Oil, Food, Middle Class Down = Long Emergency

01 Brazil, 02 China, 03 Economy, 03 India, 04 Indonesia, 05 Energy, 06 Family, 06 Russia, 07 Venezuela, 08 Wild Cards, 11 Society, Civil Society, Commerce, Commercial Intelligence, Corruption, IO Sense-Making
John Robb

D2 SCENARIO

I gave a little talk at a financial conference (Casey Research) that included the following very simple economic scenario:

  • Oil prices are going up (inexorably). China + Peak Oil + Financial diversification. Oil doesn't stop going up until GDP goes down. It's an inexorable force until then.
  • The US middle class is broken.  A hollow husk unable to withstand the slightest gust.  Regardless, it's the ultimate source of demand for the global economy. It's an immovable barrier.
  • When oil hits ~$150 a barrel the impact occurs between inexorable force and immovable barrier. The combo of higher prices at the pump and for everything else (food and other essentials) starts to crush middle class budgets and force defaults.  The economy shrinks until the price of oil goes down enough to be affordable again (for those still left in the middle class).

We keep repeat the pattern above until we're in the second depression (D2).  Long term low demand.

Phi Beta Iota: This is precisely why the BRICS (now including South Africa) and a new coalition, perhaps led by Cuba and Venezuela since Chile is refusing to lead, should focus on the immediate challenge of creating infinite free renewable energy–the foundation for global non-zero advances.  Such a strategy would be inherently ethical, legal, citizen-centered, and non-violent as well as non-intrusive on any conceivable concept of sovereignty or indigenous privilege.

USA in a Depression–Employment Hosed

03 Economy, 06 Family, 09 Justice, 11 Society, Civil Society, Commerce, Corruption, Government
Chuck Spinney Recommends...

May 2, 2011

Meanwhile, Back in the Homeland

Economic Terror Wins the Day: We're in a Depression

By MIKE WHITNEY, Counterpunch

On Thursday, Gallup reported that “More than half of Americans say the U.S. economy is in a recession or a depression despite official data that show a moderate recovery…..The April 20-23 Gallup survey… found that only 27 percent said the economy is growing. 29 per cent said the economy is in a depression and 26 per cent said it is in a recession, with another 16 per cent saying it is “slowing down,” Gallup said.”

55 percent of Americans believe we are in a depression or a recession a full 5 years after the housing bubble burst (2006) and 3 years after Lehman Brothers collapsed. (2008)  Gallup's findings jibe with other surveys that indicate growing desperation among the public. For example,  Globescan found that a large number of Americans have given up on free-market capitalism altogether, while other polls show dwindling confidence in government institutions, the Federal Reserve, the Congress, the judicial system and the media.

. . . . . . .

Do you have any idea how bad unemployment really is? Take a look at this from Calculated Risk:

“There are currently 130,738 million payroll jobs in the U.S. (as of March 2011). There were 130,781 million payroll jobs in January 2000. So that is over eleven years with no increase in total payroll jobs.

“And the median household income in constant dollars was $49,777 in 2009. That is barely above the $49,309 in 1997, and below the $51,100 in 1998……

Full story online….

Understanding Rising Food Prices

01 Agriculture, 01 Poverty, 03 Economy, 03 Environmental Degradation, 04 Education, 05 Energy, 06 Family, 07 Other Atrocities, 11 Society, 12 Water, Commerce, Commercial Intelligence, Corruption, Cultural Intelligence, Earth Intelligence, Government
Cheery Waves Recommends....

Bottom line:  ignorant government policies, and particularly the mandating of corn's use to make ethanol, have driven the price of corn up for real people who want to each corn and products containing corn (which turns out to be just about everything).

It's Getting Harder to Bring Home the Bacon

By MARY KISSEL, April 30, 2011

Wall Street Journal

C. Larry Pope, CEO of the world's largest pork producer, explains why food prices are rising and why they are likely to stay high for a long time.

