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    Daily Digest 10/1 – Liquid Water Found On Mars, Saving Goldman Sachs From Itself

    by DailyDigest

    Thursday, October 1, 2015, 3:13 PM


How Congress Helped Save Goldman Sachs From Itself (richcabot)

“Glencore competes with GS Commodities but has a broader business mix, including significant production, refining, storing and transport activities,” Goldman Sachs executives said in a presentation that month to the bank’s board later made public by the Senate Permanent Subcommittee on Investigations. “May be model for evolution of commodities trading.”

The Echo Bubble in Housing Is About to Pop (richcabot)

Let's start with the basics: demographic demand for housing and the price of housing. There are plenty of young people who'd like to buy a house and start a family (a.k.a. new household formation), but few have the job or income to buy a house at today's nosebleed level–a level just slightly less insane than the prices at the top of Bubble #1.

All Bad at 0%? (Aaron M.)

At first blush, it may appear great for business to have access to cheap financing. But what may be good for any one business is not necessarily good for the economy. When interest rates are artificially depressed, it can subsidize struggling enterprises that might otherwise be driven out of business. As a result, productive capital can be locked into zombie enterprises. If ailing businesses were allowed to fail, those laid off would need to look for new jobs at firms that have a better chance of succeeding. As such, the core tenant of capitalism: creative destruction, may be undermined through ZIRP. In our assessment, the result is that an economy grows at substantially below its potential.

We’ve Seen This Picture Before—–Global Markets Down $13 Trillion Already (Aaron M.)

The DM central banks are in an even worse predicament. They have held interest rates at the zero bound for seven years and bought up a fair share of the public debt via the fiat central bank credit of QE. But while drastically inflating financial asset prices, these radical maneuvers haven’t levitated the main street economy. Consequently, central bank credibility is evaporating fast and policy confusion, indecision and incoherence are mounting visibly.

Mars Shows Signs of Having Flowing Water, Possible Niches for Life, NASA Says (jdargis)

But now, John M. Grunsfeld, NASA’s associate administrator for science, talked of sending a spacecraft in the 2020s to one of these regions, perhaps with experiments to directly look for life.

“I can’t imagine that it won’t be a high priority with the scientific community,” he said.

If there is liquid water on Mars, no one—not even NASA—can get anywhere near it (jdargis)

Terrestrial life has been shown to be very resilient. Microbes are found in almost every nook and cranny of this planet, even the driest and hottest parts. Earth’s microbes survived nearly two years stuck on the outside of the International Space Station. All probes that land on Mars are cleaned to be sterilized of life but no one yet knows how strict you need to be to ensure that bacterial life cannot form viable, self-sustaining colonies on Mars.

Trouble Ahead For The World’s Next Shale Boom? (Evan K.)

Low oil prices, however, are dampening activity in the country. YPF’s Miguel Galuccio said in April that, with oil prices so low, some wells are not profitable. “It is not profitable with an $11 million well and prices at $50 per barrel. We drilled our vertical wells with the expectation that they would be profitable at $84 per barrel and with wells that cost between $6.5 or $7 million,” he said. YPF has succeeded in bringing down the cost of drilling, but it is still shy of its target of $4 to $5 million per well, which would be much closer to the drilling costs in North America.

Is The U.S. About To Break One Of Its Own Nuclear Treaties? (Tom K.)

The deal in jeopardy involves a commitment he made, when he was secretary of Energy in the Clinton administration, with the Russians to dispose of weapons-grade plutonium, the long-lived ingredient in nuclear weapons. There are 34 metric tons of the stuff that the United States is bound, by treaty with Russia, to dispose of by integrating it into nuclear fuel and burning it in civilian power plants. This is known as mixed oxide fuel or MOX.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/29/15

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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  • Thu, Oct 01, 2015 - 1:37pm


    Chris Martenson

    Status Platinum Member (Offline)

    Joined: Jun 07 2007

    Posts: 4502

    Am I too cynical?

