Daily Digest

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Daily Digest 1/10 - Suds For Drugs, Global Risks In 2013

Thursday, January 10, 2013, 12:36 PM

Economy

Suds for Drugs (Suzie G.)

As the cases piled up after his team’s first Tide-theft bust, Thompson sought an answer to the riddle at the center of the crimes: What did thieves want with so much laundry soap? To find out, he and his unit pored over security recordings to identify prolific perpetrators, whom officers then tracked down and detained for questioning. “We never promised to go easy on them, but they were willing to talk about it,” Thompson says. “I guess they were bragging.” It turned out the detergent wasn’t ­being used as an ingredient in some new recipe for getting high, but instead to buy drugs themselves. Tide bottles have become ad hoc street currency, with a 150-ounce bottle going for either $5 cash or $10 worth of weed or crack cocaine. On certain corners, the detergent has earned a new nickname: “Liquid gold.” The Tide people would never sanction that tag line, of course. But this unlikely black market would not have formed if they weren’t so good at pushing their product.

Exclusive: Bank of America to sell service rights on $100 billion of mortgages (westcoastjan)

These sales are an opportunity for smaller companies like Nationstar Mortgage Holdings and Walter Investment Management that specialize in managing these collection rights, known as mortgage servicing rights, and do not have to follow bank capital rules.

Bank of America said on Monday that Nationstar was buying servicing rights on $215 billion of mortgages for $1.3 billion, and Walter Investment was buying servicing rights on $93 billion of mortgages for $519 million.

Secret Goldman Sachs Unit Defied CEO's Claims About Proprietary Trading: Report (westcoastjan)

The group's existence appears to skirt the edges of the Dodd-Frank law by focusing only on longer-term investments. Rules proposed in 2011 to implement the so-called “Volcker rule” portion of Dodd-Frank that bars trading by the banks on their own behalf make an exception for cases where investments have a maturity higher than 60 days.

Governments urged to prepare for the worst (westcoastjan)

Companies have long had their own "finance ministers", though they call them chief financial officers, and in recent years it has become common to also have risk management functions in companies, according to Axel Lehmann, himself a chief risk officer at Zurich Insurance and a co-author of the report.

Global Risks 2013 (guardia, westcoastjan)

This year’s Special Report examines the difficult issue of how a country should prepare for a global risk that is seemingly beyond its control or influence. One possible approach rests with “systems thinking” and applying the concept of resilience to countries. The report introduces five components of resilience – robustness, redundancy, resourcefulness, response and recovery – that can be applied to five country subsystems: the economic, environmental, governance, infrastructure and social. The result is a diagnostic tool for decision-makers to assess and monitor national resilience to global risks.

Growth Forecast Errors and Fiscal Multipliers (guardia)

This paper investigates the relation between growth forecast errors and planned fiscal consolidation during the crisis. We find that, in advanced economies, stronger planned fiscal consolidation has been associated with lower growth than expected, with the relation being particularly strong, both statistically and economically, early in the crisis. A natural interpretation is that fiscal multipliers were substantially higher than implicitly assumed by forecasters. The weaker relation in more recent years may reflect in part learning by forecasters and in part smaller multipliers than in the early years of the crisis.

Which prediction will most likely come true? (Arthur Robey)

Look around the infographic and you get into some predictions that seem a little more far-fetched. Will artificial intelligence beings be granted corporation status before 2112 rolls around? I suppose it could happen, but I would hope we've all learned something from our unfortunate Hal 9000 experience.

They Are Getting Ready: “No Obvious Reason” For Why China Is Massively Boosting Stockpiles of Rice, Iron Ore, Precious Metals, Dry Milk (Thomas C.)

In addition to the apparent build-up in food stocks, the Chinese are further diversifying their cash assets (denominated in US Dollars) into physical goods. In fact, in just a single month in 2012, the Chinese imported and stockpiled more gold than the entirety of the gold stored in the vaults of the European Central Bank (and did we mention they did this in one month?).

Paul Brodsky: The Real Idea Behind The Trillion Dollar Coin (Taki T.)

We suspect the Japanese Ministry of Finance would soon mint a ¥100 trillion pair of chopsticks and put them on deposit with the BoJ. They could then purchase most if not all of the oil on the market today for future consumption! We are confident oil exporters would not raise their prices because they would have the magic chopsticks as collateral. And why wouldn’t all the world’s treasury ministries simply create priceless flux capacitors and use them to create all the taxes needed to self-fund their governments? (To do so Ben Bernanke would have to hand over its proprietary technology – the Fed “has a technology called a printing press…”)

Energy

Turkey Beating Norway as Biggest Regional Oil Driller (westcoastjan)

“If there’s one country that needs energy, it’s Turkey,” said Darren Engels, an analyst at FirstEnergy Capital in Calgary. “Their domestic business doesn’t scratch the surface.”

Turkish Petroleum, which is known as TPAO and has operations in Libya, Iraq, Azerbaijan, Colombia and Kazakhstan, needs to boost domestic output as it pursues a target of supplying all of Turkey’s energy needs by 2023.

Energy Industry Letter Suggested Environmental Law Changes (westcoastjan)

The letter, dated Dec. 12, 2011, was addressed to Environment Minister Peter Kent and Natural Resources Minister Joe Oliver. It came from a group called the Energy Framework Initiative (EFI), which is made up of the Canadian Association of Petroleum Producers, the Canadian Energy Pipeline Association, the Canadian Petroleum Products Institute (now the Canadian Fuels Association) and the Canadian Gas Association.

"The purpose of our letter is to express our shared views on the near-term opportunities before the government to address regulatory reform for major energy industries in Canada," wrote the EFI.

Barrick Gold ends Africa mine sale plan to Chinese firm (westcoastjan)

"Over the last 12 months there has consistently been a decline in gold production at their mines, and they've had to do extra work to seek out higher quality ore, which costs money," David Lennox, resource analyst for Fat Prophets, told the BBC.

Mr Lennox added that the collapse of the deal may show that Chinese firms are becoming less keen on investing in Africa.

Will Shell have their Arctic Exploration License Revoked? (

Shell (NYSE: RDS-A) has spent around $4.5 billion over the past seven years trying to prepare for its oil exploration campaign into Alaskan waters, and the ride has not been a smooth one. Aside from the latest fiasco with the Kulluk drill rig running aground, last year Shell’s oil spill containment dome struggled to receive US approval after being damaged during the initial tests; also their drill ship, the Noble Discoverer, slipped its anchor and dragged towards shore in July.

Environment

Half of all food 'wasted' report claims (westcoastjan)

"The reasons for this situation range from poor engineering and agricultural practices, inadequate transport and storage infrastructure through to supermarkets demanding cosmetically perfect foodstuffs and encouraging consumers to overbuy through buy-one-get-one-free offers."

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."

6 Comments

saxplayer00o1's picture
saxplayer00o1
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chm's picture
chm
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Arthur Robey's picture
Arthur Robey
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Where's Wallie?

You can dump the entire contents of your brain into the computer. So that is where it went. 

This comment is what I wanted to bring to our attention. It is long. Sorry.

 

Hello all

In Reply to mongander's post:
I could literally fill this post with links, it is well known in the Oil industry that the major players are on a divestment and diversification strategy. Many are giving various excuses, but when you check them they do not pan out. We are shifting to US based fields is a common one, but when you look they have bought options to consider buying or leases rather than the asset. 

That is key no buying only renting. You rent assets when the asset value is about to take a hit.

Shell has been on a massive divestment strategy on its oil field assets, from Africa to the Far East for the last 12 months, or since Rossi did his first demonstration this time last year. 
http://www.hydrocarbons-technology.com/news/newsshell-divests-stake-nige...

Other Fossil Fuel companies on a divestment strategy are BP who are selling their stakes in fields in the North Sea, Russia, the Arctic and the Gulf to name but a few and not even batting an eyelid about being refused license to buy future assets in the Gulf.
http://www.bbc.co.uk/news/business-20527045

http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7081129

http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7080956

http://indrus.in/articles/2012/11/29/rosneft_and_bp_to_develop_new_arcti...

Connoco
http://www.nasdaq.com/article/conocophillips-to-sell-5-bln-stake-off-kaz...

Exxon 
http://www.foxnews.com/world/2012/11/09/iraqi-official-says-exxon-mobil-...

http://www.newsystocks.com/News/4108444/Weak-Demand-Outlook-Forces-Exxon...

http://www.reuters.com/article/2012/11/07/us-iraq-exxon-idUSBRE8A60Y4201...

Even the pipeline parts and refinery companies are joining the rush to divest the fossil fuel business. 
http://dcnonl.com/nw/32627/cb

http://online.wsj.com/article/SB1000142412788732383040457814561197940908...

Do a Google search for any oil company and the phrase "Oil field" and the words divest or sell.

http://www.digitaljournal.com/pr/536428

Some are trying to cover their strategy and the risk by divesting half of the asset others are just cashing in their chips.

http://in.reuters.com/article/2010/03/25/us-conoco-lukoil-idINTRE62N43M20100325 

This year has been an Oil Field Night of the Long Knives as all the major players have been dumping these soon to be seriously downgraded assets.

The price per barrel dropped 20+ dollars since May.

I expect the real drop to be when the 60 day and 30 Day options on the price per barrel get shorted when the Rossi announcement is about to be made. I expect the price per barrel will drop below 70. Then it will resurge as people realise LENR will not happen overnight. Then Oil and other fossil fuels will go into a long decline with investors on a business decline strategy making money out of the asset stripping and running the oil fields into the ground. Natural Gas will be the longest lived of the Fossil Fuel assets. 

Coal might die out out in as little a year and a half as converting coal power plants to use Rossi's Hot Cat or other LENR tech will be very easy. Oil will be next. Converting all power plants could take a 5 to 7 years but the fact that President Obama changed the Law to allow Combined Heat and Power means that many plants will end up being scrapped before they can convert, as faster cheaper more nimble competitors will create power plants on customers door steps, that provide power at a tenth but theoretically at up to one thousandth of the cost. 

Buckle in people it is about to get real bumpy!

Posted by walkerig1 (4 comments )
Anyone up for some research?
 
AKGrannyWGrit's picture
AKGrannyWGrit
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Divestment & Diversification

Arthur et al., diversification into what?

AK Granny

Arthur Robey's picture
Arthur Robey
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AK Granny.

Arthur et al., diversification into what?

Cold Fusion Granny. The author of the piece is trying to join the dots between the dropping of all energy interests and various Cold Fusion claims. eg. Siemens dropping nuclear plants and their Sarhara Solar project to supply Europe with energy. Why would they drop both unless there was something better in the offing?

But let us not fixate on Siemens. The author points to strange behaviour by all the energy majors. They are easing away from the font of their wealth.

If you had something to sell, would you trumpet that it was obsolete? Worth a lot less than the customer thinks?

AKGrannyWGrit's picture
AKGrannyWGrit
Status: Gold Member (Offline)
Joined: Feb 6 2011
Posts: 474
Thanks Arthur

I don't know anything about cold fusion so I'll have to research.  Am sure that whatever the next energy source is the companies that control it will make a lot of profit and they will be our marionette masters.  I keep wishing that a real life person will appear like Keane Reeves in Chain Reaction and provide a miracle energy source for free to the whole world.  Ah well only in the movies I guess.

AK Granny

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