• Daily Digest

    Daily Digest 11/27 – Yield-Crazed Investors Pile Into U.S. Subprime Car Loans, The Lender Of Last Resort

    by Daily Digest

    Wednesday, November 27, 2019, 9:18 AM


Dallas Fed president believes ballooning debt could suddenly become a big issue for economy (Saxplayer00o1)

“We’re got a record level of corporate and to be specific BBB debt has tripled over the last 10 years,” he said on “Squawk Box.” “Leveraged loans as well as BB and B debt have grown dramatically.”

Total corporate debt has swelled from about $5 trillion in 2007 as the Great Recession was just beginning to $9.5 trillion halfway through 2019, quietly surging 90%, according to Securities Industry and Financial Markets Association data.

‘Cheap’ End-of-Year Funding Fuels Demand for Fed Repo Operation (Saxplayer00o1)

The central bank has been injecting liquidity into the funding markets since Sept. 17, when the rate on overnight general collateral repo jumped to 10% from around 2%. The Fed has also begun buying Treasury bills to add reserves into the system.
Even with the Fed’s commitment to continue providing liquidity to the financial system around year-end, the market is still showing some sign of concern.

Fed economists warn of ‘economic ruin’ if Modern Monetary Theory policies are ever adopted (Saxplayer00o1)

“A solution some countries with high levels of unsustainable debt have tried is printing money. In this scenario, the government borrows money by issuing bonds and then orders the central bank to buy those bonds by creating (printing) money,” wrote Scott A. Wolla and Kaitlyn Frerking. “History has taught us, however, that this type of policy leads to extremely high rates of inflation (hyperinflation) and often ends in economic ruin.”

Brazil real hits record low, central bank intervenes to ease pressure (Saxplayer00o1)

The dollar’s record high of 4.2689 reais was around two cents cent higher than the previous peak reached in 2015 when Brazil was mired in one of the deepest and most painful recessions in its history.

Argentina 2019 inflation seen at 55%, Treasury minister says (Saxplayer00o1)

Fernandez’s government, which takes office on Dec. 10, will inherit a roughly $100 billion pile of sovereign debt that needs to be restructured. It includes a $57 billion financing package with the International Monetary Fund (IMF).

Yield-crazed investors pile into US subprime car loans (Saxplayer00o1)

Still, concerns are mounting that consumers may have taken on more debt than they can handle. Data from the Federal Reserve Bank of New York show that the total proportion of consumer auto loans more than 90 days late — classed as “seriously delinquent” — has been steadily rising.

Westpac is now the main banking horror story and its financial pain is yet to come (ezlxq1949)

While Westpac management has failed to take AUSTRAC’s allegations seriously, everyone else has.

There are now investigations underway from the Federal Police, the corporate regulator (Australian Securities and Investments Commission) and the prudential regulator (Australian Prudential Regulation Authority).

Australia Talks: The most and least trusted professions revealed (ezlxq1949)

One Nation voters had less trust in scientists (79 per cent), judges (47 per cent), and particularly journalists (13 per cent) than other voters.

LNP voters trusted religious leaders, corporate executives and politicians more than other voters, while Greens and ALP voters trusted journalists and union leaders more.

Gold and the Lender of Last Resort (GE Christenson)

The Fed enabled the bailout of banks during the 2008 crisis. The audit disclosed over $16 trillion in bailouts, low-interest loans, and guarantees. Bankers prospered, debts increased, stocks and bonds levitated, and dollars purchased less every year. (Gold prices rise.)

NYC wants a chief algorithm officer to counter bias, build transparency (newsbuoy)

A strong public education and transparency program should be among those considerations, the report says. The city should not only explain in plain language what algorithmic systems are in place but also create processes in which individuals can request more information about the decisions made by those systems, why those decisions are made, and potentially challenge those decisions.

The great American labor paradox: Plentiful jobs, most of them bad (tmn)

So, what is this newfangled thing telling us? Right now the JQI is just shy of 81, which implies that there are 81 high-quality jobs for every 100 low-quality ones. While that’s a slight improvement from early 2012—the JQI’s 30-year nadir—it’s still way down from 2006, the eve of the housing market crash, when the economy regularly supported about 90 good jobs per 100 lousy ones.

