• Daily Digest
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    Daily Digest 10/27 – Housing Bubble Fears Return, World Wildlife ‘Falls By 58% in 40 Years’

    by DailyDigest

    Thursday, October 27, 2016, 3:10 PM


Economic Breadth Is Significantly Deteriorating in the U.S. (Adam)

Here’s a look at how this data has trended over the past 36 years compared to the S&P 500. As you can see, states showing positive growth tend to rollover prior to economic recessions (red bars) with corresponding declines in the S&P 500. The latest data puts us near the weakest levels during this entire economic cycle and matches prior market tops.

Housing bubble fears have returned (Adam)

Whirlpool CEO Jeff Fettig called the environment “challenging,” while chief operating officer Marc Bitzer added that there was “industry softness” in North America.

Sherwin-Williams noted in its report that sales of paint to consumers and commercial customers fell from a year ago as well.

Executive Order — Coordinating Efforts to Prepare the Nation for Space Weather Events (Adam)

It is the policy of the United States to prepare for space weather events to minimize the extent of economic loss and human hardship. The Federal Government must have (1) the capability to predict and detect a space weather event, (2) the plans and programs necessary to alert the public and private sectors to enable mitigating actions for an impending space weather event, (3) the protection and mitigation plans, protocols, and standards required to reduce risks to critical infrastructure prior to and during a credible threat, and (4) the ability to respond to and recover from the effects of space weather. Executive departments and agencies (agencies) must coordinate their efforts to prepare for the effects of space weather events.

Email Security: Be Smarter Than A Politician (Tiffany D.)

The Obama administration blames Russia for these hacks, which suits Hillary just fine — she can deflect all questions by focusing on the alleged threat to our national security and electoral sovereignty. But if a Russian did do the hack, he might have been a 10-year-old kid … because the technique used was the simplest, oldest trick in the book.

USA Actually Bankrupt Now: Laurence Kotlikoff (pinecarr)

The vast majority of the population realizes neither Clinton nor Trump are qualified. Just on the economic front, these folks have no idea how fiscally sick our country is. The fact that we have off-the-book liabilities that make our true debt roughly 15 times larger than the amount the government is actually reporting, so, our true debt is about $206 trillion. The debt the Congressional Budget Office is telling us about is about $13.5 trillion. . . . We’re short $206 trillion. The country is 53% underfinanced. So, the country is actually bankrupt right this minute. It’s not $206 trillion in the future that we owe, it’s $206 trillion today. It’s our credit card bill, and we’re broke.”

The USA Is An Oligarchy, Study Concludes (Arthur Robey)

Researchers concluded that US government policies rarely align with the the preferences of the majority of Americans, but do favour special interests and lobbying organisations: “When a majority of citizens disagrees with economic elites and/or with organised interests, they generally lose. Moreover, because of the strong status quo bias built into the US political system, even when fairly large majorities of Americans favour policy change, they generally do not get it.”

Pre-crime returns to America with new Airbnb laws (Aaron M.)

Violations carry a penalty of up to $7,500, dramatically higher than New York’s penalty for reckless driving (up to $300) and even higher than the fine for driving while intoxicated (between $500 and $5,000).

I’m sure we can all sleep more soundly tonight knowing that the courageous politicians of New York are keeping the streets safe from nefarious criminal terrorists trying to earn a few extra bucks from their own private properties.

Chinese Yuan And A Global Tipping Point (Alex)

A depreciating yuan equals a stronger dollar. A stronger dollar increases downside pressure on a depreciating yuan. This is called a feedback loop. Once the loop picks up momentum, it will rip until it has completely exhausted itself.

Is Nevada Sitting On One Of The Biggest Undiscovered Oil Fields? (Josh O.)

Organic rich Great Basin Mississippian Antler foreland basin oil shales are measured in thousands of feet in contrast to the age-equivalent Barnett shale that is measured in only hundreds of feet in Texas. Analyses of shale samples combined with the shale thickness indicate that the shales potentially have enough organic content to literally generate trillions of barrels of oil.

The Big Oil Comeback (Tiffany D.)

India — with a population of 1.3 billion and a gross domestic product (GDP) growth trend that’s now rising at a faster pace than China (7.5% versus 6.9% in 2015) — is still in the early stages of a massive love affair with crude. And considering that it needs to import about 80% of what it consumes, it’s a love affair that’s growing literally by the month.

