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Study: Which Sectors of US Economy Will 'Peak Oil' Imperil?
"Researchers from the University of Maryland and a leading university in Spain demonstrate in a new study which sectors could put the entire U.S. economy at risk when global oil production peaks ("Peak Oil"). This multi-disciplinary team recommends ...
Categories: Peak oil news from news.google.com
Two ongoing environmental events are affecting all life on the planet, even if it’s not yet noticeable where you live. Alex Smith of Radio Ecoshock is watching climate change and Fukushima very closely.
“The basic bargain at the heart of our economy has frayed,” he said in an address in Washington today that echoed a speech he gave two years ago in Osawatomie, Kansas, that set the stage for his 2012 re-election race. Increasing inequality “challenges the very essence of who we are as a people.”
Well, then Mr. Barry Soetero, why didn't you just tender your resignation?
See, it is the issuance of credit unbacked by anything that causes income disparity. The reason is that it also causes asset bubbles, and that in turn raises the cost of living. You can't keep up due to economic inefficiency -- that is, your income always rises at a slower rate than the increased credit availability.
But those in the very top are able to access leverage and they gain access to inside information and ways to use it without going to prison. The latter is essential because without it the inevitable collapses of said bubbles will always bankrupt you.
So you need both the access to cheap credit and inside information so as to know when to get out before being reamed. Otherwise your only choices are to gamble by using the leverage anyway, a losing bet that will almost-always eventually result in your bankruptcy (go ask Jesse Livermore about that; he ultimately blew his own brains out after making -- and losing -- several fortunes.)
The solution to this is to not let that happen.
The way you prevent it is to stop unbacked credit creation by treating unbacked credit creation as the counterfeiting that it is.
None of the asset price ramps we've seen through the years could have happened without that unbacked credit creation.
Tulip mania featured "futures" contracts on tulip bulbs, which were nothing other than naked credit creation. 1873 featured the same game with railroad bonds. The 1920s featured it in stock margin accounts and Florida swampland. 1999 of course featured it in worthless Internet stocks, 2007 in "fog-a-mirror" home loans and now the ramp from 2009 to today via federal and margin debt -- along with worthless Internet stocks. In short all of these bubbles came from the same place. Every one of them found its root in allowing certain entities to emit credit without anything behind it other than a promise to earn tomorrow, an inherently fraudulent promise because the funds to pay both the principal and interest do not exist in aggregate at the time the promise is made and only through the continued exponential creation of more credit can the promise be fulfilled.
These "asset ramps" cause your cost of living to rise dramatically, but your earnings in nominal dollars do not keep pace, because those are not funded with "printed credit"; you labor with real hours of real effort that can't be "printed" out of thin air. Your "appreciation" of earnings power in real terms is thus limited by the realized increase in productivity.
At its core exponential growth is always unstable. Two compound (exponential) growth functions, where one grows faster than the other, will always run away from one another. Since funds are always lent at interest in order for the promises made in aggregate to be kept the credit -- that is, money -- supply must always grow faster than production does.
This means you will always have crashes when such a system is allowed to exist because the purchasing power of each unit of currency is always debased and thus your ability to pay is systematically destroyed over time.
The only way to win such a game is to have inside information and to trade on it so that you exit your leveraged positions before the collapse occurs. Everyone else who uses leverage loses a multiple of their original capital and in most cases loses everything.
If Obama cared about this problem he would identify the true cause of the problem and put a stop to it.
But he doesn't, just as the Republicans don't. They instead both intentionally lie to you about where the problem lies -- whether it be "minimum wage" or some other "social justice" nonsense. Yet Obama knows exactly what made things "work" for him as one of the privileged few, because he has personally abused leverage in exactly the above way with his property and other holdings, just as have the Republicans.
For that matter so has Feinstein and her family; witness the deal for the Postal Service offices that Blum is acting as an "exclusive" agent for. Who is Blum? Take a guess. The value of this scheme? About a billion dollars.
Wake up America and eject this fraud -- along with the other 435 frauds in the US House and Senate -- from their positions of privilege that they are using to intentionally financially abuse you.
Artichoke Chair Responds to Peak Oil Production
A study from the University of Maryland backs up Kizis' contention that peak oil production will “likely occur before 2030 and has a pretty good chance of taking place before the end of this decade, after which it's theoretically all downhill.” The ...
Categories: Peak oil news from news.google.com
Bruised, bloodied and left for dead. That’s the only way you could describe social media stocks after investors started selling back in September.
