The present day value of all these items? Nearly USD 97K! No doubt there is a vast discrepancy between the price paid relative to the value of the asset acquired: a single Viceroy tulip. Unfortunately the MOB rivals the price-to-value gap of this example but the consequences — if manifested — given the scale, would destroy the global economy. How did this — or any — financial avalanche risk germinate and mature?
Collapsing Global Trade Growth Foreshadows Crash (Tiffany D.)
Global central banks have used every scrap of available monetary power to help the global economy take flight … yet nothing has gone quite according to plan.
The economy is now in the process of crashing back to earth, and central banks have no control and no buffer to even slow the situation down.
Yes, foreigners hold trillions in U.S. debt, and if they were to dump all their debt, borrowing cost in the U.S. might rise. Except it hasn’t happened: in our analysis, as foreigners have been selling U.S. Treasuries, the dollar has neither plunged, nor have U.S. borrowing costs skyrocketed. Why is that? As we will discuss below, we believe, in the short-term, other market forces have been even stronger.
That said, the recent decision by Congress to override President Obama’s veto to allow private citizens to sue Saudi Arabia should get our attention. Saudi Arabia has threatened to sell its U.S. assets in case this law passes, as it doesn’t want a judge to freeze their assets. As this chart below shows, this may not be an empty threat…
With neither major party able to secure a majority of seats in the national legislature and the two parties unable to agree on a coalition government, for the last 10 months Spain has had a do-nothing caretaker government for the first time in its history.
While basic government services continue, no new legislation is being proposed, foreign policy is stuck in place, and many infrastructure and other government projects are frozen.
The Cobalt Pipeline (jdargis)
The world’s soaring demand for cobalt is at times met by workers, including children, who labor in harsh and dangerous conditions. An estimated 100,000 cobalt miners in Congo use hand tools to dig hundreds of feet underground with little oversight and few safety measures, according to workers, government officials and evidence found by The Washington Post during visits to remote mines. Deaths and injuries are common. And the mining activity exposes local communities to levels of toxic metals that appear to be linked to ailments that include breathing problems and birth defects, health officials say.
If they succeed, from next year to 2030 they will have added a cumulative total of at least 830 million metric tons of carbon dioxide into the air, according to calculations by the Partnership for Public Integrity, an energy policy analysis group, based on a model used by the government’s Energy Information Administration to assess the impact of the Clean Power Plan.
Is The Oil Price War Finally Over? (Josh O.)
It’s more likely, however, a reluctant acknowledgement of a very simple truth – Saudi Arabia’s oil policy isn’t working. The Wall Street Journal says people ‘familiar with this matter’ (sounds deliciously creepy doesn’t it?) reported that the Kingdom’s energy minster Khalid al-Falih’s attention was drawn to an OPEC prediction that a global glut was likely to remain throughout 2017. Faced with the consequences of its policy to date – introducing unpopular domestic austerity measures and a decision by the U.S. Senate to allow 9/11 victims to sue the Kingdom for its potential involvement which saw Saudi’s currency plunge to its lowest level in four months – perhaps it decided to lick its wounds and live to fight another day.
Water year 2016, which ran from Oct. 1 to Sept. 30, was officially categorized as “dry” statewide, continuing California’s five-year drought. The onset of the new water year has brought attention to the record reliance on groundwater by farmers and water wars between corporations and residents.
Gold & Silver
Provided daily by the Peak Prosperity Gold & Silver Group
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