Daily Digest

Daily Digest 2/19 - The Long Road To Damascus, Germany and Greece Prepare For Plan D, Gas Prices Continue Rising

Sunday, February 19, 2012, 11:44 AM


  • The Long Road To Damascus

  • Momentum Builds for Syria Action Ahead of Tunis Conference

  • Frustrated Protesters Fill Streets in Damascus

  • Does the Fed Print Money? Of Course! Jim Bianco Calls It “Fraud, Counterfeiting”

  • Germany, Greece Quietly Prepare For "Plan D"

  • Brother, Can You Spare $6 Trillion?

  • Iran Stops Exporting Crude Oil to British, French Companies, Shana Reports

  • Rising Gas Prices Give G.O.P. Issue to Attack Obama

Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)



Economy



The Long Road To Damascus (jdargis)


At the UN Security Council on February 4th, Russia and China raised Western ire by vetoing a mild resolution that would have urged Bashar Assad, the president, to adhere to a peace plan drafted by the Arab League. It pressed him to cede at least some unspecified powers to a deputy, pending the outcome of reconciliation talks. Russia objected to this, and more generally to the West imposing a diktat on a sovereign state it considers an ally.



Momentum Builds for Syria Action Ahead of Tunis Conference (jdargis)


Mr. Assad, who has belittled his opponents by characterizing them as foreign-backed armed terrorist gangs, sharply escalated the repression on Feb. 4 when Russia and China vetoed a Security Council resolution condemning his crackdown and calling on him to step aside under an Arab League plan. The plan calls for new elections and a new government.



Frustrated Protesters Fill Streets in Damascus (jdargis)


“I hope President Assad opens the window of his office and sees how Damascenes are shouting against him and his regime,” said Usama, 22, a university student from the neighborhood, giving only his first name out of fear of retribution. “The regime thought we were asleep, but it doesn’t know that when we wake up his regime will be gone.”



Does the Fed Print Money? Of Course! Jim Bianco Calls It “Fraud, Counterfeiting” (Jeff B.)


"The ability of the Fed to increase the amount of money in banks' reserve accounts; that's what most people mean when they talk about money printing and that's under the direction of the Fed," Bianco says.



Germany, Greece Quietly Prepare For "Plan D" (pinecarr)


For several weeks now we have been warning that while the conventional wisdom is that Europe will never let Greece slide into default, Germany has been quietly preparing for just that.



Brother, Can You Spare $6 Trillion? (jdargis)


One of the eight men arrested had moved the $6 trillion in fictitious bonds from Hong Kong to a Swiss deposit in 2006, Mr. Colangelo said. He said the origins of the bonds were unknown, but added that authorities had also seized a fake will, which was said to be part of a scheme in which a suspect would claim to have inherited the bonds and try to use them to open credit lines at a bank.


Energy



Iran Stops Exporting Crude Oil to British, French Companies, Shana Reports (pinecarr)


Iran stopped exporting crude oil to French and British companies, the oil ministry’s news website Shana reported, citing Alireza Nikzad Rahbar, a ministry spokesman.


The halt in shipments followed a warning by the oil minister that the Persian Gulf country might act preemptively ahead of a European Union ban on purchases of Iranian oil set to start in July, Rahbar said, according to the report today.



Rising Gas Prices Give G.O.P. Issue to Attack Obama (jdargis)


Iran’s recent warnings of a disruption in the global oil trade have pushed the price of a barrel of domestic oil to more than $103, a six-month high and up about 34 percent since September. That has helped drive the average price of a gallon of regular gasoline in the United States to $3.52, a 30-cent increase in the past two months. It is already approaching $4 in some places.


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."

10 Comments

NZSailor's picture
NZSailor
Status: Bronze Member (Offline)
Joined: Oct 4 2008
Posts: 55
The economic engine roars...

From the local paper....

Wall St up as US economic engine roars

"...

Reports on labour, manufacturing and housing in the US bolstered optimism that the world's largest economy remained in good shape to further sustain its momentum.

"We're getting this incredible flow of good data," Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, told Reuters. "It's hard not to want to step into the market."..."

http://www.nzherald.co.nz/economy/news/article.cfm?c_id=34&objectid=1078...

The cheerleading by the MSM gets more and more frentic.  The engine might be roaring but it strikes me it is in neutral (or reverse!).

Chip

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2466
How does Greece's debt swap work? (The Guardian/UK)

"The Greek parliament is expected to vote through legislation this week on so-called collective action clauses which would force some investors to take losses of 70% on their holdings.

The European Central Bank's bonds will be exchanged for new ones but it is likely to be exempt from the restructuring and will be repaid in full. "

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2099
And as futures open Sunday night...

. Gold, oil and currencies all gapping up. Oil over 104. Could be an interesting week...

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2466
Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 2715
Somethings happening here

WTI up over $105, DXY down >.30, AU&AG up.  Are US markets closed tomorrow?

With Greece, Syria and Iran all on the verge of something bad, how much fear is out there?  I heard Kyle Bass say that when Europe goes into crisis, money will flood into the US initially on safe haven buying.  He also suggested high quality corporate debt might be a good place to hide for a while.

Doug

Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1024
How does Greece's debt swap work? (The Guardian/UK)

The rules always seem to get changed when they are no longer convenient to follow.

The ECB's actions to bailout Greece seem akin to the Federal Reserve bailing out a US state and forcing private bondholders to take a loss

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 2068
Settle down Girls.

I dont want anyone to get overly excited when you watch this silver porn that I lifted from MaxKeyser.

David Morgan

robie robinson's picture
robie robinson
Status: Platinum Member (Offline)
Joined: Aug 25 2009
Posts: 582
Is China

gonna change its tune and sing with the rest of the worlds choir?

http://www.reuters.com/article/2012/02/18/us-china-economy-rrr-idUSTRE81H0BY20120218

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 2715
silver porn

I share the view that silver has a greater upside potential than gold because of its industrial uses.  But, the question in my mind is:  Are there substitutes for silver in the various industrial processes, and at what price do they become viable?  Other important questions is how much more can be mined or recycled if the price is right?  The last I heard there was only one dedicated silver mine in the Americas.  The rest of silver production comes as a byproduct of other mines.  I suspect there are a lot of closed silver mines that could be profitably reopened if the price is high enough.  

Morgan didn't discuss either of these questions, but I don't think silver can be fairly priced until both are answered.  No matter what the history is, today silver is seen as a less desirable monetary metal than gold.  That may change, but we have to deal with the market today, not in some imagined future.  Today silver has both industrial and monetary uses, but is produced in much greater quantities than gold.

In the final analysis, there is still a huge speculative aspect to both metals that is heavily influenced by perceptions and expectations of the world economy.

Doug

Time2help's picture
Time2help
Status: Gold Member (Online)
Joined: Jun 9 2011
Posts: 292
An enlightened perspective?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments