Daily Digest

Daily Digest 3/18 - Bahrain's Location Important To U.S., China Takes Manufacturing Dominance, Japan Raises Nuclear Severity

Friday, March 18, 2011, 9:43 AM
  • Bahrain's Central Location And Geopolitical Importance To The U.S. And KSA
  • China Ends America's Century Old Manufacturing Dominance
  • NY Fed Confirms Intervention In Currency Markets
  • Currency Wars: RIP Shadow Banking System, Long Live QEx!
  • Japan Risks Credit Crunch As Yen Thunders
  • Enjoying Coffee At The Lodge With Jesse
  • Hacker Group Anonymous Declares War On ‘Global Banking Cartel'
  • Japan Raises Severity Of Nuclear Accident
  • A Practical, Affordable (and Safe) Clean Electric Energy Plan
  • Japan's Catastrophes: Nature Strikes Back

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

Economy

Bahrain's Central Location And Geopolitical Importance To The U.S. And KSA (Crash_Watcher)

The tsunami in Japan has not only swept away many cities and town in Japan, it has also swept away the main-stream media's coverage of continuing civil unrest in some of the MENA countries. What perfect cover for the Kingdoms of Bahrain and Saudi Arabia, and UAE, to take strong action against the protesters in Bahrain.

China Ends America's Century Old Manufacturing Dominance (adam)

The U.S. “should be worried” by the news, Deborah Wince-Smith, chief executive of the Council on Competitiveness, tells The Financial Times. “This shows the need for the U.S. to compete in the future not on the basis of commodity manufacturing but on innovation and new kinds of services that are driven by production industries."

True as that might be, it doesn't mean the world's most populated country is destined to hold the crown for as long as the U.S.. China is already suffering the growing pains of higher labor costs, labor shortages and a push for better working conditions in its factories.

NY Fed Confirms Intervention In Currency Markets (David B.)

A spokesman at the New York Fed, which operates as the agent of the U.S. Treasury in currency operations, confirmed that it had intervened. The last time the U.S. government intervened in currency markets was the fall of 2000 when it sold dollars and bought euros to bolster the fledgling European currency.

Currency Wars: RIP Shadow Banking System, Long Live QEx! (pinecarr)

Shortages are always regarded as a temporary disruption or associated with some special situation. Folks, I hate to break the news but we are on the verge of major global resource shortages and scarcity. When Americans understand it is not their inalienable right to have gas at $3 per gallon while everyone else pays $9 they will quickly get the message. That day is fast approaching.

We will soon be in an era of worrying about how we pay for what we NEED versus how we can afford what we want.

Japan Risks Credit Crunch As Yen Thunders (pinecarr)

Japan is in imminent danger of a credit-crunch with global implications unless the authorities stabilise Tokyo's stockmarket and take overwhelming action to stop the yen exploding to record levels.

Enjoying Coffee At The Lodge With Jesse (Ilene)

I have long been a fan of Jesse's Café Américain. Jesse is a brilliant writer and a deep thinker who uniquely transcends politics, easily seeing through lies and disinformation. He has a great feel for what really matters, and the courage to speak out about it. Jesse and I have spoken before about the economy, markets and politics, and being at a crossroads once again, it was a perfect time to catch up.

Hacker group Anonymous declares war on ‘global banking cartel’ (David B.)

In the video, Anonymous explains how this movement would involve a “relentless campaign of nonviolent, peaceful civil disobedience” until its demands are met. These demands begin with the resignation of Federal Reserve Chairman, Ben Bernanke, but ultimately it seeks to “break up the global banking cartel centered at the Federal Reserve, International Monetary Fund, Bank of International Settlements and World Bank”.

Energy

A Practical, Affordable (and Safe) Clean Electric Energy Plan (adam)

While many applauded the President's call for innovation and investment, "eyes were rolling" among many fiscal conservatives. The President's call for investment in the future was immediately labeled as simply a call for increased government spending. This is a critical concern when we are already running a $1.6 Trillion U.S. budget deficit.

In my article from one year ago I noted the problems of both deficit spending and high unemployment were "paralyzing the nation's political life, as Americans are worried about both high unemployment and record deficits." I wrote the solution to this conundrum is investment -- "to invest money now, into projects that when completed will help us individually and as a nation to save more".

