Daily Digest

Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, Russian Debt to Rise, Record for Silver Eagle Coins

Wednesday, December 1, 2010, 1:00 PM
  • Spain, Italy Now Face Bonds Pressure
  • Cost Of Insuring Italian Bank Debt Marches Higher
  • S&P threatens Portugal Downgrade
  • Trichet Says EU’s Resolve on Euro Shouldn’t Be Underestimated
  • IMF's Lipsky: Euro `Solid,' Threat `Wildly Exaggerated' -Bloomberg
  • Newport: Home Prices Not Even Close to Bottom
  • Fed's Kocherlakota Says Economy 'Decelerated'
  • Russian Debt Set to Rise to 16% of GDP by 2012: Bond Prospectus
  • Hedge Funds Bet Against Euro, Shirk CDS, in Crisis
  • Portugal's Banks Pile Up Sovereign Debt
  • Portuguese Central Bank Warns of 'Intolerable Risk' (Audio)
  • US Mint's Silver Eagle Coins Set for Record in Nov.
  • Interesting Melt Values for Old Silver Coins Listed at Coinflation

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Economy

Spain, Italy Now Face Bonds Pressure

The borrowing rate for Spain rose to 5.57%, while Portugal's equivalent remained high at almost 7.2%. The gap between Spanish and benchmark German borrowing rates widened to three percentage points, an all-time high....Italy too was under pressure today, with the spread between its 10-year rates and those of Germany widening to two percentage points for the first time. Italian bond yields jumped to 4.687%. In addition to approving an €85 billion deal for Ireland on Sunday, European Union ministers outlined measures under which sovereign debt could eventually be re-structured, signalling that bondholders may have to bear some of the costs of future bail-outs.

Cost Of Insuring Italian Bank Debt Marches Higher

The cost of insuring bonds issued by three of Italy's largest banks rose Tuesday as contagion from the sovereign debt crisis spread like wildfire across Europe, ensnaring other peripheral E.U. sovereigns that until recently were considered healthier. Insurance, sold in the form of derivatives called credit default swaps, became more expensive on senior unsecured bonds issued by Banca Italease SpA, Banca Monte dei Paschi di Siena SpA (BMPS.MI) and UniCredit SpA (UCG.MI). CDS on Italease debt rose to 288 basis points from 270 basis points at the close on Monday, according to data provider Markit. CDS on Monte dei Paschi rose to 265 basis points from 249 basis points, and CDS on UniCredit rose to 194 basis points from 177 basis points Monday night, according to Markit.

S&P threatens Portugal Downgrade

Standard & Poor's tossed a bit of fuel on the euro zone financial blaze Tuesday by threatening to downgrade Portugal. S&P put its A-minus long-term debt rating on Portugal on CreditWatch with negative implications, saying a downgrade is possible in the next three months. The move comes as the weaker European economies, known collectively as the PIIGS for Portugal, Italy, Ireland, Greece and Spain, are under attack in the bond markets.

Trichet Says EU’s Resolve on Euro Shouldn’t Be Underestimated

European Central Bank President Jean-Claude Trichet said investors are underestimating policy makers’ determination to shore up the euro region’s stability as contagion spreads through the bloc’s bond markets. “I don’t believe that financial stability in the euro zone could really be called into question,” Trichet told lawmakers in Brussels today. Observers “are tending to underestimate the determination of governments.”

IMF's Lipsky: Euro `Solid,' Threat `Wildly Exaggerated' -Bloomberg

The euro has a "solid" value and "seems broadly appropriate," the International Monetary Fund's John Lipsky said Tuesday, adding that perceptions that the currency is under threat are "wildly exaggerated." In an interview with Bloomberg and posted on its website, Lipsky, first deputy managing director at the IMF, also defended efforts to shore up Ireland and Greece, which give those governments "breathing space to make the adjustments they need" and "to convince market participants of the success of their efforts."

Newport: Home Prices Not Even Close to Bottom

In light of the latest S&P/Case-Shiller report on home prices, economist Patrick Newport of IHS Global Insight expects prices to fall another 5 to 10 percent before things get better. And it's time to go to the mall - to look for a job.

Fed's Kocherlakota Says Economy 'Decelerated'

U.S. economic growth has been "low and has recently decelerated still further," Minneapolis Fed President Narayana Kocherlakota said Tuesday, according to a transcript of comments prepared for delivery to Hamline University in St. Paul, Minn..... He also repeated his idea for a consumption tax, a labor-income tax break and a one-year investment tax credit that he sees as the equivalent of a 100 basis point interest-rate cut. Kocherlakota becomes a voting member of the rate-setting Federal Open Market Committee in 2011.

Russian Debt Set to Rise to 16% of GDP by 2012: Bond Prospectus

Russia’s sovereign debt will rise to about 16 percent of gross domestic product in 2012, according to a preliminary prospectus for the government’s first sale of ruble Eurobonds obtained by Bloomberg. That compares with 8.3 percent in 2009, 11 percent at the end of this year and 13.6 percent in 2011, the document shows. Domestic debt will account for a larger share of state liabilities over the next two years as the government steps up ruble borrowing, according to the marketing materials, which were prepared by the organizers of the ruble Eurobond offering.

Hedge Funds Bet Against Euro, Shirk CDS, in Crisis

Hedge funds are betting the euro will fall further as Europe's sovereign debt woes spread but have largely abandoned bond insurance trades given uncertainty over political interventions following Ireland's bailout. Some are shorting the euro or taking long positions in the Australian dollar or Norwegian krone versus the euro, betting interest rates in those countries will rise while euro zone rates will stay low.

Portugal's Banks Pile Up Sovereign Debt

Portuguese banks are buying their government's debt at a fast pace, a move that could pose a risk to institutions that so far have weathered the financial crisis better than many. According to the Portuguese Central Bank, the country's financial institutions, including banks, have together invested €17.91 billion ($23.5 billion) in the country's public debt as of September, up 87% from €9.58 billion a year ago. Since the beginning of the year, the exposure has risen 77%. The move also highlights contradictions European authorities are facing to save the region's economies. The officials are providing cheap funding to banks through the European Central Bank, and economists say the banks seem to be using that money to buy government bonds, thereby leaving the country's banking system vulnerable to risks associated with sovereign debt.

Portuguese Central Bank Warns of 'Intolerable Risk' (Audio)

The Bank of Portugal claims its own banking industry faces what it calls an "intolerable risk" if the country fails to get a grip on its spending and borrowing. The warning is contained in the Bank's Financial Stability report which is published this morning. The Portugese budget deficit has continued to worsen despite government spending cuts.

US Mint's Silver Eagle Coins Set for Record in Nov.

The U.S. Mint's American Eagle silver coins sales are set to rise to a record above 4 million ounces in November, as a European sovereign debt crisis and economic uncertainty prompted individual investors to bet on silver and gold as safe havens. Total sales of the popular one-ounce silver American Eagles rose to 4.2 million coins in November, the highest monthly sales since their introduction in 1986. In October 3.2 million one-ounce Eagles were sold, the Mint's web site showed on Tuesday. The figure does not include sales from Nov. 30 but is already well above the monthly average of about 3 million coins this year. Year-to-date sales of the 99.9-percent pure silver Eagles totaled 33 million coins, an all-time high, surpassing the 29 million in the entire year of 2009.

Interesting Melt Values for Old Silver Coins Listed at Coinflation

With silver at over $28 per ounce the 1964 silver dimes have a melt value of just over $2. The  1964 silver quarters are a little over $5. Silver half dollars have a melt value just over $10, while the 1935 Peace Dollars break the trend and have a melt value of nearly $22

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."

20 Comments

saxplayer00o1's picture
saxplayer00o1
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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...

"NEW YORK (CNNMoney.com) -- The nation's battered state governments face a collective $41 billion budget gap next fiscal year, a survey released Wednesday found.

State officials will have to contend with slow revenue growth, increased spending demands and the end of federal stimulus assistance next year, according to the semi-annual Fiscal Survey of States, released by the National Governors Association and the National Association of State Budget Officers.

The start of the 2012 fiscal year is still seven months away for most states, but the gaps are already appearing.

Some 23 states are reporting a total of $41 billion in budget shortfalls. And 11 states must close $10 billion in deficits before the current fiscal year ends."

"Illinois drew robust investor interest for a $1.51 billion tobacco bond, but at a price: it offered a yield above 6% for its longest maturing debt, more than a full percentage point over other recent muni offerings. "

"Overall, investors bid for 1.5 to four times as many bonds as were on offer, depending on the maturity, said John Sinsheimer, Illinois' director of capital markets.

