Daily Digest

Daily Digest 8/19 - Decision Fatigue, Eric Sprott On A Silver Lining, Two New Nuclear Leaks In Vermont

Friday, August 19, 2011, 10:45 AM
  • Gold & Silver: Full Spectrum Dominance
  • Do you suffer from Decision Fatigue?
  • Think gold may lose some lustre? Eric Sprott sees a silver lining
  • Social upheaval is a foregone conclusion. What are you doing about it?
  • Bank of America Plans Big Layoffs to Cut Costs
  • Number of Green Jobs Fails to Live Up to Promises
  • Two new nuclear leaks in Vermont
  • Huge Fish Spurs Call To 'Re-Reverse' Chicago River

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

Economy

Gold & Silver: Full Spectrum Dominance (Claire H.)

Gold and Silver have emerged in the last 12 months as the dominant asset group. They led the entire 2000 decade, still gathering disrespect. They do not require respect from the Wall Street and London crowd. They serve as effective protection during the slow motion crumbling process to the global monetary system.

Do you suffer from Decision Fatigue? (Ben Johnson)

Decision fatigue helps explain why ordinarily sensible people get angry at colleagues and families, splurge on clothes, buy junk food at the supermarket and can't resist the dealer's offer to rustproof their new car. No matter how rational and high-minded you try to be, you can't make decision after decision without paying a biological price. It's different from ordinary physical fatigue - you're not consciously aware of being tired - but you're low on mental energy. The more choices you make throughout the day, the harder each one becomes for your brain, and eventually it looks for shortcuts, usually in either of two very different ways. One shortcut is to become reckless: to act impulsively instead of expending the energy to first think through the consequences. (Sure, tweet that photo! What could go wrong?) The other shortcut is the ultimate energy saver: do nothing.

Think gold may lose some lustre? Eric Sprott sees a silver lining (In Calgary)

Since the commodity boom kicked into high gear last fall, Mr. Sprott has been touting silver’s merits. To demonstrate his conviction, he set up and invested his own money in the exchange-traded Sprott Physical Silver Trust, which buys silver bullion and stores it at the Royal Canadian Mint. Investors in the trust can cash in their units, or take delivery of silver in physical form if they wish.

Social upheaval is a foregone conclusion. What are you doing about it? (In Calgary)

This frustration is worldwide. The entire world, which cheered the Arab Spring uprisings across the Middle East and North Africa, has been watching in complete shock as riots spread across Europe. Riots in London, riots in France, riots in Greece, riots in Spain.

Bank of America Plans Big Layoffs to Cut Costs (jdargis)

“I know it is tough to have to manage through reductions,” Mr. Moynihan wrote in a memo to the company’s senior leadership late Thursday that outlined the cuts. “But we owe it to our customers and our shareholders to remain competitive, efficient and manage our expenses carefully.”

Energy

Number of Green Jobs Fails to Live Up to Promises (jdargis)

In the Bay Area as in much of the country, the green economy is not proving to be the job-creation engine that many politicians envisioned. President Obama once pledged to create five million green jobs over 10 years. Gov. Jerry Brown promised 500,000 clean-technology jobs statewide by the end of the decade. But the results so far suggest such numbers are a pipe dream.

Environment

Two new nuclear leaks in Vermont (Johnny Oxygen)

Commissioner Harry Chen of the State Department of Health has confirmed that water samples taken from the shore of the Connecticut River have tested positive for traces of tritium. In large amounts, that radioactive isotope of hydrogen has been linked to causing cancer. Though the samples collected in the river appear to be of relatively low levels, concern is amassing since another dangerous element was discovered earlier this month.

“I am very concerned about the latest findings from the Vermont Health Department," Shumlin said in a statement. "Confirmation that tritium has reached the shoreline of the Connecticut River is further evidence of the immediate need for more extraction wells and increased monitoring of the situation."

Huge Fish Spurs Call To 'Re-Reverse' Chicago River (Mike K.)

The waterway had grown so putrid that it raised fears of a disease outbreak and concerns about hurting development. So in a first-of-its-kind feat, engineers reversed the river by digging a series of canals that not only carried the stinking mess away from the lake, but also created the only shipping route between the Great Lakes and the Mississippi River.

Now a modern threat - a voracious fish that biologists are desperate to keep out of Lake Michigan - has spurred serious talk of undertaking another engineering feat almost as bold as the original: reversing the river again to restore its flow into the lake

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."

