Daily Digest

Daily Digest 5/30 - Utah Makes Coins Worth Their Weight in Gold, USPS Says Total Collapse is Imminent

Monday, May 30, 2011, 10:33 AM
  • Utah Law Makes Coins Worth Their Weight in Gold (or Silver)
  • Greece Set for Severe Bail-Out Conditions
  • USPS Report Says Total Collapse is Imminent
  • To QE3 or Not to QE3 and Does it Matter?
  • Why Keystone pipeline will weaken the US
  • Shale Boom in Texas Could Increase US Oil Output
  • Entropy, Peak Oil and Stoic Philosophy

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Economy

Utah Law Makes Coins Worth Their Weight in Gold (or Silver)

Now, however, Utah has passed a law intended to encourage residents to use gold or silver coins made by the Mint as cash, but with their value based on the weight of the precious metals in them, not the face value — if, that is, they can find a merchant willing to accept the coins on that basis. The legislation, called the Legal Tender Act of 2011, was inspired in part by Tea Partysupporters, some of whom believe that the dollar should be backed by gold or silver and that Obama administration policies could cause a currency collapse.

Greece Set for Severe Bail-Out Conditions

European leaders are negotiating a deal that would lead to unprecedented outside intervention in the Greek economy, including international involvement in tax collection and privatisation of state assets, in exchange for new bail-out loans for Athens.

USPS Report Says Total Collapse is Imminent

The United States Postal Service is headed off a cliff, and – according to the US Government Accountability Office - few are even giving its demise a second thought. That’s the same USPS, by the way, that was once a great source of national pride, that united America’s coasts and transmitted vital information at incredible speeds, that kept families connected across rivers and valleys, and that inspired the unofficial creed “neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.”

To QE3 or Not to QE3 and Does it Matter?

There has been a lot of talk about whether the Fed will discontinueQuantitative Easing (QE) and let the economy stand (or fall) on its own legs this summer. As we explore this question, it’s important to keep in mind the Fed will continue reinvesting principal payments from mortgage-backed securities and maturing Treasury holdings to keep the Fed’s balance sheet in excess of $2.5T.

Crash Course DVDInformation you can't afford to live without: own the Crash Course today! (NTSC or PAL)

Energy

Why Keystone pipeline will weaken the US

In the oil business few endeavors promise more bluster than a pipeline. And TransCanada's grandiose and troubled proposal to ship 1.1 million barrels of Canadian bitumen to the U.S. Gulf coast ably illustrates a good batch of petroleum hubris. Keystone's boisterous defenders, and there are many, include the American Petroleum Institute, the Canadian government and U.S. Republicans, or what wags now call the Grand Oil Party. This oil-on-the-brain crowd swears that the massive $16-billion project will deliver lower gasoline prices, improve energy security, create jobs, save mankind, butter toast and even mix a better martini.

Shale Boom in Texas Could Increase US Oil Output

The Texas field, known as the Eagle Ford, is just one of about 20 new onshore oil fields that advocates say could collectively increase the nation’s oil output by 25 percent within a decade — without the dangers of drilling in the deep waters of the Gulf of Mexico or the delicate coastal areas off Alaska. There is only one catch: the oil from the Eagle Ford and similar fields of tightly packed rock can be extracted only by using hydraulic fracturing, a method that uses a high-pressure mix of water, sand and hazardous chemicals to blast through the rocks to release the oil inside.

Entropy, Peak Oil and Stoic Philosophy

Now, when we discuss complex systems, of course what comes to our minds is the subject we are discussing today – the economy and what makes it move. This is surely a very complex system and one of the problems economists have is that most of their models just don't seem to be working very well. Sometimes, economists seem to be still thinking of the "invisible hand" and that looks very much like the angels pushing planets of long ago. But astronomers are not thinking or angels any longer whereas economists... well, let me not engage in economist-bashing.

Please send article submissions 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."

10 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3879
Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 2568
The Greece bomb has just gone off

Greece in dire straits again - the EU and IMF racing to assemble massive bailout #2

http://reut.rs/lHvYo6

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 2568
Germany to go nuke free by 2022

Minister: Germany to go nuke free by 2022

http://bit.ly/koj4Y6

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3879
Greeks Yank Billions Out Of Country's Banks As Crisis Worsens

He gives a link to the translation. The translation is bad, but easily understood.

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

"Greek two-year spreads over corresponding German treasury notes, or schatz, were up 0.114 basis points at 23.168 percentage points by late morning in Europe. Further down the curve, Italian and Spanish yield spreads have widened more than Greek yield spreads as Italy and Spain are set to sell government bonds Monday and Thursday, respectively.

Two-year outright Greek yields are indicated at around 24.733%, according to Tradeweb, albeit trading volumes are symbolic, especially as the U.K. market is closed Monday due to a public holiday."

Greece needs to restructure debt: Slovakia

es2's picture
es2
Status: Bronze Member (Offline)
Joined: Dec 31 2010
Posts: 68
Weekend funnies, other news

Weekend funnies http://economicedge.blogspot.com/2011/05/weekend-funnies_28.html

Glittering Gold Need Not Set Off a Panic Over Inflation: View http://www.bloomberg.com/news/2011-05-30/glittering-gold-need-not-set-of...

Russia bans German, Spanish vegetables http://www.google.com/hostednews/afp/article/ALeqM5hVTl7tN8jTlk_RaRXMjuz...
Russia on Monday banned the import of all vegetables from Germany and Spain and warned the sanction could soon be applied to the rest of Europe because of the deadly E. coli bacteria scare.

