Daily Digest

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Daily Digest 3/26 - Japan Goes "Full Krugman," What Killed the Middle Class?

Saturday, March 26, 2016, 10:52 AM

Economy

Japan Goes Full Krugman: Plans Un-Depositable, Non-Cash "Gift-Certificate" Money Drop To Young People (PBD)

Since Ben Bernanke reminded the world of the existence of government printing-presses, echoed Milton Friedman's "helicopter drop" solution to fighting deflation, and decried Japan for not being as insane as it could be... it has only been a matter of time before some global central bank decided that the dropping of cash onto the populace was the key to economic recovery. Having blown their wad on QQE (and been left with a quintuple-dip recession) and unleashed NIRP, it appears Japan has reached that limit.

What Killed the Middle Class? (Mark C.)

This raises an obvious question: what killed the middle class? While many commentators try to identify one killer cause (for example, the U.S. going off the gold standard in 1971), the die-off of the middle class is more akin to the die-off in honey bees, which is the result of the interaction of multiple causes (factors that increase the toxic load dumped on bees and other pollinators by modern agriculture).

Even with a budget, Moody's sees little hope for Pa.'s finances (thc0655)

The New York ratings agency picked apart the 2016 budget, saying it increases spending without approving the governor's proposed taxes to work toward fiscal balance. Moody's also criticized the budget's reliance on nearly $1 billion in one-time funds and said it does not include adequate pension contributions and "casts no light on the government's ability to reach compromise on its long-term fiscal challenges."

Behind U.S. GDP Data Is Reason for Recession Worry: Weak Profits (jdargis)

Behravesh also pointed out that the decline was heavily concentrated in the petroleum and coal industries, where profits plummeted by more 75 percent in 2015 as energy prices collapsed. That makes it less worrying from the point of view of the overall economy.

Fiscal And Monetary Madness (GE Christenson)

Does anyone expect the debt will be repaid, reduced, or even stabilized? I think it is clear that the debt will be rolled over and increased until it must be inflated away or defaulted. This is political and central bank supported monetary madness. Exponential increases inevitably end badly.

These Aboriginal Groups Are Trying to Halt a Natural Gas Boom in Australia's Northern Territory (Merle2)

American Energy Partners (AEP), the company established by US fracking pioneer Aubrey McClendon — who died two weeks ago — has sealed four deals that cover a total area of 55 million acres of oil and gas properties. Texas-based private equity firm Energy & Minerals Group, meanwhile, has snapped up an 18 percent stake in a venture with Australian company Pangaea Resources.

While production is still at an exploratory stage, prospecting is causing concerns among the four main Aboriginal communities in the Gulf of Carpentaria region.

San Francisco, ‘the Silicon Valley of Recycling’ (jdargis)

Many are part of a growing movement sometimes called Zero Waste or the Circular Economy. It entails trying to eliminate tough-to-recycle items like flimsy plastic bags and also pioneering new ways to recycle or compost everything else. Often, cities around the world have led the way, including Portland, Ore.; Seattle; and Milan, as well as the Basque region in Spain. That has given rise to a trash tourism circuit.

Carbon Farming: Hope for a Hot Planet (jdargis)

Another way carbon farming pays off, at least abroad: carbon-credit markets. For the past five years, Australia’s agricultural sector has benefited from a nationally mandated cap-and-trade program that lets farmers who adopt carbon-sequestration practices sell carbon credits to heavily polluting corporations in need of offsetting carbon footprints. And two years ago, the World Bank established a fund to buy carbon credits from Kenyan farmers as a means to incentivize climate- friendly practices in a part of the world known for its slash-and-burn approach to the land.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/25/16

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."

15 Comments

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
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Posts: 1192
READ the Carbon Farming art.

please. esp. those stuck on the "all ruminant husbandry is bad" meme.

saxplayer00o1's picture
saxplayer00o1
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Posts: 4167
AP and Bloomberg on helicopter money

'Helicopter money' could spur economy

Tribune-Review - ‎12 hours ago‎
FRANKFURT, Germany — Helicopters dropping money in the streets: it's a vivid metaphor for a drastic form of central bank stimulus gaining attention as a possible way to help the global economy out of its malaise. The idea of “helicopter money” is ...
 

Raining money to spur the economy? Not as crazy as it sounds

Jackson Hole News&Guide - ‎9 hours ago‎
European Central Bank head Mario Draghi was asked this month about the possibility of using “helicopter money” after the bank announced a further round of stimulus measures, including negative interest rates and more massive bond purchases aimed at ...

Billions from heaven? 'Helicopter money' option wins fans

San Antonio Express-News (subscription)-14 hours ago
The way to get the world out of its disinflationary rut could lie in them directly financing government stimulus — a strategy known as deploying “helicopter money” ...

Brazil Economic Woes Deepen Amid Political Crisis

Wall Street Journal-16 hours ago
Brazil's government debt tripled to around $1 trillion in the past nine years, ... Brazil's rising debt and slowing growth have prompted credit-ratings firms to cut ...

 

Tall's picture
Tall
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Posts: 564
All ruminant husbandry is not bad

It is just that there is too much of it.  Humans are not good at moderation. For example: fishing is not bad. Too much fishing is bad, etc.

Excessive ruminant stock density or inappropriate stock siting is associated with erosion, overgrazing, degradation of water quality and habitat destruction. 

http://www.onegreenplanet.org/animalsandnature/grazing-cattle-the-new-in...

Intensive ruminant production (dairy, feedlots) diverts agricultural land use away from growing human food to growing food for ruminants. This is an overall loss of agricultural efficiency. The profit associated with ruminant products encourages destruction of functioning ecosystems for monocrop ruminant feed production. 

http://worldinfo.org/2012/01/food-for-thought-soybean-endangers-brazil-a...

Due to our sheer numbers, something that has a valuable basic function and is useful to people gets exploited and becomes a major problem. If we ate ruminants or dairy products infrequently, there would be less of a problem. Our population is growing, and:

"Each American consumed an average of 7 pounds more red meat than in the 1950s, 46 pounds more poultry, and 4 pounds more fish and shellfish"

http://www.usda.gov/factbook/chapter2.pdf

Which begs the question - how can we incentivise moderate meat consumption and 'ecological' farming practices such as intensive / rotational grazing and polyculture.

How can farming carbon in soil return more money to a farmer than sale of his standing stock, animal feed crops or ruminant products?

 

Weogo's picture
Weogo
Status: Bronze Member (Offline)
Joined: Mar 6 2015
Posts: 47
ruminating about ruminants

Hi Tall, 

We must be on the same wavelength.

Please read my 'go vegan?' post here:

 http://www.peakprosperity.com/forum/definitive-global-climate-change-aka-global-warming-thread-general-discussion-and-questions/71?page=116#comment-193570

Thanks and good health,  Weogo

 

Yoxa's picture
Yoxa
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Posts: 297
A small beef
Quote:

All Ruminant Husbandry is Not Bad

To a literal mind your title says the opposite of what I think you intend.

Try "Not All Ruminant Husbandry is Bad".

(Bias alert) I come from a family of Hereford breeders so I'm very much in agreement with the points you make.

efarmer.ny's picture
efarmer.ny
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Posts: 63
Cultivating Climate Resilience On Your Farm

Since the comments are related to agriculture tonight, here's another one.

I listened to this podcast while closing up the garden and doing my barn chores tonight:

     New Times, New Tools: Cultivating Climate Resilience on Your Farm

     by Laura Lengnick, PhD, Author of "Resilient Agriculture"

It was interesting to hear the science of resilience being applied to agriculture. As you can imagine, the thinking is in line with what we read/hear here:

     As a manager, our assumptions have always been that systems are stable. As that changes we have to find more robust solutions. We have to move from:

  • national best-practices to local learn-as-you-go
  • imported to place-based resources
  • disposable to rethink-reuse-recycle
  • efficiency to redundancy
  • purely economic benefit to multiple benefits

People without the time to listen may benefit from scanning the paper she co-authored and on which the talk seems to have been based.

TechGuy's picture
TechGuy
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Posts: 428
Re: Carbon Farming

I am afraid that isn't going to work. Farming whether to raise livestock or crops is likeing to add carbon as it take fuel to crop crops, in the case of Cattle or other farm animals, that exhale CO2 and methane, as well as the grass does not sink very much carbon.

The only way to "carbon farm" would be to plant Trees and leave the land untouched for a very long period.

Of course planting trees does not need to occupy farm land. There is a lot of land used grass lands, and as the permafrost zone unfreeze, evergreen trees can be planted.

Of course humans could also work to put ot the Indonsian bog fires and well ans stop the destruction of forest land for acraculture.

 

 

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1192
thanks fellow PP'rs

for setting me straight. If I was a efficient typist,   and not a grazier who has studied carbon sequestration, I might find both ability and time to enter into the fray. Please study the science.

KennethPollinger's picture
KennethPollinger
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 654
Re: Aboriginal Groups above

And especially now that Obama has officially apologized for what the US of A did to Argentina way back in time, AND this post above, I want to HIGHLY recommend John Perkins outstanding and very revealing new book (Updates and Expanded), The NEW Confessions of an Economic Hit Man--a MUST read.  Fills in many specific details about how the Deep State manages to do it all.  Please!

cmartenson's picture
cmartenson
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Posts: 5754
On Carbon Farming
TechGuy wrote:

The only way to "carbon farm" would be to plant Trees and leave the land untouched for a very long period.

That's one way, but it's not correct to say it's the only way.

In our podcast with Paul and Elizabeth Kaiser of Singing Frogs farm they talked about the data of their farm and how they had managed to go from ~2% organic (carbon) content to 8% all while producing massive amounts of food from their land (especially in comparison to their farming neighbors).

It's worth a listen!

If everybody farmed the way they did, virtually all of the carbon released by industrial practices since the beginning of time could be absorbed.

And there are other ways too even beyond their methods and planting trees.  The point being we know plenty to be doing things very differently and we are learning more all the time.