    When I see headlines like this in the WSJ, I can help but think to myself…

    There's a ton of evidence that the US has been backing the anti-Assad rebels since the beginning, including those that became ISIS.

    Of course, the internet is already all over this meme.

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  • Thu, Oct 01, 2015 - 4:14pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Pimco Sees 7% Devaluation in Chinese Yuan as Economy Slows

    Pimco Sees 7% Devaluation in Chinese Yuan as Economy Slows

    Bloomberg15 hours ago
    Pacific Investment Management Co. said the Chinese yuan is poised to weaken another 7 percent, after the central bank devalued the currency in August in a …

    Russia at 'Last Frontier' With Oil Tax as Kudrin Warns on Budget

    Bloomberg9 hours ago
    The ministry is also “actively” developing an instrument for the public. Domestic debt sales next year will probably slightly exceed 1 trillion rubles, Storchak said …

    Brazil Congress Postpones Vote on Dilma Rousseff's Vetoes on

    Wall Street Journal2 hours ago
    … 127.8 billion Brazilian reais ($32.3 billion) to an already large budget gap. … As a result, the budget deficit reached 9.2% of gross domestic product in August, …

    Illinois Powerball Winners Won't be Paid Until Budget Stalemate Ends

    NBC Chicago – ‎20 hours ago‎
    Illinois Lottery officials say that if an Illinois resident wins the Powerball jackpot, they won't receive the prize money until there's a state budget. Earlier, the lottery said it would not pay prize money to anyone who won more than $25,000 during

    China manufacturing weakens again

    Official PMI data raise prospect of fresh rate cut

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  • Thu, Oct 01, 2015 - 7:23pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Emerging Market Outflows

    EmergingMarket Exodus Gains Steam

    Wall Street Journal – ‎2 hours ago‎
    WASHINGTON—A rush of money out of emerging markets risks triggering a major correction in U.S. financial-asset prices, a global banking industry group warned Thursday, as it forecast that more than half a trillion dollars would exit developing

    Emergingmarket flows set to go negative for first time since 1988

    MarketWatch – ‎7 minutes ago‎
    Adding to emergingmarket woes is the prospect of the U.S. Federal Reserve lifting interest rates for the first time in nearly a decade. An interest-rate increase is a boon to the U.S. dollar, but for struggling emerging markets, like Brazil and others

    Emerging markets' capital flows plumb record lows

    Financial Times – ‎4 hours ago‎
    “Flows to EMs have weakened sharply in volatile market conditions and a jump in risk aversion,” said Charles Collyns, the IIF's chief economist. “We now project overall negative flows for the first time since the emerging markets concept was first

    Fears of a Chinese 'hard landing' trigger mass exodus from emerging markets – ‎4 hours ago‎
    Charles Collyns, managing director and chief economist at the IIF, said that “emerging markets have seen sharp losses in recent months”. The IIF's forecasts came as economists warned that emerging markets could face a brutal slowdown over the next 12 …

    Regulators approve premium jumps averaging as much as 49 percent in Minnesota

    Minneapolis Star Tribune – ‎1 hour ago‎
    Much to the dismay of people who buy health insurance on their own, premiums for thousands in Minnesota's individual market are going way up. The Commerce Department said Thursday that rates will increase next year an average of 45 percent to 49 …

    Feds Will Pay 7.4 Percent More Toward Health Care Premiums in 2016 – ‎Sep 29, 2015‎
    Federal employees and retirees' share of their health care premiums will go up by a higher percentage than the government contribution, which will rise 6 percent. OPM said the government share of premiums “is based on a lower average as enrollees

    UPDATE 1-Chile scraps goal to erase structural budget deficit by 2018

    Reuters4 hours ago
    SANTIAGO Oct 1 (Reuters) – The Chilean economy will not reach its previously stated goal of a structural budget deficit of zero by 2018 and achieving that will be …

    IMF suggests raising tax for reducing budget deficit

    International Business Times AU – ‎11 hours ago‎
    The International Monetary Fund said Australia needs to increase taxes paid by its people to effectively reduce the budget deficit since reducing capital expenditure by the government alone would not be enough. It said that Australia has very little

    Empty school buildings in Flint now magnets for crime and arson

    MLive.com10 hours ago
    … school, along with Northern High School, Bryant Elementary and Washington Elementary as the district waded through the midst of a $4 million budget deficit.

