Daily Digest 9/10 - The Truth About Coal Supplies, Population - The Elephant in the Room, Time to Start Hoarding Coffee Beans?

• 1) US Fiscal Weakness Is Not Grasped by Markets, Kotlikoff Says

"Sept. 9 (Bloomberg) -- Financial markets don’t fully grasp the extent of deterioration in the U.S. fiscal position burdened with rising health-care and Social Security costs, Boston University economics professor Laurence Kotlikoff said.

“The potential for the U.S. fiscal crisis to kick off a global financial meltdown is significant,” Kotlikoff wrote in the September issue of the International Monetary Fund’s Finance and Development magazine. “Once the world catches on to the true extent of the U.S. fiscal insolvency, the ability of the United States to continue to finance its government borrowing could come to a halt.”"

• 2) New York is running on empty, state Controller Thomas DiNapoli warns

"New York State Controller Thomas DiNapoli warned Thursday that the recently adopted state budget relies on risky and temporary funding that could put New York in another crisis.

The Democratic controller's annual analysis says the budget enacted four months late totals nearly $136 billion.

"After months of budget dysfunction and delay, New York is still on the edge of a very steep financial cliff," DiNapoli said.

He predicted the current spending rate will produce budget gaps of $15.6 billion by 2013-14 and a cumulative gap of $37 billion through 2013-14."

• 3) Nine of Ten Consumers Postponing Big Purchases Through 2010

"Fear that a double dip recession will threaten their personal finances is driving nine out of ten potential buyers out of the market for big ticket items like homes and cars for at least the next three to four months, according to a new national consumer survey released today.

A survey taken in the last week of August by the polling firm StrategyOne suggests that fence sitting by home buyers will dramatically increase in the fourth quarter. Some 87 percent of consumers say they do not plan to make a big-ticket purchase (such as a house or car) in the next 3 to 4 months. Nearly half, 49 percent, say they have already delayed making a big-ticket purchase during the past few months. Only 13 percent said they plan to make a big purchase during the balance of the year.

Consumers will be less likely to cut back on overall spending than on big ticket items. Over half, 52 percent, expect to spend the same amount in the fourth quarter as they did during the last three months. Forty-one percent plan to spend less and only 8 percent plan to spend more."

• Other news, headlines and opinion:

Congress Yuan Action May Spark China Treasuries Sale, Roach Says

Dallas Fed: Sovereign debt default is politically strategic

Trennert: Treasurys and the Danger of Short-Term Debt

Russia Budget Deficit Widens to 645.8 Billion Rubles

China to Pass US as Largest Credit-Card Market by 2020, MasterCard Says

Governments and banks to compete for financing: Fitch

Euro Nations Have Yet to Start Cutbacks in Earnest, Fitch Says

US commercial paper market falls for 3rd week -Fed

China's Posts Trade Surplus of $20 Billion in August

Freddie Mac Sells $5 Billion of Debt at Higher Yield Spreads

Next Mayor Will Face Tough Decisions to Solve Financial Mess (Chicago...deficit "to hit a record $655 million for 2011")

Spanish government allows cities to take new loans to rescue them from bankruptcy

Trichet Says Weaning Banks Off ECB's Emergency Lending Will `Take Time'

EU Stability Fund `Increasingly Likely' to Be Tapped, Morgan Stanley Says

Greece May Need to Roll Over EU Loan for 6 Years, JPMorgan Says

Pennsylvania's Rendell Working to Avoid Harrisburg Bankruptcy

Why So Many Half-Empty Strip Malls In Far East El Paso?

Beshear: State faces $470 million shortfall in Medicaid budget (Kentucky)

health insurance costs expected to surge

Florida Issuers Borrow $442 Million as State's Debt Costs Rise to Record

NIA Discusses Whether JP Morgan's Silver Manipulation is Over

Romanian August Inflation Quickens to Fastest in 2 Years on VAT Increase

Tucson city council addresses huge budget deficit ($51 million.....News Video)

Budget Analysis Predicts $1.3B Budget Hole for Indiana

Second look at (gasp) bankruptcy (Stockton)

Health benefits for retirees will cost OC agencies $1 billion (Orange County, CA)

Study: NM state pension plan will run out of money in 13 years

Reports: Distressed Commercial Real Estate Equals $187B

UK plans Royal Mail sell-off, unions angry

Long Beach's "Problem" Threatens Public Safety, Pensions

As energy per ton decreases, it takes more truck loads to get the same energy required.  As noted in CM's crash course, we are already at the point where more energy is required to get less net energy.

Not only does the decreasing energy/ton increase mining costs, it also increases refining/transportation costs.  All at a time when cost of energy is increasing.  Thins will get interesting in the next few years as all of these factors are combined with inflation.

Ask Bill Mollison, the 'co-inventor' of permaculture if our population is too large to be sustained, as I did, and he will reply, 'no!'  Ask him what he thinks is the worlds biggest problem; Is it peak oil? no. Is it population? no! Is is global warming? no! 

Soil loss is his answer.  Bill is adament, as is Geoff Lawton and other Permaculture and sustanabile farming practitioners I know, that we can feed our population of over 6 billion if we change the way we live and the way we farm, and we regererate the trees on the first ridges facing the sea on all coasts.  Our standard of living will increase too.  Our bank accounts wont increase, neither will our pension funds, neither will the list of shit we own.

I shit you not, this stuff about overshoot, is simply not true.... or at least it doesn not have to be true.  Business as usual and then yes, I agree, we are in for a major correction in population figures... but we have a choice. It can be done.  It is not rocket science.  It doesnt require batteries, or rare earths.  it requires will power and a change of focus. this wont happen without  understanding why we live in denial of the predicament we are in.

I wont spam.  Sorry about this.

Google video search 'food forest permaculture'.  The most productive areas of earth are NOT modern industrialised farms. TPTB want you to believe that, so you will support them.  The most productive places on earth are forests and reefs.

Permaculture can put you in the middle of food forests and food reefs... in touch with the planet and your place on it.

First i suggest we have to come to grips with the root of our denial... then the answers will flow.

In the past, our growing economy fed our growing government.  Now our growing government is starving our shrinking economy.

Davos Uncle Scam is so fitting LOL!!