Daily Digest

Daily Digest 7/19 - Mastering The Machine, Ron Paul On Banking, Green Skeptics Sally Forth To Oil Spill

Tuesday, July 19, 2011, 9:44 AM
  • Mastering The Machine
  • The Head Of The World's Biggest Hedge Fund Sees "Economic Collapse" Due To Money Printing By Early 2013
  • How Our Current Banking System Came To Be, And What We Can Do About It
  • Ron Paul: "We Need To Stop Allowing Secretive Banking Cartels To Endlessly Enslave Us
  • China, Iraq Pledge Further Reciprocal Cooperation As PM Visits
  • UK Banks Dragged Into Eurozone Crisis As Global Markets Take Fright
  • Green Skeptics Sally Forth To Oil Spill
  • TEPCO Acts As Typhoon Heads For Fukushima
  • Herders Say Weather Will Worsen

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Mastering The Machine (jdargis)

Many hedge-fund managers stay pinned to their computer screens day and night monitoring movements in the markets. Dalio is different. He spends most of his time trying to figure out how economic and financial events fit together in a coherent framework. “Almost everything is like a machine,” he told me one day when he was rambling on, as he often does. “Nature is a machine. The family is a machine. The life cycle is like a machine.” His constant goal, he said, was to understand how the economic machine works. “And then everything else I basically view as just a case at hand. So how does the machine work that you have a financial crisis? How does deleveraging work—what is the nature of that machine? And what is human nature, and how do you raise a community of people to run a business?”

The Head Of The World's Biggest Hedge Fund Sees "Economic Collapse" Due To Money Printing By Early 2013 (pinecarr)

As part of its most recent issue the New Yorker has released a must read interview with Ray Dalio - head of the world's biggest hedge fund, Bridgewater. Dalio's fund, which according to some may now be as large as $80 billion, continues to outperform even in this problematic environment, indicating that unlike various other managers who shall remain nameless, and whose wealth is built up almost exclusively on one trade (and that belonging to someone else in the first place), Dalio, despite rumors that he is preparing to leave his current position and is actively seeking a replacement, is still keenly able to adapt to changing macro conditions. Which is why his warning about future rounds of QE, which he sees as a certainty, should be heeded. Especially since it conforms 100% with the warnings of Zero Hedge - Dalio believes that future inevitable money printing will "lead to a collapse in currencies and bond markets." Dalio is even kind enough to give a time frame. "I think late 2012 or early 2013 is going to be another very difficult period." He is, to say the least, quite diplomatic.

How Our Current Banking System Came To Be, And What We Can Do About It (Claire H.)

Watch this eye-opening series to discover how the birth and development of our current banking system came to be, which includes guidelines for the people to cure our financial disease.

Ron Paul: "We Need To Stop Allowing Secretive Banking Cartels To Endlessly Enslave Us (jdargis)

First of all, politicians need to understand that without real change default is inevitable. In fact, default happens every day through monetary policy tricks. Every time the Federal Reserve engages in more quantitative easing and devalues the dollar, it is defaulting on the American people by eroding their purchasing power and inflating their savings away.

China, Iraq pledge further reciprocal cooperation as PM visits (pinecarr)

China and Iraq on Monday vowed to conduct further reciprocal cooperation in oil exploration, electricity and other fields, and signed two cooperation deals.

The pledge was made during talks between Premier Wen Jiabao and visiting Iraqi Prime Minister Nuri Al-Maliki, who's also the first prime minister to visit China in the over 50 years of history of diplomatic relations.

"The Chinese government will encourage companies to establish a long-term and stable relationship on oil and natural gas supply and demand with the Iraqi side and expand cooperation in oil exploration, refinery and equipment trade," Wen said.

UK Banks Dragged Into Eurozone Crisis As Global Markets Take Fright (pinecarr)

More than £5bn was wiped off the value of three of Britain's biggest banks on Monday as global financial markets took fright at the deepening crisis in the eurozone.

Stocks fell heavily in Europe and North America while gold rose to a new record of more than $1,600 (£995) an ounce amid concerns that Thursday's emergency summit of EU leaders would once again fail to resolve the debt problems of the single currency's weak members.


Green Skeptics Sally Forth To Oil Spill (pinecarr)

A fishing boat packed with non-governmental volunteers will set off Sunday for the Penglai 19-3 oil field in Bohai Bay to inspect the spill amid suspicions that facts are being concealed.

