Daily Digest

Daily Digest 11/8 - Extreme Poverty At Record Levels, Billions Moved On "Bank Transfer Day", A Slight Chance Of Meltdown

Tuesday, November 8, 2011, 11:43 AM
  • Why Cash Is A Great Place To Be Right Now
  • Extreme Poverty Is Now At Record Levels – 19 Statistics About The Poor That Will Absolutely Astound You
  • What you wanted to know about Greece’s debt crisis but were afraid to ask
  • ECRI Doubles Down on Recession Call; Points to "Contagion of Forward Leading Indicators"
  • Marc Faber: They Can Postpone the Endgame For Five or Ten Years
  • Big Banks Lose Billions on ‘Bank Transfer Day’ – But This Might Be in Their Favor
  • Hit With Big Withdrawals, Fed Sells Assets, Borrows Cash
  • Time to Worry: World Oil Production Finishes Six Years of No Growth
  • Canadian natural resource minister “cautiously optimistic” Keystone pipeline will be approved
  • A Slight Chance of Meltdown
  • UK Fracking Firm Admits They Are Causing Earthquakes
  • Rift In Antarctic Glacier To Create Gigantic Iceberg

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

Why Cash Is A Great Place To Be Right Now (Dana T.)

The way the modern banking system works is that banks use their depositors’ funds to make loans or purchase securities. Regulators require them to hold a certain amount of capital against these “assets,” and the amount is known as the “Capital Adequacy Ratio.”

The idea is to ensure that the bank will still have money on hand if its asset portfolio goes bad.

Extreme Poverty Is Now At Record Levels – 19 Statistics About The Poor That Will Absolutely Astound You (Mike K.)

Tonight, there are more than 20 million Americans that are living in extreme poverty. This number increases a little bit more every single day. The following statistics that were mentioned in an article in The Daily Mail should be very sobering for all of us....

What you wanted to know about Greece’s debt crisis but were afraid to ask (Jeff B.)

So what’s the problem with Greece? In five words: Debt, debt and more debt. Essentially, it’s a tragic tale of a nation’s binge borrowing and spending. From the time Greece joined the eurozone in 2002 until the global financial shock of 2008, the country went on a maniac borrowing spree, which it used to spend wildly on all sorts of things, including building expensive stadiums and other sports facilities for the 2004 Athens Olympics (which incidentally went way over budget).

ECRI Doubles Down on Recession Call; Points to "Contagion of Forward Leading Indicators" (adam)

Two months ago, the ECRI made a very definitive and unwavering recession call going even so far to state that "there’s nothing that policy makers can do to head it off." Since then, the markets have rallied strongly on the heels of recent positive economic data, leading many in the mainstream financial press to accept that the U.S. has narrowly averted an impending recession and will begin to see growth. Not so, says Lakshman Achuthan, ECRI's chief economist and spokesman; citing under no uncertain terms that "nothing has changed our view."

Marc Faber: They Can Postpone the Endgame For Five or Ten Years (June C.)

don’t know what other people think, but what I think will happen eventually – and there are so many contradictory statements coming out that nobody really knows – but eventually the same will happen as in the United States. The ECB (European Central Bank) will print money one way or the other. And, the debts that essentially should be written down to realistic value will continue to be carried on the books of banks at unrealistic values. So, the end crisis will be postponed until the sovereigns go bankrupt.

Big Banks Lose Billions on ‘Bank Transfer Day’ – But This Might Be in Their Favor (SafeWrite)

Because some of the biggest banks are moving upward on the market and that closing some of the accounts could actually save them money, in an odd way it would seem that everyone benefited from "Bank Transfer Day."

The protesters felt a sense of accomplishment and some banks were able to offload thousands of reportedly low-balance, non-profitable accounts.

Hit With Big Withdrawals, Fed Sells Assets, Borrows Cash (Mike K.)

The Fed was apparently forced to take extraordinary measures to fund these withdrawals. These included the outright sale of nearly $24 billion in its Treasury note and bond holdings from the System Open Market Account. As a result, the Fed's System Open Market Account (SOMA) fell to $2.611 trillion, some $43 billion below the Fed's stated target of $2.654 trillion. Prior to this week, it had not strayed from by more than $7 billion since June. The Fed's action was not only a direct contradiction of its stated policy, but it was done without warning or explanation. It ran counter to Bernanke's penchant for telegraphing every important move the Fed makes so that the banking/speculating organizations can front-run it.

Time to Worry: World Oil Production Finishes Six Years of No Growth (Jon R.)

Beyond this, the world went through two recessions, one in 1980 and the second in 1981-82 which turned out to be the worst since World War II (until the current one). That curbed oil demand as economic activity sank. All the while, large oil discoveries in Alaska and the North Sea and furious drilling elsewhere produced a glut of capacity that sent prices from a high near $40 a barrel in early 1981 to about $16 a barrel six years later. As it turned out, all of these factors combined to keep world oil production below its 1980 peak until 1988.

