Daily Digest 6/6 - Manufacturing Contracts In U.S. And China, Can City Farms Feed A Hungry World?
This Crazy Extend & Pretend Economic World (GE Christenson)
Because the US dollar is the world’s reserve currency, the US can import large amounts of crude oil and consumer items and pay for them with newly created dollars and Treasury debt paper. For many years this has allowed the US to “live beyond its means,” but it has also encouraged other countries to find ways to bypass the dollar in international transactions. By abusing the privilege of the reserve currency status, the US has created the conditions whereby the dollar will be dethroned from that status and our standard of living must decline. What would happen if Americans actually had to pay for imports with either our own exports or physical gold bars?
Jim Willie CB, USTBond - Return To Sender (Thomas C.)
A counter-culture comparison is due. The USFed and the Wall Street bankers have created an environment of alternative universe. The financial markets are rigged. The USDollar currency and USTBond are propped. The bankers are given free license for $trillion fraud. The big banks are dependent upon narcotics funds. The politicians are syndicate puppets, include the leader of the land. The last three presidents have been narcotics addicts, who refuse to hand over medical records to the Congress as required by law. The debts are covered by hyper monetary inflation. Jobs are being shed rapidly. The USEconomy is stuck in quicksand, as it deteriorates, while the blaring music sings about recovery.
“This is not a good moment for the world economy,” said David Bloom, currency chief at HSBC. “The manufacturing indices came in weaker than expected in China, Korea, India and Russia, and then we got America’s ISM.
Others, however, are warning that the deficit — even if it looks manageable over the next decade — still remains a major long-term challenge, given that rising health care spending on the elderly and debt service payments are projected to eat up a bigger and bigger portion of the budget as the baby boom generation enters retirement.
The authors then added up the projected costs of other public-assistance programs available to families on BadgerCare, such as reduced-price school meals, Section 8 housing assistance, the earned income tax credit and energy assistance. Assuming all those workers avail themselves of those additional programs -- granted, an unlikely scenario -- the report extrapolates that the final tab would top $900,000.
10 things you might not know about India (westcoastjan)
A friend of mine told me that, before his arranged marriage, he had a hunch his prospective in-laws had hired a private detective to check whether he'd had a girlfriend in the past. The answer was that he had, but the snoop (thankfully for my friend) failed to find out, and the wedding went ahead. The growth in companies offering the service is huge, with 15,000 operating. "It's not spying," says one woman who'd used the service to check out a prospective bridegroom for her sister. "He told us he was from a good family, but we needed to ensure he was telling the truth."
Tomorrow's crisis is already making billions today for bankers and investors. But then, there's almost no way for financiers to stop profiting from the next crisis under current conditions. The Federal Reserve and other central banks have flooded them with cheap money, making it inexpensive to borrow.
Crude Oil Glut Forecast for 2014 (James S.)
In the U.S., production of light oil will dramatically increase due to the shales. Without the ability to export, we are already seeing prices of West Texas Intermediate (WTI) reflecting that "stranded" lighter barrel. We see light imports being backed out of the U.S. as early as this summer as well. Finally, as infrastructure bottlenecks are removed onshore, we see risk to Gulf Coast prices (e.g., Light Louisiana Sweet). With much of the U.S. refinery infrastructure having been geared to process heavier barrels, the large growth in light barrels has already driven WTI prices to a discount with Brent. Risks to Brent could come down the road if European and Chinese demand remains tepid.
Can city farms feed a hungry world? (westcoastjan)
Today’s cities are at risk from a different set of issues. If trends in urbanisation continue at their current rates, cities could evolve into places where intolerable numbers of people may have to live, and who are forced to live well below the poverty limit, threatening to overwhelm sanitation systems and housing. Food and drinking water would be even scarcer than in many of today’s developing cities.
Why is India obsessed with monsoon rains? (westcoastjan)
A good monsoon leads to bountiful crop which raises farm incomes, boosts rural consumption and drives the economy. A weak monsoon - and droughts, in extreme cases - hurts farm workers, raises food prices, encourages hoarders and generally creates havoc in the economy.
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