Daily Digest

Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks New Sea Routes, Wheat Exports To China Triple

Sunday, August 29, 2010, 10:14 AM
  • Heal Job Market By Cultural Renewal, Not Fed Intervention
  • Mauldin: The Dark Side of Deficits
  • Mr Cable, shout it loud and proud from Brazil
  • Russia seeks new sea routes to Asia
  • EU's Barroso warns Italy on high debt
  • China economy faces complicated domestic, international conditions: official
  • Mexicana Airlines halts flights worldwide
  • Wheat exports to China triple in deregulated market
  • RVR secures new railway concession deal in Uganda

Crash Course DVDThe 3-disc Crash Course features a handy presenter’s pack for guiding group showings (NTSC or PAL)

Economy

Heal Job Market By Cultural Renewal, Not Fed Intervention (Dr. B @ Truthsavvy)

Taxpayers should not be sanguine about Fed interventions, especially the creation of money to pay for government mistakes, since this so-called "quantitative easing" amounts to stealth taxation, the tax levied against wage increases that could (and should) accompany national gains in productivity and business efficiency. This taxation increases damage to the dollar, widens the U.S. trade deficit, produces consumer inflation, and hastens any pending sovereign debt crisis.

Mauldin: The Dark Side of Deficits (JRB)

In the pre-crisis days, I used to write about things like P/E ratios, secular bull and bear markets, valuations, and all of the things we used to think about in the Old Normal. But what about those topics as we begin our trip through the New Normal? It’s time to reconvene class and think through what might change and what will remain the same.

Mr Cable, shout it loud and proud from Brazil (pinecarr)

The Business Secretary is travelling to Brazil tomorrow for a week of meeting business leaders and politicians to press the flesh and build relationships with the most important economic powerhouse in South America.

It is instructive to list who is travelling with him: Anglo American, Diageo, BAE, HSBC, Rio Tinto, BG Group, Standard Chartered, Rolls-Royce, GlaxoSmithKline and the infrastructure company Halcrow (which is advising on the high-speed rail link between Rio de Janeiro and São Paulo) are all part of the delegation. Each will be looking to forge deals and make important business allies.

    Crash Course DVDThe 3-disc Crash Course features a handy presenter’s pack for guiding group showings (NTSC or PAL)

Russia seeks new sea routes to Asia (pinecarr)

Russia's biggest private gas producer, Novatek, is acting as a pathfinder, as it wants to open up a direct route to export its liquefied natural gas to Asia. The arrival of the tanker Baltika, with 70,000 tonnes of gas condensate aboard, in the Eastern Russian port of Pevek signified a new milestone in that ambition.”

EU's Barroso warns Italy on high debt (pinecarr)

Italy's public debt is the highest in Europe, amounting to 116 percent of the country's gross domestic product (GDP).

China economy faces complicated domestic, international conditions: official (pinecarr)

Other challenges include the heavy pressures in reaching the target of improving energy efficiency (the ratio of energy consumption to gross domestic product) by 20 percent from 2005 to 2010 and in managing inflationary pressure, he said.

Mexicana Airlines halts flights worldwide (pinecarr)

With an uncertain future, Mexico's biggest airline and the biggest foreign carrier at Los Angeles International Airport (LAX) ceased operations worldwide as of Saturday morning.

All flights were expected to have been halted by 10 a.m., and stranded travelers were urged to go to the airline's website for instructions on getting refunds, LAX officials said.

Wheat exports to China triple in deregulated market (pinecarr)

Australian wheat exports to China have already tripled this year, and demand from the world's most populous nation is expected to lift.

RVR secures new railway concession deal in Uganda (pinecarr)

A revised concession contract for the Kenya/Uganda railway was signed on Wednesday in Kampala, giving Rift Valley Railway Investments access to rail lines leading to the Ugandan oil fields.

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." 

15 Comments

yoshhash's picture
yoshhash
Status: Martenson Brigade Member (Offline)
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Re: Daily Digest 8/29 - Mauldin On Defecits, Russia Seeks ...

Typo in the title- deficits, not defecits.

Davos's picture
Davos
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Re: Daily Digest 8/29 - Mauldin On Defecits, Russia Seeks ...
yoshhash wrote:

Typo in the title- deficits, not defecits.

I caught that also. (NOT!!!!) LOL!

bmc's picture
bmc
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Re: Daily Digest 8/29 - Mauldin On Defecits, Russia Seeks ...
yoshhash wrote:

Typo in the title- deficits, not defecits.

 

Bernanke's new plan? Not only can we inflate away the problem; but we can also spell it away.

The dial has been set to "Just Right".

jeaninedargis's picture
jeaninedargis
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Re: Daily Digest 8/29 - Mauldin On Defecits, Russia Seeks ...

oopsie!  Corrected.

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rjs
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Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...

re: Northern Sea Route from Europe to Asia:

The Northwest and Northeast Passages are open. Northwest Passage opens for 4th year in a row, 4th time in recorded history -- The Northwest Passage--the legendary shipping route through ice-choked Canadian waters at the top of the world--melted free of ice last week, and is now open for navigation, according to satellite mosaics available from the National Snow and Ice Data Center and The University of Illinois Cryosphere Today. This summer marks the fourth consecutive year -- and fourth time in recorded history -- that the fabled passage has opened for navigation. Over the past four days, warm temperatures and southerly winds over Siberia have also led to intermittent opening of the Northeast Passage, the shipping route along the north coast of Russia through the Arctic Ocean. It is now possible to completely circumnavigate the Arctic Ocean in ice-free waters, and this will probably be the case for at least a month. This year marks the third consecutive year -- and the third time in recorded history -- that both the Northwest Passage and Northeast Passage have melted free, according to the National Snow and Ice Data Center. The Northeast Passage opened for the first time in recorded history in 2005, and the Northwest Passage in 2007. It now appears that the opening of one or both of these northern passages is the new norm...

 

Extent of Arctic Sea Ice, 8/20/10 (graphic map)

smirking pig's picture
smirking pig
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Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...

Davos

I do not see eye to eye..with you...

but I have to point this out...

 

http://www.321gold.com/ has reposted your post...on...

http://www.financialsense.com/contributors/d-sherman-okst/why-we-are-totally-finished

 

in that is a link..

 

http://www.imdb.com/video/hulu/vi1301021721/

 

Davos.....if I can call you a freind..if I can say so...

 

well done my freind

paladin

 

Southerner's picture
Southerner
Status: Bronze Member (Offline)
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Posts: 36
Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...

Davos,

Well done indeed.

BTW, please don't let others on this site bother you to the point of not posting.  There are those of us new to the world of financial sociopathy who need help discerning what is real.  Yours is one of the voices I pay attention to.

Keep coming back,

Southerner

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...
smirking pig wrote:

Davos

I do not see eye to eye..with you...

but I have to point this out...

 

http://www.321gold.com/ has reposted your post...on...

http://www.financialsense.com/contributors/d-sherman-okst/why-we-are-totally-finished

 

in that is a link..

 

http://www.imdb.com/video/hulu/vi1301021721/

 

Davos.....if I can call you a freind..if I can say so...

 

well done my freind

paladin

 

Thank you Paladin. I'd be interested in knowing what you don't agree with. Take care

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...
Southerner wrote:

Davos,

Well done indeed.

BTW, please don't let others on this site bother you to the point of not posting.  There are those of us new to the world of financial sociopathy who need help discerning what is real.  Yours is one of the voices I pay attention to.

Keep coming back,

Southerner

Thanks for the kind words!

Eye's picture
Eye
Status: Bronze Member (Offline)
Joined: Mar 7 2009
Posts: 88
Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...

Davos et. al.,

Your article quoted above represents my conclusions as well.  I just reread Stoneleighs review of Williams' interview with THE ENERGY REPORT and TAE's current article on GDP and CMI.  What I wrote at the end of my notes compliments your writting.

.............."The ever increasing amplitudes of the deflationary and inflationary forces are the result of the efforts of the "powers that be" to protect their incomes and assets.  They want to maintain the stautus quo and will force the repeated masking of the ever increasing deflationary reality.  The end game is actually in the hands of the politicians as they are the ones left to act after the bond guhls "just say no."  Then the politicians have to make the hard choices.  They will define the crisis but the crisis is inevitable.  See Argentina, Iceland, Greece, Hungary, Italy, Spain, Japan, England, and Zimbabwe."

It reminds us of that great quote; 

“Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works. “..John Stuart Mills, Political economist, 1806-1873

ComancheLee's picture
ComancheLee
Status: Member (Offline)
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Posts: 9
Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...

Davos,

Thank You for your comments. I study alot and comment seldom.  You are one of the people who I continue to listen to. Whoever started the comments about the missed spelling is myopic (lacking tolerance or understanding; narrow-minded).  The big picture is what all thinking persons need to focus on. Phonics have heiped many understand the Kings English.  We all have much more to worry with than being side tracked over a misplaced e or i. Please continue to share you thoughts.




 
Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...
Eye wrote:

Davos et. al.,

Your article quoted above represents my conclusions as well.  I just reread Stoneleighs review of Williams' interview with THE ENERGY REPORT and TAE's current article on GDP and CMI.  What I wrote at the end of my notes compliments your writting.

.............."The ever increasing amplitudes of the deflationary and inflationary forces are the result of the efforts of the "powers that be" to protect their incomes and assets.  They want to maintain the stautus quo and will force the repeated masking of the ever increasing deflationary reality.  The end game is actually in the hands of the politicians as they are the ones left to act after the bond guhls "just say no."  Then the politicians have to make the hard choices.  They will define the crisis but the crisis is inevitable.  See Argentina, Iceland, Greece, Hungary, Italy, Spain, Japan, England, and Zimbabwe."

It reminds us of that great quote; 

“Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works. “..John Stuart Mills, Political economist, 1806-1873

I think that pretty much says it. I like the Mills quote.

Funny, I'm doing a write now called Willy-Nilly on how Bernanke created "deflation" (asset price destruction) in the housing market by giving the money willy-nilly style to the banks and not injecting it into the veins of the economy (failing homeowners sold toxic loans). The bottom line is he spent 14 trillion and housing got slaughtered and the economy tanked. There are only 8.8 trillion in mortgages. He could have paid everyones mortgage off and house prices would still be increasing. He could have given a trillion to troubled buyers and the horse and pony show would still be going. Gives credence to your thoughts they protect their own.

Take care

yoshhash's picture
yoshhash
Status: Martenson Brigade Member (Offline)
Joined: Sep 20 2008
Posts: 271
Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...
ComancheLee wrote:

Whoever started the comments about the missed spelling is myopic (lacking tolerance or understanding; narrow-minded).


ouch.  Are you serious?  I did not mean to place undue focus on spelling, I realize it has nothing to do with the issues.  But it was a headline, if I were the writer, I would appreciate someone letting me know.  Please look over my other comments and letters, I am not an intolerant person.

debu's picture
debu
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Posts: 222
Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...

People like Mauldin and Pimco's El-Erian are worth reading as they are at least willing to countenance the idea of a "new normal".  Unfortunately, their "new normal" is little more than BAU-lite.

They provide insights into how the more enlightened of the power elite see things and in doing so inadvertently show how much trouble we are in since the best they can come up with is analysis that is sober, measured and ultimately delusional.

Eye's picture
Eye
Status: Bronze Member (Offline)
Joined: Mar 7 2009
Posts: 88
Re: Daily Digest 8/29 - Mauldin On Deficits, Russia Seeks ...

"BAU-lite," lol

I would include in that perspective the ultra wealthy political class trying to protect their ass(ets) by extending the increases in taxes all the way down to the level of small and private business proprietors.  I welcome the recent media attention to the idea of increasing the taxation on the super rich and letting the smaller operators keep more of their money for innovation and employment.

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