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Besra receives orders revoking Cease Trade Orders


Auckland, New Zealand: 8 October 2018 – Besra Gold Inc. (the “Company”) is very pleased to announce that the securities regulators (the "Commissions") in the Provinces of Ontario, British Columbia, Alberta and Québec have granted a full revocation (the "Revocation") of the cease trade order imposed by each of them in late 2014 and early 2015 against the securities of the Company. The cease trade orders had been imposed by the Commissions for failure by the Company to file its required filings by the filing deadline as prescribed by applicable securities laws. The Company’s common shares were listed on the Toronto Stock Exchange ("TSX") under the symbol BEZ, but were delisted on 17 October 2014 for failure to maintain minimum TSX listing requirements.

The Company applied in or about January 2018 to each of the Commissions for a revocation of the cease trade orders. In September 2018, the Company filed, among other continuous disclosure documents, annual audited financial statements and related MD&A for the fiscal years ended 30 June 2017 and 2018 (the “Continuous Disclosure Documents”). Consistent with the provisions of National Policy 12-202 Revocation of Compliance-related Cease Trade Order, the Commissions exercised their discretion to not require the Company to file the annual financial reports and related MD&A for financial years ended 30 June 2014, 2015 and 2016, the interim reports for interim periods ending on or before 31 March 2018 and all related CEO and CFO certifications.

As a condition of revoking the Ontario cease trade order, the Ontario Securities Commission requested that the Company undertake not to complete a restructuring transaction, significant acquisition or reverse takeover of a business not located in Canada unless the Company first receives a receipt for a final prospectus in respect of such business. The Company has given such undertaking. The Company intends to hold a meeting of shareholders within 90 days of the date of the Revocation. Although the Company has been largely inactive, following the Revocation, the Company intends to reactivate itself. In the near term, the Company intends to seek financing in order to continue with exploration and development of its interest in the Bau Goldfield in Sarawak, East Malaysia and to seek to have its common shares relisted on a stock exchange.

The Continuous Disclosure Materials can be accessed on SEDAR under the Company's profile at www.sedar.com.

Directors and Officers of the Company

John Seton (CEO and Director) has extensive experience in the resources sector and corporate management. He is a former President of Olympus, former chairman of Summit Resources Ltd and past Chairman of the Vietnam/New Zealand Business Council. He also holds or has held a number of directorships in companies listed on the Australian Stock Exchange, Toronto Stock Exchange and New Zealand Stock Exchange.

John Glen (CFO) has extensive finance experience including originating, marketing, documenting and executing across a broad range of corporate advisory and investment banking mandates in resources and other sectors. John has been involved with project and development finance across many commodities including gold, base metals, bulk materials, diamonds and specialty metals for projects in varied jurisdictions from Australasia and Asia to the Americas and Africa. Prior to co-founding an investment banking firm, Prime Corporate Finance, John spent 13 years with Bankers Trust Australia Limited rising to become Vice President – Industry and Client Sector Group, where he was responsible for investment banking services in Western Australia.

Jocelyn Bennett (Director) is a senior partner and director in InCoR, Holdings PLC, a venture capital company and also a Director of Pangaea Holdings Limited, which holds a controlling interest in the Company. She is also a managing director of a fiduciary services company in Geneva, Switzerland. Ms. Bennett has a strong financial background and extensive accounting and corporate experience through her involvement with a number of private and public companies.

Jon Morda (Director) has over 20 years of experience in the mining industry, having served as Chief Financial Officer for several mineral exploration and gold producing companies including and until he retired in June 2011, Alamos Gold Inc. As a senior executive, Mr. Morda is highly adept in all areas of strategic corporate planning, operations, budgeting, accounting and taxation functions. Mr. Morda has been a Member of the Institute of Chartered Accountants of Ontario, Canada (Chartered Professional Accountants Ontario) since 1980. He currently is a director and a member of the audit committee of Kootenay Silver Inc. (TSX-V).

