• Daily Digest

    Daily Digest 11/21 – Understanding the Repo Crisis, Fracking Under Fire In California

    by Daily Digest

    Thursday, November 21, 2019, 8:04 AM


Wall Street is getting very bullish as stocks hit records. Here’s why that’s worrisome (Thomas R.)

“Everybody seems to think that FOMO [Fear of Missing Out] will cause institutional players to buy, buy, buy into the end of the year,” Matt Maley, chief market strategist at Miller Tabak, told me. “Everyone is saying that the only thing that can throw a wrench in the works is a breakdown in the Phase One [China] negotiations and nobody thinks that will happen (because both sides need some sort of smaller deal),” he wrote to me.

Dalio: We Are Heading Into a ‘New World Order’ (Thomas R.)

Ray Dalio, the billionaire founder of investment management firm Bridgewater Associates, talks about the global economy, financial markets, and policies. He speaks at Bloomberg’s New Economy Forum in Beijing.

Boomers Are Thriving on an ‘Unprecedented’ $9 Trillion Inheritance (Thomas R.)

Age inequality is most dramatic when comparing the oldest and youngest adults. In 1989, the median household age 65 to 75 held almost eight times more wealth than families headed by 25- to 35-year-olds. By 2016, according to an analysis by the St. Louis Fed, the median baby boomer had close to 13 times more wealth than the typical millennial.

Trump’s Pardons for Servicemen Raise Fears That Laws of War Are History (tmn)

While all three men were accused of war crimes, the details of their cases raised disparate concerns for military order.

Lieutenant Lorance was convicted at trial in 2013 for ordering the shooting of a group of civilians in Afghanistan, an order he then tried to cover up. He was given a full pardon.

Trump wants South Korea to pay more for defense. He shouldn’t stop there (Thomas R.)

Each one of these foreign bases costs the taxpayers not just in maintenance bills, but in payments we often must make to those foreign countries to use their land or coastlines. There are also the costs of maintaining diplomatic relationships with those nations to make sure they don’t suddenly kick our troops and bases out. At last count, the cost of maintaining those bases is $156 billion per year.

Two jail guards for Jeffrey Epstein charged with cover-up in his suicide (Thomas R.)

In an afternoon hearing, Noel and Thomas pleaded not guilty before U.S. Magistrate Judge Sarah Netburn to charges they falsely certified to having conducted inmate counts during Epstein’s final hours, and to a conspiracy charge. They are each expected to be released on bail.

“It is our hope that we will be able to reach a reasonable agreement in this case,” Noel’s lawyer, Jason Foy, told reporters outside the courthouse, but added that his client was prepared to defend against the charges.

Understanding the Repo Crisis (thc0655)

The crisis in liquidity is that American bankers will NOT lend to Europe. Because of the European Banking Crisis, banks just do not trust banks. Nobody knows who will be standing after a failure at Deutsche Bank. The Fed has had to step in to be the neutral lender NOT because of a crisis in the USA, but because of the collapse in confidence in Europe’s banking system as a whole. Stay alert – this is just getting started.

Competition in retail has become a zero-sum game: Morning Brief (Thomas R.)

The results also come ahead of expected results out Thursday from Nordstrom (JWN), Macy’s (M), and the Gap; same-store sales are forecast to fall 1%, 0.3%, and 3.5% at each company, respectively. (Shares of Nordstrom and The Gap were also caught up in the apparel selloff on Wednesday, dropping 4% and 3% ahead of each company’s quarterly report.)

‘Polite’ robots and underground tunnels: JD’s vision for future smart cities (Thomas R.)

British start-up Magway recently announced that it is planning to build narrow underground tunnels and tracks to run beside U.K. freeways and beneath cities carrying parcels and groceries. The company hopes to build a network of pipes, less than 1 meter wide, to transport items in pods along a track powered by a magnetic motor.

Gold Stocks Now? (GE Christenson)

Compared to the S&P500 Index, the GSCI (commodity index) is at five-decade lows. The ratio has not been this low since 1971. After 1971, gold rose from $40 to over $800 by January 1980. A similar factor of 20 rise in the price of gold would move it to $30,000 – a crazy number.

China bought most of Greece’s main port and now it wants to make it the biggest in Europe (Thomas R.)

Since the Greek financial crisis, Beijing and Athens have deepened their links. Greece announced in August last year that it was formally joining China’s Belt and Road Initiative (BRI) — the ambitious investment plan of Xi that connects Asia, Africa and Europe.

Fracking Under Fire In California (Michael S.)