That success still came at a cost. Even with the repricing, the 6.10% yield is 1.27 percentage point more than the yield on Municipal Market Data's single-A rated scale as of Monday's close.

"That's a good chunk of change," said Matt Dalton, chief executive of Belle Haven Investments in White Plains, N.Y. Mr. Dalton, who participated in the deal, said the higher yield was needed "because it's tobacco and because it's Illinois." "

"Camden will lay off nearly half of its police officers and a third of its firefighters, while eliminating positions in every other city office, according to a layoff plan approved Tuesday by the state.

The 383 layoffs represent about a quarter of the city's workforce and touch all corners of city government - from 15 courtroom positions to 20 police dispatchers to all four animal-control officers."

"More than 150 police officers lost their jobs Tuesday after negotiations between their union and New Jersey's largest city broke off, reducing the police force as violent crime has started to rise after three years of decline.

The layoffs began at midnight Monday and were to continue through 4 p.m. Tuesday when remaining officers finished their shifts, Police Director Garry McCarthy said. The 167 layoffs mark the city's largest force reduction in 32 years."

"DOWNTOWN LOS ANGELES (KABC) -- Tuesday was the last day of work for hundreds of Los Angeles Unified School District employees who are losing their jobs because of budget cuts.

Dozens of members from the United Teachers of Los Angeles joined concerned parents and teachers on Tuesday evening at the district headquarters in downtown Los Angeles to protest the layoffs.

The district will be letting go of 680 classified workers including office technicians, secretaries, cafeteria workers and custodians.

Nearly 3,700 more workers will be bumped to other positions or have their salaries cut. Many will be moved from one school campus to another mid-semester."

............................5A) More than 1000 LA Unified workers lose their jobs

"Nevada’s outlook was lowered to negative from stable by Moody’s Investors Service, citing a $3 billion budget gap and an unexpected decline in the gaming industry, “a sector that was previously believed to be recession proof.”

The state that’s home to Las Vegas, the biggest U.S. gambling center, retained its rating of Aa1, second-highest, Moody’s said in a report today.

The negative outlook reflects “a very large expected budget gap for the next biennium; uncertainty around how the state will solve the gap, given the fact that the state has drawn down almost all of its reserves already; a very weak economy, and uncertainty around the recovery of gaming in the state,” Moody’s analysts Emily Raimes and Julius Vizner said in the report. "

"Extended unemployment benefits for nearly 2 million Americans begin to run out Wednesday, cutting off a steady stream of income and guaranteeing a dismal holiday season for people already struggling with bills they cannot pay.

Unless Congress changes its mind, benefits that had been extended up to 99 weeks will end this month."

"Former Federal Reserve Chairman Paul Volcker, who is chairman of President Barack Obama’s Economic Recovery Advisory Board, said the U.S. dollar is in danger of losing its role as a global benchmark currency.

“The growing question is whether the exceptional role of the dollar can be maintained,” Volcker told a gathering of New York civic leaders at the University Club of New York last night.

The decline of the U.S. economy, political gridlock at home, U.S. involvement in two wars and “festering” geopolitical issues in the Middle East and Asia have undermined the ability of the U.S. to influence global events, Volcker said"

"LISBON, Dec 1 (Reuters) - Borrowing costs spiked in

Portugal's 12-month treasury bill auction on Wednesday,

reflecting a rise in market pressure for the country to follow

Ireland and Greece and seek an international bailout. The country sold all the 500 million euros ($651.4 million)

in 12-month treasury bills on offer to decent demand, but it had

to pay 5.281 percent, up from 4.813 percent two weeks ago."

  • Other news, headlines and opinion:

 

Hopes of ECB bond buying calm markets

Euro rises amid speculation ECB may act to contain crisis

Contagion May Force EU to Expand Arsenal to Fight Debt Crisis

Poland Faces Higher Borrowing Costs at 2-Year Bond Sale on Europe Crisis

State Street cutting 1400 jobs, including about 400 in Mass.

Minneapolis plagued by 'zombie buildings'

2010: Our Listeners Questions Answered, Part I (McAlvany...audio)

Rice May Triple in 18 Months as Supplies Tighten, Duxton's Peter Forecasts

Doug's picture
Doug
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Precious metals...

