Daily Digest

Daily Digest - February 14

Sunday, February 14, 2010, 11:50 AM
  • Singapore accused of launching 'Sand Wars'
  • Germany and France strike deal to rescue Greece from debt crisis
  • Ponzi Scheme
  • Products and Services for the Permanently Unemployed Consumer
  • China or the U.S.: Which Will Be the Last Nation Standing?
  • Mauldin: Between Dire and Disastrous 
  • Greece Outlaws Cash Transactions Above 1500 Euros, Unveils New Taxes
  • Greece’s Woes May Give Pause to Euro Zone Candidates
  • Australia welcomes China's investment, if not its influence
  • Inexpensive power draws co-location company to Iceland 
  • The Peak Oil Crisis: Government in Transition

Economy

Singapore accused of launching 'Sand Wars' (Joemanc)

The island city-state's size has increased by over 20 per cent since the 1960s and demand for sand for lucrative land reclamation and development projects is higher than ever.

However, recent bans on exporting sand introduced in Indonesia, Cambodia and Vietnam have cut off supplies and opened up a thriving smuggling trade. Thieves have begun making night-time raids on the picturesque sandy beaches of Indonesia and Malaysia, carving out millions of tons of coastline and leading to fears of an imminent environmental catastrophe on a swath of tropical islands.

Germany and France strike deal to rescue Greece from debt crisis (pinecarr)

Gregg Gibbs, a strategist at Royal Bank of Scotland, said that “while a support package for Greece may remove the immediate risk of rapid contagion, it transfers more risk to the core, and will have permanently damaged the credibility of the euro as a better reserve currency than the dollar. It will infect the European Central Bank's monetary policy and generate stress between EU countries.” he said.

Ponzi Scheme (pinecarr)

Let’s face it, the government-bond market in the West is a gigantic Ponzi scheme. Most governments in the ‘developed’ world are drowning in debt, they are running mind-boggling budget deficits and printing money like there is no tomorrow. Furthermore, under the guise of quantitative easing, their central banks are buying their own newly issued debt!

Products and Services for the Permanently Unemployed Consumer (pinecarr)

Developing and marketing products for a shrinking market poses an interesting set of challenges. Even if a company does an outstanding job and is able to steadily grow its market share, these gains are negated if the market itself continually shrinks by an ever larger amount.

China or the U.S.: Which Will Be the Last Nation Standing? (pinecarr)

Silly me. Here I had thought that world leaders would want to keep their nations from collapsing. They must be working hard to prevent currency collapse, financial system collapse, food system collapse, social collapse, environmental collapse, and the onset of general, overwhelming misery—right? But no, that's not what the evidence suggests. Increasingly I am forced to conclude that the object of the game that world leaders are actually playing is not to avoid collapse; it's simply to postpone it a while so as to be the last nation to go down, so yours can have the chance to pick the others' carcasses before it meets the same fate.

Mauldin: Between Dire and Disastrous (JRB)

The news is somewhat “All Greece, All the Time,” but most of the pieces miss the more critical elements, and in today’s letter we will look at what I think those are, as well as at the important point that Greece is a precursor of a new era of sovereign risk. Plus, we glance at a few rather silly recent comments from economists. It will make for a very interesting discussion.

Greece Outlaws Cash Transactions Above 1500 Euros, Unveils New Taxes (Nickbert)

In an attempt to rein in the shadow economy and collect more tax revenue, Greece outlaws cash transactions greater than 1500 Euros.

Greece’s Woes May Give Pause to Euro Zone Candidates (Nickbert)

Latvia has been on track to adopt the euro in 2014, as has Lithuania, with Estonia eyeing its inclusion by 2011. These governments have reason to fear that, like Athens, they will be caught in a vise: unable to pay for expensive social programs demanded by citizens while staying within the euro zone’s debt limits.

Australia welcomes China's investment, if not its influence (Marc H.)

Here in this land of searing heat, scrub and eucalyptus, a land so vast that road signs warn the next gas station is 600 miles away, Mount Whaleback was once 1,500 feet high. Today it's a hole, the biggest open-pit iron ore mine in the world -- an entire mountain crushed, sold and shipped to China.

Energy

Inexpensive power draws co-location company to Iceland (Nickbert)

The Icelandic site offers access to geothermal and hydroelectric energy, free cooling every day of the year, and multi-terabit-per-second connectivity to America and Europe. Verne Global, which plans to build efficient data centers throughout the world, is in the middle of construction in Iceland and will be able to serve customers by year-end."

The Peak Oil Crisis: Government in Transition (pinecarr)

All it takes is a snowstorm or two to remind us how dependent we have become on government at all levels.

Sitting at home waiting for the plows should remind the more perceptive among us that we are no longer in the 18th century where nearly every family, equipped with an ax and a rifle, could provide for its own food, safety, shelter, and general well-being without the need for outside help. Today, when the lights go out, we rely on government to rush us to shelter where we are kept warm, fed, and even entertained until the lights come on again.

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13 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
Re: Daily Digest - February 14

I wasn't planning on posting today, but just saw these at Bloomber's news site.

"Feb. 15 (Bloomberg) -- Goldman Sachs Group Inc. Chief Economist Jim O’Neill said China may be poised to let its currency strengthen as much as 5 percent to slow the world’s fastest growing major economy.

“I have a strong opinion that they’re close to moving the exchange rate,” O’Neill said in a telephone interview from London after China’s central bank told lenders on Feb. 12 to set aside larger reserves. “Something’s brewing. It could happen anytime.” "

"Feb. 15 (Bloomberg) -- Bank of Canada Governor Mark Carney said investors are beginning to warn governments that there are “limits to stimulus” and adding pressure that may force policy makers to keep budget deficits in check. "

"Dubai World, a state-owned holding company, may offer its creditors 60 cents on the dollar after seven years as part of a deal to restructure $22 billion of debt, Zawya Dow Jones reported today, citing unidentified people familiar with the plans. The deal may be guaranteed by the government and may not offer interest payments to creditors, Zawya Dow Jones reported.

The company didn’t present an offer at a meeting with lenders in December and declined to say when a deal may be struck. "

straight's picture
straight
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Posts: 103
This guy need a bloody good spanking!

http://www.dailymail.co.uk/news/article-1250872/Climategate-U-turn-Astonishment-scientist-centre-global-warming-email-row-admits-data-organised.html

 

"Climategate U-turn as scientist at centre of row admits: There has been no global warming since 1995

Data for vital ‘hockey stick graph’ has gone missing There has been no global warming since 1995 Warming periods have happened before - but NOT due to man-made changes

 

Professor Jones also conceded the possibility that the world was warmer in medieval times than now – suggesting global warming may not be a man-made phenomenon.

And he said that for the past 15 years there has been no ‘statistically significant’ warming.

The admissions will be seized on by sceptics as fresh evidence that there are serious flaws at the heart of the science of climate change and the orthodoxy that recent rises in temperature are largely man-made."

 

Bloody Idiots like this clown do us all a great disservice. It was always very risky putting so many environmental eggs in the one basket.  Now it will be that much harder to get action on this issue and any other issues where we need the science to be believed.  What a bloody mess assholes like this have made for all of us!

Stewart, Brisbane.

straight's picture
straight
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Posts: 103
Re: Daily Digest - February 14

This is my Fantasy: this climate clown need a public spanking... marched through the streets in full clown suit, big red nose, big long floppy boots, and a big red pokadot bow tie... if its raining he can use his clown car... then in the town square he needs to be turned around, have his pants pulled down around his ankles and be administered a bloody good spanking!!!!

 

idoctor's picture
idoctor
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Posts: 1731
Re: Daily Digest - February 14

I dunno...LOL

Johnny Oxygen's picture
Johnny Oxygen
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Posts: 1443
Re: Daily Digest - February 14

Thanks idoctor.

