Chinese Rally Monkey Boosts Futures
May 27th, 2010
Via: Bloomberg:
Stocks and U.S. futures surged and the euro snapped a three-day decline against the dollar as China said it remains a long-term investor in Europe, damping concerns that the region’s debt crisis will worsen. Commodities rallied.
Government to Track Your Child’s Body Mass Index
May 27th, 2010Eat Fat, Lose Fat by Mary Enig
Via: American Thinker:
I thought this might be one of those bills where someone has misread the language and interpreted what the legislation is supposed to do incorrectly.
Nope. Rep. Kind of Wisconsin has introduced legislation that he proudly proclaims will track the body mass index (BMI) of your child from age 2-18:
A bill introduced this month in Congress would put the federal and state governments in the business of tracking how fat, or skinny, American children are. States receiving federal grants provided for in the bill would be required to annually track the Body Mass Index of all children ages 2 through 18. The grant-receiving states would be required to mandate that all health care providers in the state determine the Body Mass Index of all their patients in the 2-to-18 age bracket and then report that information to the state government. The state government, in turn, would be required to report the information to the U.S. Department of Health and Human Services for analysis.
The Healthy Choices Act–introduced by Rep. Ron Kind (D-Wis.), a member of the House Ways and Means Committee–would establish and fund a wide range of programs and regulations aimed at reducing obesity rates by such means as putting nutritional labels on the front of food products, subsidizing businesses that provide fresh fruits and vegetables, and collecting BMI measurements of patients and counseling those that are overweight or obese.
I wonder if that “counseling” will be mandatory? No matter. When Nanny says jump, you ask “How high, Nanny?” If government wants information that is absolutely none of their business, they are going to coerce states into giving it to them.
IBM Patent Application Describes “Intelligent” Stop Lights That Turn Off Cars
May 27th, 2010What could possibly go wrong?
Via: Daily Tech:
Running red lights and failure to stop leads to untold numbers of traffic accidents around the world. Sitting at a red light with cars idling also burns fuel that really isn’t needed.
IBM has filed a patent application that outlines a system that would turn the motors of a car off at a traffic light to conserve fuel. Few will take issue with green technology that conserves fuel, saves them money, and reduces pollution. However, there is a dark side to the patent application that privacy advocates will not like.
The system IBM is proposing has to have access to the engine of the vehicles at the light to stop the engine. With access to the engine, the traffic lights can not only stop the engine of a driver’s car, but it can also determine the duration that the engine is stopped and then when the light is over it can start the motors of the cars up in sequential order so the first cars at the light get to go first. The system would use GPS data to know where vehicles were located at the light.
Transocean Will Make $270 Million from Insurance Payout on Destroyed Oil Rig
May 26th, 2010The rig that blew up was over-insured by $270 million. Fascinating coincidence!
Hmm. Did BP hold dead peasant insurance on the rig workers who died?
Via: Politico:
Eighteen Democratic senators have asked the Justice Department to investigate the operator of the Deepwater Horizon offshore drilling rig after the company announced it would dole out $1 billion to shareholders as oil continues to pour into the Gulf of Mexico.
Transocean, according to the letter from the senators, plans to distribute dividends to its stockholders. And the senators are concerned that the payments might make it harder to collect liability payouts related to the massive oil spill.
Transocean, according to the letter, also says it will make a $270 million profit on the insurance policy for the rig. And the senators claim the rig was insured for more than it was worth.
Civil Fine in Gulf Spill Could be $4,300 a Barrel
May 26th, 2010In other news: Obama Biggest Recipient of BP Campaign Cash.
Via: Reuters:
Just how many barrels of oil are gushing into the Gulf of Mexico from the Deepwater Horizon spill is a billion dollar question with implications that go beyond the environment. It could also help determine how much BP (BP.L) and others end up paying for the disaster.
A clause buried deep in the U.S. Clean Water Act may expose BP and others to civil fines that aren’t limited to any finite cap — unlike a $75 million limit on compensation for economic damages. The Act allows the government to seek civil penalties in court for every drop of oil that spills into U.S. navigable waters, including the area of BP’s leaking well.
As a result, the U.S. government could seek to fine BP or others up to $4,300 for every barrel leaked into the U.S. Gulf, according to legal experts and official documents.
So far, analysts and experts calculating potential oil spill liabilities have mostly concentrated on the cost of the clean-up and compensation for economic damages to affected parties. Some have also discussed criminal liabilities.
But the potential for civil fines has received scant attention — and they could add up very quickly, depending on how agressive the U.S. government is in pursuing them.
The threat of hefty fines underscores the importance of quantifying how much oil is pouring into the Gulf. As BP seeks to staunch the leak that has now been gushing for at least 33 days, it has estimated a spill rate of 5,000 barrels per day. But some experts say the volume — and hence the fines — could be more than 10 times higher.
The little-known, seldom applied clause in the Clean Water Act was added in 1990 after the Exxon Valdez disaster in Alaska, and was intended to beef up the arsenal of penalties the government can apply to oil spillers to deter future disasters.
“These civil penalties could be staggeringly high, possibly running into the billions,” said Professor David Uhlmann, director of the Environmental Law program at University of Michigan.
Total liability — including civil fines as well as the cost of clean-up, economic damages and potential criminal liability — “will run into the billions and may be in the tens of billions,” Uhlmann said.
Under the Clean Water Act, the Environmental Protection Agency can seek in federal court to fine any party whose negligence results in an oil spill in U.S. federal waters.
Plummeting Marijuana Prices Create A Panic In California
May 26th, 2010Understand the purpose of the drug war with just one story. Hint: Law enforcement is used to keep supplies down and prices high.
So what changed?
California is broke and the state government wants a cut of the action.