Caterpillar Stung by Global Economic Funk (Adam)

Caterpillar announced last week that Oberhelman will step down at the end of the year and be replaced by Jim Umpleby, an executive who has worked at the company for more than 30 years. Oberhelman will remain chairman through March and then retire.

The company’s stock is up about 40 percent since Oberhelman was named CEO in 2010, but Caterpillar has posted falling revenue for the past three years. Oberhelman said Tuesday on a conference call with investors and analysts that he decided to leave on his own, citing his age.

World wildlife ‘falls by 58% in 40 years’ (Adam)

Dr Mike Barrett. head of science and policy at WWF, said: “It’s pretty clear under ‘business as usual’ we will see continued declines in these wildlife populations. But I think now we’ve reached a point where there isn’t really any excuse to let this carry on.

“We know what the causes are and we know the scale of the impact that humans are having on nature and on wildlife populations – it really is now down to us to act.”

Gold & Silver

Click to read the PM Daily Market Commentary: 10/26/16

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to dd@peakprosperity.com. 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 27, 2016 - 3:56pm



    Status Bronze Member (Offline)

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    Posts: 252

    Deutsche Bank's Demand Deposits Tumble By 13% In Q3

    black swan becoming slightly less black every week:


    Deutsche Bank's Demand Deposits Tumble By 13% In Q3


    "Recession Risk Is Rising" Fast, Deutsche Bank Warns "Outlook Remains Fragile"


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  • Fri, Oct 28, 2016 - 4:17am



    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2221

    The Systems are Failing

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  • Fri, Oct 28, 2016 - 2:58pm



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    Joined: Apr 13 2008

    Posts: 1085

    The beginning of forced US treasuries investment

    Finance and Liberty has an interview with Will Lehr on asset confiscation.  Of particular interest to me is a discussion he has with Elijah Johnson, starting at around 6:16 minutes, where they talk about rule changes in money market funds requiring a shift (i.e., bail-in/confiscation) of savers' money from Money Market funds (in IRAs) into new short-term treasury funds in the IRA . Lehr discusses how there's around 4T in MM funds (in IRAs, I believe), and so it is an attractive target.

    From Lehr's article in March 2015 @ https://www.perpetualassets.com/news/2015/03/20/money-market-changes-and-consequences-begin-to-unfold/

    The legal architecture is being created to allow a complete bail in, and the change in legal precedent has spurred some interesting market reactions. Fidelity’s announcement is perhaps the most fitting. The company announced just last week that it will be converting many of its prime money market funds into new ones that only invest in US government securities. This is the beginning of forced US treasuries investment. [bold mine]

    Lehr has another, more recent, article on the topic @ https://www.perpetualassets.com/news/2016/09/06/the-first-steps-of-ira-confiscation-have-arrived/

    This seems like pretty big news to me, and its the first time I recall hearing about it.  Are others here already aware of this?  Thoughts?  


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  • Fri, Oct 28, 2016 - 3:29pm



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    Joined: Jul 30 2009

    Posts: 2922

    More central bank pr0n

    BOJ to keep -0.1 percent interest rate, 10-year JGB yield target …

    Reuters7 hours ago
    TOKYO The Bank of Japan is expected to keep its negative interest rates and 10-year government bond yield target unchanged next week after overhauling its …

    Japanese Insurers Bone Up on Investing in Foreign Corporate Bonds

    Wall Street Journal3 hours ago
    Sumitomo Life said it boosted its holdings of foreign bonds by ¥1 trillion in its … billion valuation drop in its foreign-debt portfolio owing to a higher yen in the …

    Japanese core inflation hits 3-year low

    Financial Times – ‎11 hours ago‎
    However, Japanese households are not spending their increased income,” said Bill Adams, senior international economist at PNC Financial. ”The Bank of Japan will see vindication for its monetary stimulus in the latest data,” he said, arguing that, in

    ECB Stimulus Champions Signal QE to Endure as Economy Heals

    Bloomberg2 hours ago
    European Central Bank officials signaled that they support extending asset buying beyond the earliest end-date of March, arguing that returning to a healthy …

    ECB will provide stimulus until sustained inflation rebound
    Reuters3 hours ago

    China central bank set yuan's fixing rate at the weakest level in six years

    South China Morning Post – ‎11 hours ago‎
    The People's Bank of China has set the mid-price of the yuan at 6.7858 on Friday morning, the weakest level in more than six years, extending the currency's depreciating trend since early October. The fixing of the rate was in line with the market's …

    Earnings at China's Biggest Banks Barely Rise Amid Stagnant …

    Wall Street JournalOct 27, 2016

    … listing, China's biggest banks are still barely profitable, beset by asset bubbles and the … Such debt-to-equity swaps—essentially three-to-five-year refinancing ..

