Daily Digest

Daily Digest 12/8 - Rethinking Priorities In A No-Growth World, First-Hand SHTF Survival, The Food Divide

Thursday, December 8, 2011, 10:46 AM
  • If There Is To Be No Growth, Let Us Rethink Our Priorities
  • Fed Is “Ruining an Entire Class of Investors” Says Jim Rogers
  • Social Security 2011 - Another Bad Year
  • Let's Make The Clawback Risk Real
  • Mom Denied Food Stamps Shoots Kids, Kills Self
  • SHTF Survival Q&A: A First-Hand Account of Long-Term SHTF Survival
  • Camden Officials Seek N.J.’s Help With Surge In Crime
  • It’s Time To Start Freaking Out About Oil Prices
  • Texas Faces Blackouts as Grid Supply Fails to Meet Demand
  • The Food Divide

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

If There Is To Be No Growth, Let Us Rethink Our Priorities (ScubaRoo)

Why are more people on the green left not now stating what until recently used to be unthinkable, that we should just forget about growth altogether and opt for no-growth economies? Why is such thinking not high up the agenda at the current world economic summit in Durban, which seems if anything to be backing away from what little green progress was made at previous summits?

Fed Is “Ruining an Entire Class of Investors” Says Jim Rogers (Jeff B.)

No matter what you've heard to the contrary, "there is QE3, the Fed is pumping money into the system," says legendary investor Jim Rogers, disregarding most every Federal Reserve statement over the last six months. In the attached video Rogers explains his lack of trust (read: contempt) for the Federal Reserve and Fed Chairman Ben Bernanke.

Social Security 2011 - Another Bad Year (Ilene)

This system works pretty well as the annual adjustments have been fairly modest and the adjustments have been both positive and negative. That was not the case in 2009. The models that SSA uses significantly overestimated tax revenues in that year. As a result, there were very significant downward revisions to the actual receipts that were reported in 2009. Following is a slide of SSA’s monthly 2010 revenues. Note that the revisions to FICA and SECA from the prior years totaled $28B. (2009 and 2011 also have significant prior year adjustments.)

Let's Make The Clawback Risk Real (June C.)

Don't run any crap about FDIC insurance in this sort of event either -- in the singular case of Bank of America we're talking about $77 trillion in face value of derivatives. While "notional" values are wildly beyond what anyone would have to pay (as that figure assumes the reference all goes to a literal value of zero) the fact remains that with even a 5% loss the amount of money required would be roughly equal to the entire US Federal Budget, which the FDIC clearly does not have -- nor could it acquire.

Mom denied food stamps shoots kids, kills self (June C.)

A Texas woman who for months was unable to qualify for food stamps pulled a gun in a state welfare office and held a seven-hour standoff with police that ended with her shooting her two children before killing herself, officials said Tuesday.

The 10-year-old boy and 12-year-old girl remained in critical condition Tuesday. Authorities identified the mother as Rachelle Grimmer, 38, and children Ramie and Timothy.

SHTF Survival Q&A: A First-Hand Account of Long-Term SHTF Survival (June C.)

In this compendium, Selco describes what it was like living in a city for a year without power, fuel, running water, food distribution or any semblance of traditional commerce. Their currency was useless, there were no police forces or government, and the streets were ruled by gangs and violence. The survival strategies that he, his family, and community used to stay alive are eye-opening and may change some of the priorities that you have when it comes to preparing for a SHTF scenario where you live. Although it’s long read, I highly recommend it given the wealth of knowledge taken from someone who’s lived it.

Camden Officials Seek N.J.’s Help With Surge In Crime (June C.)

"We're currently a city under siege. We are under siege by criminals. We are under siege by the drug activity. . . . We are under siege by murderers," Council President Frank Moran said Tuesday, standing in front of the grocery store.

It’s Time To Start Freaking Out About Oil Prices (Steve Y.)

But then, with even a crappy economic recovery from the depths of the financial crisis, oil prices soared again. And now they're back to near-emergency levels, even with the global economy sputtering.

And this time, no one's blaming "speculators." Which is good, because the "speculator" excuse was always ridiculous. Oil prices are about supply (finite) and (ever-increasing) demand.

Texas Faces Blackouts as Grid Supply Fails to Meet Demand (James S.)

The electrical grid in America can be roughly split into three separate and individual areas. The Eastern Interconnection supplies everything east of the Rockies; The Western Interconnection supplies everything to the west; and The Texas interconnection, supplies Texas. Partly due to a historical desire to be self-sufficient, and partly due to the “Don’t Mess with Texas!” attitude, the lone star state exists in an energy based isolation, wherein the Electric Reliability Council of Texas (ECROT) generates and supplies all its own electricity.