    Alaska Money Blizzard May End as Oil's Plunge Threatens Payouts

    Bloomberg9 hours ago
    A record $3.2 billion deficit in fiscal 2016 led legislators to cut $88 million from … The budget director joined Walker, who spoke to residents about the urgency of …


    NJ Transit Fare Hikes In Effect Today, More Increases Could Be

    NJ Spotlight14 hours ago
    … blamed earlier this year when agency officials said they were facing a $120 million budget shortfall. They identified about $40 million in savings before coming …


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  • Fri, Oct 02, 2015 - 2:40pm


    Bankers Slave

    Status Silver Member (Offline)

    Joined: Jul 26 2012

    Posts: 513

    "The strong cities network" or new world order policing!

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  • Fri, Oct 02, 2015 - 3:45pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Treasuries Surge After Jobs Figures Cast Doubt on Fed Increase

    Treasuries Surge After Jobs Figures Cast Doubt on Fed Increase

    Bloomberg – ‎1 hour ago‎
    The calculation is based on the assumption that the effective fed funds rate will average 0.375 percent after liftoff. Expectations for a 2015 increase had dimmed since July amid the market turmoil following China's currency devaluation and as the Fed

    Eurozone Producer Prices Fall Sharply, Adding to ECB's Concerns

    Wall Street Journal – ‎5 hours ago‎
    FRANKFURT—The decline in eurozone producer prices accelerated in August, putting further pressure on the European Central Bank to stem the risk of deflation. Prices at the eurozone's factory gates fell 0.8% on the month, their steepest monthly fall

    Kuroda Struggles to Wean Banks Off Bonds as More BOJ Easing Seen

    Bloomberg7 hours ago
    With the Japanese economy weakening markedly, banks are flocking to longer-dated government debt on expectations the Bank of Japan will expand its …

    Distressed Bonds at 59 Cents Threaten Emerging Market Gains

    Bloomberg15 hours ago
    In China, “growth continues to be supported by robust consumption and policy … bonds over Treasuries rose to 625.8 basis points Thursday, the highest since …

    UPDATE 1-Czech central bank discussed whether further easing

    Reuters4 hours ago
    One ratesetter said in early September the central bank might need to ease policy further because of disinflationary risks from abroad. Others have left open the …

    New Zealand Likely to Cut Rates Yet Again–4Q Central Bank Outlook

    Nasdaq – ‎4 hours ago‎
    New Zealand's central bank has cut interest rates three times this year and economists say there is more easing to come as the nation grapples with tepid inflation and weak dairy prices. The country lifted rates four times in 2014, encouraged by

    Economic Data May Pressure Poland's Central Bank to Cut Rates — 4Q Central

    Nasdaq – ‎4 hours ago‎
    Poland's central bank is under growing pressure to revisit the possibility of interest-rate cuts in response to uninspiring economic data and falling consumer prices, but the general expectation and official guidance is that it will hold fire for the

    Russia''s Economy Minister Says Room for Interest-Rate Cut

    Nasdaq4 hours ago
    SOCHI, Russia—The Bank of Russia has room to cut interest rates further as the … The central bank subsequently put rates on hold after cutting them five times …

    Venezuela annual inflation 180 percent -opposition newspaper

    Reuters – ‎Oct 1, 2015‎
    CARACAS Oct 1 Venezuela's monthly inflation was 16.9 percent in September, the highest in a quarter-century, and has reached an annual rate of 179.5 percent, an opposition-leaning newspaper said on Thursday, citing a source close to the Central Bank.

    UPDATE 1-Q3 investor flight wiped record $10 trillion off global

    Reuters1 hour ago
    Dedicated Europe funds saw tiny $20 million outflows in the past week, but Q3 … Net capital flows to emerging markets will be negative this year for the first time …

    National debt grows amid weak peso

    Philippine Star – ‎4 hours ago‎
    The state debt pile hit P5.898 trillion for the first eight months, up 0.9 percent from P5.847 trillion recorded as of the end of July. Compared to the January to August 2014, liabilities rose by 3.2 percent. According to a Treasury statement, the

    USA debts bombs bursting

    Pravda5 hours ago
    (Few Americans know what a derivative is, but we as a nation are on the hook for up to $315 trillion in additional debt because of these derivatives.) These debt …

    Treasury Sets Sales of $100 Billion in Debt

    Wall Street Journal17 hours ago
    The Treasury Department will auction $100 billion in securities next week, comprising $45 billion in new debt and $55 billion in previously auctioned debt.

    Treasury's Lew says US will hit debt ceiling around Nov. 5

    Reuters18 hours ago
    In a letter to lawmakers, Lew said the federal government would likely have less than $30 billion in cash at that point, straining its ability to pay its obligations.

    US municipal bond sales up 40% this year

    CNBC19 hours ago
    The sale of debt by states, cities, schools and other issuers in the U.S. municipal bond market totaled $300.8 billion in the first three quarters of 2015, up nearly …

    Brazil''s Caixa Postpones Plans for Insurance Unit''s IPO

    Nasdaq2 hours ago
    … unit in an operation that could generate up to 11.25 billion reais ($2.8 billion). … downgraded the country's sovereign debt to below investment-grade status.

    Vietnam struggles to sell bonds as funding challenge mounts

    Reuters1 hour ago
    Just 127.5 trillion dong ($5.67 billion) was raised via government bond … Public debt in 2014 was at 59.6 percent of gross domestic product according to …

    Russia prepares for wave of bankruptcy filings under new law

    Dispatch Times17 hours ago
    … number of debt holders, will immediately qualify for bankruptcy on October 1. … For example, the UCB's latest data showed loans totaling 181 billion rubles …

    Russia doubles size of Reserve Fund draw to 402 bln rbls in Sept

    Reuters29 minutes ago
    The Finance Ministry said the 402.2 billion roubles used to fund the deficit last month … This compared with 4.7 trillion roubles, or $70.69 billion, on Sept.

    Russia to Collect Extra Revenue from Oil, Gas Firms Obtained from

    Nasdaq2 hours ago
    … rubles ($4.97 billion) in 2016 from oil and gas companies that obtained extra … In 2017 and later, the deficit should decline by one percentage point a year.

    Volkswagen Diesel Scandal Sparks Europe Debt-Crisis Flashback

    Bloomberg – ‎9 hours ago‎
    “Don't underestimate the effect on funding costs,” said Michael Huenseler, who helps manage more than 15 billion euros ($16.8 billion) at Assenagon Asset Management SA in Munich. “A lot of the cars are sold with a loan and more expensive financing

    Fairfax County public schools face $70 million budget deficit

    Fairfaxtimes.com16 hours ago
    Fairfax County public schools face $70 million budget deficit … 730 positions in 2013, her first year as superintendent, while schools have cut almost half a billion …

    Chicago businesses brace for potential doubling of property taxes

    Reuters14 hours ago
    Combined, Chicago's police and fire pension funds had a deficit of $12.1 billion as of December, city records show. The fire pension system is only 23 percent …

    Kansas tax collections $31M short of expectations last month

    Washington Times17 hours ago
    Since the fiscal year began in July, tax collections have been $1.37 billion, … adjustments to lessen the chances of a deficit in the state's $15.4 billion budget.

    Loan requests, disbursements at Brazil's BNDES sink through August

    Reuters37 minutes ago
    … lending in Brazil, targets total disbursements of 170 billion reais this year. … budget deficit and the crowding-out of banks and debt markets from credit markets.

    Rauner Slashes Social Services, Cites Lack of State Budget

    Chicago Tonight | WTTW – ‎20 hours ago‎
    Mayor Rahm Emanuel estimated these changes would deny roughly 90 percent of low-income families access to affordable child care. Emanuel included $9 million into Chicago's 2016 budget to provide daycare services to 5,000 previously ineligible children …

    Chicago Public Schools downgrades four years of inflated graduation rates

    Chicago Tribune – ‎4 hours ago‎
    The policy shift also presents a new challenge for the latest schools administration, which was appointed after former chief Barbara Byrd-Bennett resigned amid a federal probe and has started a school year with a budget relying on $480 million from a …

    JC Penney unveils plan to reduce pension obligations by $5 billion

    MarketWatch4 hours ago
    J.C. Penney Co. Inc. JCP, +4.05% on Friday unveiled a plan to reduce its pension obligations by $5 billion, or 25% to 35%. The company said it has already …

    Illinois pension crisis still there. Can we talk about it, please?

    Reboot Illinois1 hour ago
    The state budget impasse has consumed the news cycle in Illinois for the past three months, but the Illinois pension crisis remains a $105 billion unsolved …

    Oil forecast dims, bankruptcies rise

    San Angelo Standard Times13 hours ago
    He points to the more than $4 billion in debt, largely taken on when a group of … of fields like Texas' Eagle Ford shale and the Bakken shale in North Dakota.

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  • Fri, Oct 02, 2015 - 4:00pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    China Slowdown Spurs Record Sales of Notes Tied to Nation's Debt

    Prices surge for tourists, locals as Greek islands lose tax break

    The Seattle Times22 hours ago
    “It is clear that this development is a political necessity, and not a choice, for the government, arising from the (bailout) agreement,” the Finance Ministry said …

    ObamaCare program paying insurers far less than requested

    The Hill17 hours ago
    … which is modeled off a program in the 2003 prescription drug law, has been politically controversial, with Republicans denouncing it as a government “bailout” …

    The Greatest Threat to Japan's National Security Is Debt

    Huffington Post – ‎2 hours ago‎
    However, the greatest threat to Japan's security at the moment is not China or North Korea, it is the nation's public debt, which has surpassed one quadrillion yen ($10.46 trillion). For Japan, this enormous debt is much like a Trojan horse. If, due to

    China Slowdown Spurs Record Sales of Notes Tied to Nation's Debt

    Bloomberg19 hours ago
    Sales of structured notes tied to the sovereign debt of China are on track for a record year, as the climbing cost of insuring against a default by the country …


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  • Fri, Oct 02, 2015 - 6:18pm

    Reply to #1


    Status Bronze Member (Offline)

    Joined: Sep 27 2012

    Posts: 63

    U.S Officials Said


    When I see headlines like this in the WSJ, I can help but think to myself…

    There's a ton of evidence that the US has been backing the anti-Assad rebels since the beginning, including those that became ISIS.

    Of course, the internet is already all over this meme.


    Hi Chris,

    do you ever follow Robert Fisk at The Independent in the UK? He's been a middle east correspondent for more than 20 years and lives in Lebanon to boot. One of my most trusted journalists, here's a brace of short and to the point links from memory : –


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  • Fri, Oct 09, 2015 - 5:42am



    Status Member (Offline)

    Joined: Mar 26 2014

    Posts: 22

    saw mad max fury few days

    saw mad max fury few days back, an after Apocalypse survival story! this reminded me of it! and finding alternatives of earth seems most essential at this time! hope this discovery would bring a revolution.

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