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Lebanon & Ten Fundamental Mega-Trends in the Middle East -- Potential for Multiple Black Swans?

DK Matai - May 10, 2008

FutureTV.jpg
Future TV under attack, Beirut

Dear Friends, the international community is waking up to the shock of the "yellow topple" Hezbollah power grab which threatens to change the fundamentals in Lebanon as well as the Levant, and more broadly across the Middle East.

The situation in Lebanon is extremely tense after the Shiite movement -- Hezbollah -- seized control of west Beirut in what the ruling Western-backed coalition government brands as an armed coup orchestrated with the help of Iran and Syria. As Lebanon stands at the brink of civil war, the United States and the European Union are urgently consulting Lebanon's neighbours and the United Nations Security Council to determine if there are any possible measures that can be taken to control Hezbollah at this stage. After the exceptional meeting of the Arab League that will be held tomorrow, intensified international calls are likely to take place via the UN, US and the EU to study possible solutions. UN Security General Ban Ki Moon has called on the international community to take steps to avoid further deterioration in the Lebanese situation.

There is a perfect storm brewing. Along with the synchronised unfolding of the Fuel, Food and Finance -- 3Fs -- global crises, we are witnessing the convergence of ten fundamental mega-trends in the Middle East including the Gulf Cooperation Council (GCC) countries: Kingdom of Saudi Arabia, Kuwait, United Arab Emirates (UAE), Bahrain, Qatar and Oman. These mega-trends hold the potential for multiple black swans, ie, unforeseen off-the-radar events. ATCA members need to pay heed to these convergences when analysing the unsettling events of the last few days in Lebanon.

The ten fundamental mega-trends unfolding in the Middle East are as follows:

1. The huge petro-dollar finance surpluses of the GCC countries and Iran manifest partially as Sovereign Wealth Funds (SWFs);
2. Rising inequality within GCC countries and Iran as well as without, ie, with neighbouring countries like Lebanon, Jordan, Egypt, Syria and Yemen;
3. Strengthening of strategic energy, trade and finance links with China and Singapore; Malaysia and Indonesia; as well as India and Russia;
4. The step-by-step shift away from the US dollar as de facto reserve currency and American financial institutions as keepers of wealth;
5. Accelerating food, commodities and household goods inflation;
6. Rising domestic demand for fuel leaving less oil to export and rising price of energy;
7. Water constraints including those induced by nature and humans;
8. Exploding demographics with a skew towards an extremely large young population;
9. Extremism-dominated politics; and
10. Concentrated urbanisation.

Read the article here.

[ENDS]

The LinkedIn Q&A can be accessed from here. We welcome your thoughts, observations and views. Thank you.

With love and warm wishes to you and family


DK with family

DK Matai

The Philanthropia, mi2g.net

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Posted by DK Matai at May 10, 2008 11:40 PM

  
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Dear DK, keep up the good work keeping attention on the issues and informing. Don't forget about the extreme weather. Unfortunately it doesn't start with F. See the section below about the new Microseisms data.

8 months ago (Sep 07) and even prior to that this was all outlined and predicted here in the Socratic dialog. The solutions were also indicated but no implemented. If fact it was said that this would be a test to see if we were aware of the issue in advance we could prevent it. Obviously the information didn't flow through the channels or the issues really beyond everyone’s control which is mostly due to the complexity of the systems and being aggravated by ego impediments.

I wrote this on another thread perhaps more pertinent here.

Since disaster brings out the goodness in us and causes us to reach out and bond dropping many ego impediments, the petty fictions become meaningless, and disaster is a great equalizer among men, it might be a good thing for our evolution. Of course the wise drop the ego impediments and discard the petty fictions to anticipate a disaster and prepare so they can adapt.

True, disaster can bring out the worst in some people, but in the majority it brings out the best.

When one prepares, and anticipates what often would have been a disaster becomes an inconvenience and a focus of collective attention and adjustment. Helping one’s neighbors is an investment in one’s future good fortune in the event of a disaster or strenuous situation.
Speaking of disaster the world has what two years, maybe less, to switch from oil as the dominate energy source?

I am always looking for data sets that could indicate energy increases and acceleration of such increase. There is a new data set; well it is actually an old data set that became important and meaningful.