It's also a business under enormous strain. Some “60 to 70% of the cost of raising a hog is tied up in the grains,” Mr. Pope explains. “The major ingredient is corn, and the secondary ingredient is soybean meal.” Over the last several years, “the cost of corn has gone from a base of $2.40 a bushel to today at $7.40 a bushel, nearly triple what it was just a few years ago.” Which means every product that uses corn has risen, too—including everything from “cereal to soft drinks” and more.

What triggered the upswing? In part: ethanol. President George W. Bush “came forward with—what do you call?—the edict that we were going to mandate 36 billion gallons of alternative fuels” by 2022, of which corn-based ethanol is “a substantial part.” Companies that blend ethanol into fuel get a $5 billion annual tax credit, and there's a tariff to keep foreign producers out of the U.S. market. Now 40% of the corn crop is “directed to ethanol, which equals the amount that's going into livestock food,” Mr. Pope calculates.

Continue reading “Understanding Rising Food Prices”

Overcoming the political divide, but not through facts!

03 Economy, 04 Education, 06 Family, 11 Society, Advanced Cyber/IO, Articles & Chapters, Civil Society, Cultural Intelligence, InfoOps (IO), Methods & Process, Misinformation & Propaganda
John Steiner

This is a great analysis of how the liberal/conservative political divide persists, and a suggested path to solving it. By Ethan Zuckerman at the Berkman Center.

Great quote up front:

“You don’t lead with the facts in order to convince. You lead with the values — so as to give the facts a fighting chance.”

04/25/2011 (11:41 am)

Overcoming political polarization… but not through facts

A recent New York Times poll suggests that Americans are in a dark mood. 70% of people think the country is moving in the wrong direction, a number not seen since the peak of the Great Recession two years ago. Their frustration may stem from higher gas prices or continued unemployment, but at least some commentators believe that a key factor is popular frustration with a dysfunctional government that doesn’t seem able to address the issues the US is facing.

Read entire piece with many links….

Phi Beta Iota: This has been upgraded to a reference.  Brother Steiner has brought forward one of the most elegant reviews of the conflicts between beliefs, values, facts, and needs that we have seen.  This is a deep and broad article whose substance–and the links therein–merit appreciation by all who wish to advance the public's common interest.

Forgotten Mother of Civic Intelligence Apps

06 Family, 07 Health, 07 Other Atrocities, 11 Society, 12 Water, Civil Society, Cultural Intelligence, Ethics, IO Sense-Making
Who, Me?

The post Search: errors that resulted in great ideas and especially the  comment on need to fully integrate women and minorities reminded me of Ellen Swallow Richards.  She was one of the first publicly acknowledged female heavy-weights in intellect and values in the USA, in my opinion.  See especially her later books, The Cost of Food, The Cost of Shelter, The Art of Right Living, The Cost of Cleanness, Sanitation in Daily Life (1907), and Euthenics, the Science of Controllable Environment (1910).  I had forgotten that she was also responsible for introducing the word “ecology” into the English language.

Wikipedia/Ellen Swallow Richards

Ellen Henrietta Swallow Richards (December 3, 1842 – March 30, 1911) was the foremost female industrial and environmental chemist in the United States in the 19th century, pioneering the field of home economics. Richards graduated from Westford Academy (2nd oldest secondary school in Westford, MA). She was the first woman admitted to the Massachusetts Institute of Technology and its first female instructor, the first woman in America accepted to any school of science and technology, and the first American woman to earn a degree in chemistry.

Read more….

See Also:

Chamber of Scientists > Ellen Swallow Richards

Food Industry’s Erin Brockovich–Unhealthy Truth

01 Agriculture, 03 Economy, 06 Family, 07 Health, 07 Other Atrocities, 11 Society, 12 Water, Civil Society, Collective Intelligence, Collective Intelligence, Commerce, Corporations, Corruption, Cultural Intelligence, Earth Intelligence, Ethics, Government, InfoOps (IO), Methods & Process, Misinformation & Propaganda, Money, Banks & Concentrated Wealth, Politics of Science & Science of Politics, Strategy, Waste (materials, food, etc)
John Steiner

From John and Margo

All we can say is do watch this!

