Daily Digest

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Daily Digest 5/31 - Paper Money Unfit For A High-Crime World, Float Away On A Startup Nation

Saturday, May 31, 2014, 9:46 AM

Economy

Paper money is unfit for a world of high crime and low inflation (james_knight_chaucer)

The idea of finding creative ways to get around the zero bound on interest rates has been championed for more than a decade by Willem Buiter, a former UK Monetary Policy Committee member. Phasing out paper currency is by far the simplest. With electronic payments mechanisms becoming increasingly prevalent even in small transactions, and with the supply of paper currency overwhelmingly top-heavy with large-denomination notes, the case for keeping the currency status quo has weakened.

For Libertarian Utopia, Float Away on ‘Startup’ Nation (jdargis)

The five-year-old organization is pursuing an ambitious aquatic mission: to develop floating microcountries that will dwell in international waters with the same sovereign status enjoyed by cruise ships. Think secessionist, do-it-yourself nation building meets the 1995 post-apocalyptic science-fiction stinker ‘Waterworld.’

New Jersey Reaches Deal on Hurricane Sandy Aid (jdargis)

In the settlement, the state agreed to spend an additional $215 million to provide replacement housing, on top of the $379 million it had already allocated for that purpose. Critics of the state’s handling of the federal aid, including the groups that filed the complaint, questioned why so much money was going to inland counties when so many people remained displaced in the counties along the Jersey Shore that suffered the brunt of the damage.

U.S. Gasoline Consumption Plummets By Nearly 75% (June C.)

Before getting into an analysis of the repercussions of this data, however, it’s necessary to properly qualify the data. Obviously, even in the most-nightmarish economic Armageddon, a (relatively short-term) 75% collapse in gasoline consumption is simply not possible. Unless we were dealing with a nation whose economy had been suddenly ripped apart by civil war, or some small nation devastated by a massive earthquake or tsunami; it’s simply not possible for any economy to just disintegrate that rapidly, without there being some ultra-powerful exogenous force also at work.

So how can this raw data, produced by the government itself, be explained? To begin with; the government chooses to measure U.S. gasoline consumption in a very odd manner: by measuring the amount of gasoline entering the domestic supply-chain rather than by measuring actual consumption at the other end of the supply-chain – i.e. “at the pump”.

V.A. Chief Resigns in Face of Furor on Delayed Care (jdargis)

Fixing the problem at the department now becomes an urgent political matter for the president, once again raising questions about whether the candidate who pledged in 2008 and 2012 to make government work efficiently has lost grasp of the government he now leads.

The department’s troubles, however, remain a far more serious concern for the millions of veterans whose access to timely health care has been steadily eroding as waves of wounded soldiers from Iraq and Afghanistan have converged with those who returned from earlier wars.

Caracas Goes Thirsty as Taps Run Dry and Bottles Vanish (jdargis)

“I haven’t been able to find 5-liter bottles of water in the supermarket for the past two weeks, and there haven’t been half-liter bottles this week,” Maria Hernandez, a 36-year-old secretary, said in an interview in Caracas today. “I have four at home, but I’m afraid that they’ll run out and that I won’t be able to find more. They ration water at my house on Wednesdays.”

Why Is Puerto Rico Burning Oil to Generate Electricity? (jdargis)

Among these many options, none possesses the lethal combination of high costs and deleterious environmental impact that torching petroleum does. According to the Environmental Protection Agency, burning oil to create electricity emits about 50 percent more carbon dioxide per megawatt-hour than natural gas and only about 25 percent less than coal, while producing nearly as much sulfur dioxide and nitrogen.

New York City Trying to Help Households Turn Waste Into Compost (jdargis)

So began the latest phase of a plan to convert the people of New York City into composters, collecting food scraps like vegetable peels, chicken bones and even greasy pizza boxes and saving the pungent blend for days at a time to be someday converted into renewable energy. A voluntary city pilot program has already taken root in neighborhoods like Windsor Terrace, Brooklyn, which has eagerly embraced it, and Westerleigh, Staten Island, which was not quite as enthusiastic.

Gold & Silver

Click to read the PM Daily Market Commentary: 5/30/14

Provided daily by the Peak Prosperity Gold & Silver Group

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."

7 Comments

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
57 Years of Procrastination.

One final thought I should like to leave with you. High-energy consumption has always been a prerequisite of political power. The tendency is for political power to be concentrated in an ever-smaller number of countries. Ultimately, the nation which control - the largest energy resources will become dominant. If we give thought to the problem of energy resources, if we act wisely and in time to conserve what we have and prepare well for necessary future changes, we shall insure this dominant position for our own country.

Rear Admiral Hyman G. Rickover, USN

57 years!

Read it and weep.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
The US plays it's Ace.

If this video is not pure propaganda then Dr Paul Craig Roberts is right. We are being led by the least amongst us.

And then we can discard any thought of Cold Fusion. It will be Hot Fission-and then fusion. Note the dependency on knocking out all Russian delivery systems. They might be too late-the weapons may already have been delivered. Not as a deterrent but for Revenge.

It looks as though the US has decided to play its last card.

I am disappointed.

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1148
Michael Pollan

wrote a forward that deserves a read, actually the whole book will receive a read by...robie,husband,father,farmer

 

http://www.amazon.com/Grass-Soil-Hope-Journey-Through/dp/1603585451/ref=...

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1428
Re: U.S. Gasoline Consumption Plummets By Nearly 75%

See http://www.advisorperspectives.com/dshort/updates/DOT-Miles-Driven.php for graphs and better analysis.  No adjustment is made for more efficient cars.  I don't see nearly as many big SUVs on the road versus early 2000's.  The car I am driving now is 50% more efficient on mpg basis than my early 2000 car (through whole year of winter and summer gas I averaged 30 mpg in a 2013 Accord Sport 6MT, amazing considering this is a full size car that can go 0-60 in 6.8 sec).

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5570
Re: US gasoline consumption drops 75%
KugsCheese wrote:

See http://www.advisorperspectives.com/dshort/updates/DOT-Miles-Driven.php for graphs and better analysis.  No adjustment is made for more efficient cars.  I don't see nearly as many big SUVs on the road versus early 2000's.  The car I am driving now is 50% more efficient on mpg basis than my early 2000 car (through whole year of winter and summer gas I averaged 30 mpg in a 2013 Accord Sport 6MT, amazing considering this is a full size car that can go 0-60 in 6.8 sec).

The report of a 75% decline in US gasoline consumption is in serious error...there has not been a 75% drop in gasoline consumption.  

The author is unfamiliar with the (very slight) intricacies of EIA reporting and has mistaken 'US total gasoline retail sales by refiners' to be the same thing as  'US total gasoline retail sales.'

They are not.

The US imports a lot of gasoline and exports a lot of diesel.  

Once you factor those back in we see that gasoline consumption has been pretty flat of late, and is down nowhere near 75% from its all-time highs in 2007.

In March 2007 the US consumed 9.18 million barrel per day.   In March 2014 that number was 8.68.  That's a decline of just 5.4%.

jennifersam07's picture
jennifersam07
Status: Silver Member (Offline)
Joined: Oct 14 2012
Posts: 112
Has to be pure propoganda

Right? Is there someone with knowledge of weapons systems and access to insider information about defense activities on this site? Could they comment on what's changed in this 'first strike' capability that would prompt this type of hysterical rant from Russia? Seems more provocative than anything else. From what I know as a consultant in the electronics industry, defense manufacturing is winding down. 

josiahplacide's picture
josiahplacide
Status: Member (Offline)
Joined: Nov 4 2014
Posts: 1
New Jersey Reaches Deal on Hurricane Sandy Aid

I've seen the devastation that Sandy made in New Jersey, and I didn't believed that places like that exist. I even can't believe that New York kneeled down before a Cat 3 Hurricane. 
But then a miracle happened, namely most of the wealthy people, or people with opportunities have shown their humanitarian side and tried to help others. (You can read more about this on this article) I believe that when humans are faced with a crisis that they cannot control, they will unite in order to overcome it...

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