Daily Digest

Daily Digest 7/10 - The Invisible Unemployed, Australia Carbon Tax Cuts Coal, Why We Care About The Price Of Water In China

Sunday, July 10, 2011, 9:48 AM
  • Boehner Scales Back on Deficit Talks, Citing Tax Increases
  • Somehow, the Unemployed Became Invisible
  • Deserted Villages Left to Become Ghost Towns
  • More Than 20 Shot Dead in Monterrey, Mexico
  • Gillard Unveils Australia Carbon Tax to Cut Coal
  • The Relationship Between Hunger And Petroleum Consumption
  • In Tsunami-Torn City, Seaside Playgrounds Become Debris Dumps
  • Why We Care About the Price of Water in China

Learn how to protect your wealth against the Three E forces using our 'What Should I Do?' guide

Economy

Boehner Scales Back on Deficit Talks, Citing Tax Increases (jdargis)

“Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes,” Mr. Boehner said. “I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase.”

Somehow, the Unemployed Became Invisible (jdargis)

In some ways, this boils down to math, both economic and political. Yes, 9.2 percent of the American work force is unemployed — but 90.8 percent of it is working. To elected officials, the unemployed are a relatively small constituency. And with apologies to Karl Marx, the workers of the world, particularly the unemployed, are also no longer uniting.

Deserted Villages Left to Become Ghost Towns (June C.)

In the hills, their target is a narco-trafficker who has successfully fought both the Army and the cartels off for the past year. He goes by the name “El Gilo”. Mexican federal law enforcement sources identify him as Arnoldo del Cid Buelna; he’s a holdover of the Beltrán Leyva cartel and has been in the mountains south of Arizona for years.

In 2010, the Sinaloa Cartel, the most powerful cartel in the Western Hemisphere, moved against him, trying to roust him from the hills. He ambushed their convoy. Officially, he murdered 21 cartel gunmen. Unofficially, local reporters say there were so many dead that police used bread trucks to haul the bodies down. Since then, both the government and the cartel stay at a respectful distance.

More Than 20 Shot Dead in Monterrey, Mexico (jdargis)

Since President Felipe Calderón began an assault against criminal groups in 2006, more than 35,000 people have died, the government has said, though newspapers here say the toll is closer to 40,000. Polls have shown the public growing increasingly worried that the government has been unable to stem the violence.

Energy

Gillard Unveils Australia Carbon Tax to Cut Coal (jdargis)

Gillard, Australia’s least popular prime minister for 13 years, wants to cut emissions in the developed world’s biggest per-capita polluter to at least 5 percent below 2000 levels by 2020. She already has support from the Greens party and the three independent lawmakers needed to pass the program after plans to price carbon and tax profits of miners cost her predecessor, Kevin Rudd, his job.

The Relationship Between Hunger And Petroleum Consumption-Part 3 (Crash_Watcher)

Parts 1 and 2 looked at the relationship between the global hunger index (GHI) and per capita petroleum consumption. Here in part 3, I describe the relationship between per capita petroleum consumption and another potential indicator of hunger—body mass index (BMI).

Why We Care About the Price of Water in China (jdargis)

Coal plants generate most of China’s electricity. Hydropower is the second-biggest source. Water is clearly essential for hydropower, but a lot of it is needed for coal power, too -- to mine the raw material, to process it and then to cool the power plants that burn it. In 2010, coal-fired electricity in China used more than 30 trillion gallons (114 trillion liters) of water, or about 20 percent of the country’s total consumption. And over the coming decade, roughly 40 percent of the nation’s increase in water demand will be associated with coal power, China’s Ministry of Water Resources says.

Environment

In Tsunami-Torn City, Seaside Playgrounds Become Debris Dumps (jdargis)

The cleanup is expected to cost at least $1.3 billion, with most of the financing provided by the central government. Sendai has wasted no time putting the money to use. In downtown Sendai, with its modern office towers, high-end retail outlets and wide avenues, one has to look hard to find evidence of Japan’s strongest earthquake on record.

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."

14 Comments

DavidC's picture
DavidC
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"Somehow, the Unemployed

"Somehow, the Unemployed Became Invisible"

I was bemused where it says in the article about the unemployed tending to be lower class and less educated. I guess that's why graduate enemployment in the US is between 20 and 25%, with debt that cannot be discharged by bankruptcy. Interesting to see the credit figures, where the non-revolving credit, ex-fed is dropping percentage wise even while the overall figure is climbing again. Why, because a chunk of that non-revolving DEBT is student loans.

