Investing in Precious Metals 101 ad
  • Daily Digest
    Image by Alan R. Light, Flickr Creative Commons

    Daily Digest 10/20 – Saudis And China Dump Treasuries, What Happens When The Electricity Goes Off?

    by DailyDigest

    Thursday, October 20, 2016, 1:47 PM


Russia to respond to any new US sanctions with ‘painful’ measures – deputy FM (Ali S.)

“If the US opts to further toughen sanctions in defiance of common sense and in disregard of its experience that has already been quite painful for them, then we will find measures in our toolbox that will have a painful impact, particularly in terms of America’s positioning in the world,” Ryabkov told the deputies of the Russian State Duma, ahead of a vote on a bill suspending the Russian-American deal on reprocessing weapons-grade plutonium.

Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $346 Billion In US Paper (reflector, Aaron M.)

Then today, in addition to the Fed's custody data, we also got the latest monthly Treasury International Capital data, which showed that the troubling trend presented last one month ago, has accelerated. Recall that a month ago, we reported that in the latest 12 months we have observed a not so stealthy, in fact quite massive $343 billion in Treasury selling by foreign central banks in the period July 2015- July 2016, something truly unprecedented in size and scope.

The Warnings of a New World War (Aaron M.)

In an interview with the Bild newspaper on Oct. 8, German Foreign Minister Frank-Walter Steinmeier, who is known for his cautious rhetoric, described the present international situation in the following woeful terms: “unfortunately it is an illusion to believe this is the old Cold War. The new times are different; they are more dangerous. Previously, the world was divided, but Moscow and Washington knew each other’s red lines and respected them. In a world with many regional conflicts and dwindling influence of the great powers, the world becomes more unpredictable.”

Yellen & Co.’s $13 Trillion Stimulus Boon Just Keeps Giving (Adam)

By buying and holding government debt to drive down borrowing costs and by remitting funds earned on those securities back to national treasuries, central bank chiefs Janet Yellen, Mario Draghi and Haruhiko Kuroda are in effect collaborating with their political counterparts to stretch crisis support into the distant future.

Don't Overlook Russia (Tiffany D.)

I believe U.S. stocks are dangerously overvalued. I believe the U.S. economy is a meth head addicted to the narcotic of free money and that the Federal Reserve is dangerously close to an epic crisis (no matter whether it raises or lowers interest rates). And I believe the U.S. dollar has all the strength of a 98-pound weakling strutting around Muscle Beach as though he owns the sand.

Before You Head to the Polls, Find Out Where Congress Stands on Food Issues (jdargis)

Of the 435 voting members in the House of Representatives and 100 in the Senate, 117 legislators’ scores decreased while 310 legislators’ scores increased an average of 14 percent. Eighty-two members of Congress received a perfect 100 percent, including House Minority Leader Nancy Pelosi. Representatives Jody Hice (GA-10), Paul A. Gosar (AZ-4), and Tom Graves (GA-14) received the lowest scores, 12 percent, based in part on voting against legislation that would manage cyanotoxins in drinking water and voting to repeal a law that mandates meat and other foods be labeled with their country of origin.

Tesla bans customers from using autonomous cars to earn money ride-sharing (jdargis)

While this is the first instance we can think of where a car company has preemptively banned its customers from using their vehicles for a specific use, post-sale conditions imposed by car companies are not entirely unheard of. Ferrari, for example, has been known to insist that customers buying its most expensive cars (like the Enzo or LaFerrari) promise not to resell them before a certain point, and the Italian sports car maker also famously disliked the way one of its high-profile customers had his car wrapped.

Silver, Debt, and Deficits – From an Election Year Perspective (GE Christenson)

You can see that official national debt has been rising exponentially. At the current rate of increase it should approach $40 trillion in 8 years. Given the likelihood of more wars, recessions, more social spending, and accelerating Medicare and Social Security expenses the total debt might be considerably higher than $40 trillion in 8 years, regardless of who is elected.

What Happens When the Electricity Is Off for Three Days? (reflector)

South Oz is continuing with its streak of extreme weather. The latest being our encounter with what's being described as a category 2 'hurricane' with the added bonus of a severe front preceding it that produced many low-grade tornados. A score of major power transmission towers were twisted off their footings, 80 000 lightning strikes fried out a lot of 'secondary' electricity infrastructure … 40% of power that is usually being generated from wind had to be shut down due to extreme winds and base load backup generators failed in many locations (including my region).