John Terry (Director) is a fully qualified UK trained accountant with extensive experience in audit, financial control and offshore financial services. He successfully set up and managed a regulated Financial Services Company in the Caribbean for over 12 years and has acted as a professional director and trustee for a large number of clients. Having left the Caribbean, John is currently based in the UK and provides consultancy services to private clients, Swiss and UK Companies.

Other than with respect to the Company and as disclosed above, no director or executive officer of the Company:

(a) is, as at the date hereof, or has been, within the 10 years before the date hereof, a director or executive officer of any corporation that, while that person was acting in such capacity:
(i) was the subject of a cease trade or similar order or an order that denied the relevant corporation access to any exemption under securities legislation for a period of more than 30 consecutive days;
(ii) was subject to an event that resulted, after the director or executive officer ceased to be a director or executive officer, in the corporation being the subject of a cease trade or similar order or an order that denied the relevant corporation access to any exemption under securities legislation, for a period of more than 30 consecutive days;
(iii) or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold its assets; or
(b) has, within the 10 years before the date hereof, become bankrupt, made a proposal under any legislation relating to the bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, officer or shareholder.
No director or executive officer of the Company has been subject to: (a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or (b) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.
Besra CEO John Seton said, “The revocation of these CTOs marks the conclusion of a lengthy and arduous process which we are very pleased to put behind us. We now look forward to taking steps to recapitalise the company and having Besra equities trading again on a recognised bourse.”

Copies of the orders granting the revocation are available online.

… ends …

BEZ: CDN Cease Trade Order:

http://cto-iov.csa-acvm.ca/SearchArticles.asp?Instance=101&Form=1&Attr3=1&Attr1=1&Attr1=2&Attr1=3&Attr1=4&Attr1=5&AttrSet4=1

Besra market update: TSX delisting; financing delays; financial statements
Toronto, Canada: 17 September 2014 – Besra (TSX: BEZ) (ASX: BEZ) (Frankfurt: OP6) announces that the Toronto Stock Exchange (TSX) has determined to delist the common shares of the Company at the close of business on 17 October 2014 for failure to meet the continued listing requirements of the TSX.

The predominant cause for the TSX’s determination is the failure to date of the Tradora Limited financings to close, including the US$2.25 million that was expected to be advanced pursuant to a convertible note that was the subject of a press release issued by the Company on 22 August 2014. Besra has received an undertaking from Tradora that it will provide the agreed funding to Besra. Should the current round of funding be secured prior to delisting, and TSX listing requirements are able to be met, Besra will seek to have its listing reinstated. In the meantime, Besra is pursuing alternative financing arrangements.

Negotiations continue in Vietnam to have coercive measures lifted which will allow a return to production. With the welcome assistance of the Canadian, Australian and New Zealand Embassies, the issue has been elevated to the Office of the Prime Minister and the company is awaiting formal notice of the outcome of deliberations there.

Besra also advises that it will not be able to file its annual audited financial statements and related management’s discussion & analysis by the filing deadline of 28 September 2014. The delays experienced in closing the financings referred to above have resulted in insufficient funds to allow for the independent audit by Ernst & Young to commence. Besra cannot give a reliable timeframe for when it will be in position to rectify its filings, as it is dependent on the closure of the current round of funding, which is taking significantly longer than expected.

There is no assurance that the current financing will be concluded upon the terms disclosed in previous press releases of the Company or at all.

Finally some positive news from this beleaguered PM company.
Today : Monday 28 April 2014

Besra Celebrates Repeal of Export Tax Ruling in Vietnam

TORONTO, ONTARIO--(Marketwired - Apr 28, 2014) - Besra (TSX:BEZ)(ASX:BEZ)(FRANKFURT:OP6) has received formal notification from the Vietnam Ministry of Finance that export tax assessments totaling $12 million against Bong Mieu Gold Mining Company and Phuoc Son Gold Company have been repealed.

