Daily Digest

Daily Digest 10/30 - Eurozone Economy Grounded, Gold Will Outlive Dollar, California is Broke

Saturday, October 30, 2010, 9:48 AM
  • Gold Will Outlive Dollar Once Slaughter Comes: John Hathaway
  • California Is Broke - 19 Reasons Why It May Be Time For Everyone To Leave The State Of California For Good
  • One-Sided Compromise
  • The Euro-Zone Economy: Grounded
  • Needing Students, Maine School Hunts in China
  • Homeowners Facing Foreclosure Demand Recourse
  • Bernanke’s Reluctance to Speak Out Rankles Some
  • Energy: Turning up the Power
  • Plastics: There And Back Again

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Gold Will Outlive Dollar Once Slaughter Comes: John Hathaway (woodman)

Whether prolonged or sudden, the transition to a stable monetary system will become possible only when the shortcomings of the status quo become unbearable. Such a transition is, by definition, nonlinear. So central-bank soothsaying based on the extrapolation of historical data and the repetition of conventional wisdom offers no guidance on what lies ahead.

California Is Broke - 19 Reasons Why It May Be Time For Everyone To Leave The State Of California For Good (pinecarr)

Large tent cities have been springing up all over the state of California….So why doesn't the state government of California just fix many of these problems? Well, the truth is that it simply cannot. The state government is flat broke.

One-Sided Compromise (pinecarr)

Unfortunately, compromises are never one-sided; they are only construed as such. Though the reporting failed to emphasize it, Mr. Geithner actually agreed to a massive shift of monetary power in exchange for China's empty concessions. The shareholdings and board composition of the huge and powerful International Monetary Fund (IMF) have now been shifted. China will now become the third largest shareholder of the IMF and the developing economies will get a six percent larger voting share. Two European states will lose their seats on the IMF's board in favor of developing countries.

The Euro-Zone Economy: Grounded (jdargis)

At the nadir of the recession, this middling course served France better than Germany’s served it. The French economy fell less hard than the others because it was not as reliant on exports as Germany, or as hooked on credit-financed consumption as Spain and Ireland. The state plays a big role in France, which cushioned the downturn. A dollop of discretionary fiscal stimulus (2.25% of GDP in 2009-10, on the IMF’s reckoning) helped.

Needing Students, Maine School Hunts in China (jdargis)

“We are going full-bore,” Dr. Smith said last week in his office at the school, Stearns High, where the Chinese words for “hello” and “welcome” were displayed on the dry-erase board and a Lonely Planet China travel guide sat on the conference table. “You’ve got to move if you’ve got something you believe is the right thing to do.”

Homeowners Facing Foreclosure Demand Recourse (jdargis)

As lenders have reviewed tens of thousands of mortgages for errors in recent weeks, more and more homeowners are stepping forward to say that they were victims of bank mistakes — and in many cases, demanding legal recourse.

Bernanke’s Reluctance to Speak Out Rankles Some (jdargis)

“The chairman’s relative reticence is unusual, but it reflects the difficult circumstances in which the Fed now operates,” said Iwan W. Morgan, a University of London historian who studies American fiscal policy. “Its credibility, which was so high in the Volcker and early Greenspan years owing to its success in constraining inflation, is now at its lowest ebb since the inflationary 1970s.”


Energy: Turning up the Power (Sam R.)

The world's thirst for oil (and our sluggish investment in alternative energy) means we will be caught short when global crude production reaches its limits — and some experts say it has already happened. That's the forecast of the Peak Oil scenario, which posits that the sharp decline in oil supplies will trigger a sudden economic collapse. "The era of happy motoring is over," says social critic James Howard Kunstler; his 2005 book, The Long Emergency, describes a grim post-oil world. Bottom line: Buy sturdy shoes, because you'll be walking a lot. "Life in the U.S.A. will become deeply local and austere," Kunstler says. Ominously, he adds, "The younger generation will punish the boomers for destroying their future."


Plastics: There And Back Again (jdargis)

Plastics were once regarded as wonder-materials. They are still ubiquitous, but find less favour than they used to because of the very stability and persistence that won them plaudits in the first place. Persistence is not a quality to be desired in something that gets thrown away, and so much plastic is used in packaging, and in articles that are disposable, that many people now see conventional petrochemical plastics as a nuisance and a threat.

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."


rjs's picture
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Re: Daily Digest 10/30 - Eurozone Economy Grounded, Gold ...

thanks rjs!

Adam Taggart's picture
Adam Taggart
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Re: Daily Digest 10/30 - Eurozone Economy Grounded, Gold ...

The link for the "One-Sided Compromise" article has now been fixed above.  -- cheers,  A 

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Diapason Explains Why Hyperinflation Is Blackhawk Ben's End Goal

From Zerohedge....Is The Fed TRYING To Force A Surge In Commodity Prices And Input Costs? Diapason Explains Why Hyperinflation Is Blackhawk Ben's End Goal.  At: 


ZH wrote:


A Fed paper released in September, which we luckily missed as otherwise it would have led to the collective death through uncontrollable foaming in the mouth of the entire Zero Hedge staff, was "Oil Shocks and the Zero Bound on Nominal Interest Rates", in which author Martin Bodenstein (an econ Ph.D.) argues that oil price shocks (i.e., surges in the price of oil such as the one we are about to experience courtesy of a fresh trillion in liquidity about to be unleashed by the Fed) are... wait for it... beneficial to GDP and stimulative to the interest-rate sensitive parts of the economy. To wit: "In fact, if the increase in oil prices is gradual, the persistent rise in inflation can cause a GDP expansion.". Yes you read that right. The Fed is stealthily floating the idea that a surge in oil prices will be for the greater good. In essence, the Fed is telegraphing that while it acknowledges that oil is about to jump to over $100, it won't be as bad as those with a functioning brain dare to claim. And, as we show below, it will actually be a very good thing! While we would probably get a massive lethal subdural hemorrhage if told to argue a view so blatantly and stupefyingly demented, insane and, simply said, wrong, as that espoused by Bodenstein, we are glad that Sean Corrigan of Diapason has gone the extra mile to not only expose the Fed charlatans for their voodoo gimmickry in this narrow topic, and brings up an even more critical idea, which is that the Fed "actually welcomes the current surge in the prices of many of the staples of everyday life; that it actually exults in the drain being exerted on family budgets; that it revels in the squeeze on profit margins being suffered by already-struggling small businesses, because it imagines this will serve to lower the reckoning of the ethereal construct of a generalized, future real interest rate and that this alone will serve to shower riches upon all who are presently suffering, in comparison for the present woes."

That nobody has reached this conclusion before is explainable - it is something only the brain of an illogical, demented, perverted genocidal madman's brain can come up with. Which is why we are now convinced the Fed is hoping for not only mild inflation, but an outright surge in prices. And since the Fed is confident that it can stop hyperinflation (as did that other idiot Rudy von Havenstein), the only logical outcome is that real, prevailing hyperinflation is what is imminent as this is precisely what the intermediate goal of Fed policy ultimately is!


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Re: Daily Digest 10/30 - Eurozone Economy Grounded, Gold ...

Woodman, great article by John Hathaway!  It is incredible to me to see something that insightful in a more main stream on-line publication.  Maybe yet another indicator that the bell-curve of awareness is shifting closer and closer to the main stream...

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