Daily Digest

Daily Digest 12/3 - U.S. Tax Cut Extention Talks, China to Tighten Monetary Policy, Nissan to Launch Electric Car

Friday, December 3, 2010, 10:37 AM
  • Merk Commentary: Pragmatic ECB Squares the Circle - Whatever it Takes
  • UN Climate Conference: Global Warming Could Double Food Prices
  • Obama, GOP in Quiet Talks to Extend Tax Cuts
  • Thursday Thrust – Just Buy the F’ing Dips!
  • China to Tighten its Monetary Policy Next Year
  • OIL FUTURES: Crude Retreats On Weak US Jobs Data
  • Nissan To Launch Leaf Electric Car In Japan On December 20

Our 'What Should I Do?' guide helps you cover your food, water, and warmth needs in any emergency.


Merk Commentary: Pragmatic ECB Squares the Circle - Whatever it Takes (joe)

The one thing worse than a fire in a building is a fire in a building when emergency exits are bolted shut: a panic in the market is exacerbated when liquidity dries up. It appears the European Central Bank (ECB) embraces this view: in today's press conference by ECB head Trichet, he re-iterated a number of times that non-standard measures are there to permit appropriate transmission of standard measures. In plain English, this means that whatever emergency support is given to the market is a) temporary in nature and b) designed to allow monetary policy and thus economies to function. Some observers are disappointed that the ECB "only" announced an extension of its full allotment refinancing facilities until Q1/2011. However, that's incorrect: Trichet went out of his way to state that the ECB will do "whatever it takes" without using those words: the measures taken will be "commensurate to what we observe any time to what we see as disruption." Policy will be "back to functioning normally when we are back to normal functioning." When asked specifically whether the ECB would do whatever it takes, he indicated there is no limit on the the bond purchase program (Securities Market Program, SMP), although he emphasized that any bond purchases are always sterilized.

UN Climate Conference: Global Warming Could Double Food Prices (solidswede)

Even if we stopped spewing global warming gases today, the world would face a steady rise in food prices this century. But on our current emissions path, climate change becomes the "threat multiplier" that could double grain prices by 2050 and leave millions more children malnourished, global food experts reported Wednesday. Beyond 2050, when climate scientists project temperatures might rise to as much as 6.4 degrees C (11.5 degrees F) over 20th century levels, the planet grows "gloomy" for agriculture, said senior research fellow Gerald Nelson of the International Food Policy Research Institute.

Obama, GOP in Quiet Talks to Extend Tax Cuts 

Negotiations have accelerated in recent days as Congress has confronted deadlines for extending a series of tax cuts that expire at the end of the month, renewing emergency jobless benefits and keeping the government funded into next year. The talks mark the dawn of a new era on Capitol Hill, with resurgent Republicans holding far more leverage and commanding a more prominent role in crafting legislation. The private discussions, which parallel a more public set of talks, have left many Democrats grousing that President Obama is being too quick to accommodate his adversaries, who are still a month away from taking control of the House and expanding their presence in the Senate.

Thursday Thrust – Just Buy the F’ing Dips! (ilene)

Of course it's a Ponzi scheme but it's a gigantic, legal one and the best thing about it is that the Government FORCES everyone to play so you never run out of suckers.  When there is a lack of actual new sucker/investors to put money in, the Government steps in with stimulus or buys equities (QE1) or buy Treasuries from the banks so they can have free capital to buy equities with (QE2).  They debase the currency and drive inflation higher while talking it up even more so and virtually penalizing people for saving money and not shopping.  In this way, the US Government places a tax on every single citizen through a systemic devaluation of their lifetime accumulation of wealth as well as unfavorable savings and inflation conditions that are aimed to force money into equities and commodities.  

China to Tighten its Monetary Policy Next Year 

The announcement by the nine-member Politburo, which was made through the state New China News Agency, said China would shift to a "prudent" monetary policy from a "moderately loose" approach. The decision comes after two years of unprecedented bank lending has flooded the economy with excess liquidity. Easy credit is being blamed for real estate prices that have doubled and tripled in some of China's leading cities in recent years. Led by soaring food prices, the country's inflation rate hit a 25-month high in October and is expected to have risen even more in November.


OIL FUTURES: Crude Retreats On Weak US Jobs Data 

Crude futures retreated Friday after a government report said the U.S. added far fewer jobs than expected last month, demonstrating the uncertainty underlining the economic recovery. Light, sweet crude for January delivery recently traded 45 cents, or 0.5%, lower at $87.55 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 22 cents lower at $90.47 a barrel. Nonfarm payrolls rose by 39,000 in November as private-sector employers added just 50,000 jobs, the Labor Department said Friday. A separate survey showed the unemployment rate unexpectedly rose to 9.8% last month.

Nissan To Launch Leaf Electric Car In Japan On December 20 

Nissan, Japan's second biggest car maker by volume, has been slow to enter the increasingly important market for fuel-efficient cars, lagging behind rivals such as Toyota Motor Corp., which has dominated the market with its hybrid gasoline-electric technology. Nissan rolled out its first mass-market hybrid powered by its own technology--the Fuga--only last month. But with the launch of the Leaf, Nissan joins Mitsubishi Motors Corp. (7211.TO) and Fuji Heavy Industries Ltd. (7270.TO), the maker of Subaru-brand cars, as one of the few Japanese automakers to offer a fully electric car for the mass market, jumping ahead of major rivals like Toyota and Honda Motor Corp.

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