Food Price Battles...

I'm in Greenville, South Carolina today for a SmartCode OnSite work session, but prior to starting, I found this article to be very interesting on the growing price battle between food makers and food providers:

Food makers who raised prices repeatedly to fight soaring commodity costs in recent years are now battling with retailers to hold onto those increases as the global economy grinds to a standstill.

Many are touting the relative value of their products versus eating out, promoting their products together with retailers' own brands and holding extensive conversations to let retailers know that in some cases their costs remain high even though many commodity prices have fallen, industry executives and analysts said.

"We're all trying to deal with a difficult economic reality where consumers are getting more demanding and competition is increasing to meet the needs of consumers, so it's just more pressurized," Campbell Soup Co (CPB.N) Chief Executive Douglas Conant said in an interview.

Two Important Articles...

Please carefully note this article:

Part of the problem is that the U.S. is "overstored," as retail analyst Jennifer Black and even store officials often say. Indeed, few can argue that the more than 200 million square feet of retail space added each year since 2004 was truly needed. J.C. Penney CEO Mike Ullman, chairman of the National Retail Federation, estimates that there is at least 100 million more square feet of retail space than the market needs.

And then this article:

The sums needed are beyond the limits of the IMF, which has already bailed out Hungary, Ukraine, Latvia, Belarus, Iceland, and Pakistan – and Turkey next – and is fast exhausting its own $200bn (€155bn) reserve. We are nearing the point where the IMF may have to print money for the world, using arcane powers to issue Special Drawing Rights.

Its $16bn rescue of Ukraine has unravelled. The country – facing a 12pc contraction in GDP after the collapse of steel prices – is hurtling towards default, leaving Unicredit, Raffeisen and ING in the lurch. Pakistan wants another $7.6bn. Latvia's central bank governor has declared his economy "clinically dead" after it shrank 10.5pc in the fourth quarter. Protesters have smashed the treasury and stormed parliament.

"This is much worse than the East Asia crisis in the 1990s," said Lars Christensen, at Danske Bank.

Both provide very stark yet very realistic warnings. Again, we must re-allocate wasted capacity toward useful and sustainable capacity. There will be less and, therefore, that which remains must be better.

Montgomery Mayoral Debate...

...on Growth and Development Issues.

The Hampstead Institute is presenting this debate which will convene at 7pm in Flowers Hall on the campus of Huntingdon College.

The debate is this Tuesday. We hope to see you there.

More Than a Trillion Dollar Problem?

If European Banks potentially have multi-trillions in toxic assets, one wonders what U.S. Banks may hold in their secret, off the book caches.

Watch this story carefully:

European Commission officials have estimated that “impaired assets” may amount to 44pc of EU bank balance sheets. The Commission estimates that so-called financial instruments in the ‘trading book’ total £12.3 trillion (13.7 trillion euros), equivalent to about 33pc of EU bank balance sheets.

In addition, so-called 'available for sale instruments' worth £4trillion (4.5 trillion euros), or 11pc of balance sheets, are also added by the Commission to arrive at the headline figure of £16.3 trillion.

Another Green Cleaning Option...

Bayes Premium Cleaners offer a wide variety of indoor and outdoor cleaners for houses and cars.

Daily Sprawl likes them because they work well and because several of their products have recently received the EPA's Design for the Enviroment label.

Plus, they are non-toxic and biodegradable.

So, you can clean with a piece of mind to boot...

Video of the Year Nominee...

Classic. Very, very classic.

(Thanks to Nathan N. for the find).

Another Green Option...

...this time we recommend the Kombucha Wonder Drink--a great option for a natural health and energy drink. The antioxidants and vitamins give a great boost with fantastic flavors, too...

Transect-Based Planning

Here's an interesting thread from a discussion forum on the issue of transect-based planning.

Included in the thread is an equally interesting and useful YouTube video discussing some of the issues.

We recommend both.

"Dubai Is Emptying Out"

Remember not long ago when Dubai was concerned the shiny light of prosperity among a growing world of financial gloom?

Well, that shine is gaining some serious luster according to this article from the UK TimesOnline:

For many expatriate workers in Dubai it was the ultimate symbol of their tax-free wealth: a luxurious car that few could have afforded on the money they earned at home.

Now, faced with crippling debts as a result of their high living and Dubai’s fading fortunes, many expatriates are abandoning their cars at the airport and fleeing home rather than risk jail for defaulting on loans.

Police have found more than 3,000 cars outside Dubai’s international airport in recent months. Most of the cars – four-wheel drives, saloons and “a few” Mercedes – had keys left in the ignition.

Some had used-to-the-limit credit cards in the glove box. Others had notes of apology attached to the windscreen.

“Every day we find more and more cars,” said one senior airport security official, who did not want to be named. “Christmas was the worst – we found more than two dozen on a single day.”

Surely, this is a first. Drive to the airport, skip the short term and long term parking lots and, instead, leave the Benzer in the forever term parking lot. With the max'd out credit cards next to the keys (nice touch).

Wethinks that Mr. Perot might be hearing a new giant sucking sound out of that particular desert kingdom real soon...

A Sign of Things to Come?

Congressman Ackerman appears to be quite upset. And for good reason.

Another Green Option...

Looking for great organic and fair trade coffee from a small business to boot?

If so, we've tested the options from Backcountry Coffee Roasters and found them to be fantastic.

Check out the website of this sustainable-focused company right here.

Disney World Advocates Commuter Rail?

In addition to sprawl-related blogging, writing, and research, I also write columns covering the amusement industry. Here is one set of examples.

I note that because the two worlds recently collided a bit when Disney World's President, Meg Crofton, wrote an op-ed in the Orlando Sentinel voicing support for the proposed SunRail commuter rail line in Orlando.

This is significant for several reasons such as the fact that--to varying degrees--both the government and Disney have been hesitant in the past to support various commuter and/or light rail efforts.

This very clear and open support of SunRail by Disney will be interesting to follow. After all, when the region's largest employer (over 50k employees) comes out for something--that's a pretty big boost to the project's prospects.

Back From...

...the Hampstead Institute Jim Kunstler talk and the SmartCode Advanced conference--both in Montgomery last week.

Overall, both were fantastic events. Spending much of the day with Kunstler tooling around town was a very curious experience.

Anyhow, this was waiting for me when I got back: Japan, Game Over?

While one might say that we are not Japan, our economies are closely and intricately linked in many ways. As a result, could Japan be America's canary in the coal mine?

Stay tuned...

Is This Really Change?

I'm certainly not going to reflexively bash our new president. But, his appointment of Tim Geithner to the position of Treasury Secretary continues to get worse and worse.

The Naked Capitalism blog does an excellent job chronicling how Geithner is exactly the wrong type of candidate we need right now.

And Now Some Daily Sprawl...

...humor: from CNBC.com on how allegedly smart money managers really do dumb things when trying to fake their own death.

Nothing like a financial industry meltdown to bring out the fake dead people:

Another fugitive, suicide-faking fraudster is in police custody and all I can say is — I'm appalled!

Rule No.1 of Faking Your Death: Do NOT choose a getaway vehicle that will call attention to you.

Wall Street guys like to make you think they're the smartest guys in the room. And they talk a lot of trash that money management is risky business and if you can't run with the big dogs, you'd better get your assets back on the porch.

And then they deliver these ridiculous fake suicides like Florida's Art Nadel, who left a suicide note for his wife and then vanished for a month before turning himself in to police.

For such "smart" guys, these fake suicides are getting ridiculous!

The previous one-hit wonder, Marcus Schrencker, gets points for style — faking a plane crash, parachuting out and making a getaway on a motorcycle.

UPDATE: Dealbreaker.com offers it advice on faking your own death with some moxie and success.

An Excellent Coffee Alternative...

