Daily Digest

Daily Digest 1/14 - Europe Fears Chinese Super-Creditor, Cleaner Energy in LA, Gas Could Return to $4/Gallon

Friday, January 14, 2011, 11:00 AM
  • Fed's Fisher Says Monetary Policy Not Cure for Nation's `Fiscal Pathology'
  • Europe Fears Motives Of Chinese Super-Creditor
  • Markets Shrug Off Fresh Warnings About US Sovereign Debt
  • Li Tests Yuan IPO Market
  • 10 Things That Would Be Different If The Federal Reserve Had Never Been Created
  • In Los Angeles, Officials Announce Attainment of a Cleaner-Energy Goal
  • Gasoline’s Prepping For A Return To $4 A Gallon

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Economy

Fed's Fisher Says Monetary Policy Not Cure for Nation's `Fiscal Pathology' (robert)



The Federal Open Market Committee last month voted to push ahead with its plan to stimulate the economy by purchasing $600 billion of bonds through June. Policy makers signaled they’ll probably continue their asset purchases until the recovery strengthens and many of the 15 million unemployed Americans find work, according to minutes of their Dec. 14 meeting.

Europe Fears Motives Of Chinese Super-Creditor (pinecarr)



Mr Van Rompuy nevertheless welcomed the latest purchases of bonds from the eurozone periphery as a valuable gesture of support. "They invested even in some weak countries, so they are very confident in the solvency of some countries," he said. China has emerged as the transforming force in the eurozone debt crisis over recent days, pledging to use part of its €2.87 trillion (£1.82 trillion) reserves to safeguard global stability. The question is whether the Communist regime is hoping to extract strategic concessions in exchange.

Markets Shrug Off Fresh Warnings About US Sovereign Debt (pinecarr)



Treasury yields, which move in the opposite direction as prices, were lower in late-morning New York trade and the cost of insuring US debt against the risk of default, already below that of Germany, the euro-zone benchmark, barely budged. "My traders are shrugging it off as stuff we've heard before," said Tom Di Galoma, head of interest-rate trading at Guggenheim Partners in New York. Moody's Investors Service said in a report that the US will need to reverse an upward trajectory in the debt ratios to support its triple-A rating.

Li Tests Yuan IPO Market (pinecarr)



Li Ka-shing, Hong Kong's richest tycoon and a big investor in mainland China as the country has transformed itself into a market economy over three decades, has confirmed he will break new ground by launching the first yuan-denominated public offering in Hong Kong in the first half of this year. The 82-year-old chairman of developer Cheung Kong (Holdings) and Hutchison Whampoa last week acknowledged for the first time that he planned to sell Hong Kong units in a Chinese real-estate investment trust that will be denominated in the mainland currency.

10 Things That Would Be Different If The Federal Reserve Had Never Been Created (pinecarr)



The vast majority of Americans, including many of those who believe that they are "educated" about the Federal Reserve, do not really understand how the Federal Reserve really makes money for the international banking elite.  Many of those opposed to the Federal Reserve will point to the record $80.9 billion in profits that the Federal Reserve made last year as evidence that they are robbing the American people blind.  But then those defending the Federal Reserve will point out that the Fed returned $78.4 billion to the U.S. Treasury.  As a result, the Fed only made a couple billion dollars last year.  Pretty harmless, eh?  Well, actually no.  You see, the money that the Federal Reserve directly makes is not the issue.  Rather, the "magic" of the Federal Reserve system is that it took the power of money creation away from the U.S. government and gave it to the bankers. 

Energy

In Los Angeles, Officials Announce Attainment of a Cleaner-Energy Goal



In 2005, Mr. Villaraigosa and the Department of Water and Power made a commitment to increase the utility's use of renewable energy from 5 percent to 20 percent by the year 2010. The amount totals about 4,500 gigawatt-hours. “This is a historic and substantial accomplishment for the Department of Water and Power and the city of Los Angeles,” said Austin Beutner, the department’s general manager. “We need to continue to reduce the impact of DWP operations on the environment and do it in an economically sustainable manner.”

Gasoline’s Prepping For A Return To $4 A Gallon



As of Wednesday, the national average for regular gas stood at $3.09. That’s up nearly 4% from a month ago and more than 12% above the year-ago average, data showed. Diesel fuel has seen similar gains, with diesel prices at $3.34 per gallon as of Wednesday, up nearly 15% from a year ago at levels not seen since October 2008. And prices for both fuels are likely to continue rising.

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."

