Daily Digest

Daily Digest 2/13 - The Future Of Public Debt, A Simple Hyperinflation Index, Modified Corn For Ethanol Approved

Sunday, February 13, 2011, 11:43 AM
  • Mauldin: The Future of Public Debt
  • The One Chart Von Bernankestein Will Never Admit To Seeing
  • China faces arduous task of fighting drought despite snowfall, irrigation
  • A Simple Hyperinflation Index
  • Algerian protesters clash with police as Egypt fervour spreads
  • Obama’s Budget Seeks Deep Cuts in Domestic Spending
  • Wisconsin May Take an Ax to State Workers’ Benefits and Their Unions
  • U.S. Approves Corn Modified for Ethanol

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Mauldin: The Future of Public Debt (JRB)

Our argument in Endgame is that while the debt supercycle is still growing on the back of increasing government debt, there is an end to that process, and we are fast approaching it. It is a world where not only will expanding government spending have to be brought under control but also it will actually have to be reduced. In this chapter, we will look at a crucial report, “The Future of Public Debt: Prospects and Implications,” by Stephen G. Cecchetti, M. S. Mohanty, and Fabrizio Zampolli, published by the Bank of International Settlements (BIS).

The One Chart Von Bernankestein Will Never Admit To Seeing (pinecarr)

Charting Austrian Money Supply, the Fed's outright security holdings, and commodity prices. Any questions?

China faces arduous task of fighting drought despite snowfall, irrigation (pinecarr)

The drought is likely to continue to affect more crops, as the weather is getting warmer and the winter wheat needs large amounts of water when turning green, said Chen Lei, deputy director of the Office of State Flood Control and Drought Relief Headquarters.

As of 3 p.m. Thursday, the drought had affected 101.28 million mu (6.75 million hectares) of crops, of which, about 15.06 million mu were severely affected. The drought also left 2.81 million people and 2.57 million livestock short of drinking water.

A Simple Hyperinflation Index (pinecarr)

Hyperinflation occur when prices change significantly on a daily basis. In a hyperinflationary economy the purchasing power of paper money drops significantly every day, or every 24-hour period, or sometimes even faster. Hyperinflation is already present in some parts of the world and it may not be too long before it becomes a nightmare reality in the United States of America. In a separate article published on October 7, 2010 on this web site called "The Hyperinflation Meltdown" I benchmarked the prices of three commodities: gasoline, diesel fuel, and fresh hamburger.

Algerian protesters clash with police as Egypt fervour spreads (pinecarr)

Even before Egypt's Hosni Mubarak had stepped down, the 12-year regime of Bouteflika had been considered to be under most threat from the popular uprisings now galvanising the Arab states. Wedged alongside Tunisia, where President Zine al-Abidine Ben Ali was ousted 30 days ago, and near Egypt, which fell on Friday, the unstable nation has many of the characteristics of both – a disenfranchised youth and rising prices of basic goods, such as sugar and cooking oil.

It also shares a large, pervasive security presence, authoritarian rule and a general sense that citizens are not benefiting from its wealth and resources.

Obama’s Budget Seeks Deep Cuts in Domestic Spending (jdargis)

Two-thirds of the reductions that Mr. Obama will claim are from cuts in spending, including in many domestic programs that he supports. Among the reductions for just the next fiscal year, 2012, which starts Oct. 1, are more than $1 billion from airport grants and nearly $1 billion from grants to states for water treatment plants and similar projects. Public health and forestry programs would also be cut.

Wisconsin May Take an Ax to State Workers’ Benefits and Their Unions (jdargis)

The proposal by Mr. Walker, a Republican who was elected in November after pledging that he would get public workers’ compensation “into line” with everyone else’s, is expected to receive support next week in the State Legislature, where Republicans also won control of both chambers in the fall.

U.S. Approves Corn Modified for Ethanol (jdargis)

The decision, announced Friday, came in the face of objections from corn millers and others in the food industry, who warned that if the industrial corn cross-pollinated with or were mixed with corn used for food, it could lead to crumbly corn chips, soggy cereal, loaves of bread with soupy centers and corn dogs with inadequate coatings.

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12 Comments

SteveW's picture
SteveW
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Posts: 490
U.S. Approves Corn Modified for Ethanol

http://www.nytimes.com/2011/02/12/business/12corn.html?src=busln

The link doesn't work so this is the NY times version.

This looks like another disastrous decision by the USDA. Companies are taking the easy short cuts in their genetic modifications, risking widespread environmental contamination without any thought for the consequences. Since corn is wind pollinated you can pretty well guarantee that the amylase modified corn will spread.

patrickhenry's picture
patrickhenry
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Re: Daily Digest 2/13 - The Future Of Public Debt, A Simple ...

Not sure which gets more me angry;  The GMO beets, alfalfa, corn being approved by the US.DUH , or this sentence from the article "As much as 40 percent of the nation’s corn crop last year is going into ethanol production."

In addition to burning our food - via corn ethanol - causing corn prices to almost double in the last 12 months, the tremendous subsidies of corn growing and now corn ethanol have maladjusted free enterprise farming to such an extent, it will take years to self correct until food prices (not counting for inflation) are anywhere near normal again, even when and if subsidies are decreased or removed.

rjs's picture
rjs
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Re: U.S. Approves Corn Modified for Ethanol
SteveW wrote:

http://www.nytimes.com/2011/02/12/business/12corn.html?src=busln

The link doesn't work so this is the NY times version.

This looks like another disastrous decision by the USDA. Companies are taking the easy short cuts in their genetic modifications, risking widespread environmental contamination without any thought for the consequences. Since corn is wind pollinated you can pretty well guarantee that the amylase modified corn will spread.

this guarantees that you will have to buy your seed from agribusiness for whatever purpose you need it for...no more dependable open pollinated corn...same with alfalfa, et al...all farmers have been reduced to captive serfs..

maceves's picture
maceves
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Re: Daily Digest 2/13 - The Future Of Public Debt, A Simple ...

Between the ethanol corn  and a quarter of U.S. rice production being diverted to cotton next year,  world food prices are guaranteed to rise again even if weather is better.

I wonder....once a product like that is out in the fields, can it ever be recalled?  Will we have pest "weed" corn that we can't get rid of?

robie robinson's picture
robie robinson
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Posts: 1182
Re: U.S. Approves Corn Modified for Ethanol

We always grow some OP corn usually more than .5miles from any GM corn(its all my family and ourfriends/critters eat)

 

robie(pick it with a New idea then crib it)

Nate's picture
Nate
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Posts: 590
Re: U.S. Approves Corn Modified for Ethanol

My views on GM based plants are based on working for an ag chemical company 3 years and an acedemic background including graduate courses in chemistry, biochemistry, botany, and genitics.  

1) Zea maize is genetically unique , making cross pollination with any North American grass speclies impossible.  Period.  Big picture - Zea maize won't be around long term due to the enormous chemical inputs required.  Grass fed beef, based on native tall and short grass grass species will rule.  NO native NA grass will cross pollinate with Zea maize. 

2) The largest concern for the company I worked for was the billion pounds of OP pesticides required to kill corn root worm.  Incorporating the gene that codes for BT in the roots to eliminate the billion pounds of pesticides isn't bad.  I worked with BT without gloves.   I was on a cholinesterase testing program due to my work with OP pesticides.  Which is worse? 

3) During my interview (early 1980's) for the position with the ag chemical company, I asked about how glyphosate worked.  It's a PS2 inhibitor.  I assume (I'm dated here, so I'm open to corrections) redundant genes that code for the enzyme glyphosate binds from the native plant are used to make plants "Round-up Ready" plants.   That doesn't bother me.  A phosphate and glycine bound to form a herbicide?  That can't bother anyone on this site.

Big picture. 

Peak oil = peak food = peak people

Time is currently your greatest gift.  GM plants are down around #50 on my list for what to worry about.  Plant your garden with heirloom seeds.  Grow natural insecticidal plants.  Focus on what you have control over.  That's what I'm doing.