Tesla, Apple and Uber Push Lithium Prices Even Higher (Josh O.)

Lithium demand is rising fast, but those that understand the product lifecycle and development stages see that we are on the cusp of something much bigger. As more and more countries cross the electric vehicle chasm, demand will explode. This is not even considering grid storage, which is set to outstrip electric vehicle demand, and the rising use of consumer electronics.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/19/16

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to 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."

Related content
» More


  • Thu, Oct 20, 2016 - 3:06pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2923

    Euro hits four-month low as Mario Draghi hints at more stimulus

    European Central Bank keeps stimulus program steady

    USA TODAY2 hours ago
    FRANKFURT, Germany – The European Central Bank left its key interest rates and its bond-buying stimulus program unchanged on Thursday as it seeks more …

    German central banker tells sector to stop complaining about rates

    Financial Times2 hours ago

    A senior German central banker has delivered a stern rebuke to Europe's banking sector, telling its executives to stop moaning about negative interest rates,

    A Less-Cash Society, Not a Cashless One

    Bloomberg19 hours ago
    The main point of the book is not that currency should be phased out to get to negative interest rates. In fact, although negative rates and cash are intimately …

    Global public debt soars $11 trillion in 2016

    Daily Sabah16 hours ago
    The central banks of developed countries launched monetary expansion policies and switched to negative interest rate policies. The recession's effects on …

    China's Housing Bubble Wobble

    Bloomberg10 hours ago

    But the local government had begun, among other bubble-fighting measures, … Consumer spending could fall, too, since people have taken on more debt to buy .

    25 Trillion Reasons to Worry About China Debt

    BloombergOct 19, 2016
    In today's “QuickTake,” Bloomberg's Matt Miller takes a look at soaring levels of debt in China. He speaks on "Bloomberg Markets." (Source: Bloomberg) …

    Australia Housing Boom Peak Has Passed, Morgan Stanley Says

    Bloomberg11 hours ago
    The slowdown in construction will hurt economic growth, put 200,000 jobs at risk and prompt the central bank to resume cutting interest rates next year, Morgan …

    Social Security's Challenges Get a Moment in Final Trump, Clinton Debate

    Wall Street Journal (blog) – ‎11 hours ago‎
    Analysts at the Committee for a Responsible Federal Budget, which advocates for deficit reduction, say it is fanciful to suggest the actuarial imbalance of the program can be addressed by simply getting rid of waste, fraud and abuse, as Mr. Trump has

    Companies press for cut in pension promises

    Financial Times – ‎10 hours ago‎
    According to the PLSA, employers paid about £31bn into their DB schemes in 2015, with about £11bn of this spent plugging deficits that have widened in the low interest rate environment. “That money could have been spent elsewhere in their business, for …

    St. Augustine in Puerto Rico

    Wall Street Journal15 hours ago
    Public pension funds are nearly broke with $44 billion in unfunded liabilities. … would face a $5.7 billion deficit over the next decade—not including debt service.

    Democrats add to mounting calls for health care cost fixes

    Washington Times – ‎1 hour ago‎
    ST. PAUL, Minn. (AP) – Senate Democrats are calling on Gov. Mark Dayton to call a special session to address rising health care costs. Democrats who control the Senate had planned a press conference Thursday afternoon to lay out their plans. It adds to

    Hearing airs ideas on cutting Massachusetts' soaring health care costs

    BayStateBanner – ‎5 hours ago‎
    Health care specialists and elected officials convened on Monday for the first part of a two-day annual hearing aiming to get to the root of Massachusetts's rising health care costs. In 2015, state healthcare spending grew by 4.1 percent, defying its


    Login or Register to post comments

  • Thu, Oct 20, 2016 - 3:16pm



    Status Platinum Member (Offline)

    Joined: Apr 27 2010

    Posts: 1423

    Steyn: the massive government corruption is THE issue

    As I've said for years – on radio, TV and in print – for me the overriding issue in American politics is the corruption. In the Obama era, we have seen the remorseless merging of the party and the state – in the IRS, in the Justice Department and elsewhere. Whatever one feels about, say, Scandinavia, they at least come to their statism and socialism more or less honestly. Not so the United States.

