Daily Digest

Daily Digest 11/9 - Coal on the Rise, Energy Investments, Gulf Oil in Food?

Tuesday, November 9, 2010, 11:00 AM
  • Chief Executives in U.S. More Confident on Sales, Survey Says
  • At Legal Fringe, Empty Houses Go to the Needy
  • Coal May Rise 12% Next Year on Asian Demand, Deutsche Bank Says
  • Algae for Biofuels: Moving from Promise to Reality, but How Fast?
  • Energy Investments to Hit $26trn
  • Where's the Gulf Oil? In the Food Web, Study Says
  • Scientists Fear Oil Is Settling on Bottom of Gulf

Our 'What Should I Do?' guide offers a detailed management plan for your personal finances.


Chief Executives in U.S. More Confident on Sales, Survey Says 

Confidence among U.S. chief executive officers improved at the start of the fourth quarter as more forecast stronger sales and spending on equipment, a survey showed. The Young Presidents’ Organization gauge of sentiment rose to 59.9 in October from 57.5 in July, according to the Dallas- based group. A reading greater than 50 shows the executives’ outlook was more positive than negative.

At Legal Fringe, Empty Houses Go to the Needy 

Save Florida Homes Inc. and its owner, Mark Guerette, have found foreclosed homes for several needy families here in Broward County, and his tenants could not be more pleased. Fabian Ferguson, his wife and two children now live a two-bedroom home they have transformed from damaged and abandoned to full and cozy. There is just one problem: Mr. Guerette is not the owner. Yet.


Coal May Rise 12% Next Year on Asian Demand, Deutsche Bank Says

Coal burned to generate power may jump 12 percent next year on Asian demand for the fuel and supply constraints in producer nations, Deutsche Bank AG said. Contract prices for the fuel in the Japanese financial year starting April 1 will rise to $110 a metric ton from $98 in the current year, Deutsche Bank analyst Daniel Brebner in London forecast in a report dated today. Supplies of seaborne thermal coal will lag behind demand by 13 million tons next year, up from a shortage of 2 million tons this year, he wrote.

Algae for Biofuels: Moving from Promise to Reality, but How Fast? 

A new report from the Energy Biosciences Institute (EBI) in Berkeley projects that development of cost-competitive algae biofuel production will require much more long-term research, development and demonstration. In the meantime, several non-fuel applications of algae could serve to advance the nascent industry. 'Even with relatively favourable and forward-looking process assumptions (from cultivation to harvesting to processing), algae oil production with microalgae cultures will be expensive and, at least in the near-to-mid-term, will require additional income streams to be economically viable,' write authors Nigel Quinn and Tryg Lundquist of Lawrence Berkeley National Laboratory (Berkeley Lab), which is a partner in the BP-funded institute.

Energy Investments to Hit $26trn 

Saudi Arabia has completed a gigantic hydrocarbon capacity expansion programme involving investment of more than $100 billion and this will support global energy security, according to its oil minister. Ali Al-Naimi said the programme was part of overall plans by the 12-nation Organization of Petroleum Exporting Countries (OPEC) and other producers to expand their sustainable output capacity to face world demand. Addressing an energy conference in Singapore last week, he estimated producers need to pump nearly $26 trillion into the hydrocarbon sector over the next two decades to develop production capacity.


Where's the Gulf Oil? In the Food Web, Study Says 

WASHINGTON (AP) -- Scientists say they have for the first time tracked how certain nontoxic elements of oil from the BP spill quickly became dinner for plankton, entering the food web in the Gulf of Mexico. The new study sheds light on two key questions about the aftermath of the 172 million-gallon spill in April: What happened to the oil that once covered the water's surface and will it work its way into the diets of Gulf marine life? "Everybody is making a huge deal of where did the oil go," said chief study author William "Monty" Graham, a plankton expert at the Dauphin Island Sea Lab in Alabama. "It just became food."

