Daily Digest

Daily Digest 2/2 - Counterfeit Money And Policy, Global Lending Standards Tighten, Food Crisis And Drought In Mexico

Thursday, February 2, 2012, 11:48 AM
  • MF Global Customer Funds Were Not "Vaporized" - Stanley Haar Takes WSJ to Task
  • MF Global: Oops, They DID Find the Money After All As We Had Said, But...
  • Holder & Obama’s Propaganda is “Belied by a Troublesome Little Thing Called Facts”
  • Vicious Cycles Persist As Global Lending Standards Tighten
  • Counterfeit Money, Counterfeit Policy
  • International Pipelines - Peacemakers or Hostages to Fortune?
  • Industry Experts Say Iranian Oil Sanctions Will Not Affect Supply
  • Oil Rich Venezuela's Electricity Shortfalls Lose Economy $80 Billion
  • Food Crisis as Drought and Cold Hit Mexico
  • Increasing ocean acidity due to humans’ CO2

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Economy

MF Global Customer Funds Were Not "Vaporized" - Stanley Haar Takes WSJ to Task (June C.)

The bottom line is that customer funds were stolen twice: first by the illegal looting of segregated accounts by MF management, followed by the fraudulent way in which the bankruptcy was structured so as to circumvent the priority status of customers in the distribution of MF assets. This is the real story and scandal of MF Global, and perhaps one day your paper will decide to cover it.

MF Global: Oops, They DID Find the Money After All As We Had Said, But... (June C.)

It is a variation of the spin. No the money is not vaporized, but its complicated. There are lots of possibilities just too complicated to explain to the public, and you have to be patient, little customers, while a pile of creditors' lawyers sit on your money until you hopefully go away.

Holder & Obama’s Propaganda is “Belied by a Troublesome Little Thing Called Facts” (June C.)

Elite financial institutions officers engaged in fraud face a dramatically reduced risk of prosecution compared to 20 years ago when financial fraud was far less common. TRAC reports that the number of financial institution fraud prosecutions under Obama is less than one-half the number 20 years ago. Bush (II) was slightly better than Obama in prosecuting non-elite financial institution frauds, but both were pathetically bad.

Vicious Cycles Persist As Global Lending Standards Tighten (pinecarr)

One of the major factors in the Central Banks of the world having stepped up the pace of flushing the world with increasing amounts of freshly digitized cash is writ large in the contraction in credit availability to the real economy (even to shipbuilders). Anecdotal examples of this constrained credit are everywhere but much more clearly and unequivocally in tightening lending standards in all of the major economies. As Bank of America's credit team points out, bank lending standards to corporates have tightened globally in Q4 2011 and the picture is ubiquitously consistent across the US, Europe, and Emerging Markets. Whether it is deleveraging, derisking, or simple defending of their balance sheets, banks' credit availability is becoming more constrained.

Counterfeit Money, Counterfeit Policy (pinecarr)

What is the difference between printing money and counterfeiting? There is none.

Energy

International Pipelines - Peacemakers or Hostages to Fortune? (James S.)

Neatly encapsulating the dispute, south Sudan President Salva Kiir Mayardit , speaking at the 18th African Union Assembly in Addis Ababa, Ethiopia on 30 January said, "We acknowledge that most of the oil infrastructure lies on the territory of Sudan, however, the oil clearly belongs to South Sudan. This unilateral decision to take our crude entitlements is unmistakably a violation of the sovereignty of South Sudan and must be condemned."

Industry Experts Say Iranian Oil Sanctions Will not Affect Supply (James S.)

Although oil prices have recently increased due to the worries about Iranian oil supplies the high prices predicted by the IMF should not occur. As I have stated the supply will not decrease, in fact it is more likely to increase. Nor will there be any surge in global demand, again it is more likely to decrease, due to European economic problems and a slowing of the Asian growth of recent years.

Oil Rich Venezuela's Electricity Shortfalls Lose Economy $80 Billion (James S.)

Hitting back at their critics, President Chavez told reporters that Venezuela's electricity-saving measures have eased the burden on the country's overworked power grid and that power generation now exceeds demand by 2,500 megawatts following a package of conservation restrictions implemented last June. Among other restrictions some factories and commercial centers were required to cut consumption by 10 percent or risk being fined. President Chavez added that last year his government added 3,000 megawatts of capacity and plans to add an additional 4,000 megawatts by the end of 2012.

