Daily Digest

Daily Digest 12/17 - How To Live As Growth Fails, SEC Accuses Mortgage Giants Of Deception, Brazil Bets Big On Wind Power

Saturday, December 17, 2011, 10:40 AM
  • As Economic Growth Fails, How Do We Live?
  • UK Public 'the Worst Off' of the developed G7 Countries With 4.5% Negative Interest Rates
  • The Global Economy Is Fading Fast and There Won’t Be A Rescue This Time
  • S.E.C. Accuses Fannie and Freddie Ex-Chiefs of Deception
  • Paul’s ‘Ground Game,’ in Place Since ’08, Gives Him an Edge
  • Brazil Bets Big On Wind Power
  • Price of Oil to Remain High as OPEC Limits World Production
  • Japanese Officials Declare 'Cold Shutdown' Of Crippled Reactors

Learn how to protect your wealth against the Three E forces using our 'What Should I Do?' guide

Economy

As Economic Growth Fails, How Do We Live? (Craig S.)

The purpose of this Part I is to very succinctly tell the themes, and set the stage for Parts II and III, which will develop something of a "tool kit" of ideas about what we should do now to adapt to this predicament.

UK Public 'the Worst Off' of the developed G7 Countries With 4.5% Negative Interest Rates (pinecarr)

Perhaps this is why the western Central Banks are so determined to prevent the price of gold from breaking out, and keep putting out disinformation from within a cloak of secrecy about their inflationary policies and money creation.

Negative real interest rates are very bullish for gold, and highly corrosive to the ordinary savings of those who lack the sophisticated financial instruments to otherwise protect themselves.

The Global Economy Is Fading Fast and There Won’t Be A Rescue This Time (David B.)

Despite all the lousy economic news and slumping profit growth, the stock market somehow managed to hold up in early December. Why? The bulls didn’t want to give up on the idea of a “Santa Claus Rally.” They figured their fiscal and monetary policymaker buddies would come through and save their bacon.

But what happened instead? The bulls got a bitter pill to swallow …

S.E.C. Accuses Fannie and Freddie Ex-Chiefs of Deception (jdargis)

The agency has come under fire for not pursuing top Wall Street and mortgage industry executives who contributed to the financial crisis. In cases contending the deceptive marketing of securities tied to mortgages, the S.E.C. has been criticized for citing only midlevel bankers while settling with the Wall Street firms themselves. Recently, the agency drew criticism from a federal judge after allowing Citigroup to settle a fraud case without conceding wrongdoing.

Paul’s ‘Ground Game,’ in Place Since ’08, Gives Him an Edge (jdargis)

“This isn’t a year-and-a-half campaign,” Craig Robinson, a former Iowa Republican Party political director during the caucuses four years ago, said of Mr. Paul’s organization. “This is a five-year campaign.”

Brazil Bets Big On Wind Power (James S.)

Four months ago, at a government-organized power auction, developers of 44 wind farms won 39 percent of the total capacity, contracting for an average price of $62.91 per megawatt-hour, offering for the first time a price below the average for natural gas and hydroelectric bids for power generation.

Price of Oil to Remain High as OPEC Limits World Production (James S.)

All of this comes shortly after Saudi Arabia announced that it has halted plans to increase capacity to 15 million barrels a day by 2020. I wrote about this in a recent post. Saudi Arabia claims to have 12 million barrels a day in capacity now, but there is little evidence that it can actually produce this amount of oil. Saudi Arabia recently boasted that it would increase oil production above 10 million barrels a day, to help offset the drop in Libyan oil production, but amounts reported by the OPEC Oil Market Report and the EIA report of monthly oil production are still under this amount. The highest Saudi oil production reported by the EIA is 9.94 million barrels a day in August 2011.

Japanese Officials Declare 'Cold Shutdown' Of Crippled Reactors (jdargis)

A cold shutdown, AP says, "normally means a nuclear reactor's coolant system is at atmospheric pressure and the its reactor core is at a temperature below 212 degrees Fahrenheit (100 degrees Celsius), making it impossible for a chain reaction to take place."

"But many skeptics," The Japan Times reports, "believe the declaration is little more than political grandstanding, given the revised definition of what constitutes cold shutdown, and are concerned about the long-term stability of the critical coolant system. ... Reactors 1, 2 and 3 have been damaged and much of the melted fuel is believed to have penetrated through the pressure vessels and fallen to the bottom of the outer containment vessels. Tepco [which operates the plant] has been unable to take direct measurements of the temperatures at the bottoms of the containment vessels."

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."

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