Daily Digest

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Daily Digest 12/8 - Managed Bankruptcy For Detroit, The Yen Gets It In The End

Saturday, December 8, 2012, 12:26 PM

Economy

CPI Unchained (jdargis)

“Chaining” the index means taking a slightly broader view of how the baskets should work in order to account for switching behavior. One reason people buy pork, for example, is that it’s cheaper than beef. But so is chicken. So if pork prices rise, price-sensitive shoppers will probably shift and buy less pork and more chicken. In other words, the price of pork went up, but the overall impact on meat prices is smaller than a naïve look at the movement in pork prices would suggest.

Govt. borrows 46 cents of every dollar it spends (Dana T.)

Overall, CBO analysts said that, accounting for shifts in both revenue and spending, the deficit would be $8 billion lower this year than it was last year at this time.

The agency, Congress’s nonpartisan budget scorekeeper, releases preliminary estimates of the government’s fiscal position each month. Final figures will come later this month from the Treasury Department.

State laying groundwork for managed bankruptcy for Detroit (adam)

Contingency planning in Lansing for a possible Chapter 9 bankruptcy filing is not likely to be popular inside council chambers or the Mayor's Office. But it's the responsible and necessary thing to do, whatever the protests from the elected officials whose denial and self-delusion are hastening the arrival of a reckoning they can no longer avoid.

When The "Price" Of Gold Or Silver Means Nothing (Thomas C.)

Among the most important of these is the illusory nature of “change.” The Weimer Hyperinflation provides us with a classic illustration of that concept. Viewed from nearly a century in the future, our assumption is that this “episode” was characterized by a consistent progression: either the parabolic explosion in prices (and collapse in the value of currency) which we are taught defines hyperinflation, or (at the least) some steady-but-dramatic linear progression.

The Yen Gets It In The End: James Saft (westcoastjan)

“If I become prime minister, I won’t comment on specific monetary policy measures, as they should be decided by the BOJ,” Abe said in a joint party leaders’ debate. That rings somewhat hollow, given that he’s put the BOJ and his efforts to make it more responsive to the woes of Japan’s economy at the center of the LDP campaign.

Andrew Coyne: Stephen Harper’s foreign takeover policy no longer just murky, but totally incoherent (westcoastjan)

The “net benefit” test, with all of its many overlapping, arbitrary, and subjectively applied criteria, will remain in place for all takeovers, whether by private or state-owned enterprises. In addition, a second battery of tests will now be applied to SOEs: for example, a bid will be accepted or rejected depending on how much “control or influence” the SOE would have over its new subsidiary, and how much control or influence its state owners have over it.

Andrew Coyne: F-35s debacle a broad failure of democratic accountability (westcoastjan)

Defence officials, long entranced by the F-35’s advanced technology, persuaded successive ministers of defence, Gordon O’Connor and Peter MacKay, to approve the purchase with the promise of billions in spin-off “industrial benefits” for the Canadian aerospace industry. Virtually no documentation was provided in support of any of these claims, nor were any of the usual rules and procedures followed.

Could synthetic fuels eliminate entire US need for crude oil, create ‘new economy’? (Gordon S.)

The research makes up an important part of a white paper recently produced by the American Institute of Chemical Engineers (AIChE), the nation’s largest chemical engineering association. In the paper, the chemical engineers call for a greater integration of energy sources and urge policymakers to consider chemical conversion processes as a potential method to produce cleaner and cheaper fuels.

U.S. Punts on Climate Change Action, Again (Dana T.)

"There's no doubt that for us to take on climate change in a serious way would involve making some tough political choices," said the president. "And understandably, I think the American people right now have been so focused, and will continue to be focused on our economy and jobs and growth, that if the message is somehow we're going to ignore jobs and growth simply to address climate change, I don't think anybody is going to go for that. I won't go for that."

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

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 2502
The Fat Lady clears her throat.

$45 Billion for a war toy and absolutely zip for a potential new energy source that will prevent a war. Go figure it out for yourself.

Droughts, water shortages and extreme weather events threaten our survival. Doha flops.

Humanity is about to get an extreme makeover.

KugsCheese's picture
KugsCheese
Status: Platinum Member (Online)
Joined: Jan 2 2010
Posts: 709
Detroit

I was in Detroit on Nov 18th football weekend.  The papers talked of dire circumstances and the citizens vibrated it.   The Packard Car company plant is something to see.  What went wrong???

KugsCheese's picture
KugsCheese
Status: Platinum Member (Online)
Joined: Jan 2 2010
Posts: 709
German Hyperinflation

Of course there was also the Jewish Conspiracy in Germany as a result of the government printing money beyond true wealth but no mention in article???

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 2502
On the Jewish Conspiracy.

Hello Klugs,

Proudly having both Jewish and Prussian ancestry I feel unconstrained to wade in here.

Just as we forsee some sort of economic catastrophe, I think that the Jews positioned themselves very nicely to profit from the misery of the Volk. Did we deserve what we dished out?  Mu. Once these things are let loose by the model making Left hemisphere they become the norm.

I do not think the Jews conspired, I do think that we could have been a little more circumspect in demanding full measure. Shakespears Shylock is a moral tale. We have an inclusive Right Hemisphere for a very good reason.

We have been warned. Do not profit from misery.

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