U.S. Energy Emissions Rise For The First Time In Half A Decade (Michael S.)

In a major milestone, renewables held a larger share than coal in U.S. monthly electricity generation in April 2019, for the first time ever, reflecting seasonal factors and longer-term trends such as coal’s decline and renewables’ rise. Yet, renewables overtaking coal will be an April blip, as the EIA expected coal to provide more electricity than renewables in the United States for the remaining months of 2019.

Farmers are still managing to harvest crops in drought. Here’s how they’re doing it (Henry H.)

“It’s a whole range of things. It’s stubble retention, managing fallows over summer where we control weeds where we’re not growing crops, and it’s less disturbance of our soil,” he said.

“It’s also what goes on in the background, like breeding programs to improve the resilience of our seed varieties.”

Study: Less Tillage And More Surface Residue Doesn’t Crimp Yields (newsbuoy)

In 2014, studies on two farms near Barney, North Dakota, and Fergus Falls, Minnesota, and a third in 2015 near Mooreton, North Dakota, were established. These farms ranged in soil series with sandy, loamy, and clayey textures, providing local farmers with a realistic picture of low-tillage impacts on their own acreage. Full-scale equipment was used in farmers’ fields.

UN: The world has backed itself into a treacherous corner on climate change (tmn)

The UN’s climate science body, the Intergovernmental Panel on Climate Change, reported last year that limiting warming this century to 1.5 degrees Celsius, the more ambitious target in the Paris agreement, would require immediate, drastic changes to the global economy. The world would have to halve its emissions by as soon as 2030, reach net-zero emissions by 2050, and then pull more carbon dioxide out of the air than it emits thereafter.

If the world had gotten its act together in 2010, countries would only have to reduce their emissions 3.3 percent per year to reach the 1.5 degree Celsius target.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/26/19

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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  • Wed, Nov 27, 2019 - 10:16am



    Status: Bronze Member

    Joined: Dec 10 2013

    Posts: 206


    Polio and the Vaccine Hustle

    More polio cases now caused by vaccine than by wild virus

    You will obey!

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  • Wed, Nov 27, 2019 - 2:30pm



    Status: Platinum Member

    Joined: Apr 27 2010

    Posts: 2081


    Unlimited money feeds the myth of unlimited resources


    Unlimited Money Feeds the Myth of Unlimited Real Resources
    The world was on a watered down version of a gold standard until 1971 when the US abandoned its solemn promise — the 1944 Bretton Woods Agreement — to back the dollar with gold at $35 per ounce. Gold backing of a currency provided a solid intellectual foundation of reality that few even recognized existed within themselves; (i.e., that we live in a world of scarcity and uncertainty). This reinforced the idea that wealth has to be built. It cannot be conjured out of thin air, just as gold cannot be conjured out of thin air.

    But fiat currency can be conjured out of thin air and in enormous amounts. The longer a fiat currency is the coin of the land, the more one is led to believe that nothing should be in short supply, since everything is bought with money and money need not be in short supply. Those who know only unlimited fiat money soon demand free healthcare and free higher education as a right. And why not? Unlimited money will pay for it. Into this never-never land comes demands for scrapping the fossil fuel underpinnings of our modern economy by those who understand nothing of how an economy works. But, apparently one does not need to understand technical limitations, because there are no technical limitations. The "barbarous relic" (gold) had once limited the money supply and thusly seemed to limit the supply of vendible goods. Gold has been replaced by unlimited fiat money. Now it seems that unlimited aggregate demand can be funded by unlimited fiat money, leading to a world of plenty. Designer of the Bretton Woods Agreement Lord Keynes says so in this very insightful short video.
    Fiat Money Turns the World Upside Down
    The psychological impact of a lifetime within a fiat money economy cannot be underestimated. One's world is turned upside down. For many, financial success becomes prima facie evidence of exploitation of the masses rather than something to be admired and to which one could aspire also. With more wealth seemingly available at the click of a computer button, only an Ebenezer Scrooge would deny funding the latest demanded government program. If wealth is so easy to create, many conclude only greed and cruelty are what stand between us and far greater prosperity for all.

