Daily Digest

Daily Digest 10/14 - On The Cusp Of Collapse, The 65-Year Debt Bubble, Test Results On Strontium-90 In Yokohama

Friday, October 14, 2011, 9:44 AM
  • The Euro Is Dead. Long Live The Euro
  • On The Cusp Of Collapse: Complexity, Energy And The Globalised Economy
  • The 65 Year Debt Bubble and a New Financial System
  • Premier Makes An Opportunistic Grab for Encore Oil
  • Total, Statoil Spearhead $38 Billion North Sea Investment
  • Pentagon Unveils Sweeping Energy Strategy
  • The Military's Conversion To Renewables Will Save Soldier's Lives
  • Japanese Government Planning to Build Hydrocarbon Reserves
  • Test Result on Strontium-90 Detection in Yokohama

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Economy

The Euro Is Dead. Long Live The Euro (Joe P.)

Although the debate should be playing out mostly in the spreads in the bond markets, i.e. the difference between the cost of borrowing between the stronger and weaker Eurozone countries (with respect to banks, both their debt portfolio and stock market valuations have been guides in assessing their perceived health), the Euro tends to also be the focus of attention. As the Euro was plummeting towards 1.18 versus the U.S. dollar in 2010, we became outspoken ‘euro bulls’, arguing that issues in the Eurozone should primarily be reflected in the spreads in the bond market; the Euro was sold – in our view – mostly because of its great liquidity: it’s easier to sell the Euro rather than short peripheral country bonds. Indeed, the Euro since recovered substantially, while periphery nation spreads have widened.

On The Cusp Of Collapse: Complexity, Energy And The Globalised Economy (Debu)

Just as we never consider the ground beneath our feet until we trip, these glimpses into the complex webs of inter-dependencies upon which modern life relies only come when part of that web fails. When the failure is corrected, the drama fades and all returns to normal. However, it is that normal which is most extraordinary of all.

The 65 Year Debt Bubble and a New Financial System (James S.)

There is a close link between growing debt and growing GDP. GDP growth is a gross measure; it does not take into account the amount of debt required to finance this growth. The increasing level of debt since 1945 has enabled economic growth to be higher than it otherwise would be, and has allowed the US to buy goods and services from abroad that we could not otherwise afford. If high oil prices cause economic contraction, as I believe is the case, we may see the situation reverse itself. Instead of rising debt leading to growing GDP and growing imports, we may instead see shrinking debt leading to declining GDP and declining imports.

Energy

Premier Makes An Opportunistic Grab for Encore Oil (ScubaRoo)

The timing of the deal means that even with a 55% premium, the offer is still less than half of the trading price of Encore Oil earlier in the year, which hit a year high of £1.51 in February. Despite this, there are numerous positives for the Encore shareholders, one being that they can elect to receive Premier Oil stock as consideration.

Total, Statoil Spearhead $38 Billion North Sea Investment (ScubaRoo)

“The pipeline of new projects and developments likely to go ahead offshore U.K. is looking healthy,” Wood Mackenzie said in the report. “However, maintaining this pipeline at current levels will require significant exploration success and continued investment.”

Pentagon Unveils Sweeping Energy Strategy (April)

The strategy is a formal step forward in a broad effort by senior Defense officials to cut the military’s dependence on oil and expand its use of alternative energy, as troops lose their lives protecting fuel convoys trucked through Afghanistan and soaring oil prices drive up the Pentagon’s energy bills. The U.S. military is the single largest industrial consumer of oil in the world. In 2010, it spent $13 billion on fuel; in 2008, when oil prices reached a record of $147 a barrel, the military spent nearly $20 billion.

The Military's Conversion To Renewables Will Save Soldier's Lives (April)

Guarding the fuel trucks that power America's armed forces overseas has turned into a deadly job.

Japanese Government Planning to Build Hydrocarbon Reserves (James S.)

Ministry of Economy, Trade and Industry head Yukio Edano said in a meeting with Akihiko Tembo, chairman of the Petroleum Association of Japan, that the government was considering how to diversify Japan's oil reserves to prevent a recurrence of the gasoline shortages seen after the March disaster in Fukusjima, in areas devastated by the March 11 earthquake and tsunami centered on Fukushima prefecture, which devastated Tokyo Electric Power Company’s Daichi nuclear reactor complex in Fukushima.

Environment

Test Result on Strontium-90 Detection in Yokohama (guardia)

The ratio of strontium-90 to cesium-137 in this case is about 0.58%. In comparison, the same ratio from the samples taken in Fukushima Prefecture was between slightly less than 0.1% to 8.2%. In other words, the ratio varies too much to discern any pattern.

Yokohama City has said it is testing for strontium in the sample taken from the same apartment rooftop but with much higher cesium density (105,600Bq/kg total cesium). But remember there was no official announcement about this high cesium detection because "the apartment building is a private property", according to the city. We'll see if Yokohama will announce anything about strontium-90.

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10 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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guardia's picture
guardia
Status: Platinum Member (Offline)
Joined: Jul 26 2009
Posts: 592
Radiation all over Japanese news (repost)

Just a repost from yesterday's DD (just a few hours for me :) because frankly, this is getting scary. Here are this week's headlines from this site http://ex-skf.blogspot.com/

Samuel

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4240
US to Play 'Very Major Role' In Helping Europe: Geithner

 

"The U.S. plans on being an active partner as efforts intensify to get Europe get back on its feet financially, Treasury Secretary Timothy Geithner told CNBC Friday.

With global leaders preparing for next month's G-20 summit in Cannes, France, the International Monetary Fund — of which the U.S. is the greatest contributor — is being relied on to help underwrite whatever efforts are needed to backstop toxic European sovereign debt.

Geithner said the IMF has "very substantial" resources to fund a device that could look like the Troubled Asset Relief Program, which helped navigate American financial institutions through the crisis in 2008 and 2009.

"Through the IMF, of course, we're already playing a very major role," he said in a live interview in Paris. "We're happy to see the IMF continue to play that role in support of a more forceful, comprehensive strategy where Europe's own resources—very ample resources—are deployed on a much more substantial scale.""

 

littlefeatfan's picture
littlefeatfan
Status: Silver Member (Offline)
Joined: Jul 20 2009
Posts: 141
3E Links, Resources and Cartoons Weekly Summary

Expanded Special "A Shock is Coming?" Edition posted at http://3es.weebly.com/

Also, If you liked George Carlin don't overlook Lee Camp.......

 

 

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Anyone near Philadelphia?

Anyone near Philadelphia, Pennsylvania?

A new company called Cold Fusion Energy, Inc has procured a booth at the World Green Energy Symposium to be held in Philadelphia, Pennsylvania, USA this upcoming Wednesday, Thursday, and Friday October 19, 20, and 21.

Attending the Symposium will be scientists and researchers involved in green energy, sustainability experts, industry leaders and top government officials from countries around the globe. Representing the cold fusion field will be Peter Hagelstein, electrical engineer at Massachusetts Institute of Technology and cold fusion theorist. Joining him are Georgy Miley, a nuclear and electrical engineer from University of Illinois, and Xing Zhong Li, a fusion physicist from Tsinghua University in Beijing, China and current President of the International Society of Condensed Matter Nuclear Science ISCMN.

From here.

I could not be further from there without leaving the planet.

It is my responsability to interview Star Scientific in Sydney, and for that exercise I have bought a BMW1200LT. (No, not new, silly.) for transport. I do the interview and then have a longish trip back to Esperance.WA.

So don't winge.

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3200
Nice ride
Arthur Robey wrote:

Anyone near Philadelphia, Pennsylvania?

A new company called Cold Fusion Energy, Inc has procured a booth at the World Green Energy Symposium to be held in Philadelphia, Pennsylvania, USA this upcoming Wednesday, Thursday, and Friday October 19, 20, and 21.

Attending the Symposium will be scientists and researchers involved in green energy, sustainability experts, industry leaders and top government officials from countries around the globe. Representing the cold fusion field will be Peter Hagelstein, electrical engineer at Massachusetts Institute of Technology and cold fusion theorist. Joining him are Georgy Miley, a nuclear and electrical engineer from University of Illinois, and Xing Zhong Li, a fusion physicist from Tsinghua University in Beijing, China and current President of the International Society of Condensed Matter Nuclear Science ISCMN.

From here.

I could not be further from there without leaving the planet.

It is my responsability to interview Star Scientific in Sydney, and for that exercise I have bought a BMW1200LT. (No, not new, silly.) for transport. I do the interview and then have a longish trip back to Esperance.WA.

So don't winge.

I am so jealous.  Don't forget where you live and wander off on a long detour.

Doug

thatchmo's picture
thatchmo
Status: Gold Member (Offline)
Joined: Dec 14 2008
Posts: 476
Sweet scoot, Art.  Where

Sweet scoot, Art.  Where you gonna moor it?  In these troubled times, I'm thinking maybe it's just fine to grab that long-lusted-for toy (tool?) before it's too late.  Good move.  Aloha, Steve.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
It is paid for.

before it's too late

(Thatchmo)

My Mother is the last of her generation. Her sister is dying and Mother has gone blind. Old age is not for sissies.

I had an inflationist moment when I thought that my money is best spent on things. Now I am in the deflationist camp. I flounder about in the dark.

The bike is an enabling tool. Who believes that?

In future only the uber rich fly.

There was a farmer who had a bumper harvest. He planned to build a large grainary and said to himself  "I shall place all my grain in there and never be hungry again." That night he died.

thatchmo's picture
thatchmo
Status: Gold Member (Offline)
Joined: Dec 14 2008
Posts: 476
future of flight...

Ummm.....a new motorcylcle.  Sometimes you just have to take a nice refreshing soak in normalcy bias!  For me, most recently, it was a(nother) new (used) boat (outboard-powered).  I wonder about the future of mass air travel.  Uncertain?  Along that line, like you, I'm thinking of aquiring a sailboat- to "commute" 'tween Hawaii and Alaska.  Amazing lives....Aloha, Steve.

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