[TheForge] Ghost Steel

[terry l. ridder]

hello Rob;

the World Economy is actually really simple.

World Wide Depression is just around the corner.
Unemployment skyrockets to 25 to possible 45 percent.
The Middle East or Africa becomes "unhinged" some rogue government or
terror organization hauls out their dirty nuclear weapons. 
World War III starts.
The Unemployed Youth are all "drafted" for use as cannon fodder.
The Unemployed Middle Age are put to work for the "War Effort".
The Unemployed Female Youth are "drafted" and put to work as "Land
Girls", just like in WWII.
After WWIII, massive urban reconstruction and/or massive migration of
people from the former urban areas which now glow in the dark to lesser
glow in the dark areas.

Figure that if the World's Governments do it right they can reduce the
World's Population by 50%, obtain full employment, and rebuild the
infrastructor that needed to be rebuilt anyway. The Elderly will die off
from the rigors of war, so the strain on the Universal Health Care
Systems will decrease. The disabled/handicapped will be stuffled off to
some "health camps" and never seen again. The large segment of the
unemployed youth are either dead or wishing they were dead and will die
soon enough from radiation poisoning or via "mercy killings".

If the World's Governments do it WRONG! everyone is toast and the rats
and cockaroaches inherit the earth.

Lather, Rinse, Repeat.


On Tue, 18 Sep 2012, Rob Fertner wrote:

> This article about phony inventories of steel in China is going to shake up
> the industry and the World economy.
> Here's an excerpt:
>
> "China's demand has faltered with the slowing economy, pushing steel prices
> to a three-year low and making it tough for mills and traders to keep up
> with payments on the $400 billion of debt they racked up during years of
> double-digit growth.
> As defaults have risen in the world's largest steel consumer, lenders have
> found that warehouse receipts for metal pledged as collateral do not always
> lead them to stacks of stored metal. Chinese authorities are investigating a
> number of cases in which steel documented in receipts was either not there,
> belonged to another company or had been pledged as collateral to multiple
> lenders, industry sources said.
> Ghost inventories are exacerbating the wider ailments of the sector in
> China, which produces around 45 percent of the world's steel and has over
> 200 million metric tons (220.5 million tons) of excess production capacity.
> Steel is another drag on a financial system struggling with bad loans from
> the property sector and local governments.
> "What we have seen so far is just the tip of the iceberg," said a trader
> from a steel firm in Shanghai who declined to be identified as he was not
> authorized to speak to the media. "The situation will get worse as poor
> demand, slumping prices and tight credit from banks create a domino effect
> on the industry."
>
> Go to:
> http://www.zerohedge.com/news/how-chinas-rehypothecated-ghost-steel-just-vap
> orized-and-what-means-world-economy
>

-- 
terry l. ridder ><>