Daily Digest

Daily Digest 4/13 - Natural Gas Is Sticky, 24 Shocking Tax Code Facts, Why $200 Oil Won't Cause A Recession

Friday, April 13, 2012, 10:52 AM
  • Philippines Pushes to End China Sea Standoff Before Weekend Trip
  • Green Slime Drives Our Financial Crises
  • Current Tax Code: 24 Shocking Facts About Taxes In The United States
  • For Capitalism to Survive, Crime Must Not Pay
  • Treasury Faulted in Effort to Relieve Homeowners
  • Natural Gas Is Sticky
  • High Oil Prices: Why $200 Oil Won’t Cause A Recession
  • What the EIA's World Oil Production Data for 2011 tells us about 2012
  • 48% of Chicken in Small Sample Has E. Coli

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Economy

Philippines Pushes to End China Sea Standoff Before Weekend Trip (John M.)

The Philippines and China issued competing accounts yesterday of the confrontation on the Scarborough Shoal. While the Philippines said Chinese ships had prevented it from arresting fisherman on its territory, China said the Philippines had illegally blocked the passage of ships seeking shelter from rough weather.

Green Slime Drives Our Financial Crises (adam)

Pink slime was originally limited to dog food, but it has secretly been fed to Americans for a decade. Major hamburger chains, grocery stores, and school lunch programs added it to make up 15% of our burgers. The government didn’t require disclosure of pink slime or ammonia. Tests have established that pink slime remains more likely to harbor dangerous bacteria and that the only way to reduce that problem is to add so much Mr. Clean that the pink slime stinks and tastes awful. Because BPI could not sell the product if it continued to stink and taste awful they reduced the amount of Mr. Clean they used in processing and the risk of the pink slime harboring dangerous bacteria rose.

Current Tax Code: 24 Shocking Facts About Taxes In The United States (David B.)

Our tax system has become so complicated that it is almost impossible to file your taxes correctly. For example, back in 1998 Money Magazine had 46 different tax professionals complete a tax return for a hypothetical household. All 46 of them came up with a different result.

For Capitalism to Survive, Crime Must Not Pay (June C.)

The net result of unequal justice is likely to be the destruction of the overall wealth of our society. I don’t mean the wealth of individuals; I mean the total wealth of goods and services that are the benefits of healthy competition. To the extent that unequal justice prevails, entities that are exempt from the laws will, in all likelihood, be more profitable than law abiding competitors. Then they use their profits to further weaken competitors by using their illegal profits to further build their businesses at the expense of competitors. All of this business building activity is based on a foundation of sand, and ultimately the entire industry — or even the larger economy — becomes distorted. The “rogue” company gains power, changes markets, and destroys direct and indirect competitors because it is playing by different rules...

Treasury Faulted in Effort to Relieve Homeowners (jdargis)

The report is just the latest to criticize the Obama administration’s efforts to relieve homeowners battered by the nationwide drop in housing prices and the broader recession. The office of the special inspector general has repeatedly criticized Treasury’s management of the Home Affordable Modification Program, Washington’s main initiative to prevent foreclosures.

The Treasury Department had estimated that the program would reach three million to four million homeowners. It has aided fewer than a million, though the program has been completing more and more permanent modifications recently.

Natural Gas Is Sticky (James S.)

This trip, he spoke of the pressing need for diversity in an interconnected energy market. He warned that pipelines like BTC and Nabucco may sometime in the future "become somewhat archaic." In theory, that means bad things for a U.S. foreign policy based on what geopolitical scholar Walter Russel Mead dubbed sticky power -- "attracting other countries to the U.S. system and then trapping them in it." Much like the Marshall Plan in the aftermath of World War II, sticky power works because even though the United States isn't always the global superpower, its economic principles are defined largely in global terms. Integration into the global system means U.S. economic influence, for all intents and purposes, is geopolitical flypaper.

High Oil Prices: Why $200 Oil Won’t Cause A Recession (David B.)

Indeed, it is one-seventh the size of President Obama’s stimulus the following year, which didn’t have much visible effect. Thus the high oil prices of 2008 might have made the difference between marginal growth and marginal decline, which according to the “butterfly effect” of chaos theory could have caused other larger changes.

However, high oil prices were certainly not sufficient to push an otherwise healthy economy into recession.

What the EIA's World Oil Production Data for 2011 tells us about 2012 (James S.)

The shortfall in oil production relative to what would have been expected based on the 1983-2005 growth pattern amounted to 4.7 million barrels in 2011. This is far more than any country claims as spare capacity. This is no doubt one of the reasons why oil prices are as high they are now. These high oil prices tend to interfere with economic growth of oil importing nations.

The shortfall in growth especially occurred in crude oil. Figure 2, below, shows crude oil production separately from substitutes.

48% of Chicken in Small Sample Has E. Coli (jdargis)

Dr. Doyle emphasized that the findings by the nonprofit group were different from the recent uproar over “pink slime,” the inexpensive filler containing ammonia gas or citric acid that is often added to ground beef products to kill E. coli and other bacteria. “That’s an additive,” 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."

6 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2682
Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Japanese ambassador has grave concerns over Fukushima reactor #4
Japanese ambassador has grave concerns over the spent fuel pond above Fukushima reactor #4
 

From the website of Akio Matsumura:

http://akiomatsumura.com/2012/04/682.html

Also See additional information at:

http://akiomatsumura.com/category/nuclear

Japan’s former Ambassador to Switzerland, Mr. Mitsuhei Murata, was invited to speak at the Public Hearing of the Budgetary Committee of the House of Councilors on March 22, 2012, on the Fukushima nuclear power plants accident. Before the Committee, Ambassador Murata strongly stated that if the crippled building of reactor unit 4—with 1,535 fuel rods in the spent fuel pool 100 feet (30 meters) above the ground—collapses, not only will it cause a shutdown of all six reactors but will also affect the common spent fuel pool containing 6,375 fuel rods, located some 50 meters from reactor 4. In both cases the radioactive rods are not protected by a containment vessel; dangerously, they are open to the air. This would certainly cause a global catastrophe like we have never before experienced. He stressed that the responsibility of Japan to the rest of the world is immeasurable. Such a catastrophe would affect us all for centuries. Ambassador Murata informed us that the total numbers of the spent fuel rods at the Fukushima Daiichi site excluding the rods in the pressure vessel is 11,421 (396+615+566+1,535+994+940+6375).

SNIP

This article continues at: http://akiomatsumura.com/2012/04/682.html

Read the full story here.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 2421
Chaos and Strange Attractors.

Dr Kent More.

Today, just about every TV talking head will tell you that volatility is subdued, at inordinately (some are even saying "historically") low levels. What they don't factor in is a very important subsector pressure that is rapidly developing.

What I see clearly in his article is a the effects of Strange Attractors. We have a period of stability around one attractor and then, Whoopsy Daisy, we are off to circle a new reality.

I have posted this before but it needs repeating. These Islands of Stability are self similar but on different scales.

Here is a book by Gleick on the subject.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 2421
The Common Meme.

Consider the fact that even mainstream outlets like Bloomberg have had to concede the myth of peak oil, with new discoveries and existing sources making a mockery of claims that the fuel would disappear. Whether or not oil will remain desirable over alternative fuels is a different question, but current sources can easily last the world hundreds of years.

and

Of course, the Club of Rome/MIT models already predicted that the tipping point for disaster would come by the year 2000, which, like the predictions from Sir Thomas Malthus that population would outgrow the food supply, never came.

Instead, this prediction for disaster reflects aspirations of the elite to stop growth, not a neutral reflection on trends that must be. As we have repeatedly documented, the ruling elites aim to cull the population and drive a post-industrial society that harkens back to the feudalistic era.

You can read the full tirade here.

And it works. People at work truly believe that it is all going to plan. Someone else's plan.

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
Status: Martenson Brigade Member (Offline)
Joined: Jan 4 2009
Posts: 2485
Damnthematrix

Damnthematrix wrote:
Japanese ambassador has grave concerns over the spent fuel pond above Fukushima reactor #4
 

From the website of Akio Matsumura:

http://akiomatsumura.com/2012/04/682.html

Also See additional information at:

http://akiomatsumura.com/category/nuclear

Japan’s former Ambassador to Switzerland, Mr. Mitsuhei Murata, was invited to speak at the Public Hearing of the Budgetary Committee of the House of Councilors on March 22, 2012, on the Fukushima nuclear power plants accident. Before the Committee, Ambassador Murata strongly stated that if the crippled building of reactor unit 4—with 1,535 fuel rods in the spent fuel pool 100 feet (30 meters) above the ground—collapses, not only will it cause a shutdown of all six reactors but will also affect the common spent fuel pool containing 6,375 fuel rods, located some 50 meters from reactor 4. In both cases the radioactive rods are not protected by a containment vessel; dangerously, they are open to the air. This would certainly cause a global catastrophe like we have never before experienced. He stressed that the responsibility of Japan to the rest of the world is immeasurable. Such a catastrophe would affect us all for centuries. Ambassador Murata informed us that the total numbers of the spent fuel rods at the Fukushima Daiichi site excluding the rods in the pressure vessel is 11,421 (396+615+566+1,535+994+940+6375).

SNIP

This article continues at: http://akiomatsumura.com/2012/04/682.html

Read the full story here.

Mike -

The good Ambassador has no idea what he's talking about.

I have addressed this (non) issue here: http://www.peakprosperity.com/comment/133683#comment-133683

and in more detail here:  http://www.peakprosperity.com/comment/133487#comment-133487

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