But all that could change in just a few short days. More on this idea in just a second…
For more than six weeks, the once-hot social media stocks couldn’t catch a bid. Facebook, LinkedIn Groupon and other popular names appeared to have topped out. Some even posted double-digit losses. While the broad market recovered from the government shutdown scare and moved higher into November, these momentum leaders weren’t invited to the party.
“Given the disappointing performance of the stocks and another bubble talk, the only pure play ETF tracking the performance of social media companies – Global X Social Media Index ETF lost nearly 3.62% over the trailing one-month period,” Zacks Investment Research reports. “This is in contrast with the gains of 2.33% for the broad technology fund and 2.69% for broad U.S. market fund.”
A lot of analysts have been quick to call the top in the richly-valued social media group and other high-flying internet stocks. However, yesterday’s price action shows that these stocks might not be as fragile as everyone believes.
Facebook and Yahoo! have snapped back to life. Both surged more than 4% yesterday. In fact, Yahoo! (a trade that’s up 15% since I initially alerted readers of my Rude Awakening PRO, several weeks ago) blasted to new 52-week highs.
This bullish action could trigger another wave of buying throughout the sector. The leaders are already moving, so it’s time to look for the second-tier names to get a boost if the rally holds. Remember, stocks tend to rally hard into the New Year. After underperforming the market in the fall, social media could surprise a lot of investors heading into 2014.
P.S. In this morning’s Rude Awakening email edition, I told investors to keep a close eye on these stocks for a trade over the next few sessions… and I even gave them a chance to discover a specific sympathy mover you can trade right now. Don’t miss another great opportunity to cash in on this end-of-year rally. Sign up for the FREE Rude Awakening email edition, right here.
My, what a nice set of Android applications you have there. Looks like Go Launcher (it is.)
But what is that phone?
Oh wait... it's not an Android at all..... it just runs like one along with all the BB10 you want.
One device, two environments, both accessible and running at the same time.
I want to ask: what are the arts of uncivilisation? What happens outside the gallery and the multiplex, what are the barbarian images that might liberate our vision, that bring us home?
In the week ending November 30, the advance figure for seasonally adjusted initial claims was 298,000, a decrease of 23,000 from the previous week's revised figure of 321,000. The 4-week moving average was 322,250, a decrease of 10,750 from the previous week's revised average of 333,000.
The advance number of actual initial claims under state programs, unadjusted, totaled 313,973 in the week ending November 30, a decrease of 54,507 from the previous week. There were 500,163 initial claims in the comparable week in 2012.
500k last year?!
Now look at this:
Jesus.... right into survey week.
Tomorrow's NFP report will certainly be interesting.... especially the household survey.
Note: DOL had last week's report out for a while -- my bad.
“In Fracking, Sand is the New Gold” a headline from the Wall Street Journal proclaims.
However, unless you own a sand mine yourself, the golden gains will be tough to grab.
Today we’ll take a look at the best ways to play this essential piece of America’s shale boom. As you’ll see, there are plenty of safe ways to play America’s “new gold”…
Wake up and smell the shale boom! Yesterday’s Wall Street Journal landed on your editor’s doorstep, and before the dog could get at it, I noticed a timely write-up on America’s shale boom.
The article was about sand.
But regardless of being plain, white and boring, sand is an essential part of America’s shale boom – a profitable one as you’ll see!
Before we continue, it’s important to note that the Journal’s note on sand was a little off. “Blasting it down oil and natural gas wells to help crack rocks and allow fuel to flow out” – isn’t exactly accurate. (Yet another reason there’s so much misunderstanding about the fracking industry!)
To be clear, sand isn’t used to “blast” anything, nor does it help “crack” rocks. I’m sure when most folks read that sentence they think of a sandblaster shooting its way through rock. But that’s simply not the case.
Sand is a proppant (a word you won’t find in the WSJ article, mind you!) That is, as a rock formation is pressurized and fractured during the fracking stages, sand is used to prop those fractures open. Think of propping a window open with a baseball, to allow air to flow. Indeed, if you simply pressurized and fracked a rock formation with no proppant, oil and gas wouldn’t easily flow to the surface.
At any rate, sand is a vital piece of the shale industry. And if the media coverage is any indication (even National Geographic dubbed it a “Sand Rush”), this important proppant remains a profitable business from many aspects.
Two producers in particular are enjoying added sand demand, Hi-Crush Partners (HCLP) and U.S. Silica (SLCA.) For a look at each company’s one-year gain take a look at the nearby chart.