Canadian natural resource minister “cautiously optimistic” Keystone pipeline will be approved (ScubaRoo)

The proposed pipeline by Alberta-based TransCanada would carry oil derived from the oil sands in Alberta, Canada, to refineries in Houston and Port Arthur, Texas. The underground pipeline would carry an estimated 700,000 barrels of oil a day, doubling the capacity of an existing pipeline from Canada.

A Slight Chance of Meltdown (jdargis)

It often takes a disaster, or the threat of one, anyway, to get people thinking about their power—otherwise they just plug in or charge it overnight, without giving a second thought to where those electrons are born. The last time New Yorkers were focused on Indian Point was in the fear-drenched aftermath of September 11. (You may recall Rudy Giuliani, in some of his first work at Giuliani Partners, vouching for Indian Point’s security with his then-associate Bernie Kerik.) Well, Giuliani’s back—starring in new advertisements, paid for by Entergy, the Louisiana-based company that owns Indian Point, in which he stands before a green screen and accentuates the energy needs of “the greatest city on Earth.” “You have the right to know the facts about this important source of electricity,” he tells us. “All of us have a right to know why Indian Point is right for New York.”

UK Fracking Firm Admits They Are Causing Earthquakes (Jason C.)

"The hydraulic fracturing of Cuadrilla’s Preese Hall-1 well did trigger a number of minor seismic events."

"The seismic events were due to an unusual combination of geology at the well site coupled with the pressure exerted by water injection as part of operations."

Rift In Antarctic Glacier To Create Gigantic Iceberg (Jason C.)

The rift is widening at a rate of two metres a day, said NASA project scientist Michael Studinger. When the ice breaks apart, it will produce an iceberg more than 880 square kilometres, said Mr Studinger, who is part of the US space agency's IceBridge project. But the process is not a result of global warming, he said.

Article suggestions for the Daily Digest can be sent to dd@PeakProsperity.com. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

7 Comments

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saxplayer00o1
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Italy Nears Tipping Point as Its Bond Yields Climb

"The Jefferson County Commission will consider filing the nation's biggest municipal bankruptcy today, according to a resolution approved by a committee.

The Alabama county's leaders also may vote to approve a settlement with holders of $3.14 billion in debt or to continue negotiations, according to a resolution approved yesterday that the full commission will consider at 9 a.m. local time."

"With Italian bond yields surging higher, analysts said Italy is at the brink of being unable to afford to borrow in the public markets.

Less than two weeks after European leaders unveiled an agreement that was designed to bolster confidence in the region, the yield on Italy's 10-year debt drew close to the 7% mark, a line in the sand of both practical and psychological importance to the market.

Psychologically, 7% has become a beacon due to the fact that Greece, Portugal and Ireland each sought bailouts soon after their debt reached these levels. While analysts said it is too simplistic to say that Italy will be forced to ask for support if its 10-year debt yields 7%, they said the recent selloff is taking the country to the tipping point.

"I don't know if 7% is the upper limit, or if it's 6.9% or 7.25%, but I do know [Italy] can't go on for very long having these kinds of bond yields," said Gabriel Stein, director at Lombard Street Research in London."

Other headlines:

  1. Berlusconi ally calls on PM to resign as key vote looms
  2. Third Berlusconi ally jumps ship
  3. Japan's National Debt to Exceed 1 Quadrillion Yen by Next March
  4. Japan Buys 10% Of Europe Bonds As Debt Crisis Deepens
  5. Eurogroup aims to deploy bigger bailout fund in Dec
  6. State jobless fund deficit tops $10 billion (California)
  7. Europe Banks Selling Sovereign Bonds May Worsen Crisis
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rjs
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Oklahoma earthquakes raise more questions about hydrofracking

Oklahoma earthquakes raise more questions about hydrofracking, injection wells - Another swarm of earthquakes in an unusual part of the country has generated aftershocks of debate about whether the oil and gas drilling process called hydraulic fracturing, or fracking, is to blame. The early returns in Oklahoma, where a 5.6-magnitude earthquake near Sparks damaged buildings and rattled nerves on Saturday, are inconclusive. Much as scientists said there just isn’t enough evidence to link earthquakes this summer in Virginia and Colorado to fracking, officials over the weekend declined to connect the Oklahoma quake to the common drilling practice.The process of fracking involves the high-pressure injection of water, sand and chemicals into oil and gas wells to break up tight rock and sand and free up more hydrocarbons. The fracking fluids are then stored for later use, recycled or disposed of in injection wells.  According to the Associated Press, there are 181 such injection wells in the vicinity of Saturday’s Oklahoma quake and Sunday’s aftershocks. AP also reported Oklahoma typically only experienced about 50 earthquakes a year until 2009 when that number spiked dramatically. Last year there were 1,047 small quakes in the area, prompting the installation of seismographs. The U.S. Geological Survey (USGS) is now seeking more data on the weekend quakes in Oklahoma, a state whose panhandle region borders southeastern Colorado, where earthquakes this summer shook area residents in an area with natural gas drilling.

