Daily Digest

Daily Digest 2/21 - Big Government Is Coming To An End, Icelandic Anger Brings Debt Forgiveness, Aviation Biofuel's Future

Tuesday, February 21, 2012, 11:44 AM
  • The Time of Big Government is Coming to an End
  • Bob Janjuah: "Markets Are So Rigged By Policy Makers That I Have No Meaningful Insights To Offer"
  • Buy Gold & Silver For The Long Haul, says Jim Rogers
  • Icelandic Anger Brings Debt Forgiveness
  • Psychiatric Patients With No Place to Go but Jail
  • Jim Bianco on Money Printing, Quantitative Easing, and Misguided Federal Reserve Policy
  • Coal to India Beating China on Singh Decree
  • The Future of Aviation Biofuels

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

Economy

The Time of Big Government is Coming to an End (James S.)

Nations could, in principle, forestall social collapse by providing the basics of existence (food, water, housing, medical care, family planning, education, employment for those able to work, and public safety) universally and in a way that could be sustained for some time, while paying for this by deliberately shrinking other features of society—starting with military and financial sectors—and by taxing the wealthy. The cost of covering the basics for everyone is within the means of most nations. Providing human necessities would not remove all fundamental problems now converging (climate change, resource depletion, and the need for fundamental economic reforms), but it would provide a platform of social stability and equity to give the world time to grapple with deeper, existential challenges.

Bob Janjuah: "Markets Are So Rigged By Policy Makers That I Have No Meaningful Insights To Offer" (Doug)

First, I am simply stunned that our policymakers seem so one-dimensional, so short-termist, and so utterly bereft of courage or ideas. It now seems obvious that in response to the financial crisis that has been with us for five years and counting, we are being "told" to double up on these same policy decisions. The crisis was caused by central bankers mispricing the cost of capital, which forced a misallocation of capital, driven by debt/leverage, which was ultimately exposed as a hideous asset bubble which then collapsed, destroying the lives and livelihoods of tens of millions of relatively innocent people.

Buy Gold & Silver For The Long Haul, says Jim Rogers (David B.)

But the 69-year-old Rogers has hedged for any outcome regarding the two primary reserve currencies, the U.S. dollar and the euro, through the ownership of the monetary metals, gold and silver.

Icelandic Anger Brings Debt Forgiveness (pinecarr)

Iceland’s special prosecutor has said it may indict as many as 90 people, while more than 200, including the former chief executives at the three biggest banks, face criminal charges.

Larus Welding, the former CEO of Glitnir Bank hf, once Iceland’s second biggest, was indicted in December for granting illegal loans and is now waiting to stand trial. The former CEO of Landsbanki Islands hf, Sigurjon Arnason, has endured stints of solitary confinement as his criminal investigation continues.

That compares with the U.S., where no top bank executives have faced criminal prosecution for their roles in the subprime mortgage meltdown.

Psychiatric Patients With No Place to Go but Jail (VeganD)

Mr. Dart said the system “is so screwed up that I’ve become the largest mental health provider in the state of Illinois.” The situation is about to get worse, according to Mr. Dart and other criminal justice experts. The city plans to shut down 6 of its 12 mental health centers by the end of April, to save an estimated $2 million, potentially leaving many patients without adequate treatment — some of them likely to engage in conduct that will lead to arrests.

Jim Bianco on Money Printing, Quantitative Easing, and Misguided Federal Reserve Policy (Jaime)

Federal Reserve actions in the fall of 2008 and the spring of 2009 can be considered emergency measures. But step back and consider why we had a busting of the housing bubble and such turmoil in financial markets; we had malinvestment and markets that were mispriced. These markets must return to equilibrium. But the Fed is trying to prevent equilibrium. Maybe housing prices are still too high, and maybe further deleveraging is necessary. The Fed is attempting to stop that from happening. Things cannot get better until we reach that equilibrium. The Fed is making it worse in the long run.

Energy

Coal to India Beating China on Singh Decree (John M.)

The deficit between the demand and supply of domestic coal in India may rise as high as 150 million tons by 2014 if the country fails to increase local supplies by 6 percent this year, according to Hynes. The nation is seeking to improve infrastructure to achieve an average economic growth rate of 9 percent in the five years starting April 1.

The Future of Aviation Biofuels (James S.)

In looking at downstream demand, BNEF noted that the International Air Transport Association has called for 6% of jet fuel demand, or 8 billion litres per year, to be met by biofuels by 2020, but said that it expects airline demand to be 2 percent or less over the next few years – uncompetitive on cost, and bought by airlines solely to “improve their environmental credentials and to gain experience of biofuels technologies.”

