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    Daily Digest 1/31 – Ron Paul’s Border Wall Solution, China’s Mundell Fleming Trilemma

    by DailyDigest

    Tuesday, January 31, 2017, 3:11 PM


The Casino Bet All Its Chips On Orange – Now Comes The Reckoning (Aaron M., login required)

Ever since the wee hours of election night it’s been a case of “what are they thinking?” The only possible reason for the 15% rally off the midnight lows was that a giant Trump Stimulus would hyper-charge the flagging US economy and send profits—which have been shrinking for the last eight quarters— soaring into orbit.

Ron Paul Suggests A Better Solution Than Trump’s Border Wall (Don R., reflector)

The various taxpayer-funded programs that benefit illegal immigrants in the United States, such as direct financial transfers, medical benefits, food assistance, and education, cost an estimated $100 billion dollars per year. That is a significant burden on citizens and legal residents. The promise of free money, free food, free education, and free medical care if you cross the border illegally is a powerful incentive for people to do so. It especially makes no sense for the United States government to provide these services to those who are not in the US legally.

Trump signs executive order requiring that for every one new regulation, two must be revoked (Aaron M.)

The executive order calls for agencies to pinpoint “at least two” current regulations to be repealed for each new proposed regulation. And it says the net incremental cost for fiscal 2017 should “be no greater than zero,” meaning the cost of new regulations should be offset by existing rules that will be rescinded.

‘It’s made in Vietnam!’ At inauguration, origin of red Trump hats shocks many (Uncletommy)

“I bought this hat the day he won the election,” said Araco. “From his website, of course. I wanted to make sure I supported his fund. I don’t want to buy a knock-off. I bought the hat for $30, shipping included.”

Victoria Scott, 13 and her brother Andrew Scott, 12, each bought a “Make America Great Again” hat before the inauguration. Victoria’s hat cost $25 – and was made in China.

China’s Mundell Fleming Trilemma (Alex B.)

It was also a fundamentally compelling trade. The thesis was based on an economic law derived from the Mundell-Fleming model. It states that in a world of high capital mobility, a central bank can target the exchange rate or the interest rate but not both. This economic reality is also known as the policy trilemma. Here’s the following explanation from The Economist…

Trial Balloon For A Coup? (jdargis)

As the Guardian points out, this has an important and likely not accidental effect: it leaves the State Department entirely unstaffed during these critical first weeks, when orders like the Muslim ban (which they would normally resist) are coming down.

The article points out another point worth highlighting: “In the past, the state department has been asked to set up early foreign contacts for an incoming administration. This time however it has been bypassed, and Trump’s immediate circle of Steve Bannon, Michael Flynn, son-in-law Jared Kushner and Reince Priebus are making their own calls.”

Saudi Arabia signals end of tax-free living as oil revenues slump (Uncletommy)

The cabinet “decided to approve the unified agreement for value-added tax” to be implemented throughout the Gulf Cooperation Council (GCC), the official Saudi Press Agency said. “A royal decree has been prepared,” it said.

The move is in line with an International Monetary Fund recommendation for Gulf states to impose revenue-raising measures including excise and value-added taxes to help their adjustment to lower crude prices which have slowed regional growth.

Earth’s magnetic field could flip within a human lifetime (reflector)

“It’s amazing how rapidly we see that reversal,” said UC Berkeley graduate student Courtney Sprain. “The paleomagnetic data are very well done. This is one of the best records we have so far of what happens during a reversal and how quickly these reversals can happen.”

Gold & Silver

Click to read the PM Daily Market Commentary: 1/30/17

Provided daily by the Peak Prosperity Gold & Silver Group

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."

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  • Tue, Jan 31, 2017 - 1:33pm

    Luke Moffat

    Luke Moffat

    Status Silver Member (Offline)

    Joined: Jan 25 2014

    Posts: 365

    Five Minutes of Your Time

    I’ve just come across Lester Brown’s Earth Policy Institute website (which actually closed down 18 months ago). Anyway –

    The 5 minute summation is a sound recap on the food scarcity problems that we face.

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  • Tue, Jan 31, 2017 - 3:38pm

    Reply to #1


    Status Bronze Member (Offline)

    Joined: Feb 16 2014

    Posts: 52

    Full planet - empty plates

    If you can source a copy of the book Luke, it is worth a read.
    I remember reading it some time ago, and thinking, ‘this makes sense, but s**t we are in trouble’. With our money and access to energy we rich people of the world are papering over the cracks that have been starving the poor for years. How long we can keep papering, we will see.

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