World Improvers
Research for Online Investors

by John Dalt

3/22/11

The markets looked to open higher this morning on better news out of Japan as they work to gain control over the nuclear facility damaged by the earthquake and resulting tsunami.  Gov. Andrew Cuomo of New York wants to close the Indian Point nuclear generating plant that is 24 miles north of New York City.  His staff scheduled a meeting with the Nuclear Regulatory Commission today.

Officials with Indian Point say their facility is built to withstand an earthquake 100 times more powerful than ever recorded in New York.  They have multiple back up diesel generators in case the plant loses power.  Indian Point generates 32% of New York’s power.  One can never underestimate Gov. Cuomo’s desire to find a headline in need of a champion.  According to CBS, New York City Mayor Michael Bloomberg said “Until you find an alternative source (electricity), there is not a lot you can do…” Licenses for Indian Point’s two reactors expire in 2013 and 2015.

Kyodo News reports that all six reactors at the Fukushima plant in Japan have now been connected to external power.  Tokyo Electric Power Company (TEPCO) has resumed efforts to restore control room functions.  TEPCO suspended operations on Monday after smoke rose out of the reactor #3 building.

Fire trucks are continuing to spray water onto reactor #3.  The tsunami wave that struck the plant on March 11 is estimated to have been 14 metres high.  This wave of water knocked out the power and damaged the back-up power generators that were in a basement.

The Japanese government has restricted shipments of spinach, Kakina and raw milk.  TEPCO reports radioactive iodine levels 126.7 times higher than the legal limit and radioactive cesium 24.8 times higher were detected in seawater near the plant.

Economic reports out of Europe were not encouraging this morning.  Britain’s public sector net borrowing increased by almost 100% last month.  Rumors circulated that Portugal had missed a payment on government bonds.

President Obama’s folly in Libya along with France and Britain is starting to fall apart.  While the President visits Chile; France, Turkey, Italy and Britain fight over continuing the efforts.  The coalition of the unwilling led by the unknowing seems to be a headless monster.

NATO (North Atlantic Treaty Organization) ambassadors met yesterday but couldn’t agree if the 28 nation alliance should take over enforcement of the U.N. mandated no-fly zone.

President Obama said the U.S. would cede control of operations within days to NATO.  Germany and other European allies are unwilling for NATO to take the lead as the Libyan operation has nothing to do with the defense of Europe (the reason for NATO).  France doesn’t want NATO in charge, neither does Turkey.  Italy is threatening to take back control of airbases, used by aircraft enforcing the no-fly zone, if NATO is not coordinating the operations.

Obama says the U.S. wants no leadership role in continuing operations.  The United Kingdom’s Daily Mail says that Obama has a new nickname among allies as the “Great Vacillator.”  NATO participation requires unanimous agreement.

Obama expected NATO to take over operations at the meeting yesterday.  According to the Daily Mail, Obama has not yet talked to Britain Prime Minister David Cameron.  The paper notes this would have been unthinkable under George Bush, Tony Blair and Gordon Brown.  British air attacks had to be cancelled as agents on the ground in Libya report civilians and journalists are being used as ‘human shields’ around targets.  We predicted this Friday in No Fly Libya.

Russian Prime Minister Vladimir Putin did all he could to help the cause in Libya.  He said, “The resolution is flawed.  It allows everything.  It resembles medieval crusades.”  Obama, Secretary of State Clinton and U.N. Ambassador Susan Rice made a big deal out of the request of the Arab League.

AMR Moussa, the secretary-general of the Arab League said, “The Arab League was against aerial bombing in principle.”  Britain is pressuring Qatar and the United Arab Emirates to join the coalition to enforce the no fly zone.

President Obama sent a letter to Congress on Monday.  This letter was to formally notify members that the U.S. had begun military attacks in Libya.  Rank and file members are upset, and democrats had a conference call over the weekend.  The Wall Street Journal reports that Lou Fisher, formerly with the Congressional Research Service and an expert on war powers said the president’s letter does not satisfy the constitutional requirement that Congress approve military action.  He also objected to the president citing authorization by the U.N.  Mr. Fisher said, “It is impossible for the Congress to take its war powers and give it to the U.N.  Other than defensive actions---and there is no defensive actions here---this has to be done by Congress.”

The 1973 War Powers Act says the president must notify Congress within 48 hours of committing armed forces and places a 60 day time limit on such actions.  Rep. Dennis Kucinich (D-Ohio) asked why these actions by President Obama are not impeachable offenses.  According to Stars and Stripes, over 161 Tomahawk cruise missiles have been fired, and an F15E jet fighter crashed.  Cost estimates for the U.S. for the first week are in the neighborhood of $500 million dollars to one billion dollars.

Quote:
Anyone who has the power to make you believe absurdities has the power to make you do injustices.---Voltaire

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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