Daily Digest

Daily Digest 11/23 - 'Coal War' with Beijing, Praise for Oil Spill Response, Siberian Ice Leak

Tuesday, November 23, 2010, 11:00 AM
  • 'Coal War' with Beijing Next Hit on U.S. Economy
  • Fed's Hidden Agenda of Driving U.S. Into a Second Great Depression
  • The Just-in-Time Consumer
  • When Irish Banks are Ailing
  • Stocks Fall on Korea Clash, Europe Debt, China Lending; Dollar Strengthens
  • BP, Government Praised for Inventive Response to Oil Spill
  • Leaking Siberian Ice Raises a Tricky Climate Issue

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Economy

'Coal War' with Beijing Next Hit on U.S. Economy (darren)



The situation is that hundreds of millions of people in nations like China are moving rapidly from the Stone Age to the 21st century as American dollars have flooded that part of the world, and officials have been struggling frantically to make enough power to run all of the gadgets the new lifestyle includes. Similar circumstances also are developing in India and places like Indonesia, and the demand is sending the expense of coal through the ceiling, making relatively insignificant President Obama's promise during his 2008 election campaign that he wanted to regulate those who build coal mines and coal-fired power plants until they were bankrupt.

Fed's Hidden Agenda of Driving U.S. Into a Second Great Depression (johnny)



Ben Bernanke has said that the Fed is trying to promote inflation, increase lending, reduce unemployment, and stimulate the economy. However, the Fed has arguably - to some extent - been working against all of these goals. For example, as I reported in March, the Fed has been paying the big banks high enough interest on the funds which they deposit at the Fed to discourage banks from making loans. Indeed, the Fed has explicitly stated that - in order to prevent inflation - it wants to ensure that the banks don't loan out money into the economy, but instead deposit it at the Fed.

The Just-in-Time Consumer



The Great Depression replaced a spendthrift culture with a generation of frugal savers. The recent recession, too, has left in its wake a deeply changed shopper: the just-in-time consumer.For over two decades, Americans bought big, bought more and stocked up, confident that bulk shopping, often on credit, provided the best value for their money. But the long recession—with its high unemployment, plummeting home values and depleted savings accounts—altered the way many people think about the future. Manufacturers and retailers report that people are buying less, more frequently, and are determined to keep cash on hand.

When Irish Banks are Ailing (ilene)



Ireland's annual deficit is the worst in Europe at 30% of GDP (that would be like the US having a $5Tn annual deficit) and the nation is expected to slash its budget by $20Bn next year just to keep it under that level. Prime Minister Cowen holds a very thin majority and now faces a "no confidence" vote that could lead to further turmoil with a special election coming on Thursday for a vacant parlimentary seat.  "The likelihood of this government surviving long beyond the first month or two of next year is virtually gone now," says David Farrell, professor of politics at the University College Dublin.  

Stocks Fall on Korea Clash, Europe Debt, China Lending; Dollar Strengthens 



“The news that we’ve seen recently on China, on Ireland and now on Korea has just reminded people of the risks out there,” said Andrew Milligan, the Edinburgh-based head of global strategy at Standard Life Investments, which oversees the equivalent of about $245 billion. “The most significant of the worries is probably the uncertainty about China.

Energy

BP, Government Praised for Inventive Response to Oil Spill 



Despite the fact that oil companies have been drilling for years in the Gulf of Mexico and the potential for problems was widely recognized, those involved were essentially caught flat-footed when the BP platform exploded and sank. "There were many success stories in the effort to control the Macondo well, including, but not limited to, the ultimate successes of capping and killing it," the report said. "And the speed with which government scientists, with little background in deep-sea petroleum engineering, established meaningful oversight was truly impressive. "These remarkable efforts were necessary, however, because of a lack of advance preparation by industry and government," investigators said.

Environment

Leaking Siberian Ice Raises a Tricky Climate Issue (dps)



Gas locked inside Siberia's frozen soil and under its lakes has been seeping out since the end of the last ice age 10,000 years ago. But in the past few decades, as the Earth has warmed, the icy ground has begun thawing more rapidly, accelerating the release of methane — a greenhouse gas 23 times more powerful than carbon dioxide — at a perilous rate. Some scientists believe the thawing of permafrost could become the epicenter of climate change. They say 1.5 trillion tons of carbon, locked inside icebound earth since the age of mammoths, is a climate time bomb waiting to explode if released into the atmosphere.

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4062
Re: Daily Digest 11/23 - 'Coal War' with Beijing, Praise ...

"Ireland’s Nov. 21 decision to request emergency aid from the European Union and the International Monetary Fund did little to reverse the jump in borrowing costs. The extra yield demanded to hold Portuguese 10-year debt rather than German bunds jumped 13 basis points today to 420. The Spanish spread with Germany rose 9 basis points to 217 basis points, before the sale of up to 4 billion euros ($5.4 billion) of treasury bills.

Even as EU leaders said Ireland’s bailout will stem contagion in the euro region, investors are turning their attention to Portugal, which hasn’t cut government spending and has barely grown for a decade. A rescue of Portugal may increase pressure on its high budget-deficit neighbor Spain, whose gross domestic product is almost twice the size of Portugal, Greece and Ireland combined."

...................1A) Spain's borrowing costs soar amid debt concerns

"MADRID -- Spain's borrowing costs have soared in a sale of 3- and 6-month bills amid fears the country could be affected by the spreading debt crisis.

The central bank says the treasury was obliged to pay 1.7 percent in average interest to sell euro2.1 billion ($2.87 billion) in 3-month bills, nearly double the 0.95 percent rate paid in the last such auction Oct. 26

The rate for the sale of euro1.2 billion in 6-month bills jumped to 2.1 percent from 1.3 percent in October.

The auction Tuesday came as Madrid's Ibex 35 bourse dipped for the second day in a row amid concerns over Spain's ability to handle its debt in the wake of European Union's bailout of Ireland."

...............................1B) Portuguese government spending rises by 2.8 percent and Blow for Portugal as state deficit widens

.................................1C) Spain, Portugal Bank Debt Risk Surges as Traders Look South

................................1D) Spain Falls Short of Maximum Goal at Bills Auction After Yields Increase

"Spain sold 3.25 billion euros ($4.40 billion) of treasury bills, less than the maximum target set for the auction, amid escalating concern that the fallout from the Irish sovereign debt crisis is spreading to other nations"

 

"Huge budget shortfalls are prompting a handful of states to begin discussing a once-unthinkable scenario: dropping out of the Medicaid insurance program for the poor.

Elected and appointed officials in nearly a half-dozen states, including Washington, Texas and South Carolina, have publicly thrown out the idea. Wyoming and Nevada this year produced detailed studies of what would happen should they withdraw from the program. Wyoming found that Medicaid accounts for 63% of the state's nursing-home revenue.

The idea of abandoning Medicaid as a solution is so extreme that even proponents don't expect any state will follow through, but officials are floating the discussions because dire budgetary pressures have forced them to at least look at even the most drastic options. "

...................2A) Medicaid Weighs Down State Budget (Idaho)

"Rare-earth exports from China, the world’s biggest supplier, declined 77 percent in October from a month earlier after the government reduced shipment quotas for the second half.

Exports were 830 metric tons last month compared with 3,660 tons in September, the General Administration of Customs said in an e-mail. Total exports were 32,990 tons in the first 10 months, according to the e-mail, which was sent yesterday.

The export restrictions on the minerals, used in laptops, missile-guidance systems and hybrid cars, sparked a surge in rare-earth prices and highlighted global dependence on China for shipments. Commerzbank AG said that prices may advance further as supplies may dwindle, according to a Nov. 11 report. "

  • Other news, headlines and opinion:

Construction Bank Predicts Yuan Trade May Increase to $3 Trillion by 2015

Insurers May Lose $4 Billion If Munis Face `Extreme Stress,' Moody's Says

Pension bailout choices pondered by council (Pittsburgh)

Muni-Bond Issuers May Face Default `Crunch' as Stimulus Ebbs, Lehmann Says

U.S. Governors Put `Everything' on Table for Cuts as Budget Deficits Loom

Hungary Rail Accounting Poses Budget Risk, Fiscal Council Says

Hungary gen gov't deficit reaches 131% of full-year target in Oct, ministry confirms

Finance minister says deficit could hit $1B (New Brunswick, Canada)

Wisconsin's budget troubles may worsen

Dallas Area Foreclosures Reach Unprecedented Levels

Jobless hold vigil in Philadelphia as phaseout of benefits looms

Yield Hunt Means MTS Sets Ruble Record in Junk Maturities: Russia Credit

Mayors measure effect of belt-tightening on quality of life

No More Gran Torinos for States Losing $3.5 Billion in Revenues

Hike proposed in Santa Cruz parking fines: City to pass state-mandated fee onto motorists (California)

China Inflation `Volcano' May Prove Too Hot for Controls After Cash Surge

Obama Bolsters U.S. Hybrid Automobile Sales in Waning Consumer Market

Cotton Sales From India May Not Fill Quota as Arrivals Drop, Olam Predicts

CoreLogic: Shadow Inventory Jumps More Than 10% in One Year

Problem banks grew to 860 in third quarter, says FDIC ("The agency’s deposit insurance fund, meanwhile, remained in deficit at negative $8 billion")

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
Re: Daily Digest 11/23 - 'Coal War' with Beijing, Praise ...

chevy volt delayed because it doesnt have the EPA gas-milage sticker:

Chevrolet Volt sales could be delayed by fuel economy label

 

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest 11/23 - 'Coal War' with Beijing, Praise ...

Dr. Paul is the only one in Congress, or in all of D.C. for that matter, that is standing up for the American People.

We all need to stand with him and OPT OUT!

wmarsden's picture
wmarsden
Status: Bronze Member (Offline)
Joined: Apr 6 2008
Posts: 38
China & Russia quit using $U.S. for bilateral trade

http://english.peopledaily.com.cn/90001/90778/90859/7208907.html

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