Property
A Slowdown In US Lending Or A Ramp Up In Shadow Banking?
April 30, 2013 12:26 PM We’ve received a number of emails pointing to what looks like a slowdown in lending by US-chartered banks. The amount of loans and leases on balance sheets of US banks has stopped growing. As in 2009 and 2011, some people are upset to see record levels of bank excess reserves that are not being turned into loans. These are deposits at the Fed earning 25bp and people are asking why banks are not lending more of this capital out. But what exactly caused the loan growth on banks’ balance sheets to stall? More precisely, what types of loan balances are no longer growing? It turns out that while commercial and industrial loans continue to grow – in fact accelerating – the growth in retail mortgage balances has stalled. And that’s the explanation for the flat-lining of the overall loan balances (the first chart above). Fixed maturity mortgages on US banks’ balance sheets (source: FRB; not seasonally adjusted) “Aha”, some economists would say. Banks are not extending as much credit in the mortgage space as they should, which is slowing down the economy. Those evil zombie banks… The real answer however has to do with the wonderful world of “shadow banking”. Why would banks want to keep all these mortgages on their books when they can blow them out to Freddie and Fannie, who in turn sell them to the market in the form of agency MBS (mortgage backed securities). And who are the buyers? The usual suspects of course – insurance firms, mutual funds, etc., and of course the biggest buyer of them all – the Fed. In fact the holdings of MBS on Fed’s balance sheet just hit a record. Mortgages are simply making their way from banks’ balance sheets onto the Fed’s balance sheet in the form of MBS. Source: FRB The data from Freddie and Fannie confirms this trend, with the first quarter of this year showing the largest MBS issuance volume in two years. As much as people don’t like to think about it this way, Freddie and Fannie are the biggest “shadow banks” around. The last time we had a spike in MBS issuance in early 2011, mortgage balances at banks declined, as banks did some “spring cleaning”. But what about loans that are not Freddie and Fannie eligible? Those should still be sitting on banks’ balance sheets, right? Not exactly. The private side of shadow banking is now kicking into gear, particularly in the so-called jumbo loans (mortgages too large to qualify for the GSEs). Inside Mortgage Finance: – The private-label market is “showing new signs of life,” according to Standard & Poor’s, which predicted that banks are likely to increase their securitization of jumbo mortgages. In a report released late last week, S&P projected $14 billion in non-agency jumbo MBS in 2013. Redwood alone set a goal of issuing $7 billion in non-agency MBS this year and is on pace to exceed that volume, helped by a pending $425 million deal, its sixth of the year. PennyMac Mortgage Investment Trust is also aiming to issue a non-agency jumbo MBS in the Redwood mold in the third quarter of 2013. The demand for fixed income product has manifested itself in the so-called “private-label” MBS, allowing banks to securitize mortgages that don’t qualify for Freddie and Fannie. Once again, it’s not about lending less – which is how some economists are reading the first chart above. It’s about originating product, collecting fees, and then selling into the hot securitization market – public or private. And taking those loans off the balance sheet creates room to do it all over again (the “recycling” of capital.) As one banker put it, “I want to be in the origination and fee business, not in long-term warehousing …” Continue reading
How One Tweet Almost Broke US Financial Markets
Friday April 26, 2013, 5:54 am Photo Credit: Luis Louro/Shutterstock How One Tweet Almost Broke US Financial Markets When a phony Associated Press tweet reported explosions in the White House, Wall Street’s computers reacted as if it were real. In the January/February issue of Mother Jones, I wrote about Wall Street’s embrace of high-speed computer programs that execute thousands of trades per second. These algorithms, some of which can teach themselves and operate almost entirely without human interference, present a new and challenging danger to the stability of global financial markets because they work in timeframes that people can’t begin to perceive. By the time an actual person realizes something is wrong, it might already be too late to fix the problem. The concern isn’t that one firm’s high-speed trading program will make a mistake, but rather that a bunch of them will make the same mistake at once, launching a chain reaction that could undermine the financial system. On Tuesday, the world saw exactly how fast these sorts of programs can respond to bad news. Many high-speed trading algorithms are designed to read headlines and trade based on that information before human traders can react. So when the Associated Press Twitter account tweeted at 1:07 p.m. Eastern time on Tuesday that two explosions were reported in the White House and President Barack Obama was injured, the market fell immediately. Here’s an image of the tweet in question: (See VISIT SITE for screen shot of tweet) The S&P 500 fell nearly 1 percent, wiping out more than $130 billion in shareholder value in minutes. As the market plunged, quotes—offers to buy or sell—surged. But the vast majority of those offers were withdrawn before anyone could trade on them. Liquidity—a term that refers to the ease with which traders can buy or sell a financial product—dried up, suggesting that today’s highly liquid markets are in fact very fragile. Liquidity in the S&P 500 E-Mini, the most important stock futures contract, has “never dropped that quickly and that far that fast—ever,” says Eric Hunsader, who runs NANEX, a firm that provides software and services to high-speed traders. “The faster that we let trading go, the faster liquidity will disappear,” he adds. For ordinary traders, the sheer speed with which high-speed traders pulled out of the market in the wake of the phony AP tweet suggests that “the investor is a spectator not a participant.” He continues, “There is no way [the average investor is] going to be able to get in and take advantage of something like this. The prices you see on CNBC might as well be a newspaper at the end of the day.” Dave Lauer, a critic of high-frequency trading who used to write trading software, says he’s not sure it was a bad thing that the market fell so far so fast. “For all intents and purposes for a few minutes people thought a bomb went off at the White House,” he says. “I [understand] the complaint that [high-speed trading] provides liquidity in good times and it’s not there in times of stress, but I think this is kind of a red herring.” Within about five minutes—after it became clear that the AP tweet was fake, the Twitter account was suspended, AP journalists tweeted that the tweet was false, and a group of Syrian activists claimed responsibility—the market recovered its losses. But the incident suggests that someone with the ability to hack high-profile Twitter accounts could wreak havoc on US and world financial markets, and make a lot of money doing so. If you knew that a hacked tweet was about to panic the markets, you could short the market for that period of time, or buy low when stocks hit bottom, knowing they’d recover when the news proved to be false. In fact, the fake tweet made regulators suspicious that something like that might have happened: The Commodity Futures Trading Commission is investigating trading in 28 futures contracts during the tweet crash to make sure everything was above-board and no one had inside information. The Federal Bureau of Investigation and the Securities and Exchange Commission are also probing the incident. Although Lauer doesn’t think the tweet crash points to problems with the markets themselves, he does worry that the SEC doesn’t have the tools necessary to quickly figure out what exactly happened. “This is something they should be on top of right away,” he says. “I don’t think they have that capacity right now.” (More on that here and in the magazine piece.(SEE VISIT SITE) If the AP tweet had been real, the markets may not have been able to handle the strain, Hunsader counters. “If that was a real news event, the market would have been off. It would have been flash crash two,” he says, referring to the May 2010 crash that caused around $1 trillion in shareholder value to evaporate in minutes before the market recovered. “It would have been right down, straight down. We would have been in serious trouble system-wide.” Minutes are like hours or even days in the world of high-speed trading, and in the five minutes of the tweet crash, NANEX’s computers tracked trades that had been delayed by four minutes because of unexpected market activity. If the tweet crash had gone on much longer, stub quotes—placeholder orders at outrageously low or high prices that firms never expect to execute—would have started being processed, just as they were during the flash crash, Hunsader says. “We need certain rules of the road for technology, and that’s particularly true with the advent of social media,” Bart Chilton, a CFTC commissioner, told CNBC Wednesday. Chilton, like many of the people quoted in my story, is concerned that high-speed trading firms aren’t required to have a “kill switch” they can flip if a trading program goes rogue—and there’s no such fail-safe at the market or regulatory level either. This sort of light-speed market crash has happened before. It will happen again. The only question is how bad the next one will be. ***** By: Nick Baumann | News Editor | Mother Jones magazine | Continue reading
Unburnable Carbon Bubbles
Apr 30, 2013 – 06:42 AM GMT By: Raul_I_Meijer A report came out in Britain 10 days ago that deserves more attention than it got. If only because it uses the great term “unburnable carbon”, great even before it’s defined. It makes me ponder the popular and somewhat crazy claims about shale and fracking leading to US energy independence, the holy grail du jour. It promises much vaunted freedom from outsiders, but what exactly does it consist of? Does it mean the ability to burn ever more carbon-based energy sources without having to buy them abroad? And does “abroad” include Canada, or do we think of this as an “energy Nafta”? Guys, if you would just waste a bit less of the stuff, you’d have been energy independent ages ago without having to inject tons of toxic concoctions into your land. What on earth are you thinking? “Unburnable carbon” also makes me think of Professor Kenneth Deffeyes, who stated that “Crude oil is much too valuable to be burned as a fuel” , in reference to the long list of products, some of which are very beneficial to us (think medicine), that are made with oil carbons. Deffeyes also said: “Thirty years from now, oil will be little used as a source of energy. Our grandchildren will