• Daily Digest

    Daily Digest 3/14 – Endless Government Manipulation, The Price Of Green Energy

    by DailyDigest

    Thursday, March 14, 2013, 2:43 PM


The graph Bernanke should look at before ‘exiting’ anything (Ben Johnson)

I tried to estimate a simple reaction function for the fed based on “employment” (rate, Civilian Employment-Population ratio) and “prices” (PCE core inflation). The estimation period is 1990 to 2007. 2008-13 is forecast.

Charlie Rose: Jeremy Grantham (Joe M.)

Jeremy Grantham, Co-founder and Chief Investment Strategist of Grantham Mayo Van Otterloo. He discusses long-term prospects for natural resources, agriculture, population, and investments.

Mark Faber: Endless Government Manipulation (Arthur Robey)

I worry about the time when the current asset inflation will give way to a serious asset deflation, which will inevitably happen sometime in the future. As an observer of markets I am, therefore, concerned that the decline in gold prices could be telling us that we are about to enter a period of asset deflation.

Inflation Targeting Revisited; Three Major Fed-Sponsored Bubbles; Who Benefits From Inflation? (Adam)

The first major problem with inflation targeting is that increases in money supply and credit (the true measure of inflation) frequently appear in the form of asset bubbles, not consumer prices.

Even if that were not the case, it's easy to show why 2% inflation targeting is a bad thing.

1,000 companies going bankrupt in Italy every day as country faces full-scale ‘credit emergency’ (westcoastjan)

Franco Bernabe, head of Telecom Italia, said firms are “dying from lack of liquidity” and called on the Bank of Italy to take bold action to head off a disaster. “The Italian economy is being suffocated. The country must intervene rapidly to reinject funds into the economy,” he said.

Young inventor’s flash idea to scare off lions (westcoastjan)

Richard Turere, a Maasai who lives not far from Kitengela, is scared of the lions – and for good reason. He’s only 13, and small for his age – no match for a hungry feline on the prowl. But that didn’t stop him at the age of 11 from wanting to find a way of protecting his family’s livestock.

Detroit City Council continues to fight governor's EFM plan (Phil H.)

The next stop could be a district courtroom either in Detroit or Lansing. Many councilmembers do not want to wait to see what Gov. Rick Snyder will do about an emergency financial manager before being ready to act.

U.S. to let spy agencies scour Americans' finances (VeganD)

Financial institutions file more than 15 million "suspicious activity reports" every year, according to Treasury. Banks, for instance, are required to report all personal cash transactions exceeding $10,000, as well as suspected incidents of money laundering, loan fraud, computer hacking or counterfeiting.

"For these reports to be of value in detecting money laundering, they must be accessible to law enforcement, counter-terrorism agencies, financial regulators, and the intelligence community," said the Treasury planning document.

It's Going To End Badly (GE Christenson)

The media encourages us to believe that practically everything in our economy is either good or getting better. Another way of stating the media hype is “all of our problems will be solved through the combined efforts of our capable politicians coupled with the wisdom and competent management of The Federal Reserve.”


Thieves Blight Nigeria's Swamps with Spilt Oil (westcoastjan)

The impact on the environment of such so-called "bunkering" practices – and on the largely subsistence fishing communities who live around the pipelines in the creeks and swamps of the Niger Delta – is devastating. Decades of oil spills from a combination of theft and poor environmental management by oil majors has ravaged this fragile wetlands environment.

Deepwater rig worker weeps as he admits he overlooked warning of blast that set off America’s worst environmental disaster (Yoxa)

At the nonjury trial over liability, U.S. District Judge Carl Barbier is to determine responsibility for the disaster and whether BP, owner of the well; Transocean Ltd., owner of the Deepwater Horizon; or Houston-based Halliburton acted with willful or wanton misconduct or reckless indifference — the legal requirement for establishing gross negligence.

The Price of Green Energy: Is Germany Killing the Environment to Save It? (north-of-the-border)

Kaiser says this is "a climate-policy disaster" and estimates that this clear-cutting alone will release more than 1,000 metric tons of carbon dioxide into the atmosphere. Forests are important for lowering levels of greenhouse gases, as large quantities of carbon dioxide are trapped in wood — especially the wood of ancient beech trees like these. Less than two years ago, UNESCO added the "Ancient Beech Forests of Germany" to its list of World Natural Heritage Sites.

Japan's Methane Hydrate Gas Extraction Is First In The World (Jason W.)

Methane is a major component of natural gas and governments including Canada, the United States, Norway and China are also looking at exploiting hydrate deposits as an alternative source of energy.