    As China tackles corporate debt, risks spread wider

    Reuters – ‎7 hours ago‎
    Beijing earlier this month unveiled much-awaited guidelines for a plan to lower the country's $18 trillion corporate debt – now at 169 percent of domestic output – by allowing stressed companies to swap part of their debt for equity investment. So far

    Brazil central government deficit widens more than expected

    Reuters19 hours ago
    The central government's primary deficit, which includes federal ministries, social security and the central bank, rose to 25.303 billion reais ($8.027 billion) in …

    Treasury to Sell $78 Billion in Debt

    Wall Street Journal21 hours ago
    The Treasury Department will auction $78 billion in securities next week, comprising $36 billion in new debt and $42 billion in previously sold debt. Details (all …

    BOE Buys About 2 Billion Pounds of Company Debt in Brexit Buffer

    BloombergQuint22 hours ago
    (Bloomberg) — The Bank of England bought almost 2 billion pounds ($2.4 billion) of … The effect of BOE bond-buying on debt markets has been countered by a …

    Saudi Central Bank Adds More Tools to Ease Cash Crunch

    Bloomberg – ‎18 hours ago‎
    The Saudi Arabian Monetary Agency, as the central bank is known, said it's introducing 90-day repurchase agreements and will reduce the weekly debt issuance to 3 billion riyals ($800 million) from 9 billion riyals. The decisions, which take effect from

    Crisis at Venezuela's PDVSA deepens as Caribbean debts pile up

    Reuters9 hours ago

    The company saw operating cash flow plummet by 63 percent, to $2.1 billion, in the first quarter compared to the same period a year earlier, according to its most .

    Venezuelan Leader Nicolás Maduro Orders Big Boost to Minimum Wage

    Wall Street Journal – ‎20 hours ago‎
    Although the government stopped publishing inflation figures almost two years ago, Mr. Maduro's own 2017 budget implies a 477% annual rise in prices. The International Monetary Fund forecasts Venezuelan inflation to accelerate to 1,600% next year.

    Platinum Bulls Look Past Price Slump to Bet on Supply Crunch

    Bloomberg7 hours ago

    “A supply cliff is approaching so we see substantial deficits in the years ahead … Platinum miners make up 17 percent of Biccard's 5.8 billion rand Investec Value ..

    To BNP, Mexico Is Too Optimistic About Growth as Debt Balloons

    Bloomberg5 hours ago
    … higher interest rates, and fiscal disappointment is not good for the debt dynamics and could increase chances of a rating downgrade,” said BNP's Carvalho.

    Jerry Brown touted his pension reforms as a game-changer. But they …

    Los Angeles Times2 hours ago

    Jerry Brown has described pension reform as a “moral obligation.” Above … The savings are a fraction of the two plans' unfunded liability — the gap between the .

    Mississippi pension system battered from all angles

    Watchdog.org2 hours ago

    According to the latest annual actuarial report, PERS — which serves most state, county and municipal employees — had its unfunded liability increase to more ..

    Report: Troubled MBTA pension fund struggling

    Boston Herald21 hours ago
    The MBTA's troubled $1.5 billion pension fund is facing an even bleaker financial picture, … The fund's unfunded liability had most recently stood at $942 million.

    California Cities Seek Record Tax Hikes as Pension Costs Mount

    Newsmax21 hours ago
    From Yreka, near the Oregon border, to El Centro, just north of Mexico, more than 80 local governments are asking voters next month to approve sales-tax …

    Soaring costs prompt Winnipeg to consider changes to police …

    Benefits Canada1 hour ago
    The City of Winnipeg will soon approach police unions about amending their defined benefit pension plan as it struggles to keep it afloat, according to the CBC.

