Brent crude closed today at 115.87 approaching that magic $120.00 a barrel that the Wall Street bankers have predicted will be the collapse point of the world economy. Will that really happen? Well not in the real world, at least not right away but there is the possibility that a few hundred trillion in derivatives could be triggered since this was established by their public pronouncements as the point of no return.
Unfortunately we learned in 2008 that what happens in the paper world does translate into pain on main street. Funny how politicians and pundits still refer to “main street” as something real as if thirty years of Reaganomics hadn’t completely done away with “main street”. Try to find a town that actually has anything you could call “main street”, it’s just that boarded up section of town you have to drive through to get to Wall Mart.
The USD keeps flirting with all time highs against the Euro, if you can’t keep that straight, “high” sounds good but it’s not. It makes stuff we buy more expensive and in theory it means we can sell stuff to them at lower prices which would be good for jobs here but we don’t make anything. The majority of US nonfood exports to Europe are “pass through” goods from other countries that don’t have free trade agreements with the Eurozone.
You can buy more Yen with a USD than you used to be able to, it’s not clear how that’s going to work out but it makes the radioactive imports cheaper. The Governor of Prefecture that includes Tokyo has lifted the ban on babies drinking the local tap water. Magically the radioactivity is all gone. The Governor even drank a glass on TV, it must have been real tap water as he couldn’t completely mask the fear in his eyes or maybe it was just shame.
Three Japanese workers laying power lines have been hospitalized with radiation burns to their feet and legs after walking through water draining from the reactor site. This is every bit as bad as it sounds and then some.
After weeks of pumping sea water into the reactors another problem is looming, besides the contaminated water that leaks away, millions of gallons are boiled into steam leaving tons of salt behind. This salt is coating the fuel rods and filling in the gaps where the water should flow. At some point the temperature will start to rise and another meltdown crisis will take place and this time pumping more water won’t help.
The company that owns the reactors say the radiation levels are down but they don’t give out any useful information like the temperature of the water in the storage pools. They didn’t tell the electricians laying cable any useful information either. www.prairie2.com