Daily Digest

Daily Digest 8/3 - Eurozone Crisis Resurfaces, TX Man Pays $15 for $340k House, The Power Of Silver

Wednesday, August 3, 2011, 10:49 AM
  • The Crash Course: An Interview With Chris Martenson
  • Italy calls emergency meeting as eurozone crisis resurfaces
  • Italian Banks Caught in Sovereign Debt Crossfire
  • Zapatero Delays Vacation as Spanish Bond Yields Head for 7%
  • Worsening euro crisis may force bigger rescue fund
  • Italy, Spain Stuck in No-Go Debt Zone for Merrill, DWS Funds: Euro Credit
  • Texas man pays $15 to move into $340,000 house
  • Even Tooth Fairy is pinching pennies during U.S. debt crisis
  • Average Irish person 30 percent worse off due to recession
  • 20 Cents for Gas Shows the Power of Silver - 2 August 2011
  • Obama calls for measures to create jobs
  • Chicago to Lay Off Traffic Aides to Cut Budget
  • Miami police to vote on recalling mayor

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Economy

The Crash Course: An Interview With Dr. Chris Martenson

-Exponential growth is different from linear growth. We naturally think linear yet the current situation is exponential.

-Growth and prosperity are also different. You can have growth or prosperity, but not both perpetually.

-Problems and predicaments are different as well. A problem can be solved to avoid a certain outcome. A predicament has no solution, only an outcome. We currently have a predicament that we must adjust to.

Italy calls emergency meeting as eurozone crisis resurfaces

A fresh wave of eurozone panic prompted Italian authorities to call an emergency meeting on Tuesday and Spain's prime minister to delay his holiday as borrowing costs for the two nations hit fresh highs....

Concerns that Spain and Italy will be the next victims of the eurozone crisis drove benchmark bond yields to all-time highs and unsettled stock markets.

Yields on 10-year Spanish government bonds rose 25 basis points to 6.426pc, while Italy's 10-year bonds also hit highs of 6.219pc -edging closer to the 7pc levels that forced its smaller Greek and Portuguese neighbours to ask for a bail-out.

Italian Banks Caught in Sovereign Debt Crossfire

Big holdings of Italian bonds by the country's banks are making them a proxy for funds responding to debt concerns by cutting their exposure to Italy....The sell-off in Italian debt pushed 10-year yields above the 6 percent mark. Above this level, concerns about the cost of refinancing Italy's 1.6 trillion euro debt intensify.

"Six percent was seen as a line in the sand for yields and now that that's gone, people don't want any risk apart from Germany," said a London-based bond trader.

Zapatero Delays Vacation as Spanish Bond Yields Head for 7%

Spanish Prime Minister Jose Luis Rodriguez Zapatero delayed a planned vacation as the country's borrowing costs approached the 7 percent mark that heralded bailouts of Greece, Portugal and Ireland.

Worsening euro crisis may force bigger rescue fund

A worsening euro zone debt crisis may ultimately force the bloc to expand its 440 billion euro ($625 billion) bailout fund, despite political opposition in key contributing countries, some officials and analysts say. An emergency summit of euro zone leaders last month agreed to let the fund, the European Financial Stability Facility, deploy its money in new ways to fight the crisis. But it did not take a major step for which investors were hoping: give the EFSF more firepower. Since then, the euro zone's debt problem has become even more worrying, threatening to move beyond small countries such as Greece to engulf large states such as Spain and Italy.

Italy, Spain Stuck in No-Go Debt Zone for Merrill, DWS Funds: Euro Credit

Merrill Lynch Global Wealth Management, unconvinced that the second Greek bailout has stemmed the debt crisis, won’t put any of its $1.5 trillion of assets into Italian or Spanish bonds.

The unit of Bank of America Corp. (BAC) has spurned bonds from Greece, Portugal, Ireland, Spain and Italy since deciding to avoid them in April of last year, according to Johannes Jooste, a senior Merrill portfolio strategist in London. Merrill isn’t alone: Frankfurt-based DWS Investment, which oversees $390 billion for clients, and Legal & Investment Management say they are “underweight” Spanish debt.

Texas man pays $15 to move into $340,000 house

It has the makings of a tall tale: A man finds a two-story, 3,250-square-foot house worth $340,000 in a Dallas suburb and pays only $15 for it.

Kenneth T. Robinson, 50, who sells vitamins and other dietary supplements for a marketing company, laid claim to the 1997-built house in Flower Mound under Texas' obscure "adverse possession" law — commonly known as "squatter's rights."

Robinson determined that the owner of record moved out about a year ago and cannot be found, and the property wasn't listed for sale. He filed an affidavit of adverse possession with Denton County for a $15 fee, turned on the utilities and moved in.

Even Tooth Fairy is pinching pennies during US debt crisis

As US politicians wrangled how to avert a massive debt default, American children are feeling the pinch of a sagging economy as they got 40 per cent less from Tooth Fairy. A recent survey found that the national going rate has seen a 40-cent slump this year: From USD 3 to USD 2.60.

It found that 10 per cent of kids are reaching under their pillows ... and coming up empty compared to last year when just six per cent of kids found no reason to flash that toothless grin.

Average Irish person 30 percent worse off due to recession

A report by economist consultants at Indecon found that close to 300,000 people had been “wiped out” financially since 2007. They also revealed that the average Irish person is 30% worse off than they were before the start of the financial crisis.

Their reasoning for the steep decline is the changeover from full-time to part-time jobs, and how the private sector was hit a lot harder than the public sector was. Personal incomes, as a result, dropped by around 50%, mainly because private sector employees were well-paid before, but were forced out of their jobs due to the recession.

