Daily Digest 11/14 - The End Of Fiat Money, Students Occupying Foreclosed McMansions, Wind Power To Compete With Gas By 2016
- The Beginning of the End of Fiat Money
- This Can't End Well
- Doug Casey: On the Greater Depression, Currency Debasement, Technology, the Middle Class, Investing, and Our Future
- Occupy Sympathizer Plays APEC Dinner
- Students occupying Merced McMansions
- Goldman Sachs International Advisor Mario Monti Is Italy's New Prime Minister
- Solar Power Boom Threatens Prime Ag Land
- USA Export Land Model Analysis For Food Energy Production And Consumption
- Wind Power to be Competitive with Natural Gas by 2016
The Beginning of the End of Fiat Money (pinecarr)
Phase One of the threatened catastrophe is sovereign debt crisis, which is effectively camouflaging a currency crisis. The Greek default is significant as the first crack in the dam. But Greece is a relatively small problem. The bigger threat is Italy, with its $2.4 trillion of debt and a 10-year bond yield having just surpassed the critical 7 percent level. This is the ruinous milestone at which the cost of new debt money surpasses the economic growth rate plus inflation. Italy faces massive debt refunding, falling buyer interest, and no hope of a bailout. If Italy were to default, it could threaten rapid contagion to Portugal, Ireland, Spain, and other larger eurozone countries, including perhaps France. In such an event, most international banks and institutional investors, including those in the US, could suffer severe, possibly total, losses on their holding of certain sovereign bonds. MFGlobal is but one speculative example of a looming secular trend. Worse still, the writers of credit default swap (CDS) derivatives, including many German Landesbanks (state-level banks) and major US banks, could suffer crippling losses.
This Can't End Well (Robert O.)
The fact that a city would cut off a service as basic as street lights got me to thinking about what could be next. If reducing the light bill doesn’t fix the cash flow problems what is next. Do they cut back on road maintenance? Water treatment? Police? Fire protection? Do you ever wonder why when money is tight the first things that get mentioned to cut are the things that governments exist to provide in the first place! As I stated before I consider myself the an average guy who does the right things and meets his obligations but I got to wondering what if my city no longer could provide the basic service that they are paid by me (and my other law abiding , responsible neighbors) to do?
A large portion of productive society is the middle class. The upper class can hire the lawyers, accountants, advisers... and can handle themselves. The lower classes don't have anything anyway. It is the middle class that matters. The issue for the the middle class is that if they save money, they do so in currency. The problem is that stupid governments are going to destroy their currencies quantitative easings - which will wipe out the middle class. Governments will drive currencies to their intrinsic value of zero. It will be a sociological earthquake.
Occupy Sympathizer Plays APEC Dinner (thatchmo)
As President Obama, First Lady Michelle Obama and the heads of 18 other nations dined together Saturday night, they were unwittingly serenaded for almost 45 minutes by a musician playing a song about the Occupy Wall Street movement.
"We occupy the streets, we'll occupy the courts, we'll occupy the offices of you, till you do the bidding of the many, not the few," sang Matthew Swalinkavich, a well-known local guitarist who calls himself Makana, the Hawaiian word that means "the gift". Makana was invited by the White House to perform during the APEC leaders' dinner.
Students occupying Merced McMansions (Robert O.)
Here in Merced, one of the U.S. cities hardest hit by home foreclosures, the real estate downturn has presented an unusual housing opportunity for thousands of college students. Facing a shortage of dorm space, they are moving into hundreds of luxurious homes in overbuilt planned communities.
Translation: in under two weeks, Goldman has taken over both the ECB and Italy.
Solar Power Boom Threatens Prime Ag Land (Robert O.)
"I view this as a temporary use," said developer Al Solis, as he made a pitch to the Fresno County Board of Supervisors recently to allow farmland planted in Asian vegetables to convert to solar.
The land rush is on, and to critics it looks like the leapfrog housing boom of the late 20th century that chopped up some agricultural regions into too-small pieces.
After a steep rise in the proportion of exports from 12 to 32% of net production from 1961 to 1980, exports have dropped to about 20% of net production since about 1997..... The USA is a major exporter of cereals and soyabean as well as some other, energetically less important food items. However, as a contributor to the world export market, the USA hit its peak in 1980, accounting for 36 percent of all global food energy exports. That percentage has steadily trended downward since 1980, to only 14 percent of global exports in 2007
“Due to structural overcapacity and growing competition in the wind industry, we expect turbine prices to continue to fall over the next few years. At the same time as designers roll out yet larger turbines with longer blades designed to capture more energy, even in low-wind locations, capacity factors will continue to increase,” the company said.
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