Saturday, September 8, 2012

SAR #12251

We threw it all away…
He Said:  John Hofmeister, the former chief of U.S. operations for Shell "Unless something seriously changes in the next five years, we'll be standing in gas lines because there won't be enough oil to go around."

Pump Priming:  Not that the Chinese economy is in any trouble or anything, but just in case the government is going to build over 2,000 kilometers of new roads, finance 9 new sewage-treatment plants, five port and warehouse projects, and a partridge in a pear tree.  Coincidentally, Chinese steel mills lost  nearly 2 billion yuan (over $300 million) in July as orders fell.  No mill slow-downs, much less closings, are scheduled because local governments subsidize them to ensure continued employment and to prop up the local economies.  Funny, they don't look Kensyian.
Unexpectedly:   The US generated less than 100,000 new jobs in August (96,000), down from July's initially claimed 163,000 (shrunk now to 143,000). About 15,000 more manufacturing jobs were lost, strayed or stolen and the employment participation rate dropped to 63.5% - it's lowest point in over 30 years.

Hidden Treasure:   In endorsing the Bowles/Simpson Cat Food Commission's recommendations,  President Obama has endorsed cutting  Social Security payments by 3% (through mucking with the COLA formula) and pushing the retirement age to 69.  Of course he didn't point out that's what 'deficit reduction' means, but it is. 

Dry Spell:  Citigroup's Heidy Rehman, who missed the memo on the shale oil and gas cornucopia and sounds just like one of those delusional peak oilers, says Saudi Arabia will stop exporting oil by 2030 – mainly because their internal consumption is rising quickly – at 9% a year – while their experienced oil fields continue their slow but inevitable decline.  And the other Arab oil states face the same future.  As do we all.

Porn O’Graph:  Me, too – everyone else is citing this one.
The Parting Shot:  


Anonymous said...

RE: Porn O'Graph:

2008 looks exactly like '01. '01 isn't as deep, but the pattern is the same. There isn't another bubble to blow so the next one will be much worse.


OkieLawyer said...

Re: Pump Priming

I think you meant Keynesian, not Kensyian.

Charles Kingsley Michaelson, III said...

Ok, Okie - quite right. Keynesian. My excuse is that I'm traveling & the time differences have led me to giving First Reader a week off - which explains almost any faults, of course. - ckm

Tulsatime said...

Well at least it wasn't Kenyan, there has been too much of that nonsense of late. Personally, I'd have more of a problem with Evangelical Pentacostal, or AME, but they are more concerned for the muslin infiltration that will threaten our precious way of worship and fabric, and you know how they get.