Daily Digest

Daily Digest 10/10 - How Hyperinflation Will Happen, Mortgage Banks Default On Loans, Aquifers In Jeopardy

Sunday, October 10, 2010, 3:37 PM
  • The Australian Government's Idea Of A Fair And Balanced Meeting
  • How Hyperinflation Will Happen
  • Gonzalo Lira On The Coming Middle-Class Anarchy
  • U.S. Dollar: Long Term Trend and Triffin's Dilemma
  • Mortgage Bankers Association Strategic Default 
  • Junk Bonds Are Back on Top
  • Chinese Leader Denies Using Mineral Exports for Political Ends
  • Deep Waters, Slowly Drying Up

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Economy

The Australian Government's Idea Of A Fair And Balanced Meeting (TG)

"Gillard on Monday made explicit that only believers would be allowed to join her committee: "Parliamentary members of the committee will be drawn from those who are committed to tackling climate change and who acknowledge that effectively reducing carbon pollution by 2020 will require a carbon price."

How Hyperinflation Will Happen (james_knight_chaucer)

Inflation is when the economy overheats: It’s when an economy’s consumables (labor and commodities) are so in-demand because of economic growth, coupled with an expansionist credit environment, that the consumables rise in price. This forces all goods and services to rise in price as well, so that producers can keep up with costs. It is essentially a demand-driven phenomena.

Hyperinflation is the loss of faith in the currency. Prices rise in a hyperinflationary environment just like in an inflationary environment, but they rise not because people want more money for their labor or for commodities, but because people are trying to get out of the currency. It’s not that they want more money—they want less of the currency: So they will pay anything for a good which is not the currency.

Gonzalo Lira On The Coming Middle-Class Anarchy

They’ve never missed a mortgage payment—Brian and Ilsa are the kind upright, not to say uptight 60-ish white semi-upper-middle-class couple who follow every rule, fill out every form, comply with every norm. In short, they are the backbone of America.

U.S. Dollar: Long Term Trend and Triffin's Dilemma (Davos)

Unfortunately, Triffin wrote, U.S. trade deficits eventually would undermine the foreign exchange value of the dollar because foreign accounts would hold an increasing quantity of dollars. Restating Triffin's argument in contemporary terms, as the proportion of dollar claims held abroad versus U.S. gross domestic product (GDP) increases, the foreign exchange value of the dollar must decline if dollar interest rates do not increase at about the same rate as the foreign dollar claims.

Mortgage Bankers Association Strategic Default (Davos)

The Mortgage Bankers Association strategically defaults on its loan after shaming homeowners who do the same.

Junk Bonds Are Back on Top (jdargis)

Like many blue-chip corporations, companies with less-than-sterling credit are rushing to sell bonds and take advantage of low interest rates. In the first nine months of this year, a record-breaking $275 billion of junk bonds have been issued worldwide, up from $163 billion during the period last year, according to the financial data provider Dealogic, a research company.

Energy

Chinese Leader Denies Using Mineral Exports for Political Ends (jdargis)

Commerce Minister Chen Deming suggested instead in a television interview on Sept. 26 that Chinese entrepreneurs in the rare earth industry might have halted shipments because of their own feelings toward Japan. There are 32 companies in China with export licenses for rare earths and 10 of them are foreign; Mr. Deming did not address why the 10 foreign companies would have strong feelings toward Japan, or why all companies in the Chinese industry halted shipments on the same day, Sept. 21.

Environment

Deep Waters, Slowly Drying Up (jdargis)

Aquifers, like fish stocks, are most at risk when they cross national borders, making property rights weaker. Groundwater provides about a fifth of the planet’s water needs and half its drinking water. In arid countries such as Libya or Saudi Arabia, that figure is close to 100%. Almost 96% of the planet’s freshwater resources are stored as groundwater, half of which straddles borders. UNESCO, a United Nations body, estimates that 273 aquifers are shared by two or more countries.

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5 Comments

Montana Native's picture
Montana Native
Status: Silver Member (Offline)
Joined: Mar 17 2009
Posts: 162
Re: Daily Digest 10/10 - How Hyperinflation Will Happen, ...

Loved the MBA video and the zero hedge article on HAMP modifications. These banksters are shameless, I hope they get sent back  where they came from.....HELL.

SingleSpeak's picture
SingleSpeak
Status: Gold Member (Offline)
Joined: Nov 30 2008
Posts: 496
Re: Daily Digest 10/10 - How Hyperinflation Will Happen, ...

Mortgage Bankers Association Strategic Default (Davos)

The Mortgage Bankers Association strategically defaults on its loan after shaming homeowners who do the same.

Classic!

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Daily Digest 10/10 - How Hyperinflation Will Happen, ...

Love it.......

Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
Re: Daily Digest 10/10 - How Hyperinflation Will Happen, ...

Regarding that article - How Hyperinflation Will Happen

I don't quite get why there will be a sudden "dumping" of Treasuries.  I can see though many large owners not continuing new purchases, which still means a finance crisis for the US trying to roll over debt - much of which is short term.  Also, entities like mutual funds have to stay in Treasuries if that is the purpose of the fund; they can't just switch commodities - how big a percent of US debt do funds own?

Jeff Borsuk's picture
Jeff Borsuk
Status: Silver Member (Offline)
Joined: Jul 25 2008
Posts: 150
Re: Daily Digest 10/10 - How Hyperinflation Will Happen, ...

too funny!

How perfect!

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