This self sufficiency has in the past benefited them by providing a consistent supply of cheap electricity, but it now looks as though it could be a poisoned chalice.

The Food Divide (jdargis)

In Bayview, where poverty and unemployment run about double citywide averages, these geographic and economic food divides come to a head. District 10, encompassing Bayview/Hunters Point (BVHP), features some of the city's most grocery-impoverished neighborhoods, and has the highest rates of CalFresh usage.

This confluence of lack and need—compounded by a prevalence of fast food and liquor stores over fresh food offerings—has inspired Antonia Williams and other residents to fight for better food in their neighborhoods.

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."

15 Comments

saxplayer00o1's picture
saxplayer00o1
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Poet
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New Vocabulary Term You Will Become Intimately Familiar With

Remember credit default swaps and derivatives?

Say hello to hypothecation and re-hypothecation. Just as stupendously bad - and perfectly legal.

Why The UK Trail Of The MF Global Collapse May Have "Apocalyptic" Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else
"...virtually unlimited leverage via the shadow banking system, in which there are practically no hard assets backing the infinite layers of debt created above, and which when finally unwound, will create a cataclysmic collapse of all financial institutions, where every bank is daisy-chained to each other courtesy of multiple layers of 'hypothecation, and re-hypothecation.'"
http://www.zerohedge.com/news/why-uk-trail-mf-global-collapse-may-have-a...

Poet

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Doug
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We are staring into the abyss

 

http://www.zerohedge.com/news/egon-von-greyerz-there-no-deus-ex-machina-left

Quote:

“THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED”

Ludwig von Mises

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Jim H
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Indeed Doug... we are looking down into the pit...

http://www.zerohedge.com/news/why-uk-trail-mf-global-collapse-may-have-a...

"Simply said: when one truly digs in, MF Global exposes the 2011 equivalent of the 2008 AIG: virtually unlimited leverage via the shadow banking system, in which there are practically no hard assets backing the infinite layers of debt created above, and which when finally unwound, will create a cataclysmic collapse of all financial institutions, where every bank is daisy-chained to each other courtesy of multiple layers of "hypothecation, and re-hypothecation." "

"What this means is that the collapse of the weakest link in the daisy-chain sets off a house of cards that eventually will crash even the biggest entity due to exponentially soaring counterparty risk: an escalation best comparable to an avalanche - where one simple snowflake can result in a deadly tsunami of snow that wipes out everything in its path. Only this time it is not something as innocuous as snow: it is the compounded effect of trillions and trillions of insolvent banks all collapsing at the same time, and wiping out the developed world and the associated 150 years of the welfare state as we know it."

saxplayer00o1's picture
saxplayer00o1
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heffe
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New study finds solar energy near tipping point

A new study in Queens finds that solar energy is reaching a 'tipping point' in regards to its cost per watt when compared to traditional sources.  Equipment costs that are based on dollar per watt of electricty produced have found that when purchasing panels in bulk, the real cost is under $1 per watt.  Give it a few years, bioplastic solar panels, along with unknown and new research, will make use of the millions of terrawatts hitting our planet everyday. 

www.zeitnews.org/energy/solar-power-much-cheaper-to-produce-than-most-analysts-realize-study-finds.html

Now we need to make sure that our global economies no longer follow a linear extraction>production>distribution>consumption>disposal model.

It needs to be, extraction>production>distribution>consumption>recycling/reusing/biodegrading>back into economy. A cyclical model that treats waste as unnacceptable, and seeks the most efficient use of our finite resources. It seems like its slowly happening already. I only wish that market operators would take their short-sighted cost-cutting profit moves and replace them for long term sustainability, though within a competitive market, dependent on scarcity and consumption, it seems very unlikely to occur at a meaningful rate. 

Become the change you want to see in the world, buy as little as you can, recycle as much as you can, buy bulk food, reuse plastic trash in creative ways. If you operate a business, do everything you can to create a zero waste enterprise.  

Damnthematrix's picture
Damnthematrix
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freakin' morons
saxplayer00o1 wrote:

 

 Just a few gloom and doom headlines. The last headline scares me the most though:

Geithner 'encouraged' by Europe's progress

You can say that again.......  freakin' morons the whole bunch of them!  They should consider themselves bloody lucky they're not locked up with me in the same room!!!!

Mike

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rhare
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Scary thought!
DamnTheMatrix wrote:

They should consider themselves bloody lucky they're not locked up with me in the same room!!!!

Now that is a scary thought!

Actually I suspect we would have interesting discussions and discover we agree more than we disagree, but I think we would probably both require a few drinks first.......

