Egypt in Crisis. Who is Next?

We know about Dubai, Greece, Ireland.  Even Italy, Spain, Portugal, Iran, Korea, India, Pakistan and Saudi Arabia are known "trouble spots".  But the current financial, social and political conditions are so unbalanced that it seems to me that even small countries, with relatively insignificant global impacts in a normal world, could wreak havoc in today's climate.  So while I don't have any inside information or insight, I am watching Cambodia and Thailand.  What impact could a war there have on the world rice market?  What about Austria?  What condition is their banking system in?  Lousy, I am guessing.  Estonia?  Hungary?  We know these countries have large debts in foreign currencies, Euros and Swiss Francs.  Ukraine?  Large grain producer and volatile political landscape.   Vietnam?  The only low cost producer left to wring out any marginal new global productivity.  Cuba?  What happens when the Castros pass from the scene?  Even Scotland!  Could they sue for independence?  Could Rabobank be ready to fail in the Netherlands?  I have no idea, but I see them expanding like crazy in Northern California, where I live.  I have to wonder why a Dutch bank wants to expand in California?  Is is because they are strong and they can?  Or is it because they are weak and they must grow or die?  Have they lost their focus?  There are way too many unknowns in the world today.  And too much of what is known is probably wrong.  Like Australia.  They are booming because they have a commodity economy.  Same for Canada.  They are both linked to the hip with China, due to the soaring demand for commodities in China due to rampant speculation and money printing by both People's Bank of China and the US Fed.  How many dominoes would fall if China collapses?   How about if China just "slows down" to 5% annual growth?  How about zero?  Can any modern economy survive with zero growth, if they are burdened with debts and unused capacity and unemployed citizens.  I don't have any answers, unlike the so-called market professionals.  But I am asking important questions.  Questions which those in power do not want to face because there are no answers.  At least not any answers that they would like to hear...

Richard Russell: Asleep at the Wheel?

The Dow Theory is flashing a warning.  A big, bold, red-letter warning!  And Richard Russell is saying nothing about it.  Nada.  Zilch.  Why not?  Isnt' that his job as the premier practitioner of the Dow Theory?  What is the warning?  The Dow Transports peaked back in January, on the 13th to be precise.  Their closing high value was 5229.  Meanwhile, the Dow Industrial average has just hit a new high today at 12,162.  That is three weeks of divergence for the two averages.  What does it mean?  Maybe nothing, maybe everything.  But as a paying subscriber, it would be good to hear what Mr. Russell's opinion is on the matter.  After all, that is the name of his newsletter.

India Next?

Greece, Algeria, Egypt.  Who is next?  So far the unrest has only touched relatively minor countries on the global stage.  But what happens when a large player like India (or China) starts to experience food riots or energy shortages?  Events are spinning out of control of the monied elites running the machines.  Look for more unrest as food and energy prices soar.  Look for more currency instability as money flows shift with increasing frequency and ferocity.  I think that India has a high likelihood of the large countries that will be impacted by social and economic unrest.  The implications could be severe.