Daily Digest

Daily Digest 7/25 - America's Peacock Syndrome, Strong Earthquake Jolts NE Japan, There's An Oil Spill Almost Daily In America

Monday, July 25, 2011, 10:11 AM
  • Everything you need to know about the debt ceiling in one post 
  • Peacock Syndrome - America's Fatal Disease
  • Madness: 39 Things That Are Driving Ordinary Americans Absolutely Crazy
  • Bill Buckler Puts Things Back Into Perspective: "Of The Total US $15 Trillion Market Capitalization, The Fed Provided About Half Of That"
  • Vince Cable calls for action as consumer confidence slides
  • Big Oil's Dirty Secret: There's a Serious Spill Almost Daily in America
  • Strong earthquake jolts northeast Japan, no damage
  • Threat to Japan’s Food Chain Multiplies

Learn how to protect your wealth against the Three E forces using our 'What Should I Do?' guide

Economy

Everything you need to know about the debt ceiling in one post (jdargis)

Currently, the debt limit is set at $14.3 trillion. Around Aug. 2, the Treasury will exhaust that borrowing authority. Because spending currently exceeds revenues by almost 45 percent, if that happens, we will either have to default on our debt or stop funding a substantial portion of the government. Congress could simply choose to raise the debt ceiling, but like the 1995 House GOP, the 2011 House GOP is insisting that it will not increase the debt ceiling without large spending cuts from President Obama.

Peacock Syndrome - America's Fatal Disease (JimQ)

“Although showy spending is often perceived as wasteful, frivolous and even narcissistic, an evolutionary perspective suggests that blatant displays of resources may serve an important function, namely as a communication strategy designed to gain reproductive rewards.”

To put that in laymen’s terms, guys drive flashy expensive cars so they can get laid. Researcher Dr Vladas Griskevicius said: “The studies show that some men are like peacocks. They’re the ones driving the bright colored sports car.”

Madness: 39 Things That Are Driving Ordinary Americans Absolutely Crazy (Michael K.)

Have you noticed that almost everyone seems really angry these days? Frustration with the government and with most of the other major institutions in our society seems to grow by the day. According to a brand new ABC News/Washington Post poll, 80 percent of Americans say that they are either dissatisfied or angry with the government.

Americans are deeply divided about what the solutions to our problems are, but what almost everyone can agree on is that our problems are getting worse. Watching all of the madness that is going on in Washington D.C. and in our state capitals is almost enough to drive anyone absolutely crazy. Our nation is drowning in an ocean of debt, jobs are being shipped overseas at an alarming rate, thousands of stores are closing, poverty is exploding, greed has become a national pastime and corruption is seemingly everywhere. The American people are incredibly frustrated because the vast majority of our "leaders" appear to be too incompetent or too corrupt to deal with our problems.

Bill Buckler Puts Things Back Into Perspective: "Of The Total US $15 Trillion Market Capitalization, The Fed Provided About Half Of That" (pinecarr)

On a surprisingly quiet night, during which many, chief among them the President of the US, were expecting some fireworks, it is easy to get lost in all in your face political farce, while ignoring, and even blissfully forgetting, the real financial details behind the scenes. Luckily we have Bill Buckler, whose latest edition of "The Privateer" puts everything right back in perspective, and reminds us that "in the period between December 2007 and July 2010, the Fed parcelled out $US 16.1 TRILLION in emergency loans to financial entities all over the world. Almost half of this - a total of $US 7.75 TRILLION - was loaned to four US banks. They were Citigroup, Morgan Stanley, Merrill Lynch and the Bank of America. In July 2010 (the cut off date for this “audit”), total US stock market capitalisation was $US 15 TRILLION. The Fed provided about half of that." And here we are, haggling over $30 billion here, and $50 billion there...

Vince Cable calls for action as consumer confidence slides (pinecarr)

A sustained decline in living standards, soaring inflation and worries about job prospects sent the UK's main index of household finances down last month to its lowest level since the depths of the recession, adding to concerns that the chancellor, George Osborne, needs to make greater efforts to boost the economy.

… Vince Cable, the business secretary, highlighted the growing alarm in cabinet at the poor state of the economy when he said that growth was so worryingly weak that the Bank of England should undertake another round of monetary expansion through quantitative easing.