Scientists Fear Oil Is Settling on Bottom of Gulf 

The federal government is concerned that oil from the Gulf of Mexico spill may be settling on the ocean floor, causing environmental damage where it's hardest to see. The environmental damage likely resulted from the BP spill, said Charles Fisher, a biologist at Penn State University and the chief scientist on the trip, in a statement Friday. "The circumstantial evidence is extremely strong and compelling, because we have never seen anything like this," said Mr. Fisher, who, with other scientists, worked on a National Oceanic and Atmospheric Administration ship.

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."


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Re: Daily Digest 11/9 - Coal on the Rise, Energy ...

"There is no possibility of agreement at the upcoming G20 summit because the U.S. is declaring financial war on other countries, believes American economist Michael Hudson."

"“There is no way in the world that America can ever pay the foreign government debt that it owes,” the economist believes."

"BEIJING (Dow Jones)--China's state-run Xinhua News Agency published a commentary on Tuesday calling for the Group of 20 industrial and developing economies to supervise the issuance of international reserve currencies, and harshly criticized the U.S. Federal Reserve's new round of quantitative easing.

The G-20 should "set up a new mechanism that effectively monitors the issuer of the international reserve currency, especially when it is not able to carry out responsible currency policies," Xinhua said, making an apparent reference to the U.S. as the issuer of the dominant reserve currency.

"Considering the influence of the policy moves in the major international reserve currencies on the global economy, it is necessary for the issuer of the international reserve currency to report to and communicate with the G-20 Group before it makes major policy shifts." "

"Greece's finance minister has spoken out on Sky News about countries printing money to boost their ailing economies.

Speaking on Jeff Randall Live, George Papaconstantinou warned quantitative easing only serves to stoke up inflation.

"You get inflation. You get a situation that's out of control. People lose their purchasing power. It doesn't get you very far," he said.

Since the 2008 financial crisis the UK and the US have tried to reinvigorate their economies by pumping hundreds of billions of pounds into them."

Brazilian Finance Minister Guido Mantegna, the same one who first warned about the possibility of a “currency war”, said that “everybody wants the U.S. economy to recover, but will not throw money from helicopters do anyone any good. ”

"Spain led a surge in the cost of insuring European government debt to a record on concern the region’s peripheral nations will struggle to cut budget deficits and repay debt.

Credit-default swaps on Spanish government bonds jumped 10.5 basis points to 275.5, an all-time high based on closing prices, according to data provider CMA. The Markit iTraxx SovX Western Europe Index of swaps on 15 governments climbed 2.5 basis points to 179.5."

"Nov. 9 (Bloomberg) -- Britain’s total debt levels may rise about 33 percent to about 10 trillion pounds ($16.1 billion) by 2015, posing a threat to long-term economic growth, PricewaterhouseCoopers LLP said in a report.

Consumers, companies, banks and the government will add to debt over the next five years, PricewaterhouseCoopers said in the report published in London today. Government debt as a percentage of gross domestic product will rise to 77 percent from 67 percent, while Britons’ total debt will amount to 5.4 times output, it said."

"The world's thirst for crude is leading oil exploration companies into ever deeper waters and ventures fraught with environmental and political peril.

The days when the industry could merely drill on land and wait for the oil _ and the profits _ to flow are coming to an end. Because of that, companies feel compelled to sink wells at the bottom of deep oceans, inject chemicals into the ground to force oil to the surface, deal with unsavory regimes, or operate in some of the world's most environmentally sensitive and inaccessible spots, far from ports and decent roads. All those factors could make it difficult to move in equipment and clean up a spill.

From the Arctic to Cuba to the coast of Nigeria, avoiding catastrophes like BP's Gulf of Mexico spill is likely to become increasingly difficult and require cooperation among countries that aren't used to working together"

"The country's debt management agency said Tuesday's sale, originally for euro300 million ($417.5 million), was oversubscribed 5.15 times and had a yield of 4.82 percent.

A similar auction on Oct. 12 for euro900 million had been oversubscribed 4.22 times but had a slightly lower yield of 4.54 percent."

"Former City Attorney Mike Aguirre says it's time for San Diego to declare bankruptcy - and he's pointing to the recent campaign for Prop-D to make his case.

In a news conference at the downtown Westgate Hotel, Aguirre declared bankruptcy will offer the city immediate relief from its 73 million dollar pension obligation and allow for restructuring of benefits.