10 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 4149
Central Banks' Demand For Gold Quadrupled In 2nd Quarter

 

"Central banks are topping up their gold reserves, quadrupling their total purchases from the market in the last quarter as they seek to reduce their dependence on traditional reserve currencies such as the U.S. dollar.
Even with gold prices at record highs, emerging markets' central banks have revived the official sector's gold-buying interest. They are diversifying their foreign exchange reserves, which have grown along with their export industries. More recently, they've also bought gold in reaction to the persistent sovereign-debt crises affecting traditional reserve currencies, like the dollar and the euro. Analysts say this trend is likely to continue.
"We expect to see additional demand support from official-sector purchases as numerous influential countries are becoming bearish on the status of the U.S. dollar as a reserve currency," said analysts at Swiss bank Credit Suisse.
Central banks bought 69.4 metric tons of gold in the second quarter, more than four times the 14.1 tons reported a year earlier, the World Gold Council said Thursday.
During the first half of the year, central bank gold purchases totaled 192.3 tons, more than 2 1/2 times the 72.9 tons bought in the first six months of 2010, the council said. "
 

"A $157 billion international bailout for Greece ran into trouble Thursday after at least five countries demanded that the Greek government give them cash as collateral in exchange for their contributions to the rescue fund.

The Netherlands, Slovenia, Austria and Slovakia said Thursday they wanted hundreds of millions of euros in collateral just like Finland, which struck a deal with the Greek government Tuesday to receive cash as security for the Finnish part of the bailout.

Even with five nations demanding extra security for their loans in response to the Finnish deal, the amount of cash would probably not be large enough to scuttle the bailout entirely. But it could drive up the overall cost of the bailout, as Greece would need extra funds to put up collateral on top of servicing its debts, paying workers' salaries and meeting other financial obligation."

  • Other news, headlines and opinion:

 

Treasury Selling $180 Billion in Bills, Notes (Next week)

Funding worries hammer Europe’s banks
 

J.P. Morgan further cuts U.S. growth forecast

1,100 Hanford layoffs planned

Financial Debt Risk Jumps to Record in Europe on Growth Concern

Department of Mental Health lays off 582 statewide (Alabama)

'Most Germans' doubt Merkel can stop financial crisis

CalSTRS 'broke within 30 years' - report

Junk Yields Surpass 10% as Growth Slowdown Halts Bond Sales: Euro Credit

Muni Bonds May Face Downgrades After Final U.S. Budget, S&P Says

Pontiac emergency manager seeks $15 million in cuts

Cash-strapped Morocco hit with higher subsidies bill

Korean Won Weakens as Insurers Told to Prepare for a Crisis; Bonds Gain

Death Cross rocks Wall Street

ao's picture
ao
Status: Diamond Member (Offline)
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Posts: 2220
Foreign students walk off Hershey's factory job in protest

Another example of corporate greed and exploitation.

http://news.yahoo.com/blogs/lookout/foreign-students-walk-off-hershey-factory-job-protest-214310205.html

Grover's picture
Grover
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Posts: 843
Sprott selling fund to take advantage of premium ???

[quote=Think gold may lose some lustre? Eric Sprott sees a silver lining]

But not all silver assets are on equal footing. Mr. Sprott has been selling some of his own units in the Physical Silver Trust. In the past month, Sprott-related funds have sold about $23-million of his Silver Trust units, and earlier this spring they sold $34-million. Mr. Sprott said he is simply taking advantage of the trust unit’s 20-per-cent premium to the fund’s net asset value. (The premium has shot up since the fund was introduced last fall because of heavy retail demand, which means investors are paying more than the underlying metal’s value per unit.) He is reinvesting the proceeds in other silver investments, including the Silver Bullion Fund.

Asked if investors in the Physical Silver Trust should be alarmed that he’s cashing in, Mr. Sprott said “Anybody can do it any time they want to,” and added that his sales are “all in the public domain,” because he must report them to the U.S. Securities and Exchange Commission.

I'm confused. I hope someone can explain how this fund works. Is the fund set up to have a set number of ounces that people then bid upon? When extra money comes into the fund, does it then go out and purchase more physical silver? If so, why would the fund have a premium as high as 20% above the net asset valuation? Furthermore, why would any knowledgeable investor consider this fund to be a good deal when the manager is taking personal advantage of the premium?

Something doesn't smell right.

Grover

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
Re: Sprott selling fund to take advantage of premium ???
Grover wrote:

[quote=Think gold may lose some lustre? Eric Sprott sees a silver lining]

But not all silver assets are on equal footing. Mr. Sprott has been selling some of his own units in the Physical Silver Trust. In the past month, Sprott-related funds have sold about $23-million of his Silver Trust units, and earlier this spring they sold $34-million. Mr. Sprott said he is simply taking advantage of the trust unit’s 20-per-cent premium to the fund’s net asset value. (The premium has shot up since the fund was introduced last fall because of heavy retail demand, which means investors are paying more than the underlying metal’s value per unit.) He is reinvesting the proceeds in other silver investments, including the Silver Bullion Fund.

Asked if investors in the Physical Silver Trust should be alarmed that he’s cashing in, Mr. Sprott said “Anybody can do it any time they want to,” and added that his sales are “all in the public domain,” because he must report them to the U.S. Securities and Exchange Commission.