The Ministry of Finance has provided the Company copies of the final resolutions on Besra's second complaint against the General Department of Customs. Decision 754/QÐ-BTC, relating to Bong Mieu Gold Mining Company and Decision 755/QÐ-BTC relating to Phuoc Son Gold Company repeal the tax claim applied for goods exported and imported by Besra's operating companies in Vietnam.

Besra CEO John Seton said, "We are of course delighted by this news that our position on this assessment has been vindicated. Besra has always complied with every aspect of the laws and regulations of Vietnam and we have worked hard to prove this to the authorities in relation to this matter.

"This tax assessment has been hanging over us for more than a year and has caused the company significant hardship. Our ability to import supplies and equipment was suspended for a period, as was our ability to export gold. Additionally, the US$12 million negative assessment kept investors away and limited our access to credit facilities. With the ruling now behind us, we can now rebuild our production in Vietnam.

"With this decision having been considered at all levels of government, including local tax authorities, the Ministry of Finance and the Prime Minister's office, we are heartened that Besra and its operations at Phuoc Son and Bong Mieu in central Vietnam continue to have the full support of the government."

"Whilst this ruling closes an exceptionally difficult 12 months for the company, there is still much work to be done to repair the damage it has caused. Coupled with the severe weather events of November 2013 that resulted in suspension of operations at Bong Mieu, we can safely put 2013 down as our most difficult year to date. With the reversal of the export tax ruling, production at Bong Mieu re-commencing from 1 May, and the persistence and hard work of our team in Vietnam, we are already seeing improvements in Vietnam operations," said Seton.
Besra Gold Inc
John A G Seton
Chief Executive Officer

Besra - www.besra.com

2 year chart shows they have a lot to do to rebuild confidence.
A broker told me this one was not one to worry about going forward, but my concern is still prevalent, and I wish they'd get their act together!

http://www.otcmarkets.com/stock/OLYMF/chart

OYM latest PR's and related industry articles are all listed on this site, over to the right side of the screen.

Starting to look much more interesting now here.

http://www.google.ca/finance?cid=689435

The Golden East
Olympus Pacific Expands in SE Asia

By Greg Klein

It was 1996. While struggling to revive an inactive Vancouver Stock Exchange-listed company, David Seton encountered two formidable forces—legendary mining promoter Robert Friedland and the Vietnamese government. Now Friedland is the billionaire CEO of Ivanhoe TSX:IVN, Vietnam has two additional gold mines, and the once-inactive company, Olympus Pacific Minerals Inc TSX:OYM, runs those mines as it advances another Southeast Asian project to feasibility.

“We bought the first property in central Vietnam from Robert Friedland when he was Indochina Goldfields,” says James Hamilton, VP of Investor Relations for Olympus Pacific. “When we took over, we didn’t realize what he’d been telling the Vietnamese. We walked in there and only had a small resource. But they expected a full gold factory to be built right away. We said, ‘You can’t do that, you have to do all this drilling and go into feasibility.’ They said, ‘We don’t care, Friedland told us we’re going to get a gold-processing plant.’ We were kind of coerced into building a plant. It was very premature to what we’d planned to do. But it did pay off because we got access to a second property where we’ve just commissioned a state-of-the-art facility. It’s a fairly high-grade deposit and it’s a real cracker of a plant. It’s been in commission since July and we’re already over 90% recoveries.”

Read the rest of this article: http://bit.ly/oeoIxM

Sure has been a lag from the gold miners share price positions in relation to the spot price of Gold as we hover around $1,600 an ounce.

A lot depends for the price of gold, obviously, on the situations in Europe, the USA, and Japan with their astronomic debt loads.

Since the crowd of traders in the equity markets seem to prefer to ignore the above in favor of chasing stocks, it's hard to say what will transpire price-wise in Gold & Silver when those governments and the Euro countries most likely 'kick the can' down the road and let debt pile upon debt, even as traders seek 'winners' to make money off of in their trades.

