Daily Digest

Daily Digest 9/15 - Taps For The Unemployed, Poverty Rate Rises In U.S., Did Wages Tap Out With Domestic Oil?

Thursday, September 15, 2011, 9:40 AM
  • Fraser and Freeman, Taps for the Unemployed
  • Record poverty last year as household income dips
  • Poverty rate rises in America
  • Fed Set To Give Economy Therapy, Not Shock Treatment
  • Moody's Downgrades Credit Agricole, SocGen Ratings
  • William Black: Why Nobody Went to Jail During the Credit Crisis
  • Prepare And Prosper In The Long Emergency
  • Did Wages Top Out with Domestic Oil?

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

Fraser and Freeman, Taps for the Unemployed (jdargis)

Yet another Labor Day holiday has passed, little noted except for its traffic jams, even though, for growing numbers of Americans, every day is (un)Labor Day and it’s no vacation. Think of this, in fact, as our country’s economic 9/11 -- the people taken down by the crew that hijacked our economy and ran it into the nearest set of buildings. In this case, however, tower after tower has already collapsed, and more are shuddering, while millions of previously employed Americans are now the equivalent of desperate internal exiles in their own country. It’s a slo-mo catastrophe for which, startlingly, the first responders have not yet arrived and show no signs of ever doing so.

Record poverty last year as household income dips (Michael W.)

The Census report also noted a gain in “doubled-up households” — those formed by combining households with other families or individuals to deal with the tough economic times. This year, about 5.9 million adults between 25 and 34 live in their parents’ households, up 25% from 4.7 million before the recession. Between spring 2007 and spring 2011, the number of doubled-up households rose 2 million to 21.8 million.

Poverty rate rises in America (Michael W.)

"The results are not surprising given the economy," said Paul Osterman, author of "Good Jobs America," and a labor economist at MIT. "You would expect with so many people unemployed, the poverty rate would go up. It's just another sign of what a difficult time this is for so many people."

Fed Set To Give Economy Therapy, Not Shock Treatment (Johnny Oxygen)

With one eye on escalating debt turmoil in Europe and another on a stubbornly high 9.1 percent U.S. unemployment rate, the Fed, whose policy panel meets next Tuesday and Wednesday, looks set to begin shifting the composition of its balance sheet to weight it more heavily with longer-term securities.

Having taken short-term interest rates to near zero and bloated its balance sheet with bond purchases that topped $2 trillion, analysts say the U.S. central bank is looking for smaller-bore ways to increase its support, such as shifting its holdings away from shorter-term debt.

Moody's Downgrades Credit Agricole, SocGen Ratings (Johnny Oxygen)

Moody's Investors Service said on Wednesday that it downgraded the credit ratings of Societe Generale and Credit Agricole, marking the latest in a series of blows to French banks that have recently punished European stocks.

Moody's cut SocGen's [SOGN.PA 17.90 --- UNCH (0) ] debt and deposit ratings by one notch to Aa3 from Aa2.

William Black: Why Nobody Went to Jail During the Credit Crisis (Adam)

Jim welcomes Professor of Economics and Law William Black to Financial Sense Newshour. He explains to Jim why no one has gone to jail four years after the beginning of the historic Credit Crisis. Professor Black believes that the level of corruption and fraud is so pervasive that very few of the guilty will ever be brought to justice.

Energy

Prepare And Prosper In The Long Emergency (JFS)Over the past 30 years, the world has run on a system of debt and consumption. We all played a part. Even young people – students – would rack up huge debt at a university and in turn enslave themselves to a salary in order to service the debt. Social reinforcement has been a powerful mechanism, encouraging people to indebt themselves further through mortgages, car loans and credit cards. We were (and still are) told that we “deserve” that shiny new luxury car or the McMansion. Can’t afford it – no problem! Finance it a low, low interest rate for the next 30 years. Enslave yourself.

Did Wages Top Out with Domestic Oil? (Mike K.)

The "solution," financialization and globalization, have incentivized corruption, speculation and mal-investment on a grand scale, and unleashed a destructive host of unintended consequences. Now we are trapped in a fiscal box that's been in the making for 40 years: households' real poverty is being masked by massive Federal transfers, funded by borrowing on a massive scale, and our "cheap" energy depends on an unsustainably costly global security machine and a "dollar hegemony" that may well strengthen as the euro dissolves, but which is still an unstable bargain for oil exporters: paper for oil.

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."

6 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4065
ECB and Federal Reserve to Provide Dollars to Euro-Area Banks

 

  • Just headlines:
  1. China to 'liquidate' US Treasuries, not dollars (Ambrose Evans-Pritchard)
  2. Merkel says euro bonds are "absolutely wrong"
  3. Europe default risk signal flashing red
  4. ECB Says Risks to Economic Outlook Have Shifted to Downside
  5. US, Europe Worry 'Everyone': Saudi Central Bank Governor
  6. Greece Needs Default, Abandon Euro Over Loan, Sulik Says
  7. Truglia Says Italy Debt Too Large for Euro-Zone Bailout (Video)
  8. Bank of Japan warns of recovery risk, European woes
  9. China's power consumption up 9.1% in August
  10. Greece's Departure From the Euro Seems Inevitable; It's Now Just a Question of Timing
  11. Rogue Trader Leaves UBS With $2 Billion Loss
  12. ECB Says Banks' Emergency Borrowing Jumped to Highest in Month
  13. Borrowing Costs Stubbornly High at Spanish Auction
  14. Nassau's Mangano Proposes Cutting 1,010 Jobs to Close Gap (NY)
  15. Italy Facing Another Test As Moody's Rating Decision Looms .
  16. Greeks fume over property tax demanded by EU, IMF
  17. Greek Second-Quarter Unemployment Rate Rises to Record 16.3%
  18. Jobless claims post surprise increase last week
  19. Britain's Youth Face 'Lasting Penalty' as Unemployment Climbs
  20. Italy Erupting - Protesters Clash With Riot Police Over Austerity Measures (Video)
  21. Calif. Notices Of Default Increase By 55 Percent
  22. ECB Coordinates With Federal Reserve to Provide Dollars to Euro-Area Banks
  23. Food Inflation Rate Exceeds 9% for Sixth Week, Adding to Pressure on Rates (India)
  24. Mortgage-Default Filings Jump 33% in U.S. as Bank Foreclosure Logjam Eases
  25. Does the Euro Have a Future? (George Soros)
  26. Greek 5-year CDS quoted 60 points upfront

.........The story on headline #13 has since been changed to" E.C.B. Moves to Provide Extra Liquidity" and gives more details. Notice who is involved: "The E.C.B. said it was acting in coordination with the with the United States Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank. "

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
found this blogpost by the

found this blogpost by the woman who was handcuffed & strip searched in detroit on 9/11: 
 
http://shebshi.wordpress.com/2011/09/12/some-real-shock-and-awe-racially-profiled-and-cuffed-in-detroit/

there's 2300 comments, so it loads slow...

heffe's picture
heffe
Status: Bronze Member (Offline)
Joined: Dec 26 2009
Posts: 95
Articles on Poverty and Debt based systems

Those articles that talk about increasing poverty are not surprising. Even less surprising is that the top 1% are making huge capital gains, and probably off no productivity whatsoever, merely investments that move money around to make more money along with massive layoffs that increase cost efficiency. It is similar to a cancer, this monetary-market paradigm we adhere to, as it continually needs to grow while having to relation to its life host; the people or the planet. Its sad so many just accept it as unchangeable, when there are plenty of alternatives to our centralized, debt based fiat currency systems.

Then there's the article on corruption in government, surprised? Maybe its the whole modus operandi of the monetary system itself eh? The 'producers' want unhindered access to money creation, its how they survive. Thus, any regulatory system that supposed to keep the producers in order, are going to be purchased into siding with the producers. Whats sad is that we divide ourselves into subjugated terms like producers and consumers, we are all humans, wanting a good life, and if true self interest was involved in our daily actions, the monetary-market system would be abandoned.

Lastly, the first article in the energy section, describes how we have all submitted to this debt based system. Why is it that no one questions the debt based system in the first place?  EAU's can create curreny through production rather than debt, which would allow abundance while maintaining dynamic equilibrium within energy resources. inhabitat.com/german-village-produces-321-more-energy-than-it-needs/ This town in Germany produces 300% more energy than it needs, all through renewable means. If every community did the same, and currencies were based on energy extraction, we'd have an abundance of goods while maintaining sustainable systems.

Just food for thought

RogerA's picture
RogerA
Status: Silver Member (Offline)
Joined: Jun 18 2009
Posts: 106
Corruption

Then there's the article on corruption in government, surprised? Maybe its the whole modus operandi of the monetary system itself eh? The 'producers' want unhindered access to money creation, its how they survive. Thus, any regulatory system that supposed to keep the producers in order, are going to be purchased into siding with the producers.

I agree.
Not only the modus operandi of the monetary system but everything. If you think the banks and the money system is pervaded with fraud and corruption take some time to examine the legal system. They go hand in hand.

maceves's picture
maceves
Status: Gold Member (Offline)
Joined: Aug 23 2010
Posts: 281
Why nobody went to jail...

 That was an "oh wow!" moment....Now I think I understand a lot of things a little better....

guardia's picture
guardia
Status: Platinum Member (Offline)
Joined: Jul 26 2009
Posts: 592
Greece is on fire!

According to tonight's NHK (Japan's BBC) News broadcast, Greece is on fire:

Greece on fire

LOL

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