Daily Digest

Dail Digest 6/17 - Greece Uncertainty Weighs On Markets, Libya in 'A Civil War', The Indignity Of Industrial Tomatoes

Friday, June 17, 2011, 10:46 AM
  • Uncertainty Over Greece Weighs on Markets
  • As Europeans Wince at Austerity, Markets Fear Turmoil
  • U.S. Investors Overexposed to U.S. Dollar Risk?
  • American Economic Policy: Running Out Of Road
  • Krieger On Peak Government
  • Associated Press: Libya Conflict 'A Civil War'
  • Yuck Euro And The Oil Slick
  • Renewables Now Make Up 79% Of New Zealand's Electricity Generation
  • The Indignity Of Industrial Tomatoes

Our 'What Should I Do?' guide has steps to cook, see & stay warm in times of power outage

Economy

Uncertainty Over Greece Weighs on Markets (jdargis)

United States government bonds traded higher in price as euro zone concerns started another “flight to quality,” said Kevin H. Giddis, the executive managing director and president for fixed-income capital markets at Morgan Keegan & Company.

“Even if some of the economic numbers are better, it doesn’t matter,” he wrote in a research note. The Treasury’s 10-year note rose 14/32, to 101 23/32. The yield fell to 2.93 percent from 2.98 percent late Wednesday.

As Europeans Wince at Austerity, Markets Fear Turmoil (jdargis)

Across Europe, people are complaining that they are unfairly paying the price for the mistakes of their governments while they are growing increasingly resentful of the international banks and the preferential treatment they seem to receive. And they are getting louder.

U.S. Investors Overexposed to U.S. Dollar Risk? (Joe P., Registration Required)

The U.S. dollar has experienced significant weakness over recent years. We believe there are many factors that have contributed to this weakness, and in our opinion many of these factors have yet to fully play out, meaning there is a risk the U.S. dollar experiences ongoing deterioration for an extended period of time. U.S. investors may want to take this possibility into consideration when assessing the U.S. dollar risk inherent in their investment portfolios...

American Economic Policy: Running Out Of Road (jdargis)

Since recession ended in June 2009, GDP growth has averaged 2.8%, roughly its long-term trend. After so deep a slump, the pace is usually much faster. The gap between actual and potential GDP has been stuck at around 5% since late 2009 (see chart 1). From some angles, the picture is even worse. Measured by totting up income rather than spending, the economy is no bigger than in 2006. The proportion of working-age people with jobs is lower than in the trough of the recession.

Krieger On Peak Government (June C.)

But indeed it is this simple inability to understand the basic laws of the universe that has poisoned the economics profession around the world and has spread to the thinking of governments. This faulty Keynesian religion is exactly why our politicians believe in this preposterous notion of the higher the nominal GDP growth the better and makes them think they can take on infinite amounts of debt with no consequences. Remember this is the same man who also blames the entire Great Depression on monetary policy failures. He probably thinks bad monetary policy caused the Japanese tsunami. The reason this man is so dangerous is he really believes his own crap. He really does think he has figured it out. Just like the guy that comes up with a “system” to beat the casino. Unfortunately for The Bernank, the house always wins and he will go home just as penniless and discredited as that poor sap after his intellectual pockets are emptied out. Except unlike the gambler the whole world will witness The Bernank crash and burn and it will be written about for centuries to come.

Associated Press: Libya Conflict 'A Civil War' (jdargis)

The AP's new language has already been visible in recent articles, including a report Monday on Muammar Gaddafi's chess match with the Russian head of the World Chess Federation.

Some other news organizations have also used the term "civil war" in the past week, including Bloomberg News and the Wall Street Journal.

Energy

Yuck Euro And The Oil Slick (Ilene)

Wages have not gone up (adjusted for inflation, since 1973), home prices have not gone up (since 1985), stocks have not gone up (since 2006) - just oil and gold and silver and other stuff that people like to hoard in hopes of making themselves even richer - even though it comes at the expense of EVERYONE ELSE IN THE WORLD.

