Going, Going...

Things are starting to slide. At the moment just before an avalanche begins, nothing is moving. At the moment just after it starts, the whole surface begins to move as one piece. Very quickly, it starts to fragment as internal forces begin to tear up the once solid snow until it is a chaotic cloud of ice crystals tumbling down the mountain under its own weight. It can't be stopped - it has no point of resistance; it crashes down the mountain until the slopes flatten out and its energy is spent.

When are conditions just right for an economic landslide? When the weight of ultra-extended debt has built up so much that even the interest payments can no longer be paid.




Maximum Debt

UK National debt explodes under the Tories – up 30% since they came to office, now stands at £1004tn

http://www.goldmadesimplenews.com/gold/uk-national-debt-explodes-under-the-tories-up-30-since-they-came-to-office-now-stands-at-1004tn-6047/?utm_medium=email&utm_source=Goldmadesimple&utm_campaign=1144265_GoldMadeSimpleNews34&dm_i=GR8,OIX5,2KQOD8,1Z9T0,1

http://www.ons.gov.uk/ons/dcp171778_253584.pdf

Andrew O'Neill on Twitter:
https://twitter.com/#!/afneil/status/163044508559351809
Foreign Office sources say Merkel now thinks Greece will default.

It's Official: German Economy Minister Demands Surrender Of Greek Budget Policy, Says It Is First Of Many Such Sovereign "Requests"

http://www.zerohedge.com/news/its-official-german-economy-minister-demands-surrender-greek-budget-policy-says-it-first-many-s

While over the past 2 days there may have been some confusion as to who, what, how or where is demanding that Greece abdicate fiscal sovereignty (with some of our German readers supposedly insulted by the suggestion that this idea originated in Berlin, and specifically with politicians elected by a majority of the German population), today's quotefest from German Economy Minister Philipp Roesler appearing in Germany's Bild should put any such questions to bed. And from this point on, Greece would be advised to not play dumb anymore vis-a-vis German annexation demands. So from Reuters, "Greece must surrender control of its budget policy to outside institutions if it cannot implement reforms attached to euro zone rescue measures, the German economy minister was quoted as saying on Sunday. Philipp Roesler became the first German cabinet member to openly endorse a proposal for Greece to surrender budget control after Reuters quoted a European source on Friday as saying Berlin wants Athens to give up budget control." And some bad news for our Portuguese (and then Spanish) readers: you are next.

 

Unwanted homes in Irish Republic could be demolished

http://news.bbc.co.uk/1/hi/world/europe/8653238.stm

They have been called the 'ghost estates' of the Irish Republic - about 300,000 homes built in the frenzy of the property boom that no-one wants to live in now. Soon, many brand new houses could be demolished. Paul Henley reports from Country Carlow.

Detroit falls into terminal urban decay

China Stalls?

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100014380/china%E2%80%99s-very-mysterious-data/

India to pay gold instead of dollars for Iranian oil. Oil and gold markets stunned

http://www.debka.com/article/21673/

1. India has become the first buyer of Iranian oil to agree to settle purchases in gold.
2. China is expected to follow India's move.
3. Approximately 40% of Iran's total oil exports are consumed by India and China.
4. Settling oil transactions in gold enables Tehran to circumvent the EU's upcoming freeze on Iran's Central Bank assets and the oil embargo announced Monday January 23rd.
5. Owing to the magnitude of the transactions proposed, the price of gold is expected to rise and the Dollar's value depressed on world markets.
6. The EU currently accounts for approximately 20% of Iran's oil exports.
7. The transactions are to be facilitated via two Indian state owned banks and a Turkish state owned bank.
8. Financial mechanisms have also been implemented between Iran and Russia for the settlement of oil purchases in currencies other than the US Dollar.

...and:

Iran Turns Embargo Tables: To Pass Law Halting All Crude Exports To Europe

http://www.zerohedge.com/news/iran-turns-embargo-table-pass-law-halting-all-crude-exports-europe

In what is likely a long overdue move, Iran has finally decided to give Europe a harsh lesson in game theory. Instead of letting Euro-area politicians score brownie points at its expense by threatening to halt imports and cut off the Iranian economy, the Iranian government will instead propose a bill calling for an immediate halt to oil deliveries to Europe. The move, with most reports citing the Iranian news agency Mehr, has come about in response to the EU agreement to impose sanctions against Iran, which were announced earlier this week. And why not? After all if Europe is indeed serious, sooner or later Iran will be cut off but in the meantime experience significant policy uncertainty, which is precisely what the flipflops on the ground need. The one thing that Europe, however is forgetting, is that all that whopping 0.8 Mb/d will simply find a new buyer. And with China, India and Russia already having bilateral agreements with Iran in place, we are confident that said buyer will have a contract signed, sealed and delivered within an hour of the proposed bill's passage.