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1192
A Lovely Easter reading

https://smallfarmersjournal.com/hermits-harbingers/

 
I know many Marvins
robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1192
Thanks Yoxa

it is a reslt of my "stream of consciousnness" typig

TechGuy's picture
TechGuy
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Posts: 428
"If everybody farmed the way

"If everybody farmed the way they did, virtually all of the carbon released by industrial practices since the beginning of time could be absorbed."

Sorry Chris, but I will have to disagree with that statement:

1. Topsoil is only a few inches deep. a mined coal seam can be several meters deep.

2. At best food crops grow to a couple of meters, where as trees can grow 10s of meters high providing more surface area to absorb carbon as well as storing much more carbon in the biomass of the trees. A single tree can weight hundreds of kilograms.

That said, The idea of enriching soil with carbon is a good idea,since carbon does retain water and nuetients better, but it does not provide a solution to carbon capture. This makes sense for better agraculture, but not as a solution to CO2 emissions. 

I am reasonable sure that the farm in the podcast used fossil power machinery, at best the carbon sinked in the soil "might" displace the carbon used farm equipment and the residence (ie heating, DHW, etc).

Bottom line, at some point Oil and natGas is going to get prohibitly expensive, and there is no way the global economy is going to survive. The focus should be about building lifeboats for individuals to become self-reliant enough to ride out the coming dark ages.

FWIW: A better solution to the CO2 issue would be to stop the destruction of forests (in south america), putting out the Bog fires in Indonesia (emitting about half of US CO2 missions and serving no purpose), Raise Interest rates to stop excessive expansion that is not necessary and is fueling increased CO2 emissions. Ideally picking the low hang fruit would be the best option. In my opinion CO2 emissions is larging a Political driven crisis, since nothing is done to really fix the problem. The direction is to tax carbon emissions so gov'ts have more power and control, and I doubt very many politicans have any real interest if fixing the problems.

 

 

 

cmartenson's picture
cmartenson
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Posts: 5754
TechGuy wrote: "If everybody
TechGuy wrote:

"If everybody farmed the way they did, virtually all of the carbon released by industrial practices since the beginning of time could be absorbed."

Sorry Chris, but I will have to disagree with that statement:

1. Topsoil is only a few inches deep. a mined coal seam can be several meters deep.

2. At best food crops grow to a couple of meters, where as trees can grow 10s of meters high providing more surface area to absorb carbon as well as storing much more carbon in the biomass of the trees. A single tree can weight hundreds of kilograms.

Let's do this with numbers...

1.  Coal is only found here and there, while soil is far more widespread.  It's a volume thing.  For example, here in NE there's virtually no coal, but a lot of square meters of soil capable surface area.  

2.  The top soil at Singing Frogs farm, as mentioned in the podcast and transcript, is 4 feet deep.

3.  It's not the carbon sequestered in the above ground mass that counts, but in the soil itself.  The carbon is found below ground.

Here's some math.  Soil has a dry weight of around 76 pounds per cubic foot.  Assuming a 2 foot soil depth where tthe carbon has been taken from 2% to 8% this represents a gain of 9.12 pounds of carbon for square foot of soil area (remember, it has a depth of 2').

At 40,000 square feet per acre, a farm that ramps up from 2% to 8% will sequester 365,000 pounds of carbon per acre, or 182 tons.

With some 270 million acres of prime arable farmland, the US alone could absorb 49 gigatons (Gt) of carbon.  If we go all the way to the 4 foot depth of the Singing Frogs farm then we get roughly 100 Gt of carbon storage.

Comparing this to the yearly global carbon release into the atmosphere of 9.8 Gt gives us a sense of the scale.

There's a lot of arable land across the globe...the numbers add up.

 

 

TechGuy's picture
TechGuy
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Posts: 428
Chris Wrote: "With some 270

Chris Wrote:

"With some 270 million acres of prime arable farmland, the US alone could absorb 49 gigatons (Gt) of carbon. If we go all the way to the 4 foot depth of the Singing Frogs farm then we get roughly 100 Gt of carbon storage."

 Thats not practical at all, Do you really believe every acre of farmland would be torn up to 4 feet deep and saturated with Carbon? If I recall correctly, in the US and most of the developed world the average farmer age is about 65. Who exactly is going to do all the work make 4ft of carbon saturate topsoil? it would take a consider able long time (perhaps thousands of years to build up soil using the method Singing froms farm does via Composting).

Where does all the carbon come from? You really think all that carbon can orignate from Biomass to fill 270M acres? I very much doubt that "Singing farm" has every acre with 4ft of topsoil. My guess is that its "up to four feet" in some locations.Singing Frog Farms is a tiny farm, operating about 3 acres, and even the owners don't thing scaling to farms that are hundreds of arces is scaleable. they are promoting only small farms with high value crops that have a high retail value.

It would take "considerable effort" to make a large farm with 4ft of carbon rich top soil. In Most cases top soil is only a few inches deep, usually sitting on top of clay or sand.

Lets be practical. 

 

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