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    Daily Digest 10/30 – Deficit Looms For L.A., How Student Debt Is Crushing the Next Generation of Americans

    by Daily Digest

    Wednesday, October 30, 2019, 7:13 AM

Economy

A deficit looming for L.A., city departments are asked to find a way to save $100 million (Saxplayer00o1)

In a report released last week, the city’s budget chief, Rich Llewellyn, outlined projected deficits of $200 million to $400 million in the coming years, if the city does nothing.

Treasury Prepares Another Debt Deluge as Fed Wades Into Market (Saxplayer00o1)

The U.S. Treasury this week releases the next stage of its strategy to cover a deficit that’s expected to surpass $1 trillion this fiscal year, as the department continues to search for new ways to attract buyers for its record debt issuance.
It needn’t agonize just yet, however. For the next few months the Federal Reserve will be scooping bills out of the market — part of its effort to calm the repo market — about as fast as the government can pour them in.

How the Student Debt Complex Is Crushing the Next Generation of Americans (Saxplayer00o1)

According to research from the Federal Reserve, indebted graduates are less likely than their debt-free peers to buy homes.
They also possess less wealth, save less for retirement, and are less satisfied with their work. Paying back student loans compromises the very middle class aspirations they are supposed to support.

When recession comes, expect central banks to rewrite the rules (Nouriel Roubini) (Saxplayer00o1)

Following this logic, in the UK, the Labour party has proposed a “People’s QE,” whereby the central bank would print money to finance direct fiscal transfers to households rather than to bankers and investors. Others, including mainstream economists such as Adair Turner, the former chairman of the UK Financial Services Authority, have called for “helicopter drops”: direct cash transfers to consumers through central-bank-financed fiscal deficits. Still others, such as former Fed vice-chair Stanley Fischer and his colleagues at BlackRock, have proposed a “standing emergency fiscal facility”, which would allow the central bank to finance large fiscal deficits in the event of a deep recession.

The Fed may have to do more to calm the stress in the short-term lending market (Saxplayer00o1)

The Fed is responding by expanding its balance sheet by more than $400 billion through the purchase of Treasury bills. It also immediately started open market operations and has since expanded them. It increased its overnight operations to $120 billion last week and is doing longer-term 14-day operations to assure the markets are liquid ahead of the end of the month and end of the year.

G.D.P. Grew at 1.9% Rate in Quarter, a New Sign of Slowdown (RS)

Several analysts emphasized that the economy remained rooted in solid ground. “If I saw cracks in the consumer sector, I would be worried, but I don’t see that yet,” said Ben Herzon, executive director of United States economics at Macroeconomic Advisers, a forecasting firm. “The economy is not slowing into a recession.”

Privacy is a collective concern (jdargis)

Just as violations of privacy can be caused individually or collectively, the consequences of the erosion of privacy are also both individual and collective. As an individual, you may suffer identity theft, public humiliation, extortion, or discrimination as a result of others knowing more about you than they should. As a society, a culture of exposure can damage our social fabric, threaten our national security, and even endanger democracy.

Let’s talk about bagging the Big Baghdadi Wolf (Don R.)

Video

16 Tons and A Briefcase (GE Christenson)

The owners paid in script which coal miners used as currency. Script had no intrinsic value and was only good at the company store. The owners increased profits by coercing miners to buy goods at higher prices. Script cost next to nothing to produce.

We use dollar bills (paper and digital) that have no intrinsic value as currency in the U.S. The dollars cost next to nothing to produce and are used because of ‘legal tender’ laws.

The fight to stop Nestlé from taking America’s water to sell in plastic bottles (tmn)

Critics characterize Nestlé as a “predatory” water company that targets struggling communities with sometimes exaggerated job promises while employing a variety of cheap strategies, like donating to local boy scouts, to win over small town officials who hold the keys to valuable springs.

Its spending on lobbying and campaign contributions at the federal and state levels totals in the millions annually, the revolving door between the company and government perpetually turns, and it maintains cozy relationships with federal officials from the Forest Service to Trump administration.

