Daily Digest 6/7 - The Big Reset, Hard Debt Choices Ahead, How To Feed A Healthy Family
- The Big Reset: Don't Get Left Behind
- 21 Signs That Global Financial Markets Could Be In For A Long Summer
- Want a Healthy, Well Fed Family? Here’s How to Start
- Sacha Baron Cohen's "The Dictator" delivers Inspired Satire on American Democracy
- CBO: Hard Choices Ahead On Debt
- Fed Intervention and the Market: New Update
- How to Ensure U.S. Wind Power Succeeds without Subsidies
The Big Reset: Don't Get Left Behind (Chris M.)
Raoul is a Goldman Sachs alum that went on to co-manage one of the world’s largest hedge funds in London. He now writes research for senior money managers at the Global Macro Investor from his (early) retirement home on the coast of Spain. In short, he’s an insider’s insider.
The presentation is very straight forward, incisive, and very dark. It makes a clear case why the current version of our global financial system will collapse and what the results of this collapse will be.
#8 New orders for factory goods in the United States have declined three times in the last four months. That is a sign that the “economic recovery” in the U.S. has clearly stalled.
With enough rich soil available to grow on, you can feed your entire family for the decade or more a financial/economic crisis takes to play out (or as the climate change worsens).
Think of it as a rainy day fund or emergency bank account.
"Why are you guys so anti-dictators? Imagine if America was a dictatorship. You could let 1 percent of the people have all the nation's wealth. You could help your rich friends get richer by cutting their taxes and bailing them out when they gamble and lose. You could ignore the needs of the poor for health care and education. Your media would appear free, but would secretly be controlled by one person and his family. You could wiretap phones. You could torture foreign prisoners. You could have rigged elections. You could lie about why you go to war. You could fill your prisons with one particular racial group and no one would complain. You could use the media to scare the people into supporting policies that are against their interests."
CBO: Hard Choices Ahead On Debt (Jeff B.)
Under that scenario over the long run, debt falls to 53% of the size of the economy by 2037 from more than 70% today. Tax revenue would rise to 24% of GDP in 25 years and keep growing. That would be well above the 18.3% historical average.
Simultaneously, spending in vast portions of the federal budget would shrink dramatically. Other than Medicare, Medicaid, Social Security and interest, spending would fall to the lowest percentage of GDP since before World War II.
If a picture is worth a thousand words, this chart needs little additional explanation — except perhaps for those who are puzzled by the Jackson Hole callout. The reference is to Chairman Bernanke's speech at the Fed's 2010 annual symposium in Jackson Hole, Wyoming. Bernanke strongly hinted about the forthcoming Federal Reserve intervention that was subsequently initiated in November of 2010, namely, the second round of quantitative easing, aka QE2.
Optimal policies, we found, would be designed to drive cost declines and performance improvements in zero-carbon energy technologies like wind turbines and solar panels. While deployment has gone up and costs down for wind power and other clean energy markets in recent years, these advances have not been enough to counter the bust expected after key subsidies expire. The looming PTC expiration is a matter of chief concern this week at WindPower 2012, the industry's annual development and exposition conference.
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