The Calorie Economy

Calories - The Currency of All Economies - by Thomas J. Elpel - www.greenuniversity.com - (Below is a synopsis - Visit link to read the entire article on the theoretical basis of the real economy).

Most economists rely on computer printouts of numerical data for their financial planning. By comparing one series of digits with another they can find the immediate trends in the economy and take advantage of those trends. To most people that seems normal. To me it always was, and still is, artificial. I have always wanted to help both people and the environment, and I learned at an early age that knowledge of the economy could be one tool to reach that end. However, I wanted more than just the knowledge of how to generate a positive series of numbers. I was looking for something bigger. I was searching for universal truths. I wanted knowledge about the economy that was constant from year to year, from culture to culture. I wanted knowledge that would be useful to a poor person or a rich person, in our culture, or in any culture. The truths about economics that I found were not in the New York Stock Exchange, but in anthropology and nature...

The calorie is a unit of measuring energy. Specifically, it is the amount of heat required to raise the temperature of one gram of water one degree Celsius. The caloric value of food is measured by igniting the food to find out how much heat it releases. As human beings, you and I require approximately 2,500 calories of energy to fuel us through each day. The calories we consume come from the sun. Plants convert sunlight into food that we and other animals can eat. Petroleum and coal also contain calories of solar energy, but that energy was captured by plants millions of years ago. The calories from these and other sources are ultimately the basis of all economies...

Money is simply a token we use today to represent calories of energy. Strictly speaking, we use it to represent human energy, or human productivity. Each of us produces goods or services to exchange to others for the goods and services we need. We put a great deal of energy into the goods and services we provide, as does everyone else. Money represents that energy and makes it easy for us to swap our energies. I can make a product and sell it, and I get paid for the energy I put into it. I can then take that money and buy a product from another person. I give them my money to compensate them for their energy. Ultimately I have exchanged my energy for theirs, and money is just something that makes the exchange process easier. For simplicity we can say that money is a token that represents calories of human energy or labor...

Ultimately, all aspects of our economy are tied to calories, including inflation, insurance, stocks and bonds, and interest. Consider, for example, insurance. Insurance in a primitive economy meant having neighbors who would share some of their calories with you if you had an accident, and you would do the same for them in their time of need. Insurance is similar today. We all pay calories into a common fund, and any person or family that is in need draws from the fund. For example, if a person's house is destroyed then that person withdraws enough calories from the fund to rebuild the house. Having built our own house, I can tell you that you expend a lot of calories building a house. So the person whose home is destroyed withdraws a large amount of calories form the common fund to fuel the carpenters as they rebuild the house, plus enough extra for the carpenters to exchange for the goods they need. There is only one main difference between insurance in our economy and insurance in past economies. In past economies every member produced calories and contributed them to the insurance pool. In our economy today the insurance agents do not produce for the pool. We sustain them with a share of the calories we produce, and they in return serve us by overseeing the pool of calories and by doling them out to those in need...

The Hound: I have heard it expressed by others that we are headed into a period that will focus on the Calorie Economy. Food as a commodity is becoming from one perspective more expensive and from another perspective more valuable. This is the reason that I am urging people to focus on sustainability. We are going to start focusing more on the issues of the calorie economy and ways that you can take advantage of that. And over time you can see that this blog has addressed these very issues through articles such as:

The Possibilities of Urban Gardening,  
Garden Time - Ideas for the coming season, 
Agriburbia© possibilities in Catawba County, 
The Food Crisis -- February 19, 2011, 
Does anyone notice that food prices are rising?, 
Houndvision: Building a Raised Bed Garden - Ready to plant today,  
Icelandic volcano displays our vulnerability related to the World Economy,  
Last Frost Date - April 15 - Time to start planting, 
My Scientific Garden 2010.

I am far from what one would term a "Greenie." As a conservative, I do believe in conservation. Look all around you and you see waste. We have over the years based our entire economy on consumerism, consumption, convenience, and disposability. This accelerated in the 1980s and 1990s into a rat race lifestyle where people decided that working all of the time and paying for contrived material conveniences was good. People thought that this was the way to get ahead. Many people have very little to show for those efforts.

I believe that we must get back to basics in order to survive. We need to get off the Corporate Energy Grid. Now I am not saying that one needs to completely abandon the grid, but this addiction to everything offered as convenience and disposability will get you nowhere and leaves you very vulnerable. This is a cycle of dependence that will increase your odds of bankruptcy and/or an early grave. Interdependence is important, but we must not forgo the independent nature in which the nation was founded upon. It is time to get back to basics.

The Possibilities of Urban Gardening

AMERICA REVEALED - Urban Farming - PBS

Meet the ordinary people who bring food production back to basics in this clip from AMERICA REVEALED "Food Machine." New four-part series premieres Wednesday, April 11, 10/9c on PBS.

