Daily Digest

Daily Digest 6/8 - The Day The Dollar Died, The "Solution" Is Collapse, Factors Affecting The Price Of Oil

Friday, June 8, 2012, 10:40 AM
  • The Day The Dollar Died
  • Europe At A Crucial Crossroad
  • Charles Hugh Smith: The "Solution" Is Collapse
  • Healthy Behaviors And Where The Money Goes
  • The Coming Catastrophe in Government Bonds and Bond Funds
  • Factors Affecting The Price Of Oil
  • Nord Stream: Russia's Natural Gas Link to the West
  • Environmental benefit of biofuels is overestimated, new study reveals

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

Economy

The Day The Dollar Died (Phil H.)

Europe At A Crucial Crossroad (David B.)

We all know what happened to Europe (and the world) the last time a German leader tried to impose “unity” on all of Europe. The principal difference between the failed efforts of The Third Reich, and the more promising efforts of Merkel’s Fourth Reich is that while Hitler used tanks and bombs Merkel relies upon bonds and debts. Her message to Europe’s debtor-nations is no less authoritarian than Hitler’s (and almost as menacing): agree to this forced-marriage (under Franco-Prussian rule) or we will bankrupt you by cutting off further access to credit.

Charles Hugh Smith: The "Solution" Is Collapse (Thomas C.)

It won't become painful to borrow from our grandkids for quite some time, and it will probably not become progressively painful, either, because we will suppress the pain with superlow interest rates and other trickery. The pain will more likely be of the sudden, unexpected, "this can't be happening to me" heart-attack sort: the free-money machine will unexpectedly grind to a halt in some sort of easily predictable but always-in-the-future crisis.

Healthy Behaviors And Where The Money Goes (VeganD)

The Bipartisan Policy Center report Lots to Lose: How America’s Health and Obesity Crisis Threatens our Economic Future offers several recommendations for improving nutrition and physical activity in the US. In addition to recommendations for schools and childcare providers (start encouraging physical activity at an early age, and require 60 minutes of physical activity during each school day), it has several recommendations for communities. One acknowledges that local government funds are tight, but suggests partnerships to increase the use of limited spaces for play and exercise:

The Coming Catastrophe in Government Bonds and Bond Funds (David B.)

Ten years are no better, in fact, if you caught a segment I did here a few months ago, I talked about a German bond auction that actually cost the investor a few cents per bond to own. They lost money on them.

Factors Affecting The Price Of Oil (OPA)

How much of the recent moves in oil prices can be explained by changing perceptions of global economic activity? One way I thought to get an impression of this was to look at the extent to which recent oil price movements are mirrored in other commodities. I was able to assemble a quick data set on spot prices for copper, corn, palladium, platinum, soybeans, and wheat, and calculated the principal component of the weekly percentage changes in these 6 commodity prices over January 2005 to September 2011. The value of this principal component for any particular week in fact turns out to be pretty close to the average change across the 6 commodity prices for that week. I'm a big believer in using parameters that are a priori plausible values in preference to over-fitting a given sample, and the principal components analysis suggests that a simple average would be an excellent summary statistic to use for these purposes.

Nord Stream: Russia's Natural Gas Link to the West (OPA)

The 759 mile-long Nord Stream subsea offshore natural gas pipeline, from Vyborg in the Russian Federation’s Karelia to Greifswald in Germany has been laid along the bottom of the Baltic. Nord Stream is owned and operated by Nord Stream AG. Nord Stream’s first pipeline leg was laid in May 2011 and inaugurated on 8 November 2011, with a second parallel line to be laid in 2011–2012. After the commissioning of the second line at the end of 2012 the Nord Stream pipeline will be transporting 55 billion cubic meters of gas per year to Europe.

Environmental benefit of biofuels is overestimated, new study reveals (Jeff B.)

Since results of the LCAs have been widely utilized, Searchinger and Smith conclude that the overall development and research of alternative fuels has been heading in the wrong direction. "The best opportunity to make beneficial biofuels is to use waste material or to focus on relatively wet but highly degraded land," notes Dr. Smith. If bioenergy crops are produced on degraded land, less GHGs will be emitted and more will be stored. There are additional benefits: this method will not compete with crop production for food, textiles, and other products.

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."

6 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 2589
littlefeatfan's picture
littlefeatfan
Status: Silver Member (Offline)
Joined: Jul 20 2009
Posts: 141
More 3E related Links, Resources and Cartoons

posted at  http://3es.weebly.com/ For What It's Worth Expanded Edition

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 343
German TARGET2 Total Hits €700 Billion

Thanks to Alasdair Macleod, we all on this site became familiar with the TARGET2  (an acronym for the Trans-European Automated Real-time Gross-settlement Express Transfer System) www.PeakProsperity.com/blog/europe-crisis-european-perspective/74743

Well today, ZH reports the imbalance is now 700 billion Euros and as we can see on the picture below rising exponentially... It's difficult to imagine this going on for a long time:

http://www.zerohedge.com/news/europes-parabolic-est-target2-hits-%E2%82%AC700-billion

Dear German readers: please earmuff your eyes.

Everyone else: please check back in 3-6 months when the Bundesbank's (i.e. Germany) uncollectable "claims" from the Eurosystem hit €1 trillion, following the May increase of €54.4 billion, the third highest monthly increase on record, bringing the total of just shy of €700 billion.

jrf29's picture
jrf29
Status: Gold Member (Offline)
Joined: Apr 18 2008
Posts: 444
Fraud Warning - NIA

Today's Daily Digest contains a video produced by the National Inflation Association.  All Chris Martenson users should be warned that NIA is primarily a penny stock pump and dump operation.

The NIA produces high quality videos and articles using accurate information, but the purpose of these videos is to create subscription lists which are subsequently used to promote penny stock picks.   Typically, this is done after feeding the subscriber a list of legitimate senior mining stocks which have done well, to build their confidence.

The NIA was founded by Jonathan Lebed, a man who is "notorious for using internet technology to hype stocks," and was prosecuted by the SEC for pumping and dumping penny stocks in 2000.

Commentator Peter Schiff exposed the scam on his radio show in May, 2011, and later obtained an on-air admission by former NIA business partner George Hemminger that the organization was indeed fraudulent and that they were paid to recommend worthless stocks.  "We began by producing Alex Jones-type documentaries," to create member subscription lists which could subsequently be "monetized."

Sources:

"Beware the NIA Penny Stock Pump & Dump," May 20, 2011

"NIA reacts to Pump & Dump Revelation," May 23, 2011

"National Inflation Association co-founder admits NIA is a Fraud," May 24, 2011
 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Online)
Joined: Feb 4 2010
Posts: 2308
Naked

if we wave the dead chicken over the enchanted rocks while dancing the humba-humba,

I tried that Charles. It didn't work.

Perhaps I should have been in my naked shorts.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Online)
Joined: Feb 4 2010
Posts: 2308
For your Amusement and Pleasure.

But mostly because I am a Troll.

Why the WSJ is wrong about space mining.

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