say, ‘you burned it? All those beautiful molecules? You burned it?'” Will we ever understand this? Not very likely. We don’t even think about it. We just want to find more of the stuff and then burn it. Give any organism access to an energy surplus, and it will use it up as fast as possible. Man is no exception. But first, that report. Which claims that national and international climate targets risk leaving huge amounts of oil and gas stranded. The risk alone should be enough to inject so much uncertainty into the markets that they could plunge into a huge crisis. Damian Carrington for The Guardian: Carbon bubble will plunge the world into another financial crisis The world could be heading for a major economic crisis as stock markets inflate an investment bubble in fossil fuels to the tune of trillions of dollars, according to leading economists. “The financial crisis has shown what happens when risks accumulate unnoticed,” said Lord (Nicholas) Stern, a professor at the London School of Economics. He said the risk was “very big indeed” and that almost all investors and regulators were failing to address it. The so-called “carbon bubble” is the result of an over-valuation of oil, coal and gas reserves held by fossil fuel companies. According to a report published on Friday, at least two-thirds of these reserves will have to remain underground if the world is to meet existing internationally agreed targets to avoid the threshold for “dangerous” climate change. If the agreements hold, these reserves will be in effect unburnable and so worthless – leading to massive market losses . But the stock markets are betting on countries’ inaction on climate change. The stark report is by Stern and the thinktank Carbon Tracker. Their warning is supported by organisations including HSBC, Citi, Standard and Poor’s and the International Energy Agency. The Bank of England has also recognised that a collapse in the value of oil, gas and coal assets as nations tackle global warming is a potential systemic risk to the economy, with London being particularly at risk owing to its huge listings of coal. Stern said that far from reducing efforts to develop fossil fuels, the top 200 companies spent $674bn (£441bn) in 2012 to find and exploit even more new resources, a sum equivalent to 1% of global GDP, which could end up as “stranded” or valueless assets. Stern’s landmark 2006 report on the economic impact of climate change – commissioned by the then chancellor, Gordon Brown – concluded that spending 1% of GDP would pay for a transition to a clean and sustainable economy. The world’s governments have agreed to restrict the global temperature rise to 2C, beyond which the impacts become severe and unpredictable. But Stern said the investors clearly did not believe action to curb climate change was going to be taken. “They can’t believe that and also believe that the markets are sensibly valued now.”[..] Paul Spedding, an oil and gas analyst at HSBC, said: “The scale of ‘listed’ unburnable carbon revealed in this report is astonishing. This report makes it clear that ‘business as usual’ is not a viable option for the fossil fuel industry in the long term. [The market] is assuming it will get early warning, but my worry is that things often happen suddenly in the oil and gas sector.” HSBC warned that 40-60% of the market capitalisation of oil and gas companies [is] at risk from the carbon bubble , with the top 200 fossil fuel companies alone having a current value of $4 trillion, along with $1.5 trillion debt. [..] And it’s of course not just the US that is involved. All major energy producers (and consumers) are. Nor is it just oil and gas: coal could get hit hard. Damian Carrington had this on Australia over the weekend: Carbon bubble makes Australia’s coal industry ripe ‘for financial implosion’ Australia’s huge coal industry is a speculative bubble ripe for financial implosion if the world’s governments fulfil their agreement to act on climate change, according to a new report. The warning that much of the nation’s coal reserves will become worthless as the world hits carbon emission limits comes after banking giant Citi also warned Australian investors that fossil fuel companies could do little to avoid the future loss of value. Australia is already the globe’s biggest coal exporter and “mega-mine” plans in Queensland for more extraction are identified as the world’s second biggest “carbon bomb” threatening runaway global warming. “Investments in Australian coal rest on a speculative bubble of climate denial, indifference or dreaming,” said John Connor, one of the new report’s authors and CEO of The Climate Institute, an independent research organisation based in Sydney. “Investors, governments and even some coal companies say they take climate change seriously, but this report shows they do not or are taking risky gambles.” James Leaton, at thinktank Carbon Tracker and also another of the report’s authors, said: “Investors need to challenge the assumption that coal demand will continue to rise in China and elsewhere, otherwise billions of dollars of taxpayer, superannuation and shareholder funds will be wasted in assets linked to unburnable carbon.” Carbon Tracker’s recent global report found that at least two-thirds of existing fossil fuel reserves will have to remain underground if the world is to meet existing internationally agreed targets to avoid the threshold for “dangerous” climate change. The new report shows Australian coal reserves owned by listed companies alone are equivalent to 25% of the global carbon budget for the fuel to 2050. However, far from cutting back on exploration for new coal reserves, Australian listed companies spent AU$6 billion on developing new deposits. If only half of potential future reserves were exploited, Australian coal would use up 75% of the global carbon budget for the fuel. Still, you could argue that governments will try to find a way to ignore climate treaties. Once they start painting a picture of plunging economies and lifestyles for their people, the hope will be that the treaties can be watered down to facilitate business as usual. Given the strength and broad appeal of climate activism, that won’t be as easy as some might think. For the Canadian government and economy, climate issues may not be the biggest headache going forward. Ottawa faces a growing and steadily better organized resistance from Indigenous peoples. Who, if they resist being divided and bought off, can be a major pain in the government butt, not least of all because they still have many elders who remember being raised on notions of keeping the land fit to pass on to multiple generations. Large scale exploitation of carbon resources doesn’t seem to fit that bill. Martin Lukacs for the Guardian in December last year: Canada’s First Nations protest heralds a new alliance Canada’s placid winter surface has been broken by unprecedented protests by its aboriginal peoples. In just a few weeks, a small campaign launched against the Conservative government’s budget bill by four aboriginal women has expanded and transformed into a season of discontent: a cultural and political resurgence. It has seen rallies in dozens of cities, a disruption of legislature, blockades of major highways, drumming flash mobs in malls, a flurry of Twitter activity under the hashtag #IdleNoMore and a hunger strike by Chief Theresa Spence, in a tepee minutes from Ottawa’s parliament. Into her tenth day, Spence says she is “willing to die for her people” to get the prime minister, chiefs and Queen to discuss respect for historical treaties. [..] What remains unspeakable in mainstream politics in Canada was recently uttered, in a moment of rare candour, by former Prime Minister Paul Martin: 5] “We have never admitted to ourselves that we were, and still are, a colonial power.” [..] While Canada has the world’s largest supply of fresh water, more than 100 aboriginal communities have tapwater so foul they are under continual boil alert. Aboriginal peoples constitute 3% of Canada’s population; they make up 20% of its prisons’ inmates. In the far north, the rate of tuberculosis is a stunning 137 times that of the rest of the country. And the suicide rate capital of the world? A small reserve in Ontario, where a group of school-age girls once signed a pact to collectively take their lives. Such realities have not stopped politicians and pundits from prattling on about the sums supposedly lavished on aboriginal peoples. [..] Billions have indeed been spent – not on fixing housing, building schools or ending the country’s two-tiered child aid services, but on a legal war against aboriginal communities. Every year, the government pours more than $100 million into court battles to curtail aboriginal rights – and that figure alone went to defeating a single lawsuit launched by two Alberta First Nations trying to recover oil royalties essentially stolen by bureaucrats. The Canadian federal and provincial governments act on a “shoot first, talk later” basis. As in many other places in the world, government policy is based on bullying citizens into compliance with what are labeled “democratic policies”, which actually hugely benefit both the government and its corporate backers financially, but leave those citizens with mere scraps off the table. In Canada, the situation is far less simple than the government would like, because aboriginal – land – claims that have been ratified in various treaties, and on many occasions confirmed by its own Supreme Court, numerous times, can’t just be ignored without trampling both democracy itself and the rule of law. In a very cynical move, Ottawa spends $100 million per year in legal fees to fight these aboriginal claims in courts across the country. Cynical because one might argue that this stunning amount of money rightfully belongs to the aboriginal population in the first place: hence, their own money is being used to keep them poor. Lukacs again: Indigenous rights are the best defence against Canada’s resource rush In a boardroom in a soaring high-rise on Wall Street, Indigenous activist Arthur Manuel is sitting across from one of the most powerful financial agents in North America. It’s 2004, and Manuel is on a typical mission. Part of a line of distinguished Indigenous leaders from western Canada, Manuel is what you might call an economic hit-man for the right cause. A brilliant thinker trained in law, he has devoted himself to fighting Canada’s policies toward Indigenous peoples by assailing the government where it hurts most – in its pocketbook. Which is why he secured a meeting in New York with a top-ranking official at Standard & Poor’s, the influential credit agency that issues Canada’s top-notch AAA rating. That’s what assures investors that the country has its debts covered, that it is a safe and profitable place to do business. [color=#000000] [color=#000000] [color=#000000] [color=#000000] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif] This coveted credit rating is Manuel’s