Daily Digest

Daily Digest 3/13 - The Iran War Clock, Oil And Alternatives With Marc Faber, Which Country Is Next To Default?

Tuesday, March 13, 2012, 10:45 AM
  • Greece Officially Defaults; Which European Country Is Next?
  • It's 10 Minutes to Midnight: Introducing The Iran War Clock
  • The "Let's Pretend" Economy and False Consciousness
  • Oil, Alternatives, and Nuclear Weapons - An Interview with Marc Faber
  • Balestra Capital: "If Government Programs Were Cancelled, The Economy Would Collapse Back Into Severe Recession"
  • The Audacity of Bonuses at MF Global
  • New Report: Nitrate Contamination Threatens California’s Drinking Water
  • Team: Radiation Exposure In Tokyo Far Below Limit

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

Economy

Greece Officially Defaults; Which European Country Is Next? (David B.)

The “restructuring deal” was approved by approximately 84 percent of all Greek bondholders, but the key to triggering the payouts on the credit-default swaps was the fact that Greece decided to activate the “collective action clauses” which had been retroactively inserted into these bonds. These collective action clauses force most of the rest of the bondholders to go along with this restructuring deal.

It's 10 Minutes to Midnight: Introducing The Iran War Clock (jdargis)

The Iran War Clock is not designed to be pro-war or anti-war. Instead, the purpose is to estimate the chances of conflict in the hope of producing a more informed debate. If people hold a very inaccurate view of the odds of war it could be dangerous.

The "Let's Pretend" Economy and False Consciousness (art)

In light of stagnant incomes and rising costs, Smith suggested that while tuition costs rise the value of a college degree has fallen. Smith: "The supply of those with college degrees exceeds the demand." Even further, "student loans enable young people to 'stay in school' or 'go back to school'", i.e., individuals are "taking out student loans just to live; the loans are essentially a form of 'state funding' a.k.a. welfare that must be paid back." Whereas global corporations are hiring overseas while students graduate with excessive student loan debt only to find a disastrous job market, Smith concluded that the $1 trillion in student loans furthers "profits and debt serfdom". That being the case, Smith suggested that as a growing number of students are beginning to default, the student loan market appears to be starting to implode.

Oil, Alternatives, and Nuclear Weapons - An Interview with Marc Faber (James S.)

OilPrice.com: What are your 3-5 year projections for oil prices?

Marc Faber: Well, you’ll have to give me a second. I need to call Mr. Ben Bernanke and ask him how much money he will print. Commodity prices were in a bear market from 1980 to 1998, and since then they've gone up. But because of expansionary monetary policies and artificially low interest rates they have increased more than would have otherwise been the case. We don't know exactly how long this asset bubble will last - but say if you had interest rates in real terms, of five percent, instead of negative five percent, then I think all commodity prices, including gold, would be lower.

Balestra Capital: "If Government Programs Were Cancelled, The Economy Would Collapse Back Into Severe Recession" (Davos)

The world is changing rapidly. The old rules that so many investors rely upon may no longer apply the way they did during the great growth years after World War II." Alas, this too is spot on.

The Audacity of Bonuses at MF Global (June C.)

Three wrinkles of audacity underscore the potential MF Global bonus approvals. First, there is the moral responsibility layer. MF Global, classified as a broker-dealer wasn’t specifically subject to the investment-advisor fiduciary rule that requires ‘systemic safety and soundness’’ with respect to retail customers. But, comingling customers’ funds inappropriately with the firm’s, as former chief, Jon Corzine’s European bets were blowing up, was an abject misinterpretation of the rule's intent.

Environment

New Report: Nitrate Contamination Threatens California’s Drinking Water (jdargis)

Holbrook explains that nitrates are odorless, tasteless compounds that form when nitrogen from ammonia and other sources mix with water. While nitrogen and nitrates occur naturally, the advent of synthetic fertilizer has coincided with a dramatic increase in nitrates in drinking water. He notes that rural residents are at greater risk because they depend on private wells, which are often shallower and not monitored to the same degree as public water sources, writing, “Current contamination likely came from nitrates introduced into the soil decades ago. That means even if nitrates were dramatically reduced today, groundwater would still suffer for decades to come.”

Team: Radiation Exposure In Tokyo Far Below Limit (guardia)

The team estimates that this level of radiation exposure will increase infant cancer rates later in life by 3 per 100,000 individuals. The risk is said to be a little lower than that caused by exhaust gas from diesel-engine cars.

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2766
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2766
Rahm Emanuel makes sure your children are safe in Chicago

All of those new speeding cameras he's having put up are for "children's safety". How sweet of him to think of protecting our children.

I'm sure Greg Goldner is also only thinking of  the safety of  Chicago's children.

....................Just an old  reminder about Rahm Emanuel and children.

hughacland's picture
hughacland
Status: Member (Offline)
Joined: Oct 7 2008
Posts: 23
Hello fellas. Long time no

Hello fellas. Long time no post, but I just had to share this with you.

Over at

http://www.telegraph.co.uk/finance/economics/gilts/9141842/Britain-to-of...

Someone posted the following, referring to the pound :

"Our currency is not based on debt its based on credit."

At first I wanted to throw myself out the window and end it all in a sticky mess four storeys below. Then I just sat on my sofa and wept. Soon I had no tears left so I started to giggle. The giggles became chortles and before long deep cavenous expulsions of tragic laughter.

The only remedy I could think of was to share this with you. I apolgise if you too now have to go through the same sequence of events in reaction to reading this.

I really do despair. God help us.

jumblies's picture
jumblies
Status: Silver Member (Offline)
Joined: Jun 13 2010
Posts: 244
hughacland wrote: I really

hughacland wrote:

I really do despair. God help us.

Nice catch, Hugh. Some great lines in that story, all of which add up to a whole lot of bollocks.

The Chancellor hopes that the 100-year gilts will help to "lock in" the benefits of Britain's international "safe haven" status. The interest rates paid by the Government to borrow money have recently fallen to a record low and it is hoped the new gilts will mean "our great-grandchildren" can benefit from the low rates.

Meaning our great grandchildren can pay for our continued profligate spending. And as for locking in our "safe haven" status, I think the point is that the UK is not a safe haven any longer and so any locking in is rubbish. Locked out, more like.

If the loans have a lower interest rate then all we'll do is take out more loans so not only will our debt burden continue to increase but it will be ever increasing generations of our children who will be locked into paying it off.

And the very fact that 100 year gilts are even brought up is a bloody great big red neon flashing warning sign.

"God help us" as you say, but being an atheist my view is that we only have ourselves to rely on. And we're not very reliable.

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