9 Comments

saxplayer00o1's picture
saxplayer00o1
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mahoosic's picture
mahoosic
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Re: Daily Digest 1/14 - Europe Fears Chinese ...

A note from the land of steady habits...

Connecticut's state government is a step closer to accepting fiscal reality with the adoption of new, more transparent accounting practices according to new governor Dannel P. Malloy. But, when the state borrows money it will still be booked as revenue. http://www.courant.com/business/hc-haar-0114-20110113,0,3125799.column

 

StrangeFoliage's picture
StrangeFoliage
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Re: Daily Digest 1/14 - Europe Fears Chinese ...

In the Fed's Fisher Says Monetary Policy Not Cure for Nation's `Fiscal Pathology' article, I loved the line“The Fed does not create government debt; fiscal authorities do.”  That's like a drug dealer saying that drug dealers don't buy illegal drugs, drug addicts do.

rjs's picture
rjs
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Posts: 445
Re: Daily Digest 1/14 - Europe Fears Chinese ...

 Fed Laugh Track: ‘Can We Borrow from the Greeks?’ - WSJ -

includes Fed officials joking about Bear Stearns and Lehman Brothers long before the crisis, November 1, 2005

msnrochny's picture
msnrochny
Status: Bronze Member (Offline)
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Posts: 57
Re: Daily Digest 1/14 - Europe Fears Chinese ...

Europe - how they got here and how it is likely to end.  Interesting overview...

 http://www.nytimes.com/2011/01/16/magazine/16Europe-t.html?_r=1&src=me&ref=general

 Americans and excess...

 http://www.businessweek.com/lifestyle/content/jan2011/bw20110112_642520.htm

And this is just too awesome...
#!
pinecarr's picture
pinecarr
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Posts: 2237
Re: Daily Digest 1/14 - Europe Fears Chinese ...

Hat-tip to Davos for the pointer to "10 Things That Would Be Different If The Federal Reserve Had Not Been Created"  as "a super read", at http://unveilingtheeconomy.blogspot.com/   

Damnthematrix's picture
Damnthematrix
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Posts: 3998
Regime falls to food crisis

Tunisian President Zine al-Abidine Ben Ali has stepped down after 23 years in power as protests over economic issues snowballed into rallies against him.

Prime Minister Mohammed Ghannouchi has taken over as interim president, and a state of emergency has been declared.

Unconfirmed reports say Mr Ben Ali and his family have left Tunisia, and that he is looking for a place of asylum.

French media say President Nicolas Sarkozy has rejected a request for his plane to land in France.

Dozens of people have died in recent weeks as unrest has swept the country and security forces have cracked down on demonstrations over unemployment, food price rises and corruption.

The protests started after an unemployed graduate set himself on fire when police tried to prevent him from selling vegetables without a permit. He died a few weeks later.

The protests came to a head on Friday as thousands of people gathered outside the interior ministry, a symbol of the regime, and many climbed onto its roof. Police responded with volleys of tear-gas grenades.

President Ben Ali, who had already promised to step down in 2014, dissolved his government and the country's parliament, and declared a state of emergency.

Then, in a televised address on Friday afternoon, the prime minister announced that he would be taking over from President Ben Ali.

Mr Ghannouchi, 69, a former finance minister who has been prime minister since 1999, promised to "respect the law and to carry out the political, economic and social reforms that have been announced".

Witnesses say soldiers have begun taking down portraits of Mr Ben Ali - an ubiquitous sign of his authoritarian rule - from billboards and on the walls of public buildings around the country.

Damnthematrix's picture
Damnthematrix
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chart of the day


ReginaF's picture
ReginaF
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Posts: 93
Re: Daily Digest 1/14 - Situation in Tunisia

Maybe somebody is interested in information about the Situation in Tunisia after Ben Ali left. A few years ago I have worked there and have still friends there and so I'm following the situation as closely as it is possible from abroad:

Situation in Tunisia today (source: friends, bloggers, german press, videos in facebook) in some areas:

- scarcity of bottled water
- Shopping Malls are burned down, shops closed
- Scarcity of bread
- Lootings an assaults
- Banks & postoffices burned down, ATM’s destroyed, widely no access to money
- Public Transport (Trains, busses) no longer work, only taxis and Louages (bigger Taxis)
- Because of lootings and assaults citizend formend armend vigiliance comitees and worked together with the military (police = corrupt)

I found the situation there more and more "stressed" in the last few years but could'nt imagine even in my wildest dreams, that it would escalate so quick -:(((

Hoping from my heart, that it gets better and more peaceful the next days.

Best
Regina (From Germany, not from Tunisia)

 

 

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