Showing posts with label insolvency. Show all posts
Showing posts with label insolvency. Show all posts

Thursday, May 22, 2008

Prognosticating recap

The news the past couple of days has included a few articles about some farmers in Tennessee who have switched to mule-power for their farming needs. A Google news search for '+farmer +mules' yields 49 news results. I wonder how many news results there will be for those search terms in two months, after oil hits $200/barrel.

Farmer Trades Tractor For Mule Power
"McMinnville, Tenn. - A Middle Tennessee farmer is trading his tractor for another form of horsepower. Warren County farmer Danny Raymond recently bought two mules, Molly and Dolly. The mules will help rake hay, mow, and cultivate corn. Raymond said high fuel prices forced him to make the switch. "Oh it's been really tough. I mean you got your gas prices," he said. "Then gas prices cause the price of fertilizer to go up. It just makes more sense," he said about switching to mule power."

Searching for '+farmer +horses +plow' yields 12 news results. Here is one:

Horses help local farmers cut costs

"Jeff Johns had the horses. He had land that needed to be plowed. And he had worries that rising fuel costs would eat into his already thin profit margin. So he's doing what farmers did long before the tractor came along -- he's using his two draft horses to power a plow. And he's loving every minute of it."
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Exactly two months ago I posted a blog entry that noted indicators of an imminent unraveling of the normal cycle of things. The bank insolvency issue (not a problem that has gone away just because it's sunk off the news cycles), higher fuel costs, increasingly staggered food and commodity deliveries...will all accelerate in the coming months. Eventually, there will be a break point, I'd written, when those who failed to spot the inevitable and did not turn to simpler ways will be down on their luck, while the Amish will be in ascendancy. Why? Because we do not know how to generate our own power, live without electricity, farm using simple methods (successful farming means not going hungry), make soap, dip candles, kill a hog, or perform a myriad of other hand tasks. But the Amish do. They always have. For the Amish, no-technology and fuel free farming has been the only way. Who ya gonna call...when the grocery store is empty and we can't get a 1400 mile salad any more? The Amish/Mennonite community farmer's market, and other Christian-community living farms, that's who.

I wrote:
March 22, 2008:
"The US is now the world's largest debtor nation, and for a country with the world's largest economy, if (when) we default, the world economy comes with it. The cycle of things will stop. I don't know how to build a home, make a tool, grow some food, coordinate with my neighbors, create fire, or use a horse for transportation. But the Amish do."

Listen to the Watchman:

Ezekiel 33:3-6
If when he seeth the sword come upon the land, he blow the trumpet, and warn the people;
Then whosoever heareth the sound of the trumpet, and taketh not warning; if the sword come, and take him away, his blood shall be upon his own head.

Jeremiah 51
12Set up the standard upon the walls of Babylon, make the watch strong, set up the watchmen, prepare the ambushes:

The day of the Lord will soon come. Selah

Wednesday, May 21, 2008

Good among the not so good

Ted Kennedy has an inoperable, malignant brain tumor. That's awful. God bless you and I hope you get well real soon.

I heard somewhere (I think David Letterman) that Hillary Clinton's campaign at this point is like the world's most expensive fantasy camp. To the left is a summary of a Hillary surrogate's explanation of how Hillary can become President with the amount of races and delegates remaining. Actually, the picture is from a page explaining how the electors work.

As of April 21 2008 the presidential campaign's total receipts, including donations and loans from the three remaining major candidates were:

Obama: 240M
Clinton: 195M
McCain: 80M

It is extremely expensive to run for President. I don't think this is what the framers had in mind when they designed the Republic. Think of how all that money could help Americans in need, pay down our debt, or just plain put into non-borrowed reserves. George Ure, an economist at UrbanSurvival.com wrote this today: "the amount of money the banks have in reserve that is non-borrowed is at a fifty year low? In fact in 4 months since it entered negative territory (for the only time in the 50 years on record) it has exceeded 50 years of positive values by 50% on the negative side? Does this not mean that the banks are not only insolvent but underwater more than they were ever positive?"

The question mark punctuation does not indicate that his questions are rhetorical, they are there to infer incredulity on the part of the writer. The word aghast comes to mind. Also the comparison of the economy to the Hindenburg...thanks George, for being Debbie Downer today. Though facts is facts and it's good to know them and I appreciate the work on that website.

I am off to a luncheon with the team members with whom I worked in the Good News Club at Comer Elementary School. We're to eat at Dos Palmas in Athens on a gloriously humid-free, breeezy day! Good folks, good eats, good scenery, life is good!