There have been some major drops in economic output. I find the most disturbing to be this report regarding Chevron that states that all natural gas drilling operations in the United States are being shut down.
“Chevron on Friday said that its second-quarter profits fell 71 percent and the second-largest U.S. oil company put its entire land-based natural gas drilling operation on hold, citing dismal demand.
“By the end of the year, we will not have a single gas land-rig running,” George Kirkland, Chevron’s executive vice president for global upstream and gas said in a conference call. ”
This is a very bad thing and shows that there need to be structures to energy costs. These sort of radical shifts, which seriously undervalue energy, are destructive to the national goal of constant energy availability.
The other story that was shocking was a 99% drop in profits by De Beers.
Yes, you read that correctly, a 99% drop in first-half profits. Here is the WSJ story.
The story you may have missed is that Russia is actually the world’s largest producer of diamonds and has not sold any this year. None, as in the number 0.
This drop in demand has never happened in my life time and, I believe, reflects the continuing depression. I know many exploration earth scientists who have been laid off and companies that have gone under because of this wild roller coaster of prices in minerals and natural gas.
Oil prices are maintained by OPEC and cartel activity, other natural resources are not. This mine has also been hit very hard by the global depression.
The next wave of financial stress is occurring. Banks involved in commercial real-estate, personal loans, and a variety of odd “insider” deals are going down. This is the latest in Texas and it’s a big one.
For all of you who enjoy watching your 401K vanish, meditate on this:
“Shares of the bank’s parent, Guaranty Financial, have dropped 97% since a group led by billionaire Texas hotel mogul Robert Rowling and Icahn, the renowned New York corporate raider, poured $600 million into the company in June 2008.”
Notice that numbers like “no sales“, “shutting down all United States operations“, and “97% drop” have appeared in this single blog. These are all clear signals that the processes of collapse-economics are occurring and we are entering the Greatest Depression. The media has abandoned the story and will simply not report it accurately.
Unemployment now, as measured accurately, is around 17%. Check this link for details, including a video segment.