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    Daily Digest 10/15 – Good News For Gold, Can The Oil Industry Really Handle This Much Debt?

    by DailyDigest

    Thursday, October 15, 2015, 3:00 PM


Walmart Stock Craters On Profit Warning – The Fatal Blindness of Greed (Adam)

Walmart is at the sharp point of the failing US consumers, who are un- or under- employed with stagnant wages and shrinking benefits, pinned by rising rents and healthcare costs, possessing little discretionary income, almost no savings, and living virtually paycheck to paycheck.

In the new retail models, like Walmart and Amazon, the vast bulk of the income goes directly to the top, to a fortunate few like the Walmart family and Jeff Bezos, with a little to shareholders, and crumbs to the employees who are driven harder to be ‘competitive.’

Hillary Clinton’s Take on Banks Won’t Hold Up (Michael W.)

“Just for viewers at home who may not be reading up on this, Glass-Steagall is the Depression-era banking law repealed in 1999 that prevented commercial banks from engaging in investment banking and insurance activities. Secretary Clinton, he raises a fundamental difference on this stage. Sen. Sanders wants to break up the big Wall Street banks. You don’t. You say charge the banks more, continue to monitor them. Why is your plan better?”

Gold Standard Nonsense Compelling Us To Repeat History (Aaron M.)

This rhetoric seriously prevents us from observing a simple fact: there was debt under a gold standard and every gold standard throughout history has collapsed. Not a single gold standard ever survived. You just do not understand history. It is the politicians who blow it up, regardless of what you call money.

Good News For Gold (Taki T.)

But the long multi-decade cycles of supply and demand, boom and bust, remain. And though few outside the industry are talking about it yet, the seeds for the next boom are already in the wind.

The reason has to do with global production.

Wall Street firms that bankrolled oil boom are hurting (Aaron M.)

The American energy boom of the past decade was fueled by a wave of cheap credit from big banks. But now cracks have begun to emerge in that boom because oil prices have plunged from around $100 last year to below $50 today.

Wells Fargo (WFC) on Wednesday said it was forced to set aside more cash to cushion against potential commercial defaults due to the “deterioration in the energy sector.”

Can The Oil Industry Really Handle This Much Debt? (Evan K.)

As The Wall Street Journal reported in August, Exxon Mobil Corp. and Chevron Corp. stated they were cutting stock-buyback programs, while Linn Energy LLC announced it would stop paying dividends to its shareholders. Meanwhile, several small U.S. oil and gas producers have filed for chapter 11 bankruptcy protection this year. Companies with persistently negative free cash flow fall into the trap of borrowing, as they have to incur more debt to repay what they have already borrowed before. This makes such companies vulnerable to default and bankruptcy.

Q & A with the “Mosul Eye” Historian (jdargis)

The real danger is not in blogging itself, but in getting access to accurate information while maintaining your safety and not revealing your identity. I have used dozens of personalities and styles so as to stay safe. I have penetrated ISIS at its most fortified gates without their notice. I admit that this can be exhilarating in a way that helps relieve my fears of being killed at the hands of ISIS.

The Man Who Builds Luxury Bomb Shelters for Paranoid One Percenters (jdargis)

As we roll down US Highway 41 in Terre Haute, Indiana , my guide insists I give him my iPhone. Then he tosses me a satin blindfold. The terms of our trip were clear—I wasn’t to know where we were going or how we got there. That’s because we’re on our way to the undisclosed location of an underground bunker designed to survive the end of the world, whatever form that apocalypse takes.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/14/15

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 15, 2015 - 4:10pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2960

    Euro drops on hopes of more QE after ECB

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    Bloomberg – ‎3 hours ago‎
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    Reuters – ‎10 hours ago‎
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  • Thu, Oct 15, 2015 - 7:09pm



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    Gold Standard Nonsense Compelling Us To Repeat History

    I'm nowhere near an economist but I think Martin Armstrong is full of crap. There were debt crisis under the gold standard but nowhere near the size of the one we have now, they were normally brought on by war and were short lived once the war was over. His reasoning that every gold standard failed is pretty shaky too, they failed because the governments that did away with the gold standards wanted to spend hundreds of times the money a gold standard would allow. I may be wrong but his reasoning is wrong as far as I can see. I would appreciate any education anyone could give me on this.

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  • Thu, Oct 15, 2015 - 11:45pm

    Reply to #2


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    Posts: 3210

    gold standard reasoning

    The part I found compelling was that the gold standard could not prevent politicians from acting badly.

    Else – why did we ever leave the gold standard in the first place?

    A gold standard will not magically make bad stewards of the economy into good ones.  Its like suggesting a better vehicle code will make a bad driver into a good one.

    Enforcement, as always, is the issue.

    And we did indeed have a bubble during the gold standard.  1929 was just such a bubble.

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  • Fri, Oct 16, 2015 - 3:46pm



    Status Bronze Member (Offline)

    Joined: Nov 30 2008

    Posts: 112



    Walmart has long been a major factor in moving American jobs overseas. Once a manufacturer becomes a supplier to Walmart and becomes dependent upon its new, biggest customer, it has been Walmart's practice to demand price cuts and insist that the supplier relocate manufacturing overseas to lower the price. Rubbermaid, General Electric and Levi Strauss (amongst many others) have been forced by Walmart to move production to low-cost countries thereby laying-off tens of thousands of American workers.


    When one considers that Walmart's policy of selling for the lowest price makes its target customers low income families, including the unemployed, it becomes obvious that Walmart actually benefits at both ends by exporting American jobs.


    As a firm believer in the power of free markets to increase efficiency, promote competition, increase value and lower prices, I must admit to being torn between my free market belief and my concern at the way Walmart has so obviously crippled many communities by eliminating their core industry and generally contributed to the wholesale destruction of American manufacturing jobs.


    Manufacturing: the process of adding value to raw materials or components in order to produce goods that satisfy a customer's needs and can be sold at a profit – is the mainstay of any economy and the main generator of real wealth. Without a robust manufacturing industry, America will continue to decline. We cannot regain prosperity by taking in each others washing.


    There are no simple solutions. But I suggest we would be better off as a country if the relentless search by Walmart, and other industry giants, for increased profit would be tempered by human concern for the welfare of the society in which it does business.

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  • Sat, Oct 17, 2015 - 2:11am

    Reply to #2


    Status Bronze Member (Offline)

    Joined: Oct 13 2008

    Posts: 306

    "His reasoning that every

    "His reasoning that every gold standard failed is pretty shaky too, they failed because the governments that did away with the gold standards wanted to spend hundreds of times the money a gold standard"

    Consider that even under a gold standard, there is nothing stopping the gov't from devaluing the currency. in 1933 FDR devalued the dollar by 1/3 while the US was still on the gold standard. As long as the gov't can set the rules and regulations of currency, its still has the ability to manipulate and inflate the money supply.

    The US did away with the Gold Standard when it ended Bretten woods (trade deficits/Surpluses settled in Gold), The US ended Bretten Woods because it ran out of gold Gov't can also run scams with gold leases and a single ounce of gold could be rehypothecated dozens or hundreds of times. 

    I think the real answer is a secular gov't that seperates currency from gov't (ie like separation of the Church and state). Although this is a pipe dream. Any talk of bringing back a gold standard is also a pipe dream since every industrial gov't owes trillions in debt and unfunded liabilities.


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