth (debt, wars, empire expansion) exceeds the ability to pay for it.

Collapse of the world economy is happening now, but it has a much more palatable name, the “Credit Crunch”. This process was the result of banks and countries lending and borrowing sums of “money” (debt) in volumes and at rates that were unsustainable and could not realistically be maintained, “serviced” or paid back.  This debt was then chopped up, re-packaged and re-sold many times over, under various exotic names, collectively known as “derivatives”.  During the process, the main stock indices (in mostly western, “industrialized” countries in North America, Europe and Asia) became filled with banks, venture capital firms, holding companies, and insurance giants, who manufactured no real goods or services, but merely sold and re-sold re-packaged debt.  Lottery-jackpot sized bonuses were paid to bankers and executives in the short term as rewards for selling vast quantities of these confusing debt products to people who had no hope of repaying the ‘money’.  Many ‘clever’ people (the so-called ‘Masters of the Universe’) flocked to Wall Street and the City to become Bankers or Brokers (instead of doctors, engineers or scientists), lured by the mind-boggling sums of money to be earned.

The ‘money’ to make the whole process (economy) flow was lent to these companies / countries by emerging industrialized nations such as China, India & Brazil, who actually made things to import to these western economies, and lent them the money at cheap interest rates in order that they might buy their imported products - of course all on “credit” – more loaned ‘money’. 

At a higher level, this money was loaned to the western economies through the central banks, i.e. - The Federal Reserve Bank and Bank of England - by means of Treasury Bills and other mid-to-long-term debt instruments.  This loaned 'money' was then re-loaned to the Big Banks and Investment banks such as Lehman Bros (gone), Morgan Stanley (gone), RBS (nationalized), etc.  So in fact, the “wealth” of these western economies / banks was actually debt owed to countries like China and India. 

Deregulation of the banking industry led to a free-for-all, orgiastic period of economic activity and ‘growth’ (accumulation of debt), that lasted about thirty years (1977-2007).  The Glass-Steagall Act of 1933, signed into law by Franklin D. Roosevelt, which separated investment banks from merchant banks in response to the 1929 banking crash, was repealed in 1999.

When it got to the point that banks were reluctant to lend to each other because they understood the real assets and securities of these banks were unsound, and that no one institution wanted to be left holding the ‘hot potato’, (that is, unpayable debt) – these banks were unable to ‘service’ their debt commitments and collapsed.  This unwillingness for banks to lend to each other, thus ‘freezing up’ the worldwide flow of ‘money’ (liquidity) became known as “the Credit Crunch”.

Many of the unsound banks deemed “too big to fail” (that is, that their collapse would trigger a wider, global economic collapse in a domino or house-of-cards effect) received billions of money units from central banks in exchange for shared equity (nationalization), funded by borrowing against future tax revenues, thus increasing debt/deficits for nations, citizens and taxpayers for generations to come - further destabilizing economies and leaving them even more vulnerable to total economic collapse.

The bailouts to the big banks and institutions (AIG, Fannie Mae, Freddie Mac, GM) were largely undisclosed for reasons of “national security”, but were intended to encourage banks to start lending to each other again, therefore thawing ‘frozen’ money flow, increasing liquidity, and easing the ‘Credit Crunch’. 

However, rather than using the bailout money to increase lending, the receiving banks used the ‘money’ to purchase the collapsed banks, acquiring assets that had any value at all for pennies on the dollar, whilst passing on ‘toxic’ debt (i.e., that debt that had no hard asset value at all, and no hope of ever being repaid) to the government in the form of nationalized equity share - that is, dumping it on the taxpayer and future generations, who are born into debt that can never easily be repaid.

Inflation / Hyper-inflation

In addition to ‘bailing out’ the banks, governments have tried to ease the ‘Credit Crunch” by injecting massive amounts of “Capital” (money / debt) into economies, therefore in theory increasing liquidity.  The new term for this economic technique is called “Quantitative Easing”, but the old name for it is “printing money”.  When more ‘money’ is instantly added to an economy in a “fiat” (paper-based) system - that is, money that is not backed by real assets such as gold or property - each piece of paper in the system is worth less. It’s value, or purchasing power has been diluted.  This phenomenon is known to economists as “inflation”, and it further destabilizes economies. 

As inflation (caused by artificial growth of money supply) increases, value or purchasing power of the currency decreases.  It is worth less.  It will buy fewer goods.  “Hyper-inflation” occurs when inflation grows so quickly and unbalanced against the real value of hard goods (i.e. food, clothing, property, gold), that people and countries lose ‘faith” or ‘confidence’ in the particular unit of currency (dollar, pound, etc.) and it collapses, leaving it worth only what it actually is – paper with ink on it.  This is why you see pictures from the Weimar Republic of Germany (1930’s, succeeded by the Third Reich), Russia (1990’s) Argentina (1999-2002) and Zimbabwe (now) of people carrying wheelbarrows full of paper currency to the market to purchase a loaf of bread. 

