Economic Crisis

The world is in a complete mess, this feeling is not uncommon among those who are monitoring the news online.

Energy Crisis

Firstly, Russia had previously hiked up the price of natural gas and expects Ukraine to pay up the new price of natural gas or face another gas supply cut.

This year’s price rise for gas sold by Russian gas export monopoly Gazprom has been dramatic — Naftogaz is paying $360 per 1,000 cubic metres in the first quarter from $179.50 last year, although Ukrainian officials have said they expect the figure to come down steeply.

Naftogaz says its ability to pay for Russian gas is complicated by huge debts owed to it by local utilities.

State security officials tried on Thursday to stage a raid for the second straight day on Ukraine’s gas industry, heightening long-running tensions between the president and prime minister.

A similar raid on Wednesday by armed SBU officers on the offices of national energy company Naftogaz as the firm was making arrangements to settle a critical bill for Russian gas revived feuding between President Viktor Yushchenko and Prime Minister Yulia Tymoshenko.

Putin, addressing his government, said failure by Ukraine to pay could prompt Gazprom to curtail supplies, as it did for three weeks in January, and again cut off customers in Europe.

“If as a result of law enforcement actions and arrests of a number of officials there will be no payment, it will lead to the stoppage of our energy deliveries to our customers in Ukraine as well as customer in Europe,” Putin said.

Ukraine’s energy company paid its February bill for Russian gas in full Thursday, officials said, moving swiftly to avoid a cutoff that could have affected deliveries to Europe.

In short, Ukraine’s energy future is in serious problem…this include those customers from Europe that receive natural gas from Russia via Ukraine.

Now with the global economic crisis hitting the Eastern Europe with a vengeance, Ukraine and many European countries (involved)  may be facing a relatively dangerous energy crisis in the near future.

North Korea Crisis

NKorea says cannot ensure safety of SKorea flights: state media

North Korea announced Thursday it could not ensure the safety of South Korean flights over the Sea of Japan because an upcoming joint US-South Korean military exercise could trigger a war.

North Korea is also preparing to fire a rocket from a base overlooking the Sea of Japan for what it calls a satellite launch. Seoul and Washington say the real purpose is to test a missile that could theoretically reach Alaska.

“Under the touch-and-go situation where the North and the South are in full combat readiness and level their rifles and artillery pieces at each other, no one can guess what will trigger off a war,” said the North’s statement, from the state Committee for the Peaceful Reunification of Korea.

Its military would respond to the “slightest provocation or its sign” on land, sea or in the air with “decisive and devastating blows at the aggressors.”

IRAN Threat

Commander says Iran missiles can reach Israel atom sites!

Iranian missiles can reach Israeli nuclear sites, a top military commander said on Wednesday, after persistent speculation that Israel could target facilities involved in Iran’s atomic work.

Iran has long said it has missiles that could reach the Jewish state but has not generally mentioned specific targets. Military analysts question whether Iranian missiles have the ability to hit targets at such ranges with great accuracy.

- This have serious implication due to the fact that Iran Commander specified their possible targets on Israel which means they had stepped up their rhetoric against Israel to either provoking for a fight or preparing for one.

It can also be a warning to deter Israel from conducting a military preemptive strike on Iran which may have disastrous consequences now that Iran have missiles that can ‘send satellite’ to space.

What will Israel response to this ‘challenge’? What will Obama administration going to do to control the situation?

Economic Crisis

Federal Deposit Insurance Corp. Chairman Sheila Bair said Insurance Fund Could Be Insolvent This Year (2009)

“A large number” of bank failures may occur through 2010 because of “rapidly deteriorating economic conditions,” Bair said in the letter. “Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative.”

AIG share prices falls to a record low at $0.36 (6 March 2009) as U.S. regulators failed to spot how much risk insurer AIG was piling on, and by the time they understood, they had no choice but to pour in tens of billions of public dollars, officials said on Thursday.

AIG sold insurance-like protection, known as credit default swaps, against declines in the value of securities — including subprime mortgages that began defaulting at an alarming rate when the housing market tumbled.

That picture emerged Thursday in General Motors Corp.’s annual report, where its auditors voiced “substantial doubt” about GM’s ability to continue operating.

In the report, the company said that Deloitte & Touche LLP cited recurring losses from operations, a sharp decline in stock price and an inability to generate enough cash to meet its obligations as casting doubt on GM being able to continue as a going concern.

The disclosure about a company that has been inseparably linked to jobs and the economy of Western New York for nearly 90 years, means that Chapter 11 protection for GM might not be far away, said a Buffalo expert in corporate bankruptcy law.

“Unless the government comes up with additional bailout assistance, it confirms that Chapter 11 will happen in the near term,” said Garry Graber, a lawyer with HodgsonRuss LLC.

“They have a cash issue — not enough cash flow without government infusion to continue to operate,” he said.

Citigroup stock falls below $1 for first time, One dollar could buy a cup of coffee, a pack of chewing gum, or a roll of bathroom tissue.

For the first time, it could also buy a share of Citigroup Inc (C.N), once the world’s largest bank by market value.

The price of a Citigroup share on Thursday fell below $1 in a sign that investors are losing confidence that the lender, which operates in more than 100 countries, can be restored to health after $37.5 billion of losses in the 15 months ended December 31.

- This means thousands more people will lose their jobs and probably unable to support themselves in the near future…be prepared for self sustainability and stock up at least 2 months worth of food, water & other essentials.