After all we both agree that Geithner is a freakin' moron!

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Mirv
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Not a moron, just a 1% gamer

If you consider his goals, (become richer and richer and  richer and richer) he is not a moron but very smart.  This is how the 1% do it.  The 99% believe the crap from the 1% and their media and become even more impoversished. Meanwhile, the gamesmanship continues.  A principal factor in this generation's depression is the technology advance driven extreme  explosion of information and the inability of a person to sift through and figure out fantasy from reality. The Geihnerians (1 percenters or rather 0.1 percenters) are exploiting this over-saturation-generation-confusionation to get the 99% continue to go along with their charade.  Some day years from now books and movies will be made about this guy, and we will look back with awe at how we let one guy do so much damage for simple animal greed.  What I dont get is why desperate poor people who increasingly are turning to violence are not targeting this guy.  Some of them probably have this figured out.

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Damnthematrix
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Not a moron, just a 1% gamer???
Mirv wrote:

If you consider his goals, (become richer and richer and  richer and richer) he is not a moron but very smart.

We obviously have different visions of the future....  people like Geithner will lose EVERYTHING.  Nobody needs to be filthy rich, and WTSHTF, it will all be taken away from them, ala French Revolution.  They'll be lucky to keep their heads......

Mike

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ao
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Damnthematrix wrote: Mirv
Damnthematrix wrote:
Mirv wrote:

If you consider his goals, (become richer and richer and  richer and richer) he is not a moron but very smart.

We obviously have different visions of the future....  people like Geithner will lose EVERYTHING.  Nobody needs to be filthy rich, and WTSHTF, it will all be taken away from them, ala French Revolution.  They'll be lucky to keep their heads......

Mike

While I would shed no tears if the winds of retribution blew Timmy's way, history shows that the odds are very much in favor of the 1% holding on to both their wealth and their heads. 

Damnthematrix's picture
Damnthematrix
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the end of the 1%
ao wrote:

While I would shed no tears if the winds of retribution blew Timmy's way, history shows that the odds are very much in favor of the 1% holding on to both their wealth and their heads. 

Like I said.....  didn't happen in France in 1789.

Mike

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ao
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Damnthematrix wrote: ao
Damnthematrix wrote:
ao wrote:

While I would shed no tears if the winds of retribution blew Timmy's way, history shows that the odds are very much in favor of the 1% holding on to both their wealth and their heads. 

Like I said.....  didn't happen in France in 1789.

Mike

Actually, for the most part, it did.  Do you think the aristocracy in France just dried up and blew away with the Revolution?  And do you forget the emergence of a little fellow by the name of Napoleon?  Like I said, look at the statistical norms of the outcomes throughout the world.  The 1% will stay in power and you'll still be shovelling sheep sh*t. 

Damnthematrix's picture
Damnthematrix
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ao wrote: Actually, for the
ao wrote:

Actually, for the most part, it did.  Do you think the aristocracy in France just dried up and blew away with the Revolution?  And do you forget the emergence of a little fellow by the name of Napoleon?  Like I said, look at the statistical norms of the outcomes throughout the world.  The 1% will stay in power and you'll still be shovelling sheep sh*t. 

Actually, Napoleon came from a very poor family in Corsica, a poor and rocky island anyone would have considered even then to be "way out up the hills".  Most of today's French Elite are Nouveau Riche.....  just where do you think the term even came from?  It seems some people are just genetically wired to become "elite"...

Mike

ao's picture
ao
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Damnthematrix wrote: ao
Damnthematrix wrote:
ao wrote:

Actually, for the most part, it did.  Do you think the aristocracy in France just dried up and blew away with the Revolution?  And do you forget the emergence of a little fellow by the name of Napoleon?  Like I said, look at the statistical norms of the outcomes throughout the world.  The 1% will stay in power and you'll still be shovelling sheep sh*t. 

Actually, Napoleon came from a very poor family in Corsica, a poor and rocky island anyone would have considered even then to be "way out up the hills".  Most of today's French Elite are Nouveau Riche.....  just where do you think the term even came from?  It seems some people are just genetically wired to become "elite"...

Mike

You missed the points I was trying to make.  The origins of the elite aren't important (and, in fact, most of the elite of the world are nouveau riche and, in fact, at one time, all old money started out as new money including the Rothschilds and the Rockefellers).  What's important is the existence and the power of the elite.  It isn't going away, revolution or no revolution.  Some characters will change (like stocks in the Dow) but the domination of the elite will persist.  France went from having a king to having an emperor (which is the point I was making about Napoleon) to a king again to another revolution with the Rothschilds grabbing the real power in the mean time.  Big improvement?  I don't think so.   

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