When you see these pictures, you may also notice that there is a long line of people in a queue waiting to buy goods, and there are few or no goods on the shelves in the store.  This is because when the economy collapses, companies no longer have money or can get loans to: purchase or manufacture parts or ingredients, or transport / distribute them.  The whole system stalls, and people quickly resort to bartering, theft, or piracy.

So – unsound or unsustainable economic practices can and do lead to economic collapse – that is, the worthlessness of paper money and unavailability of credit.  But hard goods remain exactly what they are – food is food, water is water, toilet paper is toilet paper – etc.  In fact, in times of scarcity or collapse, hard goods (and skills and real services) become more than what they are – they also become currency.

Credit Failure

The ability of companies of any size to borrow money on a short-term basis is vital to keep goods and supplies manufactured, stored, and distributed.  For example, food is largely grown on huge industrialized farms.  To do this, money must be borrowed to pay for the seed stock and fertilizer for the crop(s). 

To make food grow as quickly and in the size and quantities produced today, it is heavily fed with nitrogen-rich fertilizers derived from oil and natural gas. This is why oil prices have a major effect on food prices (and in fact, everything).  If the farmer can get the loan for the seed and fertilizer, and if the weather is favorable, he can grow a good crop and sell it to the manufacturer for processing and/or packaging.  The trucking company needs loans to lease or pay for the lorries and fuel that deliver the food.  The manufacturer needs loans to pay for the equipment and people to process and package the food (shell the beans, can them, etc.).  The manufacturer then can sell the food to the supplier (usually one of the big four supermarket chains), who in turn also need loans to finance the logistics of distribution.  Many manufacturers (in every sector) and logistics / shipping companies have gone out of business in the last year due to the shortage of credit/finance, and the increasing costs of oil.

But surely these big companies are big enough to get credit/loans?  Surely they are “good for it”?  In the last year we have seen major household names in banks, high street shops, and manufacturers (RBS, Woolworth’s, GM) disappear or cease to exist in their former entity/capacity, due to the worldwide lack of finance.

If you can’t get the loan, you can’t grow the crops, and you can’t get them to market.  The end result will be short-term shortages and inflation, and long-term scarcity and hyperinflation.

Crop Failure

Crops can fail to be produced due to lack of finance, as well as lack of raw materials (fertilizer – directly related to the price of oil and susceptible to sudden price spikes, as discussed above).  But crops can also fail due to drought (as is happening across Africa, Spain, North America) as well as sudden unforeseen events/disasters, such as the flooding that occurred in 2008 in the Midwest breadbasket of North America (which reduced crop yields by 40% in the year), in China, and right here in England. 

The increasing unpredictability of the weather, combined with the effects of soil erosion, and the practice of mono-cropping (growing huge swaths for miles of a single crop, such as corn or soy or wheat) makes crops ever more vulnerable and susceptible to rogue pests & diseases, which can wipe out a crop almost overnight.  World food stores (the amount of food / grain that governments and companies keep stored in reserve) are at an all-time low.

Logistical Failure

As discussed above, if you cannot get a loan for the lease of your lorries, storage warehouses, payroll, or diesel expenses, you cannot transport goods and services.  The trucks stop rolling.  Logistics companies are at the mercy of available finance as well as the price of oil, by far their number one expense.  A sudden spike in the oil price, or a sustained price increase, can put a logistics company out of business overnight. 

This is why we saw fuel protests and blockades at refineries by lorry drivers in 2000 (which caused supermarket and petrol station shortages), as well as last summer in 2008.  It is also why we are increasingly seeing airlines going out of business, or worried about it (British Airways). 

These industries are completely and literally tooled and engineered to operate on the availability of cheap oil, that is, less than $30 a barrel for crude.  The supermarkets know this, of course.  Take a look at where your big Sainsburys, Tescos and Morrisons are located, particularly in cities.  More often than not, and wherever possible, they back onto the canal waterways system.

If any of the above factors take effect (and in reality they all are, all at the same time), the result will be steadily increasing prices for food, oil, and all real goods.  As prices increase, supplies will dwindle, as it will not be economical to hold / store large quantities, and those that have money will stock up where they can.

