Daily Digest

Daily Digest 8/16 - Stop Coddling The Super-Rich, Nixon's Error 40 Years Later, Is Capitalism Doomed?

Tuesday, August 16, 2011, 10:44 AM
  • Is Capitalism Doomed?
  • Stop Coddling The Super-Rich
  • Nixon's Colossal Monetary Error: The Verdict 40 Years Later
  • Gold Fever Gripping the Australian Outback
  • For Now, Germany Flies Above Economic Storm
  • Obama, On Tour, Declares He Has A Jobs Plan
  • California Plans $5.4 Billion Short-Term Note Sale to Repay a Bridge Loan
  • Shell North Sea oil spill 'more than 200 tonnes'

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Economy

Is Capitalism Doomed? (jdargis)

Another round of bank bailouts is politically unacceptable and economically unfeasible. Most governments, especially in Europe, are so distressed that bailouts are unaffordable; indeed, their sovereign risk is actually fueling concern about the health of Europe's banks, which hold most of the increasingly shaky government paper.

Stop Coddling The Super-Rich (jdargis)

I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation.

Nixon's Colossal Monetary Error: The Verdict 40 Years Later (jrf29)

Today, Aug. 15, 2011, is the 40th anniversary of President Richard Nixon's colossal error: severing the final link between the dollar and gold. No other single action by Nixon has had a more profound and deleterious effect on the American people. In the end, breaking the solemn promise that a dollar was worth 1/35th of an ounce of gold doomed his Presidency, and marked the beginning of the worst 40 years in American economic history.

Gold Fever Gripping the Australian Outback (jdargis)

Gold prices are up 23 percent since the beginning of this year alone. As a result, more and more people are giving up lucrative jobs in cities in Australia for a chance at the quick riches and adventure offered by old-fashioned prospecting.

For Now, Germany Flies Above Economic Storm (jdargis)

Germany may be the only European nation that is large enough and rich enough to cover the debts of its struggling neighbors, but its citizens are reluctant to be the source of the bailout. Germany is in many ways in the eye of the storm, with barely a hint of the winds swirling nearby. There is no tear gas, as in Athens; no tires burning, as in London; no chanting crowds packing public squares, as in Spain. While much of the rest of Europe is struggling to pass harsh austerity packages, Germany is in the midst of a debate over cutting taxes by as much as $14.2 billion.

Obama, On Tour, Declares He Has A Jobs Plan (jdargis)

Obama appeared determined not to accept all the blame for the struggling economy he inherited. As lawmakers return home for their August recess, Obama wants them to feel the heat he's been getting — while pushing back at suggestions that he isn't standing up to congressional Republicans who have vowed to support only cuts in government spending, not revenue increases.

California Plans $5.4 Billion Short-Term Note Sale to Repay a Bridge Loan (jdargis)

Proceeds from the sale of the revenue anticipation notes, or RANs, will repay a bridge loan from a syndicate of eight banks and investors led by Goldman Sachs Group Inc. (GS) and Wells Fargo, Dresslar said in an interview earlier this month.

Environment

Shell North Sea oil spill 'more than 200 tonnes' (abirdie)

Glen Cayley, technical director of Shell's exploration and production activities in Europe, said: "It is not easy to quantify the total volume spilled but we estimate so far that it is around 216 tonnes. It is not anticipated that oil will reach the shore and indeed it is expected that it will be dispersed naturally”

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6 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4145
pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2244
Gonzalo Lira: The Sequel: How 2011 is a Repeat of 2008

Gonzalo Lira has a new one, "The Sequel: How 2011 is a Repeat of 2008 - Only Bigger, Longer, and Uncut by Bailouts"

@ http://www.financialsense.com/contributors/gonzalo-lira/2011/08/15/the-sequel-how-2011-is-a-repeat-of-2008-only-bigger-longer-and-uncut-by-bailouts 

The structural causes that led to the Global Financial Crisis of 2008 are identical to the structural causes that are leading us to another systemic financial crisis in 2011.

The only difference is the kind of debt at the core of the looming crisis: Mortgage-backed securities in 2008, as opposed to European sovereign debt in 2011.

And of course, the debt hole in 2011 is bigger than in 2008—a lot bigger. 

That’s why I am confident in predicting we are about to have another Global Financial Crisis — I’m calling it The Sequel: Same movie, same players, same story. Only this time around—like all good sequels—the financial crisis we are about to experience is going to be bigger, longer, and uncut by bailouts. 

 

britinbe's picture
britinbe
Status: Gold Member (Offline)
Joined: Dec 28 2008
Posts: 381
Europe bail out developments

Massive if this goes through.

http://www.zerohedge.com/news/key-highlights-merkel-sarkozy-meeting

The prospect of an elected president for Europe is scary, this really appears to be the "federalisation" of Europe by the back door

Doug's picture
Doug
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Joined: Oct 1 2008
Posts: 3157
Ron Paul

By any measure, the media's ignoring of Ron Paul, the 2nd place finisher in the Iowa straw poll, is an outrage.  Bachman barely beat him and he whipped all the other Republican so-called contenders.  What gives?  As usual, John Stewart captures the essence.

http://www.zerohedge.com/news/jon-stewart-ron-paul-media-blackout

Doug

britinbe's picture
britinbe
Status: Gold Member (Offline)
Joined: Dec 28 2008
Posts: 381
Doug wrote: By any measure,
Doug wrote:

By any measure, the media's ignoring of Ron Paul, the 2nd place finisher in the Iowa straw poll, is an outrage.  Bachman barely beat him and he whipped all the other Republican so-called contenders.  What gives?  As usual, John Stewart captures the essence.

http://www.zerohedge.com/news/jon-stewart-ron-paul-media-blackout

Doug

Saw it and loved it.  Irrespective of the politics, this really shows how the media is manipulating the way the world is viewed.  It reminds of that saying.... ridicule, ignore, then quiet acceptance (I'm sure I missed one out)

 

goes211's picture
goes211
Status: Diamond Member (Offline)
Joined: Aug 18 2008
Posts: 1114
I think the quote that you are refering to is...

“First they ignore you, then they laugh at you, then they fight you, then you win.”  - Gandhi

Seems like Ron Paul is somewhere between laugh and fight.  I do hope that someday he wins but I am not holding my breath. 

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