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    Daily Digest 2/18 – China’s Debt Binge Goes Full Frontal, Machines May Replace Half Of Human Jobs

    by DailyDigest

    Thursday, February 18, 2016, 4:53 PM


Syria: How one strip of land could change everything (Adam L.)

Hospitals in Azaz were hit by a rocket strike Monday, but the area has also been the scene of fierce clashes. Contesting the town are two groups: Syrian Sunni rebels, many backed by Turkey, Gulf states and sometimes the U.S., are facing an advance from the Syrian Kurds known as the YPG, another group that receives U.S. support.

Did Mark Cuban and the Dow Just Prove Goldbugs Right? (Kevin J.)

When celebrity investor Mark Cuban announces to the world that he is investing in gold, is that a sign that the ride up is just getting going, or that it has already peaked? The Gold Report reached out to long-time experts in the sector for a better understanding of what is moving the markets—negative interest rates, a topping dollar, Fed testimony, increased gold buying in China—and what that means for junior mining stocks in the coming months.

China’s Debt Binge Goes Full Frontal—-January Debt Issuance Of $520 Billion Exceeded Annual GDP Of Iran (Aaron M.)

January’s credit data was exceedingly strong. Part of the demand for new RMB loans is from demand to borrow RMB and pay down USD debt, though banks may have also started to behave differently amid profit pressures. The temporary suspension of local government bond issuance also directed more borrowing to bank loans and other channels. Strong mortgage loan growth also contributed (household medium to long term loans increased RMB 478.3bn in January, vs RMB 292.4bn in December). The window guidance meeting held by the central bank around mid-January to rein in rapid credit growth apparently did not have much effect on the behavior of commercial banks. (January loan supply tends to be very front-loaded; one would have expected there to be a more significant deceleration of credit supply if the central bank was sending a really tough message, hence market expectations were only RMB 1.9 tn even when they knew it was already RMB1.7 tn in the first half of the month.)

It’s time to kill the $100 bill (richcabot)

I remember that when the euro was being designed in the late 1990s, I argued with my European G7 colleagues that skirmishing over seigniorage by issuing a 500 euro note was highly irresponsible and mostly would be a boon to corruption and crime. Since the crime and corruption in significant part would happen outside European borders, I suggested that, to paraphrase John Connally, it was their currency, but would be everyone’s problem. And I made clear that in the context of an international agreement, the U.S. would consider policy regarding the $100 bill. But because the Germans were committed to having a high denomination note, the issue was never seriously debated in international forums.

New Monopoly edition goes paperless, ruins everyone’s fun (richcabot)

The difference between this game and past attempts to take Monopoly paperless is that everything in the game is swipeable or scannable—players’ debit cards, property cards, and Chance cards all get swiped, too (Community Chest cards, for whatever reason, are no more in this edition). Gizmodo also reports that some of these Chance cards can also affect the cost of rents and other things in the game, on-the-fly modifications that are easier to pull off when you don’t need to constantly remind your little brother how to calculate percentages.

Cashless future will save billions and requires red tape abolition: Alex Hawke (richcabot)

Mr Hawke urged that government must keep pace with this consumer and business-driven shift in the way Australians do commerce.

“In the face of this change, the government will need to be nimble, removing obsolete regulations and ensuring that innovation isn’t stifled by ill-considered interventions,” he said.

The Big Picture (Nate)

Bingo: after scaring the pants off everybody in the world last year with their hawkish talk of a persistently isolationist monetary policy, the Big Dogs of the FOMC have been yapping like toy fox terriers the past couple weeks, making sure everybody hears the message that “… we are closely monitoring global economic and financial developments and assessing their implications for the labor market and inflation, and for the balance of risks to the outlook”

Machines may replace half of human jobs (PBD)

“We are approaching the time when machines will be able to outperform humans at almost any task,” Vadri said, according to a report from The Guardian. “Society needs to confront this question before it is upon us: if machines are capable of doing almost any work humans can do, what will humans do?”

Japan Is Our Future: Is Gold the Solution? (Tiffany D.)

Japan has put the force of Atlas into moving heaven and earth in hopes of jump-starting its impotent economy. And yet … Japan’s economy remains impotent. No matter how many hundreds of trillions of yen Japan has thrown at resuscitating its economy over the last two-plus decades, the thing lays on the gurney like a brain-dead accident victim, with all the relatives gathered around and praying to a god who’s trying to tell the Japanese, “Your prescription for survival is stupid!”

Has the Crash of the Global Financial Markets Begun? (PBD)

As the following quotation from Bradford DeLong’s 8 January 2016 Huffington Post article demonstrates, one of the ongoing debates among economists of many tribes is whether the period that began in the summer of 2007 will be called the “Greatest Depression” or the “Longest Depression” by future economic historians.

