Daily Digest

Daily Digest - June 13

Saturday, June 13, 2009, 10:00 AM
  • Financial Sense News hour 3, June 6 (Repost, Audio)
  • * * * * ABBY NORMAL
  • A Nation of Ditch Diggers
  • A New World Order (H/T JerryLee, Chart Jerry Noted China then and now!)
  • Just Short of a Sign in Times Square: China airs fears on US debt, dollar: lawmaker
  • The Still Over-Leveraged Consumer
  • Changing Times, Different Choices
  • California to lead us into Abyss
  • Sales - Still More Economic Cliff Diving (Charts on Page)
  • Weak Hiring and the Jobless Recovery
  • Five stock market experts share their views
  • By the Numbers?
  • US cities may have to be bulldozed in order to survive

Economy

Financial Sense News hour 3, June 6 (Repost, Audio)

  • ****6:04 Minsky, Bubbles, 5 Steps of: 1.) A Displacing Event 2.) Credit Creation/Fuel/Expanding Money Supply 3.) Captivates Investors Euphoric State 4.)  Critical Stage, Financial Distress 5.) Revulsion
  • 9:00 copper and oil, India and China
  • 11:30 Insolvency, 100 trillion
  • 15:00 60% tax or 10% per year inflation needed to balance budget
  • 23:00 School kids laugh at Geithner
  • 30:00 (Can't read notes)
  • 31:00 USD falling
  • 33:00 Geithner Image
  • 34:00 Kid for an auto Czar
  • 37:00 Unfunded liabilities
  • 41:00 Oil
  • 48:00 Electricity
  • 52:00 Demand
  • 56:00 A or B, EV's or War for oil
  • 1:01 Reverse Globalization
  • Part 2 of 3rd Hour: 2:00 How Ben How?
  • 4:30 Inflation6:30 (Can't read notes)
  • 14:00 Second wave up

This was a good listen, I'd make it a point to catch it.

ABBY NORMAL [With CHARTS]

The pundits on CNBC who appear every morning proclaim that things are returning to normal. It amazes me that such supposedly intelligent people have no idea what normal means. Since 80% of the people interviewed on CNBC manage other people’s money, I’m guessing they are just trying to stay in business by lying to the average investor. If they were honest, they would say they have no idea what the future holds. If they were outspokenly honest, they would say that a Frankenstein’s Monster is loose in the countryside and will wreak havoc on the American economy for years.

 A Nation of Ditch Diggers

“Mom, dad, do I really have to lay asphalt as a career? Why did I even go to school?”

Relax college graduate. The suits in DC have it all figured out. Your future? You have Social Security for that. For now? Asphalt work is just a temporary as we “fix” the economy. It’s amazing to me that solutions and “fixes” that would otherwise be labeled as moronic actually gain traction when fear is in the air.

A New World Order (H/T JerryLee, Chart Jerry Noted China then and now!)

Just Short of a Sign in Times Square: China airs fears on US debt, dollar: lawmaker

"It's clear that China would like to diversify from its dollar investments," the lawmaker said at the Center for Strategic and International Studies, a Washington think-tank.

The Still Over-Leveraged Consumer

One of the primary reasons I am not a big believer in the green shoots thesis is due to the fragile financial condition of the Consumer.

Despite spending less time at the mall, throttling back consumption, and increasing their savings rate, the US consumer still finds themselves with too much debt and too little savings. Even worse (at least for the economy), they lack the income or the equity to fund their previous lifestyles.

In my opinion, consumer spending remains an unhealthy ~68% of the economy. While this is down from a peak of ~71%, it is way up from the 63% of the 1950s. The difference over that period has been the massive increase in revolving credit and accessible secure lending (2nd mortgages, HELOCs, etc.).

“Despite recent frugality, consumers have barely dented their debt load. The Federal Reserve will offer a fresh peek at that mountain on Thursday, when it releases its “flow of funds” data for the first quarter.

