Daily Digest

Daily Digest - October 10

Saturday, October 10, 2009, 10:50 AM
  • Three Government Reports Point to Fiscal Doomsday 
  • 10,000 apply for 90 factory jobs
  • Oil at $200, Stocks Can Keep Rallying: Jim Rogers 
  • Gold Will Keep Advancing After Reaching Record, Survey Shows 
  • Death of the Petro-Dollar, Told Ya So 
  • New billion-dollar hole in California's budget 
  • Bratton says budget woes may endanger police hiring 
  • Whodunit? Sneak attack on U.S. dollar
  • Credit squeeze on entrepreneurs threatens to derail recovery
  • The Morality of Walking Away From a Mortgage
  • Fat of the Land: Adventures of a 21st Century Forager 



Economy

Three Government Reports Point to Fiscal Doomsday (M.W.)

Three recently released government reports now point to fiscal doomsday for America; and one of the reports, issued by the Congressional Budget Office (CBO), says so explicitly ...

10,000 apply for 90 factory jobs (Vinny A.)

In the latest sign of weakness in Louisville-area employment, about 10,000 people applied over three days for 90 jobs building washing machines at General Electric for about $27,000 per year and hefty benefits.

Oil at $200, Stocks Can Keep Rallying: Jim Rogers (Vinny A.)

Investor Jim Rogers, a prominent commodities bull, said Thursday the U.S. government bond market will be the next bubble to burst due to unsustainable borrowing, and agricultural commodities and precious metals are among his favorite investment picks.

Gold Will Keep Advancing After Reaching Record, Survey Shows (Vinny A.)

Gold, trading at a record for a third consecutive day, will keep rising as a weaker dollar and concern that inflation will accelerate bolsters investor demand, a survey showed. Bullion will advance to $1,150 an ounce by the end of the year, 9 percent higher than today, according to the median estimate in a survey of six analysts and investors at a commodities conference in London yesterday. Estimates ranged from $1,300 to $1,050. Gold already rose 20 percent this year and is heading for a ninth consecutive annual gain, the best performance since at least 1948.

Death of the Petro-Dollar, Told Ya So (pinecarr)

The story hit like a thief in the night, even bearing Biblical proportions. The end of the exlusive sale of MidEast oil in USDollars, the rise of Russian and Chinese influence in the Persian Gulf, the rise in importance for the Intl Monetary Fund basket of currencies, the final clarion call for the free ride by Americans on the Dollar Credit Card, and hidden implications that the Saudis must shop for a new security lord in the region with broad military might, these are revolutionary steps with profound geopolitical implications. 

New billion-dollar hole in California's budget (Livio S.)

State revenue has already fallen more than $1 billion short of assumptions in the budget lawmakers passed less than three months ago, according to a new report from the state controller. Disappointing income tax receipts are the main culprit, falling 11% below what lawmakers and Gov. Arnold Schwarzenegger expected when they agreed on a patchwork budget during the summer, halting the state’s issuance of IOUs. Sales and corporate taxes have also slid below projections.

Bratton says budget woes may endanger police hiring (Livio S.)

The LAPD, which has added about 800 officers over the last three years, has been hiring only enough new officers to replace those who resign or retire. Bratton said that although he opposes efforts to scale back new hiring, the enormity of the city’s financial woes may cause the LAPD to retrench. “The reality is, the city budget crisis is probably going to result in fewer officers, either by furloughs or attrition,” Bratton said during the last of his monthly news briefings before he resigns Oct. 31 to join an international security firm.

Whodunit? Sneak attack on U.S. dollar (Joemanc)

It’s the biggest mystery in global finance right now: Who conducted a sneak attack on the U.S. dollar this week? It began with a thinly sourced but highly explosive report Monday in a British newspaper: Arab oil sheiks are conspiring with the Russians and Chinese to quit using the dollar to set the value of oil trades — a direct threat to the global supremacy of the greenback. But one thing is for certain: With the price of gold jumping to $1,048.20 per ounce, traders who moved early enough stood to make millions. So in government circles in Washington, speculation immediately centered on gold traders: With the skyrocketing price of gold, they’d be the biggest beneficiaries of the article.

Credit squeeze on entrepreneurs threatens to derail recovery (David M.)

U.S. banks are reducing their lending at the fastest rate on record, tightening the credit squeeze and threatening to leave many otherwise viable businesses unable to borrow money to expand their businesses, meet their payroll or refinance their maturing debts.

The Morality of Walking Away From a Mortgage (David M.)

Self-assigned guardians of financial ethics see the willingness of borrowers to abandon their mortgage debts as a sign of the “erosion of social and moral standards.” The aim of these critics is to shame debtors into sticking with their mortgages. That's something debtors should take with a grain of salt. There are many good reasons to keep paying your mortgage and avoid the black mark of foreclosure, but the immorality of sticking the bank with a loss isn't one of them.

Environment

Fat of the Land: Adventures of a 21st Century Forager (David M.)

In case you haven't noticed, dandelions have bigger brains than people. Seriously. And they get smarter each time you whack them. Mow a lawn of dandelions repeatedly and what happens? The dandelions learn to flower ever closer to the ground until those yellow Cheshire cat faces are grinning at you from beneath the grass. They know exactly how far down the cutting blade can reach, and that's where they proliferate once again... It's peak dandelion petal time in Seattle. This is the time of year I make Dandy Bread, a favorite of the kids.

6 Comments

VeganDB12's picture
VeganDB12
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 740
Re: Daily Digest - October 10

Nice dandelion link!

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
Re: Daily Digest - October 10

got a 404 on this link:  http://www.financialsense.com/fsu/editorials/willie/2009/1008.htm

(it should be html)

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4145
Re: Daily Digest - October 10

1)  Robert Fisk reveals truth behind 'dollar demise' report (Video)

2) The shortage continues

3) This would be a nice idea

 

 

dcm's picture
dcm
Status: Silver Member (Offline)
Joined: Apr 14 2009
Posts: 214
Re: Daily Digest - October 10

Thanks. VeganD. The guy lives up to his title. Unlike all the other guys we complain about here

guardia's picture
guardia
Status: Platinum Member (Offline)
Joined: Jul 26 2009
Posts: 592
Re: Daily Digest - October 10

Hey dcm, here's something else to brighten your day a bit... Yesterday it came to my mind that if/when society as we know it today collapses, it'll surely throw a wrench at cultural uniformization and other phenomena related to globalization. Good news! :)

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4145
Re: Daily Digest - October 10

"Only 46% of people aged 16-24 had jobs in September, the lowest since the government began counting in 1948. "

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