...as someone who runs into heartburn and acid reflux now and then, coffee and its caffeine plus high acid can be real problems.

That's why I've been searching for a hot coffee type drink that is low in acid and has no caffeine.

Well, the search has found a great option--Teeccino.

Not only is it caff-free with very low acid, it also tastes fantastic and even has a host of healthy ingredients.

Daily Sprawl is now very "pro-Teeccino"!

Jim Kunstler Comes to Montgomery...

...for his first ever public presentation. The event is part of the Hampstead Institute Speaker Series. Click here to learn more.

We hope to see you there at this free event on Thursday, January 29th at the Montgomery Museum of Fine Arts.

A New Phrase for 2009...

"Man, that guy really pulled a Geithner!" As in, the new Treasury Secretary Timothy Geithner.

If you haven't been following things, Mr. Geithner--who as SecTreas will head the IRS--failed to pay several years worth of various taxes to the IRS. Apparently, cued into this fact during his background check by the Obama Transition Team, Geithner paid most of the back taxes just before he was nominated by President Obama.

Add to this fact that Geithner was one of the Three Musketeers of the Bailout (along with Fed Head Bernanke and former SecTrea Paulson) and one wonders why in the world would the Obama Administration want Geithner anywhere near any economic activity that mattered.

But, alas, it gets better as during his questioning yesterday in his confirmation hearing before Congress, Mr. Geithner found yet another person to blame for his tax problems: TurboTax software.

Yep, that's right. The proposed Secretary of the Treasury Timothy Geithner is pointing fingers at a piece of computer software for his tax failures.

Outstanding. Not even officially on the job yet and this nominee is starting to make Hank Paulson look more competent every day.

President Obama, do the right thing: ditch Geithner.

Should Merrill Lynch Be Allowed to...

...so blatantly undermine and even defraud taxpayers.

This story absolutely sickens me.

It perfectly represents the very type of underhanded greed that advanced many of the current financial industry problems and failures.

The Treasury Department and Obama Administration should move boldly in addressing this travesty and refuse to allow either Merrill or BoA any access to federal taxpayer monies until these bonuses are revoked (and by the way, bonuses for what? screwing up your decades-old company? geez.)

UPDATE: New York's AG (and Senator-seeker) Andrew Cuomo will investigate these bonuses. Maybe disrupting this fraud has some traction after all...

Another Natural and Organic Snack Alternative...

Try Funky Monkey--they have some excellent and healthier snack alternatives than typical HFCS laden "fruit snacks".

One word of semi-warning though: their website has some serious dance-inducing music when first opened. Lower your computer's volume or your colleagues might wonder what's the office party all about...

The biggest unknown is when or if shoppers will ever resume spending the way they did when the housing market was booming, credit was easy and jobs were more plentiful.

A great quote from this AP article--one which really nails the key issue.

By the way, the answer to the implied question embedded in that quote is "No".

The Mess in California...

If there ever was a state budget that demonstrates the resounding thumps of the current economic woes, California is the poster child right now.

Read this Reuters article to see why.

UPDATE: This article from the San Jose Mercury News puts all things California budget-wise in an even more stark setting. Ouch.

An Alternative to Red Wine...

We often read about the health benefits that red wine offers--especially when it comes to a healthier heart.

Unfortunately, some of those benefits can be offset by potential problems resulting from the alcohol content of the wine.

That's what the Embodi drink is trying to strike a balance between: the health benefits of red wine without the alcohol content.

We've tested the product for an upcoming magazine article and it was fantastic.

An Open Letter...A Very Interesting One...

Mish Shedlock does some of the best financial analysis anywhere on his Global Economic Analysis blog. Today he's posted a very interesting "Open Letter" to the new President.

Read it here.

Ever Heard of Badger Balm?

If not, then you need to check out their website at www.badgerbalm.com.

We've been reviewing several of their products for an upcoming Urban Green article and have found them to be fantastic natural options to the typical OTC drugs that people often first resort to.

Daily Sprawl recommends badger balm.