By the end of 2008, households were on the hook for $13.8 trillion in debt — nearly matching the $14.3 trillion output of the entire U.S. economy, not adjusted for inflation, that year.

Households are shedding debt; they’re just not doing it very quickly. They owed roughly 130% of disposable income at the end of 2008, down only slightly from a record 133% in the first quarter of 2008.”

I am not sure that really puts this into the proper context of indebtedness.

Changing Times, Different Choices

Most people do not commit crimes because they have controls in their lives which mean that the costs of crime far outweigh the benefits of crime. Such controls include attachment to family (e.g., marriage and children), commitment to a career, active involvement in a community and reputation, and belief in rules and discipline. Certain groups, i.e., the young, the working class, the underclass, etc. are less likely to have such controls in their lives and the benefits of crime clearly outweigh the risks of being caught and punished.
-- Sociology, Steve Chapman (Letts and Lonsdale, 2004)

With more and more of people being forced into a lower economic strata or worrying about thier family's survival rather than "career commitment" or personal reputation, is it any wonder that we are seeing developments like those described in the following Los Angeles Times report, "Vehicle Fraud Cases Heat Up Amid Economic Downturn"?

Suspicious car fires or arson rise 27% in the first quarter compared with a year earlier as owners seek a payoff.

Reporting from Sacramento — Motorists unable to afford payments on pricey cars and gas-guzzling sport utility vehicles in this recession are turning to a time-tested financing solution: matches.

Insurance cheats are torching their vehicles in remote deserts. They're pushing them off cliffs. They're sinking them in lakes or ditching them in Mexico in the hopes of getting their policies to pay off, fraud investigators say.

Nationwide, suspicious vehicle fires or arson increased 27% in the first quarter of this year compared with a year earlier, according to the National Insurance Crime Bureau, an industry-supported agency that investigates all types of insurance fraud. So-called owner give-ups -- cars intentionally destroyed or abandoned -- jumped 24%.

Barbecuing a Beamer is one of the more dramatic types of suspected insurance fraud that's increasing in this economic downturn, the deepest in more than half a century. But it's not the only one. Suspicious personal injury slip-and-fall claims increased 60% in the first quarter; staged car accident cases were up 34% and commercial property fire/arson cases jumped 76%.

(More)

California to lead us into Abyss

 

June 1 (Bloomberg) -- There is an old joke that a borrower dies if everyone stops believing in him. A look at the history of financial crises suggests there is a kernel of truth in this.

 

That's why the California budget crisis may well lead to a second financial calamity that would be far worse than anything experienced over the past 18 months.

California is, of course, facing a debacle. Voters rejected a series of ballot initiatives designed to restore some sense of sanity to the state's budget. As a result, California is more than $21 billion in the hole.

Governor Arnold Schwarzenegger is struggling to find enough spending reductions to close the gap, but investors are skeptical. According to Fitch Ratings, which in March downgraded California's general obligation bond rating, California has the worst rating of any state.

Even amid economic calamity, the people of California are relatively wealthy, and the state's economy is an impressive engine.

 

Sales - Still More Economic Cliff Diving (Charts on Page)

This morning’s Redbook and ICSC data got my curiosity up so off I went to the Fed to look for some sales data. There you can find all types of data, except of course, whatever it is that would make the most sense for them to chart, like the Redbook and ICSC data! They chart all types of other data though, like tobacco tax collections for every state, fuel taxes, gaming taxes, entertainment taxes, etc. And I did find a few interesting charts in regards to sales… let’s take a look.

We’ll start with the big picture Total Retail Sales presented in Year-Over-Year (yoy) percent change.

Weak Hiring and the Jobless Recovery

First a report from Bloomberg: U.S. Third-Quarter Hiring Plans at Record Low, Manpower Says

U.S. employers’ hiring plans for the third quarter held at a record low, signaling fired workers will have to wait many more months to find a job, a survey showed.

Companies are “treading slowly and watching with guarded optimism, hoping a few quarters of stability will be the precursor to the recovery,” Jonas Prising, president of the Americas for Milwaukee-based Manpower, said in a statement.

That fits with the Fed Economic Paper I posted yesterday: Jobless Recovery Redux? that argued a jobless recovery is likely.

Our analysis generally supports projections that labor market weakness will persist, but our findings offer a basis for even greater pessimism about the outlook for the labor market.

This projection indicates that the level of labor market slack would be higher by the end of 2009 than experienced at any other time in the post-World War II period, implying a longer and slower recovery path for the unemployment rate. This suggests that, more than in previous recessions, when the economy rebounds, employers will tap into their existing workforces rather than hire new workers. This could substantially slow the recovery of the outflow rate and put upward pressure on future unemployment rates.

And Frankels (on the NBER recession Business Cycle Dating Committee) notes: The labor market has NOT yet signaled a turning point (ht Mark Thoma, Paul Krugman)
The members of the NBER Business Cycle Dating Committee (of which I am one) will be responsible for calling the trough when the time is right.

Speaking entirely for myself, I like to look at the rate of change of total hours worked in the economy. Total hours worked is equal to the total number of workers employed multiplied by the average length of the workweek for the average worker. The length of the workweek tends to respond at turning points faster than does the number of jobs. When demand is slowing, firms tend to cut back on overtime, and then switch to part-time workers or in some cases cut workers back to partial workweeks, before they lay them off. Conversely, when demand is rising, firms tend to end furloughs, and if necessary ask workers to work overtime, before they hire new workers. (The hours worked measure improved in April 1991 and November 2001 which on other grounds were eventually declared to mark the ends of their respective recessions.) The phenomenon is called “labor hoarding” and it is attributable to the costs of finding, hiring and training new workers and the costs in terms of severance pay and morale when firing workers.
Note that Frankels is making similar arguments as the San Francisco Fed paper - except he is discussing the end of the recession as opposed to a jobless recovery.

And the following graph shows the aggregate hours index from the BLS over several recessions

Five stock market experts share their views

Michael Covel is the author of two best selling books, Trend Following and The Complete Turtle Trader. While educating his followers on his blog, Michael just finished his first film, Broke: The New American Dream. This documentary not only details the causes of our economic problems, but also features eye-opening revelations from today's top financiers and traders.

I have no idea what stock, bond, currency, and commodity markets will do over the next six months. How many of the great fundamental analysts had calls that made their clients money over 2008? Not many as trillions of dollars were lost through buy and hold prediction nonsense. Sure, some very smart analysts will get the next six month's of predictions right, but then again when you flip a coin you have a 50% chance of being right too. Does that mean there is no hope for profit? No. If you can put aside the need to try and predict the future and if you can instead trade as a technical trader, like trend followers who made fortunes in 2008, you will have a chance to make money going forward. Bottom line, if we can't know the future and if we can't know what direction any market will trend it is far better to have a plan to systematically profit by reacting to market moves versus a reliance on the false hope of predictions. Trading for profits speech aside, how do I feel personally about the economy? Broke is definitely the new American dream.

By the Numbers?

Although I believe that our government has every incentive to make the economy look better, employment appear stronger, and inflation seem weaker than they really are, I'm not a statistician or an economist (for what it's worth, some might view that as a good thing).

Hence, while I can't sit here and say for certain that our government manipulates the data in such a way that it has become meaningless, common sense tells me, for instance, that the Bureau of Labor Statistics' assumption that start-up businesses accounted for 43,000 new construction jobs in May is reason enough to doubt whatever Washington is telling us (for a bit more color on this particular statistic, check out "May Employment Report Not Believable" at PeakProsperity.com)

With that in mind, it's not hard to side with the views of the statistical gadfly cited in the following SmartMoney report, "True or False: U.S. Economic Stats Lie."

