Daily Digest

Daily Digest 2/9 - The Tumblin' Default, Denninger And Pollock Discuss Economy, Are There Holes In Pipeline Transparency?

Thursday, February 9, 2012, 10:44 AM
  • Bond Investors: Bonds May Collapse Before Bernanke’s 2014 Target
  • The Tumblin' Default
  • The Root Cause of Excess Flab Almost Everyone Ignore
  • Doomsday Capitalism: Just Getting Started or Going Out of Style?
  • Karl Denninger - Warren Pollock Open Discussion
  • Glasgow solar study: 'We could put oil back in ground'
  • End of the Boom: The True State of the Shale Gas Industry
  • Are There Holes in Pipeline Transparency?
  • New Campaign Urges Labeling Of Genetically Modified Foods
  • Helping Soldiers Trade Their Swords for Plows
  • Rising temperatures at Fukushima raise questions over stability of nuclear plant

Our 'What Should I Do?' guide has steps to cook, see & stay warm in times of power outage


Bond Investors: Bonds May Collapse Before Bernanke’s 2014 Target (David B.)

Yields on bonds have been pathetic for over four years and the Fed wants yields to stay low for another two years too. Ben Bernanke and the Fed manipulated the yield of bonds to spur U.S. GDP growth. But the side effect of that policy was that safe investments now yield nearly zero return for investors. Ben Bernanke has once again managed to penalize responsible savers.

The Tumblin' Default (Ilene)

We're trying to ignore the news but: "You could sell your home, owe nothing more on your mortgage and get $30K," goes a letter from JPMorgan to a delinquent homeowner. With the foreclosure process gummed up, banks are finding it less expensive to allow short sales, forgo their right to pursue unpaid debt, and even offer cash. This should really piss you off if you're paying your mortgage like a good little drone but the same bank (Chase) won't refinance you at 4% because - for whatever ridiculous excuse - "you don't qualify."

The Root Cause of Excess Flab Almost Everyone Ignores (Diana N.)

If you were to receive an annual federal subsidy directly, you would receive $7.36 to spend on junk food and just 11 cents to buy apples. In other words, every year, your tax dollars pay for enough corn syrup and other junk food additives to buy 19 Twinkies, but only enough fresh fruit to buy less than a quarter of one red delicious apple.

With all of the current focus on deficit reduction and wasteful government spending, you would think there would be pretty much universal agreement that there are far better uses for your tax money than subsidizing the ingredients of a Twinkie.

Doomsday Capitalism: Just Getting Started or Going Out of Style? (art)

Farrell then took his discussion in a different direction by applying these doomsday concepts with ideas for a short-term trading strategy to "build a winning portfolio". Among the range of possible doomsday capitalist stock picks, in the context of no. 1 food, Farrell mentioned Syngenta (NYSE: SYT [FREE Stock Trend Analysis]) and Monsanto (NYSE: MON). Farrell then continued on with respect to no. 2 farmland with funds like Ceres Partners and Chess Capital Partners and no. 3 forests with Kimberly-Clark (NYSE: KMB) and International Paper (NYSE: IP). Farrell went on to further discuss other various realms for successful doomsday stock picks in light of chemicals, energy, alternative energy (a separate category), water, solar energy, ozone layer, species diversity, a population growth bubble, and population lifestyle dreams.

Karl Denninger - Warren Pollock Open Discussion (Phil H.)


We talk about the Labor-report, MZM M3, recessions, depressions, deflation, hedonic indicators, global labor value, labor arbitrage, Ben Bernake, congressmen starting to catch on, Zero Rate interest Policy ZIRP = heroin, bubbles, capital, worthless companies, housing booms and busts, collateral, medical costs, derivatives, housing stock, the printing press, minimization, rule of 72, pension plans, tea parties, medicare, multiplier, stealing capital from the private industry, destruction of savings, gold, and silver. Real economic growth only comes with economic surplus. This is a highly detailed discussion-interivew on capital and credit.


Glasgow solar study: 'We could put oil back in ground' (ScubaRoo)

It's easy enough to make electricity into fuel - of a sort - right now. It's an old experiment: you stick two electrodes into some water, apply a voltage - and hydrogen and oxygen bubble up. The trouble with hydrogen? Like electricity, it doesn't store well in large quantities, as anyone who's seen footage of the Hindenburg disaster will testify.

End of the Boom: The True State of the Shale Gas Industry (James S.)

Despite the revisions, the American Petroleum Institute (API), the oil and gas industry's trade lobby, finds the 100-year figure so irresistibly round that API resists reducing it to match the official estimates in its recent ad campaign (see "One Million Jobs"). Why let the facts get in the way of good ad copy?

Are There Holes in Pipeline Transparency? (James S.)

So far, this decade seems to be the decade of the broken oil pipeline, kicking off in stellar fashion with the rupture of Line 6B of the Lakehead pipeline system in southern Michigan. Crews there are still cleaning up that mess two years later because Lakehead was carrying tar sands oil and tar sands oil sinks. This year, the White House passed new laws regulating oil and natural gas pipelines, however. The measure stiffens the penalties for pipeline safety violations and calls for more inspections. Yay for pipelines!