    But that is the very reason that fiat money is so subversive to the social order. In a sound money economy any new spending program can be funded only by an increase in taxes, an increase in debt, or by cutting existing funding. There is a real cost to each of these options. There is a real cost to printing money, too, but the cost is hidden. One does not see malinvestment at the time of money printing. Price increases are delayed and uneven, due to the Cantillon Effect whereby the early receivers of new money are able to purchase goods and services at existing prices. Later receivers or those who do not receive the new money at all suffer higher prices and a reduction in their standard of living. Even then most people do not link higher retail prices with a previous expansion of the money supply.

    It would be hard to invent a more effective method for the destruction of modern society. As Pogo would say, "We have met the enemy and he is us."

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  • Wed, Nov 27, 2019 - 6:54pm



    Status: Bronze Member

    Joined: Dec 10 2013

    Posts: 206


    13 Articles of Impeachment of Donald Trump - Count One: Solicitation of Bribery

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  • Thu, Nov 28, 2019 - 1:02am


    Status: Member

    Joined: Sep 03 2008

    Posts: 2188


    the real target of "Impeachment"

    So who exactly is the target of all this impeachment drama anyway?  It would seem to be Trump.  Except...

    Once Trump actually gets a chance to put on a real defense - you know, call witnesses, cross-examine accusers, and so on, the usual "legal stuff" that all Americans are used to having - the Bidens (Joe & Hunter) will most likely be nailed to the cross instead of Trump.  After all, if there really was corruption, then asking the PM of Ukraine to look into it wasn't illegal, it was simply the President doing his job.

    Ok, so who benefits from this plan?  As we like to ask here, cui bono?

    Well now.  With no moderate "traditional democrat" in the race any longer, that leaves room for a Man on a White Horse to ride to the rescue.  A man with fantastic name recognition, an experienced campaigner...

    Sorry, did I say man?  I meant woman.  In this case, an utterly corrupt former Secretary of State warmonger who comes pre-bribed by the banksters and the tech industry, not to mention all those foreign countries who contributed lavishly to a certain "Foundation".

    Yeah.  So the real winner of the Impeachment Drama?

    That would be Hillary Rodham Clinton.

    If this thing goes all the way to the Senate, then I believe we will see HRC leap into the race as Joe gets knocked out by Trump's defense.  Money will gush from all the usual places in the hopes they will be able to own and operate 1600 Pennsylvania once again...

    If something seems to be too stupid to be true - perhaps you just aren't looking hard enough for the real winner of the game.

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  • Thu, Nov 28, 2019 - 6:15am



    Status: Platinum Member

    Joined: Apr 27 2010

    Posts: 2081


    More guns, less crime.


    According to a study in the Harvard Journal of Law & Public Policy, which cites the Centers for Disease Control, the U.S. National Academy of Sciences and the United Nations International Study on Firearms Regulation, the more guns a nation has, the less criminal activity.

    In other words, more firearms, less crime, concludes the virtually unpublicized research report by attorney Don B. Kates and Dr. Gary Mauser. But the key is firearms in the hands of private citizens.

    “The study was overlooked when it first came out in 2007,” writes Michael Snyder, “but it was recently re-discovered and while the findings may not surprise some, the place where the study was undertaken is a bit surprising. The study came from the Harvard Journal of Law, that bastion of extreme, Ivy League liberalism. Titled Would Banning Firearms Reduce Murder and Suicide?, the report “found some surprising things.”...

    “There is a compound assertion that guns are uniquely available in the United States compared with other modern developed nations, which is why the United States has by far the highest murder rate,” report Kates and Mauser. “Though these assertions have been endlessly repeated," the statement “is, in fact, false.”

    Norway, Finland, Germany, France and Denmark, which have high rates of gun ownership, have low murder rates. On the other hand, in Luxembourg, where handguns are totally banned and ownership of any kind of gun is minimal, the murder rate is nine times higher than Germany. Their source of information? The United Nations' International Study on Firearms Regulation, published by the UN's Economic and Social Council and the United Nations Commission on Crime-Prevention and Criminal Justice.

    When Kates and Mauser compared England with the United States, they found “’a negative correlation,’ that is, ‘where firearms are most dense violent crime rates are lowest, and where guns are least dense, violent crime rates are highest.’ There is no consistent significant positive association between gun ownership levels and violence rates.”

    Shocking! Read the whole thing.

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