Daily Digest

Daily Digest 11/19 - China Curbs Inflation, Oil Shock in UK, Fuel Economy Hits Record

Friday, November 19, 2010, 12:00 PM
  • IMF Says Hong Kong Property Prices May Spur Slump
  • Dollar Slips as Bernanke Defends Easing
  • China Takes Moves to Curb Inflation
  • Oil Shock Warning for UK Government
  • Alaskan Court Accuses BP of Criminal Negligence
  • Cold Comfort as Energy Prices Increase Again
  • As Things Fell Apart, Nobody Paid Attention
  • Fuel Economy Fleetwide in U.S. at Record Levels

Help your finances weather a tumultuous economy by reading our 'What Should I Do?' guide

Economy

IMF Says Hong Kong Property Prices May Spur Slump (johan)



The International Monetary Fund said Hong Kong’s accelerating asset inflation risks causing a bust that leads to deflation and an extended economic “downturn,” and urged further measures to rein in property prices. “Depending on the amplitude of the upswing, the resulting downturn could prove both protracted and painful,” the IMF said in a report today. The government should consider increasing stamp duties on housing and taxes on owners of higher-end properties if prices continue to rise, it said. Hong Kong home prices have climbed about 50 percent since the start of last year, surpassing a 1997 peak that was followed by a six-year deflationary slump.

Dollar Slips as Bernanke Defends Easing 



“Fully aware of the important role that the dollar plays in the international monetary and financial system, the [Federal Open Market Committee] believes that the best way to continue to deliver the strong economic fundamentals that underpin the value of the dollar, as well as to support the global recovery, is through policies that lead to a resumption of robust growth in the context of price stability in the United States,” Bernanke said in a speech delivered at a conference at the European Central Bank. The Fed released the text of the speech late Thursday night in Washington. Bernanke also implied that China’s decision not to allow the yuan to rise more rapidly has essentially thrown a wrench into the global economic recovery.

China Takes Moves to Curb Inflation



The Chinese central bank on Friday raised capital reserve requirements for its banks for the fifth time this year in order to “appropriately control” credit and liquidity. Meanwhile, the Hong Kong government significantly raised the stamp duty on residential property transactions to damp property speculation. The People’s Bank of China said the proportion of deposits to be set aside by banks should increase by 50 basis points to 18.5 per cent for large banks, the highest level ever. The widely expected move comes on the heels of figures that showed consumer price inflation in China jumped last month to 4.4 per cent – well above the government’s target of 3 per cent – amid sharp rises in the price of some foods.

Energy

Oil Shock Warning for UK Government (suzie)



The cost of food, heating, travel and retail goods will all rise if there is not a ‘strong and coordinated response’ from government to act against rising oil prices, an industry group has warned. The report from a group including Richard Branson’s Virgin, Kingfisher and Stagecoach Group calls for a ‘contingency plan’ to address the risk of Peak Oil – the point at which oil production plateaus and then drops. The Industry Taskforce on Peak Oil & Energy Security says ‘we are running out of time’ to protect the UK economy and make the necessary switch to sustainable energy sources. It has previously warned that peak oil could come potentially by 2015.

Alaskan Court Accuses BP of Criminal Negligence 



In a petition filed Wednesday in a U.S. District Court, federal probation officer Mary Frances Barnes accused BP of criminal negligence in its conduct prior to another North Slope oil spill in November 2009. That, she wrote, constituted a violation of the probation conditions set in 2007 for the earlier spill. U.S. Judge John D. Roberts ordered BP to appear in federal court in Anchorage on Dec. 20 in connection with the petition. BP said it would answer the government's legal filings in due course. The move piles the pressure on the U.K.-based oil giant, which is already under intense scrutiny over its role in the Deepwater Horizon disaster earlier this year. A report from a team of technical experts this week concluded that BP suffered from an "insufficient consideration of risk" and a "lack of operating discipline" that contributed to the disaster, which touched off the worst offshore oil spill in U.S. history.

Cold Comfort as Energy Prices Increase Again 



Gas and electricity pundits have moved from elation to despair in the past few weeks, after EDF Energy's announcement of a winter price freeze was followed by a 7pc energy price rise from former state provider British Gas. Scottish & Southern Energy also lifted its gas prices by a huge 9pc. Rivals are expected to follow suit, although none had done so at the time of going to press. EDF has now confirmed that the price freeze will apply to its cheapest web tariff. Despite EDF's plans, the picture looks gloomy for the average customer. We already owe a collective £1.1bn to the energy companies, and this figure is likely to rise as the temperature drops.

As Things Fell Apart, Nobody Paid Attention (jim)



There are consequences to every action. There are also consequences to every inaction. Over the next decade Americans will experience the dire consequences of inaction. The implications of peak cheap oil have been apparent for decades. The Department of Energy was created in 1977. The Department of Energy’s overarching mission was to advance the national, economic, and energy security of the United States. In 1970, the U.S. imported only 24% of its oil. There were 108 million motor vehicles in the U.S., or .53 vehicles per person in the U.S. Today, the U.S. imports 70% of its oil and there are 260 million vehicles, or .84 vehicles per person. The land of the delusional has no inkling that their lives of happy motoring are winding down. The vast majority of Americans believe that oil is abundant and limitless. Their leaders have lied to them. They will be completely blindsided by the coming age of hardship.

