Daily Digest

Daily Digest 10/12 - Farm Economy Bounces Back, New England Sets Power Use Records, North Sea Oil Twilight

Tuesday, October 12, 2010, 11:23 AM
  • Farm Belt Bounces Back
  • US Drops From First To Seventh In Average Wealth Per Adult, Behind Singapore, Sweden, And... France
  • Is Ireland About To Impair Bank Senior Debtholders (And Boldly Go Where America Was So Terrified To Venture)?
  • Bernanke sets the world on fire
  • The Coming Middle-Class Anarchy
  • Inside Job: The Movie
  • Rethinking That Round-Earth Idea
  • New England Sets New Records In Electricity Use
  • Cline Talking Clean as Coal Mines Supply Most Energy Since 1970
  • Electric Cars: A Sparky New Motor
  • North Sea Oil: Striking The Set
  • Crude Awakening
  • Local Lobstermen Worried Major Die-Off Under way

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Economy

Farm Belt Bounces Back (Adam)

Major agricultural commodities continued their extended run-up in price, underscoring how much of America's farm belt is booming even as the overall economy continues to struggle.

Contracts for the delivery of corn and soybeans into mid-2011 jumped Monday by 5% and 2%, respectively, after rising their daily permissible limits on Friday, when the U.S. Department of Agriculture sliced production estimates by small percentages. Cash cotton prices rose 3.3% Monday after a 3.9% gain Friday. They are 86% higher than a year ago.

US Drops From First To Seventh In Average Wealth Per Adult, Behind Singapore, Sweden, And... France (pinecarr)

As if we needed more warnings that the US is rapidly losing its position as the world's superpower and wealth aggregator, is the following chart from Credit Suisse, which ranks the top 10 countries in the world in terms of average wealth per adult.

Is Ireland About To Impair Bank Senior Debtholders (And Boldly Go Where America Was So Terrified To Venture)? (pinecarr)

The biggest piece of news this evening is, surprisingly, not the latest monsoon season suddenly to hit Manhattan, but comes from a few thousand miles to the East, out of Ireland to be specific, where we learn via the FT that the country "has opened the door to a renegotiation with senior bondholders of its two nationalised banks despite previously opposing any such move for fear of drawing the wrath of creditors around the world."

Bernanke sets the world on fire (pinecarr)

While we worry about food price inflation, the Fed with its obsession on core inflation dismisses any talk of inflation. Fed governors should do their family grocery shopping and then talk. They should talk to ordinary Americans and see what they say about food prices after each visit to the supermarket.

Obviously, when the Fed injects $2 trillion, or more, of paper money to the economy it does not add even one gram of corn or one drop of oil. It creates huge amount of money out-of-thin air. Its action immediately alters wealth and income distribution and distorts prices. The size of distortions is directly related to the quantity of liquidity; the more liquidity is brought in, the more severe the distortions. The Fed grabs real wealth from one group and redistributes to another group in the name of complying with its mandate to create prosperity and jobs.

The Coming Middle-Class Anarchy (Gonzalo L.)

Even after the Global Financial Crisis had seriously hurt their retirement nest egg—and therefore their monthly income—and even fully aware that they would probably not live to see their house regain the value it has lost since they bought it, they kept up the mortgage payments. The idea of them strategically defaulting is as absurd as them sprouting wings.

Inside Job: The Movie (Regina F.)

A film produced, written & directed by Academy Award nominated filmaker Charles Ferguson documenting the shocking truth behind the economic crisis of 2008.

Rethinking That Round-Earth Idea (Ilene)

So investors in the US discuss Quantitative Easing as if we can simply devalue the dollar and every other country on Earth has no choice but to bend over and accept our worthless currency because they are lucky we even bother to trade with them. To most Americans, it's still 1950 and we just won the war and Europe better kiss our ass and the rest of the World better fear us or they're NEXT. That pretty much sums up our next 50 years of diplomacy, doesn't it?

Energy

New England Sets New Records In Electricity Use (joemanc)

Despite the weak economy, electricity consumers in New England have set new records for power use. ISO-New England, the Holyoke-based grid operator for the region, says peak demand hit record levels in May and September. The region also set an all-time record in electricity consumption for one month in July.