Patriotism on a Plate
February 2011 TEDx Austin talk.

Robyn shares her personal story and how it inspired her current path as a “Real Food” evangelist. Grounded in a successful Wall Street career that was more interested in food as good business than good-for-you, this mother of four was shaken awake by the dangerous allergic reaction of one of her children to a “typical” breakfast. Her mission to unearth the cause revealed more about the food industry than she could stomach, and impelled her to share her findings with others. Informative and inspiring.

Amazon Page

Robyn authored The Unhealthy Truth: How Our Food Is Making Us Sick and What We Can Do About It. A former Wall Street food industry analyst, Robyn brings insight, compassion and detailed analysis to her research into the impact that the global food system is having on the health of our children.  She founded allergykidsfoundation.org and was named by Forbes as one of “20 Inspiring Women to Follow on Twitter.” The New York Times has passionately
described her as “Food's Erin Brockovich.”

Follow Robyn O'Brien on Twitter

Phi Beta Iota: Across all twelve “policy” domains from agriculture to water, with food cutting across all  domains ans especially Family, Health, and Society, we are seeing the emergence of public intelligence in the public interest.  What we are not seeing (yet), is the integration of “true cost” information as a core element that must be available to the public; and the integration of all that we can know about each domain in isolation, into a larger “360 degree” strategic analytic model for getting a grip on how we live and how we spend.

Guest Post: Analysis of the Global Insurrection Against Neo-Liberal Economic Domination and the Coming American Rebellion

01 Agriculture, 01 Poverty, 03 Economy, 06 Family, 07 Other Atrocities, 08 Wild Cards, 09 Justice, 10 Transnational Crime, 11 Society, Commerce, Commercial Intelligence, Corruption, Counter-Oppression/Counter-Dictatorship Practices, Cultural Intelligence, Government, Money, Banks & Concentrated Wealth

Guest Post: Analysis of the Global Insurrection Against Neo-Liberal Economic Domination and the Coming American Rebellion

Tyler Durden's picture

Submitted by Tyler Durden on 02/26/2011 20:53 -0500

If you think what’s happening in Egypt won’t happen within the United States, you’ve been watching too much TV. The statistics speak for themselves.

Join The MovementIn previous Revolution Roundups, before we were knocked offline, we featured mass protests by the people of Ireland, Italy, Britain, Austria, Greece, France and Portugal, as the Global Insurrection contagion spread throughout Europe. And now, as we have seen over the past month, North African and Middle Eastern nations have joined the movement as the people of Egypt, Tunisia, Jordan, Morocco, Gabon, Mauritania, Yemen, Bahrain, Libya, Palestine, Iraq, Sudan and Algeria have taken to the streets en masse.

The connection between this latest round of uprisings and the prior protests throughout Europe is one the mainstream media is not making. We are witnessing a decentralized global rebellion against Neo-Liberal economic imperialism. While each national uprising has its own internal characteristics, each one, at its core, is about the rising costs of living and lack of financial opportunity and security. Throughout the world the situation is the same: increasing levels of unemployment and poverty, as price inflation on food and basic necessities is soaring.

Whether national populations realize it or not, these uprisings are against systemic global economic policies that are strategically designed to exploit the working class, reduce living standards, increase personal debt and create severe inequalities of wealth. These global uprising, which have only just begun, are the first wave of the inevitable reaction to the implementation of a centralized worldwide Neo-Feudal economic order.

The global banking cartel, centered at the IMF, World Bank and Federal Reserve, have paid off politicians and dictators the world over — from Washington to Greece to Egypt. In country after country, they have looted national economies at the expense of local populations, consolidating wealth in unprecedented fashion – the top economic one-tenth of one percent is currently holding over $40 trillion in investible wealth, not counting an equally significant amount of wealth hidden in offshore accounts.  Read More….

Tip of the Hat to Contributing Editor Jock Gill for the link.

See Also:

Continue reading “Guest Post: Analysis of the Global Insurrection Against Neo-Liberal Economic Domination and the Coming American Rebellion”