target. His line of attack is to try to lift the veil on Canada’s dirty business secret: that contrary to the myth that Indigenous peoples leech off the state, resources taken from their lands have in fact been subsidizing the Canadian economy. [/color] [/color] [/color] [/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif] In their haste to get at that wealth, the government has been flouting their own laws, ignoring Supreme Court decisions calling for the respect of Indigenous and treaty rights over large territories. Canada has become very rich, and Indigenous peoples very poor. [/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif] In other words, Canada owes big. Some have even begun calculating how much. According to economist Fred Lazar, First Nations in northern Ontario alone are owed $32 billion for the last century of unfulfilled treaty promises to share revenue from resources. Manuel’s argument is that this unpaid debt – a massive liability of trillions of dollars carried by the Canadian state, which it has deliberately failed to report – should be recognized as a risk to the country’s credit rating. 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Unlike Canadian politicians and media who regularly dismiss the significance of Indigenous rights, he took Manuel seriously. It was evident he knew all the jurisprudence. He followed the political developments. He didn’t contradict any of Manuel’s facts. [/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif] He no doubt understood what Manuel was remarkably driving at: under threat of a dented credit rating, Canada might finally feel pressure to deal fairly with Indigenous peoples. But here was the hitch: Standard & Poor’s wouldn’t acknowledge the debt, because the official didn’t think Manuel and First Nations could ever collect it. Why? As author Naomi Klein, who accompanied Manuel at the meeting, remembers, his answer amounted to a realpolitik shoulder shrug. [/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]5] “Who will able to enforce the debt? You and what army?” [/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]The “Lord Stern report” focuses on the carbon bubble caused by the discrepancy between climate targets and the exploitation of carbon resources.[/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]But there’s another potential bubble in carbon that the report does not address: a large part of the resources will simply never become economically viable.[/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]Even before you run into climate related limits, a lot of carbon will prove unburnable not primarily because of climate change legislation, but because of either one of two issues: 1) physics meets monetary limits, i.e. developing the asset makes no sense economically, or 2) physics meets physics, i.e. developing the asset makes no sense in energy terms because it costs more energy than it delivers.[/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]In connection with these two issues, at present a substantial part of America’s unconventional oil and gas only looks financially interesting because of the fortunes being made in speculation, for instance in land and land rights (in true Enron spirit, Aubrey McClendon and Chesapeake Energy have blown a huge market distorting bubble there).[/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]Far more money is spent on the promise of oil and gas plays than on the actual product. The result is a carbon related land (rights) bubble, and a typical case of something that looks good; until it doesn’t.[/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]But there’s more. A large part of the money that is being lavished on the carbon bubble is zombie money. If that money were not available, there would be no bubble. Every single debt that is not properly recognized, and restructured or defaulted upon, leaves zombie money present in a financial system. And every single asset this zombie money is invested in is by definition in a bubble.[/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]If people had a more profound understanding of what occurs when debts are not cleansed the way they should be, there would be no zombie money. As it stands, accounting standards in nations hit by the 2007-08 crisis have become running jokes, all in order to hide the real state of both governments and financial institutions.[/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]Hiding debt means hiding reality. Neither can remain hidden forever. Which, come to think of it, sets them apart from a lot of carbon resources. Which will never see the light of day.[/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]The point to take away from all this is that a storm cloud of uncertainties is taking shape above the carbon industry. And that alone will be enough to leave a lot of carbon unburnable. Which may not be such a bad thing.[/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif]Artwork: Ilargi for The Automatic Earth[/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif]By Raul Ilargi Meijer[/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] [color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif][color=#000000][font=arial, tahoma, verdana, sans-serif]Website: http://theautomaticearth.com (provides unique analysis of economics, finance, politics and social dynamics in the context of Complexity Theory)[/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color][/font][/color] Continue reading
