Daily Digest 12/13 - Advice From The 1%, What's Next For UK Inflation, Rare Earth Shortages A Ticking Time Bomb?
- Michael Lewis: Advice From the 1%: Lever Up, Drop Out
- Suspend Habeas Corpus And Enact Martial Law?
- Jim Rogers: I’m Being Forced To Buy More Real Assets Like Gold and Silver
- Chart of the Day: Gold Not Living Up To Safe Haven Status
- Six Tail Scenarios That Deutsche Bank Are Watching For Next Year
- UK Inflation: What's Next?
- India Embraces Solar Power, Says Price Will Equal Thermal Power in Five Years
- Rare Earth Shortages - A Ticking Timebomb for Renewables?
We have identified two looming threats:
The first is the shifting relationship between ambitious young people and money. There’s a reason the Lower 99 currently lack leadership: Anyone with the ability to organize large numbers of unsuccessful people has been diverted into Wall Street jobs, mainly in the analyst programs at Morgan Stanley and Goldman Sachs. Those jobs no longer exist, at least not in the quantities sufficient to distract an entire generation from examining the meaning of their lives.
President Obama is threatening to veto the legislation but not so much for its suspension of habeas corpus. Rather, the bill is objectionable to the president because it would prevent the government from transferring terrorism suspects from the prison at Guantanamo Bay, Cuba, to installations in the United States, even for trial.
When GoldSeek Radio host Chris Waltzek asked Rogers whether he’s buying commodities right now, the 69-year-old commodities trader said, “Well, not at the moment, but I’m seriously considering it given what’s happening in the world . . . They [central banks] are going to loosen up even more on money. That’s not good for the world, not good at all, but that’s all they know how to do. So, I’m contemplating, being forced to buy more real assets.”
Though you wouldn't know it from Commerzbank's historical chart (above), the price of gold is falling, this morning dropping to a seven-week low of $1,650 a troy ounce. This is partly attributable to US dollar strength, as well as the disappointment of last week’s eurozone summit and subsequent warnings over a wave of credit rating downgrades. And when market liquidity is stressed, gold tends to get sold off in order to raise cash.
Jim Reid and his team from Deutsche have produced another magnificent compendium of information and prognostication in their 2012 Credit Outlook and while their up-in-quality preference (non-financial) may not be earth-shattering strategically, their timing view is of note. Instead of viewing the looming refi-ganza among European sovereigns and financials in H1 2012 as a reason for doom and gloom, they see it as the necessary evil to drive the ECB into the markets in size only for the latter half of the year to disappoint significantly as the reality of the underlying problems rear their ugly head once more. The down-then-up-then-worse-down perspective on markets for next year hardly sounds optimistic but it is the following six scenarios away from European woes that keep them up at night. From the positivity of a US housing rebound or Election year cycle to much more extreme downside risks such as geo-political concerns and non-European sovereign risks, their views on China, QE-evolution and Inflation concerns are noteworthy.
UK Inflation: What's Next? (ScubaRoo)
‘Given the sharper declines in most world food price indices in recent months, this holds out the prospect of further significant declines in the UK rate in the months ahead.
Entegra Ltd. is disputing New Delhi’s claims of sluggish performance, with its Chairman Mukul S. Kasliwal commenting that his firm faced problems raising financing for its $38 million development but that the company expects to complete the Rajasthan facility plant by its 2013 deadline. Shifting responsibility for delays to the Indian government, Kasliwal commented in an interview, “We haven’t started because we’re not going to do something that doesn’t make sense financially. Had we been allowed to function as an SPV (special purpose vehicle), then we would’ve finished financing long ago.”
Guttman added that two ways that automotive manufacturers expect to meet tightening emission regulations are electric vehicles and reducing vehicle weight, and rare earth metals are required to construct batteries of the right cost, weight and size.
“Scarce supply and the associated price implications could make it more difficult for [manufacturers] to keep pushing emissions down cost effectively,” he said.
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