Urban Farming: Hydroponics in the City

Keeping agriculture sustainable increasingly means keeping it local. Besides the environmental benefit of reducing reliance on fossil-fuel guzzling transportation, eating local food is a more seasonal and often healthier experience. With concern about food security growing, it might turn out to be safer, too. The folks in charge of the Science Barge, a new urban farming experiment in New York, are bringing local food production closer than ever. In this video Vanessa Rae learns about the floating greenhouse facility, which is designed as a demonstration of how urban space, especially rooftop space in big cities like New York, can be used to efficiently produce food. Self-powered by solar panels, wind turbines, and a biodiesel generator, the Science Barge uses state of the art computer technology and an agricultural technique called hydroponics to grow fruits and veggies using much less water and space than field farming. Watch out, city slickers. Farm country is coming to your neighborhood.

Economic Stories of Relevance in Today's World -- April 8, 2012

NFP Big Miss: 120K, Expectations 205K, Unemployment 8.2%, "Not In Labor Force" At New All Time High - Zero Hedge - Tyler Durden - April 8, 2012 - March NFP big miss at just 120K. Unemployment rate declines from 8.3% to 8.2%. Futures slide, for at least a few minutes before the NEW QE TM rumor starts spreading. The household survey actually posted a decline in March from 142,065 to 142,034. Considering Birth Death added 90K to the NSA number, the actual number was almost unchanged. And as always, as we predicted when Goldman hiked its NFP forecast yesterday from 175K to 200K saying "if Goldman's recent predictive track record is any indication, tomorrow's NFP will be a disaster", Goldie once again skewers everyone. Finally, Joe LaVorgna's +250,000 forecast was just 100% off... as usual.                        The unemployment rate drops to 8.2% for one simple reason: the number of people not in the labor force is back to all time highs: 87,897,000.

US Needs To Generate 262K Jobs Each Month To Get Back To Breakeven - Zero Hedge - Tyler Durden - 04/06/2012 - This is the latest tally: since the start of the Second Great Depression, the US has lost a total of 5.2 million nonfarm payroll jobs, beginning with 138 million jobs in December 2007, and printing at 132.8 million as of 90 minutes ago. So far so good. The problem, however is that the denominator in the equation is not fixed, and as everyone knows the US labor force, despite the ridiculous BLS data fudging, is growing in line with population, albeit at a slower pace. According to all non-partisan budget forecasters, each month the labor force should be adding 90,000 people. Which in turn means that since December 2007, the labor force has really grown by 4.6 million. Adding these two together leads to a 10 million job deficit. So what has to happen for these 10 million to get promptly put back into jobs, and for America to get back to the ~5% unemployment rate it boasted just as the credit bubble peaked? Nothing too crazy: the country just has to create 262,000 jobs every month for the remainder of Obama's first, and now, by the looks of it, second term too. We are quite confident he can handle it.

Jobs Report: The Beginning of a Disappointing Trend? - Yahoo Finance - Contrary Indicator - Daniel Gross - April 6, 2012 - It's a good thing the stock market isn't open Friday. If it were, the disappointing March employment report, a rare piece of negative economic news this spring, would likely have caused stocks to nosedive. As it was, U.S. stock futures (which were open) slipped, the dollar is falling and Treasury prices are spiking on the report.                The Bureau of Labor Statistics said the U.S. economy added only 120,000 payroll jobs in March, a sharp decline from recent jobs growth. The unemployment rate slipped to 8.2 percent from 8.3 percent in February, but that's largely because the workforce declined. In short, this is the type of report that is more typical of an economy beginning to emerge from recession than one that has been growing for nearly three years.               The addition of 120,000 jobs represents the 15^th straight month in which jobs were added. Compared with March 2011, there were 1.9 million more payroll jobs in the U.S. in March 2012. But this represents a sharp slowdown from the pace of job creation. In each of the previous three months, the economy had added more than 200,000 positions. As is typical, the Bureau of Labor Statistics also revised the job creation for previously reported months. The January figure was revised from a gain of 284,000 to a gain of 275,000, while the February figure was revised up from 227,000 jobs created to 240,000. Looking back, BLS discovered an extra 4,000 jobs that it hadn't detected last month — a negligible figure.



World food prices rise further, raising fears of unrest - Reuters - Svetlana Kovalyova and Veronica Brown - April 5, 2012 - Global food prices rose in March for a third straight month with more hikes to come, the UN's food agency said on Thursday, adding to fears of hunger and a new wave of social unrest in poor countries.               Record high prices for staple foods last year were one of the main factors that contributed to the Arab Spring uprisings in the Middle East and North Africa, as well as bread riots in other parts of the world.               The cost of food has risen again this year after coming down from a February 2011 record peak.


