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    Daily Digest 11/5 – The World’s Biggest Bond Bubble, China Puts the Brakes on Car Makers

    by saxplayer00o1

    Wednesday, November 5, 2014, 4:04 PM


Covered California says small business health premiums will rise 5.2 percent statewide

Mom and pop businesses with 50 or fewer employees that buy health insurance plans through California’s state-run marketplace can expect an average premium increase of 5.2 percent in 2015, Covered California officials announced Monday.

Falling Oil Prices Make Fracking Less Lucrative

But in the Arctic, producing a barrel costs $78 on average. From Canada’s oil sands, it’s an average of $74 a barrel. And because those are averages, some companies have costs that are higher — which means there could be drillers currently producing crude at a loss.
Here in the U.S., the oil drilling boom is due largely to technologies like hydraulic fracturing, or fracking, used to force oil from shale formations deep underground. Producing this oil, Rystad figures, costs an average of $62 a barrel.

Food Bank Canada report: ‘Alarming’ number of Canadians seek help

Food bank use in Canada increased slightly this year in comparison to 2013, and it remains significantly higher than it was before the economic recession, according to a report released Tuesday by Food Bank Canada.

NCAER lowers India GDP growth forecast for this year to 5%

The National Council of Applied Economic Research (NCAER) has lowered India’s GDP growth forecast to 5 per cent in the current financial year on weak economical fundamentals and uncertainties in growth prospects.

China Puts the Brakes on Car Makers

On Tuesday, Honda Motor Co. and Nissan Motor Co. cut their sales projections in the country for this year and the chief executive of luxury-car maker BMW AG said flatly the nation’s “high double-digit growth rates are over.”

RBA Held Rates Says Current Stimulus is Justified (Australia)

Australia’s central bank kept interest rates at record lows for a 14th straight policy meeting on Tuesday, saying the stimulus was justified given the outlook for sub par growth even as consumers showed signs of opening their wallets.

BoC: stimulus still needed despite concern over stability risks (Canada)

The central bank has kept interest rates at near-record lows for more than four years and says there will be no hikes until substantial slack in the economy is eliminated.

Euro Woes Pressuring Eastern EU States Into More Easing

Low inflation, flagging growth, and the European Central Bank’s stimulus bias will probably force eastern members of the European Union to cut interest rates to record lows this week.

Central Bank Duel Spurs Korea Rate-Cut Bets After Japan Easing

“We’re seeing a weak yen at a time when South Korea’s export momentum isn’t strong, and the uncertainty in currency markets may further deter local companies’ investments,” Kwon Young Sun, a Hong Kong-based economist at Nomura Holdings Inc., said in a phone interview yesterday. “We see increasing risks of BOK cutting rates to 1.75 percent in the next few months.”

Stimulus Gives Bank of Japan Huge New Role in Markets

Still, some observers fretted about the bank’s role as the elephant in the markets. Its monthly purchases of Japanese government bonds under the new policy—¥8 trillion ($70.1 billion) to ¥12 trillion—will be roughly equivalent to the government’s monthly issuance of those bonds.

Poland’s Finance Minister Urges Central Bank to Boost Inflation

Poland’s central bank should use all the policy tools at its disposal to bring consumer prices closer to its 2.5% target because low inflation is complicating the country’s fiscal policy, the country’s finance minister said.

Japan Creates World’s Biggest Bond Bubble

In announcing that it will boost purchases of government bonds to a record annual pace of $709 billion, the central bank has just added further fuel to the most obvious bond bubble in modern history — and helped create a fresh one on stocks.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/4/14

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 05, 2014 - 4:34pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2935

    Japanese Wages Continue to Fall in Real Terms


    1. Russia’s central bank withdraws support for the rouble
    2. Venezuela Shortages Ruining Christmas For Latin American Nation?
    3. Japan's October monetary base hits record high
    4. Dollar hits fresh seven-year high against yen
    5. Japanese Wages Continue to Fall in Real Terms
    6. Indonesia Economy Tests Jokowi as Growth Slows to 5% in Third Quarter
    7. France's Latest Tax Target: Vacation Homes

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  • Wed, Nov 05, 2014 - 5:57pm



    Status Platinum Member (Offline)

    Joined: Apr 13 2011

    Posts: 1847

    If I were Russia, this is what I'd do

    Saudi Stocks, Currency Tumble As Aramco Pipeline Explodes

    File this away in the category of imaginative speculation:  

    If I were a Russian oligarch, whose nation was being squeezed to the breaking point with currency and oil price manipulation techniques, I might find a faction operating near the Saudi oil fields and ports who "wants democracy" and "support them" with large amounts of explosives.

    Catherine Austin Fitts introduced James Norman's book, The Oil Card: Global Economic Warfare in the 21st Century explaining the idea that a very low price of oil can be used to damage a nation that is a major exporter of oil. 

    For oil importers, the reverse it true.  

    And for a global empire utterly and totally dependent on oil…..


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  • Wed, Nov 05, 2014 - 10:37pm


    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    Sharks and Schadenfreude.

    Two reasons to keep the Australian interest rate low.

    • The real economy has tanked and has to be stimulated.
    • To protect and keep the All-Hallowed property market up. If the interest rate went up new entrants into the ponzi scheme would not be able to leverage up as effectively. Every bubble needs new fodder to keep it from popping. The government is relying on Baby Boomers getting enough money for their property investments to be self funded. Let us see if the next generations are in any position to buy at current prices. (Think in A$ millions for a house worth 16 kg of silver.)

    Meanwhile, here on the hardstand at Marina Adelaide another multi-million dollar yacht is being unpacked. I have no evidence but I suspect that some BBers are selling early and buying yachts cheaply from countries that actually build the things.

    The way that I look at a yacht is as a house that sits on the water. And these things are high maintenance McBoats. Well, I hope that the owners are wealthy enough to sleep soundly at night. But I suspect that they are Willfully Blind to where their wealth actually comes from- From young struggling families who have been Shanghaied into ridiculous mortgages in order to get shelter for their children. By plundering the kids presents from under the Christmas tree.

    I shall be tarred with the same brush-but I am contented with my micro-home. But I must confess a certain schadenfreude at the amount that these pirates will be paying for berth fees and diesel. Every parasite has parasites. I am surrounded by sharks- can't wait to get back on the water.

    Post-script: These McBoats are really going to need Cold Fusion. I hope that they get it for all our sakes.

    Well I have got to get back to work- I have a days worth of grinding ahead of me.

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