Down Under!

Fri, Jul 26, 2013 - 12:20pm

A quick bit of 80's Nostalgia:
"Do you come from a land down under?
Where women glow and men plunder?
Can't you hear, can't you hear the thunder?
You better run, you better take cover."
Men At Work

I had written a piece on the effects of economic and political power on our investments for my first piece. However, late last night, I became intrigued by a couple of stories on our US Military actions down under so I've decided to put that piece off to do a bit of speculation on these tantalizing headlines.

Australian War Games: U.S. Military Machine Out Of Control

"The “military machine” of the United States is “out of control” as it is spreading its military tentacles throughout the Asia-Pacific region amid a massive and unprecedented series of war games in Australia, an antiwar activist says. Approximately 20,000 US troops descended on Australia’s east coast for a joint military exercise this week in the biggest such exercise to date."

US, Australian troops build for joint exercise in central Qld

Troop numbers are building in Central Queensland for the biggest bilateral military exercise conducted by Australia and the United States. More than 28,000 troops from the two nations will be involved in Exercise Talisman Sabre over the next three weeks

And this lovely piece of work by the US Military.

US says bombs dropped on Australia reef to avoid boats

The United States military said Monday it had jettisoned four unarmed bombs on Australia's Great Barrier Reef during a training exercise only because civilian boats had strayed into the drop zone.
What's going on here? Well according to Vice Adm. Scott Swift, the U.S. 7th Fleet commander overseeing operation Talisman Saber 2013, the joint war games in the South Pacific are designed to prepare for natural disasters and government relief, or to provide military support, now get this "when a government collapse leads to humanitarian need" Anybody get a feeling that Adm. Swift is a bit of a snake oil salesman MOPING the presence of US troops in one of the most stable countries in the world. I'm fairly certain that the Aussies are quite capable of handling their own humanitarian and disaster relief needs.
Now let's look at some parallel stories over in the Asia-Pacific region. According to the New York Times, only two weeks earlier China announced, an unprecedented naval exercise with the Russian navy in the Sea of Japan, under military deploying antimissile submarines, 7 warships, and an entire flotilla advanced naval weaponry.

China will not stand alone. The Obama administration’s decision to send more military power to Asia is widely interpreted in China as a containment policy, leading in part, some Chinese analysts say, to China’s seeking stronger military and economic relations with Russia, a country it has long regarded with suspicion.

I think we can be certain that China and Russia do not have humanitarian assistance in mind. And back in July, China and India announced for the first time joint naval exercises.

Ok, let's state the obvious: The US doesn't like the idea of China developing unilateral trade agreements with other countries such as Australia, New Zealand, France and a host of South American countries to allow direct conversion and trade with the Chinese yuan. The new BRICS alliance is working overtime to counter the Western elite with a new BRICS bank as a counter move to the IMF. We are seeing an unprecedented financial, military and geopolitical cooperation among the BRICS nations attempting to thwart the continued the Anglo-American financial and military dominance in the Euro/Asian theater.

As Turd has been suggesting, the Chinese are building reserves to build a gold backed currency. I understand that there are some objections to this based upon Chinese liberal monetary policy undermining it's currency. Nobody can claim China is a monetary saint, however, over printing a currency is not the sole criteria for debasement and currency failure. Right now we have Chinese monetary policy being met with broader acceptance of the Yuan contrasting the US Dollar being assaulted from all corners at the world simultaneously as the Fed issues more dollars. The fact that more and more countries are looking at direct trade with China and the Yuan strengthens the currency because at the end of the day it could be argued that there are no strong currencies except those which others are willing to accept.

Now let's add the following article to the equation of speculative reasons why the US might want to keep close tabs on Australia in light of their interest in direct trade with the Yuan. This article was published on Joseph's Farrell's blog so I'm also including his speculation along with the article. I expect that the oil blogosphere is heating up to show how this can't be so and a dozen or more ready to call me a schmuck for remaining on the fence regarding the Peak Oil meme. I get it. We are going dark. And yes, there are smarter, more well informed pundits writing about the situation but us uninformed are a bit slow and enjoying entertaining both ends of the argument.

The Biggest Oil Discovery In 50 Years?

In a virtually uninhabitable section of South Australia, a discovery has been made which could rock the world. Some are calling it the biggest discovery of oil in 50 years. Earlier this year, a company called Linc Energy announced that tests had revealed that there was a minimum of 3.5 billion barrels of oil equivalent sitting under more than 65,000 square kilometres of land that it owns in the Arckaringa Basin. But that is the minimum number. It has been projected that there could ultimately be up to 233 billion barrels of recoverable oil in the area.
It would also mean that Australia now has more "black gold" than the nations of Iran, Iraq, Canada and Venezuela.

About the Author

Green Lantern


Jul 26, 2013 - 12:30pm


DEBT BOMB - The Global Financial Crisis Stripped Bare by Dominic Frisby
Jul 26, 2013 - 12:30pm

Funny - Eating a...

Funny, I was eating a vegemite sandwich when I saw this! Really! Love the stuff.

Jul 26, 2013 - 12:30pm

Well, well, could it be a second?

Timing it's all in the timing.

Jul 26, 2013 - 12:33pm

Ah, another Turdville week comes to a close

Hang in there my Friends, we will win!!!

Just A Regular Guy
Jul 26, 2013 - 12:36pm


Peak oil is BS - flame away..... I wont respond, I cannot be arsed.

With regards to the military exercises, yes, it is kind of strange. Similarly strange are 1000 US Marines stationed in the North Territory and I have YET TO HEAR some kind of rational reason as to why this is. I heard some crap about training in desert warfare? What, the US doesn't have deserts? Oh wait, they're different right? Different sand, sand that is redder in colour and softer on the foot..... sure, and I'm Mother Teresa....

But yes that bomb or bombs..... Seriously wtf..... The US peeps said (in the media here) that they'll send down their divers to go fetch 'em. Why am I so paranoid about that too?


As a post script for you punters, check out LNG:ASX. They're kind of a big deal (to you guys in the US). They're building a plant in Louisiana. I got some cash in the company. It's a spec. punt, but I like my odds at the price I'm paying.

Jul 26, 2013 - 12:37pm

Youtube video link not working for me

Anyone else have this problem?

Jul 26, 2013 - 12:38pm

Oil can be manufactured,

Oil can be manufactured, given a source of cheap, abundant energy. Thorium looks to be a strong potential source, as does "waste" plutonium when used in traveling wave reactors. It's not that peak oil doesn't exist, it's that it is moot. No more important than peak charcoal was to steel manufacture in England. There may be dislocations during the sea change, but it will be anything but a civilization ending event.

argent rampant
Jul 26, 2013 - 12:39pm

Re-post from last thread: Michael Hastings' death...

may not be important, but there is a possibility it is VERY important. Someone needs to keep digging for the truth.

We ought to ask why...

did a seemingly successful young reporter with a wife and young child, who gave up drinking five years ago, ram his car into a tree at 4:30AM?

was he on that road at that time, going where?

was the transmission laying on the ground 150ft behind the car?

did a 2013 Mercedes burst into flame from a front end collision?

did the flames totally consume the car, inside and out?

did the FD arrive so quickly (when was the call received)?

did the PD so quickly rule out foul play when they couldn't even positively ID the body for 3 days?

will it take weeks to get a toxicology report?

does the PD refuse to release the accident report?

does the PD refuse anyone access to the vehicle?

have PD and FD allegedly been told not to comment?

was Hastings' body cremated without asking the family?

did Hastings email friends hours before the event saying he was under FBI investigation?

did he say in that same email that he was working on a very big story and needed to go off the radar for awhile?

There are more questions, I'm sure, but isn't this list enough to arouse the curiosity of SOMEONE besides a single San Diego TV station? Oh, and Hastings' last published item was about [the Obama] government spying. The final paragraphs read:

"...Transparency supporters, whistleblowers, and investigative reporters, especially those writers who have aggressively pursued the connections between the corporate defense industry and federal and local authorities involved in domestic surveillance, have been viciously attacked by the Obama administration and its allies in the FBI and DOJ.

Jacob Appplebaum, a transparency activist and computer savant, has been repeatedly harassed at American borders, having his laptop seized. Barrett Brown, another investigative journalist who has written for Vanity Fair, among others publications, exposed the connections between the private contracting firm HB Gary (a government contracting firm that, incidentally, proposed a plan to spy on and ruin the reputation of the Guardian’s Greenwald) and who is currently sitting in a Texas prison on trumped up FBI charges regarding his legitimate reportorial inquiry into the political collective known sometimes as Anonymous.

That’s not to mention former NSA official Thomas Drake (the Feds tried to destroys his life because he blew the whistle ); Fox News reporter James Rosen (named a “co-conspirator” by Holder’s DOJ); John Kirakou, formerly in the CIA, who raised concerns about the agency’s torture program, is also in prison for leaking “harmful” (read: embarrassing) classified info; and of course Wikileaks (under U.S. financial embargo); WikiLeaks founder Julian Assange (locked up in Ecuador’s London embassy) and, of course, Bradley Manning, the young, idealistic, soldier who provided the public with perhaps the most critical trove of government documents ever released.

The attitude the Obama administration has toward Manning is revealing. What do they think of him? “Fuck Bradely Manning,” as one White House official put it to me last year during the campaign.

Screw Manning? Lol, screw us.

Perhaps more information will soon be forthcoming. "

Or perhaps not...

Jul 26, 2013 - 12:43pm

Life is a vegemite sandwich

But who was the strange lady who made you nervous? Did she perchance hail from another colonial territory?

Just A Regular Guy
Jul 26, 2013 - 12:50pm


Yea I heard, not long after the Russian's had done a deal for BP, that the Brit's put out a press statement saying they can manufacture diesel in labs with bacteria... whoops :) With my decent knowledge of biology I could see this as plausible!

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

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Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

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