Higher gas prices could cause wider economic slowdown, economist says - Financial Post (Canada) - Jameson Berkow - April 4, 2012 - Gasoline prices, already near record highs of $1.40 per litre ($5.425/gallon) this week, could rise further if Middle East tensions escalate, further dampening the economic outlook.                   Oil prices are expected to remain relatively steady at about US$100 per barrel for the next year, which Mr. Guatieri said would either stabilize gas prices or even cause them to decline a little. However, he cautioned there was a “not insignificant” risk of the cost jumping another 25% (a 30% cumulative increase from last year) if tensions between the West and Iran continue to escalate.            A disruption in shipments through the Strait of Hormuz could push oil prices back up to their 2008 record highs of US$147 per barrel. Coupled with widespread refinery closures along the U.S. East Coast — more than one-third of refining capacity in the region has gone offline in recent months and Sunoco Inc. has threatened to close its massive Philadelphia facility this summer — and Mr. Guatieri believes Canada’s economic growth could slow to about 1.5% between this year and next, a full percentage point below BMO’s previous 2.5% growth forecast.


'Massive Wealth Destruction' Is About to Hit Investors: Marc Faber - CNBC - Jeff Cox - April 2, 2012 - Runaway government debts have triggered uncontrolled money printing that in turn will lead to inflation that will decimate portfolios, according to the latest forecast from "Dr. Doom" Marc Faber. Investors, particularly those in the "well-to-do" category, could lose about half their total wealth in the next few years as the consequences pile up from global government debt problems, Faber, the author of the Gloom Boom & Doom Report, said on CNBC. Efforts to stem the debt problems have seen the Federal Reserve expand its balance sheet to nearly $3 trillion and other central banks implement aggressive liquidity programs as well, which Faber sees producing devastating inflation as well as other consequences.

The $15 Trillion Party - The Economic Collapse Blog

45 Signs That America Will Soon Be A Nation With A Very Tiny Elite And The Rest Of Us Will Be Poor - The End of the American Dream Blog - April 3, 2012


U.S. Corporate Tax Rate Consequences - Infowars.com - James Hall - April 4, 2012 - Now that Japan lowered its own taxes, the U.S. stands on top with the dubious distinction of having the highest corporate tax rates. Claims that, when you consider all the tax loopholes, subsidies, deductions and tricks, the effective rate is not really the 35% level seem less reassuring. However, if you view any tax policy that focuses upon revenue collection, you miss the entire significance of the dynamics in trade. The slogan “Free Trade” applied in real terms, means capitulation of domestic production and prosperity for the sake of maximum international return on equity. In essence, the global corporatist supersedes the home domicile country for the joy of worldwide plunder. The United States runs away from these hard cold consequences out of some distorted motivation to become a programmed society, connected to Asian computer devices that broadcast the social destructive culture, while destroying the work ethic. Not all countries admire or model their economies accordingly. Reflected in their internal tax policies, there is a sharp contrast to that of the Uncle Sam stamp – No Longer Made in the USA. As the country weakens and the industrial foundations crumble, the excuses multiply. What do other countries understand that evades the mindset of those who cannot grasp the supply and demand equation?

The American Legislative Exchange Council (for Corporate Interests) - Silence DoGood

The American Legislative Exchange Council or ALEC for short.  Has anyone else out there heard of this group?  Yeah, me either.  I’m not the most politically savvy person in the world although I stay about neck deep in it most of the time, but today is the first time I’ve ever ran across this particular entity.  An eye opening discovery that could only be likened to driving a transfer truck into the side of an aircraft carrier at 70 miles an hour; it’ll get your attention.

It seems that ALEC is comprised of member corporations who draft legislation and then forward it to friendly legislators in each of the several states for those legislators to introduce and become future law in those states.  I think that bears repeating.  This is an organization of corporations partnered with legislators for the sole purpose of drafting legislation for the sole purpose of having that legislation turned into law in the respective states.  Are you starting to feel cold, lonely, and sober?

Reducing this to simplest terms, we have the best government money can buy.  I’ve stated that very phrase here on several occasions and seen it written by others as well.  Now, well, we seem to have proof of that premise.  This likewise brings an entire host of other premises into the fore.  States’ rights first coming to mind.  ALEC is active in every state in the nation.  Don’t you think it mildly convenient that ALEC counts among its members some of the largest and most lucrative corporations active in America and exists for the sole purpose of having laws drafted for the benefit of their members.  I keep emphasizing those points it seems, but this is insanity hiding in the open and thumbing its nose at the people.  Talk about your prime tactic of divide and conquer under the guise of independence and a constitutional ideal of a weak central government.  These people have 50 different ways to manipulate their way into prominence.  They buy influence through the legislators we elect to get what it is they want.  Influence and law that is favorable to the corporation and not to the people. It is easier in this regard to negotiate and deal with 50 separate legislatures than a single strong central entity with strong laws that prevent such action from occurring.  Oh sure, “we’re working hard to create jobs.”  And working even harder to have every law that favors the worker overturned and enact legislation to gain every possible advantage and favor they can to feed and propel this mindless unfeeling entity known as corporation.  Maybe Mitt Romney isn’t wrong in that regard; corporations are people.  It eats, it consumes, it exudes greed and self-indulgence.  A multi-layered sociopath that exists only for the perpetuation of self.  A cannibal that devours and consumes those weaker than itself and absorbs others comparable to itself, morphing into a monolith of dominance.

Looking at the list of legislators friendly to ALEC in North Carolina, I’m quite delighted to say that none of the local contingent are affiliated with this organization although their political affiliation figures prominently with ALEC association.  Not exclusive affiliation, but it’s not far from being so.  The majority of State Representatives and Senators are Republicans with a smattering of Democrats thrown in.  I know, I’m just anti Republican.  Explain the predominance to me controlling for the political affiliation so as to make it irrelevant and believable.  I’ll listen.

More proof is required?  Ok.  Many of us have seen this new television campaign called “Common Sense Answers for NC” where this lady is on television talking about how the new legislature halted a tax increase, balanced the budget, funded 2,000 new teacher positions.  Have you looked at who is behind this campaign?  You’ve got to follow the money always.  Reading the fine print, you find that ads are paid for by the “Americans for Prosperity Foundation.”  Who are they?  They are a tax exempt organization with a stated purpose of “not supporting or opposing any specific legislation, but to inform the general public about public policy issues.”  Well, you dig into “Americans for Prosperity Foundation” and you discover that the foundation was formed by David Koch of Koch Industries.  It is a GOP/Conservative based foundation.  Now, flip on over to the member corporations of ALEC and there you have Koch Industries.  TV ads to blind you, brainwash you, deceive you to what is being done in your legislature.  David Koch has no interest in you or me.  He has every interest in amassing more wealth for himself and his corporate dynasty.  That’s the reality.

I’ve stated many times here that I’m not entirely anti-corporation.  I’m not entirely pro-labor, even though I do lean more that way since I think its people that make or break any organization and that no entity is greater than the sum of its parts.  Certainly you could argue that these corporations draft legislation to benefit the people who work for them.  You can try.  Look at who or what benefits from every piece of legislation that these fine people try to pass.  Not the spin, not what the “Americans for Prosperity” propagandists want you to believe, but what is actually provided for in each piece of legislation.

Below are the links, for those of you that may doubt the content.  You can read it for yourself.

http://endthelie.com/2012/04/06/more-proof-activism-works-kraft-coca-cola-and-pepsi-all-say-they-will-leave-alec/#axzz1rGdDhNEz

http://www.sourcewatch.org/index.php?title=ALEC_Corporations

http://www.sourcewatch.org/index.php?title=ALEC_Politicians

http://sourcewatch.org/index.php?title=ALEC_State_Chairmen

http://www.prwatch.org/news/2011/07/10887/cmd-special-report-alecs-funding-and-spending

http://www.ncpolicywatch.com/2012/03/20/real-solutions-require-real-facts/

http://ncrealsolutions.com/

http://www.factcheck.org/2010/08/americans-for-prosperity/

The possibility of a World Physical Breakdown Crisis

To Concerned Citizen: I cannot submit the information that you sent me at this time. I have to have verification and that will take time to accrue. I appreciate the information, because it does paint a picture and gives further context to the issues. The problem is that I don't know the rules for all of these practices at this time and it will take time to research and to get advice from legal authorities. I am not saying that the trail ends here. All I am saying is there is no need to be redundant. Everyone understood the picture that was painted. If you would like to convey further information and subject material to me, please feel free to do so.

The Hound: Warren Pollock who is a contact and someone that I pay attention to in regards to "Big Picture" trends believes that we are moving away from the Financial Breakdown Crisis into a Physical Breakdown Crisis. He has written a document that goes into the subject material and I am reposting it here on the Hickory Hound. Mr. Pollock was an executive on Wall Street who was involved in creating the Programmed Computerized Model of Trading that has basically taken over all commodity markets today. The Derivatives market hinges on this form of trading. It is what has our current financial situation perilously close to tanking. The current market value is only supported by inflation and program trading. Remember the flash crash on May 6, 2010 when the DJIA fell 998.5 points in a matter of minutes or the DJIA 778 point crash of September 28, 2008? Whatever initiates such cascading negative momentum, just remember it can happen and when it does there is no guarantee that it will stop the next time. If it does not stop, then we move to the physical crisis talked about below.

Through the Breakdown Crisis - Warren E. Pollock