Interestingly, however, Gov. Newsom said at the time that he did not think that he had the authority to place a moratorium on fracking, something that environmental groups have long demanded. The latest actions only affect permits for new projects. According to the AP, there are 263 pending permits on the desk of regulators, but none of them have been approved since July when the top official was removed.

Re-greening: can Louisville plant its way out of a heat emergency? (jdargis)

Trees provide shade while also lowering the temperature of their surroundings through evaporative cooling. Without action, it is feared the tree canopy will continue to decline as trees fall due to storms, pests and age – a scenario that could see the city’s rapid warming continue, alongside a number of other deleterious effects.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/20/19

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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  • Thu, Nov 21, 2019 - 11:52am



    Status: Silver Member

    Joined: May 05 2009

    Posts: 418


    Kunstler is on a roll

    Anyone who doubts that the Attorney General is dead serious about cleaning up the goddamned mess of sedition spawned by the Democratic Party, its agents in the permanent Washington bureaucracy, and its public relations arm in the news media, might invest a little time and attention in William Barr’s speech to the Federalist Society Friday evening. (Text of speech here and video here.)Mr. Barr declared unambiguously and in plain English that “in waging a scorched earth, no-holds-barred war of ‘Resistance’ against this Administration, it is the Left that is engaged in the systematic shredding of norms and the undermining of the rule of law.” Is any part of that unclear? The confounded might take in this more detailed lesson in recent history from the speech:

    Immediately after President Trump won election, opponents inaugurated what they called ‘the Resistance,’ and they rallied around an explicit strategy of using every tool and maneuver available to sabotage the functioning of his administration.  Now, ‘resistance’ is the language used to describe insurgency against rule imposed by an occupying military power. It obviously connotes that the government is not legitimate. This is a very dangerous — indeed incendiary — notion to import into the politics of a democratic republic.  What it means is that, instead of viewing themselves as the “loyal opposition,” as opposing parties have done in the past, they essentially see themselves as engaged in a war to cripple, by any means necessary, a duly elected government.”

    And anyone who takes in the nauseating spectacle of Congressman Adam Schiff’s House Intel Committee impeachment process can see that shredding of norms on full shameless display, where the attempted defense of nakedly absurd charges against the president is thwarted by a chicane of deceitful rules outside any concept of due process, concocted by Mr. Schiff and his task force of Lawfare hustlers — no right to call witnesses, no right of cross-examination, and no right to argue that set of rules cribbed from the Stalin show trials by way of the Spanish Inquisition.

    They’re pouring it on this week ahead of a post-Thanksgiving cold water deluge of bad news that will detail charges against the progenitors of RussiaGate. The roll-call may be a long one, including many actors whose turpitudes have been publicly and richly documented for many months — Messers, Brennan, Clapper, Comey, Rosenstein, McCabe, Strzok, Halper, Ms. Page, et. al — and, if real justice is on order, not a few figures lurking in the Deep State deep background — John Carlin, Bill Priestap, Dana Boente, Michael Gaeta, Sally Yates, Loretta Lynch, Susan Rice, Samantha Power, and perhaps even the archangel Barack Obama, just in time for Christmas, too. Robert Mueller and Andrew Weissmann deserve to be included for what amounted to a blatant, arrantly mendacious, malicious prosecution, knowing that they had no case and proceeding anyway for two whole years.

    I hope the roundup will extend to the very latest ploys leading to RussiaGate’s successor subterfuge, UkraineGate, namely the exploits of “whistleblower” Eric Ciaramella, his handlers and enablers in Mr. Schiff’s office, and the actions of his accomplice, Michael Atkinson, the current Intelligence Community Inspector General, with obvious conflicts of interests as a major player in the previous RussiaGate dodge — he was legal counsel to Assistant Attorney General John Carlin, who headed the Department of Justice’s National Security Division at the birth of the FBI’s “Crossfire Hurricane” gambit, and before that he was Robert Mueller’s chief of staff at the FBI. Anything to see there, ya think? The “whistleblower” himself was, in fact, a CIA spy in the White House. You may recall that the CIA is prohibited from spying on Americans in their own country, and doing that in the White House is arguably the essence and height of lawless sedition.

    Obviously, Rep. Adam Schiff will at some point be called to face the atonal music he composed (with a little help from Karlheinz Stockhausen — give a listen) in a court of law, where different rules apply than the ones now on display in his committee. He has a lot to answer for in his campaign to blow smoke up America’s ass for three years running, with deleterious effects on the public interest generally and on the honor and dignity of the legislature in particular.