Renewables Now Make Up 79% Of New Zealand's Electricity Generation (NZSailor)

Strong hydro inflows and generation from new wind and geothermal sources has seen renewable energy generation increase from 74 per cent to 79 per cent in the March quarter.

Our high level of renewable generation and the use of gas over coal at the Huntly Power Station has also resulted in the lowest quarterly electricity emission in ten years.

“Our Government has a target of 90 per cent of electricity generation to be from renewable sources by 2025, we are well on our way to achieving that."

Environment

The Indignity Of Industrial Tomatoes (jdargis)

If you have ever eaten a fresh tomato from a grocery store or restaurant, chances are good that you have eaten a tomato much like the ones aboard that truck. Florida alone accounts for one-third of the fresh tomatoes raised in the United States, and from October to June, virtually all the fresh-market, field-grown tomatoes in the country come from the Sunshine State, which ships more than one billion pounds every year. It takes a tough tomato to stand up to the indignity of such industrial scale farming, so most Florida tomatoes are bred for hardness, picked when still firm and green (the merest trace of pink is taboo), and artificially gassed with ethylene in warehouses until they acquire the rosy red skin tones of a ripe tomato.

Article suggestions for the Daily Digest can be sent to [email protected]. 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."

16 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4166
IMF cuts U.S. growth forecast, warns of crisis;Rare Earth Metals

"Prices of the rare earths used in lasers and plasma televisions more than doubled in the past two weeks as China tightens control of mining, production and exports, according to market researcher Industrial Minerals.

The cost of dysprosium oxide, used in magnets, lasers and nuclear reactors, has risen to about $1,470 a kilogram from $700 to $740 at the start of the month, Industrial Minerals said in an e-mailed statement. Europium oxide, used in plasma TVs and energy-saving light bulbs, has more than doubled.

China, supplier of 95 percent of the 17 elements known as rare earths, has clamped down on rare-earth mining and cut export quotas, boosting prices and sparking concern among overseas users such as Japan about access to supplies. The government may further reduce export quotas, pushing prices higher, Goldman Sachs & Partners Australia Pty said last month.

“China has long said it will consolidate the industry but it’s moving more rapidly than many observers anticipated,” said Dudley Kingsnorth, a former rare earths project manager and now chief executive officer of Perth-based advisory Industrial Minerals Co. of Australia. “There might be an element of speculation but I think the price rises have been driven by people who are desperate for the product.” "

"Food prices will remain higher in the next decade than in the past 10 years as agricultural production slows and demand increases, the OECD and the United Nations said in a joint report today.

Global farm output is forecast to grow an average 1.7 percent a year through 2020, compared with 2.6 percent in the previous decade, the Paris-based Organization for Economic Cooperation and Development and the UN’s Food and Agriculture Organization said in their annual Agricultural Outlook report.

“Slower growth is expected for most crops, especially oilseeds and coarse grains,” they said in the report. “The global slowdown in projected yield improvements of important crops will continue to exert pressure on international prices.” "

"The International Monetary Fund cut its forecast for U.S. economic growth on Friday and warned Washington and debt-ridden European countries that they are "playing with fire" unless they take immediate steps to reduce their budget deficits.

The IMF, in its regular assessment of global economic prospects, said that bigger threats to growth had emerged since its previous report in April, citing the euro zone debt crisis and signs of overheating in emerging market economies.

The global lender forecast that U.S. gross domestic product would grow an anemic 2.5 percent this year and 2.7 percent in 2012. In its forecast just two months ago, it had expected 2.8 percent and 2.9 percent growth, respectively."

  • Other news, headlines and opinion:

Portuguese Bonds Drop, Greek Yields Near Record on Default Bets

Spanish 10-year bond yields remain near 11-year high as Greek debt saga drags on

Fed's Balance Sheet Expands To $2.832T In Latest Week

Japan Should Raise Sales Tax To 15%: IMF

Japan eyes sales tax hike, using reserves for budget

Greek Govt Fall Would Be Big Step To Disorderly Default -Fitch Analyst

Greek debt tsunami could reach US shores

Greek default could trigger chain reaction

Greece may view euro exit, debt default as best option in financial crisis

Ireland Snubs ECB Effort to Avoid Meltdown With Threat on Bank Guarantees

ECB may not back losses for Anglo senior bondholders

Electricity hike planned to fund pensions (Ireland)

Spanish Regions' Debt Increased to Record in First Quarter

China One-Year Bond Sale Fails to Draw Enough Bids, Trader Says

Consumers Fade in China Economy Racked by Inflation With 'Peak Days' Gone

Brown Vetoes California Budget With a Pledge to Seek $9 Billion in Taxes and Brown vetoes budget, criticizes `gimmicks'

Some Harrisburg City Council members lean toward bankruptcy

Jefferson County layoffs begin; 546 to get pink slips

Flint district weighs 463 job cuts as it faces June 30 budget deadline

Downtown Sacramento office buildings in trouble

Moody's cuts Cook County, Illinois to Aa3 from Aa2

Social Security Cuts Loom Large

Mayors face bigger financial woes as states cut help

Gregoire signs budget that slashes education, health (Washington)

Greek Debt Default Ignored Renders European Bank Stress Tests ‘Irrelevant’

Inventory Overhang Means 6.5M New Households Needed

Analysis: High-frequency trade sparks flash fires in commodities

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1326
Completely missing the point.
Yuck Euro and the Oil Slick wrote:

Wages have not gone up (adjusted for inflation, since 1973), home prices have not gone up (since 1985), stocks have not gone up (since 2006) - just oil and gold and silver and other stuff that people like to hoard in hopes of making themselves even richer - even though it comes at the expense of EVERYONE ELSE IN THE WORLD.

What a load of crap!  I notice the article doesn't even notice food prices going up.

So why does this type of stuff keep getting posted?  It is completely obliterated from a logic standpoint by the Crash Course!  Things that preserve wealth from a corrupt banking and government sector and energy are going up in price.  Gee what a surprise...

Nope, it's only those evil rich people that are taking everything, no chance at all that we have ALL been living well beyond our means for quite sometime.  It's the attitude exhibited by this article that give me little hope that we will not see complete chaos and breakdown before all this is over.  When people can not take responsibility for their own actions, or the poor actions of society as a whole we will have scapegoats, persecution, and mass murder.

I know Chris tries to instill that we can choose a better life, but in order to do that we first have to face reality of dwindling resources, growing population, and the impact it will have on everyone.   I have little hope...

 

txgirl69's picture
txgirl69
Status: Bronze Member (Offline)
Joined: Apr 21 2009
Posts: 96
Missing it entirely

Rhare,

I'm with you. People just will not admit they are / have been part of the problem. No sense of responsibilty at all.... Inaccurate, incomplete reasoning.... I am so glad that when I discovered the CM site I had enough God given sense to look, listen and think about what is really going on.

I too have little hope....

Best wishes

Rita

doorwarrior's picture
doorwarrior
Status: Silver Member (Offline)
Joined: Oct 13 2009
Posts: 166
How will this affect climat change?

Fewer and fewer sunspots means less activity. Maybe even a cooler Earth.

http://www.space.com/11960-fading-sunspots-slower-solar-activity-solar-cycle.html

Rich

Aaron M's picture
Aaron M
Status: Diamond Member (Offline)
Joined: Oct 22 2008
Posts: 2369
If so..

I hope some of my long-standing debates with my friends in the AGW thread are recognized =D

I've been theorizing that solar activity is a more influential force than it's being given credit for.
The Solar Max/Min cycle has been, from my perspective, a bit irregular, and further, our understanding is based on very limited data.

Interesting stuff =D Maybe my Solar "seasons" theory isn't so far out.

Cheers,

Aaron

doorwarrior's picture
doorwarrior
Status: Silver Member (Offline)
Joined: Oct 13 2009
Posts: 166
Not far out at all

I have long thought that there was really no way for the "experts" to take data from the last  couple of hundred years and really be able to tell us our carbon was THE reason for temp changes on Earth.   I am not saying that burning fossil fuels does not have an impact, just that its not the only factor.