As long as equity followers focus on dividend paying stocks and those companies with good earnings and chances of positive growth percentages, they don't seem to care about the underlying financial security of the nation's carrying the most debt.

Even if the USA debt limit is raised again, the result is still only more debt going forward. Sooner or later, the matter will inevitably be addressed when sovereign debt ratings are threatened and the overall balances of financial power are readjusted.

May 07, 2011 09:38 ET

Olympus Closes the Remaining Private Placement Financing of US$14.6 Million of Four-Year 8% Unsecured Convertible Notes and Warrants


TORONTO, ONTARIO--(Marketwire - May 7, 2011) - Olympus Pacific Minerals Inc. ("Olympus" or the "Company") (TSX:OYM)(ASX:OYM)(OTCBB:OLYMF)(FRANKFURT:OP6) announces that it has closed the remaining private placement financing of US$14.6 million of a four-year 8% unsecured and redeemable notes convertible at US$0.51 per common share (the "Notes") and including warrants exercisable to acquire common shares at CAD$0.55 based on a one share and half warrant equivalent structure (see details below). The conversion of the Notes (and the exercise of the warrants) into shares is subject to shareholder approval

A similar private placement of units consisting of 8% unsecured and redeemable notes convertible at CAD$0.50 per common share and including warrants exercisable to acquire common shares at CAD$0.55, with gross proceeds of CAD$15 million, closed May 5, 2011. (See Olympus Press Release dated May 5, 2011)

Euro Pacific Capital Inc. acted as the exclusive sole placement agent on both private placements. Demand for the Notes proved to be extremely strong particularly in Germany and the United States.

Proceeds of both private placements will provide Olympus with the necessary funds to advance its development, exploration, and acquisition plans in Vietnam, Malaysia, and the Philippines for the foreseeable future.

Olympus issued the Notes instead of pure equity as it enables the Company to complete important exploration and development work on three core projects, allowing the potential for shareholder value to be created and to minimize shareholder dilution.

Detail

The private placement is comprised of 14.6 million units (the "Units"), with each Unit consisting of one Note and two common share purchase warrants, one warrant (subject to shareholder approval) immediately exercisable (the "Vested Warrant") and the second warrant (subject to shareholder approval) (the "Vesting Warrant") only exercisable upon an early redemption of the Notes. Each Note was issued in the principal amount of US$1.00 and, which subject to shareholder approval is convertible at a rate of US$0.51 per share into common shares of the Company, a Vested Warrant for the purchase of 0.9804 common shares of the Company at a price of CAD$0.55 per share until the Maturity Date, and a Vesting Warrant for the purchase of 1.9608 common shares of the Company at a price of CAD$0.50 per share until the Maturity Date, exercisable only in the event of an early redemption of the Note. The warrants may, if and to the extent such right is acceptable to the ASX as being in accordance with the ASX Listing Rules, also be exercised on a cashless or net exercise basis at the option of the holder. The Notes mature on the fourth anniversary of the closing date (the "Maturity Date") and bear interest at 8% per annum payable semi-annually on November 30 and May 31. The net proceeds to the Company are approximately US$13.2 million after deduction of fees and expenses.

The securities sold in the offering have not been registered under the Securities Act of 1933, or any state securities laws, and have been sold in a private transaction under Regulation D. Unless the securities are registered, they may not be re-offered or re-sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws.

The offering is subject to the receipt of all regulatory approvals including the approval of the Toronto Stock Exchange, certain shareholder approvals under the ASX Listing Rules and other customary closing conditions.

Olympus Pacific Minerals Inc. is a diversified SE Asia gold production and exploration company with four core properties in Vietnam, East Malaysia, and the northern Philippines. The Company is expanding current gold production and exploring for major discoveries in an area of the world renown for its rich mineral deposits.

OLYMPUS PACIFIC MINERALS INC.

David A. Seton

Chairman and Chief Executive Officer

About time...lol. With gold moving up steadily, it had to reciprocate with the same trajectory at some point.

Interesting climb here today... decent volume too.

Off topic folks lol



CAK
PTEK
WEBM
CRYP



lol....

Based this purchase on info from a solid research team.

As stated, they now being able to avoid that export tax was key to attracting more attention again with current gold prices what they are over $1,400. Asked Rig and Jag for input here, but Jag wasn't interested and Rig is probably busy with his own picks.

Volume coming in and price is drifting higher.

Finding the local refiner to avoid the 10% export tax was the key issue they resolved.

Interesting find. I bought some this morning to keep track. Digging in...

PR 02.24.11
Olympus Prepares To Commission Its Second Gold Plant At Phuoc Son
24-Feb-2011

Toronto, February 24, 2011 – Olympus Pacific Minerals Inc. (TSX & ASX: OYM, OTCBB: OLYMF, and Frankfurt: OP6) (the "Company" or "Olympus")

Olympus’ CEO David Seton is pleased to announce that the Company has now entered the final phases before the full commissioning of the Phuoc Son Gold Plant. Underground mining recommenced three days ago in preparation for start up with ore being stockpiled nearby for introduction to the new circuit once the plant has passed full inspection. All proprietary equipment has been installed with dry commissioning starting the week of February 28th, 2011. During these phases, components of the processing circuit will be individually tested starting with the crushing circuit and ball mills. Upon successful completion of these circuit tests, the plant will run on water with ore being introduced a week later assuming there is minimal leakage. It is planned for gold to be produced through the gravity circuit within three days of the ore being introduced to the plant prior to the end of March. David Seton, CEO says, we are pleased to be in the final stages of delivering Vietnam’s most environmentally sound gold plant, utilizing the latest technology available. This is a key development in the Company’s ongoing plan to expand its production in both Vietnam and Malaysia.

PR. 02.22.11
Olympus Signs Refining Agreement With Vietnamese Firm
22-Feb-2011

Toronto, February 22, 2011 – Olympus Pacific Minerals Inc. (TSX & ASX: OYM, OTCBB: OLYMF, and Frankfurt: OP6) (the "Company" or "Olympus").

Olympus’ CEO David Seton is pleased to announce that the Company has entered a formal agreement with a local Vietnamese firm to refine gold dore´ to 99.99% Au. Olympus’ two Vietnamese Joint Ventures expect to export their first shipments of 99.99% Au within the week. Benefits from refining in country are twofold; the value-adding process is now carried out completely in Vietnam and it allows the Company to export gold without incurring the 10% export tax.

02.09.11 PR
Avoiding the 10% excise tax on unrefined gold exports is their current issue to resolve. They are ready to put in $100 million in development, but will now go step by step and as stated in the PR,and are working to see if the local refiner can do the trick to get appropriate refined purity of their gold, for export to avoid the tax.

"The ability of Olympus Pacific to ship gold from Vietnam had provided a success story to contrast with the experiences of other foreign miners, such as Tiberon Minerals Ltd., which have failed to begin production. Olympus Pacific said last month it has found a Vietnamese refiner which should allow it to export without the tax."

"Olympus Pacific said in a Jan. 28 statement that it would continue with sampling to assess its local refiner’s ability to deliver the purity required for export without the 10 percent tax."

http://www.bloomberg.com/news/2011-02-09/olympus-pacific-plans-to-revive-vietnam-gold-mine-investment.html

We need a new moderator here. Anyone still following this company?

where is spellbound ????? does anyone know !!

I'd like to know also. Last I saw of Mary was over on the BWNR board.

Seems Spellbound fell off the edge of the world....wonder what became of Mary too. GLTY

Merry Christmas, all:)

Spellbound,


Hope all is well....

chevy56

World War Three Anybody?

