Trade Wars Breaking Out All Over The World
As money runs out around the globe, nations must become more aggressive to generate employment and revenues for citizens. Compounding this problem is a growing depletion of the world's fresh water in important population centers like Mexico City and China.
Last week we saw lots of stories about this issue in a variety of media outlets. This morning it is making headlines as China and the U.S. are bantering back and forth......France wants to impose carbon tarriffs on imports.....and now the issue is spreading to South America.
THE HAGUE -- Argentina argued Monday at the U.N.'s highest court that Uruguay "flagrantly breached" international law by authorizing the construction of two pulp mills on the river that separates the two countries.
One of the mills has already been built and Argentina's chief representative at the International Court of Justice, Susana Ruiz Cerutti, called it "a bad mill in a bad place."
She told judges the mill that turns eucalyptus trees into pulp, the base ingredient for paper, already is pumping pollution into the waters of the River Uruguay and releasing foul-smelling gas into the air close to an Argentine tourist town.
Unless we restructure, economic stress will rise around the world. Massive debt obligations to Zombie banks will consume funds that otherwise would have gone to purchase goods and services. Conditions will continue to deteriorate as assets are simply parked and shuttered such as the reference to Ghost Ships in Singapore a previous blog and now rising commercial vacancy rates and crashing rents.From an unfinished shopping mall in Elk Grove to the ghostly quiet office parks of South Placer, the slump that has overtaken commercial real estate could rival the meltdown in the housing market.
Across the Sacramento region, vacancy rates have soared while rents and property values have plummeted, leaving many landlords struggling to pay their mortgages.
We are still at the beginning of the Zombulation process. Handing out free money will be a temporary pain reliever, but will only serve to aggrevate the structural defect of too much debt suffocating declining revenues.
As the desperation intensifies, you should continue to see nationalism and aggressive behavior intensify......with military and troop build ups around the world.....we are setting the stage for a very volitile situation.