Daily Digest

Daily Digest 12/31 - New Orleans to Rid of FEMA Trailers, Unemployment Claims Drop, Dull Finish for Stocks

Friday, December 31, 2010, 11:00 AM
  • Counting The Cost: The Bill Could Run Into Billions, Warns Bligh
  • Dude, Where’s My Job?
  • Davidowitz Interview About U.S. Retailers, Consumers (Video)
  • New Orleans Moves To Get Rid Of Last FEMA Trailers
  • Stocks Set For A Dull Finish To Roller Coaster Year
  • Unemployment Claims Drop Unexpectedly
  • Gold Ends the Year in a Bullish Fashion – What’s Next?

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Counting The Cost: The Bill Could Run Into Billions, Warns Bligh

"Queenslanders are going to need every bit of help they can get and the support for the disaster appeal has been overwhelming." A spokeswoman for the Premier said the repair costs for state assets alone would be in excess of $1.5bn. Meanwhile, the Local Government Association of Queensland has predicted the damage bill will go well above the $1.5bn estimated. "That bill will be on top of the estimated $600m to $1bn worth of damage to state-controlled public assets and in addition to the repair bill following the devastation wrought by floods in north Queensland earlier this month," said LGAQ general manager advocate Greg Hoffman.

Dude, Where’s My Job? (jim quinine)

The economy is growing due to unprecedented deficit spending by the government, fraudulent accounting by the Wall Street banks, the Federal Reserve buying $1.5 trillion of toxic mortgage “assets” from their Wall Street owners, various home buyer and auto tax credits and gimmick programs, and Fannie, Freddie, and the FHA accumulating taxpayer loses so morons can continue to purchase houses. Jobs are being created. According to the BLS, we’ve added 951,000 jobs since December 2009, an average of 79,000 per month. Of course, the population of the US is growing at 175,000 per month

Davidowitz Interview About U.S. Retailers, Consumers (Video) (robert)

Howard Davidowitz, chairman of Davidowitz & Associates Inc., talks about U.S. consumers and the outlook for the retail industry. Davidowitz also discusses the performance of Sears Holdings Corp., prospects for online retailers and mobile shopping, and commercial real estate. He talks with Pimm Fox on Bloomberg Television's "Surveillance Midday."

New Orleans Moves To Get Rid Of Last FEMA Trailers

Citing the remaining 221 trailers as blight, New Orleans officials have told the last remaining residents to be out by the start of 2011 or face steep fines. New Orleans once had more than 23,000 FEMA trailers, and for many people still living in them, they are akin to permanent homes.

Stocks Set For A Dull Finish To Roller Coaster Year

Though the market is open for a full trading day Friday, many investors have sealed their books and are celebrating another solid year for the stock market. The Dow is up about 11%, the S&P 500 has climbed 13%, and the Nasdaq has soared 18% so far this year. But those gains didn't come without major hiccups.

Unemployment Claims Drop Unexpectedly

The Labor Department reported Thursday that new claims for unemployment benefits unexpectedly dropped below 400,000 last week for the first time since mid-2008, and economists called it a hopeful sign that the jobless rate, stuck near 10% for more than a year, might soon begin to fall. The weather and the holiday period may have exaggerated the improvement in what can be volatile numbers. And given the disappointing job-growth numbers for November and other economic risks such as the depressed housing market, analysts remained cautious about reading too much into the data.

Gold Ends the Year in a Bullish Fashion – What’s Next?

Things seemed stuck in 2010—the economy, Chilean miners, the accelerators of 2.3 million recalled Toyotas and 1.2 million European airline passengers stuck in airports by the eruption of the Icelandic volcano.   The Green shoots that Fed Chairman Ben Bernanke had promised never seemed to break through the hard ground. By May hopes for a quick recovery were dashed when the stock market tumbled 10 percent and unemployment did not improve, getting stuck at around 10 percent. The European Union bailed out Greece where workers retire at age 55, and in 2010, Irish eyes were not smiling. China's economy, by stark contrast, grew by an impressive 9.6 percent in the third quarter.

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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50% Gold, 50% Cash - Porter Stansberry


Interview with Porter Stansberry on the Gold Report. He mentioned a few things which I'd be interested in hearing people's views on.

Unfortunately, I believe it's going to be tougher to make money 2011. I expect the government to strike back. I don't think they're going to let commodity prices continue to soar. I'm very concerned about the repercussions of that on investors. So if I was very conservative in 2010 I've become downright scared in 2011. I don't yet know how we're going to hide, but I can tell you it's going to be a very large combination of hedges. We're going to have to continue to be very, very conservative in our allocations and make sure that we're prepared for any potential eventuality.

I really do think we'll have a huge correction, particularly in the silver market. I'm a major silver bull, and I believe silver is inherently worth $120 an ounce already and it's going higher. But markets just don't go straight up the way silver has in the last couple of months. So I'm concerned that my subscribers may think that we can buy agriculture and energy with impunity and that we can buy as much silver and leverage it as much as we want without getting destroyed by the market volatility, just because we're in the middle of an inflationary crisis. I think we're going to see some of that volatility next year. I don't have a crystal ball, but it seems as if there needs to be a shakeout in the market because the investors have gotten so bullish on these ideas about sound money and energy and agriculture.