By James Howard Kunstler

on October 5, 2009 7:39 AM

http://kunstler.com/blog/2009/10/world-war-three-anybody.html#more

When Alan Greenspan predicted three percent economic growth showing up in the reported figures for the third quarter of 2009, did he mean executive compensation packages? Maybe the lesson here is: don't ask a crackhead to predict the future supply of crack. Greenspan's greatest success may be to drive economics into such disrepute that it will be cut loose from the universities and only be taught by mail order or internet subscription from the same outfits that offer PhD's in astrology. That is, before the universities themselves go broke.

The predicament that the USA finds itself will not be "solved" at the scale of operation that we're accustomed to, and we should just stop wasting precious time and dwindling resources in the idle hope that it will be. The failure to recognize this dynamic is the most impressive part of the meltdown. The only thing that the federal government is likely to prove in the process is the ineffectiveness of its actions as applied to any of the raging current problems from the killing burden of hyper-debt to the brushfires of geopolitics. Congress will only make the health care system more complex. Both congress and President Obama will do everything possible to keep housing prices unaffordable -- in a quixotic effort to protect the collateral of the big banks. Capital will continue to vanish in the black hole of default.

Something's got to give in the remaining three months of 2009. My guess is that attention will shift overseas for a while. This will not be due, as many probably think, to a cynical effort by the government to divert attention from the financial fiasco, but because the intrinsic tensions in the Middle East are reaching the snapping point. Iran is being called out on its nuclear program. If, from the start, it had just maintained the need for electric generating power in the face of dwindling fossil fuel reserves, they might have gone unchallenged. As it happened, though, the elected leader of Iran made too many intemperate remarks about wiping other nations off the face of the earth, and this has only prompted the leaders of other nations to take his remarks at face value and presume that Iran's nuclear program was devoted to armaments, not electric power generation.

So, now the USA has picked up the gauntlet. If Iran doesn't act to demonstrate the de-activation of its bomb-making capacity, then the USA will try to impose sanctions depriving Iran of necessary imported supplies. (Iran actually imports gasoline, due to inadequate refineries.) For sanctions to be effective, support will be required by other nations, including Iran's chief gasoline supplier, China. What a delicate calculus this will be! I rather imagine that China would not like to see the Middle East blow up. I'm not so sure about the nations of the Middle East though, or at least major parties in certain nations. The rulers of Saudi Arabia would probably enjoy seeing Iran get into big trouble, since Iran is Saudi Arabia's most active antagonist, working tirelessly to destabilize the Kingdom. Al Qaeda interests dispersed in many nations would certainly cheer any mayhem. The Taliban would love anything that takes the spotlight off them in Afghanistan. The Russians are conflicted between the wish to enhance their own leverage in world affairs and their need to discipline Islamic maniacs along their own borders. Europe is probably scared to death of anything that might threaten their energy lifeline. Pakistan is too tormented to have a position, but its radical Islamist factions are probably on the side of disorder -- as the best remedy for the status quo. If any of that spills over on India, as in the Mumbai bombing, then that flashpoint could turn to conflagration very quickly. We forget about Turkey, which was the hegemonic player in the region for centuries until its swift decline after 1914, but it has potent military capability and very mixed feelings about the the Jihad to ruin the West (since it is partly of the West). And finally there is Israel, the object of Iran's intemperate public statements.

This is a dangerous situation. I'm not so sure that Israel could launch an effective attack on Iran's nuclear infrastructure, but it might try anyway, especially if a US-backed sanctions effort fails to coalesce quickly. I'm not sure Israel would seek permission from the US to do this, though the US would certainly be tasked with defending the shipping lanes in the Persian Gulf. Iran might succeed in sinking more than a couple of US ships-of-the-line with sunburn missles and other toys, and this would lead to the bigger danger of oil supplies being choked off to the rest of the world. The US air response would be impressive, but possibly not effective against hardened targets. The leaders of Iran might exult even if the Iranian people were swept into a maelstrom. I imagine that what followed would be a very extravagant military frenzy amounting to World War Three, with European air forces and navies dragged in, with Hezbollah and Syria striking back at Israel, India and Pakistan possibly incinerating each other, and mayhem galore among the bystanders in Iraq, Egypt, Saudi Arabia, and Afghanistan.

There could easily be internal mischief in the UK, France, and Germany from angry immigrant populations, and "sleepers" could work some overdue hoodoo in the USA. I don't know what Turkey would do, but it could be the biggest beneficiary of a bad regional meltdown, providing the only effective governance what remains in the region. China and Japan would probably just gape at the spectacle in wonder and nausea from the sidelines as they saw their energy supplies for years-to-come go up in flames.

The G-20 nations would be crippled as global oil supplies were choked off indefinitely. And if anyone -- Iran, or its friends inside the Kingdom -- managed to pull off a stunt such as blowing up the Ras Tanura oil terminal -- then a darkness will spread across places that were used to being lighted and they will stay dark a long time.

I don't know if any of this will come to pass, but as I said, tensions have reached a breaking point, including the greater tensions of history, which seem to require periodic release no matter how poignant the Pete Seegar songs are. It is perhaps, just another prime symptom of "overshoot," the world's way of shedding some of the toxic organisms that are making it so unhappy -- Gaia in a really bad mood.

If nothing develops along these lines on the geopolitical scene, the USA is still stuck in its predicament of trying desperately to maintain an overscaled living arrangement, with no coherent public discussion of downscaling, re-scaling, or re-arranging things. My guess is that this kind of restructuring only occurs when all other options have been exhausted. The last time the USA found itself in an intractable economic morass, World War Two came along and it made things all better here (after considerable sacrifice for us and catastrophe elsewhere). After World War Two, we ruled the world for a couple of generations. The outcome of World War Three would not be so favorable for us. At the very least, it would leave us attempting to run things on about one-quarter of the oil we're used to. That does not suggest a seamless transition between how we behave now and how the future will require us to behave differently.

Spain sliding into full-blown deprsseion.


Dear Free-Market Thinker,

To view the Monday, September 28th, 2009 edition of the Daily Bell, click here now.

Spain tips into depression

Spain is sliding into a full-blown economic depression with unemployment approaching levels not seen since the Second Republic of the 1930s and little chance of recovery until well into the next decade, according to a clutch of reports over recent days. The Madrid research group RR de Acuña & Asociados said the collapse of Spain's building industry will cause the economy to contract for the next three years, with a peak to trough loss of over 11% of GDP. The grim forecast is starkly at odds with claims by premier Jose Luis Zapatero (pictured left), who still says Spain's recession will be milder than elsewhere in Europe. RR de Acuña said the overhang of unsold properties on the market, or still being built, has reached 1,623,000 . This dwarfs annual demand of 218,000, and will take six or seven years to clear. The group said Spain's unemployment will peak at around 25%, comparable to the worst chapter of the Great Depression. - Telegraph

Dominant Social Theme: More carnage?

Free-Market Analysis: We think that the problems with Spain do presage problems going on elsewhere in the world. We think, eventually, they will visit the United States as well. When we write "eventually" what we mean is that things will get considerably worse. We believe this because the Western world is doing exactly the opposite of what it should do to resolve what is basically a paper money and leveraged-capital crisis.

The Labor Day Blues

By James Howard Kunstler

on September 7, 2009 6:55 AM

http://kunstler.com/blog/2009/09/-one-national-moment-of-nausea.html#more

One national moment-of-nausea this Labor Day weekend struck Sunday morning, when CNN's John King led off his 10 a.m. State of the Union show with a valentine to ABC's Diane Sawyer, on her becoming anchor of that network's evening news. (This was the most important news of the week???) The old legacy networks have taken on the role of dishing out reassurance to an anxious and insecure public as job number one, and the subtext of the Sawyer lede was that a Mommy figure would soon be in place to soothe the multitudes even as the nation free-falls into bankruptcy and disorder. This is supposed to be a counterpoint to the chorus of smug, braying rabble-rousers who inflame the crowds on Fox News and MSNBC, and CNBC -- the Glen Becks and Keith Olbermans and Dennis Kneales -- who work the anger regions of the brain.