Turkey is about to launch a false flag operation so they can invade Syria (richcabot)

The issues in the Middle East are far simpler than anyone else has told you. Israel began plans for dominance of the entire Middle East in 1982 with the publication of a paper by Oded Yinon titled, “A Strategy for Israel in the Nineteen Eighties” In it he makes clear, “To survive, Israel must 1) become an imperial regional power, and 2) must effect the division of the whole area into small states by the dissolution of all existing Arab states.”

Flint: A Tale of Two Cities (richcabot)

Working people in Flint, Michigan are suffering mightily from the poisoning of the city’s water supply that resulted from callous decisions by government officials—from the unelected emergency city manager, on up to the governor and the federal Environmental Protection Agency. All of these officials acted in the name of austerity and cutting costs. But as is so often the case, the tragedy in Flint is not merely the result of individual bad actors but flows from an economic system that pits the wealthy few at the top against the vast majority who work for a living.

Enabling Trust by Consensus (Chris M.)

Trust is a complex social phenomenon, captured very poorly by the binary nature of Internet trust systems. This paper proposes a social consensus system of trust: “Do You Believe in Tinker Bell? The Social Externalities of Trust,” by Khaled Baqer and Ross Anderson.

Showdown: Sheriff Blocks FDA Inspectors From Raw Milk Farm (Aaron M.)

“My research,” Rogers added, “concluded that no one was getting sick from this distribution of this raw milk. It appeared to be harassment by the FDA and the DOJ, and making unconstitutional searches, in my opinion. The farmer told me that he no longer wished to cooperate with the inspections of his property.”

The Parmesan Cheese You Sprinkle on Your Penne Could Be Wood (richcabot)

One might be tempted to think of this as a ripped-from-the-headlines episode of “NYPD Bleu,” except that the FDA wasn’t playing. Some grated Parmesan suppliers have been mislabeling products by filling them with too much cellulose, a common anti-clumping agent made from wood pulp, or using cheaper cheddar, instead of real Romano. Someone had to pay. Castle President Michelle Myrter is scheduled to plead guilty this month to criminal charges. She faces up to a year in prison and a $100,000 fine.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/17/16

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, Feb 18, 2016 - 5:04pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Repost Of Today's News

    China leads global U.S. debt dump

    CNNMoney – ‎Feb 17, 2016‎
    In total, central banks sold off a net $225 billion in U.S. Treasury debt last year, the most since at least 1978, the last year of available data. In 2014, there was a net increase of $45 billion, according to CNNMoney's analysis of Treasury data

    OECD Cuts Global Growth Forecast and Warns of Growing Risks

    Bloomberg – ‎5 hours ago‎
    The OECD cut its global growth forecasts, saying the economies of Brazil, Germany and the U.S. are slowing and warning that some emerging markets are at risk of exchange-rate volatility. Global gross domestic product will expand 3.0 percent in 2016

    World economy will grow slower than expected: an 'urgent' problem

    Los Angeles Times3 hours ago
    The U.S. and global economies will grow at a slower pace this year than initially estimated, requiring an "urgent" response from policymakers, the Organization …

    Global downturn spurred Fed to consider changing rate path: minutes

    Reuters – ‎18 hours ago‎
    WASHINGTON Federal Reserve policymakers worried last month that a global slowdown and financial market selloff could hurt the U.S. economy and considered changing the central bank's planned interest rate hike path for 2016. Although most of the …

    Central Banks Are Facing `Loss of Faith,' Gold Veteran Says

    Bloomberg8 hours ago
    “The safe-haven demand appears to be where people are focused on, and that is on a loss of faith in central banks being able to manage through this period,” …

    Brazil economic activity tanks again as recession deepens

    Reuters UK – ‎4 hours ago‎
    BRASILIA Economic activity in Brazil fell for the 10th straight month in December, central bank data showed on Thursday, adding to evidence that the recession in Latin America's biggest country is far from bottoming out. The Brazilian central bank's

    Real Sinks With Bank Stocks After Brazil Cut Further Into Junk

    Bloomberg27 minutes ago
    "Politics, the sovereign downgrade and ever-weakening economic numbers in … while the country's debt risk as measured by five-year credit-default swaps was …

    Saudi Rating Gets S&P Jolt as Four Oil-Nation Credits Are Cut

    Bloomberg21 hours ago
    … outlook on the price of oil,” Steve Hooker, who helps oversee $12.5 billion of debt at Newfleet Asset Management LLC in Hartford, Connecticut, said by phone.


    Shale Faces March Madness With $1.2 Billion in Interest Due

    Bloomberg2 hours ago
    That debt has become increasingly burdensome as prices collapse. … The industry is facing $9.8 billion in interest payments through the end of this year, …

    Japan slips back to deficit as exports tumble 13 percent

    The Seattle Times14 hours ago
    TOKYO (AP) — Japan's trade balance returned to deficit in January, with a shortfall of 646 billion yen ($5.65 billion) as exports fell 13 percent from the year …

    Japan will have to double down on stimulus to save Abenomics

    Financial Times – ‎3 hours ago‎
    Such signs of global weakness quickly overwhelmed Mr Kuroda's latest bazooka; far from falling, the yen burst out of its Y118-Y125 range to trade at Y114. For the first time since prime minister Shinzo Abe launched his Abenomics stimulus in 2012, he

    U.A.E. Central Bank Foreign Assets Decline $12 Billion

    Bloomberg4 hours ago
    The United Arab Emirates central bank's foreign assets fell by $12 billion in … in the 11 months to December as the country sought to bridge its budget deficit.

    Venezuela Boosts Gas Price, Devalues Bolivar as Economy Unravels

    Bloomberg15 hours ago
    The only measures that could reduce a fiscal deficit that is now almost 25 … state oil company Petroleos de Venezuela SA incurred $15.2 billion in expenses and …

    Australian Unemployment Spikes to 6% as Full-Time Jobs Slump

    Bloomberg15 hours ago
    Australia's unemployment rate unexpectedly climbed in January as full-time employment slumped by the most since 2013, reflecting waning stimulus from …

    S&P could downgrade more CoCo bonds hours ago
    The bank insisted that it has plenty of liquidity available to service its debts … more of the bonds across the market, and could choose to downgrade them, too.

    Banking Risks Lurk Behind Beleaguered Portugal Hit by Bond Rout

    Bloomberg9 hours ago
    If you have a debt load like Portugal “that is high, and with no control over your … to raise in the market, given the uncertainty regarding the restructuring of Novo …

    Illinois governor seeks broad power to balance state budget

    Reuters16 hours ago
    While the search continues for a constitutional way to rein in a $111 billion unfunded pension liability, Rauner proposed saving $4.8 billion over four years by …

    Mayor Turner: Layoffs likely for City of Houston employees

    KHOU15 hours ago
    Because of a budget shortfall, the City has to cut more than $100 million in spending by this summer. During a press conference on Wednesday, Mayor Sylvester …

    Lawmakers draft an Atlantic City 'intervention' – ‎16 hours ago‎
    New Jersey lawmakers are renewing a push to let the state take control of Atlantic City's finances in an effort to prevent bankruptcy for the resort town shaken by casino closures. Legislation outlined Wednesday comes after Gov. Christie, Senate

    1 out of 4 companies consider layoffs this year: survey

    Yonhap News14 hours ago
    SEOUL, Feb. 18 (Yonhap) — One out of four South Korean companies plan to reduce their workforces this year to save costs, bracing for the grim reality of …

    Europe Leveraged Loans Post Longest Run of Losses Since Crisis

    Bloomberg4 hours ago
    The cost of insuring European corporate debt is near the highest since June 2013, based on Markit iTraxx indexes of creditdefault swaps. Banks are ditching …

    IDC: Global IT Spending Slashed To $2.3 Trillion In 2016

    InformationWeek19 hours ago
    Global IT spending is expected to slow dramatically in 2016, with China … to post only a 2% growth rate to $2.3 trillion, compared to an annual growth rate of 5% …


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  • Thu, Feb 18, 2016 - 9:18pm



    Status Platinum Member (Offline)

    Joined: Apr 27 2010

    Posts: 1435

    Is there any hope for creatures such as ourselves?

    And now for what is probably the dumbest thing you will see today that will make you lose your faith in humanity just a tiny bit more (if that’s even possible at this point)…

    A bunch of morons got together and pulled a baby dolphin out of the sea and passed it around just TO TAKE SELFIES WITH IT, even as it DIED because they pulled it out of the sea to take selfies with it.

    In fact, they reportedly continued to take selfies with it even after it was dead because they didn’t realize they killed it.

    After they killed the dolphin, who overheated quickly after being taken out of its natural habitat, they left the poor thing’s dead body on the beach like a discarded candy wrapper.


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  • Thu, Feb 18, 2016 - 10:32pm


    Taz Alloway

    Status Bronze Member (Offline)

    Joined: Feb 18 2010

    Posts: 461

    Shifting private production costs to the taxpayer

    Predator control by USDA

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  • Fri, Feb 19, 2016 - 4:59am


    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    Good news Friday

    Because it's Friday here

    Rossi's 1 MW eCat has passed it's test. It was run at one MW for one year. The customer is satisfied and has placed his order.

    My observation: None but Rossi could have pulled it off. He has had a lot of experience with dirty in fighting with the Mafia and Big Gov. Anyone else would have blown it with bright eyed naivete.

    Saluto Rossi.

    1 MW E-Cat Plant Watch Thread [UPDATE #41 — 350 Day Test is Over, Mats Lewan's Sources Say Success]

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  • Fri, Feb 19, 2016 - 5:22am


    Mark Cochrane

    Status Platinum Member (Offline)

    Joined: May 24 2011

    Posts: 1189

    Still bad news Thursday here

    As we potentially slide into WWIII.


    Dozens of Turkish military vehicles cross Syria border, dig trenches – report

    Turkish military vehicles have crossed into a Kurdistani area in Syria, Afrin, just over the border, a Kurdish news agency reported adding that the troops started to dig a trench near Meidan Ekbis, a town in Aleppo province.

    Dozens of Turkish military vehicles advanced 200 meters into the Syrian Kurdish region in Aleppo province on Thursday, ANHA news agency reported.

    This has to be the most timid invasion in history, 200 meters! It is the thought that counts, I guess.

    The developments come as Turkey accused forces linked with the Syrian Kurdish YPG militia of an explosion in Ankara that killed 28 and injured 61 more. On Thursday, Turkish Prime Minister Ahmet Davutoglu vowed to continue the military efforts against Kurdish groups in Syria. The Syrian Kurds, in turn, denied responsibility for the attack and put the blame on Islamic State militants (IS, formerly ISIS/ISIL).

    ISIS carrying out the bombing would make sense. They are getting pounded by the Syrians/Russians as well as the Kurds. By triggering the Turks to invade they likely will get a reprieve as forces are deployed to counter the new invasion forces. However, if the Russian's have the story straight, ISIS might have been encouraged by the Turks to carry out the false flag operation to benefit both Turkish and ISIS desires.

    Meanwhile, the Russian Defense Ministry has recently released images and satellite intelligence proving the illegal oil supplies are being delivered across the Turkish-Syrian border on three main routes leading to Mediterranean ports, Batman oil refinery on the Turkish territory and a large transfer base in Turkey’s Cizre, respectively. Russia claimed that those oil supplies widely benefit Turkish President Recep closest relatives and help funding IS militants in Syria.


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  • Fri, Feb 19, 2016 - 3:39pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    China's central bank redacts sensitive foreign-exchange data


    China's central bank redacts sensitive foreign-exchange data

    Financial Times – ‎4 hours ago‎
    China's central bank has removed a closely watched foreign exchange data series from its website in a move likely to provoke suspicion that the government is attempting to conceal the extent of capital outflow. In a regular monthly data table published

    PBOC Adopts Daily Open Market Operations

    Bloomberg15 hours ago
    China is stepping up efforts to maintain liquidity in its banking system and keep a handle on interest rates as it faces unprecedented capital outflows.

    South Korea in suspected $2 billion intervention after stern warning

    Reuters6 hours ago
    The won has become Asia's worst performing due to risk-off sentiment that has seen outflows from Asia's fourth-largest economy since late last year.

    Brazil's Central Bank Says Economy Shrank 4.08 Pct in 2015

    ABC News21 hours ago
    Brazil's central bank said Thursday the economy contracted 4.08 percent in 2015, the worst performance since the indicator was created in 2003. The data also …

    Venezuela Says Inflation Rose to 180.9% in 2015

    Wall Street Journal – ‎18 hours ago‎
    CARACAS, Venezuela—Venezuela's central bank on Thursday said inflation last year surged to 180.9% and the economy contracted by 5.7%, reflecting the deep crisis here a day after President Nicolás Maduro announced a package of economic …

    Maduro Tinkers With Policy as Venezuelan Debt Default Looms

    Bloomberg22 hours ago
    President Nicolas Maduro missed an opportunity to salvage Venezuela's ruined economy on Wednesday with half-hearted measures that failed to reassure …

    Hong Kong Developers Under Pressure to Cut Prices Amid Slowdown

    Bloomberg14 hours ago
    Goldman Sachs says there have been $550 billion of outflows in the second half … companies' total foreign-currency debt dropped by about $140 billion in the …

    Philadelphia's $5.7bn 'quiet crisis'

    Financial Times4 hours ago
    The numbers for the city's municipal pension fund are so troubling that there seems … pension deficit were unconstitutional, raising the prospect of another credit …

    Illinois launches financial probe into Chicago Public Schools

    Reuters10 hours ago
    … Mayor Rahm Emanuel, has a $1.5 billion structural deficit and has asked Illinois' gridlocked state government for $480 million to help pay the system's pension …

    Senate May Worsen GERS Unfunded Liability Again

    St, Thomas Source10 hours ago
    GERS is facing a roughly $1.8 billion unfunded pension mandate and is expected to have liquidated its entire trust fund by 2024. (See Related Links below).

    Howes: Bankruptcy unlikely prescription for DPS trouble

    The Detroit News11 hours ago
    Nor would bankruptcy relieve the district's debt because it is backed by the taxpayers of … Chapter 9 would expose the state to at least $1.5 billion in liabilities …


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