Ireland rules out second bailout; to test market in 2012 http://www.reuters.com/article/2011/05/30/us-ireland-idUSTRE74T30N20110530
Ireland's government moved on Monday to quash speculation it would be forced to seek a second EU-IMF bailout and said it would make a tentative return to international debt markets in the final quarter of next year.

5/26: Olsen Twins Use Made-in-America Hook to Lure Wealthy Shoppers http://www.bloomberg.com/news/2011-05-26/olsen-twins-lure-wealthy-shoppe...

CIA Warns Of A Greek Military Coup, Rebellion, If Austerity Intensifies http://www.zerohedge.com/article/cia-warns-greek-military-coup-rebellion...

Uptown chaos leaves 1 dead http://www.charlotteobserver.com/2011/05/30/2337890/uptown-chaos-leaves-...
The trouble comes 15 months before Charlotte hosts the 2012 Democratic National Convention - which likely will ensure close scrutiny of what happened.

Empty summer in the city awaits urban youths facing cutbacks to camps, pools, libraries, jobs http://www.washingtonpost.com/business/empty-summer-in-the-city-awaits-u...
A rising number of children can look forward to excruciatingly boring school breaks this year as budget crises in places such as New York, Washington, D.C., Houston and Detroit rob them of the activities and programs that have long defined summer in the city for urban youngsters.

Russia central bank hikes deposit rate, hints will pause http://www.reuters.com/article/2011/05/30/us-russia-rates-idUSTRE74T1MM2...
Russia's central bank surprised markets by raising its deposit rate on Monday, citing inflation expectations and risks to economic growth, and indicated that current rates will "be acceptable" in coming months.

Richard Russell - Subscribers Should Buy Silver Once Again http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/30_Ri...

Kitco News Market Nuggets: http://www.kitco.com/reports/KitcoNewsMarketNuggets20110530.html
Market Nuggets: BlackRock Looking to Develop Iron, Titanium, Vanadium Mine in Northern Quebec
Market Nuggets: External Intervention on Greek Tax Collection and Privatization a Possibility: BBH
...

5/26: BloombergNews and Zerohedge fun:
http://twitter.com/#!/BloombergNews/status/73973355962834945
http://twitter.com/#!/zerohedge/status/73968480826818560

horstfam's picture
horstfam
Status: Bronze Member (Offline)
Joined: Sep 6 2008
Posts: 71
The IMF "Trading Around the World Game" for real

Here is some more fun for your holiday weekend! The IMF has developed a game that helps you better understand world trade. (As someone wrote earlier, "You can't make this [email protected] up!")

http://www.imf.org/external/np/exr/center/students/trade/index.htm

Enjoy!

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3879
Typhoon touches down in tsunami zone

"At the Fukushima nuclear plant, there is concern the strong winds and rain will carry radioactive material into the air and sea.

Workers have sprayed the damaged reactors with "anti-scattering" agents, but TEPCO has said the

plant is not properly prepared for the storm. So far today, contaminated water levels in the turbine buildings of 3 reactors have all gone up.

No word on any of that water spilling into the ocean - yet."

........................Typhoon Songda Hits Earthquake-Ravaged Japan

TommyHolly's picture
TommyHolly
Status: Bronze Member (Offline)
Joined: Nov 9 2010
Posts: 90
The energy article "Why

The energy article "Why Keystone pipeline will weaken the US" posted above is a nasty political hitpiece.  You have to read through a few paragraphs filled with Ad Homenim attacks against the GOP, Sarah Palin, and anyone that thinks getting more oil for the US is a good idea.  I would ignore it as complete bunk.  The main point they are trying to make is that some guy on the President's energy concil (yeah no bias there, LOL)  has said that if Canada gives us more oil cheaply with a pipeline, the Saudis and the rest of OPEC will be completely successfull at driving them out of business and running the costs of oil up as revenge... Why is this link even on this website?

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3879
Europe Set to Offer 2nd Bailout to Greece

"Moody's Investors Service said Tuesday it put Japan's Aa2 local and foreign currency bond ratings on review for possible downgrade, due to long-term fiscal concerns. "The review has been prompted by heightened concern that faltering economic growth prospects and a weak policy response would make more challenging the government's ability to fashion and achieve a credible deficit reduction target," Moody's said in a statement."

  • A few other headlines:

Japan could face overseas lawsuits from nuclear crisis

Japan April jobless rate rises to 4.7 pct

Euro Rises to 3-Week High on Speculation Germany to Support New Greek Aid

Europe Set to Offer 2nd Bailout to Greece

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Good 'ol "Limits 2 Growth", (don't tell the chosen many.)

Entropy, Peak Oil and Stoic Philosophy

The howls and yelps of the doomed, how they railed against their Oracles.

If only they had ears to hear ! They could have stopped their facinating wars and spent their inheritance getting out of the gravity well. They could have been the uberMenschen.

The surface of a planet is no place for Industry.

Because you have been incontinent , you have doomed yourselves to the scrapheap of evolution. Your children and grandchildren will live short, uncomfortable lives. If they remember Darwin, they will build futile alters to him.

For you they will build statues to piss on.

But there is a chance. A small flicker of the dying embers. Nurture it. Guard it with your life, unterMenschen.

http://www.lenr-canr.org/acrobat/MizunoTnucleartra.pdf

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