Keeping an eye on these commodity producers could provide you with a profitable path. But with the run-up we’ve seen in 2013 alone, the sand market is looking a little frothy.
While you keep an eye on the producers I suggest you also look to two alternative ways to play America’s sand boom.
The first “alternative” way to play booming sand production is through the logistics. Indeed, no matter which sand mine/shale well combo you pick there’s typically a middle man transporting the heavy grains to the wellhead – in many cases that’s a rail company!
Remember, crude oil production has created resurgence in rail demand – the typical example here is North Dakota’s production boom, with no existing infrastructure rail tankers were the transport mode of choice. In a similar way, the white sands of Wisconsin, what could be labeled as the fracking sand capital of the US, need to be transported to the shale wells in Texas, North Dakota and other shale hotspots.
Of note, according to a representative from U.S. Silica, it takes “25 railcars of sand” to frack one well. That number is underpinned by a report from Bloomberg that says it takes 35 railcars, or 3,500 tons of sand per well. So we’re talking about a lot of rail capacity needed to ship this vital commodity.
A quick look at the rail maps for the major rail providers in the U.S. and you’ll see that Union Pacific (UNP) is uniquely positioned to cash in from sand shipments in Wisconsin. Looking to the north, the same could be said for Canadian National (CNI) – the main artery of their rail system passes through Wisconsin. (Of course Warren Buffet’s BNSF railroad will also play a major role, but alas, it’s a private company.)
Looking ahead, the investment opportunity still remains with Union Pacific and Canadian National. These two railways in particular will enjoy years of added sand cargo from Wisconsin to major shale plays in Texas and North Dakota.
The second “alternative” way to play America’s sand rush is hidden in the balance sheet…
You see, years ago, a few very well run oil and gas producers figured out sand would be in high demand. In that sense these savvy companies were worried about price run ups and well cost overruns. Knowing this they took the initiative to lock in the absolute lowest sand prices they could find.
How’d they do it?
The bought their own sand mines!
EOG Resources (EOG) and Pioneer Natural Resources (PXD) both saw the writing on the wall and decided to take their sand commodity costs in-house. Today that move is paying off big-time on their balance sheets.
According to Forbes, “Part of the reason EOG’s wells in [the Eagle Ford] formation cost $1 million to $2 million less than other operators is because they own their own sand.” Of course, it’s important to note the wording. The article says “part of the reason”, as sand won’t cut $1-2 million in cost by itself. Of course, using 5,000 tons of sand (at $50 to $125/ton) companies could see hundreds of thousands in savings per well. So we’re not talking small potatoes here, either.
“EOG has since invested more than $200 million in three sand mines and two processing plants in Wisconsin” the Forbes article continues. “It ships the sand via BNSF and other railroads to the Bakken and Texas.”
Pioneer Natural Resources has also taken giant steps in the sand gathering game. In 2012 the company announced the acquisition of Carmeuse Industrial Sands. This deal put Pioneer ahead of the sand game in two regards:
- First the company acquired over 20 million tons of white sand reserves in Wisconsin, along with potential production capacity of one million tons per year.
- Second, Pioneer took ownership of a brown sand mine in West Texas which will be used in its operations in the Permian Basin.
Together EOG and Pioneer have been slashing costs and producing more oil and gas. That’s an amazingly ancillary way to multiply you’re your gains in the sand game!
Plus, here’s the kicker…
I don’t see this sand boom ending any time soon, either. With decades of drilling left for many of the well-run shale producers, sand will continue to be in high demand. Furthermore companies are testing the idea of using more sand per well. So far test results are positive.
EOG knows this well. According to Trevor Sloan, an analyst at ITG Investment Research, EOG is seeing higher production from wells with more sand.
Add it all up and there’s a profitable trend emerging in America’s “new gold.”
Keep your boots muddy,
P.S. As the shale boom in the US continues, more and more of these outlier stories will present themselves. And I’ve made it my mission to discover as many of them as possible, before the general public gets wind of them. I’ll be sharing more of my insights on this and other exciting investment ideas on the US energy boom in the coming weeks and months in my Daily Resource Hunter email edition. I invite you to join me for FREE, right here.
Original article posted on Daily Resource Hunter
Japan’s Food Recycling Law was enacted in 2001 and revised in 2007 in order to promote the reutilization of food resources.
Today, at least in Norway, we have too much of everything, and hence we value nothing.
A mid-week update. After falling steadily since the middle of September, New York oil futures rebounded this week by some $5 a barrel to close at $97.14 on Wednesday.
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.6 percent in the third quarter of 2013 (that is, from the second quarter to the third quarter), according to the "second" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 2.5 percent.
The revision is pretty-much all inventory build (which had better be sold through this quarter -- think Grinchmas) and non-residential fixed investment (construction.)
Personal consumption was revised down and real final sales (that is, actual consumption) were down from the second quarter to +1.9%.
Now here's the embedded problem in the report: current production profits were down to +$38.3 billion from +$66.8 in the second quarter. Current taxes also decreased as expected, and dividends also decreased, although most of that was due to Fannie's transfers decreasing.
Worse, domestic profits were down to about a third of the 2nd quarter increase.
That's going to flow through to earnings.
Is the work of your organization aligned with its purpose, without egos getting in the way? Holacracy® is a way to embed conscious practices into all aspects of your organization.
Jane Goodall and Vandana Shiva discuss their decades of work devoted to protecting nature and saving future generations from the dangers of climate change.
Man, the conqueror of Nature, died Monday night of a petroleum overdose, the medical examiner’s office confirmed this morning. The abstract representation of the human race was 408 years old.
For Bove, the end of Fannie Mae and Freddie Mac will radically shake up the kind of mortgages most Americans will get.
"If Fannie and Freddie go away, what then happens to the mortgage markets?" asks Bove. "The answer to that question is that we no longer have things like 20-year and 30-year mortgages because banks are not going to put that type of mortgage on their balance sheets. And we won't have fixed-rate mortgages."
Unlike the rest of the developed world, most homes in the US are bought with long-term fixed mortgages. Prior to the Great Depression, mortgages often required 50% down with interest only payments for five years with the principal due in full after those five years were up.
Yeah, the good old-fashioned "balloon note." We didn't have fancy computers then or the banks would have screwed the people in the 20s just like they did in the 2000s. But since you had to be able to figure out the interest with a piece of paper and a pencil (or its rough equivalent) the sort of fancy-pants garbage (negative-amortization and similar) was impractical, as was securiritzation.
Nonetheless the banksters managed to figure out how to get people to use lots of leverage anyway with balloon notes -- and huge percentages of those "buyers" lost their house when they discovered that they had inherent gearing of 5:1 or even more.
"If your mortgage cannot be a 30-year fixed-rate mortgage – [if] it's a 10-year adjustable rate mortgage – then, the monthly cost of owning a house goes up dramatically," says Bove. "And, if the monthly cost of owning a house goes up dramatically, the price of the house goes down. There is no equity buildup in order to have home equity loans in order to buy cars, boats, what have you. So, it has an impact on the overall economy, not just Fannie Mae and Freddie Mac."
So Bove, who claims to be an "analyst", doesn't understand that this is all a balance sheet?
Or is he intentionally omitting that little point?
Because if you have a 10 year adjustable rate mortgage after ten years you no longer have any payment at all. Even better you pay a lot less in interest during those ten years.
How much less?
Let's take a 30 year mortgage for $200,000 @ 6% interest. Your monthly "nut" is $1,193.14. Over 30 years you give the bank $429,528.73 in earned income to "pay" that $200,000.
Now let's assume the mortgage is for 10 years at a 5% interest rate. Your monthly "nut" is roughly double -- $2,112.521. But -- over 10 years you give the bank just $253,500.98.
The $176,027.75 you do not give the bank will buy a hell of a boat and a whole bunch of cars, all of which you will be able to buy for cash!
And that assumes the price of the house doesn't get cut in half. It will. Now you have $302,778 more in your pocket over that 30 years of time, and you have the same place to shit, shower and shave that you would have had with Fannie and Freddie "in the market."
Now there are those who will argue that it's all a "wash" because you "build equity." That's false -- the additional interest you pay is gone from you forever, and goes to someone else.
Sure, if you happen to own a million dollar house you might be very interested in not seeing the price cut in half as these unsustainable and ultimately bogus "financing" options disappear.
But if you do not own a house now then would you rather pay $100,000 for it -- or $200,000?
People like Bove need to be publicly called out, shamed and shunned -- and that's being charitable.
Most internet start-ups believe there is only one path to financing their company’s growth: start with friends and family, move on to wealthy angel investors, attract venture capital, and finally sell the company so the investors can make a killing. The good news is that there is an alternative path...
Industry insiders and politicians, citing several recent studies, are literally gushing with optimism over the prospect of a protracted period of economic prosperity. But those studies are now coming under scrutiny.
Bike share stations are...natural conversation-starters, attract a stream of diverse users at all times of day & night, and act as casual landmarks that concentrate activity.