1. THE TERMINAL DECLINE OF OIL
Oil War
The advocates of war insist it's not about oil. But global
oil production is on the brink of terminal decline and when the West
begins to run short of supplies - Iraq could be a lifeline.
FROM: BBC, 26 Mar
The New Great Game
War on Iraq is about a lot more than boosting oil
companies� profits. It�s the latest battle in the ongoing war over who
gets to control the earth�s remaining energy reserves.
FROM: The Ecologist
Pain Just Starting as High Fuel Prices Work
Their Way Through Economy
A few pennies a gallon here, a few dollars a barrel there,
and pretty soon a million jobs are hanging in the balance. If there's no
relief from high prices, Americans could find work harder to come by
because the economy will grow more slowly, and a double-dip recession
won't be out of the question.
FROM: Los Angeles Times, 26 Mar
US may face higher gas prices whatever the
outcome in Iraq
Political violence in Nigeria has cut production of
high-grade crude oil used for gasoline in the United States by 40
percent� Venezuela's state-owned petroleum industry, which still hasn't
fully recovered from the civil strife begun in December, is in such poor
condition that some analysts warn it may see a drop in output� gasoline
stocks are declining when suppliers should be reloading ahead of the peak
summer driving season� disquiet among oil workers could lead to a strike
in Colombia.
FROM: Boston Globe, 27 Mar
Ethnic Dispute Stills Nigeria's Mighty Oil
Wells
All told, the uprising by a well-armed ethnic militia
seeking to wrest power from the local government has stanched the flow of
800,000 barrels of crude oil a day, or 40 percent of this country's daily
yield. With stocks of crude oil and gasoline in the United States at
their lowest in years, the shutdown could hardly come at a worse moment
for Washington, which has increasingly turned to West Africa to diversify
its oil supply beyond the Persian Gulf.
FROM: New York Times, 29 Mar
Gasoline Prices Expected to Rise
Sharply
Gasoline markets are approaching a critical juncture as
inventories hover at dangerously low levels just as refiners complete a
delicate transition to summer-driving blends -- possibly signaling more
pain for motorists in coming months, Friday's Wall Street Journal
reported. FROM: Dow Jones, 28 Mar
2. ECONOMIC QUAGMIRE & THE DECLINE OF AMERICAN EMPIRE
Bush fiddles with economy while Baghdad
burns
Could a faltering dollar and global rebellion against its
values presage the decline, and eventual fall, of the American empire? --
It takes a brave soul to argue that America, the world's largest economy
and by far its most potent military power, is about to go into decline,
when it is widely perceived as a hyperpower. But Independent Strategy, a
financial research company for institutional investors, has made the case
in a paper that is making the rounds of big investment banks such as
Goldman Sachs.
FROM: The Guardian, 26 Mar
Economy�s woes may go deeper than Iraq
"Independent of the war, the economy here in America
and economies around the world are really quite weak at the moment. It is
simply a misreading to conclude that a quick, successful prosecution of
this war (means) we're off to the races again," says Donald
Straszheim of Straszheim Global Advisors.
FROM: USA Today, 26 Mar
Economic quagmire
Investors probably won't like what they see when they spy
the first monthly data for March. The economy, which slumped in February,
apparently weakened further in March.
FROM: CBS MarketWatch, 28 Mar
Slogging toward recession?
Worries that the war could last months, not weeks, lead to
double-dip fears.
FROM: CNN Money, 27 Mar
Some worry about return to recession
The economy that turned sluggish at the end of last year
isn't doing much better now--and may well be doing worse--as war
uncertainties and the stagnant job market make consumers and businesses
more cautious. Some analysts worry about a slide back into recession.
FROM: Chicago Sun-Times, 28 Mar
IMF issues warning about a long war
Data highlighted a mood of caution at corporations in
major economies as the IMF warned that the world could sink into
recession if the war in Iraq drags on.
FROM: Taipei Times, 28 Mar
World Bank sees US recession risk
The World Bank has downgraded its outlook for global
growth for this year and sees the risk of recession and deflation in the
United States, according to a bank report obtained by Reuters on
Thursday.
FROM: CNN Money, 27 Mar
3. SAY BYE-BYE TO ECONOMIC RECOVERY
Vet�s Future After the War Looking Grim
Amid a sea of camouflage, George W. Bush told the soldiers
of the special place they occupied in the heart of every American. Of
course, W didn't say a word about the budget he recently sent up to
Capitol Hill - the one with $844 million gutted out of the Veterans
Administration.
FROM: Information Clearing House, 27 Mar
Credit Card Delinquencies at a New High
Mounting U.S. job losses pushed up credit card
delinquencies in the fourth quarter of 2002 to the highest level since
the American Bankers Association began tracking the data in 1990, the
group said on Wednesday.
FROM: Reuters, 27 Mar
Home Equity Borrowing Rises to Worrisome
Levels
Americans are borrowing against their homes at
unprecedented levels, leading some bankruptcy lawyers and consumer
advocates to warn that many people could wind up losing their houses.
FROM: New York Times, 26 Mar
4th Quarter Home Foreclosures Set
Record
U.S. home loans in foreclosure in the fourth quarter of
2002 hit a record high as the weak economy forced a larger portion of
mortgage holders out of their homes, a mortgage trade group said on
Monday.
FROM: Reuters, 24 Mar
War saps consumer confidence
Fears mounted last night that war in Iraq will bring
global economic recovery skidding to a halt, after surveys showed
consumers on both sides of the Atlantic more pessimistic than at any time
since the mid-90s.
FROM: The Guardian, 29 Mar
Some kiss the stock market goodbye
There is plenty of evidence that a growing number of
individuals are shunning stocks. For example, equity mutual funds saw
more money flow out than in during 2002, the first time that has happened
in a calendar year since 1988.
FROM: Chicago Tribune, 25 Mar
AS THE ECONOMY CRUMBLES is compiled by Visualize Economic
Collapse
Editor: Dean Thomas
Feedback / suggestions to: Economic
Collapse
Previous issues are available at: Infoshop
News