They want to assess the true level of contamination and inform the public, Feng Yongfeng, a senior researcher with the Beijing-based NGO Greenbeagle, one of the activity's initiators, told the Global Times on Friday.

TEPCO Acts As Typhoon Heads For Fukushima (pinecarr)

The eye of Ma-on, categorised as "extremely strong," was about 1,200km from the Fukushima plant, according to the website of the Japan Meteorological Agency, which issued warnings for floods and high waves along the southern coast from Okinawa to Tokyo. The storm was heading north and may cross Kyushu early today. The United States Navy Joint Typhoon Warning Center said the storm may pass over the Fukushima plant by Thursday.

Herders Say Weather Will Worsen (Mike K.)

Mongolian herders may not know the term “global climate change,” but almost all know that their weather is changing. If asked whether the weather will get better, stay the same or get worse, most of them will say the weather will get worse. Mongolian herders already face difficult seasons with winter temperatures down to minus 40 degrees Celsius and strong, gusty cold spring winds. Summer may not offer much of a respite. The days alternate between cold nights and daytime heat waves or cold, windy, rainy days. Over the last 20 years strong wind gusts have become more frequent and storms arrive with little warning. The herders love their lives, but many are afraid there may be no future in herding for their children.

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."


saxplayer00o1's picture
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Joined: Jul 30 2009
Posts: 4279
Yields soar on Spanish bonds

"Spain was forced to offer sharply higher returns on Tuesday to sell 4.45 billion euros ($6.32 billion) in government bonds as investors worried over sovereign debt burdens in the eurozone.

On the 12-month bonds, the average rate or yield soared to 3.702 percent from 2.695 percent at the last such auction on June 14.

For 18-month bonds, the yield was up to 3.912 percent from 3.26 percent."

............1A) Interest rates soar in Spanish bond auction

"European leaders are struggling to convince investors that they will agree on a second Greek bailout at a summit this week as record bond yields boosted financing costs at sales of Spanish and Greek debt.

European Union government chiefs plan to meet for the second time in a month on July 21, aiming to break a deadlock over a new Greek rescue that has spooked investors. Spanish and Italian bond yields surged yesterday, piling pressure on officials to end the turmoil. Spain and Greece sold 6.08 billion euros ($8.6 billion) of bills today.

“As another D-day looms on Thursday, we have few soothing words,” Suki Mann, senior credit strategist at Societe Generale SA in London, wrote in a note to investors. “Greece appears beyond repair, Italy is on the brink and the chances are that the euro might be no more very soon.” "

  • Other news, headlines and opinion:

San Francisco to shutter courtrooms, lay off 200 ("The civil justice system in San Francisco is collapsing")

China’s Treasury Holdings Make U.S. Woes Its Own

Asia braces for direct hit from the West's debt woes

Trichet: Governments must prevent Greek default

Cisco Cuts 6,500 Workers, Record $1.3B in Costs

Alabama county wants $1.3 billion debt reduction: report (Jefferson County)

State receiver to meet with Central Falls retirees

Borders forced to liquidate, 11000 employees to lose jobs

Harrisburg mayor urges council's OK on state plan

North Las Vegas struggles to stay afloat amid myriad legal woes

Cincinnati Braces For More Budget Cuts

Minnesota bars denied permit renewal as state shutdown continues

Bank of America Has Record Loss on Bad Home Loans

BofA Needs $50 Billion Cushion as Mortgage Expenses Swell

European Banks Face Pressure to Boost Funds

Closing Costs Soar

Moody's Sees Risk of Strategic Default Rising in Low-Risk Areas

Homeownership Rate May Decline Further

Special report: Banks continue robo-signing


rjs's picture
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Joined: Aug 8 2009
Posts: 445
Defaulting to Big Government

Defaulting to Big Government – Simon Johnson – Leading United States congressmen are determined to provoke a showdown with the Obama administration over the federal government’s debt ceiling. These representatives – with whom I've interacted at three congressional hearings recently – are convinced that the US federal government is too big relative to the economy, and that drastic measures are needed to bring it under control. Depending on your assessment of “Tea Party” strength on Capitol Hill, at least a partial debt default does not seem as implausible as it did in the past – and recent warnings from ratings agencies reflect this heightened risk. But the consequences of any default would, ironically, actually increase the size of government relative to the US economy – the very outcome that Republican intransigents claim to be trying to avoid. The reason is simple: a government default would destroy the credit system as we know it.


jumblies's picture
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Joined: Jun 13 2010
Posts: 244
NHS services to be opened up to competition

This is not good...