Fuel Economy Fleetwide in U.S. at Record Levels



The EPA is tasked in part with getting the automotive industry in the U.S. to meet standards on fuel economy. The goal of the standards is to not only reduce the nations need for foreign oil, but to reduce the amount of pollution that is produced by cars that burn more fuel. According to the EPA, the fuel economy in the overall vehicle fleet in the U.S. during 2009 hit a record high. The overall fuel economy has increased 1.4 mpg to 22.4 mpg, the highest overall fuel economy rating in the U.S. since the EPA starter tracking fuel economy overall line 1975. The overall fleetwide average fuel economy for 2010 year model vehicles is expected to grow to 22.5mpg.

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."

36 Comments

saxplayer00o1's picture
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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

"Washington state tax collections are down again, swelling the budget deficit by more than $1 billion over the next two-and-a-half years as lawmakers grapple with recent voter rejection of higher taxes.

Thursday's state revenue forecast from chief economist Arun Raha adds another $385 million to the hole in the current year's state budget, which runs through June 2011."

................................1A) State's projected deficit swells to $5.7 billion

Washington

2) New York City Will Cut Workforce by 10000 to Narrow $3.3 Billion Deficit

"New York City, facing a $3.3 billion deficit in next year’s budget, will cut its workforce by more than 10,000 over the next year-and-a-half, Mayor Michael Bloomberg’s budget office reported.

More than 6,200 workers will be fired, and the remaining cuts will be accomplished by attrition, the mayor’s office said today in a report. The city, which employs more than 300,000 people, will reduce the number of workers by 2,100 in the current fiscal year, which ends June 30, and by about 8,200 in fiscal 2012, the mayor’s office said. "

............................2A) NYC May Cut Assumed Return Rate on Pensions, Liu Says

"Nov. 18 (Bloomberg) -- New York City may reduce the assumed return on its $100.5 billion of pension investments from the current 8 percent rate, Comptroller John Liu said today.

The move would increase the amount of money the city must contribute to its five public retirement plans even as it faces a $2.4 billion budget deficit next year, Liu said after a speech at the Union League Club in Manhattan. The city’s pension costs are expected to rise more than 15 percent next year, to $8.3 billion, budget director Mark Page said today. That’s about 20 percent of municipal tax revenue, he said"

"Closed-end funds that invest in municipal bonds declined as California sold $10 billion of short-term notes at yields higher than the state anticipated. "

"California sold $2.25 billion of debt due in May at a yield of 1.5 percent, up from 1.25 percent quoted to investors yesterday, Treasurer Bill Lockyer said. The state sold $7.75 billion of notes due in June at 1.75 percent, up 0.25 percentage point from yesterday, he said."

.........................3A) State must pay out more in interest on short-term borrowing

"Romania rejected all bids in an auction of five-year bonds as investors sought higher yields after the government this month dropped a 7 percent yield cap and signaled it may sell Eurobonds on the domestic market.

The Finance Ministry planned to raise 300 million lei ($95 million) in the auction, which attracted bids totaling 790 million lei, the central bank said on its website. The Balkan nation sold 200 million lei in five-year bonds on Oct. 21, the first sale since July, at an average yield of 7 percent.

The country struggled since July to find buyers for its leu-denominated debt on the domestic market as investors pushed for higher yields amid rising inflation forecasts triggered by a government increase in a value-added tax. "

"SOUTH PASADENA - The state is digging into the city's pockets to help close an estimated $26 billion deficit.

Like every other city in the state, South Pasadena has had to increase the fine on parking tickets by $3 to off set a increased fees imposed by the state in the wake of an unprecedented budget crisis.

The city stands to lose $28,000 without the increase, said Police Chief Joe Payne at Wednesday's city council meeting. The increase will go into effect on Dec. 7 and last through July 2013.

"Part of the budget agreement in the state of California legislature includes Senate Bill 857," Payne said. "Designed to raise or collect $3 for every parking citation in the state."

City documents say the bill is "aimed at ending California's record budget impasse and closing a $19 million deficit" at the time.

Common city parking citation fees are currently $45, said South Pasadena Captain Richard Kowaltschuk. Those citations will now run $48. "

"The government will collect $2.3 trillion in taxes this year. That's well short of the $3.6 trillion it will spend. Fifty-five percent of that spending will go to mandatory expenses like social security, Medicare and Medicaid; 43 percent is called discretionary spending. That's money Congress controls and allocates to more than two dozen government departments. Two percent of the budget goes to Congressional pet-projects or earmarks.

"Everybody wants to cut the budget," Schieffer says. "They just don't want to cut the budget that affects their constituents."

Over the last 40 years, the U.S. has stayed out of the red just four times. This year's budget deficit will be the biggest ever: $1.5 trillion. Digging ourselves out requires tough choices. "

"Irish prime minister Brian Cowen has dismissed claims his government had surrendered the country's sovereignty, as International Monetary Fund and European officials pore over its accounts to find a solution to the debt crisis. "

........................7A) Cowen Scorned as Irish Mourn Loss of Sovereignty With Bailout

"SAN FRANCISCO -- University of California leaders on Thursday approved an 8 percent tuition hike that will cost each student up to $823 next year.

