Last week DailyTech reported that a pair of undersea cables was cut leading to a loss of 50% to 60% of the bandwidth typically available in the Middle East.
Egyptian authorities originally reported two cables were cut by fishing boat anchors. CNN now reports that three cables serving the Middle East have been cut. The two cables last week include the FLAG Telecom FLAG Europe–Asia cable and SeaMeWe-4 on Wednesday January 30. On Friday February 1 it was announced that a third cable was severed leaving Dubai with no Internet connection.
As of Friday FLAG Telecom states it is unclear what caused the breakage of the undersea cables according to CNN. Egypt's Ministry of Communications reversed its statement since Friday, claiming now that no ships were present when the first two undersea cables were cut.
The ministry released a statement saying, “A marine transport committee investigated the traffic of ships in the area, 12 hours before and after the malfunction, where the cables are located to figure out the possibility of being cut by a passing vessel and found out there were no passing ships at that time.”
The Egyptian ministry also added that the area where the cables are located, which is about five miles from the port of Alexandria, is a restricted area and ships are not allowed in the area. No further speculation on what could have caused the three cables to be severed is available at this time. Officials estimate that full service in Egypt won’t be available for another ten days.
quote: Well, the Iranian Oil Bourse is going to change all that. Hence all the saber rattling against Iran. Luckily for them, Russia stepped up to bat and said 2 weeks ago that if anyone attacks Iran they will be immediately nuked.
quote: Russia gets more than 1/3 of its petroleum from Iran
quote: During 2006, Russia produced roughly 9.8 million bbl/d of liquids (not including oil products), consumed roughly 2.8 million bbl/d in liquids, and exported (in net) around 7 million bbl/d. According to official Russian statistics, roughly 4 million of this total is crude oil. Over 70 percent of Russian crude oil production is exported, while the remaining 30 percent is refined locally.
quote: Angola surpassed Saudi Arabia as China’s largest source of crude oil imports in February 2006. According to one industry report, in May 2006 China imported 750,000 bbl/d of crude oil from Angola, a 70 percent increase from the same month in 2005. According to the same report, between January and May 2006 China received 46 percent of its crude oil imports from the Middle East and 32 percent from Africa, while its neighbors in the Asia-Pacific region only supplied 5 percent of China’s imports.
quote: Balancing the two, we've experienced the most fantastic growth in the history of man with our fiat currencies.
quote: What matters to society is growth.
quote: If you think a gold-standard currency would remove inflation and deflation, a growing economy would be require deflation. If new gold is mined, that's insta-inflation. If gold is consumed via use in industrial processes, more deflation.
quote: People realize gold has no intrinsic value beyond a limited market for jewlery
quote: I smell something as well. Ah yes.....it's the dollar going up in smoke :)