Friday, October 19, 2012

U.S. posts 4th Year with $1 Trillion plus Deficit

An exhausting week has left me extremely tired as my weekend was loaded with an attack on our HQ, a high level conference and a busy global military circus. My girlfriend is currently being driven to HQ where I look forward to have dinner with her and relax for a few hours. The only thing that stands between dinner with her is one quick video conference with a few updates on key issues.

I log into our virtual conference room a few moments before the first update is delivered. Number one on the agenda is Dumbama's spending spree which added over $5 Trillion to the national deficit in the past four years. The latest shortfall for fiscal year 2012 stands at $1.1 Trillion, which marks the fourth consecutive year of deficits which top the one trillion mark.

The deficit as compared to GDP is the highest since post WWII in 1947. Total national debt exceeded $16 Trillion and is over 100% GDP. Those levels are not sustainable and Washington has no plans to act on the twin deficits which will drive the U.S. off a fiscal cliff potentially before the year is over or early in 2013. Financial Armageddon will not be avoided and the public as well as the government is not prepared for such an event.

Next is the withdrawal of insurers of naval vessels who carry or store Iranian Oil. The withdrawal was caused after Vitol defied sanctions imposed on Iran and traded, stored and delivered Iranian fuel oil. Little known shipping firm Glammarine was also involved in the movement of Iranian oil. Titan was heavily involved in the transaction as well and is being sold to Chinese oil trader Guangdong Zhenrong Energy Company, LTD which is owned by blacklisted Zhuhai Zhenrong. The parent company was blacklisted as it is the biggest supplier of Iranian oil products. New York based private equity firms is invested in Titan through a 10% stake and attempts to unwind its bad investment through courts in Bermuda.

British insurer North of England P&I Association has withdrawn insurance for Titan and its fleet which renders the fleet useless and in need to locate a replacement for the lost insurer. EU insurers underwrite roughly 90% of the global shipping market which will make it very challenging for Titan to continue operations. Titan has suffered from operating losses over the past five years.

The Leader of Pakistan's militant group Tehrik-i-Taliban, Maulawi Dadullah, was killed in an airstrike in Afghanistan together with ten other militants on August 24th according to ISAF sources. His deputy, Shakir, was amongst those ten militants who were killed in the province of Kunar together with Dadullah. Dadullah organized movements of weapons as well as fighters and organized attacks on coalition forces. He was replaced by Maulana Abu Bakar

Taliban fighters have previously launched their third attack on the main Pakistani Air Force base near Islamabad, Pakistan's capital, in retaliation of Pakistan's seven month long ban on NATO using the base as a supply route into Afghanistan in order to support military operations on the ground.

Pakistan announced a new military offensive in the province of North Waziristan which is a tribal region used by the Haqqani militant group as a base from which fighters launch attacks on coalition forces. The son of the founder of the Haqqani militant group, Badruddin, may have been killed a week earlier by a drone strike.

This was the end of the short video conference in order to update all c-level executives as well as commanders of recent developments. I log off the virtual conference room and head to the bathroom in order to refresh myself before my girlfriend arrives. I hope we will be able to enjoy a few quiet hours together which will be a much needed distractions from the events of the past 96 hours.


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