Daily Digest

Daily Digest 5/24 - Both Parties Advocating U.S. Default, Debt Trouble In The Eurozone, Ron Paul On The Debt Ceiling

Tuesday, May 24, 2011, 9:49 AM
  • David Stockman: "Both Parties And The White House Are Advocating A US Default"
  • U.S. Stocks Tumble as Concern Over Europe’s Debt Crisis Heightens
  • Global Stock Markets Fall As Spain Default Fears Grow
  • Spain and Italy Turn Against Greece Over Reform Efforts
  • If You Want Solutions, First Pin Down Where the Money Is Going
  • Morning Update/ Market Thread 5/23
  • WGC Issues Glowing Report On Gold Demand
  • The Limits To Growth Revisited
  • Ron Paul: Stop Raising the Debt Ceiling

Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

Economy

David Stockman: "Both Parties And The White House Are Advocating A US Default" (pinecarr)

"The problem is not the debt ceiling. When push comes to shove, at the 11th-hour, they will do it for a couple of weeks or months and we will have a little more borrowing headroom and will be back to the same impasse where we are now."

"The real problem is the de facto policy of both parties is default. When the Republicans say no tax increases, they're saying we want the U.S. government to default. Because there isn't enough political will in this country to solve the problem even halfway on spending cuts. When the Democrats say you can't touch Social Security, when you have Obama sponsoring a war budget for defense that is even bigger than Bush, then I say the policy of the White House is default as well."

U.S. Stocks Tumble as Concern Over Europe’s Debt Crisis Heightens (jdargis)

Treasury prices and the dollar rose. Asian and European shares were lower after developments in Greece, Spain and Italy refocused attention on the euro zone’s fiscal uncertainty. Manufacturing statistics released by Germany and China were softer than forecast, raising the prospect of slower growth in Europe and in China, which has the world’s second-largest economy, and unsettling investors.

Global Stock Markets Fall As Spain Default Fears Grow (pinecarr)

Escalating fears about Europe's debt crisis hit markets around the world, as the Spanish government's battering at the hands of its voters stoked investors' doubts as to whether Madrid will be able to carry out their painful spending cuts as planned.

Spain and Italy Turn Against Greece Over Reform Efforts (jdargis)

The markets seem to reflect the growing discord within the 17-member euro zone currency union, barely a year after European governments came together with a 750 billion euro ($1 trillion) safety net for debtor-nation members. Tensions also remain over whether to restructure Greece’s debt and force bondholders to take losses.

If You Want Solutions, First Pin Down Where the Money Is Going (pinecarr)

Everybody wants solutions. Here's the first step to any real solution: pin down exactly where all the money is going. Only when you know the true, full costs in any system, and have a system of accountability that aligns with the cost structrure, can any real solutions emerge.

    Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

Morning Update/ Market Thread 5/23 (pinecarr)

The ongoing (never ending) debt crisis in Europe is garnering attention over the weekend. The debate about who’s worse off in the world still mindlessly rages while the vast majority fail to understand the root problems of debt saturation, how we got that way, and WHO is behind the monetary madness. No real progress can or will be made until we exit the central banker paradigm, stop arguing about “stimulus” versus austerity (false left vs. right argument), and get on with the job of creating a money system that works at the benefit of the entire population, not just a few self-anointed narcissists.

WGC Issues Glowing Report On Gold Demand (pinecarr)

Central banks in developing countries, including the PBOC, turn to gold purchases as a means of diversifying their reserves," Cheng said. China has more than $3 trillion in foreign exchange reserves, Cheng said, and the government has expressed concerns about a weakening dollar.

Zhou Xiaochuan, the central bank governor, said in April that China's foreign exchange reserves were excessive, so the PBOC may set up a precious metals fund to diversify investment. "China's gold import policies set almost no limits," Cheng said.

The Limits To Growth Revisited (RG)

The PDF version of the convocation address delivered by Union Minister of State (Independent Charge) Environment and Forests, Jairam Ramesh at Tata Institute of Social Sciences, Mumbai on May 11, 2011.

Ron Paul: Stop Raising the Debt Ceiling (Stan G.)

The federal government once again has reached the limit of its legal ability to borrow money, meaning it cannot issue new Treasury debt without action by Congress to increase the debt ceiling limit. As of this month, our “official” national debt- which doesn’t include the staggering future payments promised to Social Security and Medicare beneficiaries- stands at $14.2 trillion...

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."

