Daily Digest

Daily Digest 2/17 - Proof Of Greater Depression, Current System Will Be "Totally Destroyed", Saudis To Re-Open Idled Field

Friday, February 17, 2012, 11:56 AM
  • MF Global: Where's The Cash - Part II
  • Currency Funds: Special Case International Bond Funds
  • Proof Of U.S. Greater Depression
  • Sprott's John Embry: "The Current Financial System Will Be Totally Destroyed"
  • Just as Greece complies at last, Europe pulls the plug
  • Which Trends Are Changing the World of Energy
  • Biomass: Just Because it's Green Doesn't Mean it's Clean
  • Saudis to Re-open Idled Oil Field
  • 300k farmers hope for lawsuit against Monsanto

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Economy

MF Global: Where's The Cash - Part II (June C.)

What people need to understand is that like the case of WorldCom, the MF Global bankruptcy illustrates the way in which the large Wall Street banks have used their Washington lobbyists to encroach upon the rights of investors. Even if it were proved that John Corzine and his colleagues committed criminal violations of the Uniform Securities Act and state law, there is little chance that the investors in MF Global will ever receive equity and justice. Again, read the WorldCom case

Currency Funds: Special Case International Bond Funds (Joe P., registration required)

Currency funds may be considered special cases of international bond funds, as many of them invest in international fixed income securities of short duration to gain currency exposure. Reducing the duration of international fixed income investments may significantly reduce a portfolio's risk profile. Therefore, such currency funds may be worth considering as a tool to actively address interest and credit risk in a diversified portfolio...

Proof Of U.S. Greater Depression (David B.)

Reflecting the broad-based collapse of the U.S. economy, these refineries are now exporting all categories of petroleum products: diesel, jet fuel, and even gasoline are now being exported in large quantities, month-after-month by U.S. refineries. Recall that it was only four, short years ago that many American politicians were alarmed by the crisis of the “lack of U.S. refining capacity”. No new refineries have been constructed in the U.S. in more than 30 years, and at that time those refineries were straining to meet the demand of solely the U.S. domestic market. With that domestic market collapsing, these refineries a

Sprott's John Embry: "The Current Financial System Will Be Totally Destroyed" (pinecarr)

Sprott strategist John Embry has never been a fan of the existing financial system. Today, he makes that once again quite clear in this interview with Egon von Grayerz' Matterhorn Asset Management in which he says: "I think that the current financial system, as we know it, will be totally destroyed, probably sooner rather than later. The next system will require gold backing to have any legitimacy. This has happened many times in history."

Just as Greece complies at last, Europe pulls the plug (pinecarr)

The regime of drastic cuts has tipped the economy into a violent downward spiral. They thought that private industry would muddle through as the state went through the austerity mincer. What the EU-IMF "Troika" did not fully understand is how many firms were really part of the state in disguise.

Energy

Which Trends Are Changing the World of Energy (James S.)

Technology and global competition are profoundly impacting our energy future. The evidence is all around us in wind and solar energy advances, horizontal drilling and hydraulic fracturing creating a new North American oil and gas boom market, and the technologies driving smart grid, microgrids, and constant energy management. What are the forces of change taking place in energy today?

Biomass: Just Because it's Green Doesn't Mean it's Clean (James S.)

The study for the NWF, meanwhile, said that as the biomass energy sector expands, more fuel sources are likely to come from standing trees as opposed to residue from saw mills and the like. This in turn could lead to a higher production of atmospheric carbon as carbon sinks disappear. The NWF said that once forests start to regenerate, the carbon footprint would shift. The study found, however, that biomass energy would produce more harmful emissions for at least another 35 years when compared to fossil fuels, though the was only the case for the southeast region.

Saudis to Re-open Idled Oil Field (Jeff B.)

This report is both positive and negative. On the positive side, even 100,000 new barrels/day is a good thing. On the negative side, if Saudi Aramco needs to re-open a long idled field to maintain its current production and spare capacity quantities, the oil situation in Saudi Arabia could be more tenuous than the country would like to have the rest of us believe.

Environment

300k farmers hope for lawsuit against Monsanto (Jason C.)