Don't ya just want to slap the anchors in the Joseph Salluzi interview? Are they shills or just stupid?

nickbert's picture
nickbert
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Posts: 1208
Re: Daily Digest - February 14

straight,

Jeez. So what the heck did this guy do to you?

I fail to see what this guy did so wrong.  As a scientist it's his duty to make sure his data is not in error and can be verified, and when it turned out he had trouble with some of the data used in his research (whether it's from receiving better data, bad record-keeping, or whatever) he did the right thing and called that data into question.  Science is about seeing the world as it is, not how we want it to be.  And what exactly does this professor have to gain by calling into question some of his own data?  Did Exxon just deposit a million pounds into his bank account or something?  From what I understand he has a lot vested in proving anthropogenic climate change is currently a reality, and the fact he was willing to admit he found some of his data potentially questionable and needed a closer look shows he is not letting his own self-interest get in the way of doing his job properly.  That's something sorely needed on BOTH sides of the debate.  What skeptics of climate change do with this is not supposed to be his concern.

Considering the aggressive reaction to this article, I'd dare say you're upset mostly because this article was challenging one of your beliefs, not because the article is fundamentally flawed.  You're attacking the messenger which makes no sense.

- Nickbert

idoctor's picture
idoctor
Status: Diamond Member (Offline)
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Posts: 1731
Re: Daily Digest - February 14

LOL Johnny O........ shills.....I dunno....maybe you & I are just missing out on the herds Prozac laced Koolaid party. It's tough & lonely sometimes living in the real world....but I like it. To answer your question I think both.

Sam's picture
Sam
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Posts: 51
Re: Daily Digest - February 14

The story from the Post Carbon Institure would be funny if it werent so frightning. This gentleman believes that he cannot survive without the government, and believes that the solution is more government. He doesnt need his road plowed, he needs a parent to make sure he doesn't harm himself. The society that exists in the U.S. (and I assume other places) is going to get people hurt, and maybe worse.

joemanc's picture
joemanc
Status: Martenson Brigade Member (Offline)
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Posts: 834
Yuan appreciation. Why?
saxplayer00o1 wrote:

"Feb. 15 (Bloomberg) -- Goldman Sachs Group Inc. Chief Economist Jim O’Neill said China may be poised to let its currency strengthen as much as 5 percent to slow the world’s fastest growing major economy.

“I have a strong opinion that they’re close to moving the exchange rate,” O’Neill said in a telephone interview from London after China’s central bank told lenders on Feb. 12 to set aside larger reserves. “Something’s brewing. It could happen anytime.” "

Correct me if I'm wrong, but the Yuan is linked to the dollar. The US dollar index has gone up around 8% in the past 3 months. Doesn't that mean the Yuan has already appreciated 8%? So why does China need to raise the Yuan another 5%? What does Goldman know???

idoctor's picture
idoctor
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Posts: 1731
Re: Daily Digest - February 14

Damnthematrix's picture
Damnthematrix
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Posts: 3998
Re: Daily Digest - February 14

Sam,

I've re-read Richard Heinberg's piece, and nowhere can I find statements saying we cannot survive without governments....

Heinberg is a TT enthusiast, and I can tell you that as someone who started a TT personally, nobody in the movement believes in governance any bigger than very local, especially post Peak Oil.

Mike

Matt Holbert's picture
Matt Holbert
Status: Silver Member (Offline)
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Posts: 119
Re: Daily Digest - February 14

Mike-

Sam was referring to the piece at Post Carbon Institute labeled The Peak Oil Crisis....  The piece was written by a Tom Whipple whose bio states that he is a retired 30-year CIA analyst.

Matt

Sam's picture
Sam
Status: Bronze Member (Offline)
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Posts: 51
Re: Daily Digest - February 14

Sorry Mike if I was unclear.

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