Sunspots were at a very low point in 2008 and 2009 and recent data has shown a drop in temps globaly from that time to current. However some scientist have changed the way they use these measurements  and cherry picked data to show a continued increase in temps. Either way if the sunspots calm down as predicted we may find out in a couple of years what the impact will be.(Yes I know that there are many factors that need to be taken into account not just the sunspots).

The Good News:   With the economy in the toilet we will use less oil and the world will be savedCool

Rich

maceves's picture
maceves
Status: Gold Member (Offline)
Joined: Aug 23 2010
Posts: 281
about tomatoes

A few years ago I was teaching English to migrant workers in the peach fields in South Carolina.  The working conditions were not good by our standards---

There was a core group of workers that had motel-type accomodations and a cooking/dining room that was primitive, but not too bad.  Then there were the seasonal workers who came in just to pick peaches.  They were living in what had been a long time ago a plantation house, but it had fallen into terrible disrepair.  The men had a kitchen and a living room, and the whole rest of the house was lined in bunk beds with sheets to make curtains for privacy.  We had our classes out on the porch; it was much more pleasant.

It was an all-male group, no women and no children.  The men worked from sunrise to sunset, except that the owners allowed the English classes twice a week and encouraged church participation.  They only got Mexican holidays, which conveniently did not come all summer.  There were no complaints--it was good healthy work and they were all making money to send somewhere else.

When the conversation came to where they were going to go next, the guys going up to Tennessee were happy enough, but the fellows going to Florida were not.  In Florida the work was going to be hard and hot.  They said that they were not treated well at all.  They might get cheated out of their wages and there was no support if something went wrong.  They said that some guys even ended up as slaves, especially the Guatamalans.  I remember being dumbstruck as I listened to this conversation.  They spoke of people they knew and what had happened to them.

Its easy to forget what goes into the food we eat.

Its also easy to forget that there are jobs out there that no one wants to do.

 

 

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
es2's picture
es2
Status: Bronze Member (Offline)
Joined: Dec 31 2010
Posts: 68
Wave of Unrest Rocks China

WSJ
Wave of Unrest Rocks China http://www.google.com/news/search?q=Wave+of+Unrest+Rocks+China
Japanese Nuclear Cleanup Workers Detail Lax Safety Practices at Plant http://www.google.com/news/search?q=Japanese+Nuclear+Cleanup+Workers+Det...
Rising Prices A Risk http://www.google.com/news/search?q=Rising+Prices+A+Risk+cheng

Economist 6/11/11
Greece's Deb Crisis: Bail-out 2.0 http://www.economist.com/node/18805433
The OPEC meeting: Drill Will http://www.economist.com/node/18805607
Disharmony at OPEC breeds uncertainty over the oil price

The man who screwed an entire country http://www.google.com/news/search?q=The+man+who+screwed+an+entire+country
The end of cheap goods? http://www.google.com/news/search?q=The+end+of+cheap+goods%3F

Forbes
Helicopter Ben And His QE Schemes. Haven't found a link yet, maybe not online yet.

Rector's picture
Rector
Status: Platinum Member (Offline)
Joined: Feb 8 2010
Posts: 509
Oh they will. . .they will. . .

Soon enough, there won't be any jobs "Americans won't do".  They will have the same outlook the migrant workers have because we are hitting the end of easy street and overconsumption.  I think it will do us some good, BTW.  A "high standard of living" where we consume a quarter of the world's resources so that our SUV's can idle in the parking lot, after driving 20 miles to Walmart, to buy a dozen doughnuts to feed our obese butts is not all its cracked up to be.  Our culture is collapsing inversely to our sense of entitlement and the size of our pants!

butterflywoman's picture
butterflywoman
Status: Bronze Member (Offline)
Joined: Oct 2 2010
Posts: 46
missing the pint

i agree with rhare too

people will however change when it becomes painful enough and not until, and of course, then it will be the mad rush for the few exits that exist.. i don't concern myself with people of that thought process anymore. i stay as far away from them as i can.

unfortunately we all know, when things shift...it's fragile enough out there that things will change quickly and " if ya aint' ready when it shifts, ya ain't ready.period."

chris has done a wonderful job  of walking us up to and thru the understanding of what is happening and how very real this all is.

a few have the insight to grasp what he is saying.

no one on the titanic thought it was sinking for sure.....til just before she went down.it human nature

molly brown said to  the rich spoil women in her lifeboat.that rowing would keep them warm and save their lives....they finally got it.

i think we will see similar responses as this unfolds

 

 

 

 

hacurio's picture
hacurio
Status: Member (Offline)
Joined: May 3 2011
Posts: 3
Alpha Mike wrote: I hope
Alpha Mike wrote:

I hope some of my long-standing debates with my friends in the AGW thread are recognized =D

I've been theorizing that solar activity is a more influential force than it's being given credit for.
The Solar Max/Min cycle has been, from my perspective, a bit irregular, and further, our understanding is based on very limited data.

Interesting stuff =D Maybe my Solar "seasons" theory isn't so far out.

Cheers,

Aaron

 

 

Not sure what to believe anymore. I Thought 2012 was actually going to be a solar Max and we were going to have lots of activity. If this new news is better than I am all for it, but I am not enough of an expert. Anyone would like to clear things up for me a bit more.

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Ragnorock or The Return of the Ice Giants.

We are all undone

If the only thing that will save us,

Is an unspotted sun.

maceves's picture
maceves
Status: Gold Member (Offline)
Joined: Aug 23 2010
Posts: 281
hot

You can say there's no global warming, but not if you live here in Georgia.

It's been hot, hot, and more hot.,

herewego's picture
herewego
Status: Silver Member (Offline)
Joined: Aug 11 2010
Posts: 151
"People just will not admit they are...part of the problem."

txgirl69, I'm thinking about your quote below:

"Rhare, I'm with you. People just will not admit they are / have been part of the problem.  No sense of responsibilty at all.... Inaccurate, incomplete reasoning."

I'm glad you could dig in and pay attention when the right information came along, and the rest of you as well.  Thank the Gods for you!  It was and still is quite an exercise for me to face the storm and my own complicity with this insane civilization.  I think it's asking a lot of the human personality to do this, even though we must or perish.  I'd say rather "People just CAN not admit they are/have been part of the problem."  We are so used to all kinds of entitlement and ignorance.  We do not know our own depth of heart or breadth of mind, in general.

It takes quality information, decision, nerve, self-trust, intelligence, persistence, a high tolerance for frightening unknowns and a lot of emotional resource to see what's going on.  It takes more of it all to act in big ways.  Not everyone has this kind of inner focus.  Not everyone can deal with the emotional impact of the information when they see it.  I'm not quite completely hopeless about our capacity as a species to face what is, because we may be acting as the thin edge of the wedge pyschologically.  Perhaps we few are discovering or building the emotional/intellectual package needed by our species to handle the situation.  Our increasing ability to think these thoughts makes them more thinkable by others.  Perhaps next year a LOT more people will be able to stay the course and "get it".  We are a bright species when we are awake!  Of course it is a flat-out race now....

OK.  Back to fixing the bloody rotten foundation of my new (um, ancient!)  "village homestead" cabin....  Talk about a tough learning curve!  Where is my cappucino?  Why can't I have a shower? 

Many thanks to you all, a most amazing, enlivening, informed and evolving community!

susan

 

doorwarrior's picture
doorwarrior
Status: Silver Member (Offline)
Joined: Oct 13 2009
Posts: 166
You can say there's no

You can say there's no global warming, but not if you live here in Georgia.

Never said it wasn't happening. I said it was unlikely that our carbon was the only cause.

Here in Vegas it has been exceptionaly cool this spring. One area can't tell the tale of a planet.

Rich

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments