Daily Digest

Daily Digest 4/6 - What The U.S. Can Learn From The Titanic, 3 Major Bubble-Bursting Events, Global Oil Production In Trouble

Friday, April 6, 2012, 9:47 AM
  • “Too Big to Fail,” What the U.S. Can Learn From the Titanic
  • What Happens If Iran Doesn't Back Down?
  • 4 Massive Government Bubbles; 3 Major Events That Will Burst The Bubbles
  • Small Banks Shift Charters to Avoid U.S. as Regulator
  • State Public Workers Rushed to Join Pensions Before Cutback
  • As Riots Boil Over, These Guards Don’t Budge
  • Global Oil Production In Trouble
  • Farm-Fresh Infringement: Can You Violate A Patent By Planting Some Seeds?

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

Economy

“Too Big to Fail,” What the U.S. Can Learn From the Titanic (David B.)

A full century after the fact, most people know that the Titanic did in fact sink. That’s the beauty of hindsight: We get to shake our heads and scoff at other people’s foolish mistakes, easily accepting that there’s room for human error in anything human-made.

What Happens If Iran Doesn't Back Down? (James S.)

That the President or anybody else is counting on the world demand for petroleum curve to shift left in 2012 seems doubtful. And which are the countries from which increased production is anticipated? Libyan production averaged only 500,000 barrels/day in 2011, and if things go well could soon be producing a million barrels more than that daily. In the meantime, disruptions in Sudan, Syria, and Yemen have taken out a separate 640,000 barrels/day. The best hope is perhaps Saudi Arabia, which presumably has been making private statements to U.S. officials similar to this public statement from Saudi Oil Minister Ali Naimi last Wednesday:

Saudi Arabia's current capacity is 12.5m barrels per day, way beyond current levels demanded, and a reliable buffer against any temporary loss of production. Saudi Arabia has invested a great deal to sustain its capacity, and it will use spare production capacity to supply the oil market with any additional required volumes.

4 Massive Government Bubbles; 3 Major Events That Will Burst The Bubbles (David B.)

If we’ve learned anything in the twelve years since New Year’s Day, 2000, it’s that buy-and-hold investors are practically begging to get their heads handed to them.

Small Banks Shift Charters to Avoid U.S. as Regulator (jdargis)

Banks are displaying a familiar pattern, Mr. Gilkeson said. After each financial crisis, lawmakers try to buttress regulation by closing a weak supervisor and consolidating oversight under a stronger central agency. Then many banks, faced with a new regulator, try to find more lenient supervision. In the late 1980s, because of the savings and loan crisis, the Federal Home Loan Bank Board was closed and the new Office of Thrift Supervision, he said, was going to be the “big muscle.”

State Public Workers Rushed to Join Pensions Before Cutbacks (jdargis)

Public-employee unions, which had unsuccessfully fought to dissuade the Legislature from reducing pension benefits, campaigned using social media and traditional forms of outreach to persuade workers to sign up before the benefits dropped. The New York State United Teachers asked local union leaders to alert their members.

As Riots Boil Over, These Guards Don’t Budge (jdargis)

On some days, however, the stone-throwing has proved too much, and the soldiers — one on each side of the tomb, which honors fallen soldiers from long-ago wars — have been marched away. Lt. Col. Petros Miliopoulos, the officer in charge of the battalion, has a pile of newspaper clippings he is saving, many with front-page photographs of the guards surrounded by the mayhem.

Energy

Global Oil Production In Trouble (suesullivan)

"There are always disruptions, but when the market is this tight, they have an impact," said Daniel Yergin, IHS CERA Chairman and author of "The Quest: Energy, Security, and the Remaking of the Modern World." "It would be better for the economy if these barrels were there."

Environment

Farm-Fresh Infringement: Can You Violate A Patent By Planting Some Seeds? (Jason C.)

Bowman argued his use of the seeds is covered by patent law's "exhaustion doctrine." This doctrine, like copyright law's first sale doctrine, holds that a patent holder's rights in a particular product are "exhausted" when the product is sold to an end user. The Supreme Court beefed up the exhaustion doctrine in 2008 when it held that LG could not "double dip" on patent licensing fees—charging both chipmaker Intel and OEM Quanta royalties for the same chip.

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."

8 Comments

littlefeatfan's picture
littlefeatfan
Status: Silver Member (Offline)
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Posts: 141
Updated 3E links, cartoons, and resources

You ain't seen nothing yet edition  http://3es.weebly.com/

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 4239
Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Government Employment Bubble

Re:  4 Massive Government Bubbles

Third, we have a Government Employment Bubble. The Heritage Foundation reports that since December 2007, even while the private sector workforce has shrunk by 6.6%, shedding more than 7.5 million jobs … the federal government workforce has grown by 11.7%, adding 230,000 jobs.

Ah that statistics and damned lies again......!  I mean really, 230,000 jobs is a bubble?  Hardly makes a dent in the 7,500,000 jobs lost!