How’s the economy treating you? Chances are, your answer is colored largely by three things: whether you’re working (if you want to), how much you’re making and how quickly your expenses are rising. Economists rely heavily on the same factors to judge the nation’s health. At last count, 9.4% of the workforce is jobless. Compared with a year ago, the goods and services we produce are worth 5.7% less while the ones we buy are 0.7% cheaper.

 US cities may have to be bulldozed in order to survive

Dozens of US cities may have entire neighbourhoods bulldozed as part of drastic "shrink to survive" proposals being considered by the Obama administration to tackle economic decline.
The government looking at expanding a pioneering scheme in Flint, one of the poorest US cities, which involves razing entire districts and returning the land to nature.

Local politicians believe the city must contract by as much as 40 per cent, concentrating the dwindling population and local services into a more viable area. The radical experiment is the brainchild of Dan Kildee, treasurer of Genesee County, which includes Flint.

Having outlined his strategy to Barack Obama during the election campaign, Mr Kildee has now been approached by the US government and a group of charities who want him to apply what he has learnt to the rest of the country.

Mr. Kildee said he will concentrate on 50 cities, identified in a recent study by the Brookings Institution, an influential Washington think-tank, as potentially needing to shrink substantially to cope with their declining fortunes.

Most are former industrial cities in the "rust belt" of America's Mid-West and North East. They include Detroit, Philadelphia, Pittsburgh, Baltimore and Memphis.

In Detroit, shattered by the woes of the US car industry, there are already plans to split it into a collection of small urban centres separated from each other by countryside.

"The real question is not whether these cities shrink – we're all shrinking – but whether we let it happen in a destructive or sustainable way," said Mr Kildee. "Decline is a fact of life in Flint. Resisting it is like resisting gravity."

Karina Pallagst, director of the Shrinking Cities in a Global Perspective programme at the University of California, Berkeley, said there was "both a cultural and political taboo" about admitting decline in America.

"Places like Flint have hit rock bottom. They're at the point where it's better to start knocking a lot of buildings down," she said.

Flint, sixty miles north of Detroit, was the original home of General Motors. The car giant once employed 79,000 local people but that figure has shrunk to around 8,000.

Unemployment is now approaching 20 per cent and the total population has almost halved to 110,000.

(More)

 

19 Comments

gregroberts's picture
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Re: Daily Digest - June 13

fujisan's picture
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Re: Daily Digest - June 13

US cities may have to be bulldozed in order to survive - Telegraph

Dozens of US cities may have entire neighbourhoods bulldozed as part of drastic "shrink to survive" proposals being considered by the Obama administration to tackle economic decline.

The government looking at expanding a pioneering scheme in Flint, one of the poorest US cities, which involves razing entire districts and returning the land to nature.

Local politicians believe the city must contract by as much as 40 per cent, concentrating the dwindling population and local services into a more viable area.

...

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Re: Daily Digest - June 13

Most people do not commit crimes because they have controls in their lives which mean that the costs of crime far outweigh the benefits of crime. Such controls include attachment to family (e.g., marriage and children), commitment to a career, active involvement in a community and reputation, and belief in rules and discipline. Certain groups, i.e., the young, the working class, the underclass, etc. are less likely to have such controls in their lives and the benefits of crime clearly outweigh the risks of being caught and punished.
-- Sociology, Steve Chapman (Letts and Lonsdale, 2004)

Great quote - and by and large, the wealthy are the ones who write the laws, hence so called crimes are typically 'blue collar' - only recently have white collar crimes of the rich gotten more attention. the whole system is a heirarchal scam, and morals are largely an illusion.

hucklejohn's picture
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Re: Daily Digest - June 13

Davos:  Where is the item

  • California to lead us into Abyss ?
Ken C's picture
Ken C
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Re: Daily Digest - June 13
hucklejohn wrote:

Davos:  Where is the item

  • California to lead us into Abyss ?

 

Here are a couple of articles about California Finances

 

http://www.ocregister.com/articles/california-tax-percent-2446598-debt-o...

 

http://www.timesunion.com/ASPStories/story.asp?StoryID=803217

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Re: Daily Digest - June 13
paranoid wrote:

Most people do not commit crimes because they have controls in their lives which mean that the costs of crime far outweigh the benefits of crime. Such controls include attachment to family (e.g., marriage and children), commitment to a career, active involvement in a community and reputation, and belief in rules and discipline. Certain groups, i.e., the young, the working class, the underclass, etc. are less likely to have such controls in their lives and the benefits of crime clearly outweigh the risks of being caught and punished.
-- Sociology, Steve Chapman (Letts and Lonsdale, 2004)

Great quote - and by and large, the wealthy are the ones who write the laws, hence so called crimes are typically 'blue collar' - only recently have white collar crimes of the rich gotten more attention. the whole system is a heirarchal scam, and morals are largely an illusion.

 

Exactly, which causes a societal stigma that goes along with being "blue collar", which causes the system to become a self-perpetuating cycle, while the real "criminals", aren't burdened with said stigma, and steal exponentially more than the poor, who are "marked" as undesirable and get the society's disdain, which makes them even more likely to. . . . . . commit more "blue collar" crime. 

 

Glad to see that somebody gets it.

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Re: Daily Digest - June 13

 Sad, but ironic in a sick way that "legalized" white collare crime can leverage the blue collar crime.

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Re: Daily Digest - June 13

 Davos: Where is the item

California to lead us into Abyss ?

Hello HuckleJohn:

And to everyone else on the blog as well, sorry I missed that, I work from the top down and must have been interrupted and forgot to post it. It is there now. Thanks for catching it. Take care

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Re: Daily Digest - June 13

I have never heard of a city having to downsize itself by bulldozing houses before! Where's the fun in that. I am sceptical, it sound like a housing industry excuse to get rid of some inventory to try and bump the price up.

 

 

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Re: Daily Digest - June 13

Not a gimmick, just the natural result of an un-natural credit bubble and the malinvestments that accompany it:

http://www.nakedcapitalism.com/

Quote:

Saturday, June 13, 2009

Low interest rates lead to overbuilding leads to demolition

 

Listen to this article. Powered by Odiogo.com

Submitted by Edward Harrison of the site Credit Writedowns.

The chain of events whereby easy money leads to malinvestment that impoverishes a society is now fully manifest in the United States. You remember Victorville, CA where new homes were being demolished because it cost more to maintain them than to demolish them? (see post here) Well, that same phenomenon is going to be at work all across the USA because we have just witnessed one of the greatest episodes of malinvestment in the history of the world.

An article over at the Telegraph discussing this possibility has really grabbed people’s attention (137 diggs, 66 delicious bookmarks, 474 comments at last count) and seems to be everywhere. Here is a snippet.

The government looking at expanding a pioneering scheme in Flint, one of the poorest US cities, which involves razing entire districts and returning the land to nature.

Local politicians believe the city must contract by as much as 40 per cent, concentrating the dwindling population and local services into a more viable area.

The radical experiment is the brainchild of Dan Kildee, treasurer of Genesee County, which includes Flint.

Having outlined his strategy to Barack Obama during the election campaign, Mr Kildee has now been approached by the US government and a group of charities who want him to apply what he has learnt to the rest of the country.

Mr Kildee said he will concentrate on 50 cities, identified in a recent study by the Brookings Institution, an influential Washington think-tank, as potentially needing to shrink substantially to cope with their declining fortunes.

Most are former industrial cities in the "rust belt" of America's Mid-West and North East. They include Detroit, Philadelphia, Pittsburgh, Baltimore and Memphis.

In Detroit, shattered by the woes of the US car industry, there are already plans to split it into a collection of small urban centres separated from each other by countryside.

