Daily Digest

Daily Digest 8/22 - Mapping The Tipping Points, China Easing Reliance On Dollar, Peak Oil Talks Revealed

Sunday, August 22, 2010, 10:15 AM
  • Preserve and Protect: Mapping The Tipping Points
  • Take Your Pick: Sinking US or Soaring BRIC
  • Gold Investors Surmounting the Coming Mega Financial and Economic Crises
  • Government Urged To Reveal 'True' National Debt Of £4.8 Trillion
  • China Turns To Asian Currencies To Ease Reliance On Greenback
  • Profits Soar At ANZ
  • Financial Experts And Investors Spooked About The Possible Return Of Deflation
  • Mauldin: How We Get Through This Mess
  • Resource Wars: The Global Crisis Behind BHP Billiton's Bid For Potash Corp
  • Kenol Faces Closure Over Refinery Row
  • Peak Oil Alarm Revealed By Secret Official Talks
  • Thousands Exposed To Shell's Toxic Waste In Brazil

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Economy

Preserve and Protect: Mapping The Tipping Points (pinecarr)

As a sailor, it feels like the ominous period where the crew is fastening down the hatches and preparing for the squall that is clearly on the horizon. Few crew mates are talking as everyone is checking preparations for any eventuality. Are you prepared?”

Take Your Pick: Sinking US or Soaring BRIC (pinecarr)

For want of a better cliché, reallocating US stock positions is like rearranging deck chairs on the Titanic. It would be far wiser to seek passage on a sturdier ship that is sailing with the tide, rather than against it.

Gold Investors Surmounting the Coming Mega Financial and Economic Crises (pinecarr)

Wednesday [August 18, 2010] may prove to have been a very important day in gold. Gold broke early in the day, but then the metal reversed, closing higher than Tuesday's high. For technicians, this amounts to an outside reversal. The Wednesday close put gold back to the level of June 30 and some $73 higher than the July 27 low.

Government Urged To Reveal 'True' National Debt Of £4.8 Trillion (pinecarr)

The Institute of Economic Affairs (IEA) has calculated that the national debt is £4.8 trillion once state and public sector pension liabilities are included, or £78,000 for every person in the UK.

China Turns To Asian Currencies To Ease Reliance On Greenback (pinecarr)

China is increasingly looking to its neighbours' currencies to lessen its reliance on the US dollar, both for investment and trade.

Slowing the pace at which it amasses US Treasurys, China has started buying more South Korean and Japanese government bonds. While the volumes involved are small compared to its holdings of US debt, the moves are helping to illuminate Beijing's strategy to diversify its vast foreign-exchange reserves and shows that it is willing to let smaller markets play a bigger role in its holdings.

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Profits Soar At ANZ (pinecarr)

ANZ chief Mike Smith says the world's developed economies are growing too slowly to eliminate the threat of another Great Depression despite massive government stimulus programs.

Financial Experts And Investors Spooked About The Possible Return Of Deflation (Hubbs)

With mortgage rates at record lows and Treasury rates at their lowest since March 2009—when the S&P dropped all the way to its ominous 666 bottom—the markets aren’t just hedging against the possibility of deflation; they’re expecting it. Todd Harrison, founder and CEO of the financial news and commentary site Minyanville.com, isn’t surprised.

Mauldin: How We Get Through This Mess (JRB)

Long-time readers know that I think we are in for an extended period of slow growth, high and sticky unemployment, and volatile markets punctuated by more frequent recessions. That is what you get when you have a deleveraging environment resulting from a credit crisis. It is what happens when the Debt Supercycle ends.

Energy

Resource Wars: The Global Crisis Behind BHP Billiton's Bid For Potash Corp (SolidSwede)

But behind the rhetoric is a bidding war that lays bare the global struggle for resources on a planet struggling with water and food shortages, overpopulation and pollution. And it highlights a question that overshadows the 21st century: how to provide enough food for a global population that is set to rise from 6.8 billion to more than 9 billion by 2050, according to the United Nations.

Kenol Faces Closure Over Refinery Row (pinecarr)

The energy sector regulator on Thursday warned of a possible expulsion of oil marketer KenolKobil from the Kenyan market, raising the prospect of supply disruptions and a steep rise in prices of petroleum products.

KenolKobil, Kenya’s second largest petroleum marketer by marketshare, is facing action from the Energy Regulatory Commission (ERC) for breach of the law that requires all oil marketers to refine at least 40 per cent of their products at the Kenya Petroleum Refinery Limited (KPRL).

Peak Oil Alarm Revealed By Secret Official Talks (SolidSwede)

Experts say they have received a letter from David Mackay, chief scientific adviser to the DECC, asking for information and advice on peak oil amid a growing campaign from industrialists such as Sir Richard Branson for the government to put contingency plans in place to deal with any future crisis.