New Campaign Urges Labeling Of Genetically Modified Foods (jdargis)

While some genetically engineered crops are being sold as-is, more GMO foods are sold for processing, making up about 60 to 70 percent of the processed foods available in American grocery stores. The majority of livestock that Americans consume, with the exception of U.S. Department of Agriculture (USDA) certified Organic meat, has been raised on genetically modified grains.

Helping Soldiers Trade Their Swords for Plows (VeganD)

At their farm, called Archi’s Acres, the sound of crickets and croaking frogs communes with the drone of choppers. The syllabus, approved by Camp Pendleton’s transition assistance program, includes hands-on planting and irrigating, lectures about “high-value niche markets” and production of a business plan that is assessed by food professionals and business professors.

Rising temperatures at Fukushima raise questions over stability of nuclear plant (jdargis)

The temperature at the bottom of the No 2 reactor vessel had risen by more than 20C in the space of several days, although it remained below the 93C limit the US nuclear regulatory commission sets for a safe state known as cold shutdown. Tepco said it had also injected water containing boric acid to prevent a nuclear chain reaction known as re-criticality.

The operator said the sudden rise in temperature did not call in to question the government's declaration in December that all three damaged reactors had achieved cold shutdown.

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."


saxplayer00o1's picture
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rjs's picture
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re: Labeling Of Genetically Modified Foods

 seems like you'd just about have to label everything:

A Suit Airs Debate on Organic vs Modified Crops -

. Last year, according to the Department of Agriculture, about 90 percent of all soybeans, corn, canola and sugar beets raised in the United States were grown from what scientists now call transgenic seed. Most processed foods (staples like breakfast cereal, granola bars, chicken nuggets and salad dressing) contain one or more transgenic ingredients, according to estimates from the Grocery Manufacturers Association, though the labels don't reveal that. (Some, like tortilla chips, can contain dozens.) Common ingredients like corn, vegetable oil, maltodextrin, soy protein, lecithin, monosodium glutamate, cornstarch, yeast extract, sugar and corn syrup are almost always produced from transgenic crops.


squarooticus's picture
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Warren Buffett, crony capitalist

Reason finally put this one online: I've been waiting weeks to post about it.


“Warren Buffett is very much a political entrepreneur; his best investments are often in political relationships. In recent years, Buffett has used taxpayer money as a vehicle to even greater profit and wealth. Indeed, the success of some of his biggest bets and the profitability of some of his largest investments rely on government largesse and “coddling” with taxpayer money.”

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Bill Hicks
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Peak Coal Hits Appalachia


Last October, the Huffington Post reported:

Coal here is getting harder and costlier to dig – and the region, which includes southern West Virginia, Virginia and Tennessee, is headed for a huge collapse in coal production.

The U.S. Department of Energy projects that in a little more than three years, the amount of coal mined here will be just half of what it was in 2008. That's a significant loss of a signature Appalachian industry, and the jobs that come with it.

 And this week there was this story:

Alpha Natural Resources says its decision to scale back production and idle some coal mines will cost 152 West Virginians and 168 Kentuckians their jobs in the coming weeks.

Media outlets say the West Virginia mines being idled include the No. 2 Gas Mine in Kanawha County and the Randolph Mine in Boone County, both underground operations.

Hours are being cut at Boone's Black Castle surface mine and the Progress/Twilight surface mine, and at Logan County's Camp Branch surface mine.

The Alloy Powellton Mine in Fayette County is eliminating one underground section.

Connecting the dots.

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A perspective on future U.S. natural gas supply and price

Interesting Bill,

The price of gas is not supporting current extraction activities in all areas. Chesapeake Energy just announced cutbacks.  Check out this comprehensive analysis


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Arthur Robey
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There is no forum for this but I have got to get it off my chest.

The Worlds Worst Salesmen are in Australia.

  • I walk into a shop selling million dollar farm equipment. There are 5 sales people and little old me. Patiently I wait. and Wait and walk.
  • I go to buy a sheepskin for my motorbike. Saleslady:" We dont have sheepskins for motorbikes." I find the perfect skin. Me "This is is beautiful". Saleslady "It is not for motorbikes! It is a home decoration." Me "I'll take it." She: "You can't have it, you will make it dirty."
  • Electronics shop assistant. "No, not a chance, we do not sell electric motors." Me "Let us look." We look on the shelves, nothing. Saleschild "See I told you, we have nothing." Thinks,"(You silly old fool).  " Me "Let us look in the catalogue". There are a whole range of motors. He points out how each one is inadequate in spite of him not knowing a thing about it's intended purpose.
  • "I am looking for a product called Sta-Bil." Salesman (Predictably) "We haven't got it." Me "Let's check. Oh Look, there it is." His friend comes in for a social chat. I Wait, and Wait and wonder off to find a lady assistant. She knows all the products and what they are for.


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