The inherent conflicts arise from a nation that simply cannot bring itself to try getting its house in order. Instead of adult leadership, we prefer good parent / bad parent therapy -- a psychodrama of alternating messages of reassurance and punishment that provides distraction from problems and conundrums too horrible to face. One unfortunate result is the evaporating legitimacy of anyone or anything in authority, and that is extremely dangerous at a time like this because it creates the perfect opportunity for the rise of a corn-pone Hitler who will beat a path straight into a national ordeal-by-fire, and make everybody feel better by telling them clearly what to do.

President Obama rolls out his much-awaited message on health care reform to a joint session of congress this week after a summer of chaotic and often mendacious debate. The system now running is so unjust and ruinous that a citizenry unmedicated by psychotropic drugs would have burned down the insurers by now (and perhaps torched their doctors' BMWs). As a tactical matter, the best Mr. Obama can do about the "public option" is to endorse it while kicking the can down the road, since the stark insolvency of the US treasury obviates any real ability to make it happen.

But I believe the public would be greatly appeased (and helped!) by legislation that achieved a few simple ends: 1.) clearly and absolutely outlaw insurers canceling policy contracts under any circumstances. 2.) outlaw denial-of-care tactics. 3.) outlaw campaign contributions by lobbyists, period. If Obama can present these items front-and-center, he can then point to congress and tell the nation that they can hold them responsible for their plight. Other urgent health care reforms could be subject to regulation rather than legislation. For example, medical care is not "competitive" in any meaningful sense; people with severe problems and illnesses are not comparable to "consumers" comparison shopping for flat-screen TVs. The truth is, they are hostages to their local hospitals and the specialists they are referred to. The ridiculous prices charged for everything from aspirins to tests to cotton swabs to time occupying a hospital room ought to be subject to review, and procedures can be set up to accomplish this, with severe fines for abusers. Personally, I'd charge the FCC with returning to its policy of banning drug advertising on TV.

Polls are reporting a steep slide in President Obama's approval ratings, especially among white voters. I doubt that this is about the health care debate, which obviously remains unresolved at the time the polls were taken. I think it is about Mr. Obama's shoveling of huge sums into Wall Street, and the unabated obscene money-grubbing by the executives there -- while millions of ordinary people get thrown out of their houses, lose jobs that they'll never get back, and slip-slide permanently out of the middle class. His relations with Wall Street are destroying his legitimacy. His failure to demonstrably clean house at the Securities and Exchange Commission and other regulators, or to direct the Justice Department to investigate and prosecute misdeeds stemming from the swindles and frauds in securitized debt, make him look like a stooge to the bankers.

I personally fault the president for putting no effort into the larger necessary tasks of leading a transition away from suburbanization, failing to promote public transit rather than continued car-dependency, not preparing for re-localized farming, and continuing the unaffordable racket of imperial military over-reach in a mode indistinguishable from G. W. Bush.

Whatever the politics of the moment may be, national attitudes are surely changing. A psychology of hardship is overtaking even the bread-and-circus blandishments of the Cheez Doodle / infotainment / professional sports matrix of idiocy that the sociopathic corporate axis-of-evil operates to take advantage of ordinary human weakness. Soon, the public will lack the resources even for these tawdry comforts, and God knows what they'll turn to for solace then.

A large part of Mr. Obama's appeal as a candidate last year had to with presenting himself as an intelligent adult -- as opposed to a parent figure (or a crazy old uncle in the case of John McCain). But so far, apart from his personal charm and good looks, his adult persona is that of an actuary -- someone who can read charts, parse figures, and report them down the line for other people to draw conclusions . What he lacks at the moment is the very thing that history might foist on him: a sense that life is tragic and history is merciless and that sometimes we have to do the hard things that times require of us.