Daily Digest

Daily Digest 12/5 - US-South Korea Trade Deal 'Win-Win', EU Bailout Fund Increase?, Cap-and-Trade Plans

Sunday, December 5, 2010, 11:00 AM
  • Mauldin: Texas, Ireland and Ten Little Indians
  • US South Korea Free Trade Deal a 'Win-Win'
  • Australia’s Central Bank Set to Pause on Rates as Economy Slows
  • The Bond Vigilantes Have Moved to Dublin
  • EU's Bailout Fund May Be Increased, Reynders Says in a Break With Merkel
  • Age of Cheap Oil Is Over: IEA's Chief Economist (Video)
  • States Want Their Cap-and-Trade Plans Added to U.S. EPA's Carbon Limits

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Economy

Mauldin: Texas, Ireland and Ten Little Indians (jrb)



There is the childhood story and song about the ten little Indians. And of course the Agatha Christie tale of the same name, with 10 people invited to an isolated place, only to find that an unseen person is killing them one by one. And that seems to be what the markets want to do with European sovereign debt. First it was Greece, then it was Ireland. Very soon it will be Portugal, then Spain, and even Italy? Belgium perhaps? How many more Indians till it hits core of Europe?

US South Korea Free Trade Deal a 'Win-Win'



President Barack Obama said on Saturday the agreement "includes several important improvements and achieves what I believe trade deals must do. It's a win-win for both our countries". South Korean Trade Minister Kim Jong-Hoon also described the deal as a "win-win". Negotiations on the free trade deal broke down in the run-up to last month's G20 meeting of leading economies in Seoul.

Australia’s Central Bank Set to Pause on Rates as Economy Slows



Governor Glenn Stevens and his board will leave the overnight cash rate target at 4.75 percent in Sydney tomorrow, according to all 25 economists surveyed by Bloomberg News. Stevens told lawmakers in testimony 10 days ago that “there’s unlikely to be anything from us imminently” on borrowing costs. Australia’s economy probably won’t reach the central bank’s forecast 3.5 percent growth in 2010 after it expanded last quarter at the slowest pace in almost two years, according to Citigroup Inc. Stevens’ aim to contain prices was aided by some of the nation’s largest banks boosting mortgage rates by almost double the RBA’s quarter-percentage-point increase on Nov. 2.

The Bond Vigilantes Have Moved to Dublin 



Ed Yardeni, then an economist with Prudential-Bache Securities, dubbed the informal posse of outraged investors “the bond vigilantes,” writing in 1983: “If the fiscal and monetary authorities won’t regulate the economy, the bond investor will.” Now an independent economist and market strategist, Mr. Yardeni says that over the last few years, the American vigilantes have been asleep at the switch — lulled by the Federal Reserve’s seductive monetary policies. While the budget deficit has mushroomed to previously unimaginable, $1 trillion-plus dimensions, bond traders have been buying Treasuries with gusto, keeping prices rich and yields extremely low.

EU's Bailout Fund May Be Increased, Reynders Says in a Break With Merkel 



Belgian Finance Minister Didier Reynders said the euro region could increase the size of its 750 billion-euro ($1 trillion) bailout fund, breaking ranks with German Chancellor Angela Merkel and France’s Nicolas Sarkozy. Reynders told reporters in Brussels yesterday that the current cash pool could be increased if governments decide to create a larger fund as part of a permanent crisis mechanism in 2013. “If we decide this in the next weeks or months, why not apply it immediately to the current facility?”





Energy

Age of Cheap Oil Is Over: IEA's Chief Economist (Video) (sam)



The age of cheap oil is over, International Energy Agency Chief Economist Fatih Birol tells MarketWatch's Steve Goldstein as he also discusses the extended U.S. deepwater drilling ban, the possible direction of oil prices and climate change reduction efforts.

Environment

States Want Their Cap-and-Trade Plans Added to U.S. EPA's Carbon Limits 



State-run carbon-trading programs should be “treated as equivalents or substitutes” for Environmental Protection Agency regulations for emissions tied to global warming from power plants, oil refineries and factories, Mary Nichols, chairman of the California Air Resources Board, said yesterday in a telephone interview. “It would be a way to make sure that industries in our state are not being penalized by being regulated by EPA on top of what the state is doing,” Nichols said.

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."