Farmers have been concerned that unless Monsanto is stopped, their reign over the world’s agriculture will surpass anything imaginable. They are seeking pre-emptive protection from those questionable lawsuits and next month Judge Buchwald will weigh in on if the matter should go to trial. Her honor recently listened to oral arguments on Monsanto’s Motion to Dismiss, which the corporation hopes to win to cease the charges being brought by a total of 83 plaintiffs representing now over 300,000 organic farm-affiliated businesses. The legal team for the small-time farmers also offered their arguments.

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2648
Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1840
Many Welfare Recipients Don't Think They Use Gov't Programs

I'm not a fan of Paul Krugman. His deficit-spending ideas are entirely without logic.

However, he is a damn good point here. Reminds me of that "Keep your government hands off my Medicare!" story.

Moochers Against Welfare (February 16, 2012)
"Cornell University’s Suzanne Mettler points out that many beneficiaries of government programs seem confused about their own place in the system. She tells us that 44 percent of Social Security recipients, 43 percent of those receiving unemployment benefits, and 40 percent of those on Medicare say that they 'have not used a government program.'

"Presumably, then, voters imagine that pledges to slash government spending mean cutting programs for the idle poor, not things they themselves count on. And this is a confusion politicians deliberately encourage. For example, when Mr. Romney... condemned Mr. Obama for not taking on entitlement spending - and, in the very next breath, attacked him for cutting Medicare."
http://www.nytimes.com/2012/02/17/opinion/krugman-moochers-against-welfare.html

The above references another New York Times article that I mentioned over in another thread:

Poet wrote:

Even Critics of Safety Net Increasingly Depend on It (February 11, 2012)
"Ki Gulbranson [Republican] owns a logo apparel shop, deals in jewelry on the side and referees youth soccer games. He makes about $39,000 a year and wants you to know that he does not need any help from the federal government. He says that too many Americans lean on taxpayers rather than living within their means. He supports politicians who promise to cut government spending. In 2010, he printed T-shirts for the Tea Party campaign of a neighbor, Chip Cravaack, who ousted this region’s long-serving Democratic congressman. Yet this year, as in each of the past three years, Mr. Gulbranson, 57, is counting on a payment of several thousand dollars from the federal government, a subsidy for working families called the earned-income tax credit. He has signed up his three school-age children to eat free breakfast and lunch at federal expense. And Medicare paid for his mother, 88, to have hip surgery twice."
http://www.nytimes.com/2012/02/12/us/even-critics-of-safety-net-increasingly-depend-on-it.html

Poet

Bill Hicks's picture
Bill Hicks
Status: Bronze Member (Offline)
Joined: Jul 3 2011
Posts: 34
Oregon Planning Prison Closures, Up to 400 Layoffs

http://billhicksisdead.blogspot.com/2012/02/oregon-planning-prison-closures-up-to.html

The story:

The Oregon Department of Corrections is considering closing multiple prisons in the state’s 14,000-inmate, 14-prison corrections system, going far beyond previously disclosed plans to shut down one Salem facility.



Corrections leaders have drawn up budget-cutting plans that call for scrapping 1,500 to 1,800 beds and laying off 350 to 400 employees.



New corrections director Colette Peters outlined the potential cuts — totaling $17.2 million — in an e-mail sent to all DOC employees late Friday.

And my reaction:

Of course, changing our insane drug laws and decriminalizing the possession of cocaine and marijuana would be a great first step towards lowering the prison population. The states have been slowly coming to their senses on this issue of late, but the federal government, under Obama no less, has actually been cracking down on those efforts. From this story and others like it, it's pretty obvious that something will soon have to give before the prison-industrial complex bankrupts every state government around the country.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2648
National Debt passes $15.4 trillion

Treasury Direct link

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
02/10/2012 10,596,675,638,209.03 4,757,433,068,699.51 15,354,108,706,908.54
02/13/2012 10,596,768,009,341.49 4,758,430,326,052.17 15,355,198,335,393.66
02/14/2012 10,596,773,910,422.08 4,762,610,253,497.43 15,359,384,163,919.51
02/15/2012 10,636,670,644,323.12 4,755,064,982,687.06 15,391,735,627,010.18
02/16/2012 10,655,376,243,337.89 4,757,654,741,504.25 15,413,030,984,842.14

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