Daily Digest

Daily Digest 8/22 - The Poor's Free Ride Is Over, Criminals Targeting Gold, Greece Growth Worse Than Thought

Monday, August 22, 2011, 9:58 AM
  • Bernanke Under Pressure To Calm Markets
  • Jon Stewart: The Poor's Free Ride Is Over
  • Western Economies Face A Long Haul Back To Health
  • Social Security Disability On Verge Of Insolvency
  • The Upcoming Expansion Of U.S. Bank Credit
  • Federal Reserve Is Selling Put Options On Treasury Bonds To Drive Down Yields
  • Criminals Targeting Gold In USA
  • 21 Signs That The New Reality For Many Baby Boomers Will Be To Work As Wage Slaves Until They Drop Dead
  • Panic! Inc.
  • Greece Growth To Be Worse Than Thought
  • On a shifting landscape, markets look for signs of QE3
  • Libyan Rebels Sweep Into Tripoli as End Nears for Qaddafi
  • U.S. to Offer Oil Leases in the Gulf
  • Dozens Arrested Outside White House During Oil Sands Protest

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Economy

Bernanke Under Pressure To Calm Markets (pinecarr)

Federal Reserve chairman Ben Bernanke will face intense pressure to announce new measures to calm the world's frenzied financial markets this week, as central bankers hold their annual summer retreat in Jackson Hole, Wyoming.

Jon Stewart: The Poor's Free Ride Is Over (pinecarr)

Western Economies Face A Long Haul Back To Health (Anton95)

Rather, the west may have to confront a version of pre-crisis life which will be hard to come to terms with. Confronting the pain of lower real wages without the cushion of borrowing is bad enough; worse again if the old debt must be paid off as well.

Social Security Disability On Verge Of Insolvency (Jeff B.)

New congressional estimates say the trust fund that supports Social Security disability will run out of money by 2017, leaving the program unable to pay full benefits, unless Congress acts. About two decades later, Social Security's much larger retirement fund is projected to run dry as well.

The Upcoming Expansion Of U.S. Bank Credit (Ivo M.)

To the Keynesian mind the obvious alternative must be to expand bank credit, particularly when there is an accumulation of non-borrowed reserves sitting on the Fed’s balance sheet. The NBRs represent the excess capital owned by the commercial banks, which have not been drawn down for use as the capital base for the expansion of bank credit. They currently stand at about $1.76 trillion while in normal circumstances NBRs would be no more than a few tens of billions. High levels of NBRs reflect the reluctance of banks to lend and bankable borrowers to borrow: they are symptomatic of an economy that refuses to expand.

Federal Reserve Is Selling Put Options On Treasury Bonds To Drive Down Yields (June C.)

!

Criminals Targeting Gold In USA (June C.)

As the precious metal has nearly doubled in value from two years ago, gold merchants have boosted security amid a series of brazen store robberies. Police are urging owners of gold jewelry to be discreet about wearing it.

21 Signs That The New Reality For Many Baby Boomers Will Be To Work As Wage Slaves Until They Drop Dead (June C.)

Meanwhile, corporate pension plans all across America are vastly underfunded. Many state and local government pension programs are absolute disasters. The federal government has already begun to pay out significantly more in Social Security benefits than they are taking in, and the years ahead are projected to be downright apocalyptic for the Social Security program.

Panic! Inc. (TG)

The volatility on world stock markets this week fuelled more uncertainty about the prospect of another global recession. The markets were already jittery after Standard and Poor's ratings agency recently took the unprecedented step of downgrading the US credit rating. With politicians there squabbling over how to reduce debt, plus ongoing concerns over Europe's financial mess, the mood in the markets is decidedly edgy. So who would be an investor these days? Aaron Lewis ventured into Wall Street this week to try and make sense of the market rollercoaster.

Greece Growth To Be Worse Than Thought (In Calgary)

Economists at Kepe, a Greek state thinktank, warned at the time the forecasts were over-optimistic given plunging domestic demand. They said the contraction would be at least 4.5 per cent followed by flat growth next year.

On a shifting landscape, markets look for signs of QE3 (In Calgary)

At the time, the U.S. economy was in a rough patch, but still moving forward. The Fed was winding down its second round of asset purchases, dubbed “QE2” by economists. (The letters stand for quantitative easing, the name for an unconventional policy in which a central bank prints money to buy bonds, with the aim of bringing down medium- or long-term interest rates and stimulating growth, at the risk of stoking inflation.)

Libyan Rebels Sweep Into Tripoli as End Nears for Qaddafi (In Calgary)

President Barack Obama said Qaddafi must recognize he “no longer controls” Libya as celebrations broke out in Tripoli’s Green Square, the location for pro-government rallies in recent months. Government spokesman Moussa Ibrahim said Qaddafi was ready to negotiate with Mustafa Abdel Jalil, the head of the rebel council, and asked for an immediate cease-fire.

“The momentum against the Qaddafi regime has reached a tipping point,” Obama said in a statement released in Martha’s Vineyard, Massachusetts. “Muammar Qaddafi and his regime need to recognize that their rule has come to an end.”

Energy

U.S. to Offer Oil Leases in the Gulf (In Calgary)

The department said Friday that it was more than doubling the minimum bid for the right to drill in deep water in the gulf, to $100 an acre from $37.50 an acre in the proposed sale, which is scheduled for Dec. 14. The auction encompasses more than 20 million acres of the western gulf.

Dozens Arrested Outside White House During Oil Sands Protest (In Calgary)

The activists are facing charges of failing to obey an order governing protests on the sidewalk, said an official with the U.S. Park Police. The protesters were asked to move and when they refused, they were arrested and taken to the central cell block of the city’s police department.

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."

13 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4240
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4240
USA becomes Food Stamp Nation but is it sustainable?

 

"Altogether, there are now almost 46 million people in the United States on food stamps, roughly 15 percent of the population. That's an increase of 74 percent since 2007, just before the financial crisis and a deep recession led to mass job losses.

At the same time, the cost doubled to reach $68 billion in 2010 -- more than a third of the amount the U.S. government received in corporate income tax last year -- which means the program has started to attract the attention of some Republican lawmakers looking for ways to cut the nation's budget deficit."

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4240
National debt clock passes $47,000 per person

 

 

Treasury Direct link

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
08/01/2011 9,783,069,049,952.69 4,559,289,391,016.41 14,342,358,440,969.10
08/02/2011 9,907,752,744,860.54 4,672,951,998,220.43 14,580,704,743,080.97
08/03/2011 9,907,654,619,535.26 4,666,953,320,526.99 14,574,607,940,062.25
08/04/2011 9,894,847,066,139.37 4,670,123,101,570.01 14,564,970,167,709.38
08/05/2011 9,914,994,383,088.84 4,669,506,456,237.02 14,584,500,839,325.86
08/08/2011 9,915,515,946,703.07 4,672,211,658,740.37 14,587,727,605,443.44
08/09/2011 9,915,945,812,737.81 4,676,045,686,788.21 14,591,991,499,526.02
08/10/2011 9,916,296,448,358.23 4,665,660,932,951.55 14,581,957,381,309.78
08/11/2011 9,921,146,601,533.97 4,666,764,704,461.98 14,587,911,305,995.95
08/12/2011 9,921,178,729,715.63 4,666,014,140,707.02 14,587,192,870,422.65
08/15/2011 9,946,617,880,447.03 4,668,949,467,756.68 14,615,567,348,203.71
08/16/2011 9,946,506,731,022.45 4,645,735,484,619.45 14,592,242,215,641.90
08/17/2011 9,946,351,371,658.73 4,666,841,790,105.64 14,613,193,161,764.37
08/18/2011 9,952,610,019,891.79 4,667,586,563,532.41 14,620,196,583,424.20
08/19/2011 9,972,502,845,412.93 4,666,736,722,461.45 14,639,239,567,874.38

 

 

You now owe over $47,000 (National Debt Clock link)

 

FireJack's picture
FireJack
Status: Silver Member (Offline)
Joined: Feb 8 2009
Posts: 156
What happens if Bank of

What happens if Bank of America goes bankrupt? Is it just a bad thing or a game ending thing? What kind of numbers are we talking about?

doorwarrior's picture
doorwarrior
Status: Silver Member (Offline)
Joined: Oct 13 2009
Posts: 166
Utah Legal Tender Act

Utah House Rep.Ken Ivory is the man that headed the Utah Legal Tender Act.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/8/22_Ken_Ivory.html

 This act allows a person to use gold and silver for any type of transaction without the added cost of sales tax or captial gains tax.

Rich

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Please, Mr Darwin. Do your job.

The FED bets against it bonds.

Homo Sapiens (wise man)

Homo Sapiens, my elbow.

Cunning monkey, more like.

Illargi points out that the banks are offloading their toxic assets onto their employees' pension funds. I responded by moving my pension from "Balanced" to "Conservative". Not that it will do a blind bit of good. Cunning monkey will see to that.

Yes, you read that correctly: Britain's banks, having been propped full with taxpayer money but still lost 75%-95% of their market value, are busy unloading their landfilling toxic waste (a term that comes straight from the banking world) unto their very employees. Who at least to some extent should be bankers, and understand what this stuff is worth; they may have well sold it themselves. And all this is presented as being beneficial to all parties. No scruples there.

As a counterpoint I offer

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Pin the name on the Monkey

Journalist Julian Cribb has written to Nature concerning the name of the human species. He makes the case that under the international rules for naming species, Homo sapiens is incorrectly named and should be changed. Submit your suggestion by clicking the Add your comment link below.

The Science Show ABC.

I nominate Callidus Simia. (Cunning Monkey)

Listen Here

Mirv's picture
Mirv
Status: Silver Member (Offline)
Joined: Sep 30 2008
Posts: 105
Fuji san and cherry blossoms

What a wonderful picture surprise!  thanks1

pslater's picture
pslater
Status: Member (Offline)
Joined: Oct 2 2009
Posts: 6
bk

FJ, BAC is just the first canary in a really toxic coal mine.  The ONLY reason the US banking system is still functioning is because Bernanake got the FASB to change the method in which large banks report their 'asset' prices.  Basically, in March 2009, FASB began allowing the big banks to hold their 'assets' at cost or par (instead of current market price) which ever they preferred.  Voila, with a single stroke of an accounting red pen, a COMPLETELY INSOLVENT banking system became solvent.  If you wonder why BAC has gone from 14 to the mid 6's it because they are INSOLVENT.  Unfortunately, so all all of their competitors ESPECIALLY the european ones.

Sorry for the rant, this has been the primary issue for 2 1/2 years....

alcatwize's picture
alcatwize
Status: Bronze Member (Offline)
Joined: Dec 24 2008
Posts: 78
Pslater

Don't be sorry for the rant, you are spot on with your point! 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4240
'

 

'

doorwarrior's picture
doorwarrior
Status: Silver Member (Offline)
Joined: Oct 13 2009
Posts: 166
pslaterFJ, BAC is just the

pslater

FJ, BAC is just the first canary in a really toxic coal mine.  The ONLY reason the US banking system is still functioning is because Bernanake got the FASB to change the method in which large banks report their 'asset' prices.  Basically, in March 2009, FASB began allowing the big banks to hold their 'assets' at cost or par (instead of current market price) which ever they preferred.  Voila, with a single stroke of an accounting red pen, a COMPLETELY INSOLVENT banking system became solvent.  If you wonder why BAC has gone from 14 to the mid 6's it because they are INSOLVENT.  Unfortunately, so all all of their competitors ESPECIALLY the european ones.

Sorry for the rant, this has been the primary issue for 2 1/2 years....

The primary issue is a debt based currency issued by private banks in an exponential system on a finite planet with finite resources. Your points are excellant but not the primary issue. Watch the Crash Course.

Rich

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