Daily Digest 11/8 - Extreme Poverty At Record Levels, Billions Moved On "Bank Transfer Day", A Slight Chance Of Meltdown
- Why Cash Is A Great Place To Be Right Now
- Extreme Poverty Is Now At Record Levels – 19 Statistics About The Poor That Will Absolutely Astound You
- What you wanted to know about Greece’s debt crisis but were afraid to ask
- ECRI Doubles Down on Recession Call; Points to "Contagion of Forward Leading Indicators"
- Marc Faber: They Can Postpone the Endgame For Five or Ten Years
- Big Banks Lose Billions on ‘Bank Transfer Day’ – But This Might Be in Their Favor
- Hit With Big Withdrawals, Fed Sells Assets, Borrows Cash
- Time to Worry: World Oil Production Finishes Six Years of No Growth
- Canadian natural resource minister “cautiously optimistic” Keystone pipeline will be approved
- A Slight Chance of Meltdown
- UK Fracking Firm Admits They Are Causing Earthquakes
- Rift In Antarctic Glacier To Create Gigantic Iceberg
The way the modern banking system works is that banks use their depositors’ funds to make loans or purchase securities. Regulators require them to hold a certain amount of capital against these “assets,” and the amount is known as the “Capital Adequacy Ratio.”
The idea is to ensure that the bank will still have money on hand if its asset portfolio goes bad.
Tonight, there are more than 20 million Americans that are living in extreme poverty. This number increases a little bit more every single day. The following statistics that were mentioned in an article in The Daily Mail should be very sobering for all of us....
So what’s the problem with Greece? In five words: Debt, debt and more debt. Essentially, it’s a tragic tale of a nation’s binge borrowing and spending. From the time Greece joined the eurozone in 2002 until the global financial shock of 2008, the country went on a maniac borrowing spree, which it used to spend wildly on all sorts of things, including building expensive stadiums and other sports facilities for the 2004 Athens Olympics (which incidentally went way over budget).
Two months ago, the ECRI made a very definitive and unwavering recession call going even so far to state that "there’s nothing that policy makers can do to head it off." Since then, the markets have rallied strongly on the heels of recent positive economic data, leading many in the mainstream financial press to accept that the U.S. has narrowly averted an impending recession and will begin to see growth. Not so, says Lakshman Achuthan, ECRI's chief economist and spokesman; citing under no uncertain terms that "nothing has changed our view."
don’t know what other people think, but what I think will happen eventually – and there are so many contradictory statements coming out that nobody really knows – but eventually the same will happen as in the United States. The ECB (European Central Bank) will print money one way or the other. And, the debts that essentially should be written down to realistic value will continue to be carried on the books of banks at unrealistic values. So, the end crisis will be postponed until the sovereigns go bankrupt.
Because some of the biggest banks are moving upward on the market and that closing some of the accounts could actually save them money, in an odd way it would seem that everyone benefited from "Bank Transfer Day."
The protesters felt a sense of accomplishment and some banks were able to offload thousands of reportedly low-balance, non-profitable accounts.
The Fed was apparently forced to take extraordinary measures to fund these withdrawals. These included the outright sale of nearly $24 billion in its Treasury note and bond holdings from the System Open Market Account. As a result, the Fed's System Open Market Account (SOMA) fell to $2.611 trillion, some $43 billion below the Fed's stated target of $2.654 trillion. Prior to this week, it had not strayed from by more than $7 billion since June. The Fed's action was not only a direct contradiction of its stated policy, but it was done without warning or explanation. It ran counter to Bernanke's penchant for telegraphing every important move the Fed makes so that the banking/speculating organizations can front-run it.
Beyond this, the world went through two recessions, one in 1980 and the second in 1981-82 which turned out to be the worst since World War II (until the current one). That curbed oil demand as economic activity sank. All the while, large oil discoveries in Alaska and the North Sea and furious drilling elsewhere produced a glut of capacity that sent prices from a high near $40 a barrel in early 1981 to about $16 a barrel six years later. As it turned out, all of these factors combined to keep world oil production below its 1980 peak until 1988.
The proposed pipeline by Alberta-based TransCanada would carry oil derived from the oil sands in Alberta, Canada, to refineries in Houston and Port Arthur, Texas. The underground pipeline would carry an estimated 700,000 barrels of oil a day, doubling the capacity of an existing pipeline from Canada.
A Slight Chance of Meltdown (jdargis)
It often takes a disaster, or the threat of one, anyway, to get people thinking about their power—otherwise they just plug in or charge it overnight, without giving a second thought to where those electrons are born. The last time New Yorkers were focused on Indian Point was in the fear-drenched aftermath of September 11. (You may recall Rudy Giuliani, in some of his first work at Giuliani Partners, vouching for Indian Point’s security with his then-associate Bernie Kerik.) Well, Giuliani’s back—starring in new advertisements, paid for by Entergy, the Louisiana-based company that owns Indian Point, in which he stands before a green screen and accentuates the energy needs of “the greatest city on Earth.” “You have the right to know the facts about this important source of electricity,” he tells us. “All of us have a right to know why Indian Point is right for New York.”
"The hydraulic fracturing of Cuadrilla’s Preese Hall-1 well did trigger a number of minor seismic events."
"The seismic events were due to an unusual combination of geology at the well site coupled with the pressure exerted by water injection as part of operations."
The rift is widening at a rate of two metres a day, said NASA project scientist Michael Studinger. When the ice breaks apart, it will produce an iceberg more than 880 square kilometres, said Mr Studinger, who is part of the US space agency's IceBridge project. But the process is not a result of global warming, he said.
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