4 Comments

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1892
More Information on Julian Assange and WikiLeaks..

 

Insightful responses from Julian Assange, answering UK Guardian's readers' questions:

Julian Assange Answers Your Questions
I originally tried hard for the organisation to have no face, because I wanted egos to play no part in our activities. This followed the tradition of the French anonymous pure mathematians, who wrote under the collective allonym, "The Bourbaki". However this quickly led to tremendous distracting curiosity about who and random individuals claiming to represent us. In the end, someone must be responsible to the public and only a leadership that is willing to be publicly courageous can genuinely suggest that sources take risks for the greater good. In that process, I have become the lightening rod.
http://www.guardian.co.uk/world/blog/2010/dec/03/julian-assange-wikileaks

Also, Assange's lawyer describes more behind the sexual assault allegations. Apparently they are trumped up:

When it comes to Assange rape case, the Swedes are making it up as they go along
Apparently having consensual sex in Sweden without a condom is punishable by a term of imprisonment of a minimum of two years for rape. That is the basis for a reinstitution of rape charges against WikiLeaks figurehead Julian Assange that is destined to make Sweden and its justice system the laughing stock of the world and dramatically damage its reputation as a model of modernity.
http://www.crikey.com.au/2010/12/02/when-it-comes-to-assange-r-pe-case-t...

Lastly, a satirical article about WikiChina - what if a Chinese Embassy cable was leaked? Tells how the Chinese government might gloat over America's misguided perceptions and efforts.

From WikiChina
While secrets from WikiLeaks were splashed all over the American newspapers, I couldn’t help but wonder: What if China had a WikiLeaker and we could see what its embassy in Washington was reporting about America? I suspect the cable would read like this:
http://www.nytimes.com/2010/12/01/opinion/01friedman.html
(If you don't want to log in, a copy is posted here: http://forums.malwarebytes.org/index.php?showtopic=69345)
(Or you can search the NY Times link on Google, then click from there.)

Poet

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4236
Re: Daily Digest 12/5 - US-South Korea Trade Deal ...

 

"(Reuters) - The IMF will urge euro zone governments on Monday to boost the size of their rescue fund and recommend the European Central Bank buy more bonds to prevent the bloc's debt crisis from derailing economic recovery.

According to a report that IMF chief Dominique Strauss-Kahn will present to euro zone finance ministers at a meeting in Brussels, the turmoil hitting countries in the currency area's southern periphery constitutes a "severe downside risk" and more action from member states is needed.

Together with the IMF, the EU set up a 750 billion euro ($1 trillion) rescue facility in May, but it now faces pressure to increase it after last week's rescue of Ireland failed to ease fears of contagion to Portugal, Spain and other high-deficit countries."

 

"The euro zone region's inability to fund future bailouts will probably force some of the 16 euro nations, including Ireland, to abandon the currency within five years, the head of the world's largest bond management firm has warned.

Mohamed A El-Erian, chief executive of investment management firm Pacific Investment Management Company (Pimco), told CNBC that Spain and Portugal are likely follow Ireland in drawing on the European Union's bailout fund."

 

German finance minister sees risk of anti-euro party emerging

 

Gado's picture
Gado
Status: Member (Offline)
Joined: Aug 31 2008
Posts: 24
WL Central An unofficial WikiLeaks information resource

http://wlcentral.org/

"The first serious infowar is now engaged. The field of battle is WikiLeaks. You are the troops," wrote John Perry Barlow on Twitter.

guardia's picture
guardia
Status: Platinum Member (Offline)
Joined: Jul 26 2009
Posts: 592
Re: More Information on Julian Assange and WikiLeaks..
Poet wrote:

Insightful responses from Julian Assange, answering UK Guardian's readers' questions:

I like this one best:

Quote:

In an exclusive interview earlier this month, WikiLeaks founder Julian Assange told Forbes that his whistleblower site will release tens of thousands of documents from a major U.S. financial firm in early 2011. Assange wouldn’t say exactly what date, what bank, or what documents, but he compared the coming release to the emails that emerged in the Enron trial, a comprehensive look at a corporation’s bad behavior.

- http://blogs.forbes.com/andygreenberg/2010/11/29/exclusive-wikileaks-will-unveil-major-bank-scandal/

This sounds very promising Cool

Samuel

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