And enjoy one more glass of good red wine.  (I keep telling my wife it is for my heart - it's worked so far)

Nate

 

 

 

 

  
HarryFlashman's picture
HarryFlashman
Status: Bronze Member (Offline)
Joined: Aug 1 2008
Posts: 54
Re: Daily Digest 2/13 - The Future Of Public Debt, A Simple ...

@Nate,

 

It's good to have someone with your background and experience commenting on this topic.I for one am reassured.

 

I think there'll be a little lag time between peak oil and peak pop(10 years maybe),then the biblical famines will start(China or India maybe).

 

Good call on the Red Wine,it's the one thing I can drink and not get a hangover.I consider it a health drink(though maybe not when I put 2 bottles away......)!

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
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Posts: 3998
Re: Daily Digest 2/13 - The Future Of Public Debt, A Simple ...

http://www.businessspectator.com.au/bs.nsf/Article/Chinas-gold-tsunami-pd2011020\
8-DUSTE?OpenDocument

Global inflation concerns are adding to gold's luster, with a recent report
predicting that Chinese demand for gold as an inflation hedge is resulting in
unprecedented physical demand for the precious metal, which will likely push
prices higher this year.

At the same time, there are signs that gold is expanding its role as an
alternative currency. Overnight, the US investment bank JP Morgan Chase & Co
said it would accept physical gold as collateral against securities lending and
repurchase obligations. The bank explained that many of its clients held gold on
their balance sheets as an inflation hedge, and wanted to use this gold as
collateral for financial transactions.

The latest newsletter from Sprott Asset Management, entitled `Gold Tsunami',
focuses on gold's attractiveness as an inflation hedge for Chinese and Indian
investors. It argues that while western investors are content to hold paper
assets, such as stocks, bonds, annuities and insurance, along with their real
estate investments, the attitude of Chinese and Indian investors is very
different.

"Halfway across the world, investors in China and India have never trusted paper
investments as a store of value – and they're converting their hard earned paper
money into gold and silver bullion. Not that this is anything new. It isn't. But
the scale and speed with which they are accumulating precious metals IS new, and
it's driving the fundamentals that we believe will lead to higher prices in
2011."

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1182
Re: Daily Digest 2/13 - The Future Of Public Debt, A Simple ...

Interestingly, the GM/BT corn seems to be breaking down post harvest more slowly that preBT corn some mainstream ag types are supposing the BT hinders soil microbes from doing there job. solution is to squirt it with more nitrogen.

i'll look for article and post

 

robie ps http://southeastfarmpress.com/grains/extra-n-needed-speed-decay-bt-corn-stalks?cid=nl_sefpd

Germanni's picture
Germanni
Status: Member (Offline)
Joined: Mar 20 2010
Posts: 14
Re: Daily Digest 2/13 - The Future Of Public Debt, A Simple ...

Another "progress report" on housing.

Housing Crash Is Hitting Cities Once Thought to Be Stable

http://www.nytimes.com/2011/02/14/business/economy/14dip.html?src=un&feedurl=http://json8.nytimes.com/pages/business/index.jsonp

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4147
Re: Daily Digest 2/13 - The Future Of Public Debt, A Simple ...

'''

SteveW's picture
SteveW
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Re: U.S. Approves Corn Modified for Ethanol
Nate wrote:

1) Zea maize is genetically unique , making cross pollination with any North American grass speclies impossible.  Period.  Big picture - Zea maize won't be around long term due to the enormous chemical inputs required.

Nate, I was concerned about the intra-species wind pollination of Zea mays. Of course it won't cross with native grasses.

Perhaps maize needs enormous chemical inputs as currently grown but it was a major crop in Central America long before the Spanish arrived and is a better source of human nutrition than grass.  Wink

When I spoke about short cuts I was thinking that the amylase gene, a natural corn colour marker and a dominant allele for absent anthers could have been put on a transposon making the modified corn seed recognizable and male sterile.

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