Japan is Crumbling #CDS #collapse #global #economy #IMF contributes #transition #peakoil

Watch the CDS and IMF, bank bailouts, protests, and austerity measures while security related stocks soar.

Clipped from www.bloomberg.com

Japan’s Credit Outlook Lowered to Negative at Fitch Amid Rising Debt Level

Japan faces the rising risk of a reduction in its sovereign-debt rating as Prime Minister Naoto Kan struggles to assemble the political support needed to craft a plan for paring the world’s largest public debt burden.

“It’s an alarm bell for Japan to demonstrate political leadership to take an action to ensure the credibility of the nation’s debt,” said Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo. “Concerns over Japan’s fiscal conditions will become an issue again in the bond market in coming months, which could make it more likely for bond yields to rise.”

The central bank is poised to keep its monetary stimulus, contrasting with counterparts from China to India that are tightening policy to stem inflation. Prices climbed in Japan after global energy and food costs rose and retailers suffered product shortages in the aftermath of the natural disaster. Read more at www.bloomberg.com

 

#peakoil constraints rearing its head @collapsenet

Clipped from www.chicagotribune.com

Demand, not speculation, cited for rising oil prices

High oil prices are here to stay, and they're caused by surging demand and limited new supply, not Wall Street speculators.

That's the message from Fatih Birol, chief economist at the International Energy Agency.

Birol said growth in worldwide oil demand is outstripping growth in new supplies by 1 million barrels a day per year.

Much of that new demand is coming from China, which is adding 800,000 vehicles to its roads each year, he said, and is responsible for fully half of the world's demand growth. Birol noted the growth in China's oil consumption is equal to all of the new output expected from Iraq over the next few years. Read more at www.chicagotribune.com