Environment

Japan's Catastrophes: Nature Strikes Back

Rikuzentakata, a former whaling town, once held 23,000 people. Several hundred are confirmed dead, but at mid-week perhaps thousands more were still missing. All tried to flee, as they were trained to do, when the tsunami warnings sounded in mid-afternoon. But this was a town of old people, as fishing villages here invariably are. Many just could not make it. Their fate was shared by perhaps tens of thousands of people living in ports, coastal towns and tiny cove communities across the north-east. Some, though, were spared. Above a washed-away hamlet clay-tiled homes are still standing, and a garden with tenderly coiffed trees. Even higher up is a small cemetery.

Japan Raises Severity Of Nuclear Accident (pinecarr)

Japan's nuclear safety agency has raised the rating of the country's nuclear accident from 4 to 5 on a 7-level international scale.

An official of the agency said today the agency raised the rating of the Fukushima nuclear crisis on the International Nuclear Event Scale. The scale defines a level 4 incident as having local consequences and a level 5 incident as having wider consequences.

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."

20 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 4066
Fed Assets Rise to Record $2.59 Trillion on Treasury Purchases

"The BOJ conducted emergency operations for the fifth day in a row, bringing its total liquidity injection to 63.6 trillion yen (785.93 billion dollars) since Monday."

"The Federal Reserve’s total assets rose by $5.98 billion to $2.59 trillion, the seventh consecutive record-setting week, as the central bank bought Treasury securities as part of the second round of its quantitative easing strategy.

Treasuries held by the Fed rose by $14.3 billion to $1.28 trillion as of yesterday."

"Los Angeles City Administrative Officer Miguel Santana said he plans to release a report tomorrow with recommendations for closing a $54 million deficit this year and gaps totaling $1.86 billion through 2015.

The report, to be delivered to Mayor Antonio Villaraigosa and the City Council, will also suggest ways the second-most- populous U.S. city can eliminate or contract out municipal services to curb future shortfalls.

“It’s basically the equivalent of going between the crevices of your couch and trying to find any kind of revenue you can,” Santana said at a luncheon today."

  • Other news, headlines and opinion:

Cash Demand Soars; Banks Brace For Withdrawals (Japan)

Washington's Budget Shortfall Grows To $5.1 Billion

Treasury to Sell $73 Billion in Securities (Next week)

Louisiana's per capita debt grows higher in 2010

NC lawmakers OK study of $2.6B jobless fund debt

Canada's national debt will hit record high Friday

Nearly half of Costa Mesa city employees get layoff notices

Doubts on Mayor's Forecast of 4600 Teacher Layoffs (NY)

Schools brace for nearly 560 layoffs as budget cutbacks loom (Mecklenburg County schools)

Portugal PM: Will Do What It Takes To Avoid Bailout

Schools Running Out Of Money (NY)

Saudi Arabian King Abdullah Boosts Spending as Protests Sweep Arab World

Japan Wagyu Beef Exports, Rice Crop Threatened by Radiation Contamination

RE/MAX Survey: February Prices Down 5.9 Percent from 2010

Insider transactions (Notice the top one)

Regents Approve Internal Transfer of $2.1 Billion (California)

Japan Radiation May Put Tokyo at Greater Risk From March 20 as Winds Shift

 Harmless traces of radiation detected in Bay Area (California)

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
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Posts: 2219
Jumping the Shark

http://en.wikipedia.org/wiki/Jumping_the_shark

Today is my personal Jump the Shark moment -- the situation in Japan continues to deteriorate, the ME continues to deteriorate, the Eurozone is wobbling again, etc. etc. etc.  

But the G7 decides to manipulate some markets, the Japanese have tossed hundreds of billions of bucks into their market[s] in four days to prop things up -- and it's all good if you listen to the Lamestream Media.  "Surprising resilience" in the economy, they say.  "Jump a bump in the road" they say.  Either "no long-term effect" or "bullish in the long-term" they say.  

Nikkei up, Dow up, FTSE up, etc.  

We have jumped the shark:  "Jumping the shark is a widely used idiom – first employed to describe a moment in the evolution of a television show, characterized by absurdity, when a particular show abandons its core premises and begins a decline in quality that is beyond recovery."

Emphasis on the last two words.

Ordered my hand-cranked radio/flashlight 5 minutes ago using a gift card I got for my birthday yesterday.  One more brick in that resilience wall!

Viva -- Sager

Poet's picture
Poet
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Joined: Jan 21 2009
Posts: 1891
Mbernanke
SagerXX wrote:

http://en.wikipedia.org/wiki/Jumping_the_shark

Today is my personal Jump the Shark moment -- the situation in Japan continues to deteriorate, the ME continues to deteriorate, the Eurozone is wobbling again, etc. etc. etc.

Happy Birthday, Sager!

I agree with the Jumping of the Shark. Like Fonzi waterskiing and jumping over the shark, there's nothing left to top that anymore. Everything's downhill after that, because it's all the same - a one trick pony, a hammer in search of nails.

So precious metals continue to climb and Americans order record silver coins - millions of them - because some people can see the writing on the wall. I think things are definitely coming to a head.

In honor, here is my contribution:

Mbernanke

"In the jungle, the mighty jungle,
their lyin' speaks tonight...
In their jargon, the market jungle,
Their lyin' peaks tonight...

Near the village of peaceful sheeple,
they're livin' meek tonight...
Fear the pillage of rioting people,
Their livin' peaks tonight...

Cash, my darling, don't fear my dealing,
A tsunami blitz tonight...
Crash, my darling, don't fear the dark'ning,
A tsunami hits tonight...

A Weimar-babwe, Weimar-babwe, Weimar-babwe, Weimar-babwe..."

(A great tip of the hat to the late Solomon Linda for Mbube and Pete Seeger for Wimoweh...)

Poet

earthwise's picture
earthwise
Status: Platinum Member (Offline)
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Posts: 846
Sager XX's hand cranked radio/flashlight
SagerXX wrote:

Ordered my hand-cranked radio/flashlight 5 minutes ago using a gift card I got for my birthday yesterday.  One more brick in that resilience wall!

Viva -- Sager

Sager,

First off, HAPPY (belated) BIRTHDAY!!

Second, What product did you decide on? This is on my list as well. Wasn't that discussed in a thread a while back? Looked but didn't find. I'd like to put that brick in my wall too.

 

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Don't Buy The SolarLink/Eton FR360
earthwise wrote:

What product did you decide on? This is on my list as well. Wasn't that discussed in a thread a while back? Looked but didn't find. I'd like to put that brick in my wall too.

If I may add my opinion, I got the Eton (SolarLink or American Red Cross) FR360  for Christmas and I found it confusing and difficult to use -  too easy to either be drawing on the wrong power source, to accidentally turn on the alarm, or unwieldy to hold as a light source, and poor as a stationary light source.

Poet

Poet's picture
Poet
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Posts: 1891
Real Heroes

 

There is nothing funny about this one.

These men are the real heroes.

The Volunteers Who Have Stayed Behind At The Plant
http://www.dailymail.co.uk/news/article-1367125/Japan-tsunami-Fukushima-...

Poet

CB's picture
CB
Status: Gold Member (Offline)
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Posts: 365
not all men at the plant...

Here is a translated blog post from a woman employee at the Fukushima nuke plant:

http://naokokiyama.blogspot.com/2011/03/voice-from-nuclear-power-plant-in.html

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2219
Flashlight, ya'll!
earthwise wrote:

Second, What product did you decide on? This is on my list as well. Wasn't that discussed in a thread a while back? Looked but didn't find. I'd like to put that brick in my wall too.

I went w/the one Dr. Chris recommended in the What Should I Do? series -- Kaito Ultra Solar Dynamo Survival Radio.

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1982
hey birthday boy

Happy belated birthday Sager!

I just got one of those radios ordered, too, and some space blankets for our bugout bag. And a water testing kit for our well. None of that would have happened except for you posting that link for the radio! Thanks a bunch.

Safewrite

pinecarr's picture
pinecarr
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Posts: 2237
Happy birthday yesterday,

Happy birthday yesterday, Sager!!

I'm with you re a "Jump the Shark" moment. It feels like the time to straddle both realities may be coming to an end...but I hope not!

 

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Happy birthday Sager.....

Happy birthday Sager.....a little music for your new RADIO LOL....

Poet's contribution:

Mbernanke

"In the jungle, the mighty jungle,
their lyin' speaks tonight...
In their jargon, the market jungle,
Their lyin' peaks tonight...

Near the village of peaceful sheeple,
they're livin' meek tonight...
Fear the pillage of rioting people,
Their livin' peaks tonight...

Cash, my darling, don't fear my dealing,
A tsunami blitz tonight...
Crash, my darling, don't fear the dark'ning,
A tsunami hits tonight...

A Weimar-babwe, Weimar-babwe, Weimar-babwe, Weimar-babwe..."

(A great tip of the hat to the late Solomon Linda for Mbube and Pete Seeger for Wimoweh...)

Nice one Poet.....LOL

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Niall Ferguson

Niall Ferguson

dingalls's picture
dingalls
Status: Bronze Member (Offline)
Joined: Aug 21 2009
Posts: 28
Bahrain

Can someone explain to me what the problem is with Bahrain?  Why is it "getting so serious?"  I have not been following and am now not at all getting it.  I need the news flash.

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1982
what's up with Bahrain?

From the 3/12/11 Daily digest comments:

http://www.abc.net.au/news/stories/2011/...

http://www.zerohedge.com/article/stratfor-update-saudi-invasion-bahrain

To sum up, here's an interactive map of the region. http://www.washingtonpost.com/wp-srv/special/world/middle-east-protests/ Click on Bahrain on the map, then on Kuwait, then on Saudi Arabia.

The way the dominoes might fall is this. Bahrain gets feisty - their Suni  minority is the sort of folks that want Shi'ra law and breed terrorists. If the Monarch in Bahrain gives in to ANY of their demands, it will embolden the nextdoor Kuwaiti Suni minority and THEY are right on the border of Saudia Arabia, home of some of the famous Suni dissidents that formed al-Qaida. Imagine the whole MiddleEast acting like one big Iran. A wholesale return to Moslem law under a multi-state theocracy hostile to us "infidels" will be bad for the West.

NewzGuy's picture
NewzGuy
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Joined: Mar 19 2011
Posts: 2
Poor Minnesotans to be Barred from Carrying Cash

Poor Minnesotans to be Barred from Carrying Cash

Republican legislators in Minnesota have introduced a bill to criminalize carrying cash for anyone on public assistance.

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
How About You Give A More Detailed Analysis, NewzGuy?!?
NewzGuy wrote:

Poor Minnesotans to be Barred from Carrying Cash

Republican legislators in Minnesota have introduced a bill to criminalize carrying cash for anyone on public assistance.

This thing has been distorted in the left-wing media as much as the right-wingers love to distort things.

I actually read the bill. Have you? There are two versions I've read. The original bill and a revised one after testimony at a hearing about it.

There's an original, which was short and looked like it was written by some idiot who didn't think nor know much about how the system worked or what the actual law was. It was intended to prevent purchases of alcohol, tobacco, or lottery tickets with welfare money. But the way it was worded, it would make it illegal for someone on welfare to take out cash even from the cash portion of their welfare assistance grant - which is wrong. How are people gonna be able to pay their utilities or buy clothes at a flea market, etc? But it doesn't make it illegal for them to have $20 in their pocket or to carry cash. So, poorly written bill, would have hurt a lot of people, but got further distorted to make it look even worse than it already was.
https://www.revisor.mn.gov/bin/bldbill.php?bill=H0171.0.htm...l&session=ls87

There's an amended one posted on-line on March 17, that is still pretty tough. It allows the cash portion of any assistance of to be withdrawn in cash via issuance of a separate card - and money can be taken out of that card at will, for whatever amount. But the portion meant to be for food remains on its own desginated card, and is strictly for food, which can be used to buy food at desginated merchants within the state and also outside of the state.
https://www.revisor.mn.gov/bin/bldbill.php?bill=H017

The changes were driven by the power of testimony. Don't underestimate the power of sunshine and powerful testimony when the ones in power are ignorant of realities on the ground. Yes, this was a Republican bill that started out stupid - luckily it was revised. (Don't worry, I'm not singling Republicans out. Democrats also have stupid bills of their own.)

Poet

Doug's picture
Doug
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Joined: Oct 1 2008
Posts: 3125
mistake

mistaken understanding

crash_watcher's picture
crash_watcher
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Posts: 146
Bahrain's Central Location And Geopolitical Importance

Hi diamarie, you could always read the article that I posted in today's DD, and took a few days to put together, but if you you need a summary in 142 characters or less, here it is:

Bahrain is majority Shiite but ruled by a Sunni king; Bahrain is in between Iran (Shiite) and Saudi Arabia (Sunni) and close to the oil.

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
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Posts: 1982
thanks!

Gosh darn it, Crash watcher - I got my Suni and Shiite mixed up. Thanks for straightening out my political dyslexia!

crash_watcher's picture
crash_watcher
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Posts: 146
your welcome!

But actually its "religious dyslexia," as Shiite and Sunni are not political parties, but rather are major divisions of the Muslim faith. But this division often ends up manifesting itself politically.

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