    It's bad enough that Democrats aren't agitated about this corruption – but then it works to their advantage. Slightly more mysterious is why so many of my friends on the right aren't incensed by it. For months, conservative commentators assured us that, when it comes to straight arrows, no arrow is straighter than FBI honcho James Comey – non-partisan, career public servant, will follow the evidence whereso'er it leads; why, "no one in law enforcement" is "more capable of navigating through a political maelstrom" and any attempts to politicize the outcome will ensure that "Comey will resign in protest, and other high-level FBI officials could follow him out the door".

    All bollocks. Bollocks on stilts. Like everything else the Clintons touch, Comey's FBI is hopelessly corrupted – and certainly more corrupt than J Edgar Hoover's FBI, at least in the sense that Hoover was independent enough not to get rolled. The revelations of what happened reveal Comey to be a hack and a squish: he offered immunity to Hillary's aides not to facilitate his investigation but to obstruct any further investigation; he allowed witnesses to Hillary's crimes to serve as her "lawyers"; and he physically destroyed the evidence – that is, the laptops. A 6' 8" gummi worm would be more of a straight arrow.

    Now come the latest revelations. Powerline's John Hinderaker writes:

    In the first page, an unidentified FBI employee says he was "pressured" to change the classification of an email to render it unclassified. This pressure came from someone within the FBI, who said he had been contacted by Undersecretary of State Patrick Kennedy, who "had asked his assistance in altering the email's classification in exchange for a 'quid pro quo.'" The quid pro quo was that, if the FBI would say the email was unclassified, the State Department would allow the FBI to "place more Agents in countries where they are presently forbidden."

    So, to add to the corrupt revenue agency and the corrupt justice department, we now have a corrupt national law enforcement agency and a corrupt foreign ministry – willing, indeed, to subordinate national security and its own diplomatic policy to the personal needs of Hillary Clinton. Needless to say, if you get your news from ABC, CBS, NBC, CNN, The Washington PostThe New York Times, etc, etc, you will be entirely unaware of all this. Which is the way they plan on operating for the next eight years…


    Victor Davis Hanson:

    In this low-bar presidential race, why do conservative establishmentarians and past foreign-policy officials feel a need to publish their support for the Democratic candidate, when their liberal counterparts feel no such urge to distance themselves from their own nominee? Is what Clinton actually did, in leaving Iraq abruptly, or lying about Benghazi, or violating federal security laws, so much less alarming than what Trump might do in shaking up NATO or "bombing the hell out of ISIS"?

    Just so. Trump is an unknown. But, to channel Donald Rumsfeld, Hillary is the most known known in the history of knowns. And what we know of her is that she's stinkingly corrupt, above the law, and able to suborn entire government agencies in the cause of her corruption. Where do you think we're gonna be after eight years of that?

    Oh, and it will be eight years. The NeverTrumpers are saying, "Don't worry. We'll get it right in 2020", just like after 2012 they said, "Don't worry. We'll get it right in 2016", and after 2008 they said, "Don't worry. We'll get it right in 2012." Next time never comes. There are no tomorrows for the Republican Party, because, unlike the GOP, the Democrats use their victories very effectively.

    Victor Davis Hanson lives on a small family farm in rural California, at the sharp end of the artificial and lawless demographic transformation of a once Golden State. With respect to my former colleagues in the New York and Washington commentariat, I don't think they have any idea of how bleak life is in many parts of this country. And I don't mean Jimmy Carter-like "malaise" – a brief blip after three decades of post-war prosperity – but bleakness as a permanent feature of life. Perhaps I'm touchy about the corruption because I'm a foreigner and I've lived in countries with clean government. Perhaps I'm sensitive to the contempt in which a put-upon middle-class is held because I've spent much of the last year in wealthy first-world countries (France, Sweden, Germany) that are on the verge of implosion over their delusional immigration policies. But the indifference from influential conservatives to both the despair and the naked corruption is deeply disturbing.

    Think of what the last eight years have wrought – Obamacare, a weaponized IRS, six-figure fines for homophobic bakeries – and then pitch America forward to 2024. Picture the most absurd scenario you can concoct – say, a federal transgender-bathroom regime. Oh, no, wait, we've already got that.