Most Americans are insulated from the rest of the world, this whole anti government thing I see on this site really is a US phenomenon.  Nobody likes their government, but no other nation hates government like the US!

THEN.......  we find near the bottom:  How to Grow Rich in Bubble Land

Hah hah hah......  they were trying to sell you another dream all along!

In your dreams.....  without cheap and abundant oil, getting rich is pretty well out of the question, and in any case, what's the point?  True wealth is knowing how to survive those Limits to Growth curves Arthur loves so much....

Mike

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pnewton
Status: Member (Offline)
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Posts: 5
Podcast you might like

Check out this podcast with Irv Mills.

Great podcast on Peak Oil and everything you might see on Chris Martenson.

http://petenewton.podbean.com/2012/04/04/ep31-irv-mills-peak-oil/

Pete 

rhare's picture
rhare
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Joined: Mar 30 2009
Posts: 1329
Statist brain washing in Australia?
DamnTheMatrix wrote:

Ah that statistics and damned lies again......!  I mean really, 230,000 jobs is a bubble?  Hardly makes a dent in the 7,500,000 jobs lost!

You missed the point.  The government isn't supposed to make up the jobs, the problem is that there are 7,500,000 fewer people helping to pay for 230,000 more government positions. 

So at an average salary of $67,691 with say a 70% overhead (benefits, office space, equipment, etc - probably low), so about $115K per employee.  203,000 means 13,741,273,000 spread out among the 106,000,000 that have to pay for those employees means each of the remaining workers makes $129 less per year.

Now since taxes are spread really unevenly and 50% of the population doesn't pay any, it means those of us that do have to support yet larger government bureaucracies which generally provide nothing and make doing actual work harder.

DamnTheMatrix wrote:

Most Americans are insulated from the rest of the world, this whole anti government thing I see on this site really is a US phenomenon.  Nobody likes their government, but no other nation hates government like the US!

Let's see - out of control spending, bad foreign policy, imperialism, manipulation of the worlds reserve currency, ...

Seem like a pretty good reason to be unhappy, in fact you have often expressed unhappiness about those things as well.  Perhaps you just like to bash Americans, but it seems kind of odd that you bash those that believe an out of control government is a problem.

However, since we are able to borrow and print to cover most of that extra spending due to the dollar reserve currency status, I'm glad you don't have a problem with the prices going up for YOU (as an Australian citizen) to pay for those 203,000 extra workers the federal government hires.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
rhare wrote: DamnTheMatrix
rhare wrote:
DamnTheMatrix wrote:

Most Americans are insulated from the rest of the world, this whole anti government thing I see on this site really is a US phenomenon.  Nobody likes their government, but no other nation hates government like the US!

Let's see - out of control spending, bad foreign policy, imperialism, manipulation of the worlds reserve currency, ...

Seem like a pretty good reason to be unhappy, in fact you have often expressed unhappiness about those things as well.  Perhaps you just like to bash Americans, but it seems kind of odd that you bash those that believe an out of control government is a problem.

However, since we are able to borrow and print to cover most of that extra spending due to the dollar reserve currency status, I'm glad you don't have a problem with the prices going up for YOU (as an Australian citizen) to pay for those 203,000 extra workers the federal government hires.

I think what's out of control is your exponential curve.... on everything.  No other nation (with the potential exception of China joining your ranks soon...) has grown to your national level.....  plus you have the exclusive capacity to print the world reserve currency, which you can't blame government for.  Can you?

Re our prices going up, you must be kidding!  We're paying nearly six bucks a gallon for gas, and 21c/kWh for electricity.  The average house here costs $450,000, and you can't buy a half decent car for under $20K....

Mike

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
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Posts: 3998
Statist brain washing in Australia?

removed - double post

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1329
Throwing stones in glass houses again?
DamnTheMatrix wrote:

I think what's out of control is your exponential curve.... on everything.  No other nation (with the potential exception of China joining your ranks soon...) has grown to your national level.....  plus you have the exclusive capacity to print the world reserve currency, which you can't blame government for.  Can you?

Yeah, who do you think keeps the dollar as the world reserve currency?  Who forces the US citizens to use it?  Also, I wouldn't be throwing stones in the glass house.  Australian citizens are not much different in debt and resource consumption per captita than those in the US.

Energy consumption per capita by country

External debt per capita by country

So exactly how do you arrive at your "No other nation" comment.  I mean if energy use or debt are at all in your criteria there are certainly countries that are even worse...  No I think you just are really biased against Americans - this is my opinion given your regular anti-American comments. We are a scapegoat for you.

As far as government, I don't hate my government as you alleged in the original post, what I realize is that it's on a collision course with reality and is unsustainable.  Perhaps you should be more worried about the same type of unsustainable situation going on in your neck of the woods? 

DamnTheMatrix wrote:

Re our prices going up, you must be kidding!  We're paying nearly six bucks a gallon for gas, and 21c/kWh for electricity.  The average house here costs $450,000, and you can't buy a half decent car for under $20K....

Exactly my point, we spend, you pay.  Nice (for us) isn't it.

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