Daily Digest

Daily Digest 10/26 - Bankers Really Do Control The World, Gewgaws And Debt Pushers, Waiting For Lehman

Wednesday, October 26, 2011, 10:46 AM
  • Loss Of Tax Break Raises Cost Of Travel, Strains U.S. Relations
  • Wall Street Isn't Winning, It's Cheating
  • It’s True, Bankers Really Do Control The World: Study
  • 2012 and the Coming Financial Crises
  • FPL Bills Will Rise To Pay For Nuclear Projects
  • Gewgaws And Debt Pushers
  • Occupy Wall Street: A Threat to the Dollar?
  • Waiting For Lehman
  • Felix Zulauf: The Die Is Cast
  • Fallout forensics hike radiation toll

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Economy

Loss Of Tax Break Raises Cost Of Travel, Strains U.S. Relations (InCalgary)

“We did it because of the budget,” explained U.S. Ambassador David Jacobson in an interview. Congress and the administration are struggling to bring down the U.S. government’s $1-trillion-plus annual deficit. Though they agree on little over how do it, they agreed on this.

Wall Street Isn't Winning, It's Cheating (adam)

"I find the one thing [the protesters] have in common revolves around the human emotions of envy and entitlement," he said. "What you have is more than what I have, and I'm not happy with my situation."

Cain seems like a nice enough guy, but I nearly blew my stack when I heard this. When you take into consideration all the theft and fraud and market manipulation and other evil shit Wall Street bankers have been guilty of in the last ten-fifteen years, you have to have balls like church bells to trot out a propaganda line that says the protesters are just jealous of their hard-earned money.

It’s True, Bankers Really Do Control The World: Study (InCalgary)

Among the top 50 corporations, 45 operate within the financial industry. Barclays PLC is the most powerful, according to the ETH study, followed by such well-known names as JPMorgan Chase & Co., UBS AG, and Merrill Lynch & Co., Inc.

The United States takes home first prize with 24 companies cracking the researchers’ top 50 list, followed by the U.K. with 8, France with 5, Japan with 4, and Germany, Switzerland and the Netherlands tying with 2 companies each. Canada has one company in the researchers’ top 50: Sun Life Financial, Inc. secures the 35th spot.

2012 and the Coming Financial Crises (James S.)

It seems to me that we may be reaching “Limits to Growth,” as foretold in the book by the same name in 1972. The book modeled the consequences of a rapidly growing world population and finite resource supplies. A wide range of scenarios was tested, but the result in nearly all scenarios was overshoot and collapse, with the timing of collapse typically being in the 2010 to 2075 time period.

FPL Bills Will Rise To Pay For Nuclear Projects (Michael W.)

The average FPL household already pays 33 cents per month for investments in nuclear energy. The new $2.20 charge would replace the current amount. FPL will be able to collect the money for one year, but can return to the PSC to ask for similar charges in future years.The change will be reflected on customer bills beginning in January, when FPL is expected to seek a larger rate increase for all electricity production to collect up to an additional $1 billion a year.

Gewgaws And Debt Pushers (Coley H.)

A juicer… That’s a gewgaw. Remember Ginsu knives? gewgaws. Even the latest hi-def television with some minor new doohickey upgrade that’s marketed as the “be all end all” is a gewgaw as far as I’m concerned. The reality is that millions of consumers line up every day to obediently tithe their wages to the QVC’s and Home Shopping Networks or the bricks and mortar equivalents at Target and Wal Mart for more worthless junk.

Occupy Wall Street: A Threat to the Dollar? (Joe P.)

The movements have been years in the making and are – in our assessment – the result of a highly intoxicating cocktail of policies that have driven recent global dynamics. The alcoholics are our policy makers; the protesters, though, are the ones stuck with the hangover. Unfortunately, it does not look like anyone is going to sober up anytime soon. With the movements embracing an array of goals and complaints, we shall focus on a common thread: sustainability of personal and government finances. However, there are diametrically opposed views on how to achieve these goals.

Waiting For Lehman (Ivo)

In the financial markets, the same thing is happening now—we are all waiting for Lehman: That sudden bankruptcy-crisis-calamity which sets off a whole series of credit events, which in turn causes massive sell-offs, plunging markets, collapsing confidence, and ultimately—just like the bankruptcy of Lehman Brothers did back in 2008—shoves the entire global financial edifice right up to the very edge of the cliff.

To the edge—and perhaps this time over it.

Felix Zulauf: The Die Is Cast (Phil H.)

Felix is an advisor to a fund that one of my office colleagues raises assets for. We were fortunate that Felix was in NYC yesterday briefly for a Barron’s conference (he has been a roundtable member for 20 years). Afterwards, he swung by the office and spent some time discussing the situation in Europe and elsewhere with us.

Environment

Fallout forensics hike radiation toll (VeganD)

The disaster at the Fukushima Daiichi nuclear plant in March released far more radiation than the Japanese government has claimed. So concludes a study1 that combines radioactivity data from across the globe to estimate the scale and fate of emissions from the shattered plant.

The study also suggests that, contrary to government claims, pools used to store spent nuclear fuel played a significant part in the release of the long-lived environmental contaminant caesium-137, which could have been prevented by prompt action. The analysis has been posted online for open peer review by the journal Atmospheric Chemistry and Physics.

Article suggestions for the Daily Digest can be sent to [email protected]. 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."

2 Comments

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
daily digest error

the 27th is marked as wednesday, hence does not appear on thusday home page...

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Why Iceland Should Be in the

Why Iceland Should Be in the News, But Is Not

Date posted: 15 August 2011
View this article online here: http://sacsis.org.za/site/article/728.1

An Italian radio program's story about Iceland’s on-going revolution is a stunning example of how little our media tells us about the rest of the world. Americans may remember that at the start of the 2008 financial crisis, Iceland literally went bankrupt.  The reasons were mentioned only in passing, and since then, this little-known member of the European Union fell back into oblivion.

As one European country after another fails or risks failing, imperiling the Euro, with repercussions for the entire world, the last thing the powers that be want is for Iceland to become an example. Here's why:

Five years of a pure neo-liberal regime had made Iceland, (population 320 thousand, no army), one of the richest countries in the world. In 2003 all the country’s banks were privatized, and in an effort to attract foreign investors, they offered on-line banking whose minimal costs allowed them to offer relatively high rates of return. The accounts, called IceSave, attracted many English and Dutch small investors.  But as investments grew, so did the banks’ foreign debt.  In 2003 Iceland’s debt was equal to 200 times its GNP, but in 2007, it was 900 percent.  The 2008 world financial crisis was the coup de grace. The three main Icelandic banks, Landbanki, Kapthing and Glitnir, went belly up and were nationalized, while the Kroner lost 85% of its value with respect to the Euro.  At the end of the year Iceland declared bankruptcy.

Contrary to what could be expected, the crisis resulted in Icelanders recovering their sovereign rights, through a process of direct participatory democracy that eventually led to a new Constitution.  But only after much pain.

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