Via: NPR:
For decades, illegal marijuana cultivation has been an economic lifeblood for three counties in northern California known as the Emerald Triangle.
The war on drugs and frequent raids by federal drug agents have helped support the local economy — keeping prices for street sales of pot high and keeping profits rich.
But high times are changing. Legal pot, under the guise of the California’s medical marijuana laws, has spurred a rush of new competition. As a result, the wholesale price of pot grown in these areas is plunging.
The Net Worth of the U.S. Presidents: Washington to Obama
May 26th, 2010Via: The Atlantic:
Having examined the finances of all 43 presidents (yes, 43; remember, Cleveland was president twice), we calculated the net worth figures for each in 2010 dollars. Because a number of presidents, particularly in the early 19th Century, made and lost huge fortunes in a matter of a few years, the number for each man is based on his net worth at its peak.
We have taken into account hard assets like land, estimated lifetime savings based on work history, inheritance, homes, and money paid for services, which include things as diverse as their salary as Collector of Customs at the Port of New York to membership on Fortune 500 boards. Royalties on books have also been taken into account, along with ownership of companies and yields from family estates.
The net worth of the presidents varies widely. George Washington was worth more than half a billion in today’s dollars. Several presidents went bankrupt.
Trans-Alaska Pipeline Shutdown
May 26th, 2010Via: Reuters:
The Trans-Alaska Pipeline, partly owned by BP, shut down on Tuesday after spilling several thousand barrels of crude oil, drastically cutting supply out of Alaska’s oilfields.
The accident comes at a difficult time for BP — the largest single owner of the pipeline operator, holding 47 percent — as it struggles to plug a gushing Gulf of Mexico oil well.
The shutdown followed a series of mishaps that resulted from a scheduled fire-command system test at Pump Station 9, about 100 miles south of Fairbanks, said Alyeska Pipeline Service Co, the operator of the 800-mile oil line.
The power outage triggered opening of relief valves, causing an unspecified volume of crude oil to overflow a storage tank into a secondary containment. There were no injuries, but the approximately 40 people at the work site were evacuated, Alyeska spokeswoman Michele Egan said.
North Slope oil producers have cut their flow into the pipeline’s Prudhoe Bay intake station to 16 percent of their normal rates, Egan said. There is enough storage capacity to allow the line to be shut down for 48 hours as long as producers maintain the 16 percent flow rate, she said.
It is unclear how long the shutdown will last.
“We’re going to take as long as we need to make sure the site is safe before we start back up,” Egan said.
The volume of spilled oil is unknown. “We’ve estimated the spill is several thousand barrels,” she said. All has been held within the secondary containment, which has capacity to hold 104,500 barrels, she said. The amount spilled is “nowhere near” the containment area’s capacity, she added.
Alyeska is a consortium owned by five oil companies. Major owners are BP, ConocoPhillips and Exxon Mobil. Unocal and Koch hold minor shares.
The Trans-Alaska Pipeline, which runs from Prudhoe Bay to the tanker port of Valdez, normally ships about 667,000 barrels of oil daily.
Australia: John Clarke and Bryan Dawe Calculate the Cost of the European Debt Crisis
May 25th, 2010Via: ABC News:
BRYAN DAWE: Correct. How much does Spain and Italy owe?
JOHN CLARKE: $1 trillion each.
BRYAN DAWE: Correct. Who to?
JOHN CLARKE: Mainly France, Britain and Germany.
BRYAN DAWE: Correct. And how are Germany, France, Britain going Roger?
JOHN CLARKE: Well they’re struggling a bit, aren’t they?
BRYAN DAWE: Correct. Why?
JOHN CLARKE: Well ‘cause they’ve lent all the vast amounts of money to other European economies that can’t possibly pay them back.
BRYAN DAWE: Correct so what are they go to go have to do?
JOHN CLARKE: They’re going to have to bail them out.
BRYAN DAWE: Correct. Where are they getting the money to do that Roger?
JOHN CLARKE: That is a good question. I don’t know the answer to that one. (laughs)
Research Credit: dagobaz
IG Report: Methamphetamine Use by Interior Department Staff
May 25th, 2010Via: AP:
Staff members at an agency that oversees offshore drilling accepted tickets to sports events, lunches and other gifts from oil and gas companies and used government computers to view pornography, according to an Interior Department report alleging a culture of cronyism between regulators and the industry.
In at least one case, an inspector for the Minerals Management Service admitted using crystal methamphetamine and said he might have been under the influence of the drug the next day at work, according to the report by the acting inspector general of the Interior Department.
The report cites a variety of violations of federal regulations and ethics rules at the agency’s Louisiana office. Previous inspector general investigations have focused on inappropriate behavior by the royalty-collection staff in the agency’s Denver office.
The report adds to the climate of frustration and criticism facing the Obama administration in the monthlong oil spill disaster in the Gulf of Mexico, although it covers actions before the spill. Millions of gallons of oil are gushing into the Gulf, endangering wildlife and the livelihoods of fishermen, as scrutiny intensifies on a lax regulatory climate.
The report began as a routine investigation, the acting inspector general, Mary Kendall, said in a cover letter to Interior Secretary Ken Salazar, whose department includes the agency.
“Unfortunately, given the events of April 20 of this year, this report had become anything but routine, and I feel compelled to release it now,” she wrote.
Her biggest concern is the ease with which minerals agency employees move between industry and government, Kendall said. While no specifics were included in the report, “we discovered that the individuals involved in the fraternizing and gift exchange — both government and industry — have often known one another since childhood,” Kendall said.
Their relationships took precedence over their jobs, Kendall said.
The report follows a 2007 investigation that revealed what then-Inspector General Earl Devaney called a “culture of ethical failure” and conflicts of interest at the minerals agency.


