Daily Digest

Image by Alex Barth, Flickr Creative Commons

Daily Digest 7/13 - Policy Extremes Maintain Illusion of Stability, What To Know About Puerto Rico's Debt Crisis

Monday, July 13, 2015, 9:47 AM

Economy

Greek crisis: surrender fiscal sovereignty in return for bailout, Merkel tells Tsipras (jdargis)

Two days of high-stakes negotiations between the finance ministers of the currency bloc resulted in a four-page document that included controversial German elements leaked on Saturday. Those measures included Greece leaving the euro temporarily by taking a “time-out” from the currency bloc if it refuses terms for talks on the new bailout or, in the event of agreement, that Greece sets aside €50bn worth of assets as collateral for new loans and for eventual privatisation. Both passages, however, did not enjoy a consensus among eurozone leaders.

America, We Have A Problem (pinecarr)

If "everything is awesome'... and 70% of the US economy is personal consumption... and Q1 weakness was all weather and port related? Then why are these charts doing this...

Policy Extremes Maintain Illusion of Stability: Charles Hugh Smith (pinecarr)

What is not an illusion is the extreme trouble many EU countries are in. Besides Greece, Spain and Italy are deep in debt. Smith contends, “Spain’s debt is a trillion euros. Italy is over a trillion euros in debt. We are talking fairly serious money here.”

Everything you should know about Puerto Rico’s debt crisis (jdargis)

The political economy has been skewed for years by U.S. taxpayers essentially. In many ways, early on decades ago, that led to a kind of a development of the island as kind of this manufacturing hub, which is a very generous tax break.

The first ones to clothing and shoe manufactures. Then in 1970s, it kind of shifted to more capital-intensive businesses like pharmaceutical manufacturing. And that made Puerto Rico into one of the top prescription drug manufacturers in the world. At one point, something like 13 of the top 20 prescription drugs are actually made in Puerto Rico.

China’s Incendiary Market Is Fanned by Borrowers and Manipulation (jdargis)

China’s market is also shaped by the heavy hand of the government, which makes decisions about what companies can list shares, when to promote stock rallies and, now, how to intervene when prices plummet. The government, in other words, views the market as a policy instrument, a mechanism to fulfill its political and economic goals. The result can be a volatile market that swings from boom to bust.

EIA Confirms: Oil Production Peaked (Tom K.)

Nevertheless, as the EIA affirms peak production in the second quarter of 2015, the fall in output over the next few quarters should bring supply and demand back into balance, or at least close to it. Supply exceeded demand by more than 2.5 mb/d in the second quarter of this year, but that gap will narrow to 1.6 mb/d in the third quarter and just 500,000 barrels per day in 2016.

Water is a precious commodity, but B.C. is just giving it away (westcoastjan)

One doesn’t have to stare too long at this picture to conclude there is something dreadfully wrong. Tens of thousands have come to the same conclusion, signing an online petition that has now reached 160,000. Campaign director Liz McDowell says she will present it to Environment Minister Mary Polak once it has reached 200,000 – which, given the growing public anger over this matter, shouldn’t be much longer.

Alaska Starts Cleaning Up Debris From Japan Spread by 2011 Tsunami (jdargis)

Alaska has more coastline than any other state. And its cleanup operations often are expensive and dangerous, said Nikolai Maximenko, a senior researcher at the Hawaii-based International Pacific Research Center.

“Even without the tsunami, Alaska is well known for being polluted with all these buoys and other stuff from fisheries activity and from other human activities,” he said.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/9/15

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."

14 Comments

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
Fossil fuel industry must 'implode' to avoid climate disaster

An “induced implosion” of the fossil fuel industry must take place for there to be any chance of avoiding dangerous global warming, according to one of the world’s most influential climate scientists.

Professor Hans Joachim Schellnhuber, an adviser to the German government and Pope Francis, said on Friday: “In the end it is a moral decision. Do you want to be part of the generation that screwed up the planet for the next 1,000 years? I don’t think we should make that decision.”

http://www.theguardian.com/environment/2015/jul/10/fossil-fuel-industry-must-implode-to-avoid-climate-disaster-says-top-scientist

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4163
cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5752
Ahem...
Tall wrote:

An “induced implosion” of the fossil fuel industry must take place for there to be any chance of avoiding dangerous global warming, according to one of the world’s most influential climate scientists.

Professor Hans Joachim Schellnhuber, an adviser to the German government and Pope Francis, said on Friday: “In the end it is a moral decision. Do you want to be part of the generation that screwed up the planet for the next 1,000 years? I don’t think we should make that decision.”

http://www.theguardian.com/environment/2015/jul/10/fossil-fuel-industry-must-implode-to-avoid-climate-disaster-says-top-scientist

*cough*population*cough*cough*

It's horribly incomplete to make a statement that the "fossil fuel industry must implode" without also noting that the economy and population levels must also beat a hasty retreat.

I run into people all the time who agree with the "implode the fossil fuel industry" meme without having the slightest clue what they are really asking for...

