Daily Digest

Daily Digest 10/25 - Fear And Loathing In The Eurozone, The Class War Has Begun, "Extremely High Risk" Of Dollar Collapse

Tuesday, October 25, 2011, 9:48 AM
  • Fear And Loathing In The Eurozone
  • The Class War Has Begun
  • Foodies, Get Thee To Occupy Wall Street
  • OWS: Where Do We Go From Here?
  • I'm Not Crazy
  • Jim Rickards - "Extremely high risk of US Dollar collapse"
  • In Cautious Times, Banks Flooded With Cash
  • Japan Marks 6 Months Since Earthquake, Tsunami

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Economy

Fear And Loathing In The Eurozone (Ilene)

Tarullo’s speech and Hilsenrath’s article both came out on Thursday, suggesting the Fed is making an effort to broadcast its seriousness about using its tools to jump-start the moribund U.S. economy. Any large-scale program of buying bonds will essentially be another round of quantitative easing (QE3), predictably leading to increases in stock and commodity prices.

The Class War Has Begun (jdargis)

What’s as intriguing as Occupy Wall Street itself is that once again our Establishment, left, right, and center, did not see the wave coming or understand what it meant as it broke. Maybe it’s just human nature and the power of denial, or maybe it’s a stubborn strain of all-­American optimism, but at each aftershock since the fall of Lehman Brothers, those at the top have preferred not to see what they didn’t want to see. And so for the first three weeks, the protests were alternately ignored, patronized, dismissed, and insulted by politicians and the mainstream news media as a neo-Woodstock for wannabe collegiate rebels without a cause—and not just in Fox-land. CNN’s new prime-time hopeful, Erin Burnett, ridiculed the protesters as bongo-playing know-nothings; a dispatch in The New Republic called them “an unfocused rabble of ragtag discontents.” Those who did express sympathy for Occupy Wall Street tended to pat it on the head before going on to fault it for being leaderless, disorganized, and inchoate in its agenda.

Foodies, Get Thee To Occupy Wall Street (jdargis)

But other economic sectors are similarly concentrated, and have a comparable grip on public policy. Consider the industry I cover. Our national food policy is both in desperate need of reform and utterly trapped under the heel of industry influence. So, as Occupy Wall Street evolves, food policy should be on the plate. Here are four reasons why:

OWS: Where Do We Go From Here? (jdargis)

On the one month anniversary of Occupy Wall Street, filmmaker and activist Ed David went to Liberty Plaza asking where the movement will go next.

I'm Not Crazy (Trey M.)

Throughout history massive economic changes have happened. The depression happened. Many people were not prepared and they suffered. Rome was sacked, twice!

Not many US citizens have experienced massive social upheaval. We have become complacent. What that means is that we are much less prepared for massive change. In fact I would argue that we are the least prepared country. We are the furthest from self-reliance. The systems on which our very lives depend are very fragile and they are extremely vulnerable to shocks. During the Great Depression people were not so far away from self-reliance. People knew how to grow their own food and how to fix their belongings or they at least knew someone who did. That is not the case now.

Jim Rickards - "Extremely high risk of US Dollar collapse" (TomA)

“Bullard says raise rates because that’s another way to manipulate people into thinking inflation is right around the corner. Zero rates might cause people to think there is deflation, but these are all mind games between the Fed and people paying attention.

But what does that have to do with sound money? What does that have to do with the Fed? At least as it was constituted in 1913, which was to have a stable dollar. It shows how far off course we are that once you start a series of manipulations there’s no end to it.

In Cautious Times, Banks Flooded With Cash (jdargis)

Others are finding more subtle ways to stem the flow. Besides paying next to nothing on consumer checking accounts and certificates of deposit, some giants — like JPMorgan Chase, U.S. Bancorp and Wells Fargo — are passing along part of the cost of federal deposit insurance to some of their small-business customers.

Even some community banks, vaunted for their little-guy orientation, no longer seem to mind if you take your money somewhere else.

Japan Marks 6 Months Since Earthquake, Tsunami (Maarten R.)

Much of the debris has been cleared away or at least organized into big piles. In the port city of Kesennuma, many of the boats carried inland by the tsunami have been removed. Most evacuees have moved out of high school gyms and into temporary shelters or apartments.

Last week the Kyodo News agency distributed an amazing group of combination photographs showing three scenes. The first scene is right after the earthquake and tsunami hit, then three months later and finally, how the scene looks now.

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3 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
M1 and the Monkey

In Cautious Times, Banks Flooded With Cash

 Mmm.  .  .That is interesting. Too much M1? I shall dwell apon this.

Is there enough M1 to cover bondholder demands?  Probably not. But then again..  ..  ..It it is not being used.

Just thinking, you understand.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Fraudulent Defense Contractors Paid $1 Trillion
http://www.informationclearinghouse.info/article29510.htm

Fraudulent Defense Contractors Paid $1 Trillion
By Bernie Sanders

WASHINGTON, Oct. 20 -

Hundreds of defense contractors that defrauded the U.S. military received more than $1.1 trillion in Pentagon contracts during the past decade, according to a Department of Defense report prepared for Sen. Bernie Sanders.

Sanders (I-Vt.) called the report "shocking." He said aggressive steps must be taken to ensure taxpayer dollars aren't wasted.

"The ugly truth is that virtually all of the major defense contractors in this country for years have been engaged in systemic fraudulent behavior, while receiving hundreds of billions of dollars of taxpayer money," said Sanders. "With the country running a nearly $15 trillion national debt, my goal is to provide as much transparency as possible about what is happening with taxpayer money."

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