Daily Digest

Daily Digest 9/11 - Yes We Could, But Are We? Peak Denial, Economic Black Plague

Saturday, September 11, 2010, 10:56 AM
  • The Great Deleveraging Lie
  • And You Thought We Were Bearish?
  • Mutant Rat Epidemic Spreading Economic Black Plague
  • No Economic Growth for Years to Come
  • China Industrial Output Tops Forecast as 'Robust' Demand Aids World Growth
  • Letter to Obama: Yes We Could, But Are We?
  • Peak Denial About Peak Oil
  • Spectre of deflation kills the mood at Jackson Hole

Crash Course DVDThe Crash Course Special Edition DVD, available in packs of 1, 4, or 10 (NTSC or PAL)

Economy

The Great Deleveraging Lie (Jim Q.)

You can’t open a newspaper or watch a business news network without seeing or hearing that consumers and businesses have been de-leveraging. The storyline as portrayed by the mainstream media is that consumers and corporations have seen the light and are paying off debts and living within their means. Austerity has broken out across the land.

And You Thought We Were Bearish? (Debu)

How best to summarise this long, depressing outlook on the global economy by Nouriel Roubini and Ian Bremmer? We’ll give it a shot.

Mutant Rat Epidemic Spreading Economic Black Plague (Davos, pinecarr)

We are in the midst of a rat infestation of epidemic proportions -- an ‘Economic Black Death’, a plague, spread by Xenopsylla cheopis (rat-fleas).

These are no ordinary rats. No. Our infestation consists of 900-hundred pound, grotesque, disgustingly despicable, giant, disease-carrying, plague-creating, rat-flea ridden mutant rats.

These rat-fleas carry, bite at, and fatally infect, the two things we need to survive:  A sound economy and freedom.

Crash Course DVDThe Crash Course Special Edition DVD, available in packs of 1, 4, or 10 (NTSC or PAL)

No Economic Growth for Years to Come (Meg)

Ilargi: There is no shortage of analysts and experts out there who see and recognize some part of what’s ailing our economies. There is, however, a huge shortage of those who can connect the parts. Often the American people themselves look to be better judges of reality than all those who make a good living telling them what that reality is.

China Industrial Output Tops Forecast as 'Robust' Demand Aids World Growth (Chris M.)

China’s industrial output rose at a faster pace than analysts estimated in August, signaling that the world’s third-biggest economy is maintaining momentum as growth moderates. Production gained 13.9 percent from a year earlier, more than that 13 percent median estimate of 29 economists, a statistics bureau report showed in Beijing today. Consumer pricesjumped 3.5 percent, the most in 22 months, as food costs climbed. Retail sales increased 18.4 percent.

Spectre of deflation kills the mood at Jackson Hole (Chris M.)

The mood at the annual gathering of the world’s central bankers at Jackson Hole a few weeks ago was grim, particularly for central bankers from the developed world. That was in stark contrast to last year, when the mood was one of relief.

The elite group has good reason for their anxiety. They know better than most the limits of monetary policy.

“We can’t create growth ourselves,” says one senior US central banker, “all we can do is create the conditions that make growth possible.”  

Energy

Letter to Obama: Yes We Could, But Are We? (Debu)

Below the fold is a reposting of an open letter I wrote to newly elected President Obama 20 months ago (posted here as Yes We Can But Will We?). The essay touches on principles of natural capital, debt, and human demand drivers and suggested some ways forward for the then President-elect. In retrospect, I didn't understand the intricacies of our debt crisis at that time (as I now believe debt deflation and or currency reform are clearer and more present threats than resource depletion or environmental damage in upsetting the social applecart), and that large scaling of wind turbines (as I recommend below) may in many ways be counterproductive unless that plan is accompanied by an entirely different economic system and expectations.

Peak Denial About Peak Oil (Jim Q.)

It is par for the course that with oil hovering between $70 and $80 per barrel Americans have continued to buy SUVs and Trucks at a rapid pace. Politicians don’t have constituents screaming at them because gas is $4.00 per gallon, so it is no longer an issue for them. They need to focus on the November elections. It is no time to discuss a difficult issue that requires foresight and honesty. It is no time to tell the American public that oil will be over $200 a barrel within the next 5 years.

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."

5 Comments

SteveS's picture
SteveS
Status: Gold Member (Offline)
Joined: Sep 6 2008
Posts: 358
Re: Daily Digest 9/11 - Yes We Could, But Are We? Peak ...

Jim Q,

Great link on the Deleveraging Myth. Very good read - sort of thing Chris might come out with.

 

 

 

jhart5's picture
jhart5
Status: Bronze Member (Offline)
Joined: Jul 25 2009
Posts: 89
Re: Daily Digest 9/11 - Yes We Could, But Are We? Peak ...

QUOTES OF THE DAY    -   Stephen Hawking

God not only plays dice, He also sometimes throws the dice where they cannot be seen.
Stephen Hawking

I have noticed even people who claim everything is predestined, and that we can do nothing to change it, look before they cross the road.
Stephen Hawking

Intelligence is the ability to adapt to change.
Stephen Hawking 

It is no good getting furious if you get stuck. What I do is keep thinking about the problem but work on something else. Sometimes it is years before I see the way forward. In the case of information loss and black holes, it was 29 years.
Stephen Hawking

It is not clear that intelligence has any long-term survival value.
Stephen Hawking

My goal is simple. It is a complete understanding of the universe, why it is as it is and why it exists at all.
Stephen Hawking 

The whole history of science has been the gradual realization that events do not happen in an arbitrary manner, but that they reflect a certain underlying order, which may or may not be divinely inspired.
Stephen Hawking

To confine our attention to terrestrial matters would be to limit the human spirit.
Stephen Hawking

We are just an advanced breed of monkeys on a minor planet of a very average star. But we can understand the Universe. That makes us something very special.
Stephen Hawking

If that’s the case then maybe it would be a good idea to have the gorillas run Washington, the chimpanzee fix the economy, and the orangutans look after the environmental issues. That will surely get us out of the mess we are in.    J.

Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
Re: Daily Digest 9/11 - Yes We Could, But Are We? Peak ...

Regarding that deleveraging article, the much more significant observation I get from that total credit market debt chart  that the author didn't seem talk about is that debt stopped rising exponentially. 

DavidC's picture
DavidC
Status: Silver Member (Offline)
Joined: Sep 29 2008
Posts: 243
Re: Daily Digest 9/11 - Yes We Could, But Are We? Peak ...

Davos,

'Mutant Rat Epidemic Spreading Economic Black Plague' - your analogy and article are both great, I look forward to the rest!

DavidC

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest 9/11 - Yes We Could, But Are We? Peak ...
DavidC wrote:

Davos,

'Mutant Rat Epidemic Spreading Economic Black Plague' - your analogy and article are both great, I look forward to the rest!

DavidC

Thanks for the kind words. I'm almost done with part 2, the remaining parts will be easier, shorter all but the last which I'm outlining now.

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