Coal is getting to be worth less than dirt

Coal is having a hard time lately. U.S. power plants are switching to natural gas, environmental restrictions are kicking in, and the industry is being derided as the world’s No. 1 climate criminal. Prices have crashed, sure, but for a real sense of coal’s diminishing prospects, check out what’s happening in the bond market.

Bonds are where coal companies turn to raise money for such things as new mines and environmental cleanups. But investors are increasingly reluctant to lend to them. Coal bond prices tumbled 17 percent in the second quarter, according to an analysis by Bloomberg Intelligence. It’s the fourth consecutive quarter of price declines and the worst performance of any industry group by a long shot.

Bonds fluctuate less than stocks, because the payoff is fixed and pretty much guaranteed as long as the borrower remains solvent. A 17 percent decline is huge, and it happened at a time when other energy bonds—oil and gas—were rising. Three of America’s biggest coal producers had the worst-performing bonds for the quarter:

Alpha Natural Resources: -70 percent
Peabody: -40 percent
Arch: -30 percent


The map shows coal plants in 2010 that may be headed for retirement. Blue circles represent plants that will be shuttered by 2020, while yellow will convert to gas, and red have undetermined futures.

About 17 percent of U.S. coal-fired power generation will disappear over the next few years, according to an analysis by Bloomberg New Energy Finance (BNEF). Obstacles include age, the abundance of cheap natural gas, and new EPA rules to cut pollution…

Even China, the world’s biggest consumer of coal, wants to be rid of it…While China’s electricity demand will soar in the coming decades, its coal use will remain relatively flat, peaking by 2030 and then declining, according to BNEF. The pollution is too thick and the alternatives too cheap for coal to flourish…

But even setting aside the environmental and health issues, renewables are on a trajectory to outcompete fossil fuels, starting with coal. Between now and 2040, two-thirds of the money spent on adding new electricity capacity worldwide will be spent on renewables, according to BNEF…

Pigs like the Koch Bros and their bed-buddies ExxonMobil et al are putting their last hopes into the Republican Party. Unlike their peers in archaic monarchies like Saudi Arabia, they have to confront minimal papier mache democracies like the United States. Conservatives like Republicans or Blue Dog Democrats needn’t involve themselves with science to decide policy. Their only decision is whether they require a new wheelbarrow to carry away the dollar$ on offer from the barons of fossil fuel – or the old one is adequate.

It only remains for the crowd in charge of the Democrat Party to decide if they will listen to reason, evidence-based science and concern for future generations of our species. For some that’s still a difficult questions.

There is no Republican ideology – only dogma

Americans work longer hours than their counterparts in just about every other wealthy country; we are known, among those who study such things, as the “no-vacation nation.” According to a 2009 study, full-time U.S. workers put in almost 30 percent more hours over the course of a year than their German counterparts, largely because they had only half as many weeks of paid leave. Not surprisingly, work-life balance is a big problem for many people.

But Jeb Bush — who is still attempting to justify his ludicrous claim that he can double our rate of economic growth — says that Americans “need to work longer hours and through their productivity gain more income for their families.”

…The real source of his remark was the “nation of takers” dogma that has taken over conservative circles in recent years — the insistence that a large number of Americans, white as well as black, are choosing not to work, because they can live lives of leisure thanks to government programs.

You see this laziness dogma everywhere on the right. It was the hidden background to Mitt Romney’s infamous 47 percent remark. It underlay the furious attacks on unemployment benefits at a time of mass unemployment and on food stamps when they provided a vital lifeline for tens of millions of Americans. It drives claims that many, if not most, workers receiving disability payments are malingerers — “Over half of the people on disability are either anxious or their back hurts,” says Senator Rand Paul.

It all adds up to a vision of the world in which the biggest problem facing America is that we’re too nice to fellow citizens facing hardship. And the appeal of this vision to conservatives is obvious: it gives them another reason to do what they want to do anyway, namely slash aid to the less fortunate while cutting taxes on the rich.

Given how attractive the right finds the image of laziness run wild, you wouldn’t expect contrary evidence to make much, if any, dent in the dogma. Federal spending on “income security” — food stamps, unemployment benefits, and pretty much everything else you might call “welfare” except Medicaid — has shown no upward trend as a share of GDP; it surged during the Great Recession and aftermath but quickly dropped back to historical levels…

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Trans-border sewer line In Nogales, AZ, clogged with marijuana in transit


Click to enlargeKGUN9-TV

An international sewer line in Nogales has been cleared of packages of drugs that caused a backup of waste. On Wednesday evening, authorities said the investigation was ongoing and no arrests had been made.

Authorities found about 50 to 60 pounds of marijuana in the sewer line. The bundles of drugs caused waste to spill into a home where an illegal underground tunnel was found leading to the pipe.

“There was raw sewage coming out of every nook and cranny of that house,” said Nogales City Manager Shane Dille.

Dille said authorities believe the house was being used to receive drugs coming through the sewer from Mexico. He said service was not interrupted at any other properties in the area, with the exception of one business.

Dille said the owner of the house lives out of state and has been contacted, but it’s unknown at this time if someone was renting the house…

He said the city hoped to have the sewer line repaired by Wednesday evening.

First time I worried about a plumber getting stoned while using a Roto-Rooter.