Environment

Food Crisis as Drought and Cold Hit Mexico (jdargis)

The government in the past week has authorized $2.63 billion in aid, including potable water, food and temporary jobs for the most affected areas, rural communities in 19 of Mexico’s 31 states. But officials warned that no serious relief was expected for at least another five months, when the rainy season typically begins in earnest.

Increasing ocean acidity due to humans’ CO2 (Steve)

“Any significant drop below the minimum level of aragonite to which the organisms have been exposed for thousands of years and have successfully adapted will very likely stress them and their associated ecosystems,” Friedrich said in the release.

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."

11 Comments

saxplayer00o1's picture
saxplayer00o1
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MarkM's picture
MarkM
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rhare's picture
rhare
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Lies we tell ourselves...

Social Security Trust Fund Outlook Takes $1 Tril Dive

This is another great example of lies we tell ourselves.  How can we keep referring to this as a "Trust Fund" implying some type of store of value?  It's a loan to an insolvent Federal government that can't pay back the "Social Security Trust Fund" debt any more than it can any of the other debt.

This article should read:  

Every US citizen (including Children) will be required to pay an additional $3205 to cover Social Security benefits through 2022.

Even that headline is not truthful since it's only looking at the "shortfall"  in the "Trust Fund" not the whole ponzi scheme "Trust Fund".

How can we have any realistic dialog about the problems when we use lies like "The Social Security Trust Fund".

ao's picture
ao
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Posts: 2220
Holder is the worst

Holder is indeed the worst US Attorney General in recent memory.  His failure to prosecute financial crimes of enormous magnitude strongly suggests that he is, in some way, compromised himself.  The failure of Obama to remove him is also telling. 

cmartenson's picture
cmartenson
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Re>Holder

It's entirely possible to see Holder's prosecutorial decisions through the lens of power.  If one has power then one is not selected for prosecution.  If one is without power, then you can pretty much count on the DOJ and Federal prosecotors coming after you.

This erosion of fabric of law actually began some time ago but has steadily worsened under Holder.  How you get to that position without come sense of the dignity of the office infecting you, or how history will view your actions, or the importance of both the appearance and fact of equal application of the laws of the land, is beyond me.

I guess Holder is noting that the prior people who abuse that office all have nice professorships at the most presitgious universities, an indictment of our institutional health I suppose.

Bob1's picture
Bob1
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Bird's of the same feather flock together

Chicago politics at it's finest.

Stan Robertson's picture
Stan Robertson
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Posts: 492
cmartenson wrote: It's

cmartenson wrote:

It's entirely possible to see Holder's prosecutorial decisions through the lens of power.  If one has power then one is not selected for prosecution.  If one is without power, then you can pretty much count on the DOJ and Federal prosecotors coming after you.

This erosion of fabric of law actually began some time ago but has steadily worsened under Holder.  How you get to that position without come sense of the dignity of the office infecting you, or how history will view your actions, or the importance of both the appearance and fact of equal application of the laws of the land, is beyond me.

I guess Holder is noting that the prior people who abuse that office all have nice professorships at the most presitgious universities, an indictment of our institutional health I suppose.

Did anyone expect better from the guy who engineered the Marc Rich pardon?

thc0655's picture
thc0655
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Posts: 469
Credibility trap

Jesse calls the problem facing Obama and Holder a credibility trap.  On one hand, they will be considered corrupt and ineffective if they don't take serious steps to prosecute the fraud (which is itself one of the most important actions necessary to correct the past "mistakes" and set the country on a road to true recovery.)  On the other hand, Obama and Holder (and the Bush administration before them) can't afford to seriously prosecute the fraud in the banking and mortgage sector because that would shine the bright light of day on the many polititicians (Dem and Rep) who have been part of the fraud and benefitted immensely from it (including themselves, OF COURSE).  So they're stuck. Can't go forward; can't retreat. So they stall and attempt to distract us with false "settlements."  Outrageous!  I'm livid!   But most of all I'm angry with the majority of Americans who refuse to pay attention, think about this, and make their voices heard. (On the other hand, I have heard of a few sharpening pitchforks and gathering rope.)

Arthur Robey's picture
Arthur Robey
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Holder

Nothing suprises me.

I am from Zimbabwe.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
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Posts: 2070
Dr Goodstein lays it on the line

Here is a dry lecture by Dr Goodstein on our state of affairs.

Prediction: Civilisation will collapse sometime this century when the energy runs out.

Amen.

Recommended for those who did not come here from The Oil Drum.

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