Now, Mish has a post over on his blog which reminds us that the median home price in Detroit is now $6,000. Obviously what is happening in Flint right now is coming to Detroit very soon. But, I also want to remind you of the Victorville incident and exurb overbuilding – it is not just cities. No one wants that housing stock. According to Google Maps, it takes 2 hours and 40 minutes to commute 81 miles from Victorville to LA in traffic. That’s not something many people are willing to do. And if you look on a map, you will notice that Victorville, far inland, doesn’t have many other huge cities near by either (Barstow is 34 miles away and has great outlets for those of you who like shopping).


View Larger Map

Translation: Much of the building in Victorville was malinvestment. This is why houses are being demolished there. You should ask yourself how did we get to a place where entire cities are shrinking via demolition (Flint), where other cities have a median home price of $6,000 (Detroit), and where other previously sleepy towns are also shrinking via demolition (Victorville). Why is the U.S. so shattered financially that we must resort to demolition houses in order to move forward? The answer, of course, is easy money.

  1. Because of the rise of deregulation, a shadow banking system forms in the United States and globally. Long-Term Capital Management, famously leveraged 100-to-1, the most famous part of the shadow banking system fails spectacularly and is bailed out.
  2. The bust frightens the Fed under Alan Greenspan, which pumps liquidity into the market due to this event and the later Y2K scare.
  3. We get a massive bubble in shares, especially technology and telecom stocks.
  4. The bust frightens the Fed under Alan Greenspan, which, fearing deflation lowers interest rates to 1%.
  5. A massive housing bubble expands with huge overbuilding of the U.S. housing stock
  6. The bust frightens the Fed under Ben Bernanke, which, fearing deflation lowers interest rates to 0% and engages in both quantitative and qualitative easing.

Do you see something wrong with this picture?

idoctor's picture
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Re: Daily Digest - June 13

Ron Paul 6/12/2009

 www.youtube.com/watch

 Paul Craig Roberts

 Bob Chapman

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Re: Daily Digest - June 13

Nothing wrong with downsizing a city - in fact, if you deconstruct rather than bulldoze, you can also create more jobs (including jobs to take apart buildings, reuse the material and/or to transport it elsewhere). Getting rid of houses and other buildings, as well as tearing up pipes and streets, taking down lines, and then truly restoring the land itself would make it easier to have farms near the population, thus decreasing food transportation costs and fuel use. Closer farms is a plus if you think 1) commodity prices are going to increase because Americans are overleveraged; 2) peak oil is upon us; 3) it's generally better to depend on people you know rather than far-flung corporations, governments, etc; and/or 4) the dollar is going to collapse in value with high inflation and a lack of investor confidence in the U.S.

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Re: Daily Digest - June 13
LuciusQuintius wrote:

Nothing wrong with downsizing a city - in fact, if you deconstruct rather than bulldoze, you can also create more jobs (including jobs to take apart buildings, reuse the material and/or to transport it elsewhere). Getting rid of houses and other buildings, as well as tearing up pipes and streets, taking down lines, and then truly restoring the land itself would make it easier to have farms near the population, thus decreasing food transportation costs and fuel use. Closer farms is a plus if you think 1) commodity prices are going to increase because Americans are overleveraged; 2) peak oil is upon us; 3) it's generally better to depend on people you know rather than far-flung corporations, governments, etc; and/or 4) the dollar is going to collapse in value with high inflation and a lack of investor confidence in the U.S.

 

Turning back to famland to save fuel sounds reasonable, but is that what they are actually planning, from what I have seen the tendency is to bulldoze and leve a concrete slab just sitting there for ever and a day.

 

 

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fujisan's picture
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Re: Daily Digest - June 13

German firm plans gold ATMs to meet growing demand | Funds | Reuters

* Gold ATMs intended to whet appetite for physical gold

* Private investor inquiries doubling every six weeks

* Plan is for 500 gold ATMs in Germany, Switzerland, Austria

By Peter Starck

FRANKFURT, May 19 (Reuters) - Private investors should hold up to 15 percent of their wealth in physical gold, according to a German asset management company which plans to set up 500 "Gold-To-Go" ATMs in Germany, Switzerland and Austria this year.

A gold-dispensing automatic teller machine (ATM) was on display at Frankfurt's main railway station for a one-day marketing test on Tuesday.

...

 TG-Gold-Super-Markt: Gold to Go

Times are changing. We are also changing and taking a step forward.
TG-Gold-Super-Markt has developed the first gold vending machine in the world.

The next fully functional GOLD-To-Go vending machine (pilot production) will be presented on June 16, 2009 at the Frankfurt Airport, departure hall A.

How does it work? Quite simple. Money in – gold out.

...

 

Davos's picture
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Re: Daily Digest - June 13

 Hello Fujisan: Good post, I'll use it as a h/t. I am surprised they didn't do it the other way around, gold in money out. Take it easy

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Re: Daily Digest - June 13

There is a 30% premium to the spot market with these ATM machines. That is a pretty stiff penalty to pay for convenience. It will be interesting to see how successful this venture is.

Ken

 

Davos's picture
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Re: Daily Digest - June 13

 Hello:

Hey, I finally found time to get through FSN for this week. It is very good. Since I didn't make it in time before today was posted here it is.

 

FSN Part 3A and 3 B June 13, 2009 Real, WinAmp, Windows, Mp3

3A: All times +/-

  • 16:00 2 trillion dollar portfolio, 9 trillion in credit extended
  • 19:00 Bond market and Fed and deficits, 50 bn week, Mortgages down, Refis Down, Deficits, Jobs, FCB's buying only short term (T-bills)
  • 23:00 Bonds and Currency debasement
  • 25:00 Paygo 3.5 trillion 2010 budget, spend repent, spend repent, spend repent ...
  • 28:00 Tax, tax, tax the tapped out
  • 29:17 Save the economy and sacrafice the dollar or save the dollar and sacrafice the economy. A or B?
  • 30:40 Emerging world market recovery
  • 33:00 Oil, contrary to how economists have looked at this before is NOT static
  • 33:00 media vacume
  • 39:00 CB insolvent just like C(iti)
  • 41:00 BRIC (Brazil. Russia, India, China) dollar meeting, China no more accumulation of USD and phasing out USD
  • 47:00 Admin clueless deisn't know the economy
  • 50:00 Other currency's if you don't like gold but worry about the USD

3B

  • 3:31 $72 buck oil DURING a recession, 35 OPEC projects cancelled, IEA, 2012
  • 8:23 (Can't read notes, written while at dump unloading trash)
  • 9:20 Shiping costs and oil
  • 12:00 Factories move back to US
  • 18:00 new life style
  • 22:50 Cantarell Oil Field - production worse than pessimistic yeild expectations
  • 24:00 Food, sotck up
  • 29:00 SHADOW STATS JOHN WILLIAMS, unemployment figures
  • 31:50 Hype, #'s bad, worse we have had since WWII, most everything down 75%, worse since GD1
  • 34:00 Doomed to printing press
  • 35:20 Financial collapse as USD becomes worthless
  • 35:50 College professors (Summers, Romer, Bernanke) theory isn't reality
  • 37:34 Bernanke is following his 2002 speach he gave on debasing the USD in order to create inflation
  • 38:52 Financial Channels
  • 39:00 Worst financial crisis hasn't even begun
  • 53:00 Inflation or deflation? Inflation! Q & A
  • 55:00 Mish about China's forced buying Q&A
  • 1:00:00 Government bullion banks JP Morgan, Goldman Sachs and Deutsch?
  • 1:05:00 Infaltion/Deflation and credit destruction
  • 1:09:00 What will happen to other currencies that are pegged to the USD if/when the USD tanks?

 

 

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Re: Daily Digest - June 13

Peter Schiff on the Commodities Watch Radio

 1.

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