Japan used depressurisation to turn methane hydrate to methane gas, a process thought by the government to be more effective than using the hot water circulation method the country had tested successfully in 2002.


Greenland's resources boom still more talk than action (westcoastjan)

EU officials, fearing losing out, flew to Nuuk just days before the Chinese visit to sign a letter of cooperation on accessing its "strong potential" of "critical" materials, including rare earths at competitive prices.

In 2011, U.S. Secretary of State Hillary Clinton also paid a visit to signal her country's interest in rare earths, a group of elements needed in most electrical devices from mobile phones to televisions.

Analysis: Antibiotic apocalypse (westcoastjan)

Antibiotics kill bacteria, but the bugs are incredibly wily foes. Once you start treating them with a new drug, they find ways of surviving. New drugs are needed, which they then find ways to survive.

Pentagon weapons-maker finds method for cheap, clean water (Ben Johnson, Nervous Nelly)

It's 500 times thinner than the best filter on the market today and a thousand times stronger," said John Stetson, the engineer who has been working on the idea. "The energy that's required and the pressure that's required to filter salt is approximately 100 times less."

Access to clean drinking water is increasingly seen as a major global security issue. Competition for water is likely to lead to instability and potential state failure in countries important to the United States, according to a U.S. intelligence community report last year.

Gold & Silver

Click to read the Gold & Silver Digest: 3/13/13

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, Mar 14, 2013 - 3:02pm



    Status: Silver Member

    Joined: Jul 30 2009

    Posts: 3134


    US budget deficit jumps in February by $204B


    1. US budget deficit jumps in February by $204B
    2. Japan faces higher fuel bill as nuclear shutdown enters 3rd year
    3. Swiss central bank maintains cap on Swiss franc
    4. Greek unemployment climbs in Q4 as recession drags on
    5. Greece and lenders fall out over firings

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  • Thu, Mar 14, 2013 - 3:49pm



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    Posts: 240


    WRT Bernanke chart, could an

    WRT Bernanke chart, could an argument be made that with QE∞ that they are already in negative interest rates?

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  • Thu, Mar 14, 2013 - 4:20pm



    Status: Silver Member

    Joined: Jul 30 2009

    Posts: 3134


    Iraq war costs U.S. more than $2 trillion: study

    "The U.S. war in Iraq has cost $1.7 trillion with an additional $490 billion in benefits owed to war veterans, expenses that could grow to more than $6 trillion over the next four decades counting interest, a study released on Thursday said."

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  • Thu, Mar 14, 2013 - 9:18pm



    Status: Silver Member

    Joined: Jul 30 2009

    Posts: 3134


    U.S. Fed balance sheet grows to record large size

    "U.S. Federal Reserve's balance sheet grew to a record size in the latest week with more holdings of U.S. government debt, Fed data released on Thursday showed.

    The Fed's balance sheet, a broad gauge of its lending to the financial system, stood at $3.147 trillion on March 13, compared with $3.091 trillion on March 6."

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  • Fri, Mar 15, 2013 - 2:03am


    Arthur Robey

    Status: Member

    Joined: Feb 03 2010

    Posts: 1807


    Grantham the Great.

    I sit at Grantham's feet. 

    He says that we have a fixation on the paper world. This is exactly the malady that Dr Iain McGilchrist warns us about in his critique of Left Brain thinking. It fixates on the model of the economy (money) at the expense of the real economy. (Skills, phosphates, oil etc.).

    The model is way out of wack in it's representation of the reality.

    The Lecture is called "Things are Not What they Seem."


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  • Fri, Mar 15, 2013 - 5:27am

    John Lemieux

    John Lemieux

    Status: Silver Member

    Joined: Mar 02 2012

    Posts: 208


    Grantham and the 3rd E

    IMO Grantham puts the 3rd E right were it belongs . And I can't help but think that until very recently what he said in the first ten minutes about climate change would not have been allowed outside of the CT topics at PP. But the truth is that it is much more serious than even he states. As we are certainly going to go beyond the 2 deg threshold no matter what we do now. And  I fear the truth is that The Titanic has likely already struck the iceberg in terms of a climate catastrophe.
    And I sense that many here don't even realize what this means in terms of current and coming crises. And this is especially troubling considering that we have Dr. Mark Cochrane working hard here to provide us with the facts. 
    So I can only think that what Iain Mcgilchrist is telling us must explain why so many smart people are apparently willfully blind to our climate/environmental crises. The left hemishere simply doesn't care about things that it can't grasp, control and possess.
    So we focus almost exclusively on the economy (money, PM's)  as the tidal wave of horrors that is climate change bears down upon us. 

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