SAR #11272

'Truth is most often based on beliefs, not facts.

Status Report: We have been supporting the banks for over three years now on the premise that it was the only way we could save ourselves. At least that's the argument the banks made, but they are hardly disinterested sources. Evidence to support this proposition seems extraordinarily hard to find. What evidence there is suggests that the interests of the banks and those of the citizenry are incompatible.

Sharp Stick/Eye: China's TV coverage of the launch of Tiangong-1, the country's first space laboratory was accompanied by the playing of “America the Beautiful”.

As the World Turns: The German Parliament voted to go along with the expanded European rescue fund, even though 75% of the German population is against doing so. One way to read these tea (party) leaves is to see a change in political leadership, which would be elected to reverse the bailouts. Tune in tomorrow...

'Nuff Said: Money continues to flow in ever increasing amounts from households to the health care industry. See, the system works just fine.

Sinking Spell: The GOP's dedicated penny-pincers in the House plan to cut heating subsidies for the poor, cut money for the country's best performing schools, cut Pell grants for low income college students, and trash job training funds. They also want to kick NPR off the air and stop government participation or involvement in health care before it makes inroads into insurance company profits.

When they Begin the Beguine: Denmark says it will give its bank $72.6 billion to insure their liquidity. Okay, fine. Where did they get the $72.6 billion?

Mr. Ed: “Oil output from fields in production declines by 5 per cent a year as reserves are depleted, so the world needed to add the equivalent of four Saudi Arabias or 10 North Seas over the next 10 years just to keep supply level, even before much of an increase in demand.” Shell CEO Peter Vosser.

Emphasis: The headlines bemoaned the fact that one out of five modified home mortgages defaulted again within a year. I was encouraged that 80% of modified mortgages were still solid after a year.

Time Warp: The military junta ruling Egypt is warning about the threat to democracy posed by those calling on the military to give up power, It warned that protesters would be "dealt with with the utmost firmness." That firmness was displayed when Egyptian security forces raided Al-Jazeera's offices and confiscated their equipment in retaliation for reporting that the government has unleashed its security forces to shut down organizations reporting on the government actions.

Been Down So Long... It is suddenly respectable to worry about what the coal miner's daughter will do once the coal runs out in West Virginia, Tennessee and Kentucky. Absent coal, who will enslave the workers and ruin the landscape? Don't worry, I'm sure Rand Paul's got the answer – and it doesn't involve any federal funds.

Math Problem: The weekend writing assignment is to construct a probable future based on the existence 7 billion humans on a planet that can sustainably support somewhat less than 2 billion of them.

Company Store: In what the markets think is good news, but isn't, personal spending increased 0.2% last month. Personal income, however, decreased 0.1%. So overall the customer went deeper in debt.

Two if by Sea: The bad news is that North Sea gas production fell 25% in 2Q2011. The worse news is that Great Britain's oil production from the North Sea fell 16% in the last year. Even more dispiriting, British coal imports increased 36%.

Pre-conditions: Economist Kevin O'Rourke suggest that one of the basic problems in today's politico-economic discussions is that understanding macroeconomics requires knowing a fair bit about economic history.

Porn O'Graph: What a difference... not.