90 seconds at 9 am with BNZ: IMF boss held in custody on rape charges; Australian home loans hit 10 year low; China bans diesel exports; US hits debt ceiling

China has been locking down energy supplies anywhere she can, for a long time now. One suspects there are some realists at the top - who understand that energy is required for economic activity, and that a  cessation of economic growth will result in them getting boots up their bums. I don't think they're concerned with 'inflation', I think they just understand 'last man standing' better than our economics gurus.

They were always going to be beaten by exponential logistics, though. A railway-line gets saturated in movements, a port gets clogged ditto. You can only stack containers so high, you can only drag a train so long.

It's an Age of Empires problem, thence an ultimate scarcity problem. There's even a serious paper out suggesting we are at or near Peak Coal. I don't buy it, but the dwindling EROEI argument is valid.

Mangled linguistics aside, Keys "There's strong growth coming out of China" will go down in history alongside "They couldn't hit an elephant at this dist......." . It can only be had at the expense of others (us, US) and only for a short time at that.

More rate hikes for China ( and an even more slow-down market there)? "Two Chinese Bond Auctions Fail (13/5)... It appears investors don't agree with the central planners that 3% is an appropriate rate to compensate them for surging inflation. That, and also the fact that banks suddenly have no liquidity..."

" Treasury Secretary Timothy Geithner taking action to stave off the federal debt limit until Aug. 2 , using accounting means that involve two retirement funds ".

...... Any clue , Bernard , as to exactly which retirement funds these  are ?

It really was only a matter of time before the pollies started to hook into the fat funds set aside for retirement . ........ " Growth assets are risky you know . We'll pop your retirement funds into US Treasuries , uber safe ...... Trust us , we're from the Government , we're here to help you ............. "

"Beijing has suspended exports of diesel fuel indefinitely to help meet domestic energy demand ahead of the peak summer season, prompting concerns about knock-on effects across Asia.

The move, designed to keep energy prices low at home, echoes export bans implemented by many governments on agricultural commodities in 2007-08, which sparked large increases in food prices."

Welcome to Peak Oil, Peak food, peak everything...globalisation is dead....as a dodo.

http://blogs.ft.com/beyond-brics/2011/05/03/china-are-power-cuts-possib…

"China’s power producers are going to get squeezed by record prices for thermal coal. Because electricity prices, which are set by the state, haven’t risen, thermal power stations are increasingly being run at a loss."

Got to love some of these clowns the demand is there so supply will rise to meet it,

"But a new study from the US-based Lawrence Berkeley National Laboratory,  predicts that while China’s total energy demand will roughly double in the next 40 years, growing from 2.25bn tonnes of coal equivalent (mtce) in 2005 to 5.5bn tonnes of coal equivalent in 2050, it will begin to plateau around 2040."

Peak oil and coal is about now...it cant continue to grow unless China takes it off everybody else....therefore neither can china....and everyone incl OZ is betting the house on it being able to....crazy really. 

regards

Ponsonby's Soho Square back on the block says receiver Grant Thornton:

"Receiver of the Soho Square development site in Ponsonby, Tim Downes of Grant Thornton New Zealand Ltd, announced today that the landmark Ponsonby site would be offered to the market in a campaign headed by Bruce Whillans, principal of Ray White’s Auckland commercial operations.

Downes said that the Receivers’ focus on the property since appointment had been on adding value via improving the permissible development on the site. This was achieved in March this year when resource consent was granted for a mixed use development of 45,348sqm on the site, versus the previous consent of 32,286sqm when the site was offered to the market in early 2010.

Downes said that improving the permissible baseline development on the site has created a significant building envelope which can now be fine- tuned by the ultimate developer of the site.

“There has been continuous interest in the property from a number of parties throughout this value add phase, and the time is now right to bring the property to market again” said Downes, adding that he was confident of achieving a result this time."   

Dominique Strauss-Kahn has been sent to New York's apparently notorious Rikers Island jail & He is being held in protective custody in a 3.5-by-4-metre cell to prevent attack from other inmates - http://tvnz.co.nz/world-news/strauss-kahn-moved-notorious-jail-4175025?…