The government will open up more than £1bn of NHS services to competition from private companies and charities, the health secretary announced on Tuesday, raising fears it will lead to the privatisation of the health service.

In the first wave, beginning in April, eight NHS areas – including musculoskeletal services for back pain, adult hearing services in the community, wheelchair services for children, and primary care psychological therapies for adults – will be open for "competition on quality not price". If successful, the "any qualified provider" policy would from 2013 see non-NHS bodies allowed to deliver more complicated clinical services in maternity and "home chemotherapy".

Andrew Lansley – admitting that the government's initial plans for competition in the NHS were too ambitious, and stung by criticism from Steve Field, the senior doctor called in by David Cameron to review the reforms, that the proposals were "unworkable" – has slowed down the rollout of competition. The health secretary said his plans would now "enable patients to choose [providers] … where this will lead to better care".

Labour questioned the policy, which the shadow health secretary, John Healey, said was "not about giving more control to patients, but setting up a full-scale market".

His colleague Emily Thornberry, the party's health spokeswoman, added that "today is a good day to announce the policy because everyone is preoccupied with telephone hacking. [They] hope no one will notice it."


Woodman's picture
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
rjs wrote: Defaulting to Big
rjs wrote:

Defaulting to Big Government – Simon Johnson ...


There's some heavy duty outcomes per Simon Johnson in the event of a default; e.g.,  Money market funds break the buck, runs for cash at banks and ATMS, private sector collapse, undermining of exports, unemployment over 20%, and shrinking of government.  Seems like there's no way to protect one's wealth if its stuck in a retirement plan limited to money market or mutual funds.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
The Climate catastrophe or time to choose, bad or Really Bad.

You can get solid scientific opinion from The Australian Academy of Science about the climate catastrophe here,


(Lots of pretty pictures for those aflicted by ADD).

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
The Money Masters.

I took the time watch the entire Money Masters uTube video. It was a Left Brain feast. All these words and all the models of reality. (Money being a re-presentation of real wealth).

We must not be blindsided by the left brain's weakness. That of confusing a model with the real thing. I heed the Left brain's understanding of the situation and comment "Could it be that it is not the withdrawal of the re-presentation of wealth (Money) that causes the decrease in wealth, but the loss of our primary energy source, oil?"

A further thought "If the Left hemisphere is correct and there are single-minded Powers-that-be exerting excessive influence over our  affairs, could that not account for the swift and ruthless suppression of Pons and Fleishmanns little lab top experiment?"

I for one would support a government printed note, as it could do no damage to a faltering civilisation and it might even put the Prince of Illusions back in his box.

mryuri's picture
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Joined: May 12 2011
Posts: 25
NHS needs serious competition.

The NHS is not a health care system, it is a medical (pharma) care system. It is controlled exclusively by big pharma. One of the most common reasons for a visit to an NHS GP is back pain. GPs are seriously lacking knowledge in this area and can offer little more than analgesics. (suits big pharma). The same could be said for headaches, perhaps the second cause of GP visit. The treatment again? Pharma products. By all measures, they are not dealing with either the populations back pain or headaches successfully. The reason is that these disorders are caused by musculoskeletal disfunction and posture distortions. No GP or phama product can help in that area. The grotty GP surgeries, that won't make an appointment for you, but tell you to turn up and queue, that you can not leave a message on their voice mail, that has the near constantly engaged telephone line, that only opens at 10 am and closes at 5 pm, that greets you as though you are bothering them, should be closed. If the private sector behaved like that they would go bust in an instant. People largely use GPs because they are free. Not because it is their first choice. The NHS is a huge dinosaur wasting huge sums of money, it maims and injures more people than it helps. (JAMA 1998 - Medicine 3rd cause of deaths in USA) The NHS should be for emergency care only. IT IS NOT A 'HEALTH' SERVICE. IT IS A SICKNESS SERVICE. (your nutritionist, personal trainer, chiropractor etc, are in the business of improving health, the NHS is not)

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Satan pushes pills.

The NHS is not a health care system, it is a medical (pharma) care system. It is controlled exclusively by big pharma.

You said it,mryuri.

If you want to rattle your cage please consider

"Mad in America". Robert Whitaker got a Pulitzer for it.


If Big Pharma had to come up with a cure for scurvey they would say it was incurable but the symptoms can be ameliorated with the following very expensive (patented) drugs.

A Blockbuster drug means one that will make the shareholders a fortune. I would not dirty my hands with a pharma share.

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