Blog on the Run: Reloaded

Friday, December 27, 2013 12:57 pm

And you thought the bursting of the housing bubble was bad …

From the Nov. 11 New Yorker (paywall) on a company called Climate Corporation that uses big data to project crop sizes for every field in the country and insures crops on the basis of that data:

(CEO David) Friedberg is convinced that climate change has the potential to alter land values dramatically, and soon. “We had this economic bubble because of a major housing crisis,” he said. [Strictly speaking, that’s backward — we had an economic crisis because of a (burst) housing bubble — but forget it; he’s rolling. — Lex] “Residential real-estate values dropped, and the debt-equity ratio was so high that there were massive economic consequences for the nation. There is almost certainly a much more significant devaluation that needs to occur with land affected by climate change.” In Kansas, he noted, real estate trades at prices that make sense only if a farmer gets the kind of yield on an acre of corn that is now rare. “In parts of Kansas, farmers should simply not be growing corn,” Friedberg said. “Historically, you would have a heat wave every 20 years there. Now it happens every three years or so, and in those years the crops die.”

The Climate Corporation charges roughly forty dollars an acre to insure crops, and its customers farm more than ten million acres. Many of them give little credence to terms like “climate change” and “global warming.” That doesn’t bother Friedberg. “You don’t need to talk about climate change per se,” he told me. “Statistically, you are looking at a series of numbers. If it were a roulette wheel, you could say, ‘It’s coming up black more and more frequently.’ Can I attribute that to black being overweighted by the croupier? Or to the pit boss, or to the machine being broken? It doesn’t matter. Some people will argue that ice ages have waxed and waned for tens of millennia and that this is part of a natural cycle. That doesn’t change the fact that black is coming up more frequently and you will get less out of an acre of corn than you used to. The price for that land simply cannot be justified by the income it can generate.”

He went on, “It’s going to take a few climatic events in a row, I guess, and then everyone will say, ‘I’m not going to keep buying Kansas real estate at this price,’ or, ‘I’m not going to keep developing in this harbor zone in Florida.’ If you mark down all the stuff to what the discounted value should be — holy shit.” He practically shouted, “It is bad. I am convinced it is going to happen because, the math says it has to happen in at least one or two or three parts of the world. And if it happens at any of them at any point in the next ten years, it will make the housing crisis look small.”



  1. Another reason Greensboro should be investing in Aquaponic farming locally. Should what he’s saying come true, food prices will skyrocket everywhere. With the Dam Scam being what it is, it’s not like we’ve any shortage of water and with Greensboro under contract to buy 53% of the water it just makes sense. Besides, we can’t eat data centers.

    Comment by Billy Jones — Friday, December 27, 2013 4:59 pm @ 4:59 pm

  2. Another nail in the climate change coffin. This is over an hour long but serious lunatics should watch it. Preay for sanity


    Comment by Fred Gregory — Friday, December 27, 2013 8:50 pm @ 8:50 pm

  3. Oops here ya go

    Comment by Fred Gregory — Friday, December 27, 2013 8:52 pm @ 8:52 pm

  4. The Department of Defense and the insurance industry are betting that global climate change is a real thing. Both have immense motivations to make the right call. So I’m going with them.

    Comment by Lex — Friday, December 27, 2013 8:54 pm @ 8:54 pm

  5. Lex, actually a number of local high end restaurant owners and one seafood distribution company I know of have expressed interest in buying Greensboro sourced organic vegetables and fish raised via aquaponics so there might already be more of a market than we think.

    Comment by Billy Jones — Friday, December 27, 2013 11:10 pm @ 11:10 pm

  6. Why Does The Global Warming Hoax Persisit ?

    “The catastrophic anthropogenic global warming theory has now been, in my opinion, definitively refuted. Yet the global warming machine grinds on, oblivious to the science. Why? Because there is a great deal of money at stake. The Science and Environmental Policy Project has the numbers:

    [ Number of the Week: $22,195,000,000 US. As required by law, the White House delivered to Congress a report stating in Fiscal Year 2013, which ended on September 30, the US government spent $22,195,000,000 on climate change matters. The main categories are: US Global Change Research Program $2.463 Billion; Clean Energy Technologies $5.783 Billion, International Assistance $797 Million; Natural Resources Adaption $95 Million; Energy Tax Provisions That May Reduce Greenhouse Gases $4.999 Billion; Energy Payments in Lieu of Tax Provisions $8.080 Billion. The $8.080 Billion buys a lot of lobbying power for the wind and solar industries.

    These expenditures further support SEPP’s earlier estimates that since 1993, the US has spent over $150 Billion on climate change. The updated figure is over $165 Billion.]

    Note that not a single one of those dollars, ostensibly spent to combat “climate change,” had an iota of impact on the climate. Nearly $2.5 billion went to fund the alarmist campaign; no wonder alarmist scientists don’t want the gravy train to end. The symbiosis is obvious: the government pays alarmists billions to spread myths about the climate, and the point of the mythology is to persuade voters to confer more power on government. And the $165 billion that the U.S. government has spent since 1993 is only a fraction of total global spending to grease the “green” machine. Lots of money to allies of big government; that is what global warming alarmism is all about.”


    Comment by Fred Gregory — Saturday, December 28, 2013 11:26 am @ 11:26 am

  7. Fred, As I wrote before:
    “Yes, it’s true that gloom and doom predictions help to sell more insurance but no one is selling insurance or even taking odds that climate change won’t come. Please, show me any odds maker who is willing to take bets that climate change isn’t coming. That, my friends is how you know something is real. When no one in the insurance or gambling business will bet against something then that something is as real as it gets.”

    Please show me one insurance company or one odds maker willing to bet against climate change. Just one, Fred, that’s all I ask.

    Comment by Billy Jones — Saturday, December 28, 2013 6:28 pm @ 6:28 pm

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