Cline Talking Clean as Coal Mines Supply Most Energy Since 1970 (Adam)

With maps of 675 square miles of his Illinois mines before him, Chris Cline recalls the moment he knew the coal in those mines would be worth billions of dollars.

If you’ve never heard of Cline, it may be because he’s making his fortune far from Wall Street on the Illinois prairies -- by digging up a rock humans have used for fuel since the Bronze Age.

Electric Cars: A Sparky New Motor (jdargis)

The first mass-market electric cars are now arriving in showrooms in America, Europe and Japan (see table). They come in three flavours. Pure electric vehicles like Nissan’s Leaf can be driven for 150km or so before they need to be recharged for six to eight hours. Range-extenders like GM’s Volt (the Ampera in Europe) are powered by an electric motor that can be recharged either from the mains or by an on-board internal-combustion engine. Then there are familiar hybrids like the Toyota Prius, now being adapted to take a charging cord and with a longer electric-only range.

North Sea Oil: Striking The Set (jdargis)

Strict laws forbid dumping the platforms at sea; instead they must be brought back to shore for disposal. That means a bonanza for the engineering firms, ship operators and breaker’s yards that will do the work. The scale of the job is enormous: the biggest platforms are over 300 metres high (taller than the Eiffel tower) and weigh over 20,000 tonnes. Four new decommissioning vessels are being built by specialist firms to handle these enormous structures; one—the Pieter Schelte, part-designed by Swan Hunter, a British shipbuilder, for the Swiss firm Allseas—will be a 382-metre, $1.7 billion monster capable of lifting a staggering 48,000 tonnes.

Crude Awakening (jdargis)

According to Goldman Sachs, world demand in the first eight months of the year was 2.7m bpd higher than in the same period in 2009. On October 6th WTI rose above $83 a barrel, a five-month high, and retreated only slightly after reports of a surprising increase in American stockpiles. In the short term the price could get another boost from rising stockmarkets. Before the crisis oil prices tended to move in the opposite direction to equities (higher prices mean higher costs for energy-consuming firms).

Environment

Local Lobstermen Worried Major Die-Off Under way (joemanc)

Some local lobstermen say a lobster die-off is under way in western Long Island Sound, the likes of which they haven't seen since their industry was decimated beginning in the fall of 1999 when 95 percent of the lobsters in the Sound died. "It is a repeat of 1999," said Darien lobsterman Roger Frate, president of the West End Long Island Sound Lobster Association. "We had these things coming back. We had a nice summer, then the rain started."

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."

10 Comments

Ivo's picture
Ivo
Status: Bronze Member (Offline)
Joined: Jan 26 2009
Posts: 71
Re: Daily Digest 10/12 - Farm Economy Bounces Back, New ...

In reference to the "Rethinking That Round Earth Idea", and especially the link 'it's not a joke' to a Youtube clip of unbelievably ignorant Americans: I once flew from New York to London and while descending on Heathrow, the pilot did his final talk. Of course he says something like "welcome in the UK" or words to that effect. At that point the elderly American lady sitting next to me starts asking around: "What's the UK?". I'm not making this up. While I'm screaming in my head: "You're going there!!!", another, younger, American woman answers: "I don't know". True story. A sad one, really.

rjs's picture
rjs
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Posts: 445
Re: Daily Digest 10/12 - Farm Economy Bounces Back, New ...

Foreclosure Fraud For Dummies, Part 5: (This is a series giving a basic explanation of the current foreclosure fraud crisis: Here is Part One, Part Two, Part Three, Part Four and this is Part Five.)

jhart5's picture
jhart5
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Re: Daily Digest 10/12 - Farm Economy Bounces Back, New ...

10 Reasons Why Ordinary Hard-Working Americans Are About To Really Start Feeling The Squeeze

American families better get ready to tighten their belts again.  There is every indication that we are all going to really start feeling the squeeze in the months ahead.  The price of gas is starting to spike again.  The price of food is moving north.  Health insurance premium increases are being announced coast to coast and a whole slate of tax increases is scheduled to go into effect in 2011.  Meanwhile, household incomes are down substantially all over the nation and the U.S. government is indicating that there will not be an increase in Social Security benefits for the upcoming year once again.  So if the cost of most of the basic things in our monthly budgets is going up and our incomes are going down what does that mean?  It means that average American families are about to be squeezed like nothing we have seen in decades.

http://vinceseconomicblog.wordpress.com/2010/10/12/10-reasons-why-ordinary-hard-working-americans-are-about-to-really-start-feeling-the-squeeze/

jhart5's picture
jhart5
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Posts: 89
Re: Daily Digest 10/12 - Farm Economy Bounces Back, New ...

Government Prepares To Seize Private Pensions

Massive wealth confiscation program would replace 401(k) system with Social Security-run ponzi scheme.

The government is preparing to seize the private 401(k) pensions of millions of Americans while enforcing an additional 5 per cent payroll tax as part of a new bailout program that will empower the Social Security Administration to redistribute pension funds in a frightening example of big government gone wild.

Public pension plans have been so aggressively looted already by the government that cities and counties face a $574 billion funding gap, according to a CNBC report.

That black hole is set to be filled by a new proposal that will “fairly” distribute taxpayer-funded pensions to everyone, by confiscating the private wealth of millions of Americans. Its proponents express staggering arrogance in thinking that they can just steal money people have worked for decades to accrue as if it’s their own.

Not only would the government confiscate 401(k) pensions, it would also impose a mandatory 5 per cent payroll tax payable by everyone, according to a hearing chaired last week by Sen. Tom Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee

Paul Joseph Watson

http://vinceseconomicblog.wordpress.com/2010/10/12/government-prepares-to-seize-private-pensions/

Damnthematrix's picture
Damnthematrix
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Posts: 3998
Re: Daily Digest 10/12 - Farm Economy Bounces Back, New ...

Sydney Anglicans reveal extent of financial woes

http://www.abc.net.au/news/stories/2010/10/13/3036853.htm?section=justin

Parishioners may be asked to bail-out the Sydney Anglican Church as the depth of the losses suffered by its central fund come to light.

The Archbishop, Peter Jensen, has told the annual synod up to $100 million has been lost from the funds portfolio because of the global financial crisis and management issues.

The Bishop of South Sydney, Robert Forsyth, says the parishes are in a healthy position at present and it is possible they may be asked to lend a hand.

"At the moment no money from the parishes goes to pay for the head office," he said.

"We may have to possibly ask for a small levy from parishes.

"But as present nothing you put on the Sunday plate comes to us at head office - that's the theory, that we have our own fund."

Damnthematrix's picture
Damnthematrix
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Re: Daily Digest 10/12 - Farm Economy Bounces Back, New ...

« There Are No Words To Describe The Following Part II »

mobius's picture
mobius
Status: Silver Member (Offline)
Joined: May 18 2009
Posts: 160
Re: Daily Digest 10/12 - Farm Economy Bounces Back, New ...

For what it is worth...two headlines from the FT about the world's favorite search engine.

Google to invest in wind power

The company said that it would join forces with Good Energies and Japan’s Marubeni Corporation to finance the project that will create miles of underwater cables to transport energy from wind farms to US cities.

http://www.ft.com/cms/s/2/8391ec0c-d5fe-11df-94dc-00144feabdc0.html

Google to map inflation using web data

While the Federal Reserve is unlikely to panic just yet, Mr Varian said that the GPI shows a “very clear deflationary trend” for web-traded goods in the US since Christmas. Although the data are not seasonally adjusted, Mr Varian said that prices rose during the same period a year ago. The ‘core’ CPI in the US, which excludes food and energy, rose 0.9 per cent on a year ago in August. [...]

Mr Varian also discussed some of his other work on using Google’s search data for economic forecasting. He said that he is working on “predicting the present” by using real-time search data to forecast official data that are only released with time lags.

 For example, searches for “unemployment insurance” may be a good tool to predict actual claims for unemployment insurance, or the unemployment rate.

http://www.ft.com/cms/s/2/deeb985e-d55f-11df-8e86-00144feabdc0.html

 

 

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1443
Re: Daily Digest 10/12 - Farm Economy Bounces Back, New ...

Mike,

That took place over a year and half ago.  This went viral then.  It's old news really.  I was reading the comments and found hardly anyone knew this took place back then!  Scary!  I sent this out to all of my contacts back when it took place....pretty funny it's coming around again.  

For anyone that sends this out, you may want to make sure you state it's OLD.

Thanks Mike for bringing to the fore again!

It still cracks me up!

Jasenica's picture
Jasenica
Status: Bronze Member (Offline)
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Posts: 35
Re: Daily Digest 10/12 - Farm Economy Bounces Back, New ...

Where is Saxplayer's daily contribution?

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4060
Re: Daily Digest 10/12 - Farm Economy Bounces Back, New ...

 

Jasenica:

I probably should have reposted. It was posted at the end of yesterday's news, since I had to leave early (before the DD for today was up):

 

 

"Big US cities could be squeezed by unfunded public pensions as they and counties face a $574 billion funding gap, a study to be released on Tuesday shows.

The gap at the municipal level would be in addition to $3,000 billion in unfunded liabilities already estimated for state-run pensions, according to research from the Kellogg School of Management at Northwestern University and the University of Rochester.

“What is yet to be seen is how this burden will be distributed between state and local governments and whether the federal government will be called upon for bail-outs,” said Joshua Rauh of the Kellogg School. "

......................1A) Philadelphia, Chicago and Boston Are University Study's Worst-Off Pensions

.......................1B) Municipal Pension Tabs Average $15000 Per Household

"General Electric Co. Chief Executive Officer Jeffrey Immelt said rising health-care costs in the U.S. may force companies to move jobs overseas, and he urged the government and employers to work together to trim expenses."

"“If health care gets to be greater, I’m going to have to move jobs out of this country. I have no choice.” Immelt said. “All the big companies that have lots of retirees and big health-care plans -- we have no choice.” "

"A record number of teachers, police officers and other public employees are retiring this year as Gov. Chris Christie's plans to overhaul pension benefits have many workers fearful of their future security.

But the rush to retirement has added new stress to the state's financially strapped pension systems.

As of Sept. 1, at least 16,400 public employees have retired this year. Those retirements will cost the state an additional $638 million in pension benefits, according to an Asbury Park Press review of state pension data.

By comparison, the state's pension rolls include 12,254 people who retired in 2009. There are approximately 466,000 government workers and teachers in the state."

"A halt in home foreclosures at the largest U.S. mortgage firms may sideline buyers worried about legal issues, further depressing sales at a time when distressed properties account for almost a quarter of all transactions.

Revelations of mistakes in foreclosure proceedings are causing buyers to have misgivings about property titles, the right of home possession, said Richard DeKaser, chief economist at Woodley Park Research in Washington. Confidence in the legality of repossessions will cut foreclosure sales more than a reduction of available properties because the market already is flooded with repossessed homes, he said.

“The legal problems we’re seeing will hit sales as people worry about the legitimacy of the process,” DeKaser said. “The implications are that there’s been shoddy work.” "

....................4A) Google news search on the term "Title Insurance" (Must read)

 

  • Other news, headlines and opinion:

Ireland open to talks on senior debt - finance minister

Above target inflation piles pressure on BoE

Treasuries Rise as Goldman Says Job Losses Will Spur Fed to Buy More Debt

Fed's Yellen acknowledges risks to ultra-low rates

Thailand sets debt tax to curb inflows and Asia stiffens resolve to resist capital inflows

Moody's see higher losses for RMBS senior noteholders from foreclosure halts

10,000 Wait In Line At Cal Expo In Bid To Save Their Homes

Bangladesh stock market boom fuels dire warnings

Maturity 'Wall' Dwarfs European Junk Bond Market, Moody's Says

Wall Street Pay: A Record $144 Billion

Bubble Warning as Low Yields Spur Tinkoff Rally: Russia Credit

Harrisburg's Entry Into State Program May Not Cure Its Ills

SF, Oakland buildings among 11 sold by state for $2.33B (California) and State building sales may cost tax payers more

Medicaid among Wisconsin's fastest-rising costs (Includes graphs of rising costs)

Obama renews push for $50-billion infrastructure program

Glendale saddled with $500 million in sports-district debt (AZ)

Further Fed Easing Writes The Dollar's Epitaph (Peter Schiff)

Christie to Sell $1.4 Billion Transport Bonds as Hudson Tunnel Imperiled

Two Pittsburgh councilmen want state to run pensions

Irish Swap Finance for Food as Economy Returns to Rural Roots

Noda Says Japan Ready to Take `Bold' Action When Yen Hits New 15-Year High

Marc Faber Says World Heading for `Major Inflection Point'

Did Too Many FHA Buyers “Borrow Forward?”

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