Microseisms are caused by large storm waves crashing into the shore that transfers energy to the land, and the resulting microseisms travel for thousands of miles. They are picked up on Seismometers that monitor earthquakes. These smaller vibrations caused by ocean storm waves were until recently considered noise. We have many years of these recordings that create a record of change.

The data examined showed a "systematic increase" in the number of storm-caused microseisms over the last two decades. An increase of about 6%, with an acceleration near the end. This data would represent only a small portion of the kinetic energy spectrum. Factoring other items to get the whole system picture we may actually be seeing a 30% increase in total system energy and based on the acceleration this energy increase could be 60% in two years. This would increase the system turbulence and the rate of change, which might mean a doubling of storm power and a tripling of vortex energy especially the micro vortices.


A long while back here and elsewhere I wrote the piece “1 Degree Counts.” Many would think what is the big deal over a few degrees over a number of years? Not much as it relates to your individual skin surface experience.

Water changes “state” at 32 + 1 degree from solid ice to flowing liquid which sets molecules into motion; releasing stored kinetic energy. Water is able to convert gravitational energy into new energy forms and vectors. It is still not known, the volume of effect if any, on the total energy in the system and how much is transferred to other forms from the change of state occurring in massive amounts of water.

This one degree change can increase the energy absorption factor. Over a large region this one degree is a huge “change of state” that further increases the rate of change, resulting in a snowballing effect. So we have an increase of kinetic energy and an increase of photon energy, which combined produce an increase in phonons, vibration energy.

It is not entirely clear where the additional energy is coming from of if it is one source or multiple sources increasing in concert.

This new energy must be something that we do not monitor or know about yet. Known sources of energy don’t add up as expected to account for the increases.

Taking all the numbers and analysis we would expect to need to migrate 30 – 60 % of the population within the next 2 – 4 years. Could you imagine migrating 60% of the population? If we do this we would need to rebuild in the new locations. Common sense would have us realize this and take this future required investment and invest it in the present to build “sustainable adaptive decentralized” infrastructure in place eliminating some of the future inconvenience and need for migration.

Just maybe if we simply stop claiming there is a shortage of energy, and harness the free flowing energy all around us and the universe will quit sending us so much.

Here is what I wrote back in September, name links to the original.

Dear DK,

It is no coincidence that you mention the black swan because I had been thinking about one, a potential black swan that may soon land on the pond.

This will be our experiment to see if we can avoid this Black Swan by creating awareness of it's impending approach.

I think most black swans result as a failure to understand and comprehend the linkage between all the subsystems.

All black swans have parents that give birth to them.

This black swan involves two things that tie in with the credit crunch and aggravate it. There are really two Black Swans being conceived here: Economic Tribulation and Famine.

One we control the other we do not.

1) Extreme Weather
2) The use of Ethanol for Fuel

With a little time we can show that #2 is based on flagrant ignorance and extreme greed we will demonstrate who profits from this ignorance and how they are driving a bad policy and approach.

#2 will result in famine and economic strife and create an unnecessary burden and cost on economic participants and does not fit with a holistic system.

Fact: It takes more energy to produce a gallon of ethanol than the energy produced when it is utilized.

This violates the first principle of system design:

“Determine the most energy and resource efficient methods that operate in harmony with all the other subsystems and support a continuous regenerating cycle or loop.”

Note that if solar energy were used in the production of ethanol it would alter the equation, however natural gas provides 60% of the energy for it’s production, which means #2 will increase demand and competition for natural gas. Consumers will pay more for natural grass aggravating the credit crunch.

Consumers will pay to the producers a subsidy of 50 cents per gallon of Ethanol which will come from their pay checks via taxes. So before you have even gotten to the pump you have paid 50 cents for each gallon that you pump.

The disregarded fact about ethanol is that it holds at least 30% less energy per gallon than normal gasoline, translating into a loss in fuel economy per gallon of at least 25% over gasoline for an Ethanol E-85per cent blend. No advocate of the ethanol boondoggle addresses the huge social cost which is beginning to hit the dining room tables across the US, Europe and the rest of the world. Food prices are exploding as corn, soybeans and all cereal grain prices are going through the roof because of the astronomical -- Congress-driven -- demand for corn to burn for bio-fuel.
This year the Massachusetts Institute of Technology issued a report concluding that using corn-based ethanol instead of gasoline will have no impact on greenhouse gas emissions, and would even expand fossil fuel use due to increased demand for fertilizer and irrigation to expand acreage of ethanol crops. And according to MIT "natural gas consumption is 66% of total corn ethanol production energy," meaning huge new strains on natural gas supply, pushing prices there higher.

THIS IS PURE GENIUS on the part of the Oil Companies (an you wondered why they were behind it?) , you are going to pay $3.00 for a gallon of fuel that gets you less miles per gallon meaning you need to buy more gallons.
INSIGHT: The automotive companies are required to get X miles per gallon. The use of ethanol will make it harder to meet these regulatory requirements.


4. Posted by Richard Thomas on September 3, 2007 01:05 PM

CONCEPTION of THE BLACK SWAN(s)

FAMINE & FINANCIAL TRIBULATION

A result of the bio-fuel revolution in agriculture is that world carryover or reserve stocks of grains have been plunging for six of the past seven years. Carryover reserve stocks of all grains fell at the end of 2006 to 57 days of consumption, the lowest level since 1972. Little wonder that world grain prices rose 100% over the past 12 months. This is just the start.

Only 57 days of stored consumption combined with Extreme weather events (drought, flood, harvest failure) destroying crops and the competition between using crops as fuel or food and you have a Black Swan.

This combined with an increased cost of living for the indentured servitude and the credit crunch and you are talking a big mess from which there may be no escape.

Prices of corn, soybeans and all cereal grains are going through the roof; because of the astronomical — corporate driven— demand for corn to burn for bio-fuel.

All major grains including maize, wheat, rice have seen the largest price increase in three decades. Those three crops constitute almost 90% of all grains cultivated in the world, and are a staple food for the world’s poor. (Remember one’s advice about Amaranth here)

The Labor Department’s most recent inflation data showed that U.S. food prices rose by 4.1 percent for the 12 months ending in June, but a deeper look at the numbers reveals that the price of milk, eggs and other essentials in the American diet are actually rising by double digits.
Already stung by a two-year rise in gasoline prices, American consumers now face sharply higher prices for foods they can’t do without. This little-known fact may go a long way to explaining why, despite healthy job statistics, Americans remain glum about the economy.
It's increasingly clear that the same people who brought us oil price inflation are now deliberately creating parallel food price inflation.

We have had a rise in average oil prices of some 300% since the end of 2000 when George W. Bush and Dick Halliburton Cheney made oil the central preoccupation of US foreign policy.

Bio-fuel demand, fed by US government subsidies is literally linking food prices to oil prices.

In summary consumers will have unanticipated (when they took out the loans) increased costs for:

Natural Gas
Fuel for transportation
Food


One of the results of this situation will be increased fear and conflict further weakening and dividing the public and increasing the sales of security and defense products and services.

In conjunction with the increased fear citizens will be forced to relinquish even more of their freedom and submit to other controlling forces.

As a result of the malnutrition and poverty disease levels will rise and the profitability of the medical industrial complex will be increased. Part of this revenue will be shared with the corporate media it will help to maintain ignorance and adoption of the fictions that help create and support this entire scenario.

The increased costs will require more borrowing and interest earned by the lenders.

There are a few that benefit from this scheme, thus they promote it, however it is a detriment to the many, and they must be kept ignorant of this fact if the few are to succeed in their plot motivated not by wisdom and the desire to generating benefit, but by greed and ignorance.

This is not really an organized conspiracy although there is some collaboration.

It is the natural result of each entity making decisions based on individual interests rather than a holistic, whole system point of view.

Aggravated by a failed energy exchange accounting system.

Here we go weather affecting food supply and increasing costs for end users. Which means less money to pay down debt.

The price of wheat on commodity markets worldwide has soared, after a number of announcements indicating a shortage of supply from the world’s major producers.

The news comes off the back of a series of reports from around the world that poor weather in wheat growing nations is leading to a smaller harvest than in previous years.

Wheat, a vital commodity in enabling the manufacture of basic food production, has become a premium commodity around the globe, with manufacturers enjoying all time record prices for their crop as demand continues to rapidly outstrip supply for the grain.

However, the news could lead to prompt food inflation for consumers, as well as hindering international humanitarian aid efforts in countries affected by famine.