He says the Prop-D campaign -which claimed essential city services would be in jeopardy without the half cent sales tax- proves the city is insolvent. "A city is insolvent when it can't provide its essential services to the public. and the case for that has been made.""

"University of California, whose medical centers represent the third-biggest U.S. public-hospital system, is selling $700 million in taxable Build America Bonds as the state prepares to borrow $14 billion this month.

The college’s revenue-bond sale comes as the extra yield investors demand to hold 10-year general-obligation debt from California issuers instead of top-rated tax-exempts was 127 basis points yesterday, the highest since July 7, according to Bloomberg Fair Market Value data."

"JPMorgan Chase & Co. racked up a perfect trading record for the second time this year, making money every day last quarter after accomplishing the same feat in the first three months of 2010.

Cumulatively, the results mean the New York-based bank made more than $200 million on 12 days in the first nine months and lost money on only eight, JPMorgan said today in a regulatory filing.

JPMorgan, the No. 2 U.S. lender by assets, follows Bank of America Corp. in reporting a perfect record for the quarter. Goldman Sachs Group Inc., which makes the most revenue on Wall Street trading stocks and bonds, had losses in that business on two days during the third quarter while Morgan Stanley reported 10 losing days for the period. "

"Declining home prices spread across the nation last month, reaching 25 of the 26 top markets tracked by Altos Research. Only Washington, DC, with its large Federal workforce, experienced a gain.

Altos Research’s 10-City Composite price declined 1.6 percent to the first week of November and is off by 3.09 percent over the last three months. Worst hit were Phoenix, Miami and the California cities. The average sales price in San Diego is down 3.28 percent since July. Salt Lake City is down 3.27 percent and Phoenix, down3.11 percent"

"Nov. 9 (Bloomberg) -- Li Daokui, an academic adviser to China’s central bank, said it could be seen as “absurd” that the dollar remains a reserve currency after the financial crisis.

To a visitor from outer space, it would seem “absurd” that the dollar holds that role, given problems in U.S. financial regulation and the country’s economic difficulties, Li said at a forum in Beijing. The same assessment could be made of the nation’s ability to keep issuing currency according to its own needs, he said."

  • Other news, headlines and opinion:

China Pension Chief Proposes Dollar Trade Range to Cope With Fed's Easing

China Finance Minister: Some Major Currency Issuers Have Overly Loose Monetary Policy

G20 summit overshadowed by US monetary easing

Warsh Says Federal Reserve's Asset Purchases May Fail to Benefit Economy

Fed's Fisher Says Purchases May Be 'Wrong Medicine' For Economy

Germany Stands Up To U.S. In Fight Over Surplus

China and Russia to US: Stop Printing Money

Portuguese banks open fire on Fitch

Irish bonds suffer as concerns persist

Ireland 'Increasingly' Likely to Tap European Fund, NCB Says

HSBC Says Sell Spanish Five-Year Government Bonds on Irish Contagion Risk

Mortgage debt tops $1 trillion (Canada)

Taxpayers' bill on Freddie, Fannie foreclosures: $2B

China to Tighten Control on Inflows of Overseas Funds

Tax revenue falls short by $1.1 billion (New Zealand)

World Bank Says Asia May Need Capital Controls to Curb Bubbles

Australia Says Deficit to Worsen as Currency Surges

Money Funds Resorting to `Micro Bailouts' as Disclosure Rules Take Effect

Pension costs sting budget (Glendale)

Ireland's new toxic loans will spark social conflict, says economist

Pittsburgh Mayor Warns Of 'Dark Days' During Budget Announcement

UC President Yudof Proposes 8 Percent Fee Increase (pensions..."$20 billion in unfunded liabilities")

$40 Million 24/7 for Unemployment Insurance (California)

High-Frequency Traders Lobby, Donate to Head Off U.S. Rules

Irish, Portuguese Yield Spreads Caught in `Vicious Spiral,' WestLB Says

Grains trade at highest in more than two years

Andrew Maguire Re-Emerges: Ex-Goldman Trader Exposes JPMorgan, HSBC In Latest Silver Price Manipulation Class Action Lawsuit (zerohedge)

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Bursting Bubbles...

