Daily Digest

Daily Digest 11/14 - The End Of Fiat Money, Students Occupying Foreclosed McMansions, Wind Power To Compete With Gas By 2016

Monday, November 14, 2011, 12:10 PM
  • 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

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

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?

Doug Casey: On the Greater Depression, Currency Debasement, Technology, the Middle Class, Investing, and Our Future (Jaime)

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.

Goldman Sachs International Advisor Mario Monti Is Italy's New Prime Minister (pinecarr)

Translation: in under two weeks, Goldman has taken over both the ECB and Italy.

Energy

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.

USA Export Land Model Analysis For Food Energy Production And Consumption (Crash_Watcher)

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

Wind Power to be Competitive with Natural Gas by 2016 (James S.)

“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.

Article suggestions for the Daily Digest can be sent to dd@PeakProsperity.com. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

9 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Online)
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Damnthematrix's picture
Damnthematrix
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Posts: 3998
Gerald Celente screwed

robie robinson's picture
robie robinson
Status: Platinum Member (Offline)
Joined: Aug 25 2009
Posts: 583
"We're so sorry

about your money."  at 5:48 she says with much aplomb.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Online)
Joined: Jul 30 2009
Posts: 2472
pinecarr's picture
pinecarr
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Joined: Apr 13 2008
Posts: 1543
re: Gerald Celente screwed

Wow, DTM.  Time to wake up and smell the coffee.  I know I am taking the pulse of the current situation to reassess, and to decide if "stepping-up" certain near-term actions may be prudent.

I'm wondering if we may be hearing from Chris soon re what seems to be an escalating/deteriorating situation.  I think about those last couple of minutes of water doubling in volume in the stadium, per Chris's analogy, and how huge and rapid the change becomes near the end.  I can't help wondering where we are in that scenario, even in terms of a general estimate!

saxplayer00o1's picture
saxplayer00o1
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Joined: Jul 30 2009
Posts: 2472
U.S. boosts estimate of auto bailout losses to $23.6B

"The Treasury Department dramatically boosted its estimate of losses from its $85 billion auto industry bailout by more than $9 billion in the face of General Motors Co.'s steep stock decline.

In its monthly report to Congress, the Treasury Department now says it expects to lose $23.6 billion, up from its previous estimate of $14.33 billion.

The Treasury now pegs the cost of the bailout of GM, Chrysler Group LLC and the auto finance companies at $79.6 billion. It no longer includes $5 billion it set aside to guarantee payments to auto suppliers in 2009.

The big increase is a reflection of the sharp decline in the value of GM's share price.

The current estimate of losses is based on GM's Sept. 30 closing price of $20.18, down one-third over the previous quarterly price. "

pinecarr's picture
pinecarr
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Tipping Point...

Here's one from http://www.zerohedge.com/news/presenting-deutsche-banks-pitchbook-ecb-go-all that got my attention; "Presenting Deutsche Bank's Pitchbook To The ECB To Go "All In"":

Say you are the CEO of Deutsche Bank (whoever that may be these days following Ackermann's stunner of an announcement yesterday), and you have so much dirty laundry that if the market so much as looks at you funny, you know very well it is game over the second you have to engage in reactionary damage control. After all your assets are 84% if not more, of total German GDP and there is no way that you can be bailed out by one country alone, even if that country is the only one that is not a complete Banana republic. So what do you do? Why you tell your bankers to write the best, most persuasive pitch book they can come up with, addressed to none other than Goldman Sachs alum and ECB head, Mario Draghi, and you tell him the truth: "Europe has hit its Tipping Point" and it is now or never. In other words, in 51 slides, your task is to convince the ECB that unless they terminally break away with their traditional stance of not monetizing, not only they, but the entire European status quo will cease existing. And that's precisely what you do. Behold: "The Tipping Point - Time To Call The ECB" - Deutsche Bank's definitive attempt to encapsulate the Mutual Assured Destruction that we are "certainly" all going to suffer, unless the ECB prints, and prints, and prints.

Tall's picture
Tall
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Posts: 243
World's Largest Investors Call for Urgent Action on Climate

Despite the global economic crisis, and increased market volatility, the world’s largest investors today urged governments and international policy makers to take new and meaningful steps in the fight against climate change.

In a joint statement, the group of 285 investors representing more than $20 trillion in assets stressed the urgent need for policy action which stimulates private sector investment into climate change solutions, creates jobs, and is essential for ensuring the long-term sustainability and stability of the world economic system.

Investor support for climate action has more than doubled since November 2008, when 150 investors with $9 trillion in assets under management first came together to urge government leaders to act on climate change.

http://www.ceres.org/press/press-releases/worlds-largest-investors-worth-20-trillion-step-up-call-for-urgent-policy-action-on-climate-change

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