Similar notes on gold struck by two commentators, Jim Sinclair and John Hathaway.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/1_Jim_Sinclair_-_Gold_is_Poised_to_Explode.html

Quote:

When will we see the first $100 move in a single day in gold?

 “Before this year is out.  That is one of the things which I’ve predicated my $1,650 by January of 2011 call on, and we are about to find out.

 Look at Harry (Schultz) dean of the whole bunch, he believes that when confidence falls, it falls instantaneously.  It may be ebbing and flowing, ebbing and flowing, and than all of the sudden wham, it’s gone!  And that will be both the dollar market and the gold market, and it will be in synch.”

Quote:

What would Bert Seligman and Jesse Livermore be thinking here Jim?

 “They would have been looking for a big move here.  They would have been buying for a major move.  Here they would be expecting big, long legs on the upside.”  

 So they would not be selling into strength here, instead they would be holding their book?

 “Absolutely they would hold their book.  Listen, there’s no stopping this Eric.  It just can’t be stopped because these fools have so screwed it up that whatever kind of camouflage that gets pulled over at any time, whatever plays there are that Goldman is making this week or next week, it’s all noise. 

 This stuff cannot be stopped because they have screwed things up that bad.  I mean the place is a wreck, and nobody wants to fix anything.  Everybody wants just to make it go one step further.  They’ve kicked the can, and kicked the can, and the can has gone nuclear.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/30_John_Hathaway_-_Start_Thinking_%24100_Intra-Day_Moves_in_Gold.html

Quote:

With gold up over $20 so far today and silver gaining over $1, King World News interviewed John Hathaway of the Tocqueville Gold Fund.  When asked if we were seeing something similar to the London Gold Pool being overrun in the late sixties Hathaway replied, Yeah, it’s kind of like a prison riot or the walls have come down, Bastille Day or whatever.  I mean this is basically a free-for-all.  I have always said this, we’ll all be surprised at what gold can do when the jig is up for paper money which is where I think we are.  I think we’ll see days when gold is up $100, and then gold is down $100.  We should start thinking three digits in terms of intra-day moves on the gold price.”

Doug

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Precious metals...

duplicate post

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Stefan Molyneux

 

Today on the Alex Jones show:

Alex welcomes to the show Stefan Molyneux, a Canadian philosopher, blogger, essayist, author, and host of the Freedomain Radio series of podcasts. He has written numerous articles for Libertarian websites and has logged over 1,700 podcasts, produced over 500 videos, and authored several books, including On Truth: The Tyranny of Illusion and How (Not) To Achieve Freedom. Stefan's podcast ranges over topics such as anarchism, ethics, Austrian economics, atheism, religion, education, family, and politics. Alex also covers the latest news and takes your calls.

-littleone

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Re: Daily Digest 12/1 - Silver Coin Melt Values

There is nothing unusual with the Peace Dollar being worth proportionately more than a dollar's worth of the lower denomination silver coins as silver dollars contain about 77% of an ounce of silver while a dollar face value in lower denomination 90% silver coins contain about 72% of an ounce in silver.

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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...

Interesting Melt Values for Old Silver Coins Listed at Coinflation

With silver at over $28 per ounce the 1964 silver dimes have a melt value of just over $2. The  1964 silver quarters are a little over $5. Silver half dollars have a melt value just over $10, while the 1935 Peace Dollars break the trend and have a melt value of nearly $22

coins should always have a street value greater than their melt value because they are universally recognizable...

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Dow Surges 200 on Strong Jobs and Factory Data

I just don't get what investors are confident about, though on days like this I wish I was more in than I am out right now.  I've missed some good gains because of a fear that the bottom will fall out and I won't get out in time.

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Re: Dow Surges 200 on Strong Jobs and Factory Data
DrHolden wrote:

I just don't get what investors are confident about, though on days like this I wish I was more in than I am out right now.  I've missed some good gains because of a fear that the bottom will fall out and I won't get out in time.

Me neither.  I don't give these 200 points a half-life of greater than 3 days.  And the currency moves will reverse back to $ up, Ewww-ro down.  We'll see. 