    The American public also deserves to know exactly who has been leaking transcripts from Mr. Schiff’s star chamber depositions to the news media — most recently last Friday when the supposedly secret testimony of diplomat David Holmes, lately of the US embassy in Kiev, Ukraine, found its way to CBS News reporter Margaret Brennan. A logical presumption would be that the leaker is someone on Mr. Schiff’s staff. Who else might have access to it? (Well, possibly the NSA and thereby the CIA.) It shouldn’t be too difficult to find out. Perhaps one of the minority members of the House Intel Committee might put the question to Mr. Schiff when the hearings re-open on Wednesday — if Mr. Schiff will allow the question to even be entertained.

    Entertaining Questions

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  • Fri, Nov 22, 2019 - 5:36am



    Status: Bronze Member

    Joined: Feb 06 2013

    Posts: 612


    Political sideshow

    Yeah, except as near as I can tell neither party is seriously addressing the incoming crises of ecological collapse, environmental change, energy depletion, deficit-spending, or bringing to heel the corporate influence pervading our supposed democracy.


    So I don't give two fucks what Barr says he's going to do, and I'm even less interested in "scorched-earth warfare" between the two parties. It doesn't matter whether the Blue or Red team wins if society collapses due to any of the Three E's, which it's in the process of doing. All this political wrangling is a side-show.


    Your results may vary, as this is my opinion, not gospel truth.


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  • Fri, Nov 22, 2019 - 8:10am



    Status: Bronze Member

    Joined: Dec 10 2013

    Posts: 92

    Chaos theory

    Chaos theory

    In a chaotic system, the flap of a butterfly’s wings in Brazil takes its share in setting off a tornado in Texas, due to a multitude of factors and their combinations.[2] The result is an apparently unpredictable system in which agents, no longer able to predict what might happen, react haphazardly, hence aggravating the oscillations of the whole.


    Figure 1- “Sensitivity to initial conditions” means that laws no longer help predictions because a very small change in initial values leads to a very different future – Source: Matter and revolution, 2010

    From the end of the 1990s, under the influence of globalisation (lifting of borders) and the Internet (connecting all parts of the system to one another), the world became chaotic: the CIA’s secrete operations in Afghanistan turning into a populist wave in Europe via the radicalisation of Islam, the bankruptcy of an American bank in 2008 causing a political crisis in Greece via a side effect on the European currency, the creation of Facebook leading to a huge misinformation system that contributed to the extremism of population groups, the dumping of plastic in Asian rivers leading to demonstrations in Europe… and so on.

    In 10 years, the immense shocks thus generated have broken the previous superstructure (supranational and international), leading the unitary components (cities, regions, states) to try to rebuild the dykes that used to protect them before the globalisation stage (protectionism, nationalism). However, in 2019, as we anticipated in our January “ups & downs”, nationalist solutions reached their limits as no country is able to consider it either desirable or possible to isolate too much (Bolsonaro’s Brazil is not immune to international scrutiny concerning the Amazon nor to the need for Chinese funding, Johnson’s United Kingdom encounters huge difficulties in leaving the EU, etc.). The time is therefore ripe for a merger between unavoidable openness to the world and protection of the basic units (national entities) – a merger that we called “pro-trade protectionism” in March 2018,[3] but which, more than an economic model, will provide a model for global society at large in 2020, in our opinion.

    Artificial intelligence (AI)

    As we will see later, in the article on the emerging international monetary system, it’s technology that has actually led us into the chaotic transition phase and, of course, it’s the same that will bring about a new sustainable system in the new decade, starting with the very decisive year 2020.

    In 2020, 5G will already reach everywhere,[4] thanks to which artificial intelligence will be deployed along all our virtual connections via the advent of the big data era.[5] Returning to chaos theory, it shows that, in a complex system, minimal differences in starting conditions can lead to completely different results, leading to the apparent unpredictability. Big data connected via 5G will provide a tool for a much more in-depth observation of reality that will allow us to regain predictability.

    Figure 2 – 5G deployment by country and number of sites per 10,000 inhabitants. Source: Deloitte.

    For example, the agro-industry is currently adopting big data techniques that will allow it to integrate climate characteristics into the planning of seed and crop choices and schedules, thus equipping itself with tools to adapt to the disrupted climate. Adaptation of agriculture to new climatic conditions will also result in lower energy and resource consumption, thus reducing its environmental impact.[6] The same will happen in all industrial sectors. This will make it possible to respond to both emergencies and climate requirements and thus appease the anger of the people. Stabilisation.[7]

    Climate: between adaptation and stabilisation

    [FYI: Registration required for full reports]

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  • Fri, Nov 22, 2019 - 8:42am



    Status: Bronze Member

    Joined: Dec 10 2013

    Posts: 92

    Lagarde Cements ECB Speech Style Citing T.S. Eliot, St. Francis


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