DavidC

saxplayer00o1's picture
saxplayer00o1
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Posts: 4064
Eurozone Warning (Italy)

 

This crisis is unfolding very quickly. This search link should keep the updates coming.  This can turn into a major economic event in a very short time if the EU doesn't come up with something very soon. I've posted here for nearly two years and have never put a warning note in the heading until today. Italy is too big to bail out and I don't see another US bank bailout as a possibility. Some current headlines from the search link:

Italy and Spain must pray for a miracle (Ambrose Evans Pritchard)

Italy scrambles to soothe market jitters

US hedge funds bet against Italian bonds‎

Consob to Meet Today, May Restrict Italian Naked Short-Selling

Exclusive: EU calls emergency meeting as crisis stalks Italy

"The spread of the Italian 10-year government bond yield over benchmark German Bunds hit euro lifetime highs around 2.45 percentage points on Friday, raising the Italian yield to 5.28 percent, close to the 5.5-5.7 percent area which some bankers think could start putting heavy pressure on Italy's finances."

 

I'm sure a few searches will turn up other headlines like this one from May 5, so who else are the holders of debt from the "PIIGS"?: Bank of America Increases Italy, Spain Bet by $888 Million

 

EndGamePlayer's picture
EndGamePlayer
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Posts: 546
and the cards come tumbling down . . (Italy)

Hey saxplayer - you beat me to it. . . more on insidebusiness

Yep, Italy is suddenly a crisis country.

EU President Herman van Rompuy has called an emergency meeting for Monday to discuss the Italian contagion, according to Reuters.

A combination of economic and political factors has seen a sharp selloff in stocks, and a surge in yields.

The country is also getting caught up in a continent-wide game of chicken, that started, really, when French banks broached the idea of haircuts for Greek debt holders.

A recent strategy note from Duetsche Bank's Colin Tan and Jim Reid nicely summarizes the state of play in Europe, when it comes to Greece, the rest of the PIIGS, and the bailouts:

SagerXX's picture
SagerXX
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Posts: 2219
Yep, EGP...

Headline stories over at Zero Hedge about a possible ban on short selling in Italy. Last time we had that kind of talk here we were in the immediate aftermath of the Lehman collapse. It's getting real, folks...

Johnny Oxygen's picture
Johnny Oxygen
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Posts: 1443
Re: Somehow, the Unemployed Became Invisible

 

In some ways, this boils down to math, both economic and political. Yes, 9.2 percent of the American work force is unemployed — but 90.8 percent of it is working

I think this quote says it all. How many of us in our circle of family and friends can say that 90.8% are employed?

 

nigel's picture
nigel
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Posts: 138
Word Play

I had to do a double take on that article because of the word play. They should have been more explicit in the description of the work force. What they should have said is 90.8% of the people who want to participate in the labour force, or the labour force participation rate. That figure excludes stay at home parents, the discouraged workers, workers in the informal economy and so on.

phecksel's picture
phecksel
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Posts: 204
Johnny Oxygen wrote:   In
Johnny Oxygen wrote:

 

In some ways, this boils down to math, both economic and political. Yes, 9.2 percent of the American work force is unemployed — but 90.8 percent of it is working

I think this quote says it all. How many of us in our circle of family and friends can say that 90.8% are employed?

 

the govt says unemployment is only 9.2%, so it must be true

/sarc

rritter2000's picture
rritter2000
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Bill Hicks's picture
Bill Hicks
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Posts: 34
Yep...I know a gal who

Yep...I know a gal who earned her Master's Degree this spring with a 3.6 GPA from a decent school.  She's still unemployed with no job prospects and is carrying $100,000 in student loan debt. 

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
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Posts: 1443
Bill Hicks wrote: Yep...I
Bill Hicks wrote:

Yep...I know a gal who earned her Master's Degree this spring with a 3.6 GPA from a decent school.  She's still unemployed with no job prospects and is carrying $100,000 in student loan debt. 

My wife works at a museum and there is a guy there that has a masters in mechanical engineering and a bachelors in architecure plus ten years of teaching experience. Now he is a guard at the museum.

I'm so glad this recession is almost over.

Poet's picture
Poet
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Posts: 1891
90.8% Is Working?
Johnny Oxygen wrote:

In some ways, this boils down to math, both economic and political. Yes, 9.2 percent of the American work force is unemployed — but 90.8 percent of it is working

I think this quote says it all. How many of us in our circle of family and friends can say that 90.8% are employed?

That's totally irresponsible journalism. Especially when we all know there's a greater number, that's closer to 20% or more, that includes the discouraged who haven't found a job in months - as well as the part-timers on minimum wage in retail who qualify for, and would work at a full-time job in a corporate office, if they could find such a job.

Poet

guardia's picture
guardia
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saxplayer00o1's picture
saxplayer00o1
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alcatwize's picture
alcatwize
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Posts: 78
Uh, No that is not true

Somehow, the Unemployed Became Invisible (jdargis)

In some ways, this boils down to math, both economic and political. Yes, 9.2 percent of the American work force is unemployed — but 90.8 percent of it is working. To elected officials, the unemployed are a relatively small constituency. And with apologies to Karl Marx, the workers of the world, particularly the unemployed, are also no longer uniting.

 

9.2% is not the true unemployment percentage.  It doesn't count people no longer looking for a job.  Unfortunately, it's probably twice that.  The author should visit http://www.shadowstats.com/

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