Volatility I'm expecting, but I'm wondering if the US Govt (or Fed or JPM) will try to correct the market pricing, and if so when and how. And how would that play in the international market? Would non-US govts be happy about these corrections? How might investors with large PM positions fight back?

The interview then continues...

TGR: You expect it to be tougher to make money 2011 because the government will strike back. What tools do they have to strike back at investors?

Porter Stansberry: They have all the tools in the world. They could do all kinds of things. They could pass huge new withholding taxes on any kind of investment in bullion, for example. They could change the rules on the commodity exchanges. They could make rules about prices and windfall profit taxes. There's any number of things they can do to distort the markets and punish speculators, and there's no doubt in my mind that they will do some of them. There's no doubt in my mind that at some point next year Obama is going to come out, point the finger at the camera and say, "An international group of speculators is destroying our bond markets. We're going to stop them."

I'm expecting some big volatility next year. You have to be willing to be careful with the size of the positions that you're putting on and with your expectations about volatility. Things are going to get really volatile.

Were Obama to do this I think that would be quite interesting.


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Re: Daily Digest 12/31 - New Orleans to Rid of FEMA ...

Jim Sinclair:

In the News Toady

Jims' Mailbox


Zero Hedge:

Frontrunning: December 31. List of articles

One Minute News Summary


King World News (follow on Twitter)

James Turk Interview on where gold and silver are headed for 2011

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Re: Daily Digest 12/31 - New Orleans to Rid of FEMA ...

Hi es2

Thanks for the reads. You gotta love James Turk.

Welcome to CM!

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Re: Daily Digest 12/31 - New Orleans to Rid of FEMA ...

Thanks Johnny Oxygen!

Venezuela Devalues Bolivar For Imported `Essential Goods,' Unifying Rates

Venezuela devalued its currency for the second time since January, enabling the government to increase revenue at the risk of pushing up the world’s highest inflation rate.


Here's an article from earlier this year, soldiers went with government inspectors to make sure stores hadn't improperly raised prices (article link).  Picture included

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Re: Daily Digest 12/31 - New Orleans to Rid of FEMA ...

The Daily History of the Debt Results

Historical returns from 12/30/2000 through 12/30/2010

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )


Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
12/29/2000 Not Available Not Available 5,662,216,013,697.3


12/31/2001 3,394,398,958,213.60 2,549,039,605,222.53 5,943,438,563,436.13
12/31/2002 3,647,939,770,383.73 2,757,767,686,463.80 6,405,707,456,847.53
12/31/2003 4,044,243,829,239.60 2,953,720,418,578.68 6,997,964,247,818.28
12/31/2004 4,408,389,327,642.95 3,187,753,474,781.19 7,596,142,802,424.14
12/30/2005 4,714,821,211,003.33 3,455,603,330,310.29 8,170,424,541,313.62
12/29/2006 4,901,046,516,367.78 3,779,177,863,718.40 8,680,224,380,086.18
12/31/2007 5,136,302,727,072.67 4,092,869,932,145.64 9,229,172,659,218.31
12/31/2008 6,369,318,869,476.54 4,330,485,995,135.59 10,699,804,864,612.13
12/31/2009 7,811,008,785,487.30 4,500,340,892,024.73 12,311,349,677,512.03
12/30/2010 9,327,743,778,364.03 4,543,386,575,453.37 13,871,130,353,817.40
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Re: Daily Digest 12/31 - New Orleans to Rid of FEMA ...

Ed Steers' Gold and Silver Daily 12/30 (Archive)

I recommend signing up for their daily email

Shadow Stats

Subscription required if you want more than the following for today, otherwise it looks like ones older than 6 months are open

• 2010: A Year of Depressed Economic Stagnation
• 2011: A Year of Increasing Economic and Systemic Difficulties
• Gold Outperforms Dow for Seventh Straight Year (2010)

GATA Daily Dispatches

December 27, 2010 - A Fed-Induced Speculative Blowoff  Hussman Funds  (Archive)

Got Gold Report

Thanks saxplayer00o1 for all your hard work, it is appreciated! Happy New Year to all!

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Re: Daily Digest 12/31 - New Orleans to Rid of FEMA ...

Wow is all I can say LOL...

Gold price

Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries. Many European countries implemented gold standards in the later part of the 19th century until these were dismantled in the financial crises involving World War I. After World War II, the Bretton Woods system pegged the United States dollar to gold at a rate of US$35 per troy ounce. The system existed until the 1971 Nixon Shock, when the US unilaterally suspended the direct convertibility of the United States dollar to gold and made the transition to a fiat currency system. The last currency to be divorced from gold was the Swiss Franc in 2000.

Since 1919 the most common benchmark for the price of gold has been the London gold fixing, a twice-daily telephone meeting of representatives from five bullion-trading firms of the London bullion market. Furthermore, gold is traded continuously throughout the world based on the intra-day spot price, derived from over-the-counter gold-trading markets around the world (code "XAU"). The following table sets forth the gold price versus various assets and key statistics:

Historical price of 1 troy ounce (31 g) of gold since 1792 in nominal US-Dollars.

Price of 1 troy ounce (31 g) of gold since 1960 in nominal US-Dollars and inflation adjusted by Consumer Price Index CPI-U.

Year Gold USD/ozt[4] DJIA USD[5] World GDP
USD tn[6]
US Debt USD bn[7] Trade Weighted US dollar Index[8]
1970 37 839 3.3 370  
1975 140 852 6.4 533 33.0
1980 590 964 11.8 908 35.7
1985 327 1,547 13.0 1,823 68.2
1990 391 2,634 22.2 3,233 73.2
1995 387 5,117 29.8 4,974 90.3
2000 273 10,787 31.9 5,662 118.6
2005 513 10,718 45.1 8,170 111.6
2008 865 8,776 54.6 10,700 96.1
1970 to 2008 net change, %
  2,238 946 1,555 2,792  
1975 (post US off gold standard) to 2008 net change, %
  518 930 753 1,908 191

In March 2008, the gold price exceeded US$1,000,[9] achieving a nominal high of US$1,004.38. In real terms, actual value was still well below the US$599 peak in 1981 (equivalent to $1417 in U.S. 2008 dollar value). After the March 2008 spike, gold prices declined to a low of US$712.30 per ounce in November. Pricing soon resumed on upward momentum by temporarily breaking the US$1000 barrier again in late February 2009 but regressed moderately later in the quarter.

Later in 2009, the March 2008 intra-day spot price record of US$1,033.90 was broken several times in October, as the price of gold entered parabolic stages of successively new highs when a spike reversal to $1226 initiated a retrace of the price to the mid-October levels.

On November 9, 2010, gold closed at a new nominal high of $1421.00 in NYMEX.[10]

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Re: Daily Digest 12/31 - New Orleans to Rid of FEMA ...


Selling coal to China, or strategic coal reserve?


by RLMiller

Fri Dec 31, 2010 at 12:45:34 PM PST

The energy policy of the incoming Congress ostensibly seeks to lessen America's dependence on imported fossil fuels.  As an example, here's Republican Senator Mike Enzi of Wyoming on Powder River Basin coal, emphasizing "the importance of Powder River Basin coal to jobs and the economy as well as our energy security of the nation."

There's only one problem: it's not true.  Wyoming coal will be shipped overseas to China instead of generating American jobs and energy security, as George F. Will chortles: China has seen the future, and it is coal.  

Even as Appalachian mountains are destroyed and Wyoming's Powder River Basin dismantled, Arch and Peabody seek coal exporting deals with Asia:

From atop the 25-story coal silo overlooking Arch Coal Inc.'s Black Thunder mine in northeast Wyoming, a seemingly endless string of rail cars stretches into the horizon. More than 20 trains arrive a day, each a mile and a half long....

Almost every bit of coal that leaves is headed east, where the vast majority of the nation's 1,000-plus fiery coal boilers await their next feeding. But trains could soon start heading west — to dump their cargo on ships headed to the Far East. Miners here in the coal-rich Powder River Basin, the self-proclaimed energy capital of America, have plans to tap the Mother of All Energy Users: China.

There's only one problem: West Coast port city bottlenecks.  Currently, coal is shipped via Vancouver, British Columbia. The coal barons want an American port.  They've been scouting Pacific Northwest locations for some time, but Tacoma (Washington state) and Portland (Oregon) have turned them down.

In November, Washington state's Cowlitz County commissioners approved a coal export facility.  Tuesday, the Washington Department of Ecology joined environmental groups to appeal the county's decision.  The state's decision is a setback, not a final thumbs down for the Cowlitz County project.

If America has a 200-year or 400-year supply of coal, then export of American coal makes sense in a Republican kind of way (enrich private companies, d*mn the environmental consequences).  But what if there's less coal? A lot less coal? A largely overlooked study this summer stated that peak coal would be reached in the year 2011.


Peak coal

Oil reserves are generally perceived to be overstated, but coal reserves are also overstated.

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Re: Daily Digest 12/31 - New Orleans to Rid of FEMA ...

Thanks for that post idoctor

In regards to the first video. I wonder what the pre-show huddles are like at CNBC? These guys seemed all fired up like they just got out of a "re-education" pep session. Its interesting how they always talk down to Peter and try to assert the group bullying strategy since none of them could stand toe-to-toe with him on their own.

Whats with the cornball tuxedo's? Pretty bush leaugue really.

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Re: Daily Digest 12/31 - New Orleans to Rid of FEMA ...

I agree Johnny O that CNBS treats Peter pretty unprofessionally. Amazing to treat someone like this when he has been much better predicting than they have just look at the price of PMs that Peter has called correctly.

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