Daily Digest 9/18 - Paypal Suspends Transactions In Argentina, Sri Lanka Disease Blamed On Farm Chemicals
Market conditions often cause silver to fall behind gold, for quite some time, where after, silver normally catches-up in a big way. The fact that silver is still caught-up in a trading range lower than its 1980 high, at least four years longer than gold already, provides a classic opportunity for silver to follow that “catching-up pattern” and zoom to multiples of its 1980 high. In my opinion, silver will do just that and move much faster than gold in percentage terms, over the next months.
Ghost inventories are exacerbating the wider ailments of the sector in China, which produces around 45 percent of the world's steel and has over 200 million metric tons (220.5 million tons) of excess production capacity. Steel is another drag on a financial system struggling with bad loans from the property sector and local governments.
This means that in an economy in which the creation of liabilities, and pledging of assets took place at a furious pace in the past 5 years, nobody really knows just what the real state of credit creation truly was. What is 100% certain is that as a result of this revelation, the GDP number of the country, which is and always has been a derivative of credit formation and expansion (and heaven forbid contraction), is massively overrepresenting what it is in reality, and that the Chinese economy has been expanding at a far slower pace if defined not only by the creation of liabilities, but by matched assets. Most importantly, it means that every single Renminbi in circulation is impaired as a country-wide liquidation event would see huge losses by every creditor class. It also would mean, naturally, zero residual value left for the equity.
In August 1967, 74,767,000 Americans were working (according to the Bureau of Labor Statistics) and 1,152,861 were taking federal disability insurance (according to the Social Security Administration). That means that at that time there were about 65 Americans working for each worker collecting disability.
In August 2012, 142,101,000 Americans were working and 8,767,941 were on disability--meaning there were only 16.2 people working for each person collecting disability.
The conventional view can be illustrated with this example. Let’s say a household earns $50,000 a year and they have a fixed-rate mortgage of $100,000. If they set aside 40% of their income to pay the mortgage, that’s $20,000 a year. This means they can pay off their mortgage in five years. (To keep things simple, let’s ignore interest.) Let’s say the household’s annual grocery bill is $5,000—10% of the annual income.
Paypal suspends domestic transactions in Argentina (westcoastjan)
Since the rules were introduced in November 2011, Paypal has been used as an alternative means of obtaining the US currency close to the official exchange rate, which currently stands at about 4.7 pesos per dollar.
That is much cheaper than the rate on the black market where one dollar costs about 6.3 pesos.
China protests: Fears rise over Japan-China trade ties (westcoastjan)
Japan's Chief Cabinet Secretary Osamu Fujimura said Tokyo had asked Beijing via diplomatic channels to take necessary steps to protect Japanese nationals and prevent further damage to Japanese companies in China.
"Japanese companies play an important role in the Chinese economy and employment. We believe we should be calm and make rational judgements from a broad perspective," he told reporters.
Peregrine Financial Group boss admits $100m fraud (westcoastjan)
They have not been able to access their accounts since the firm filed for bankruptcy in July but are expected to gain back an initial 30-40% of their investment in the coming weeks.
Qatar: Rich And Dangerous (James S.)
A year after he deposed his father in 1995, Sheikh Hamad bin Khalifa Al-Thani established the Al-Jazeera television satellite news network. He invited some of the radical Salafi preachers that had been given sanctuary in Qatar to address the one and a half billion Moslems around the world. They had their electronic soapbox and the card to an ATM, but there was a price.
Sri Lanka kidney disease blamed on farm chemicals (westcoastjan)
Dassanayake says these patients didn't fit the typical profile. They didn't have diabetes or high blood pressure, the common causes of chronic kidney disease worldwide.
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