Saturday's Financial Times, front page, Global security fears over food and oil crisis. Pakistan can't pay its oil bill. Haiti's leader was toppled. Morocco needs a loan. China and other Asian countries cut fuel subsidies. Key developing regions are destabilizing. China, India, Indonesia, Vietnam and Malaysia can't bear the burden, according to one US official.Also see the FT article "West rethinks strategic threats."Citing food riots in 30 countries, the head of the World Food Programme states "only seven meals separate civilization from potential anarchy."
Aviation outlook bleak: an important read is the FT Lex column, Mile High Clubbed, also from Saturday. Forecasted: aviation industry losses through 2009 that dwarf those of 9/11. Check out the sobering chart. Director of Air France spells it out: the outlook for aviation is much worse than after 9/11. More than 20 airlines have gone under already. Some major airlines have grounded planes, suspended routes and closed bases, but this may not protect returns. Cutting costs is near impossible. A vicious circle: they are unprofitable even when jets are packed. Losses will spread to airports, caterers, retailers, etc.
Meanwhile, the US has passed through the "eye of the hurricane" regarding the banking crisis, and will be experiencing a new wave of problems.