Environment

Big Oil's Dirty Secret: There's a Serious Spill Almost Daily in America (jdargis)

Earlier this week, we reported on kayakers helping to scout the river for oil damage. But if you haven't heard of the spill, don't feel bad. Most news outlets don't report on spills this "minor" because they happen quite literally all the time. About 20,0000 oil spills are reported to the U.S. government annually. Of those, approximately 300 are so bad that the Environmental Protection Agency either intervenes itself or oversees private cleanup contractors. In other words, that's about an oil spill per day. Did you know there's a serious oil spill nearly once per day in America? Did you know that oil spills have increased by a lot over this past decade? They have.

Strong earthquake jolts northeast Japan, no damage (pinecarr)

A strong earthquake struck off the northeastern coast of Japan on early Monday morning, seismologists said, but there were no immediate reports of damage or casualties.

The 6.2-magnitude earthquake at 3.51 a.m. local time (1851 GMT) was centered about 79 kilometers (49 miles) southeast of Sendai, the capital city of Miyagi Prefecture. It struck about 40 kilometers (24 miles) deep, making it a shallow earthquake, according to the Japan Meteorological Agency (JMA).

Threat to Japan’s Food Chain Multiplies (pinecarr)

Radiation threats to Japan’s food chain are multiplying as cesium emissions from the crippled Fukushima Dai-Ichi nuclear power plant spread more widely, moving from hay to cattle to beef.

Hay contaminated with as much as 690,000 becquerels a kilogram, compared with a government safety standard of 300 becquerels, has been fed to cattle. Beef with unsafe levels of the radioactive element was detected in four prefectures, the health ministry said July 23.

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."

3 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4145
Moody's Warns Greek Default Virtually 100 Percent
 
"Moody's downgraded Greece's bond ratings by a further three notches Monday and warned that it is almost inevitable the country will be considered to be in default following last week's new bailout package.
 
The agency said the new EU package of measures implies "substantial" losses for private creditors. As a result, it cut its rating on Greece by three notches to Ca — one above what it considers a default rating."

 

........................1A) Moody's downgrades Greek debt again, warns of default

...........................1B) Many of Greece’s Creditors Will Have Losses, Meaning Default, Moody’s Says

Other news, headlines and opinion:

Treasuries Decline After El-Erian Says U.S. May Lose AAA Rating

 

Clinton Assures China U.S. Will Reach Debt-Ceiling Solution

 

S&P: says Aust prime RMBS arrears reached near all-time peak

Anglo-Irish Bank posts profit, but underlying loss

Illinois Net Assets Fall $8.4 Billion

Analysis - United States gets closer to losing its AAA rating

More pain as households hit with new €100 ‘property’ tax (Ireland)

State Unemployment Interest Payment May Come Due To Feds (Wisconsin)

Namibia plans 17% mining tax hike to boost revenue

Singapore Inflation Quickens to Fastest Pace Since January on Food Prices

 

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2244
Iranian Oil Bourse barter system with China?

Zerohedge has an interesting article re Iran and China potentially establishing a barter relationship (sans US Dollars) for oil: http://www.zerohedge.com/news/china-and-iran-bypass-dollar-plan-oil-barter-system-and-deeper-dive-iranian-oil-bourse .  Here's an excerpt:

Iran is currently China's third largest supplier of crude oil, providing China with nearly one million barrels per day." Still, the perceived provocation to Uncle Sam should China go ahead and slap America in the face by accepting the existence of the Kish exchange, would echo around the world. Which is why many don't think much if anything will happen. Until today, that is: according to the FT, China has decided to commence an barter system in which Iranian oil is exchanged directly for Chinese exports. The net result: not only a slap for the US Dollar, but implicitly for all fiat intermediaries, as Iran and China are about to prove that when it comes to exchanging hard resources for critical Chinese goods and services, the world's so called reserve currency is completely irrelevant. The implications of this are momentous, especially for US debt, whose indomitability is only predicated upon the continued acceptance of the currency it backs as a global reserve. If China is now openly admitting to the world that it does not need US monetary intermediation, and by implication, the "debt" backing said intermediation, what then? And who will follow China next?

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
10 against ten thousand.

Reading 39 things that make Americans mad ,  ,  , the old joke is brought to mind.

"There we were, 10 against ten thousand. By golly we taught those ten a thing or two!"

In this case it is more like 1% against 99%.

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