Growers in Canada have complained of bad weather weakening their crop by as much as 20% according to some reports, whilst growers in China have forecast a 10% decline in their output this year.

The world’s third largest producer, Australia has suggested that warmer weather over the first half of the year could seriously impact upon volume of output, whilst growers in Europe have experienced heavier rains than in previous years.

As a result, worldwide stocks have fallen to a 26-year low, sending the price of wheat and wheat produce soaring worldwide to around $7.44 a bushel.

With this fall in supply comes a dramatic increase in demand globally, largely attributed to emerging economies in the East like India and China. With the growing inequity in supply, prices are likely to continue to rise over the coming weeks and months.

Analysts are predicting the price increase is likely to have a knock-on effect in domestic supermarkets before too long, expecting the price of breads and pasta to increase in line with the supply shortage.

7. Posted by Richard Thomas on September 3, 2007 11:11 PM

Dear DK

"Exploding demographics with a skew towards an extremely large young population..."

That young population is chronically underemployed, frustrated and angry. They often have to postpone starting their own new families and households, they are an economic burden on their parents; they need a serious purpose in life but are thwarted in finding a natural one. There is a potential for unpredictable and possibly destructive acting-out, individually and in groups. It's from this cohort that groups like Hezbollah recruit most of their active militias and enforcers, and find their energy to continue to act powerfully.

love, h

Yes indeed, Heather.One is working to channel that "energy for change" into a constructive expression with productive results. A major component of the:

New Consciousness Revolutionary Army.

Interchangeable with

New Consciousness Evolutionary Army.

Blended

New Consciousness (R)evolutionary Army.

Read The Army of One - wisdom.gaia.com - choose the blog tab.

Army being an organized collection of individuals acting as One, with a shared intent, a common impetus and focus of attention, the instigators of wisdom based change and enhancement resulting in human evolution.

One that does not use violence, physical destruction, or coercion but rather physical presence, shared intent, dissemination of intelligence, and the wielding of collective economic power, with collective decision making, and unity born of a foundation of truth rather than division born of a foundation of fiction.

They are not tangible operators as much as they are intangible operators heralding from the intangible kingdom of Shambhala manifesting itself as a tangible one.

The truth grants those who embrace it, supreme authority, for the truth is the real authority in contrast to the fictional authority on the planet today. Much of what was claimed to be truth was really a fiction.

What we mostly argue as truths are really fictions. The truth itself is fundamentally very simple, “The One Truth”, the singularity is the core of all truth. One as all and all as One holding this truth in mind one can determine the validity and wisdom of all perspective, determining the nature of a perspective based on truth or one of fiction.

The Kalachakra prophesizes that when the world declines into war and greed, and all is lost, the twenty-fifth Kalki king will emerge from Shambhala with a huge army to vanquish "Dark Forces" and usher in a worldwide Golden Age set to begin in 2012 when a new game begins, with new boundaries of play.

A (R)evolution Featuring the Youth of the Nations, the Emeritus, The New Scientist, The Technorati, The Feminine Resurgence, The Infinite Players, a billions year old intelligence of extraterrestrial origin, and of course the mysterious Mr. Urgo Diamu thought to be a senior member of the intelligence cabal with benevolent intention and last but not least The Mysterious Force working behind the scenes the Grand Architect, the distinguished, illustrious, superluminal director of orchestration, in the Symphony of Life.

It is all in the Move that blends with reality, Infinite Play.

Thanks to all those that are playing, an amazing cast of characters, in an Epic Story.

"One's tongue is greater than any steel that could be brought to bear against it. For with the written and spoken word, the beast called Ignorance was slain. Excalibur from the Latin phrase Ex calce liberatus, "to liberate from the stone" the reality behind the appearances, the Self from Illusion."

I left out "the gravity of benefit" above.

One that does not use violence, force, physical destruction, or coercion but rather physical presence, shared intent, the gravity of benefit, dissemination of intelligence, and the wielding of collective economic power, with collective decision making, and unity born of a foundation of truth rather than division born of a foundation of fiction.

Hey DK, your 'Linked In' question links are there but all the associated questions and answers have mysteriously disappeared.

The Mysterious Force or the Forces of Ego?

We need to give the future Pulitzer Prize winning journalists something to work from.

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