Daily Digest 5/24 - OPEC's Oil Market View, Aerial Oil Sands Photo Tour, Is China Liquidating Treasuries?

• Adam Fleming and James Turk on precious metals and mining
• Silicon Valley tech executive nabbed in false barcode scheme involving Lego toys
• Guest Post: Is China Really Liquidating Treasuries?
• David McWilliams: Eurozone Policy that Rewards the Reckless at the Expense of Taxpayers, and Crushes the Periphery, must be Resisted
• OPEC's View of the World Oil Market
• The Commodity Trade: Wheat Futures Continue To Soar; Ways To Play
• Aerial Photo Tour Of The Alberta Oil Sands
• Food Abundance?

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

Economy

Adam Fleming and James Turk on precious metals and mining (adam)

Adam is pessimistic about the eurozone, and thought plans for European Monetary Union were delusional, on account of the differences in culture and political economy between different European Union countries. He also discusses his mining experience in South Africa, and why – contrary to much negative press the country gets – it is actually still a great place to live and work. He expects companies to increase their mining investments in the Witwatersrand Basin, and thinks that this region will remain the world's premier gold mining location.

Silicon Valley tech executive nabbed in false barcode scheme involving Lego toys (Chris M.)

Langenbach's luck ran out on May 8, when a loss prevention officer on duty at the Mountain View Target recognized the larcenous Lego mega-moocher and immediately placed him under surveillance. According to police, Langenbach not only placed his own bar codes on several items, he checked them on the store's aisle scanners to make sure he was getting the low, low price. He put stickers on three boxes but put two of them back on the shelves. When he walked out with one set he didn't pay full price for, store security nabbed him and called the cops.

Guest Post: Is China Really Liquidating Treasuries? (pinecarr)

The news that China has become the first sovereign to establish a direct sales relationship with the U.S. Treasury (therefore cutting out the middleman and bypassing Wall Street ) raises a few interesting questions.

David McWilliams: Eurozone Policy that Rewards the Reckless at the Expense of Taxpayers, and Crushes the Periphery, must be Resisted (Jaime)

Economist David McWilliams describes what led to the crisis, who is being bailed out, the terrible policy decisions being made, and the negotiating position of peripheral countries in the Eurozone. McWilliams' whiteboard animations are embedded following these select notes.

OPEC's View of the World Oil Market (James S.)

It is interesting to read the viewpoint of OPEC each month, as it relates to global oil supply, and the numbers that they rely on to estimate how much production that will be required. For 2012, for example, they now see no need to increase production above 30 mbd, (though it averaged 31.62 mbd in April, when NGL and non-conventional sources are included) with adequate production growth to meet demand (some 0.6 mbd) coming from non-OPEC sources that are anticipated to average 53 mbd this year. At present supply is seen as exceeding demand, hence there has been an increase in global stocks which OPEC has noted.

The Commodity Trade: Wheat Futures Continue To Soar; Ways To Play (David B.)

The recent rally in this agricultural crop has been largely attributed to a drought mixed with hot weather in major growing regions of the U.S. as well as Russia. With this surge in prices being designated as a weather-driven rally, it is important to note that it can be turned on its head in an instant. Traders looking to make a play on this commodity would do well to watch weather patterns in the Mid-west and other major growing regions, as future forecasts will likely dictate price movements for this crop [see also 50 Ways To Invest In Agriculture].

Aerial Photo Tour Of The Alberta Oil Sands (jdargis)

Since the companies mining the oil from the sands of Alberta wouldn't provide access to their operations to a reporter, he rented a plane and took a bunch of photos.

Food Abundance? (Rich B.)

In addition, I like it because of its functional characteristics (and its hilarious name): it’s small (3 pounds fully grown), fast (70 days until it’s ripe), tasty, hardy, and easy to recognize as ripe (the fruit turns yellow). Also, I’m hoping to get two plantings of it this year.

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