Collapse of the World Reserve Currency (the U.S. Dollar)

The U.S. Dollar (USD) is at greater risk of collapsing and no longer being the world reserve currency than at any other time in it’s history.  It could literally happen any day now.  The Dollar became the world reserve currency (the preferred currency for international trade against which rates and tariffs are set) after World War II, when the U.S had more money, savings, raw materials, oil, food and manufactured goods to export than any other country.  They won the war, and they could call the shots.  However, over time, and especially over the last thirty years, the situation has reversed dramatically.  The U.S is currently the greatest net exporter of only one commodity – debt.  The ‘growth boom’ of the last 20 years has largely been financed by money loaned to the U.S. by China and India, in the form of Treasury Bills and U.S. Bonds issued by the Federal Reserve Bank, a privately held institution that then loans ‘money’ to the U.S. in the form of I.O.U’s or promissory notes – the U.S. Dollar.  This borrowed money is then loaned again to banks, who in turn loan it to consumers, in the form of credit cards or loans, with which they can buy goods, usually manufactured and imported from Asia (China, India, etc.).  This borrowed money is also used by U.S. companies and consumers to purchase oil from countries like Saudi Arabia, Russia, Mexico and Venezuela. 

As ‘quantitative easing’ and inflation take hold, these countries (China most of all, who hold by far the largest amount of U.S. debt in the form of Treasury Bills) become increasingly anxious as to whether they will ever be paid back their money.  They are looking for ways to offload this debt for raw materials or other resources – such as arable land in Africa – but again, every potential seller in the world market becomes increasingly nervous about being left holding the ‘hot potato’. 

If China decided to cash in it’s vast reserve of U.S. Treasury bills, or even a significant amount of them, it would collapse the U.S. Dollar (and economy) instantly.  But this of course could collapse their own economy, for it has been the West who were the buyers of their exports.  And what would they cash it in for?  More dollars?  Oil?  America doesn’t have it.  Gold?  Treasury Bills are not backed by gold, and few if any international buyers would make that trade in any kind of meaningful volume.

For this reason we have seen countries like Russia, China, the Arab states, Europe, and even President Obama engaging in discussions and debate about a new world currency – possibly based on oil, possibly gold, maybe something else.   But if and when the dollar does collapse, it will certainly wreak havoc on world markets, trade and supply chains for an uncertain period of transition.

“Yes, but what does it really mean, and what can I do?  I’m just an ordinary person in the wake of these huge societal forces over which I have no control.”

What it means is this.  If any of the above factors take effect (and in reality they all are, all at the same time), the result will be steadily increasing prices for food, oil, and all real goods.  As prices increase, supplies will dwindle, as it will not be economical to hold / store large quantities, and those that have money will stock up where they can.

If finance/credit to small, medium, large and huge businesses becomes increasingly unavailable; and if inflation continues to rise steadily, there will be increased scarcity of all goods (i.e. food). They will cost a lot more, money will be worth a lot less, and ultimately the whole current system could collapse – not just theoretically "sometime, somewhere" – but anytime from now or within the next few years right here in western civilization and in this country.

“This is all really depressing.  What can I do?”

Once you understand the macro-factors of how today’s global systems work, it can be very depressing indeed.  But after the initial shock, you can cheer yourself with the fact that at least you understand it more now, and are waking up.  Most people will be caught very much by surprise when goods and services we take for granted now (which are very vulnerable to all of the factors above) start to be interrupted or in short supply for at least some periods.  Most people are either too busy with their jobs, their kids, paying their bills, and/or watching TV.  'Reality' TV / X-Factor can really distract your attention away from bank and crop failures – and let’s face it, who wants to focus on negative, scary stuff all the time? 

The main thing you can do to ease your mind, and more importantly, to protect yourself and your loved ones, is to take some real, practical action towards preparing yourself and your family for emergencies caused by failure of modern systems.  You will feel better about yourself - more prepared, more self-reliant and less dependent on or at the mercy of larger systems / events / emergencies.

Start Now.

It is easy to be overwhelmed by the enormity and uncertainty of what could go wrong, when it might happen, and what it will cost.  Our most important piece of advice is to start thinking about it - now.  Think over situations, and think about small, practical, definite actions that you can take to make you and your family more secure and better prepared to ride out a situation.

Store Food.

"Okay, But Why Freeze-Dried Food?"

Freeze-Dried food is the perfect food to store economically and efficiently, for a very long time.  Freeze-Dried food retains up to 97% of it’s original nutritional value (as opposed to 30-40% for tinned foods) and if stored properly, can last for up to 30 years +, because the oxygen (which makes food spoil) has been removed in the packing process.  It is lightweight and compact, because the water content has been removed.  Contrary to pre-conceived notions, it is also quite tasty! 

Freeze-dried meals are prepared and cooked first, and then freeze-dried and vacuum packed.  So, for example, lasagna is made, then it is freeze-dried, and then vacuum packed.  So when re-hydrated by adding hot (or cold) water, it still tastes just like lasagna, because that’s what it is – not manufactured powder that tastes like lasagna! 