Episode #159 - Bursting Bubbles of Government Deception


2010/11/03 / 1:21:24


The Corbett Report is pleased to present the audio of the incredible ThinkFree.ca documentary, Bursting Bubbles of Government Deception. In this hour-long presentation, you will learn about the simple tricks and deceptions by which we are all stripped of our inherent freedoms and by the end of today's episode you will be questioning things you never before thought to question...

Download episode here: http://www.corbettreport.com/index.php?i=Episodes


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China Downgrades US Again, From AA To A+, Outlook Negative, Sees

China Downgrades US Again, From AA To A+, Outlook Negative, Sees "Long-Term Recession", Blasts QE2, Expects Creditor Retaliation (Posted at zerohedge)


Now posted at Bloomberg:

"China’s Dagong Global Credit Rating Co. cut its credit rating for the U.S. to A+ from AA because of a Federal Reserve plan to purchase bonds to spur growth and inflation, according to Xinhua News Agency.

The credit outlook for the U.S. is negative amid deteriorating debt repayment capability and a “drastic” drop in the government’s intention to repay debt, Dagong said, as cited by the state-controlled news agency. The Fed’s quantitative easing policy will erode the value of the dollar and is against the interests of creditors, the company said.

“Serious defects in the U.S. economy will lead to long- term recession and fundamentally lower national solvency,” Dagong said, as cited by Xinhua.

Dagong, seeking to become an alternative to Standard & Poor’s Corp., Moody’s Investors Service and Fitch Ratings, ranks China’s debt higher than that of the U.S. and Japan, citing widening deficits in the developed world. Global ratings methodology is “irrational,” Dagong Chairman Guan Jianzhong said in July, and “cannot truly reflect repayment ability.”

The credit rating company’s remarks follow those of Chinese government officials, who have expressed concern that quantitative easing will hurt the country’s economy.

“Many countries are worried about the impact of the policy on their economies,” Vice Foreign Minister Cui Tiankai said at a press briefing in Beijing Nov. 5. “It would be appropriate for someone to step forward and give us an explanation, otherwise international confidence in the recovery and growth of the global economy might be hurt.”

Chinese central bank adviser Xia Bin said Nov. 4 that the Fed’s $600 billion on planned bond purchases is “uncontrolled” money printing, and Vice Finance Minister Zhu Guangyao said yesterday that the program could “shock” emerging markets by flooding them with capital. "

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Re: Daily Digest 11/9 - Coal on the Rise, Energy ...

Where's the Gulf Oil? In the Food Web, Study Says

"It just became food."

          Not according to this recent video:


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Re: Daily Digest 11/9 - Coal on the Rise, Energy ...

Anyone have a comment on this?  I can't imagine this not being in the headline news.  Missile launched 35 miles out to sea of LA, no warning to civilian aircraft (area is heavily flown by the airlines), and no one knows who, what, when, or most importantly.....who again.


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Re: Daily Digest 11/9 - Coal on the Rise, Energy ...

Haven't found any sound information about the missile launch. The news has spread around internet. I remember a few years back there was a missile shield test and a missile was fired from California (had a friend down there that freak out seeing the trail in the sky). Seems rather out of touch with the times if they are firing off something as a "warning".

Will be interesting to hear what the official word is later, be it truth or cover up.

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Re: Daily Digest 11/9 - Coal on the Rise, Energy ...

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Re: Daily Digest 11/9 - Coal on the Rise, Energy ...


"The idea that higher inflation might help isn't outlandish; it has been raised by many economists, some regional Fed presidents and the International Monetary Fund. But in the same remarks in which he defended his new policy, Bernanke — clearly trying to appease the inflationistas — vowed not to change the Fed's price target: "I have rejected any notion that we are going to try to raise inflation to a super-normal level in order to have effects on the economy."

And there goes the best hope that the Fed's plan might actually work."

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Re: Daily Digest 11/9 - Coal on the Rise, Energy ...

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Transition times

From the Kamchatka to the West coast ... Gotta gotta gotta go...

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