Daily Digest

Daily Digest 12/27 - Debt Limit For Dummies, Brazil Overtakes UK As 6th Largest Economy, Flight Of The Warbots

Tuesday, December 27, 2011, 11:48 AM
  • Debt Limit For Dummies
  • Treasury Plans For Euro Failure
  • Franklin Roosevelt's 1936 Address
  • Brazil Overtakes UK As Sixth-Largest Economy
  • Law to Find Tax Evaders Denounced
  • Penny-Wise and No Fools in Stores
  • Putin Takes Another Swipe at Russian Protesters
  • Flight of the Warbots

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

Economy

Debt Limit For Dummies (June C.)

Thank God for our children.

Treasury Plans For Euro Failure (SolidSwede)

Officials fear that if one member state left the euro, investors in both that country and other vulnerable eurozone nations would transfer their funds to safe havens abroad. Capital flight from weak euro nations to the UK would drive up sterling, dealing a devastating blow to the Government’s plans to rebalance the economy towards exports.

Franklin Roosevelt's 1936 Address (pinecarr)

We had to struggle with the old enemies of peace— business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering.

They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob.Yen-Yuan Trade Plan to Cut Dollar Dependence of China, Japan

Brazil Overtakes UK As Sixth-Largest Economy (pinecarr)

UK relegated to seventh place in world league of leading economies in 2011, according to team of economists.

Law to Find Tax Evaders Denounced (jdargis)

The law is meant to ensure Americans cannot use hidden trusts overseas to evade taxes, a goal that is widely applauded. But critics say that it amounts to gross legislative overreach, and that the $8 billion the Treasury expects to reap in taxes owed over 10 years pales next to the costs it will impose on foreign institutions. Those entities are being asked, in effect, to pay for the cost of tracking down American tax evaders.

Penny-Wise and No Fools in Stores (jdargis)

At this penny-pinching moment in American history, this reality show about moms (and a few dads) who compulsively clip coupons and stockpile free stuff is a breakout hit for TLC, the cable channel formerly best known for Kate Gosselin. So the channel is trying to make the most of it, filming holiday specials and conceiving two spinoffs that will be shown this week.

Putin Takes Another Swipe at Russian Protesters (jdargis)

He also suggested initiating a dialogue with dissatisfied voters on the Internet — an unusual step coming from Mr. Putin, who last year described the Internet as “50 percent pornographic material.” Earlier this month, during his televised question-and-answer session, Mr. Putin said he did not use the Internet because he is too busy.

Flight of the Warbots (Chris M.)

When civilians think of the new class of mechanical warriors aiding troops in places like Iraq and Afghanistan, the high-priced, high-tech airplanes that come to mind have names like Predator and Global Hawk, made by General Atomics and Northrop Grumman (NOC), respectively. These unmanned aerial vehicles, or UAVs, operate over the Middle East, conducting in-depth surveillance of potential targets. Some of them are armed. In September, senior al-Qaeda leader Anwar al-Awlaki was killed in Yemen by two CIA-controlled Predators launching Hellfire missiles. On Dec. 4, Iran claimed it recovered a RQ-170 Sentinel, the top-secret stealth drone that was used in the May raid on Osama bin Laden’s compound.

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."

12 Comments

saxplayer00o1's picture
saxplayer00o1
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Obama to ask for debt limit hike: Treasury official

"The White House plans to ask Congress for an increase in the debt limit before the end of the week, according to a senior Treasury Department official.

The debt limit is projected to fall within $100 billion of the current cap by December 30. President Barack Obama is expected to ask for additional borrowing authority to increase the limit by $1.2 trillion.

Under the new budget, Congress can only vote to block the debt-ceiling extension with a disapproval resolution. Lawmakers have 15 days within receiving the request to vote down the debt limit increase.

The debt limit currently stands at $15.194 trillion and would increase to $16.394 trillion with the request."
 

Other headlines:

  1. ECB overnight deposits reach record
  2. Italy Retailers in Worst Christmas in 10 Years
  3. First-time UK home buyers plunge to record low: Halifax
  4. China's external debt hit 697 bln U.S. dollar at end of September
  5. Acropolis Closed Due to Christmas Eve Strikes
  6. French unemployment reaches 12 year high
  7. U.S. Home Prices Fell More Than Forecast
  8. Gloomy Price Picture Forecast for 2012
  9. Italian Bond Yields Rise Before Year-End Auction (10 year bonds at 7.1%)
woomera's picture
woomera
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Iran Threatens to Block Oil if West Sets New Sanctions

G'Day,  Everything listed today pales to insignificance if this was to occur.

www.nytimes.com/2011/12/28/world/middleeast/iran-threatens-to-block-oil-route-if-embargo-is-imposed.html

What are they thinking?  Both, the West and Iran?  This gamesmanship will cause trouble that makes digits on a bank computer unimportant.  Maybe that's the idea.  This will affect billions. Possibly kill millions.  January is looking dicey.  I would think this will be good for gold, oil and possibly US dollar and the Military Industrial Complex.  Hope you all can afford fuel at 3x the current price or more, if you can get it.

Regards,

Woomera

rjs's picture
rjs
Status: Gold Member (Offline)
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Posts: 369
"there’s near-insatiable demand' for U.S. debt

Obama Wins Most Demand for Debt Since 1995 - The U.S. government received record demand for its bonds in 2011, pushing longer-maturity Treasuries to their best performance since 1995 in a sign that President Barack Obama may have little difficulty financing a fourth consecutive year of $1 trillion budget deficits. The Treasury Department attracted $3.04 for each dollar of the $2.135 trillion in notes and bonds sold, the most since the government began releasing the data in 1992 during the George H. W. Bush administration. The U.S. drew an all-time high bid-to- cover ratio of 9.07 for $30 billion of four-week bills it auctioned on Dec. 20 even though they pay zero percent interest. While Standard & Poor’s stripped the U.S. of its AAA credit rating on Aug. 5, Treasuries due in 10 years or more returned 25.6 percent this year. The spreading sovereign debt crisis in Europe and slower global growth are driving investors to the safety of U.S. assets, helping to contain borrowing costs and making it cheaper as a percentage of gross domestic product to finance deficits than when the nation last had budget surpluses. “If the last two weeks are any indication of how next year will start, there’s near-insatiable demand,”

rjs's picture
rjs
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Posts: 369
Iran sells oil products to Afghanistan & Iraq

woomera wrote:

G'Day,  Everything listed today pales to insignificance if this was to occur.

www.nytimes.com/2011/12/28/world/middleeast/iran-threatens-to-block-oil-route-if-embargo-is-imposed.html

What are they thinking?  Both, the West and Iran?  This gamesmanship will cause trouble that makes digits on a bank computer unimportant.  Maybe that's the idea.  This will affect billions. Possibly kill millions.  January is looking dicey.  I would think this will be good for gold, oil and possibly US dollar and the Military Industrial Complex.  Hope you all can afford fuel at 3x the current price or more, if you can get it.

Regards,

Woomera

so how do we figure what this means?

Iran inks oil products deal with Afghanistan; Tehran to export one million tons per year of gasoil - Iran signed an agreement with Afghanistan on Monday to export one million tons per year of gasoil, gasoline and jet fuel to the neighboring country starting next year, the official IRNA news agency reported. The Islamic state, which was long dependent on imported gasoline for 30 to 40 percent of its consumption, said last year it had started exporting the fuel. The sales were confirmed to Reuters by trade sources, but they did not know at the time where the cargoes were being exported. “Iran has exported gasoil to Afghanistan over the past years but the export of gasoline and jet fuel will begin next year,” IRNA quoted Ali Reza Zeighami, managing director of the National Iranian Refining and Oil Products Distribution Company, as saying. Zeighami said the price of the products will be determined based on International prices. In April, trade sources said Iran had struck a deal to sell gasoline to Iraq but that the rare cargo did not mean the Islamic Republic had became a net exporter and free from its dependence on gasoline imports.

 
Damnthematrix's picture
Damnthematrix
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Posts: 3998
China Insolvency Wave Begins

http://www.zerohedge.com/news/china-insolvency-wave-begins-nations-biggest-provincal-borrowers-defer-loan-payments

China Insolvency Wave Begins As Nation's Biggest Provincial Borrowers "Defer" Loan Payments

Remember, back in the day, when a bankruptcy was simply called a bankruptcy? Naturally, this was well before ISDA came on the scene and footnoted the living feces out of everything by claiming that a bankruptcy is never a bankruptcy, as long as the creditors agree to 99.999% losses at gunpoint, with electrodes strapped to their testicles, submerged in a tank full of rabid piranhas, it they just sign a piece of paper (preferably in their own blood) saying the vaseline-free gang abuse was consensual.

Well, now we learn that as the global insolvency wave finally moves to China, a bankruptcy is now called something even less scary: "deferred loan payments" (and also explains why suddenly Japan is going to have to bail China out and buy its bonds, because somehow when China fails, it is the turn of the country that started the whole deflationary collapse to step to the plate). After all, who in their right mind would want to scare the public that the entire world is now broke. Certainly not SWIFT. And certainly not that paragon of 8%+ annual growth, where no matter how many layers of lipstick are applied, the piggyness of it all is shining through ever more acutely.

Because here are the facts, from China Daily, and they speaks for themselves: "China's biggest provincial borrowers are deferring payment on their loans just two months after the country's regulator said some local government companies would be allowed to do so....Hunan Provincial Expressway Construction Group is delaying payment on 3.11 billion yuan in interest, documents governing the securities show this month. Guangdong Provincial Communications Group Co, the second-largest debtor, is following suit. So are two others among the biggest 11 debtors, for a total of 30.16 billion yuan, according to bond prospectuses from 55 local authorities that have raised money in capital markets since the beginning of November."

featherjack's picture
featherjack
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Posts: 51
Did everyone notice this?

"For the past few years, the Transportation Security Administration has deployed its Visible Intermodal Prevention and Response, or VIPER, teams to oversee security at the street level.

The Department of Homeland Security, (under which TSA falls,) wants to *add 12 more VIPER teams to its roster of 25* in 2012. Congress would have to give its approval and allocate additional funding.

<That's a 50% increase.>

"They are successful in deterring (threats) to transportation, but it is also *effective in thwarting any people who want to break the law*," Melendez said."

http://abclocal.go.com/kabc/story?section=news/national_world&id=8481493

So there it is. They're out *saying* it now. The 'War on Terror' excuses and drives the militarization of our country. Did we choose this? Is this what we *really* want?

See, I thought this WoT was one of ideas -- terror is an idea, after all. And it seems like I've heard of lot of "They hate us for our freedom". Well... forgive me, my thinker's just not as good as I once thought it was, but if we curtail our own freedoms .... don't the terrorists win?

"They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety."
    -- Benjamin Franklin (1706-1790), Letter to Josiah Quincy, Sept. 11, 1773.

woomera's picture
woomera
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Posts: 44
Looks like they got a refinery up 'n going

G'Day, 
I know about six months or more ago, the was a report from Iran that they finally were able to manufacture a catalyst necessary for the production of petrol?  Looks like Iran will make heaps fo the stuff. 

Regards, Woomera

ezlxq1949's picture
ezlxq1949
Status: Bronze Member (Offline)
Joined: Apr 29 2009
Posts: 50
Did everyone notice this?

Surveillance is one of the few growth industries left. So much scope for its expansion, so little time to get it done. Buy shares if you dare!

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
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Posts: 3998
Dubai in deep doo doos...!

Apparently Dubai doesn't have a sewage system for all those big new buildings so they haul it all away. Look at the number of tank trucks that are waiting to dump their load. This is amazing. They wait for days.   
 
You would have thought that by building all those huge skyscrapers they would have enough sense to put in a sufficient
sewage system to haul away all that crap.  Not everything you see above ground that looks amazingly beautiful is built on a well planned system of utilities.  
 
Click on the link. http://www.boreme.com/posting.php?id=31361
 

robie robinson's picture
robie robinson
Status: Platinum Member (Offline)
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Posts: 583
"Dune"

Pull the water outa the pooh...Dubai could use it.

Arthur Robey's picture
Arthur Robey
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Posts: 2084
Proper Goose says "Wow"

Anyone who believes propaganda is a proper goose.

Not again. Not weapons of mass destruction. Those lunkheads in power are devoid of imagination. Throw them out of office. Give them a real job, attending to the incontinent.

 http://www.youtube.com/watch?feature=player_detailpage&v=EPcWHBPYOSU

Check out how much power the central government in Europe is giving itself.

pinecarr's picture
pinecarr
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Posts: 1543
Former Fed VP Accuses Bernanke Of Bailing Out Europe

New on ZeroHedge: "Former Fed VP Accuses Bernanke Of Bailing Out Europe Via Currency Swaps", at http://www.zerohedge.com/news/former-fed-vp-accuses-bernanke-bailing-out-europe-currency-swaps 

Here's an excerpt:

First it was Zero Hedge. Then Ron Paul joined in. Now it is the turn of a former Dallas Fed Vice President, Gerald ODriscoll, to outright accuse the Fed of bailing out Europe courtesy of "incomprehensible" currency swaps, and implicitly accusing Bernanke of lying that he would not bail out Europe even as he has done precisely that. And not only that: by cutting the USD swap spread from OIS+100 to OIS+50, the Fed has made sure it gets paid less than ever for extended Europe the courtesy of bailing it out all over again. Incidentally, O'Driscoll says, "America's central bank, the Federal Reserve, is engaged in a bailout of
European banks. Surprisingly, its operation is largely unnoticed here.
" One thing we can say proudly - it has been noticed loud and clear here...

From the WSJ:

The Federal Reserve's Covert Bailout of Europe 

When is a loan between central banks not a loan? When it is a dollars-for-euros currency swap.

America's central bank, the Federal Reserve, is engaged in a bailout of European banks. Surprisingly, its operation is largely unnoticed here.

The Fed is using what is termed a "temporary U.S. dollar liquidity swap arrangement" with the European Central Bank (ECB). There are similar arrangements with the central banks of Canada, England, Switzerland and Japan. Simply put, the Fed trades or "swaps" dollars for euros. The Fed is compensated by payment of an interest rate (currently 50 basis points, or one-half of 1%) above the overnight index swap rate. The ECB, which guarantees to return the dollars at an exchange rate fixed at the time the original swap is made, then lends the dollars to European banks of its choosing.

Why are the Fed and the ECB doing this? The Fed could, after all, lend directly to U.S. branches of foreign banks. It did a great deal of lending to foreign banks under various special credit facilities in the aftermath of Lehman's collapse in the fall of 2008. Or, the ECB could lend euros to banks and they could purchase dollars in foreign-exchange markets. The world is, after all, awash in dollars.

The two central banks are engaging in this roundabout procedure because each needs a fig leaf. The Fed was embarrassed by the revelations of its prior largess with foreign banks. It does not want the debt of foreign banks on its books. A currency swap with the ECB is not technically a loan.

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