...RECOGNITION OF FAILURE – PAIN OF ISOLATION The year 2009 will be marred by recognition of the Untied States and United Kingdom as failed states, beyond remedy. My description is for the US-UK to have morphed into crime syndicate control of government bodies in a widespread sense. They have strangled their hosts, and sucked them dry. The nations of the world will embark on a mission to protect themselves from the imploding giants. The natural progression in failed nations is from democracy to fascism, from capitalism to the Fascist Business Model, from free societies to martial law. A tragedy has already begun. It will run its full course. FAILURE SOUTH OF BORDER – OIL FALLOUT IN MEXICO & VENEZUELA The giant oilfield called Cantarell in Mexico will be totally dry of output by yearend 2009. That is correct, kaput. The decline is accelerating. The PEMEX management and Mexican Govt supervision has been an unmitigated disaster. Drug lords are taking control of the nation. The ugly financial facts are these. Over 40% of the Mexican Govt revenue stream came from the PEMEX oil industry in 2007. That source is running on empty. The national energy surplus will turn to a deficit by 2010, like early next year. The import of refined gasoline doubles the rate of foreign reserve decline, since crude oil not produced means gasoline that must be imported. The US will lose 10% of its crude oil import supply. Texas and Louisiana will struggle to find oil feedstock for gasoline refineries. More importantly, the Mexican Govt will dissolve before our eyes, and drug lords will carve up the nation south of the border. COMEX INVENTORY – BACK DOOR INTERRUPTIONS While many observers have been busily gauging and tracking the Open Interest and Demands for Delivery by COMEX participants, they have focused on the wrong things. Robbery and gutting of a giant KMart does not occur in broad daylight through the front door, removing items on shelves by a pack of kerchiefed men brandishing shotguns and escaping in Chevy Econoline vans. That is what the observers seem to expect by their tracking. No! The COMEX default will come from removal of inventory by means of denial by the powerful billionaires who have targeted the corrupted exchange. Sales of large blocks of gold & silver take place outside the COMEX in private transactions at prices 20% to 30% above the corrupt COMEX prices. The sold bullion does NOT find its way back to the COMEX. Furthermore, many large gold & silver mining firms have reduced sharply their actual mine projects, enough to reduce new supply to the COMEX. The big lie is the stated COMEX inventory, half probably pure fiction. Some is likely ‘Deep Storage’ bullion, as in unmined mountain deposits, the major ore bodies. The cracks have formed in the December gold & silver contract month. The breakdown should occur in 1Q2009 here, like by the end of March. All is on schedule, if only the observers knew what to monitor. They are errantly focused on the front windows, ignoring the back doors and loading docks.... http://www.financialsense.com/fsu/ed...