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Stan Robertson
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rjs wrote: Oklahoma

rjs wrote:

Oklahoma earthquakes raise more questions about hydrofracking, injection wells - Another swarm of earthquakes in an unusual part of the country has generated aftershocks of debate about whether the oil and gas drilling process called hydraulic fracturing, or fracking, is to blame. The early returns in Oklahoma, where a 5.6-magnitude earthquake near Sparks damaged buildings and rattled nerves on Saturday, are inconclusive. Much as scientists said there just isn’t enough evidence to link earthquakes this summer in Virginia and Colorado to fracking, officials over the weekend declined to connect the Oklahoma quake to the common drilling practice.The process of fracking involves the high-pressure injection of water, sand and chemicals into oil and gas wells to break up tight rock and sand and free up more hydrocarbons. The fracking fluids are then stored for later use, recycled or disposed of in injection wells.  According to the Associated Press, there are 181 such injection wells in the vicinity of Saturday’s Oklahoma quake and Sunday’s aftershocks. AP also reported Oklahoma typically only experienced about 50 earthquakes a year until 2009 when that number spiked dramatically. Last year there were 1,047 small quakes in the area, prompting the installation of seismographs. The U.S. Geological Survey (USGS) is now seeking more data on the weekend quakes in Oklahoma, a state whose panhandle region borders southeastern Colorado, where earthquakes this summer shook area residents in an area with natural gas drilling.

The depths of the epicenters of the recent Oklahoma earthquakes are many thousands of feet below any of the formations that are subjected top fracking. The injection wells are for the disposal of salt water produced by oil wells in the same area. Thus they do not change the overburden or liquids content of the region. About 80,000 wells in Oklahoma have been fracked in the last fifty years. Microquakes below magntude 2 are not particularly rare, but also are not felt. There is no basis in physics or geology for fearing fracking or disposal wells, in general. A little study of geology would alleviate a lot of needless fears.

Stan

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Damnthematrix
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doorwarrior
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 Stan wrote: There is no

Stan wrote:

There is no basis in physics or geology for fearing fracking or disposal wells, in general. A little study of geology would alleviate a lot of needless fears.

It is my understanding that the gas companies per individual well inject millions of gallons of diesel along with a pleothra of other chemicals they will not tell us what they are, trade secrets and all that BS. How can you say we should not be worried about a mega corp, whos only responsibility is to make a profit, dumping BILLIONS of gallons of  carcinogens in and around our ground water?

If you were to look above you will see that gas companies are already starting to admit that their actions are causing geologic disturbances. You are looking at less than 15 years of history since fracking has become widespread and saying that theres noting to see here move along. How can you say there is no basis when almost every "study" has been done by or funded by the industry itself.

It seems to me that if you have a stable geologic system and then inject millions of pounds of pressure something is going to happen.  Actually isn't the point of fracking to cause things to break up so they can remove the gas? If you break up and then remove something from any system you have destroyed the balance that has been achieved over millions of years and a new balance will need to be found, aka earthquakes.

Rich

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on the OK quakes in the woodford shale

Stan Robertson wrote:

rjs wrote:

Oklahoma earthquakes raise more questions about hydrofracking, injection wells - Another swarm of earthquakes in an unusual part of the country has generated aftershocks of debate about whether the oil and gas drilling process called hydraulic fracturing, or fracking, is to blame. The early returns in Oklahoma, where a 5.6-magnitude earthquake near Sparks damaged buildings and rattled nerves on Saturday, are inconclusive. Much as scientists said there just isn’t enough evidence to link earthquakes this summer in Virginia and Colorado to fracking, officials over the weekend declined to connect the Oklahoma quake to the common drilling practice.The process of fracking involves the high-pressure injection of water, sand and chemicals into oil and gas wells to break up tight rock and sand and free up more hydrocarbons. The fracking fluids are then stored for later use, recycled or disposed of in injection wells.  According to the Associated Press, there are 181 such injection wells in the vicinity of Saturday’s Oklahoma quake and Sunday’s aftershocks. AP also reported Oklahoma typically only experienced about 50 earthquakes a year until 2009 when that number spiked dramatically. Last year there were 1,047 small quakes in the area, prompting the installation of seismographs. The U.S. Geological Survey (USGS) is now seeking more data on the weekend quakes in Oklahoma, a state whose panhandle region borders southeastern Colorado, where earthquakes this summer shook area residents in an area with natural gas drilling.

The depths of the epicenters of the recent Oklahoma earthquakes are many thousands of feet below any of the formations that are subjected top fracking. The injection wells are for the disposal of salt water produced by oil wells in the same area. Thus they do not change the overburden or liquids content of the region. About 80,000 wells in Oklahoma have been fracked in the last fifty years. Microquakes below magntude 2 are not particularly rare, but also are not felt. There is no basis in physics or geology for fearing fracking or disposal wells, in general. A little study of geology would alleviate a lot of needless fears.

Stan

the 5.6 quake was given at 3 miles...Oklahoma Hit by Earthquake for a Second Night in a Row 

that was the largest quake in OK history...there were 15 quakes over 3.0 about 5KM deep in the same area in a 24 hour period... here's a record: http://earthquake.usgs.gov/earthquakes/recenteqsww/Quakes/quakes_all.php 

the gas play they are working is the woodford shale, in the anadarko basin; "The Woodford Shale is considered to be one of the most important ...  and ranges in depth from 13000 to more than 40000 ft (estimated)." http://certmapper.cr.usgs.gov/data/noga95/prov58/text/prov58.pdf

Stan Robertson's picture
Stan Robertson
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Posts: 494
rjs wrote: Stan Robertson

rjs wrote:

Stan Robertson wrote:

rjs wrote:

Oklahoma earthquakes raise more questions about hydrofracking, injection wells - Another swarm of earthquakes in an unusual part of the country has generated aftershocks of debate about whether the oil and gas drilling process called hydraulic fracturing, or fracking, is to blame. The early returns in Oklahoma, where a 5.6-magnitude earthquake near Sparks damaged buildings and rattled nerves on Saturday, are inconclusive. Much as scientists said there just isn’t enough evidence to link earthquakes this summer in Virginia and Colorado to fracking, officials over the weekend declined to connect the Oklahoma quake to the common drilling practice.The process of fracking involves the high-pressure injection of water, sand and chemicals into oil and gas wells to break up tight rock and sand and free up more hydrocarbons. The fracking fluids are then stored for later use, recycled or disposed of in injection wells.  According to the Associated Press, there are 181 such injection wells in the vicinity of Saturday’s Oklahoma quake and Sunday’s aftershocks. AP also reported Oklahoma typically only experienced about 50 earthquakes a year until 2009 when that number spiked dramatically. Last year there were 1,047 small quakes in the area, prompting the installation of seismographs. The U.S. Geological Survey (USGS) is now seeking more data on the weekend quakes in Oklahoma, a state whose panhandle region borders southeastern Colorado, where earthquakes this summer shook area residents in an area with natural gas drilling.

The depths of the epicenters of the recent Oklahoma earthquakes are many thousands of feet below any of the formations that are subjected top fracking. The injection wells are for the disposal of salt water produced by oil wells in the same area. Thus they do not change the overburden or liquids content of the region. About 80,000 wells in Oklahoma have been fracked in the last fifty years. Microquakes below magntude 2 are not particularly rare, but also are not felt. There is no basis in physics or geology for fearing fracking or disposal wells, in general. A little study of geology would alleviate a lot of needless fears.

Stan

the 5.6 quake was given at 3 miles...Oklahoma Hit by Earthquake for a Second Night in a Row 

that was the largest quake in OK history...there were 15 quakes over 3.0 about 5KM deep in the same area in a 24 hour period... here's a record: http://earthquake.usgs.gov/earthquakes/recenteqsww/Quakes/quakes_all.php 

the gas play they are working is the woodford shale, in the anadarko basin; "The Woodford Shale is considered to be one of the most important ...  and ranges in depth from 13000 to more than 40000 ft (estimated)." http://certmapper.cr.usgs.gov/data/noga95/prov58/text/prov58.pdf

Lincoln Co., OK, where the quake occurred, is NOT in the Anadarko Basin. It is NOT an area of any extensive active horizontal drilling, having been largely tapped out by conventional drilling back in the 40s and 50s. The Woodford shale in the vicinity of the epicenter of the large recent quake is at a depth of about 1.2 - 1.4 km. In addition to the 5 km depth of the quake, the Sylvan shale, should provide a good impermeable seal well below the Woodford.  It seems to me very unlikey that oil and gas exploration or production activities are associated in any way with the earthquake.

The Woodford in central Oklahoma is generally deposited on a Hunton limestone unconformity surface. The Hunton is productive over most of the state. The Woodford has been heavily developed with horizontal drilling in southern Oklahoma in the last ten years. It produces dry gas primarily there. In the last three years there has been widespread driling of the Woodford in west central Oklahoma. The Woodford is about 3.6 km depth over most of that region and it produces a fair amount of condensate as well as gas. I doubt that the Woodford exists at depths as great as 40,000 ft (12 km) even in the Hollis basin of the southwest corner of the state.

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