Climate Stalinism (thc0655)

Whatever its failings, twentieth-century socialism was growth-oriented and in principle devoted to expanding working-class wealth. In contrast, the green version of socialism consciously seeks to depress the average family’s prospects, since prosperity will generate more greenhouse gases. Some zealots, such as the Guardian’s George Monbiot, argue in favor of economic recession as a way to reduce carbon emissions, even if it causes people to lose their jobs and homes.

Rising sea levels pose threat to homes of 300m people – study (TS)

Researchers said the magnitude of difference from the previous Nasa study came as a shock. “These assessments show the potential of climate change to reshape cities, economies, coastlines and entire global regions within our lifetimes,” said Scott Kulp, the lead author of the study and a senior scientist at Climate Central.

Jakarta Is Crowded And Sinking, So Indonesia Is Moving Its Capital To Borneo (TS)

The new capital, which has yet to be named, would be in eastern Borneo, hundreds of miles northeast of Jakarta across the Java Sea. While the selected area is close to the cities of Balikpapan and Samarinda, the region is mostly known for its beaches and dense rainforests. Borneo’s lush jungles also form large national parks that are vital habitats for orangutans.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/29/19

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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5 Comments

  • Wed, Oct 30, 2019 - 10:32am

    #1
    glixon66

    glixon66

    Status Member (Offline)

    Joined: Aug 29 2009

    Posts: 3

    6+

    Climate Stalinism brought to by the Manhattan Institute!

    So, fyi, this Daily Digest article is from a libertarian think tank that doesn’t think too much of science or climate disruption/chaos (better words I believe than climate change).  The City Journal is published by the Manhattan Institute, which is a very pro-growth, lassiez-faire capitalist think tank; two words that, to me, are very Orwellian at their core, meaning that someone (on the left or right) should be telling us what to think.  In any case, the Manhattan Institute’s website can be found here:

    https://www.manhattan-institute.org/

    I find it a tad perplexing that PP would allow such blatant anti-science, climate change denying tripe to make its way on to the DD.  But I guess Chris and Co. are trying to encourage dialogue and the calling out of BS when we see it, so that is good.

    I agree that the GND is just another capitalist boondoogle (for salivating elites) and doesn’t address the core issue behind the symptom of climate disruption which, to me, is industrial civilization and the economic system that supports it, namely Capitalism.  I also agree that Socialism as it has been practiced throughout most of the last 200 hundred years is still at its core fundamentally flawed as it continues to push a pervasive way of life (hint: industrial civilization) that has been and continues to destroy the planet and all life on it (Sixth Great Extinction anyone?).

    So, no arguments from me there.  Where I have an issue with the Manhattan Institute’s editorial opinion is their salacious and Breitbart-esque way of dismissing the science behind climate chaos and making it out to be a giant conspiracy on the part of scientists.  But, then again, that’s very typical of pro-growth, pro-capitalism, libertarian outfits like the Manhattan Institute.  So, here is me calling Bullshit!

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  • Wed, Oct 30, 2019 - 10:50am

    #2
    glixon66

    glixon66

    Status Member (Offline)

    Joined: Aug 29 2009

    Posts: 3

    2+

    More info on the Manhattan Insitute

    So, doing our due diligence on the outfits behind articles/opinions in the digital age, while exhausting at times, is even more crucial.  Here’s the Wikipedia page for the Manhattan Institute:

    https://en.wikipedia.org/wiki/Manhattan_Institute_for_Policy_Research

    I find it fascinating that it was started by William Casey, director of the CIA during the Reagan years.

    Enjoy.

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  • Wed, Oct 30, 2019 - 3:03pm

    #3
    Nate

    Nate

    Status Silver Member (Offline)

    Joined: May 05 2009

    Posts: 335

    3+

    Kunstler podcast

    Renowned author and journalist James Howard Kunstler thinks what has been happening for the last few years with the mainstream media’s coverage of President Trump borders on criminal activity. Kunstler explains, “What I am waiting for is if and when indictments come down from Mr. Barr and Mr. Durham, I am wondering whether the editors and publishers of the Washington Post and New York Times and the producers at CNN and MSNBC are going to be named as unindicted co-conspirators in this effort to gaslight the country and really stage a coup to remove the President and to nullify the 2016 election. I say this as someone who is not necessarily a Trump supporter. I didn’t vote for the guy. I am not a cheerleader for the guy, but basically I think the behavior of his antagonists has been much worse and much more dangerous for the nation and the American project as a long term matter. I really need to see some action to hold people responsible for the acts they have committed. . . . I am not an attorney, and I have never worked for the Department of Justice, but it seems to me that by naming the publishers and editors of these companies as unindicted co-conspirators that allows you to avoid the appearance of trying to shut down the press because you are not going to put them in jail, but you are going  to put them in disrepute. That may prompt their boards of directors to fire a few people and maybe change the way they do business at these places.”

    Kunstler says things look unlike anything we have seen in the past because we are approaching a day of reckoning in our debt based monetary system. Kunstler says, “Yeah, I think you can see it happening now. What seems to be resolving is some movement to some sort of a crack up of the banking system. What we are really stuck in is a situation where we’ve got too many obligations we cannot meet and too many debts that will never be repaid. We have been trying to run the country for the past 15 or 20 years on debt because we can no longer provide the kind of industrial growth that we have been used to . . . and have this massive consumer spending industry. So, we have been borrowing from the future to pay our bills today, and we are running out of our ability to borrow more. . . . I think we are going to lose the ability to support a lot of activities that we have been doing. It starts with energy and its relationship to banking and our ability to generate the kind of growth you need to keep rolling over debt. The reason debt will never be paid and obligations will never be met is we are not generating that sort of growth. Were just generating frauds and swindles. Frauds and swindles are fun while you are doing them and they seem to produce a lot of paper profits, but after a while, they prove to be false. Then you have to do something else. A great deal about our economy and our way of life is false and is going to fail. Then we are going to have to make other arrangements for daily life. . . .It will probably mean we will be organizing our stuff at much more of a local scale.”

    On the 2020 Presidential Election, Kunstler predicts, “When all is said and done, I am not convinced there is enough there to convict President Trump of anything. At the same time, there is probably going to be a lot of legal actions brought against the people who started this coup against him, and that’s going to be extremely disturbing to the Left. I think one of the possibilities is we may not have a 2020 election. In some way or another, the country may be so disorderly that we can’t hold an election. There may be so much strife that we cannot handle the legal questions around holding the election, and it may be suspended. I don’t know what that means, but I am very impressed of the disorder that we are already in. It’s more of a kind of mental disorder between the parties, but it could turn into a lot of kinetic disorder on the ground and a lot of institutional failure.”

    MSM Co-conspirators with Deep State Treason – James Howard Kunstler

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  • Wed, Oct 30, 2019 - 3:47pm

    #4
    ezlxq1949

    ezlxq1949

    Status Bronze Member (Offline)

    Joined: Apr 29 2009

    Posts: 258

    3+

    Manhattan Institute again

    For me, lots of red flags right at the start: “The Left”, “fixation on climate change” “scientism.”

    Let’s try it the other way around: “The Right”, “fixation on endless growth”, “denialism.”

    Their comments about the not-so-recent Australian federal elections don’t stand up to scrutiny. Plenty of opportunity was available for the “blue-collar areas” but the campaign was a scare campaign characterised by misinformation, outright lies and the Murdoch Press. The Opposition bungled it badly.

    Now the incumbent perpetual-growth government imagines it is dealing with our crippling drought by building dams and more dams, even though there’s no rain to fill them. At the same time they pursue land-use policies which drive rain away. But they’ve cloaked it in scientism, telling us that their policies work because they’ve always worked, and there is no alternative. Never mind the collateral damage, the rural people and towns being driven off the land, their livelihoods destroyed, their futures stolen.

    Now that’s Climate Stalinism!

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  • Wed, Oct 30, 2019 - 4:10pm

    #5
    ezlxq1949

    ezlxq1949

    Status Bronze Member (Offline)

    Joined: Apr 29 2009

    Posts: 258

    First Dog on the Moon: waste of water

    One of my favourite commentators.

    “All that perfectly good water dumped into the ocean like some sort of enormous NATURE TOILET!”

     

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