20 Cents for Gas Shows the Power of Silver - 2 August 2011

Take a look at this picture, taken at a gas station in Ashland, Oregon, May 2011: See what I mean? The gas station is accepting payment for gas in the old, un-debased version of the currency. A gallon of gas was nearing $5 per gallon at the time the picture was taken.

Obama calls for measures to create jobs

President Obama on Tuesday said cuts in federal spending won't do much to help the U.S. economy and he urged Congress to take swift measures to create jobs. Obama issued his plea shortly after the Senate passed a deal that raises the borrowing limit of the U.S.

Government by up $2.4 trillion, while cutting federal spending by a similar amount over the next decade. Obama indicated support for an extension of the temporary cut in worker payroll taxes and more money for unemployment benefits, among other things.

Chicago to Lay Off Traffic Aides to Cut Budget

The City of Chicago is set to lay off dozens of traffic aides who guide traffic through downtown intersections.

Eighty traffic aides will be losing their jobs Aug. 15 as part of a budget-cutting measure.

Miami police to vote on recalling mayor (Video)

The Miami Police Department is looking into an effort aimed at recalling Miami Mayor Tomas Regalado.....The police union is facing the prospect of steep salary cuts for the 2011-12 budget year.

Regalado issued this statement in response to FOP's recall effort: "I believe I'm being punished for not raising taxes to the people of Miami for the second year in a row. We are in a very difficult economic time, and like every family, we have to cut expenses. We want to do the right thing for the residents of Miami, without having massive layoffs in our workforce."

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: 2716
Medicare, Medicaid tab keeps growing

"In morning trading, Italy's 10-year borrowing rate spiked to 6.21 percent before easing somewhat, while Spain's rose to 6.34 percent, a little shy of Tuesday's euro-era high of 6.45 percent."

"The costs of the government's big health care programs are soaring again, expenses not tackled in the agreement President Obama signed into law Tuesday to raise the nation's debt limit and cut federal spending.
Medicare and Medicaid spending rose 10% in the second quarter from a year earlier to a combined annual rate of almost $992 billion, according to new data from the Bureau of Economic Analysis (BEA). The two programs are on track to rise $90 billion in 2011 and crack the $1 trillion milestone for the first time.

The jump in health care spending is the biggest since the Medicare prescription drug benefit was added five years ago and ends a brief lull in the spending increases that occurred during the economic downturn.

The debt limit and spending package approved by Congress and Obama don't restrict costs of Medicare, Medicaid and other entitlement programs. The rapidly escalating costs of the health care programs will challenge lawmakers seeking to rein in federal spending in the future, especially in 2014, when coverage expands to people who are uninsured now."

"San Jose just closed a $115 million deficit, mostly by cutting staff and trimming paychecks. The city is projecting an 11th straight deficit in the coming budget year, a chasm totaling at least $78 million. And that gap is expected to grow as employee pension costs continue to soar.

San Jose's pension tab has tripled in a decade to $245 million and is expected to balloon to $400 million or more in four years to cover an estimated $2 billion shortfall, a result of past benefit hikes, market losses and flawed assumptions. Reed noted that such increases dwarf the projected $34 million in new revenue a year from a quarter-cent sales tax."

  • Other news, headlines and opinion:

China's Zhou to Monitor U.S. as Xinhua Sees Debt 'Bomb'

China PBOC Calls On US To Protect Safety Of Treasuries

China blasts US debt deal, saying it obscures risks

China Rating Agency Downgrades US Debt

Moody's, Fitch Affirm Rating; Issue Warning If Economy Weakens

Monetary base up 15% via BOJ spigot

Brazil throws $25 bln lifeline to sagging industry

European Default Insurance Costs Continue To Rise On Peripheral Woes .

Corporate Bond Risk Rises in Europe, Credit-Default Swaps Show

Berlusconi to Address Italy on Crisis as Bonds, Stocks Slump

Moody's downgrades Athens to Caa3, outlook Developing

Euro faces meltdown in the August heat

Long Beach leaders introduce budget proposal with heavy cuts

Pimco, BlackRock Say U.S. Economy Is Running at ‘Stall Speed,’ Fed May Act (QE3)

Tepco Reports Second Deadly Radiation Reading at Fukushima Nuclear Plant

China Joins Russia in Blasting U.S. Borrowing After Debt Ceiling Agreement

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 348
RedShift's picture
RedShift
Status: Bronze Member (Offline)
Joined: Sep 6 2008
Posts: 25
Re: Miami police to vote on recalling mayor

Have no sympathy for the Florida police and their brutality.   

For Example:

We still vividly recall how the Naples Tax Eaters pushed Alex Lifeson down that

Ritz Carlton staircase for the crime of defending his son who was accused of the

terrible crime of dancing on the stage during New Years diner: 

Video: 

Account: http://en.wikipedia.org/wiki/Alex_Lifeson#The_Naples_incident

Ya, we remember.  Never Forget.

herewego's picture
herewego
Status: Bronze Member (Online)
Joined: Aug 11 2010
Posts: 81
Great interview!

I really enjoyed your excellent interview on the MacAlvany website Chris.  The thought-through clarity and level tone of your presentation makes the information you offer accessable - no easy thing on these topics.   It seems a bit like wizardry compared to my somewhat tense and frustrated efforts.  Whatever you are doing to be able to bring things forward in this strong, grounded way, don't stop!  I will share this interview with people whom I love and wish knew more.  There's a chance they will hear it.

Thanks!

susan

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