    Dallas must regain control of police and fire pensions, halt run on …

    Dallas News18 hours ago
    "Rising pension costs will affect the city's ability to recruit and retain workers and … McGee recently described the Dallas police and fire pension fund as a "big, …

    Area small business owners bracing for increasing healthcare costs

    WDAZ9 hours ago
    While premium costs on one side of the river are set to rise, on the other side … For people purchasing healthcare on the individual marketplace, premium rates …

    As Obamacare enrollment nears, some Californians see big hikes in …

    Los Angeles Times2 hours ago
    Schwartz, 56, said she worries that her new monthly cost of $254 will only … known as the Affordable Care Act. They point out that healthcare costs were soaring …

    Out-of-network costs to soar for members of Maine health insurance …

    Press Herald7 hours ago
    Lewis has said CHO's customers accessed significantly more health care in 2015 than during the cooperative's first year, driving up costs. As with most U.S. …


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  • Fri, Oct 28, 2016 - 5:40pm



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    Joined: Apr 27 2010

    Posts: 1422

    Zombies vote in Philly


    There are plenty of places where The Voting Dead is a thing, not to mention "Vote Early and Vote Often." But we invented that in Philly, and we just shrug!  No one even gets upset any more.

    We're going to make Hitlery an honorary Philadelphian!


    On September 5, 2006, Eli Chomsky was an editor and staff writer for the Jewish Press, and Hillary Clinton was running for a shoo-in re-election as a U.S. senator. Her trip making the rounds of editorial boards brought her to Brooklyn to meet the editorial board of the Jewish Press.

    The tape was never released and has only been heard by the small handful of Jewish Press staffers in the room. According to Chomsky, his old-school audiocassette is the only existent copy and no one has heard it since 2006, until today when he played it for the Observer.

    The tape is 45 minutes and contains much that is no longer relevant, such as analysis of the re-election battle that Sen. Joe Lieberman was then facing in Connecticut. But a seemingly throwaway remark about elections in areas controlled by the Palestinian Authority has taken on new relevance amid persistent accusations in the presidential campaign by Clinton’s Republican opponent Donald Trump that the current electionis “rigged.”

    Speaking to the Jewish Press about the January 25, 2006, election for the second Palestinian Legislative Council (the legislature of the Palestinian National Authority), Clinton weighed in about the result, which was a resounding victory for Hamas (74 seats) over the U.S.-preferred Fatah (45 seats).

    “I do not think we should have pushed for an election in the Palestinian territories. I think that was a big mistake,” said Sen. Clinton. “And if we were going to push for an election, then we should have made sure that we did something to determine who was going to win.”

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  • Fri, Oct 28, 2016 - 5:43pm



    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2221

    WWI veterans overwhelmingly support Hillary Clinton

    Early voting data shows World War I veterans overwhelmingly support Hillary Clinton (Duffleblog)

    [quote]WASHINGTON, D.C. — With over seven million votes cast so far in the U.S. presidential election, early voting data is pointing to a tight race in most key battleground states.

    But there is one battleground upon which the Donald Trump campaign appears to be headed towards utter defeat: The fight for votes from World War I veterans.

    With at least 25,000 World War I veterans casting their votes thus far, the party affiliation breakdown of submitted ballots is suggesting a hard break towards the Clinton camp among veterans who fought in the Great War from 1914-1918, sources say.

    Some 98 percent of ballots cast from the demographic have been from veterans who are registered Democrats.

    “This is tremendous news for the Hillary Clinton campaign and for the Democratic Party,” said Donna Brazile, interim chairperson of the Democratic National Committee. “We knew that if we could get a strong turnout among the doughboy demographic, we could win this election.”

    Other Democratic Party operatives have been coordinating a strong grassroots campaign to register veterans to vote and ensure their ballots are submitted ahead of voting deadlines.

    “I’ve been knocking on doors, searching public records to track people down, all sorts of things to identify vets and ensure their ballots make it to a mailbox,” said Andrew Spieles, a college student at James Madison University who is associated with Young Virginia Democrats. “I’m proud to say that I’ve personally registered sixteen World War I vets to vote in the last two weeks, and all of them have indicated their intention to vote for Hillary Clinton.”

    Democratic lawmakers expressed their satisfaction with the success of the grassroots operations.[/quote]

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