A spokeswoman for the department insisted the request from Mackay was "routine" and said there was no change of policy other than to keep the issue under review.

Environment

Thousands Exposed To Shell's Toxic Waste In Brazil (Johan V.)

In the early 1990s an international research agency found that the land and groundwater around the factory were contaminated with pesticides. The substances are known to be carcinogenic and affect the central nervous system.

Later, in 2001, the Brazilian branch of Greenpeace issued a report which stated that the site was heavily polluted and that people living in the area were exposed to the toxic waste.

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

printfaster's picture
printfaster
Status: Bronze Member (Offline)
Joined: Sep 30 2009
Posts: 52
Resource Wars: The Global Crisis Behind BHP Billiton's Bid For P

Re:"a question that overshadows the 21st century: how to provide enough food for a global population that is set to rise from 6.8 billion to more than 9 billion by 2050"

No problem.  We will all be eating just falafel and hummus, an average of nine children per family, and face Mecca.  The future of the world is poverty for all.  There will be no more jobs for "account executives".

 

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1444
Economics in One Speech

Now that few people read anymore (due to more pressing activities such as watching American Idol and having to work longer hours to earn enough money to keep up with the “Federal” Reserve-created inflation), it’s getting harder and harder to convince people to take the few hours needed to read Henry Hazlitt’s Economics in One Lesson. Fortunately, there is now a less time-consuming way--but no less informative--for people to learn basic economics. Austrian economist Glenn Jacobs gave a terrific speech at a recentfreestateproject.org conference. Glenn’s speech is a little over a half hour--but stick around because after his speech there are some equally fascinating economic lessons to be learned from Glenn in the question-and-answer period.

http://www.informationliberation.com/?id=31868

 

britinbe's picture
britinbe
Status: Gold Member (Offline)
Joined: Dec 28 2008
Posts: 381
Re: Daily Digest 8/22 - Mapping The Tipping Points, China ...

The peak oil article is interesting.  I can't help but wonder why they want to keep it quiet.

 

SteveW's picture
SteveW
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Resource Wars: The Global Crisis Behind BHP Billiton's Bid For K

The Chinese interest referred to in the article is Sinofert, which is itself 22% owned by Potash Corporation. This takeover might also drag on for a good year like the Agrium, CF Industries, Terra battle. As a major customer a Sinofert deal makes good sense and the Chinese have been buying into Canadian resources, like much of the rest of the world. My main regret is that I did not buy Potash when I was reviewing it in May.

simentt's picture
simentt
Status: Member (Offline)
Joined: Jul 5 2009
Posts: 15
Re: Daily Digest 8/22 - Mapping The Tipping Points, China ...

it’s getting harder and harder to convince people to take the few hours needed to read Henry Hazlitt’s Economics in One Lesson.

Ouch, Logan - that hurts a bit. I had a veritable epiphany reading the Hazlitt-book, and was quite disappointed when I found that my friends and relatives were not at all interested.

Sigh. Thank you for the video - I'll watch it and pass it on.

-S

britinbe's picture
britinbe
Status: Gold Member (Offline)
Joined: Dec 28 2008
Posts: 381
Re: Daily Digest 8/22 - Mapping The Tipping Points, China ...

http://www.telegraph.co.uk/finance/comment/7958823/America-no-longer-nee...

Latest from Ambrose Evans-Pritchard.  Interesting that he refersto zerohedge.......

Stan Robertson's picture
Stan Robertson
Status: Platinum Member (Offline)
Joined: Oct 7 2008
Posts: 665
Re: Daily Digest 8/22 - Mapping The Tipping Points, China ...

Peak oil is a particularly sore subject for the UK due to their declining North Sea production. But beyond that, there is presently considerable spare production capacity in OPEC, mostly in Saudi Arabia. This is how IEA has it at the moment:

With a current world liquids production of about 84 million barrels per day, there is obviously room for some increase. It will be at least two years and possibly much longer, before we experience another tight supply situation. Peak oil is not likely to cause an economic collapse before there is some actual shortfall of oil supply. Don't expect folks to take the problem seriously until it actually occurs.

 

Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
Re: Daily Digest 8/22 - Mapping The Tipping Points, China ...

I'm cautious about accepting reserve capacity numbers from the IEA without detailed independent analysis to review.  Also, countries like Saudi Arabia I believe are increasing their own demands, taking away from what is available for export.

debu's picture
debu
Status: Silver Member (Offline)
Joined: Aug 17 2009
Posts: 237
Re: Daily Digest 8/22 - Mapping The Tipping Points, China ...

Agree, Woodman, that IEA numbers hardly inspire confidence.

This post and thread from The Oil Drum from a few days ago below shed much light on matter of spare capacity and timelines to reaching no spare capacity at all.   2011/12 perhaps?  I believe CM puts it at circa 2015.

http://europe.theoildrum.com/node/6859

In any case, call it a window.  A nearby one.

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