17 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Online)
Joined: Jul 30 2009
Posts: 4066
Greek default would hit others in euro zone (Moody's)

 

"NEW YORK (Reuters) - Around 450,000 people who work for U.S. states, counties, cities, towns and villages could get pink slips in fiscal 2012, sharply up from the 300,000 positions shed this year, a report said on Monday.

The number of job cuts will rise mainly because the federal stimulus program is ending while the cost of Medicaid is "spiraling," said the report by UBS Investment Research.

States got billions of extra dollars primarily for education and Medicaid from the stimulus plan. Medicaid is the state-federal health plan for the poor and disabled.

Maury Harris, a UBS economist, on a conference call said the deficits states and municipalities will have to close will climb to $155 billion in fiscal 2012 from about $108 billion in the current fiscal year."

"ATHENS (Reuters) - A Greek debt default would hurt other peripheral euro zone states and could push Portugal and Ireland into junk territory, Moody's said on Tuesday, warning it would classify most forms of restructuring as a default.

Markets have piled pressure on heavily indebted euro zone countries this week as investors worry not just about Greece but also about Spain, where the government suffered a major defeat in regional elections at the weekend, and after ratings agencies warned about the health of Italy and Belgium.

"A Greek default would be highly destabilizing and would have implications for the creditworthiness of issuers across Europe," Moody's Investors Service's chief credit officer in the region, Alastair Wilson, told Reuters in a telephone interview."

.................2A) Greek default could make others junk: Moody's

  • Other news, headlines and opinion:

China agency downgrades UK sovereign credit rating

U.K. Deficit Widens More Than Forecast to $16 Billion as Income Declines

Pound Depreciates Against Euro After Moody's Puts 14 UK Banks on Review

Japan crisis to delay Toshiba reactor orders

Egypt Yields Signal Higher Cost for $1 Billion Bond Sale as Economy Rocked

South Korea's Short-term Overseas Debt Rises to $146.7 Billion

State retirement plans facing billion dollar shortfall (Montana)

Spain Moves Forward With Lottery Privatization

EU policy options narrow to avert Greek default

ECB's Noyer Says Greek Restructuring a 'Horror'

Main Greek opposition rejects deal with government

Greek Jan-April State Budget Deficit Revised Slightly Wider

Greece to Accelerate Asset Sales as Bonds Drop

Greece to sell telecoms, state bank, top ports immediately

Shades of 2008: A Greek Default Won’t Be ‘Contained’, John Mauldin Says (Daily Ticker Video)

Greek CDS spreads at record; Italy, Spain stable

Belgium's Debt Outlook Revised to Negative by Fitch on Political Stalemate

Troubled home market creates generation of renters

Record defaults predicted for US CMBS

US Commercial Real Estate Prices Decline to Post-Crash Low, Moody's Says

Christie eyes lower income limit for Medicaid eligibility (NJ)

Belarus Devalues Ruble 36% Against Dollar, Sets New Limits

Hawaii Finance Director: Moody's GO Bond Downgrade Will Cost Hawaii Taxpayers More

India Bonds Fall On Fiscal Deficit Concerns, Rupee Up

Miami Beach faces possible $12 million budget gap

Michigan Schools Still Face Deep Cuts Next Fall

Taliban Raid Raises Concern Over Pakistan Nukes

NATO Intensifies Attacks on Qaddafi Loyalists

Gold Denominated in Euro Rises to Record 1,080.959 Euros/Oz

State Treasurer Says 'No' to More State Debt (Illinois)

James Turk - Gold to Have a Staggering Up-Move This Summer

 

Estatesavr's picture
Estatesavr
Status: Bronze Member (Offline)
Joined: Feb 12 2009
Posts: 77
okay, a different tack

if so many articles and postings are listed here on DD, what do we learn that we do not already know?

do they add to our awareness that peak oil, peak finance, peak etc are on the slippery slope?

i say that we look for what we already believe, and as Chris wrote 'where are the white swans?' one needs to measure one's certainty in information additions to what we feel to be a certain future

when we focus on these many articles, which i confess i enjoy, seek and follow, do we lose the forest for the proverbial trees?

for me, i find few if any new pieces of information that challenge my belief and reasoning that we are in serious decline

therefore, i will step back, posit what that means to my family and spend more time on preparation than analysis

i believe we have arrived at the point where action is far more valuable than insight

 

 

 

Katebois's picture
Katebois
Status: Member (Offline)
Joined: May 2 2011
Posts: 3
I wish I had found this site

I wish I had found this site sooner. I can see that what is being reported could seem repetitive; but new people come to the site for the first time everyday and for them today's postings maybe a bolt of lightning in relative darkness. The trouble with coming in late is that you know you are behind and you have to come up to speed as fast as possible. Without the daily reminders, and feedback from you who are more experienced it would take much longer to digest and begin to act on the great resources collected here. Thanks to those of you who have pioneered at this site (especially CM). Without you I would be hopelessly behind.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
This reads like an Alice in

This reads like an Alice in Wonderland adventure. Truly bizarre.

Mike

http://steadystate.org/mountebank-nobel/

Mountebank Wins Nobel for Infinite Planet Theory

by Rob Dietz

Few people have read the dense volumes published by the economist Milton Mountebank, but his work has affected you, me and every single person on the planet. Dr. Mountebank has revolutionized economic thought, and now he has been recognized for his singular efforts. Yesterday at a gala reception in Stockholm, Sweden, the chairman of Sveriges Riksbank, Peter Norborg, presented Dr. Mountebank with the Nobel Prize in Economics for his lifetime of work on
infinite planet theory.

In his presentation of the award, Mr. Norborg stated, "Dr. Mountebank has demonstrated imagination and inventiveness beyond what the rational mind can comprehend." Indeed, it is because of his theories that we all do what we do economically. Nations strive for continuous GDP growth and endless expansion of consumption thanks to infinite planet theory. Mr. Norborg went on to say, "All of our banks, including Sveriges Riksbank, owe him a huge debt. We finance  economic expansion. Our actions and decisions would be morally suspect if we lived on a finite planet."

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Mountebank Defined

Perhaps our friends at Merriam-Webster can shed light on this story:

moun·te·bank noun \ˈman-ti-ˌbaŋk\

1: a person who sells quack medicines from a platform
2: a boastful unscrupulous pretender. CHARLATAN
http://www.merriam-webster.com/dictionary/mountebank

Poet

Damnthematrix wrote:

This reads like an Alice in Wonderland adventure. Truly bizarre.

Mike

http://steadystate.org/mountebank-nobel/

Mountebank Wins Nobel for Infinite Planet Theory

by Rob Dietz

Few people have read the dense volumes published by the economist Milton Mountebank, but his work has affected you, me and every single person on the planet. Dr. Mountebank has revolutionized economic thought, and now he has been recognized for his singular efforts. Yesterday at a gala reception in Stockholm, Sweden, the chairman of Sveriges Riksbank, Peter Norborg, presented Dr. Mountebank with the Nobel Prize in Economics for his lifetime of work on
infinite planet theory.

In his presentation of the award, Mr. Norborg stated, "Dr. Mountebank has demonstrated imagination and inventiveness beyond what the rational mind can comprehend." Indeed, it is because of his theories that we all do what we do economically. Nations strive for continuous GDP growth and endless expansion of consumption thanks to infinite planet theory. Mr. Norborg went on to say, "All of our banks, including Sveriges Riksbank, owe him a huge debt. We finance  economic expansion. Our actions and decisions would be morally suspect if we lived on a finite planet."

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Mountebank

Mountebank from Dictionary.com

moun·te·bank   
[moun-tuh-bangk] Show IPA
–noun
1.
a person who sells quack medicines, as from a platform in public places, attracting and influencing an audience by tricks, storytelling, etc.
2.
any charlatan or quack.

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Limits to Growth.(Sorry we said those nasty things about you)

Type in "India's Population" into Wolfram Alpha.

http://www.wolframalpha.com/input/?i=India%27s+population

You get 1.21Billion people and fine example of exponential growth graphed out for you.

If you set your "really impressive" IQ bar at 1 in a million, that means India has 1.21exp12/1exp6=1210 people in India with really impressive IQ scores.

Some of those must be motivated and well educated. But goodness gracious me, how they beat around the bush.

Yes, India is in trouble, again.

ao's picture
ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
Estatesavr wrote: if so many
Estatesavr wrote:

if so many articles and postings are listed here on DD, what do we learn that we do not already know?

do they add to our awareness that peak oil, peak finance, peak etc are on the slippery slope?

i say that we look for what we already believe, and as Chris wrote 'where are the white swans?' one needs to measure one's certainty in information additions to what we feel to be a certain future

when we focus on these many articles, which i confess i enjoy, seek and follow, do we lose the forest for the proverbial trees?

for me, i find few if any new pieces of information that challenge my belief and reasoning that we are in serious decline

therefore, i will step back, posit what that means to my family and spend more time on preparation than analysis

i believe we have arrived at the point where action is far more valuable than insight

WELEARNALOTWEDONTKNOWANDANALYSISDOESNTINTERFEREATALLWITHMYPREPARATIONSANDINSIGHTWITHOUTACTIONSISUSELESS

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Online)
Joined: Jul 30 2009
Posts: 4066
Fed to widen counterparty list....Fannie and Freddie?

"The U.S. Federal Reserve is

looking to add another group of big players to round out its

roster of counterparties that will participate in its exit

strategy when it is ready to end its ultra-loose monetary

policy. On Tuesday, the Federal Reserve Bank of New York laid out

the criteria for Fannie Mae (FNMA.OB), Freddie Mac (FMCC.OB)

and other government-sponsored entities, or GSEs, to become

counterparties it could tap to help drain the $1.5 trillion in

excess reserves from the banking system." Undecided

 

 

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
http://www.theage.com.au/busi

http://www.theage.com.au/business/class-actions-shake-bhp-20110524-1f2gk.html

Class actions shake BHP
Leonie Wood, Barry Fitzgerald
May 25, 2011

BHP Billiton has been hit by class actions in the US as Arkansas landowners allege extraction techniques used in the group's recently acquired shale gas business are causing earthquakes, poisoning their water sources and
polluting the soil and air.

Arkansas landowners accuse BHP's Houston-based petroleum division, along with three other gas producers, of wanton and reckless disregard for their safety by allegedly allowing noxious emissions to contaminate water, air and
soil.

Other landowners allege that the reinjection of salt water into the deep shale formations has triggered a disturbing series of earthquakes, culminating in a magnitude 4.7 quake on March 4.

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1323
New and improved Nobel prize in every Cracker Jack box
In article from Damnthematrix wrote:

presented Dr. Mountebank with the Nobel Prize in Economics for his lifetime of work on infinite planet theory.

I guess it's not just the peace prize that has lost all meaning......Undecided

Nobel prize in Cracker Jack box

 

SingleSpeak's picture
SingleSpeak
Status: Gold Member (Offline)
Joined: Nov 30 2008
Posts: 496
Just a Question

 

Wouldn't it be more accurate to call this section the "Daily Indigestion"? Wink

guardia's picture
guardia
Status: Platinum Member (Offline)
Joined: Jul 26 2009
Posts: 592
Re: Limits to Growth.(Sorry we said those nasty things about you
Arthur Robey wrote:

Type in "India's Population" into Wolfram Alpha.

http://www.wolframalpha.com/input/?i=India%27s+population

You get 1.21Billion people and fine example of exponential growth graphed out for you.

If you set your "really impressive" IQ bar at 1 in a million, that means India has 1.21exp12/1exp6=1210 people in India with really impressive IQ scores.

Some of those must be motivated and well educated. But goodness gracious me, how they beat around the bush.

Yes, India is in trouble, again.

The problem with being really really smart is that since everyone around you is so dumb, you can't help but feel that you may just be the idiot of the village. Or if you try to talk to anyone, they may very well simply crucify you (yes including Him) for being annoying. Never underestimate the importance of teamwork, or the lack thereof...

Samuel

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2237
Thanks Rhare

 

rhare wrote:

I guess it's not just the peace prize that has lost all meaning......Undecided

Thanks Rhare; first good laugh of the day!

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Montebank revisited.

Good Lord!

I thought you were having a lend of me.

Montebank does exist and he has got the Nobel prize for Economics.

http://www.energybulletin.net/stories/2011-05-24/mountebank-wins-nobel-infinite-planet-theory

He has a multivariate equation too long to write on a whiteboard and that only 4 Economists in the world understand that shows that infinite growth is the moral imperative.          Wow.

That is in contrast to Einstein's E=MC**2 which anyone can understand.

We use our big brains to rationalize our insanities.

John Steinsvold's picture
John Steinsvold
Status: Member (Offline)
Joined: Jan 26 2009
Posts: 16
An Alternative to Capitalism (which will solve our debt problem)
Several decades ago, Margaret Thatcher claimed: "There is no alternative". She was referring to capitalism. Today, this negative attitude still persists.
 
I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to an essay titled: "Home of the Brave?" which was published by the Athenaeum Library of Philosophy:
 
http://evans-experientialism.freewebspace.com/steinsvold.htm
 
John Steinsvold
 
Perhaps in time the so-called dark ages will be thought of as including our own.
--Georg C. Lichtenberg
doorwarrior's picture
doorwarrior
Status: Silver Member (Offline)
Joined: Oct 13 2009
Posts: 166
Atlas Shrugged

"Home of the Brave?" which was published by the Athenaeum Library of Philosophy

Very funny!

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments