Daily Digest

Daily Digest 3/24 - Japan's Hydra-Headed Disaster Fallout, Portugal PM Resigns Over Budget, Oil Will Be Gone In 50 Years

Thursday, March 24, 2011, 10:46 AM
  • The Dominoes Are Lining Up, Again
  • Will JPMorgan Now Make and Take 'Delivery' of Its Own Silver Shorts?
  • Investor Beware - Leverage Accounts
  • Japan's Hydra-Headed Disaster: The Fallout
  • The Insidious Effects of Japan's Disaster
  • The "Fukushima Fifty"
  • Budget 2011: George Osborne puts fuel in the tank, but potholes lie ahead
  • Portugal PM Jose Socrates resigns after budget rejected 
  • Oil Will Be Gone in 50 Years: HSBC

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

The Dominoes Are Lining Up, Again (Jay G.)

I have thought many times in the past year or so that the markets were really lining up for a fall in a way that would put market prices in line with reality. The Fed has printed boatloads of money and the government has proven that it is willing to recklessly jeopardize the nation's balance sheet in ways that I though were impossible politically or financially. I have yet to see any of the major problems get resolved though and as of yet the same dominoes that were beginning to fall in 2008/2009 are still largely in a state of criticality today. My thesis continues to be based on the idea that we cannot solve a debt crisis by borrowing more money. Deflation is a cancer and the cancer will continue to eat away at the system until the debts get resolved.

Will JPMorgan Now Make and Take 'Delivery' of Its Own Silver Shorts? (Claire H.)

Until now, JP Morgan did not have a NYMEX/COMEX vault license. They had to send silver, for example, to HSBC, Brinks, Scotia Mocatta and/or the Delaware Depository in order to "deliver" it on COMEX. Those vaults have been NYMEX/COMEX licensed for a very long time. But now J.P. Morgan has its own vault license, and the manner in which it seems to have obtained it, is troubling. The bank can now, potentially, deliver short obligations to itself.

Investor Beware - Leverage Accounts (adam)

How is it possible in this great 21st century gold and silver bull market, this many folks are losing that kind of capital?

Well the answer lies somewhere between investor ignorance, a lack of proper due diligence, poor silver and gold investment vehicle choices, investor greed, and perhaps electing and entrusting the wrong parties to do business with.

Today we would like to tackle one of the biggest silver and gold investor killers out there -> Leverage Accounts.

Japan's Hydra-Headed Disaster: The Fallout (jdargis)

The immediate tragedy may be Japan’s; but it also throws up longer-term questions that will eventually affect people all the way round the globe. Stockmarkets stumbled on fears about the impact on the world’s third-biggest economy. Japan’s central bank seems to have stilled talk of financial panic with huge injections of liquidity. Early estimates of the total damage are somewhat higher than the $100 billion that Kobe cost, but not enough to wreck a rich country. Disruption to electricity supplies will damage growth, and some Asian supply chains are already facing problems; but new infrastructure spending will offset some of the earthquake’s drag on growth.

The Insidious Effects of Japan's Disaster (pinecarr)

The accident will inevitably alter long-term energy planning around the world. The growing political traction that nuclear power has gathered over the last decade or so, as the price of fossil fuels has climbed, may be irrevocably damaged. With so-called "green" energy unable to replace the wattage that will be lost by a waning nuclear sector, look for the traditional fossil fuels to fill the breach. But the effects of Japan's nuclear accident go beyond health and energy policy.

After the EU, US, and China, Japan has the fourth largest economy in the world. Japanese industry provides many of the high-tech systems that are essential for producing relatively low-tech products such as automobiles. Already the US computer industry is being affected by shortages of vital parts manufactured in Japan.

The "Fukushima Fifty" (pinecarr)

Whatever one thinks about the near-criminal strategy taking place behind the scenes as to how Japan is handling the bailout, one thing is certain: the 50 Tepco workers who are currently laboring at Fukushima, doing all they can to restore the plant back to life, even at the cost of their own lives, are doing a tremendous service to their fellow citizens (futile or otherwise), and deserve to be called heroes.

Budget 2011: George Osborne puts fuel in the tank, but potholes lie ahead (pinecarr)

The Chancellor announced a £2 billion-a-year windfall levy on North Sea oil to fund an immediate cut in fuel duty of 1p per litre. He also postponed a 5p rise in fuel duty due next month and introduced a fuel price stabiliser to keep costs at the pumps down.

Portugal PM Jose Socrates resigns after budget rejected (pinecarr)

Portuguese Prime Minister Jose Socrates has resigned after parliament rejected an austerity budget.

The defeat is likely to trigger a bailout similar to the rescue packages Greece and the Republic of Ireland had to accept last year.

Energy

Oil Will Be Gone in 50 Years: HSBC (Ivo)

"Gas is less of a constraint, but transporting it and using it to meet transport demand is a major issue," she said. "Coal is the most abundant with 176 years left, but this is the worst carbon culprit."

If supplies were not constrained, the world would see a 110 percent jump in demand by 2050, equivalent to 190 million barrels a day, to fuel growth in the emerging world, Ward 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."

8 Comments

saxplayer00o1's picture
saxplayer00o1
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dps's picture
dps
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Got my Book

Got my autographed hard-copy of Chris' book yesterday.  Started reading it last night.  Thank you very much!!!  I'm really enjoying it already.  ... dons

saxplayer00o1's picture
saxplayer00o1
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Injuries to delay work at Japan's damaged nuclear plant

"Austrian researchers made the calculations by using the global network of detectors designed to sniff out clandestine nuclear bomb tests.

Iodine-131 is being released at daily levels 73% of those detected after Chernobyl, while the daily amount of cesium-137 is about 60%, according to researcher from Austria's Central Institute for Meteorology and Geodynamics.

How do researchers contrast the two accidents?"

 ==================================================

Injuries to delay work at Japan's damaged nuclear plant

Julian: rebound tough to figure, QE3 "imminent"

idoctor's picture
idoctor
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Marc Faber

Marc Faber

saxplayer00o1's picture
saxplayer00o1
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Radiation worries expand (Level 6)

"According to the Japanese newspaper Asahi Shimbun, the Fukushima event has overcome Three Mile Island incident in terms of seriousness, and has been upgraded from Level 5 "Accident with Wider Consequences" to Level 6 "Serious Accident." Only Chernobyl is a Level 7 event.

In Tokyo and peripheries, stores in varies wide areas were reported to be running out of bottled water, as families with infant continued to err on the side of caution rushing to get safer water supplies, avoiding to use tap water after authorities warned it may contain radioactive particles harmful for young children.

The ban on food imports widened across the Asian region as Singapore is the first country to find traces of radiation on vegetables imported from Japan. However, it is thought that for human beings to be contaminated by the minor radiation material found, one should consume that specific vegetable every day for a full year; nonetheless, it is a very sensitive issue for the population in Asia."

.......................Nuclear Crisis in Japan Level 6

saxplayer00o1's picture
saxplayer00o1
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SingleSpeak's picture
SingleSpeak
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Posts: 506
Anaheim cuts pay 5 percent, hours 10 percent

Now this is f#%king ridiculous. They need to make cuts to reduce liabilities so they cut the hours by 10% but only cut the pay by 5%. Just reduce the hours by 5% so at least the taxpayer is not paying more than they were per hour for those employees. It's like the Wall Street gang, "We might lose them if we don't pay well." Who are you fooling?

SS

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
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Posts: 2240
re: Anaheim
SingleSpeak wrote:

Now this is f#%king ridiculous. They need to make cuts to reduce liabilities so they cut the hours by 10% but only cut the pay by 5%. Just reduce the hours by 5% so at least the taxpayer is not paying more than they were per hour for those employees. It's like the Wall Street gang, "We might lose them if we don't pay well." Who are you fooling?

It's stories like this that underline for me that the rank and file in society just don't get it.  Which makes it self-evident to me that there is no saving the current way of doing things.  Those in charge not only will not make meaningful changes, they simply do not see that there is a need for meaningful change.  Which explains the "Fight Club" quote in my sig, below.

Viva -- Sager

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