    The left is serious about power, and they don't waste time. The idea that the most personally corrupt candidate in modern American history will govern as some sort of benign moderate centrist placeholder until the wankers who thought Jeb Bush was a superstar shoo-in come up with their next inspiration is utterly preposterous.


    Login or Register to post comments

  • Fri, Oct 21, 2016 - 5:43am



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2923

    Who's scary now?


    Who's scary now?

    The Economist14 hours ago
    With so many forced buyers, trillions of dollars-worth of government bonds are trading on negative yields. “When you have so many price-insensitive buyers, the …

    Yellen & Co.'s $13 trillion stimulus boon just keeps giving

    Chicago Tribune10 hours ago
    Their $12.7 trillion in government bonds, loans and other assets — built up through decisions to combat first the financial crisis, then persistently weak inflation …

    Philippine President Duterte announces separation from US

    USA TODAY – ‎8 hours ago‎
    China has claimed virtually all of the South China Sea, a crucial waterway used for an estimated $5 trillion in annual trade. Five other countries including the Philippines have overlapping claims. President Obama has said a ruling by an international

    Login or Register to post comments

  • Fri, Oct 21, 2016 - 12:08pm


    Bankers Slave

    Status Silver Member (Offline)

    Joined: Jul 26 2012

    Posts: 513

    A good endorsement for CM and PP here.

    Login or Register to post comments

  • Fri, Oct 21, 2016 - 1:33pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2923

    BOE Corporate-Bond Buying Tops 500 Million Pounds for Third Week

    Treasury to Sell $181 Billion of Debt

    Wall Street Journal15 hours ago
    The Treasury Department will auction $181 billion in securities next week, comprising $103 billion in new debt and $78 billion in previously sold debt. Details (all …

    BOE Corporate-Bond Buying Tops 500 Million Pounds for Third Week

    Bloomberg13 hours ago
    The central bank cut interest rates to 0.25 percent and stepped up purchases of sovereign debt the same month. New-issuance of sterling corporate debt is set …

    BOJ's Kuroda Says No Immediate Need to Reduce Asset Purchases

    Bloomberg3 hours ago
    … with Kuroda most of the time during her board tenure, but was one of four dissenters when the BOJ decided in January to introduce negative interest rates.

    BOJ Kuroda: Many central banks against raising price target

    Reuters2 hours ago
    BOJ Kuroda: Many central banks against raising price target … Some U.S. academics have called for central banks to raise their inflation targets from 2 percent …

    Nigeria: Spike in Bad Bank Loans

    AllAfrica.com22 hours ago
    Bad bank debts are loans which debtors have been unable to resolve or service … with the problem of failed bank debtors and its own multi-trillion naira debt.

    New default worries over $3.2bn Venezuela oil group bond payments

    Financial Times – ‎17 hours ago‎
    Were that to happen, PDVSA, the national oil company that issued the bonds, would be in default, analysts said, tipping the company and its controller, the Venezuelan government, into one of the worst debt crises of recent decades. However, it was not

    PDVSA Default Would Spell Trouble for U.S. Refiners' Oil Supply

    Bloomberg – ‎14 hours ago‎
    A failure in exchanging the bonds could make it “difficult” for the company to make payments on its existing debt, PDVSA said. A default would not only rattle bondholders, but also PDVSA's suppliers and customers, with U.S. refineries among the first

    Houston mayor announces plan to cut pension benefits, issue bonds

    Pensions & Investments17 hours ago
    14 the adoption of a 30-year closed amortization schedule to pay off the $7.7 billion in unfunded liabilities across the pension funds — the $3.8 billion Houston …

    Dallas Police and Fire Pension Board approve plan to help failing …

    WFAA.com15 hours ago
    The Dallas Police and Fire Pension Board approved a plan Thursday asking its police and firefighters … The unfunded liabilities of the fund are about $4 billion.

    'Silver tsunami' means more seniors need care, as costs continue to …

    KING5.com10 hours ago

    A government study shows that 70 percent of Americans 65 and over will require some long-term care during their lifetime. Gut-wrenching choices often come ..


    Login or Register to post comments

Login or Register to post comments