Five of the 20 regents voted against the measure during the meeting at UC San Francisco's Mission Bay campus.

Several regents repeated a mantra that has become common in recent years: They have no choice but to raise tuition. The 2011 hike will bring undergraduate tuition to $11,124 per year starting next fall.

The 10-campus UC system, with more than 220,000 students, needs about $1 billion more per year to sustain itself, said Vice President Patrick Lenz, who added that the gap will rise to nearly $5 billion by 2020 unless the university takes drastic measures.

Lenz based that sobering picture on theoretical projections calling for annual 7 percent tuition hikes and 5 percent more funding per year from the state, which is facing a $20 billion deficit of its own.

If the annual tuition hikes and state funding don't materialize, the university system's budget picture will only worsen."

""Students do not see this as a one-year problem," said Mireles, who will become a regent in July. "We see it as part of a broader problem."

One large piece of that problem is the university's pension plan, which went 20 years without contributions from UC and its employees and has up to $20 billion less than it needs to pay benefits. "

"Nov. 19 (Bloomberg) -- A resolution of the Irish debt crisis may shift the burden of speculation to Portugal.

While officials such as European Central Bank Vice President Vitor Constancio predict a bailout of Ireland will reduce financial pressures in the euro region, analysts from Citigroup Inc. and Nomura International Plc say any relief would be short-lived as investors turn their focus to the next-weakest peripheral nation.

The markets indicate that country is Portugal with 10-year bond yields of 6.88 percent, compared with 8.26 percent in Ireland and 11.62 percent in Greece, which received rescue funds in May from the European Union and International Monetary Fund. Portuguese Finance Minister Fernando Teixeira dos Santos said Nov. 15 that while “there is a risk of contagion,” that doesn’t mean the country will seek financial aid."

"TOPEKA, Kan. - Plugging a $7.7 billion hole in future Kansas pension benefits may take decades, even with some additional funding legislators may consider when they reconvene in January, state pension trustees heard Thursday.

Fixing the growing underfunding problem may take even longer if, as the trustees are mulling, investment targets for the $13.5 billion group of state pension funds are adjusted downward to reflect market changes.

Members of the board of the Kansas Public Employees Retirement System heard a series of reports at their monthly meeting indicating that even if incoming legislators vote for a package of increased contributions from both state employers and from workers that was considered, but rejected, last spring, pension funds for state teachers likely won't reach a professional standard minimally adequate 80 percent funded level until at least 2018. Full funding may not be possible for years after that.

The teachers' pension fund is one of five groups of funds in KPERS' portfolio and more seriously underfunded than the others, which are for state and local government workers, for Kansas police and firefighters, and for judges.

Based on the latest available formally audited numbers - for the year ended last Dec. 31, the teachers' pension fund has only 56 percent of the money it needs to generate the funds needed to cover its obligations to teachers over a 30-year planning horizon. Funding levels for the other funds range from 64 percent for local government workers to 82 percent for judges."

"The Stanford University research team that shocked Sacramento this year by declaring that the state's three pension systems are more than $400 billion underfunded has struck again, saying local government pension systems are nearly $200 billion short.

The Stanford Institute for Economic Policy Research team, headed by former Democratic Assemblyman Joe Nation, applied the same standard to the local funds as it did to the state's three large systems - a risk-free "discount rate" of about 4 percent on future pension fund earnings.

All public funds now use rates that are nearly twice as large, but that understates future liability, say critics, who include outgoing Gov. Arnold Schwarzenegger. By using unrealistically high assumptions of future earnings, Schwarzenegger and other critics say, the funds are misleading employees and government policy makers about the future costs of pensions. The most recent contracts negotiated with state employee unions by the Schwarzenegger administration included lowering pension guarantees to future employees."

"MONTREAL — A new report out Thursday plaints a bleak picture of Quebec’s financial future and a national citizens’ group says the forecast has implications for all Canadians.

The report by the Conference Board of Canada says Quebec faces “deep fiscal trouble” because of its high taxes, aging population, and weak economic and population growth.

The Ottawa research group says Quebec faces a $45 billion annual deficit by 2030, regardless of how much more it gets in transfer payments from the rest of Canada. The report is entitled, Quebec’s Fiscal Situation: The Alarm Bells Have Sounded.

“While the Conference Board of Canada has no interest in telling the Quebec government what to do, it does feel duty-bound to warn Quebecers that their government’s financial situation is shaky — and that maintaining the status quo is not an option.”"

  • Other news, headlines and opinion:

Surplus Countries Threaten The Global Recovery And Could Cause A Depression (Text of Ben Bernanke speech)

China Raises Bank Reserve Ratios to Limit Price Risks

Oil Trades Below $82 on Speculation Ireland Bailout Not Enough

Class size law is packing a punch for all Florida counties

Gross state products (2009)(Gives % change for each from 2008)................also New York falls below $1 trillion in gross state product; 38 states decline

US Housing Market Will Struggle in 2011: Poll (CNBC)

Overnight ECB borrowing rises amid debt tensions

British borrowing strikes record high

Robert Prechter Explains The Fed, Part II

Portugal braces for 'biggest strike ever'

Michigan Town's Bankruptcy Bid a Harbinger, Governor-Elect Says

CORRECT: Michigan Forbids City To Seek Municipal Bankruptcy

Ohio University considers furlough plan to offset possible budget cuts

Jobless-Benefits Extension Blocked in House as Republicans Balk Over Cost

Greece to raise VAT to meet terms of EU/IMF bailout

Ireland Seems Nearer $136 Bil Rescue Pact

VAT increase to wipe £5billion off UK economy

Genentech cutting 450 jobs in South SF

Moody's Puts $4 Billion Of RMBS On Watch For Downgrade

Medicare's 23% Doctor Pay Cuts to Be Delayed as Senate Seeks Longer Fix

Humana Says 2011 Profit Will Drop on Medicare Funding Cuts; Shares Fall

Ron Paul set to hammer Federal Reserve (Chief central-bank critic will take over gavel of House monetary panel)

City Faces $15 Million Increase In Dues to Public Pension Plan (Berkeley, CA)

ECB head has 'grave concerns' on eurozone governance

Healthcare Costs Up 7% by Sept.

Cash-poor courts, struggling to stay open, raise fees (California)

Preckwinkle orders 21% Cook County spending cuts ("projected $487-million budget hole")

Greek Deficit Target May Put Bailout Terms at Risk: Euro Credit

Axis Of Depression (Paul Krugman....IMO One of his worst opinion pieces ever)

Fernandez Bet on Yields Hinges on Inflation Credibility: Argentina Credit

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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

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Food!!!

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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

 

 

"(Reuters) - General Motors Co may have the world's biggest initial public offering, but U.S. taxpayers were more than $9 billion underwater on the government-funded restructuring at its current share price on Thursday.

A breakdown of the paper loss follows.

* The U.S. Treasury loaned GM about $49.86 billion from late 2008 through 2009 to restructure the company and finance its move through bankruptcy and beyond.

* Before accounting for the Treasury proceeds from the IPO, GM had repaid about $9.74 billion to the government. Those repayments included unused loans, the purchase of Treasury preferred shares, and dividends and interest. That left taxpayers owed a little more than $40.1 billion.

* Including overallotments, Treasury will recover more than $13.6 billion by selling 412.3 million common shares, leaving taxpayers owed about $26.5 billion. Treasury would need to sell its remaining 500.1 million share-stake at an average price of about $53 for taxpayers to be repaid.

* With GM shares trading at $34.50 Thursday afternoon on the New York Stock Exchange, taxpayers were facing an $18.50 per-share deficit on their remaining stake, or about $9.25 billion"

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A Chemist Explains Why Gold Beats Everything Else

 

NPR: A chemist uses the Periodic Table of Elements to explain why out of all the elements that exist, gold would be used as money over all other elements that are either gaseous, flammable, chemically reactive, or too common. :)

A Chemist Explains Why Gold Beats Everything Else
http://m.npr.org/news/front/131430755?singlePage=true

Loved the quote about paper.

Poet

 

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Celente on having his testicles played with

The latest world crisis:

 

 

 

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Re: A Chemist Explains Why Gold Beats Everything Else
Poet wrote:

NPR: A chemist uses the Periodic Table of Elements to explain why out of all the elements that exist, gold would be used as money over all other elements that are either gaseous, flammable, chemically reactive, or too common. :)

A Chemist Explains Why Gold Beats Everything Else
http://m.npr.org/news/front/131430755?singlePage=true

Loved the quote about paper.

Poet

Nice find!  I wish I had thought to do that periodic table run...  That was interesting.

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Re: Food!!!
littleone wrote:

little -

Glad you found and posted this.

Will Allen at GrowingPower.org is a hero of mine.  have you ever been up to Milwaukee to see the facilities?  There are several regional outreach training centers that offer seminars and courses on what he is doing.  I know the Milwaukee facility offers a recurring seminar series.

What I find fascinating is the Milwaukee complex is scalable.  Imagine the community leveraging you would create.  You would need people to learn how to run the various elements of the place.  They in turn could then teach others, who could then go out and scale their own version wherever they lived.  Talk about the ultimate "Pay It Forward"

Check out their website - you could spend days learning about his vermiculture/vermicompost.  http://growingpower.org/

Great find!!!!  Thanks again.

Now can we look at getting Will Allen to do a Straight Talk series?

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Food!

First impression.......  WOW!

But then I start thinking:  IF you remove all this food for consumption to "some place else", how are the very molecules contained withing the food replaced at the farm site?  All that fish, and watercress, and.......

The film in no way explains the energy budgeting of this (and I count the atoms in the food as "energy").  There's no free lunch, and all I see is a perpetual motion machine here.  Can someone explain where the inputs come from (apart from the obvious solar one of course..)  I've never seen compost used in aquaculture either.  How is this achieved?

Mike

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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

Cheers and golf claps for Saxplayer for the incredible news finds!

 

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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

The graph below shows historical exchange rates
between the Australian Dollar (AUD) and the US Dollar (USD)
between 5/23/2010 and 11/18/2010

 

Australian Dollars (AUD) to 1 US Dollar (USD)
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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

Ireland firm on corporate tax as bailout beckons

By London correspondent Rachael Brown

As Ireland edges closer to accepting an international bailout package, its government insists its low corporations tax is not up for grabs.

Talks between European officials, the International Monetary Fund and the Irish government continue in Dublin.

Just days ago, the Irish prime minister Brian Cowan was adamant the country was not asking for help, but now the tune is different.

Speculation is growing that France and Germany want Dublin to raise its low corporations tax in return for aid.

But Ireland's deputy prime minister Mary Coughlan says the 12.5 per cent rate, which is much lower than the EU average, is "non-negotiable".

Meanwhile, one of the biggest banks in Ireland says its clients have withdrawn huge amounts of cash this year.

Allied Irish Banks says its deposits have fallen by $18 billion since January.

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Re: Food!
Damnthematrix wrote:

First impression.......  WOW!

But then I start thinking:  IF you remove all this food for consumption to "some place else", how are the very molecules contained withing the food replaced at the farm site?  All that fish, and watercress, and.......

The film in no way explains the energy budgeting of this (and I count the atoms in the food as "energy").  There's no free lunch, and all I see is a perpetual motion machine here.  Can someone explain where the inputs come from (apart from the obvious solar one of course..)  I've never seen compost used in aquaculture either.  How is this achieved?

Mike

Focus on what's important Mike.

One million pounds of food.

On three acres.

In downtown, urban Milwaukee.

Staffed and operated by at risk inner city youth, young adults and volunteers.

Who then teach their skillset to others.

So more than 10,000 people a month can be fed.

 

Why don't you give Will Allen a call and tell him Growing Power Inc. is nothing but a perpetual motion machine because you want to know where some atoms went?

Is your glass ever half full?

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Re: Food!
Dogs_In_A_Pile wrote:

Focus on what's important Mike.

One million pounds of food.

On three acres.

In downtown, urban Milwaukee.

PRECISELY......  sounds like magic......

Dogs_In_A_Pile wrote:

Staffed and operated by at risk inner city youth, young adults and volunteers.

Who then teach their skillset to others.

So more than 10,000 people a month can be fed.

Like I said...  First impression...  WOW!

 

Dogs_In_A_Pile wrote:

Why don't you give Will Allen a call and tell him Growing Power Inc. is nothing but a perpetual motion machine because you want to know where some atoms went?

From Australia?   BTW, a million pounds is a lot of atoms.......!

Dogs_In_A_Pile wrote:

Is your glass ever half full?

All I want to know is how it's done....

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Matrix Food
Damnthematrix wrote:

But then I start thinking:  IF you remove all this food for consumption to "some place else", how are the very molecules contained withing the food replaced at the farm site?  All that fish, and watercress, and.......

Mike

The film talks about compost. Several hundred yards of compost. It's likely they take in compost from outside.

And this page talks about feeding commercial fish feed and worms to the yellow perch; and plant matter, duckweed, algae, and worms to the tilapia; and using compost to supplement nutrient requirements for crops.
http://growingpower.org/aquaponics.htm

What is so cool about this is the urban food growing capability that can be used to feed people in large numbers in northern climes (with green houses and compost-based heating).

Here are more in-depth videos that give you an idea of how they do it. Chicken, goats, vermi-composting, etc.

Part 1 (Greens):

Part 2 (Vermi-Composting):

Part 3 (Fish):

Poet

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Re: Food!
Damnthematrix wrote:

PRECISELY......  sounds like magic......

Like I said...  First impression...  WOW!

From Australia?   BTW, a million pounds is a lot of atoms.......!

All I want to know is how it's done....

Mike - It's not magic it's very real.  I've seen the scope and scale of what Will is doing.  It is phenomenal.  And, yes, it is indeed a WOW!

I'm not sure what the conversion is from Australian atoms to US atoms  Tongue out

Check out their website and send your questions in.  I'll bet you get a response.

Home page:  http://growingpower.org/

Contact Info and Email address:  http://growingpower.org/contact_us.htm

Growing Power Blog (Warning, there is so much good material here you need to give yourself a few hours):  http://www.growingpower.org/blog/

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Re: Food!
Damnthematrix wrote:

First impression.......  WOW!

But then I start thinking:  IF you remove all this food for consumption to "some place else", how are the very molecules contained withing the food replaced at the farm site?  All that fish, and watercress, and.......

The film in no way explains the energy budgeting of this (and I count the atoms in the food as "energy").  There's no free lunch, and all I see is a perpetual motion machine here.  Can someone explain where the inputs come from (apart from the obvious solar one of course..)  I've never seen compost used in aquaculture either.  How is this achieved?

Mike

From what I remember from elementary biology (it's been a long time so forgive me if the gears are kinda rusty) the molecules are taken by the plants predominantly from the air and water, combined with a (very) few more molecules from the soil, and using sunlight as a catalyst more or less (photosynthesis?) forms the biological structures that constitute life forms. These inputs are totally renewable. The fish food is partially provided from on-site sources (worms etc.) and supplemented with imported commercial fish food. In my view, though not quite a perfect perpetual motion machine, it requires so few inputs, and readily available ones at that, this is a system that is easily sustainable and renewable. I give him (Mr. Allen) a big thumbs up.

P.S. I think he said that the compost was used as a heat source during the winter for the aquaculture. After that I would imagine it would be used like any other composted organic product: soil building.

 

Let's not make the perfect the enemy of the good, in this case the very good.

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Re: A Chemist Explains Why Gold Beats Everything Else
Poet wrote:

 

NPR: A chemist uses the Periodic Table of Elements to explain why out of all the elements that exist, gold would be used as money over all other elements that are either gaseous, flammable, chemically reactive, or too common. :)

A Chemist Explains Why Gold Beats Everything Else
http://m.npr.org/news/front/131430755?singlePage=true

Loved the quote about paper.

Poet

 

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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

NPR: A chemist uses the Periodic Table of Elements to explain why out of all the elements that exist, gold would be used as money over all other elements that are either gaseous, flammable, chemically reactive, or too common. :)

A Chemist Explains Why Gold Beats Everything Else
http://m.npr.org/news/front/131430755?si...

Loved the quote about paper.

Poet

I came across another pithy paper-gold aphorism in a book titled On Language , Chapter 7 "The Debt to Meaning -- Language and Money" 

"Gold circulates because it has value, whereas paper has value because it circulates".   K. Marx

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renew
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Re: Food!

I would like to see budgets for N, C and P.  Give me some details.  Somehow, somewhere these elements are going to be in play and one of them C, ends up as CO2 so what in this system fixes carbon? 

To make any plants grow, P is essential as is N. How much "imported fish food"?  I can readily see that solar energy is one source via the photosynthetic pathways, but I am not yet convinced of the totality.

 

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Damnthematrix
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Re: Food!
renew wrote:

I would like to see budgets for N, C and P.  Give me some details.  Somehow, somewhere these elements are going to be in play and one of them C, ends up as CO2 so what in this system fixes carbon? 

To make any plants grow, P is essential as is N. How much "imported fish food"?  I can readily see that solar energy is one source via the photosynthetic pathways, but I am not yet convinced of the totality.

Thank you.  I'm not mad, I just like to see a balance sheet.

My cup is never full, or half full Dogs....  it OVERFLOWS......!

NOTHING leaves my farm.  I sell nothing, and in fact admit to still buying some food all the scraps from which end up in my compost or wormfarm. As does all our humanure.  105% recycled.  I see they sell their produce.  I bet they use money to buy inputs.  That's fine until TSHTF.

I have another niggling problem with aquaculture....

Avoid hydroponic food grown without biologicals – At our 4-day courses we measure the brix levels of a variety of fresh produce. The lowest levels are always found in hydroponic food because the dissolved solids (nutrient density) in this food have been diluted by the nitrates that are the only form of nitrogen used in this production system. We rarely find a hydroponic lettuce with a brix level above 2 when the ideal brix level is 12. Lettuce and spinach are the worst offenders and this food should not be fed to babies or children.

Nitrogen is a critically important building block for proteins, enzymes, vitamins and even DNA but if oversupplied there are several associated health issues. There are two forms of nitrogen, ammonium nitrogen and nitrate nitrogen but it is the nitrate form that can be problematical. When this form of nitrogen is ingested via food and drinking water it can be converted in the gut to nitrites, which then combine with hemoglobin to form methemoglobin. This compound restricts the capacity of the blood to carry oxygen and oxygen levels at the cellular level can be compromised. Professor Otto Warburg won his Nobel Prize for his discovery that anaerobism is a principle root cause of cancer. There have been several studies linking nitrates to cancer and reduced cellular oxygen supply (anaerobism) is undoubtedly playing a role.

PS I personally know the guy who runs Nutri-tech.  What he doesn't know about soil health and human health isn't worth knowing...

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Re: Food

I liked the video from Growing Power great experiment. and it will work great until as Damnthematrix says "TSHTF".

Because their imputs for their compost is as follows.

 

Food waste 4 million pounds per year

Brewery waste 1. million pounds per year

News paper 26,000 pounds per year

Coffee grounds 15,000 pounds per year (grown in centeral america)

Coconut fibers not sure how much but not a locally grown item.

 

Growing Power composts more than 5 million pounds of waste per year and gets 1 million pounds of food out of it.

 

How many people does it take to generate 5 million pounds of  waste per year? Also how many people can 1 million pounds of food feed?

 

at http://growingpower.org/ they talk alot about sustainable growing but it will need some tweeks to work without oil.

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Re: Food
BWCbubble wrote:

Food waste 4 million pounds per year

Brewery waste 1. million pounds per year

News paper 26,000 pounds per year

Coffee grounds 15,000 pounds per year (grown in centeral america)

Coconut fibers not sure how much but not a locally grown item.

 

Growing Power composts more than 5 million pounds of waste per year and gets 1 million pounds of food out of it.

 

How many people does it take to generate 5 million pounds of  waste per year? Also how many people can 1 million pounds of food feed?

I think all operations, sustainable or not, will feel the pinch when the full effect of peak oil is upon us.  However, there will always be waste (or to be more accurate here- "leftovers")- they may have to scale back if there is a shortage, but on the contrary, I think the playing field would finally be level and that there may be impetus to try harder to gather up this waste.  Think of how much food waste is still not being gathered for this project.  Who says they have to get their brewery waste from brewers?  Even if newspapers disappear overnight, I think pulp waste will always be available right under our feet.  Who says the nutrients from coffee grounds/coconut fibers have to come from such?

This waste, these leftovers, are the key to everything- the "magical" missing input that DTM was wondering about (I'm not arguing with you Mike, only saying that it isn't so mysterious when you consider the goodness that food waste contains), keeping the cycle local, teaching people about capturing (previously) lost opportunities.  Very inspiring stuff- yes, the whole idea of food just popping out of the ground is indeed magical.

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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

Of course Growing  Power is a non-profit community based organization that exists to empower the community and train yong people to be self sufficient.  I am sure they get a lot of co=operation from all kinds of business that get tax wrtite offs tooo.  They just ask for trash and haul it away.  Lots of busy hands working at all levels of the operation. 

I am intriqued by the use of compost and vermicompost together  with aquaponics and wondering how it could be adapted for a family farm/hoophouse.  It does look like a fragile system that could fall apart if you left it alone for a few days.  Pumps have to work, fish have to be fed, water temps have to be just right.  It still uses fuel.

Still, it looks like a great idea to me.  The mayor in our town is talking about starting neighborhood gardens, and this does look like it could be a good model for the inner city.  Especially if you have a good manager like they do.

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Re: Food!
Damnthematrix wrote:

My cup is never full, or half full Dogs....  it OVERFLOWS......!

NOTHING leaves my farm.  I sell nothing, and in fact admit to still buying some food all the scraps from which end up in my compost or wormfarm. As does all our humanure.  105% recycled.  I see they sell their produce.  I bet they use money to buy inputs.  That's fine until TSHTF.

I have another niggling problem with aquaculture....

Of course it does Mike, as you constantly tell us, and point out how everyone else who isn't doing it exactly your way is wrong.

So just how many people a month do YOU feed Mikey?  Two?  Yay for your team.

Will Allen is surrounded by a community of people built by Growing Power, reaching and teaching more and more every day, with every workshop and seminar.  GP has regional outreach training centers in Arkansas, Kentucky, Virginia, Colorado, Michigan, Minnesota, Mississippi, Georgia and Florida.  Looks like the exponential function at work to me.

But none of that matters because it's all about the "balance sheet"?

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Re: Food!
Damnthematrix wrote:
renew wrote:

I would like to see budgets for N, C and P.  Give me some details.  Somehow, somewhere these elements are going to be in play and one of them C, ends up as CO2 so what in this system fixes carbon? 

To make any plants grow, P is essential as is N. How much "imported fish food"?  I can readily see that solar energy is one source via the photosynthetic pathways, but I am not yet convinced of the totality.

Thank you.  I'm not mad, I just like to see a balance sheet.

My cup is never full, or half full Dogs....  it OVERFLOWS......!

NOTHING leaves my farm.  I sell nothing, and in fact admit to still buying some food all the scraps from which end up in my compost or wormfarm. As does all our humanure.  105% recycled.  I see they sell their produce.  I bet they use money to buy inputs.  That's fine until TSHTF.

I have another niggling problem with aquaculture....

Avoid hydroponic food grown without biologicals – At our 4-day courses we measure the brix levels of a variety of fresh produce. The lowest levels are always found in hydroponic food because the dissolved solids (nutrient density) in this food have been diluted by the nitrates that are the only form of nitrogen used in this production system. We rarely find a hydroponic lettuce with a brix level above 2 when the ideal brix level is 12. Lettuce and spinach are the worst offenders and this food should not be fed to babies or children.

Nitrogen is a critically important building block for proteins, enzymes, vitamins and even DNA but if oversupplied there are several associated health issues. There are two forms of nitrogen, ammonium nitrogen and nitrate nitrogen but it is the nitrate form that can be problematical. When this form of nitrogen is ingested via food and drinking water it can be converted in the gut to nitrites, which then combine with hemoglobin to form methemoglobin. This compound restricts the capacity of the blood to carry oxygen and oxygen levels at the cellular level can be compromised. Professor Otto Warburg won his Nobel Prize for his discovery that anaerobism is a principle root cause of cancer. There have been several studies linking nitrates to cancer and reduced cellular oxygen supply (anaerobism) is undoubtedly playing a role.

PS I personally know the guy who runs Nutri-tech.  What he doesn't know about soil health and human health isn't worth knowing...

Sure, maybe, just maybe this food isn't as nutrient dense as perfectly grown food would be. But to produce a million pounds of food by a non-profit from waste that otherwise would be a contaminant is a huge improvement. Besides who is getting this food? Perhaps these inner city people are getting a low cost food source that otherwise would be supplied by a fast food chain. Which is better, this food that might have a low brix level or a hormone laden, BHT laced cheeseburger served with fries soaked in trans-fat, washed down with an aspartame laced diet soda?

Again, let's not make the perfect the enemy of the good.

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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

On the notion of pounds of waste......it always amazes me when I fill up the compost bin and come back later to see how low the level is.....Part of my day I spend contemplating the wonder of forces at work in the compost.....

It was going to go to the landfill anyway, might as well use it.  They didn't import it for their special compost.

What's in mine? Some local stuff, but also lemons, pomegranites, bananas, and coffee too.  I don't grow those.

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Re: Food
yoshhash wrote:

I think all operations, sustainable or not, will feel the pinch when the full effect of peak oil is upon us.  However, there will always be waste (or to be more accurate here- "leftovers")- they may have to scale back if there is a shortage, but on the contrary, I think the playing field would finally be level and that there may be impetus to try harder to gather up this waste.  Think of how much food waste is still not being gathered for this project.  Who says they have to get their brewery waste from brewers?  Even if newspapers disappear overnight, I think pulp waste will always be available right under our feet.  Who says the nutrients from coffee grounds/coconut fibers have to come from such?

"Waste" is the leftover from profligacy caused by excess energy........  WTSHTF, there will be no waste to gather up.  That's one of the reasons it's called WTSHTF!

yoshhash wrote:

This waste, these leftovers, are the key to everything- the "magical" missing input that DTM was wondering about (I'm not arguing with you Mike, only saying that it isn't so mysterious when you consider the goodness that food waste contains), keeping the cycle local, teaching people about capturing (previously) lost opportunities.  Very inspiring stuff- yes, the whole idea of food just popping out of the ground is indeed magical.

At least by sticking my head out, we did find out where the magic came from....  Dogs got his knickers in a knot because I dared test the validity of this amazing enterprise, but all I wanted to do was make sure everyone here realised it didn't quite add up, there is no free lunch no pun intended.

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Re: Food!
Dogs_In_A_Pile wrote:
Damnthematrix wrote:

My cup is never full, or half full Dogs....  it OVERFLOWS......!

Of course it does Mike, as you constantly tell us, and point out how everyone else who isn't doing it exactly your way is wrong.

REALLY Dogs......  where did I say that?  All I'm trying to do is HELP.  I do things a certain way that I know works.  You take it or leave it.  I don't even claim it works perfectly, it just works.

The number of people I feed off this place is directly proportional to the number of people who work here.  ME.

So frankly, I'm quite proud of the fact I can feed three people, several chickens, six goats, and two pigs off what grows here.

We're supposed to be learning off each other here, not biting each other's heads off.....  ;)

Mike

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Re: Food!

Mike -

It's about Will Allen doing great community work.  You will never get it. 

Moving on............

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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

Mike,

I admire your quest to maximize nutrient/energy efficiency in your permaculture system, and I have a few questions regarding this:

1) How do you minimize the atmospheric loss of Nitrogen during the composting process? Do you think the cultivation of Nitrogen-fixing legumes compensates the loss of nitrogen in the composting process?

2) How do you use the humanure compost within your system? Do you use this compost on food crops directly, or does is it utilized further down the food chain in your system?

3) I know you were experimenting with growing your own chook feed. Were you successful at this, or do you still need to supplement their diet with purchased feed? What specifically do you grow for chicken feed and how difficult is it to process it?

4) Do you cultivate insects within your food chain (such as grub composting with Black Soldier Fly larvae) to process wastes? 

Thanks for your feedback....Jeff

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Re: Food!
Damnthematrix wrote:

I have another niggling problem with aquaculture....

Avoid hydroponic food grown without biologicals – At our 4-day courses we measure the brix levels of a variety of fresh produce. The lowest levels are always found in hydroponic food because the dissolved solids (nutrient density) in this food have been diluted by the nitrates that are the only form of nitrogen used in this production system. We rarely find a hydroponic lettuce with a brix level above 2 when the ideal brix level is 12. Lettuce and spinach are the worst offenders and this food should not be fed to babies or children.

I always thought that brix levels were much more correlated with potassium than nitrogen. For example, the higher the potassium in the fertilizer, the lower the brix level and protein content of the crop. Is there new information to contradict this?

It should be pointed out that aquponics has very little in common with hydroponics in terms of fertilizers. Aquaponic fertilizers are naturally derived from animals and composted in a similar fashion to permaculture (or natural) systems. The major design advantage that aquaponics borrows from hydroponics is a superior gas exchange mechanism in the rhizosphere when compared with soil cultivation. Much of the enhanced yield in these systems is a result of increased O2 availability to the plant roots and bacterial colonies. 

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Re: Food!

Our refractometer responds with Ca+ much better than any other ion.  We are in a calcium deficient area. What style press gathered the "juice" that was used for brix measurement. I'm using, rather my son whose science fair project is measuring brix in cane sorghum growm on different soils ,different breeds etc.. my refractometer is far mopre dependant upon the "juice" from my garlic press than......

 

ie. we,with a large "n", are getting too large a SD with our sampling techniques.

 

robie 

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RE: FOOD!

Yeah, I'm waiting to hear how Mike uses the humanure since we converted to compost toilets with bokashi as the micro-mix we are thinking this might be the way to go.

I've had it in the back of my mind that one of the reasons using humanure will add to health is that plants have more dna (my theory is it has a few million years developing a more complex immunity system) and those genes kick in when exposed to certain conditions or diseases so the off spring of the plants are like eating illness specific antidotes.

And, we say the same thing in our aquaponics using giant crayfish - the plants were great but very UN-productive because of high ni levels, which constantly needed filtering out. If we try it again - we might try to introduce a bokashi organism to filter more naturally. Mike? comments?

Thanks- EGP

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Re: Daily Digest 11/19 - China Curbs Inflation, Oil Shock ...

JAG wrote:

Mike,

I admire your quest to maximize nutrient/energy efficiency in your permaculture system, and I have a few questions regarding this:

I've moved all that permaculture stuff to http://www.peakprosperity.com/comment/94913#comment-94913

Mike

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