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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...
rjs wrote:

Interesting Melt Values for Old Silver Coins Listed at Coinflation

With silver at over $28 per ounce the 1964 silver dimes have a melt value of just over $2. The  1964 silver quarters are a little over $5. Silver half dollars have a melt value just over $10, while the 1935 Peace Dollars break the trend and have a melt value of nearly $22

coins should always have a street value greater than their melt value because they are universally recognizable...

Thanks, that's the kind of info that may be very useful one of these days.  I've wondered about it myself.

Doug

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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...

 

"Spain's former leader Felipe Gonzalez warned that unless the European Central Bank steps into the market with mass bond purchases, the EMU system will lurch from one emergency to the next until it blows up.

Alluding to Portugal and Spain, he said a third country will need a rescue as soon as "January or February", and fourth soon after, at which point it will "contaminate the whole of Europe and get out of hand".

"If the ECB bought just a third as much public debt as the US Federal Reserve is doing, we could stop the speculation," he said. "

"WASHINGTON (MarketWatch) -- The U.S. is not currently discussing a proposal that would have the International Monetary Fund provide more aid to Europe through an additional contribution to European Financial Stability Facility, a U.S. Treasury official said Wednesday. "An extra commitment is not something we are discussing right now," the official said. Equity markets moved higher Wednesday on reports that the U.S. was ready to support additional IMF funds for the EU stability fund. The IMF has already contributed 250 billion euros to the EU fund. "

......................2A) Euro Soars on Possible US Support for More IMF Aid

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
11/22/2010 9,205,399,986,156.01 4,589,245,757,438.57 13,794,645,743,594.58
11/23/2010 9,205,377,401,824.96 4,591,627,049,102.72 13,797,004,450,927.68
11/24/2010 9,205,659,465,052.82 4,582,629,810,027.17 13,788,289,275,079.99
11/26/2010 9,209,402,845,753.97 4,584,840,158,610.91 13,794,243,004,364.88
11/29/2010 9,209,537,226,897.78 4,580,764,926,328.04 13,790,302,153,225.82
11/30/2010 9,275,024,690,843.88 4,585,749,068,174.55 13,860,773,759,018.43

 

Euro to Lose Support If ECB Buys More Bonds, Bank of Tokyo Says

 

 

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Re: Dow Surges 200 on Strong Jobs and Factory Data
DrHolden wrote:

I just don't get what investors are confident about, though on days like this I wish I was more in than I am out right now.  I've missed some good gains because of a fear that the bottom will fall out and I won't get out in time.

The best piece of investment advice I have heard are words to the effect that: "The market can behave irrationally for longer than you can stay sane". If you just look at the Nikkei on December 29, 1989 it peaked at 38,957.44, today its roughly 10,000. You might ask what were those people on in 1989?, answer same as today, short term greed and long term stupidity. Make you feel better? :-)

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Re: Dow Surges 200 on Strong Jobs and Factory Data
Farmer Brown wrote:
DrHolden wrote:

I just don't get what investors are confident about, though on days like this I wish I was more in than I am out right now.  I've missed some good gains because of a fear that the bottom will fall out and I won't get out in time.

Me neither.  I don't give these 200 points a half-life of greater than 3 days.  And the currency moves will reverse back to $ up, Ewww-ro down.  We'll see. 

 

I think its interesting that whenever the Dow gets close to the 10,000 something threshold it magically goes up 200 points no matter what the market happens to be doing on that day.

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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...

If only the rest of the world could organise some sort of levee bank so all the sea level rises only occur on US coasts...

Republicans axe US climate change committee

http://www.abc.net.au/news/stories/2010/12/02/3082982.htm?section=justin

US president Barack Obama's Republican foes in the House of Representatives say they are disbanding the chamber's committee on battling global warming, calling it a waste of money.

Democrats immediately assailed what they branded the "very disappointing" decision to dismantle the Select Committee on Global Warming, which did not have the power to approve legislation.

"We have pledged to save taxpayers' money by reducing waste and duplication in Congress," said a spokesman for Republican House speaker-designate John Boehner, Michael Steel.

The committee "was a clear example, and it will not continue in the 112th Congress", he told AFP by email.

A spokesman for outgoing Democratic House speaker Nancy Pelosi, set to hand Mr Boehner her gavel when a new US Congress convenes in January, said the panel had played an important role in the debate on climate change and energy.

"It is very disappointing that the House Republican leadership has decided not to prioritise addressing energy independence and climate change in the 112th Congress," spokesman Drew Hammill said.

"Disbanding the select committee does not diminish the urgent need to act on these very critical issues."

- AFP

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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...

DTM

Quote:

Republicans axe US climate change committee

http://www.abc.net.au/news/stories/2010/...

US president Barack Obama's Republican foes in the House of Representatives say they are disbanding the chamber's committee on battling global warming, calling it a waste of money.

Just a sign that the incoming HOR is at least a clueless as the current one is.  Congress has apparently decided to be competely irrelevant at best, disastrous at worst, to the primary issues that will dictate our future.

Doug

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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...

 

 Has the Grauniad been munching on red pills.. ?

 http://www.guardian.co.uk/commentisfree/2010/dec/02/jp-morgan-silver-short-selling-crash

 

 

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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...
DamnTheMatrix wrote:

If only the rest of the world could organise some sort of levee bank so all the sea level rises only occur on US coasts...

Republicans axe US climate change committee

http://www.abc.net.au/news/stories/2010/...

I'm glad to see Australia is a model for CO2 emissions reductions:

http://www.tititudorancea.com/z/ies_australia_carbon_dioxide_emissions.htm

I particularly like the highest per capita country in this article, I guess no levees for Australia either!

http://www.ucsusa.org/global_warming/science_and_impacts/science/each-countrys-share-of-co2.html

Doug and DamnTheMatrix - no worries - as oil production peaks so will CO2 output at least until we start cutting down all the trees......Wink  I guess I'm just really glad all this AGW fear mongering will keep forcing others to subsidize my solar and electric car projects. Money mouth  I wonder if this might have been the goal all along....

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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...

''

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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...

rhare

Quote:

Doug and DamnTheMatrix - no worries - as oil production peaks so will CO2 output at least until we start cutting down all the trees......Wink  I guess I'm just really glad all this AGW fear mongering will keep forcing others to subsidize my solar and electric car projects. Money mouth  I wonder if this might have been the goal all along....

I think the notion that we don't have to worry about climate change in the presence of peak oil is the latest line being pushed by the denialosphere.  In fact, it is specious, as is most of what we hear from the denialosphere. 

http://localfuture.org/2010conference1.htm

At this page there is a short talk by Kurt Cobb, a novelist, in which he demonstrates simplistic ways of showing people the dynamics of peak oil and climate change, and posits that they are both flow problems.  During his explanation of climate change, he uses the atmospheric concentration of CO2 with the now iconic levels of 350 and 450ppm as the current range that is important in figuring out the damage we are facing.  We are now at about 390ppm.  James Hansen claims, and Bill McKibben agrees, that we need to get below 350 ppm to maintain the climate in something like what we currently enjoy.  The 450ppm mark is the level that most climate scientists agree would be disastrous.  We have been averaging about 2ppm per year addition to the atmosphere, but there are indications that rate may be increasing.

The notion that I hadn't heard before, but was proposed by Mr. Cobb, is that in order to actually start reducing the concentrations of CO2 we would have to start reducing our inputs between 90 and 110% of what we are currently adding.  In other words, just stabilizing our current inputs will not work.  Given the half life of CO2 in the atmosphere, the concentration will continue increasing unless we essentially cease adding to it and possibly start net extracting CO2 from the atmosphere.  I don't claim this is 100% accurate, but it is cause to examine these twin issues in a more analytic manner.

OBTW, rhare.  I'm all for solar projects, but perhaps the energy you're putting into electric cars would be better spent on electric trains, or more efficient horse powered equipment. InnocentLaughing

Doug

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Re: Daily Digest 12/1 - Spain, Italy Face Bonds Pressure, ...

Climate Change appears to be the current wild card here, unfortunately in this game we (the human race) is not holding the card. The world is so stressed out about the financial situation, or finding ways to push it off on future generations, that we are forgetting about the amazing effect that exponential climate change will have on us all.  Who saw that coming? (that's going to be my new catch phrase) Global Warming?  Who saw that coming?  Debt we can never pay back, so we just default on it.  Who saw that coming? The Dollar is no longer the the currency for world trade?  Who saw that coming? OPEC nations keeping more of their oil than they export?  Who saw that coming? etc.  The U.S. leans heavily on coal for survival?  Who saw that coming?  Fracking becomes a NIMBY nightmare? Who saw that coming? etc. etc. etc.

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