You have most likely eaten and enjoyed freeze-dried food many, many times – in pubs, curry houses, and fine restaurants – but just not known it was freeze-dried!  And of course, any time you make a cup of instant coffee, or make custard or other toppings, you are using freeze-dried food.

Now, we’re not saying that the supermarkets will run out of food tomorrow and forever more and that’s the end of food, so stock up.  But in a real emergency (pandemic, flood, oil shortages or blockades, power outages, etc.) the stores will be empty in hours.  Most supermarkets, even the giant ones, keep no more than 24-48 hours worth of supply in their stores.  They might run out for a few days, or a week or more at a time.  

After just a few days, many, many people will have no readily available food until there is more in the stores. And of course the stores will get more food in, but when?  And when they do, people will be queued up to get it.

Why put yourself and your family in that kind of situation, and under that kind of stress?  Why not start by having, say, a week’s supply of food stored (3 meals a day) for every person in the house.  A few boxes tucked away in the airing cupboard, or back of the wardrobe, or under the bed?  Why not make a commitment to yourself to keep adding to that supply each month until there is a month’s supply for each person, and then 3 months?  Knowing what you know now, reading or seeing the news differently now (as you will), won’t you feel calmer and more empowered, knowing that you have taken practical action to prepare, secure and protect your personal situation?

Maybe you have a large house, with a large storage freezer full of frozen food, enough to last for weeks.  But in the case of a sustained power cut of a few days or more, the food will be ruined (unless you have a back-up generator, which we recommend, and keep it running constantly, which we don’t).  One of our best friends lives in a flat in Manhattan, New York.  In 2003, there was a power cut that took out the whole eastern seaboard of the United States.  Our friend was without electricity in his flat in NYC for five days.  On the third day he couldn’t get water from his taps (municipal water pumps run on electricity).  On the sixth day the power came back on.  Can’t happen / won’t happen?  That was Manhattan, NYC, USA, 2003.

What will happen to food prices if inflation continues to rise or hyperinflation kicks in?  Take a look at your food receipts / expenses from last summer, and look at them now.  Up 30% across the board.  Up 45% across two years (2007).  If nothing else, storing food is an investment in security and a hedge against inflation.  £1000 of food in 2007 now costs £1,450.  What will it cost next year, especially if the situations discussed above occur?  £2,000?  £3,000? What if you or your partner (or both) unexpectedly loses your job?  Hopefully, you will find another within a few months.  But wouldn’t it be good to know that you didn’t have to worry about buying ALL your food right then, at whatever prices food will be then?

Grow Food!

We also recommend to everyone, if you are not already doing it, to start growing food right now, as an act of personal empowerment.  If you don’t know how to do it, don’t worry – just go down to the local 99p shop or garden centre or any store and get some carrot seeds and compost, read the instructions, and put them in a pot on the windowsill.  If you have children, do it with them – they will love seeing the green shoots pop up and get bigger, and checking them everyday.  Buy a vegetable growing book or borrow one from a friend, and read it.  If you have a garden where you can put in a vegetable patch – do so.  If not, try a grow bag or potato bag on your porch or balcony.  Sign up for an allotment, even if they say the waiting list is 40 years!  If a friend or neighbour has an allotment, or garden patch, offer to help them.  Find a local part-time college course in the evenings or during the day if you have the time.  Take an interest in growing food and start learning how to do it, how to store / can / preserve it, and how to save seeds.  If you take an interest in growing food and talk to people who do, you will find no shortage of people eager to help you along.  Teach your children how to do it. 

Growing your own food is and will be a very important skill to know, and is one of the most empowering and satisfying activities there is. It's a great way to keep fit, and know exactly what is in your fruit and veg.  That old cliché, (like so many) is true.  Health is Wealth.  We will be updating this site with a whole section on food growing skills, helpful tips and products, so check back regularly and we’ll try our very best to provide really useful content!

Start Now

It's all a lot to think about, but the main point is to start making a plan consisting of small, incremental and achievable actions to take towards better preparedness for the changes that lie ahead – and think about your life within that frame of mind.  You will feel better, more confident, more aware, and can enjoy the present more – knowing that you are doing the right thing.

Here at B-Prep, we are working daily to secure the largest, most diverse, and most reliable supply of freeze dried food and emergency supplies that we can from suppliers around the world, to make available to you at the very lowest prices and most flexible purchasing plans in the UK.  

Call us on 0845 056 5452 or e-mail us now at sales@b-prep.co.uk to work with us on a custom plan that meets the needs of your own very specific situation.  You may be visiting us because you are already aware enough to have a good idea of what's going on.  Check back to our site regularly for updates, tips, links and important information to help you prepare for what is really important in life.

Thanks for reading, and come back soon.

Sincerely,  Dave