DennisC's picture
DennisC
Status: Gold Member (Offline)
Joined: Mar 19 2011
Posts: 320
Puerto Rico Bonds

I remembered watching an intereview with Kyle Bass on this topic almost two years ago.  I decided to look it up and found this short clip (~1.5 min.), video towards the bottom of page, where he quickly discussed many of the things wrong with P.R.  The longer version is probably out there somewhere.

http://www.cnbc.com/2013/10/09/nothing-to-do-but-duck-and-cover-if-us-de...

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
What is the alternative?
cmartenson wrote:

//

I run into people all the time who agree with the "implode the fossil fuel industry" meme without having the slightest clue what they are really asking for...

Given our current understanding of 'normal', I do not think any of us in developed countries can envision what a change this will truly be.  It is one thing to live 'off the grid' voluntarily, but that lifestyle does not mimic the reality of living in a severely hydrocarbon restricted world. For example, we will not have easy access to everyday foods, medications and products that we take for granted now.

Consider the scenarios envisioned if we do nothing about our carbon emissions and continue with BAU.... what is our alternative?

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Carbon use

 

The coming Maunder Minimum will give people an excuse to delay the inevitable, making it worse. Like putting off going to the dentist.

Medical industry doctors will have to tell the truth. Get off the couch, eat real food (if you can find it) and no, you are not going to live forever.

It's all in the accursed curves.

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
re: EIA Confirms: Oil Production Peaked

EIA Confirms: Oil Production Peaked says  "In its Short-Term Energy Outlook released on July 7, the EIA acknowledged that U.S. oil production peaked in April, hitting 9.7 million barrels per day (mb/d), the highest level since 1971."

that doesnt jive with their weekly reports, which show a 32 year high in output at 9,610,000 barrels per day during the first week of June, which we virtually matched this past week with output of 9,604,000 barrels per day

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRFPUS2&f=W

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3176
implosions all over the place
Quote:

It's horribly incomplete to make a statement that the "fossil fuel industry must implode" without also noting that the economy and population levels must also beat a hasty retreat.

In the kind of time scale we are looking at (a century or so), and given the increasing volatility, I think it is likely that economies or the global economy will crash and rebound a few times, with lower highs and lows each time.  However, fossil fuel descent, climate change and population have much more inexorable looks.  We are dealing with definite limits in each category.

You'll notice that the Age of Limits chart doesn't have a curve for "economy," although it has categories that obvously affect economy.

ltg_yah.jpg

The obvious imperatives suggested by this chart are to adapt to declining fossil fuel while at the same time reducing ghgs.  Both must be done on a crash basis no matter what the economic picture.  But, it is equally clear that the long term economy will benefit from both.

Population, it seems to me, will go its merry way because of the cultural and educational belief systems that must be overcome.  It would help if, as part of his encyclical, the Pope would address population.  But, opposition to birth control and abortion are so deeply entrenched in the faith that it is unlikely he will say anything about it, although both articles of faith are regularly ignored by many of the so-called faithful.

And, of course, many other faiths and cultures still value high birth rates.  The Mormons are a prime example despite living in the US where there is an understanding of what population growth means for everyone's future.  This is one of those examples that 100 years from now people will look back and ask what the hell were they thinking?  But, such are the vagaries of religious belief.

Our course is clear.  Reduce fossil fuel dependence and greenhouse gas emissions (and obtw start controlling our numerous other environmental insults) regardless of their interplay with population and economy or we face a catastrophic future within a century.

 

 

concad's picture
concad
Status: Member (Offline)
Joined: Jul 8 2009
Posts: 4
Fossil fuel and population implosion

The predicament we are in with BAU will not allow an either population implosion or a fossil fuel implosion situation. It will be an implosion of both fossil fuel use and population numbers. The pity of it is that those we elect, who might make decisions that mitigate the some of it, do not get it.

Michael_Rudmin's picture
Michael_Rudmin
Status: Platinum Member (Offline)
Joined: Jun 25 2014
Posts: 848
Age of Limits: what I notice

What I notice -- though the chart is *VERY* good for when it was written -- is that when I compare what I know of recent history (the Arab spring and Egyptian starvation, ISIS, various genocides, various wars) to this chart, I get an idea that on this chart we are between 2020 and 2025 for most things, maybe between 2010 and 2015 for "resources". 

That's all qualitative, I know.  But I think we are a bit farther along the curve than was otherwise forecast. 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Is this Significant?

And if so what does it mean?

Metalheads maybe? 

Nah! Probably just playing to the crowd. Give the man a break.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2839
Metalheads

You have got to be f***ing kidding me.

Arthur Robey wrote:

And if so what does it mean? Metalheads maybe? 

Nah! Probably just playing to the crowd. Give the man a break.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2839
To the moon, Alice!

We went to the moon, right?  The Apollo missions, the live broadcasts, Cronkite?

I need you guys to tell me we went to the moon.

I would like to believe that we went to the moon.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
A New System of Values.
A homeless man plays the piano.
A good metaphor for our civilization's inverted reward structure.
 
Maybe, just maybe this is the start of a new, non materialistic value system.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments