Daily Digest

Daily Digest 5/20 - Japan Plunged Into Recession, Private Prisons Offer Little Savings, Mississippi Floods Raging Southward

Friday, May 20, 2011, 9:53 AM
  • Earthquake and Aftermath Push Japan Into a Recession
  • Japanese Economy Collapses: Q1 GDP Drops At Double Consensus Rate, Epic Nominal Plunge Of -5.2%
  • Japan's economy: On a mission
  • Private Prisons Found to Offer Little in Savings
  • Don't Tax Oil Companies, Nationalize Them!
  • Libya's disputed oil: Better for the rebels
  • Mississippi floods: Raging southward
  • The New Geopolitics of Food

Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

Economy

Earthquake and Aftermath Push Japan Into a Recession (jdargis)

Economists project that the Japanese economy will shrink again in the current quarter, which ends in June, as production continues to falter and weigh on industrial output and exports.

Still, some data suggest that the recession may be deep but quick.

Japanese Economy Collapses: Q1 GDP Drops At Double Consensus Rate, Epic Nominal Plunge Of -5.2% (pinecarr)

Confirming once again that Wall Street economist (and sell side in general) is the most useless profession in the world (though gladly accepting a 7 figures compensation), is the latest data out of Japan which is yet another stunner to most, as nobody, nobody, could have possible predicted that the Japanese economy would literally fall off a cliff in Q1, plunging at a 3.7% rate (down from -3% previously), which is double the consensus print of -1.9%. DOUBLE. And in nominal terms the collapse was simply epic: -5.2%! And yes, this is officially a recession. Of course, anyone reading Zero Hedge would have been perfectly aware of this outcome. 4 short days ago we said: "Increasingly we have come to believe that the real marginal economy over the next several quarters will be neither that of the contracting US, nor that of the rapidly tightening, yet still very much inflationary China, but the (arguably) third largest one: that of Japan." Today our prediction is more than confirmed.

Japan's economy: On a mission (jdargis)

For much of the crisis, Naoto Kan, the prime minister, has been a sadly withdrawn figure. Yet when he does show leadership, the public responds. His popularity, though low, rose this month after he unexpectedly pressed for the closure of the nuclear-power plant nearest to Tokyo because it sits on a fault line. He has won plaudits for suspending plans to build more nuclear facilities. No doubt he could do more to accelerate an emergency ¥10 trillion ($123 billion) plan for rebuilding damaged parts of the Tohoku region if he were not faced by a “Bring Down Kan” campaign within the opposition and even his own party. But he must get around such pettiness.

    Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

Private Prisons Found to Offer Little in Savings (jdargis)

The state’s experience has particular relevance now, as many politicians have promised to ease budget problems by trimming state agencies. Florida and Ohio are planning major shifts toward private prisons, and Arizona is expected to sign deals doubling its private-inmate population.

Energy

Don't Tax Oil Companies, Nationalize Them! (Ilene)

Oil jumped yesterday, as it often does, on a draw-down in oil inventories which Criminal NarratorsBoosting Crude play off as an indication that demand is picking up. This could not be further from truth! What CNBC, the WSJ or any kind of real journalist COULD do, in roughly 30 seconds, is LOOK at the ACTUAL EIA Report. Doing that, they would see that the net drawdown of 100,000 barrels (yes, really, 100,000 barrels is what's now causing us to pay another $112M a day, which happens to be enough money to buy another 1.1M barrels PER DAY - are you not outraged by this?)was caused by Net Imports of crude dropping from 10.62Mbd last year to 9.42Mbd this year.

Libya's disputed oil: Better for the rebels (jdargis)

In the areas still run by Colonel Qaddafi, which accounted for about three-quarters of Libya’s total pre-war output of 1.6m b/d, the oil infrastructure has suffered less damage but has been hit by the departure of foreigners. In its latest estimate, the International Energy Agency puts production at 200,000 b/d—but all output has probably ceased. A rebel says the regime has 3.6m barrels of oil left, sitting in storage tanks in Ras Lanuf, Sirte and Mellitah.

Environment

Mississippi floods: Raging southward (jdargis)

The Mississippi drainage basin is exceeded only by the Amazon’s and the Congo’s. It stretches from Idaho to New York and from Alberta, Canada to the Gulf of Mexico. Heavy snowfalls last winter followed by heavy rainfall this spring swelled the river to levels unseen since 1927, when it flooded over 26,000 square miles, killing 500 and leaving 600,000 homeless.

The New Geopolitics of Food (dons)

Welcome to the new food economics of 2011: Prices are climbing, but the impact is not at all being felt equally. For Americans, who spend less than one-tenth of their income in the supermarket, the soaring food prices we've seen so far this year are an annoyance, not a calamity. But for the planet's poorest 2 billion people, who spend 50 to 70 percent of their income on food, these soaring prices may mean going from two meals a day to one. Those who are barely hanging on to the lower rungs of the global economic ladder risk losing their grip entirely. This can contribute -- and it has -- to revolutions and upheaval.

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."

9 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
Egypt's finance minister: US will grant up to $2 billion in aide

 

 

  • Headlines:

Fed balance sheet grows to record $2.762 trillion

Greek 10-year yield soars on default fears

Zapatero's Socialists Head for Local Vote Defeat as Spain Protesters March

Tokyo Electric Reports $15B Loss After Quake

Japan govt mulling sales tax hike to 10 pct by 2015-Yomiuri

Japan's Recession Heightens Pressure for Faster Stimulus

S. Korean Banks' Bad-Loan Ratio for Real-Estate Projects Rises

Pile of debt would stretch beyond stratosphere

Texas budget shorts schools by $4 billion

Treasury to Sell $150 Billion in Bills, Notes (Next week)

Tunisia needs $25 billion over five years: PM

Egypt expects $31B deficit in next fiscal year and Egypt's finance minister says US will grant up to $2 billion in aide and Obama pledges 1 billion dollars in debt relief for Egypt

Hungarian Debt Risk May Increase on Deficit, DZ Bank Says

Belarus Gets Bailout Loan Up to $3.5Bln

Minnesota sues debt collector for robo-signing

Country's external debt may climb to $76 billion next year (Philippines)

Santa Cruz pension costs spiral upward

More borrowers default on second liens in April

Dallas Scrambles Under $79 million Budget Shortfall

Cost to hedge US default highest since January

Survey shows potential for rising Pa. school cuts

Fed's Dudley Says 'Moderate' Economic Recovery Is Falling Short of Goals

IMF Says Ireland’s Ability to Sell Bonds Remains ‘Elusive’

Food Inflation in India Seen Acclerating as Farmers’ Costs, Oil Increase

China Gold Imports to Rise After Investment Overtakes India, Council Says

Negative Equity is “Stubbornly High”

First-time Buyers Evaporate

Fitch downgrades Greece to B-plus from BB-plus‎

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2237
A new gold-backed Zimbabwe currency in the future?

"Zimbabwe To Trade Diamonds For Gold As It Prepares To Launch Gold-Backed Currency".  Check out this  ZH article on a  possible gold & diamond backed Zimbabwe currency!  Truth is stranger than fiction!!

 http://www.zerohedge.com/article/zimbabwe-trade-diamonds-gold-it-prepares-launch-gold-backed-currency

A week ago we presented the idea floated by once hyperinflationary Zimbabwe, oddly jeered by most, that the country is seeking to move to a gold-backed currency, adding, somewhat surrealistically, that the "days of the US dollar as the world's reserve currency are numbered." And if anyone should know a hyperinflationary basket case, it's Zimbabwe. Well, today this bizarre story just went fuller retard, after the country announced that it may exchange diamonds for gold "so that it can have a gold-backed currency, according to a recent proposal from the governor of Zimbabwe’s central bank." Indeed we speculated previously why: "Zimbabwe, a country rich in natural resources, took so long to figure out that it was nothing but a puppet in the hands of western monetary interests." Well, others are now getting this idea - Commodity Online reports that "The country is a resource hub: It sits on gold reserves worth trillions. It has the world’s second largest reserves of platinum, has got alluvial diamonds that can fetch the nation $2 billion annually and even boasts of chrome and coal deposits." And since Zimbabwe is now fully on board this whole "pioneering" thing perhaps it should just go ahead and create the first diamond-platinum backed currency. Just don't give China and Russia ideas about floating a new reserve currency that actually has real commodity backing. What's that, you say? They are launching one soon? Oh well.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
debt limit will drag until the 11th hour (Harry Reid)

 

"The Senate majority leader says budget reductions must be accompanied by tax reform. He predicts that negotiations on the nation's debt limit will drag until the 11th hour."

 

 

Sequoia's picture
Sequoia
Status: Member (Offline)
Joined: Feb 10 2011
Posts: 2
Solar cycle 24

The reason for the food shortages are due to the Solar Grand Minimum we are in.  The temperatures of the Northern Hemisphere will fall 1.5 to 2C over the next 20-30 years.  Canada will be reduced to 17th century farming techniques soon "trapping beavers".  Before you laugh look at the evidence.

Canada has not produced a decent crop in 3 years due to cold and wet conditions.

All over the western USA we have record late and deep snow.  Aspen is reopening with over 70" of snow on Labor Day unheard of. Squaw valley had over 750" of snow.  It snowed 5 times in northern Colorado Springs this May including yesterday.

The UK had the 2nd coldest December since 1659.

Mexico and Florida lost their winter crops due to freeze.  For Florida this has happened 2 out of the last 3 years.

Antartica sea ice broke satellite records going back to 1972.

10 million plus fish froze to death in all three river syatems in Boliva last year.

Glaciers all over the world are starting to grow again not shrink.

Europe is now hot and dry very similar to conditions experienced during the Dalton and Maunder Minimums during the summers.

The Wolfe, Spoorer, Maunder, and Dalton Minimums caused the Little Ice Age.  Solar cycle 24 is currently below the levels of the Dalton Minimum.  Solar flux today is at 84 near solar minimum levels almost 4 years into this cycle. 

Prepare for widespread famine as it will be coming.

 

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
What are the 17th century

What are the 17th century farming techniques for trapping beavers? I want to get a head start.

horstfam's picture
horstfam
Status: Bronze Member (Offline)
Joined: Sep 6 2008
Posts: 71
Please post links

Sequoia,

Please post links to more articles/data/sources/web sites on the subject of "Solar Cycles". Thanks, in advance.

 

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Browning Newsletter - Weather/Climate Forecasts
Sequoia wrote:

The reason for the food shortages are due to the Solar Grand Minimum we are in.  The temperatures of the Northern Hemisphere will fall 1.5 to 2C over the next 20-30 years.  Canada will be reduced to 17th century farming techniques soon "trapping beavers".  Before you laugh look at the evidence.

Hmm... How about this one?

Anyone care to take a look at the sample newsletter, and if you live in a mentioned area and have been paying special, more-than-casual attention to the weather (for example, because you are a farmer), would you say that you agree or disagree with her forecasts?

Sample Issue of the Browning Newsletter (probably changes over time, but this one is from Dec. 2010)
"The most persistent question I get, when I am giving my presentations is “Where do you stand on the current global warming/climate change debate?” The answer is “Firmly in the middle, with both sides taking pot shots at me! There is some good science on both sides and some ridiculous pseudo-scientific claims on both sides."

"...this winter we will be experiencing one of the coldest and most miserable of the climate paradoxes:
North America is coldest when the offshore Pacific waters are cold.
North America is coldest when the Northern Atlantic waters are warm.
"
http://www.browningnewsletter.com/images/pdfupload/decemb2010.pdf

Nota Bene: Last month, Evelyn Browning-Gariss was on the Financial Sense Newshour with Jim Pupluva (a few weeks before our own Dr. Chris Martenson was on), so you can listen to what else she might be forecasting in terms of weather/climate:
http://www.financialsense.com/financial-sense-newshour/guest-expert/2011...

Evelyn Browning-Gariss of the Browning Newsletter
"For over 35 years, The Browning Newsletter has been simply the best, most accurate source for long-term climate forecasts. Our subscribers include a diverse group of people and institutions interested in profiting from opportunities presented by changing climate, and those looking to protect their interests that might be affected by changing climate. They include farmers and ranchers, commodities brokers, large banks and financial institutions, hedge funds, agricultural supply vendors, and people interested in our global climate."
http://www.browningnewsletter.com/

Poet

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Noddies wind-up car.

Clearly there is no shortage of oil, the US has 1.75Bn barrels of oil in storage, enough to offset 186 days of imports (9.4Mbd) and 60% of those imports come from Canada and Mexico, not OPEC so our 1,750 MILLION barrels of storage would offset over 500 days worth of imports from the Middle East and Africa – even if it was TOTALLY cut off.

http://www.philstockworld.com/2011/05/19/thursday-thought-dont-tax-oil-c...

If this was a wind up, it failed. I like to examine opinions that are 180degrees out of line with mine, to see if there are any flaws in my understanding of the situation.

"There is clearly no shortage of oil."  Then why do we not drill in my back yard? We drill where the oil is. And we are drilling is hostile environments.

We should nationalize the oil industries? I readsomewhere that 90% of all the oil traded is nationalised. The private companies control about 10% .

Lots of pretty numbers in there. Using numbers supplied I get 465 days of BAU if middle eastern supply is cut off.

Then what? USA runs on 60% of its current oil supply. What will that do to the economy? A little birdie told me that Gawaar is past it's prime, so we can expect more breathless hyperbole from those that will not face their reality.

 

 

Sequoia's picture
Sequoia
Status: Member (Offline)
Joined: Feb 10 2011
Posts: 2
i am on my cell and cannot

i am on my cell and cannot  paste well however these web sites will get you all the informations

 

layman sunspot count

david archibald

 

impact james mazurak

watts up with that

ice age now  which is a little over the top but has good info sometimes.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments