Daily Digest

Daily Digest 8/9 - What Would Happen If Social Security Disappeared, Jobs Vs. The S-Word, Southwest Power Partially Restored

Friday, September 9, 2011, 10:30 AM
  • How Can Investors Protect Against U.S. Dollar Risk?
  • Plan’s Focus on Social Security Taxes Reflects Its Modest Ambitions
  • What Would Happen if Social Security Disappeared?
  • ‘Jobs, Jobs, Jobs’ versus the S-word
  • A Bipartisan Move to Tackle Benefits Programs
  • Europe Steers Into a Zone of Uncertainty
  • Major Power Failure Affects San Diego
  • Electricity Restored For About 700,000 Following Outage In Area Around San Diego

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Economy

How Can Investors Protect Against U.S. Dollar Risk? (Joe P.)

Investors may want to consider diversifying away from U.S. dollar denominated assets and managing the U.S. dollar risk inherent in their portfolios. The White Paper analyzes the different currency risk diversification and management options available to investors. It concludes that professionally managed funds that employ currency derivatives may be most effective means to maintain exposure to an asset class while managing its currency risk...

Plan’s Focus on Social Security Taxes Reflects Its Modest Ambitions (jdargis)

The cuts, which would deprive the government of about $240 billion in revenues next year, are the largest items in the president’s $447 billion job-creation plan, which includes payments to unemployed workers, incentives for companies that hire workers and increased federal spending on infrastructure. All of the measures will require the support of Congressional Republicans.

What Would Happen if Social Security Disappeared? (jdargis)

The immediate redistributive effects of ending Social Security wouldn't be limited to young versus old—there would be geographic winners and losers as well. Since Social Security checks keep coming in no matter what happens to the local economy, the program tends to stabilize aging and struggling locales. If it disappeared suddenly, havens for the elderly like Florida, the slow-growing farm belt, and shrinking cities such as Detroit would suffer badly. Major urban centers teeming with youth would fare relatively well.

‘Jobs, Jobs, Jobs’ versus the S-word (jdargis)

The largest single element in the proposal, about $240 billion of a total of $447 billion in spending, would consist of extending and expanding cuts in payroll taxes.

A Bipartisan Move to Tackle Benefits Programs (jdargis)

In the presidential race, Gov. Rick Perry of Texas, the Republican front-runner of the moment, took the debate over entitlements to a level never before seen from a major candidate, calling for the end of all three programs as currently structured. In his debate with Republican rivals Wednesday, he amplified his claims that Social Security is a Ponzi scheme and a “monstrous lie” to younger Americans counting on the money for retirement. On Thursday, he circulated similar past criticisms from his chief rival, Mitt Romney, who defended Social Security in the debate.

Europe Steers Into a Zone of Uncertainty (jdargis)

On Thursday, the Organization for Economic Cooperation and Development provided only the latest gloomy assessment of the prospects for a new recession and a European banking crisis. “The sovereign debt crisis in the euro area could intensify again,” the group said, urging the recapitalization of some European banks and better financial management in the 17-nation euro zone.

And the German finance minister, Wolfgang Schäuble, scolded Athens, warning that European aid would be provided only “if Greece actually does what it agreed to do.”

Energy

Major Power Failure Affects San Diego (jdargis)

"We continue to work on the current power outage and find the cause and solution," the company said in the tweet. "We will update you as soon as we know."

All outgoing flights from San Diego's Lindbergh Field have been halted, airport spokeswoman Rebecca Bloomfield said. Incoming flights are arriving with delays.

Electricity Restored For About 700,000 Following Outage In Area Around San Diego (jdargis)

All of the company’s 1.4 millions consumers were without power on Thursday, as the failures, centered in San Diego, stretched as far north as Orange County, south into Mexico, and east into Arizona. On its Web site, San Diego Gas and Electric said the blackout could continue into Friday and urged residents to exercise care in driving and stay home at night.

By early Friday, the utility said that power had been restored to about 700,000 customers, The Associated Press reported, citing officials in California, Arizona and Mexico.

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13 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4148
BofA discussing about 40,000 job cuts: report

 

"U.S. states will start sending more than $1 billion to the federal government in coming weeks for loans used to pay unemployment benefits and some may have to raise business tax bills to cover the charges.

The 2009 economic stimulus plan made it easier for states to borrow from the federal government to pay benefits for unemployed workers, easing the strain on their budgets as revenue cratered and high numbers of residents filed for assistance during the recession.

In February, President Barack Obama asked Congress to extend the help and delay any impending tax hikes, but Republican resistance and general criticism of the $830 billion stimulus plan muted the possibility of a continuation."
 

  • Other headlines:

BofA discussing about 40,000 job cuts: report

Senate Vote Hikes US Borrowing Limit By $500 Billion

Treasury to Sell $122 Billion in Securities (Next week)

IMF chief urges bold action as G7 hold crisis talks

Juncker: No Flexibility on Greek Deficit

Inflation May Be ‘Monster’ Looming for Insurers, Sullivan Says
 

Sea radiation from Fukushima seen triple Tepco estimate

Italy to Miss Budget Goal, Risks Default, Capital Economics Says

Sweden: Greek deficits worse than thought

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Thanks Sax Player

Thanks again for the great work Sax Player.

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
Re: Major Power Failure Affects San Diego

Yesterday was a good exercise here in San Diego to test our resilience...

Shortly after the power outage when it became clear that it wasn't  a minor event, I left work for home (25 miles) and thanks to my CNG car I could use the carpool lane and avoid the worse of the traffic jam until half-way when I stopped at the CNG refill station. Of course without electricity the pump didn't work (like most (or all?) of the gas station in the city). I was quite low on natural gas and the traffic was so bad that I didn't want to take the chance of running out of CNG... so I parked the car and started a ~10 miles healthy walk back home. The cellular network was still up but It was impossible to have a call going through. Text messages were also difficult but after a few tries they eventually were sent, that was the only way to communicate with my wife at home.

First lesson learnt here is the whole family is not always home when an event like this happens. It's kind of obvious I guess but I was more preparing my home. It also means that I need to think about a better plan in the case we are away from home.

After 2 hours walk, I made it home. My wife had already prepared all our LED lamps and listening to the local news on the "Ultra Solar Dynamo Survival Radio" that I ordered just a few days ago after reading the CM blog during the Irene hurricane. It felt good to be prepared with light, drinking water and plenty of food in reserve. Natural gas and water were still working but I decided to fill in a full bath tub of water, just in case...

It was overall a good test. I'm going to accelerate my plan to have some king of electric backup system, I'm afraid this type of power outage will become more frequent in the future.

 

Nate's picture
Nate
Status: Platinum Member (Online)
Joined: May 6 2009
Posts: 590
Johnny Oxygen wrote: Thanks
Johnny Oxygen wrote:

Thanks again for the great work Sax Player.

I second that! 
Thanks Sax Player.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
An Economic Collapse Is Coming

Even Goldman Sachs Secretly Believes That An Economic Collapse Is Coming

Goldman Sachs is doing it again.  Goldman is telling the public that everything is going to be just fine, but meanwhile they are advising their top clients to bet on a huge financial collapse.  On August 16th, a 54 page report authored by Goldman strategist Alan Brazil was distributed to institutional clients.  The general public was not intended to see this report.  Fortunately, some folks over at the Wall Street Journal got their hands on a copy and they have filled us in on some of the details.  It turns out that Goldman Sachs secretly believes that an economic collapse is coming, and they have some very interesting ideas about how to make money in the turbulent financial environment that we will soon be entering.  In the report, Brazil says that the U.S. debt problem cannot be solved with more debt, that the European sovereign debt crisis is going to get even worse and that there are large numbers of financial institutions in Europe that are on the verge of collapse.  If this is what people at the highest levels of the financial world are talking about, perhaps we should all start paying attention.

dps's picture
dps
Status: Martenson Brigade Member (Offline)
Joined: Jun 27 2008
Posts: 442
Greece Govt Bond 1Year Yield

Check this chart out:

 

http://www.bloomberg.com/apps/quote?ticker=GGGB1YR:IND

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
Can you tell us more?

Damnthematrix

Thanks for the tip.  The link to the WSJ just has two teaser paragraphs unless you are subscribed.  If anyone has access to the whole article it would be great to get more info on what they said.

Travlin 

Mirv's picture
Mirv
Status: Silver Member (Offline)
Joined: Sep 30 2008
Posts: 105
Goldman Sachs secret for rich clients

Thank you damnthematrix.  This is precisely the kind of report that makes this website so valuable and entertaining.  Information is our best defense against the plutarchs..........................

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Travlin
Travlin wrote:

Damnthematrix

Thanks for the tip.  The link to the WSJ just has two teaser paragraphs unless you are subscribed.  If anyone has access to the whole article it would be great to get more info on what they said.

Travlin 

I can't find any good links to the WSJ article but here are some other stories about it.

http://mybroadband.co.za/vb/showthread.php/364132-Goldman-Sachs-says-tha...

 

http://www.prisonplanet.com/even-goldman-sachs-secretly-believes-that-an...

 

 

 

affert's picture
affert
Status: Silver Member (Offline)
Joined: Sep 22 2008
Posts: 100
WSJ article

 
http://www.efinancialnews.com/story/2011-09-02/goldman-strategist-dark-view

currently has the full text of the WSJ article regarding our good friends at goldman $achs :-/

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
Thanks

Johhny and Affert - Thanks.

Travlin

manwithgills's picture
manwithgills
Status: Member (Offline)
Joined: Jul 12 2011
Posts: 1
@sailaway

There is a man by the name of John Searl who has created a generator called the Searl Energy Generator. or SEG. I think it has tremendous potential to solve these types of issues, as it would be able to allow us to disconnect from the grid. Not only wll it work in this capacity but it can also be installed in a vehicle to provide electricity for an electric motor.

To learn more search for the Searl Energy Generator on Youtube and Google. Hopefully more people start waking the the reality that we have to be a bit more independent on our energy resources and less dependent on our power companies and government to provide these solutions.

 

Chris

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
Re: @sailaway

Thanks for the info Manwithgills, looks interresting.

 

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