I'm confused. I hope someone can explain how this fund works. Is the fund set up to have a set number of ounces that people then bid upon? When extra money comes into the fund, does it then go out and purchase more physical silver? If so, why would the fund have a premium as high as 20% above the net asset valuation? Furthermore, why would any knowledgeable investor consider this fund to be a good deal when the manager is taking personal advantage of the premium?

Something doesn't smell right.

Grover

This is the way I understand it:

It's a close fund. If you want to invest in the fund then you need to find a seller inside the fund. No silver is added to the fund at this point. The premium is the reflection that people are whiling to pay above spot price to buy physical silver (and the convenience of the fund).  Sometime they might add new silver to the fund (and I think Sprott is rising money just to do that). It's possible that when this new silver is introduced then the premium goes down (temporarily?) due to the additional offer so I guess they probably will introduce it slowly.

When you sell in the current conditions you would also sell at a premium so you potentially get back part of the premium you paid when you bought (at given time the difference between selling and buying price is the spread).

The risk of course with a 20% premium when you buy is that the premium could be lower when you sell especially in a "sell off" market.

So it's a great condition to sell now and that's the reason why Eric Sprott  is doing it. This close fund is really a market of its own.

This is the way I understand how it works, but if anybody wants to add or correct, please do so.

 

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
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Posts: 1988
Moody's Rotten To Core w/ Conflicts, Corruption, Greed

A former senior analyst at Moody's has gone public with his story of how one of the country's most important rating agencies is corrupted to the core. The analyst, William J. Harrington, worked for Moody's for 11 years, from 1999 until his resignation last year.

From 2006 to 2010, Harrington was a Senior Vice President in the derivative products group, which was responsible for producing many of the disastrous ratings Moody's issued during the housing bubble.

Harrington has made his story public in the form of a 78-page "comment" to the SEC's proposed rules about rating agency reform, which he submitted to the agency on August 8th. The comment is a scathing indictment of Moody's processes, conflicts of interests, and management, and it will likely make Harrington a star witness at any future litigation or hearings on this topic.

 

http://www.businessinsider.com/moodys-analyst-conflicts-corruption-and-greed-2011-8

 

 

joesxm2011's picture
joesxm2011
Status: Gold Member (Offline)
Joined: Mar 16 2011
Posts: 259
PSLV long term capital gain rate

I think another reason for the premium on the Sprott fund is because it is treated differently from funds like SLV for tax purposes.

It seems that if you follow the correct process PSLV can be taxed at long term capital gain rates rather than at the collectible rate as is the case with SLV.

http://www.sprottphysicalsilvertrust.com/TaxInformation.aspx

 

johnjb32's picture
johnjb32
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Joined: Aug 16 2011
Posts: 1
The corruption is rampant

The corruption and looting is happening at the top of our food chain and it has trickled down into the masses of your average citizens. Everything seems to be breaking apart, including the dollar, and gold is definitely a place to go as Chris says.

I came across this must see video, discussing Michael C. Ruppert and his call upon the world's artistic and musical leaders to take part in the global generational revolution taking place right now.  He pulls no punches as is apparent in the title, "SAY MY FU**ING NAME" ... http://goo.gl/2vFgp

This shows a plea for all the younger generations to focus their anger and not go down the path of least astonishment.

Vanityfox451's picture
Vanityfox451
Status: Diamond Member (Offline)
Joined: Dec 28 2008
Posts: 1636
Michael C. Ruppert: Say My ****ing Name

John,

Welcome to the forum, and thank you for the head up. I've found a cm.com user friendly copy of the film on You Tube, and created a thread here for discussion : -

Michael C. Ruppert: Say My ****ing Name

Kindest Regards,

~ VF ~

Grover's picture
Grover
Status: Platinum Member (Offline)
Joined: Feb 16 2011
Posts: 843
Re: Sprott selling fund to take advantage of premium ???

SailAway and joesxm2011,
Thanks for the explanation. That makes sense to me; however, I still wouldn't pay the 20% premium. I'll let others take that route.
Grover

Vanityfox451's picture
Vanityfox451
Status: Diamond Member (Offline)
Joined: Dec 28 2008
Posts: 1636
The Taint of Your Future Drinking Water - Gasland

This is an update to a thread I created several months ago called: The Taint of Your Future Drinking Water - Gasland.

The documentary by Josh Fox puts into great question the more often devastating effects of gas fracturing, which is a means of pressurising millions of gallons of precious water, with some 596 carcinogeous toxic chemicals to upward of 8,000 psi, promoting fractures underground in the release of natural gas.

I'm not one for promoting Exon Mobil by any means, but this is their latest propagandised advertisement campaign, the likes of which may cost you the angry destruction of your computer monitor after watching that, then the clearly defined documentary beneath it : -

Natural Gas: An Amazing Resource. A Responsible Way To Produce It. [SICK!!!]

Gasland

~ VF ~

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