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."

11 Comments

saxplayer00o1's picture
saxplayer00o1
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xkguy's picture
xkguy
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Post Carbon's article on smaller governments

Supplying all with the bare essentials is certainly altruistic BUT...who gets to be in charge? You can bet that the local food depot commander will not want for food, alcohol, sex, money or any of the finer things available. Remove work from the equation and we would see all the worst come out in our fellow citizens. We are naturally a meritocrisy and to see others fed without asking anything of them is repugnant to most people. Folks can respect a hard working criminal but not a lazy beggar.

pinecarr's picture
pinecarr
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Anonymous Hacks Greek Ministry Website (hat-tip Davos)

"Anonymous Hacks Greek Ministry Website, Demands IMF Withdrawal, Threatens It Will Wipe Away All  Citizen Debt", @ http://www.zerohedge.com/news/anonymous-hacks-greek-ministry-website-demands-imf-withdrawal-threatens-it-will-wipe-away-all-c

ZH wrote:

If there is one war that Greece could not afford to join, that is with the global computer hacking collective known as Anonymous. Yet as of minutes ago, that is precisley what happened, after Anonymous, as part of what it now calls Operation Greece, took down the Greek Ministry of Justice (http://www.ministryofjustice.gr/). While the pretext for the hacking appears to have been an arrest of the wrong people, is seems to have angered Anonymous to the point where they have left an extended message of demands on the Greek website, warning that unless the IMF withdraws from the country and the government resigns, all debts of Greek citizens will be wiped clean.

Hattip to Davos for posting a link to this ZH article on his website, pyschopathiceconomics.com . 

Arthur Robey's picture
Arthur Robey
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Posts: 2458
Huffing and Puffing and Bluffing.

Activists say the banks should go even further in their debt relief. Andrea J. Olafsdottir, chairman of the Icelandic Homes Coalition, said she doubts the numbers provided by the banks are reliable.

“There are indications that some of the financial institutions in question haven’t lost a penny with the measures that they’ve undertaken,” she said.

Icelandic anger.

Have I read this right? The Banks were Huffing and Puffing and Bluffing? Trying their luck to see if the Icelanders would cough up? I guess they picked the wrong mark. Vikings are predators, not prey.

Nigerian scam artists have a thing or two to learn from the real professionals. Why do an individual when you can do an entire country?

Time2help's picture
Time2help
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Time2help's picture
Time2help
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Arthur Robey's picture
Arthur Robey
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Posts: 2458
T2act

Fitch downgrades Greece.

It is clear to me that the debtors are ransacking Greece, like looters going through a dying man's pockets.

Psychopaths.

Time2help's picture
Time2help
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Posts: 506
Fitch downgrades Greece

My take exactly.  My heart goes out to the families in Greece that are no doubt getting pummelled by this.

Arthur Robey's picture
Arthur Robey
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Posts: 2458
The Fuelless Future of aviation.

I have been giving some thought to the future of aviation. Walking across Australia is ever so boring.

Aviation is the proverbial canary. We had another airline go belly up this week in Australia. Aviation companies are not making happy noises.

So how to do it? Simplicity is good. Use recycled PET. Reinforce it with carbon fiber. A 100m x10m tube will lift a man and baggage if filled with H2.

The sun heats the H2 it becomes buoyant. It falls upward. The aerdynamics of the shape cause it to have a horizantal component of say 50 to 1. For every 1m lifted one gets a penetration of 50. (about right for a glider) When the vessel gets to it's apex the sun goes down and the H2 cools and shrinks. Again one gets the 50 to 1 penetration.

If we assume that the vessel's maximum altitude is 10km's then an still air day would give a range of 1000kms. Assuming a 10 hour day that would be 100kms/hr.

In the interests of brevity I have left a lot out.

I would use the advantages of the phase changing nature and non flamibility of steam(water) with a lift of 800gms/1m cubed combined with the grunt of H2 with a lift of 1.2kg/m3.

But Sigh! First we have to let the bureaucrats walk before they will allow anything so radical as flight with no moving parts. Humans are so thick.

But what to do at night? May I suggest sleep?

Damnthematrix's picture
Damnthematrix
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Posts: 3998
Aviation deathwatch

Arthur Robey wrote:

I have been giving some thought to the future of aviation. Walking across Australia is ever so boring.

What's with the need to cross Australia Arthur....?

In the future, nearly everyone will stay put in their local community.... not so boring is it?

Mike

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