Currency War: Winners And Losers (Time2Help)
If we think the dollar is the risky proposition, then the Japanese yen may be outright toxic. Did I say that we are short the yen (and generally put our money where our mouth is)? The one thing going for the yen is that neither Prime Minister Abe’s government, nor the Bank of Japan (BoJ) have doubled down in recent days, but that “rally” the yen had, veering away from 100 versus the dollar appears to have already broken down. For those looking for a catalyst, Japan’s upper house elections are coming up in July. While Abe already enjoys a two thirds majority in the lower house, his populist policies might get him a majority in the upper house as well, paving the way for changes to Japan’s constitution. Having said that, such changes may mostly be symbolic, as Japan has long found ways around Japan’s pacifist constitution to ramp up military spending. The only good news for the yen is that the currency’s rapid decline may temporarily halt the deterioration of its current account deficit. The current account matters, as once it is firmly in negative territory, Japan can’t rely on financing its huge debt to GDP ratio domestically anymore.
Detroit insolvent, EM Kevyn Orr says (Phil H.)
“The plan recognizes the breadth and depth of the financial crisis and offers key, initial guideposts for how best to continue moving forward and ensuring residents are receiving the critical services they need and expect,” Snyder spokeswoman Sara Wurfel said in a statement. “The governor and state are there in continued partnership.”
“The state’s pension fund is not being run efficiently and it’s not being run with the same kind of results as the city’s pension fund,” Broughton said. Mayor Dave Bing in a statement released Sunday said his office hasn’t yet conducted a “comprehensive review” of Orr’s 41-page financial and operating plan, which was required by law to be prepared and delivered to the governor’s office within 45 days of the appointment of the emergency manager.
“Any reasonably intelligent person would not argue that Detroit does not have serious financial problems,” said Patrick O’Keefe, founder and CEO of O’Keefe LLC, a Bloomfield Hills-based firm specializing in turnaround consulting and bankruptcy services. “Creditors will push back. But … they will take a haircut or restructuring of their indebtedness if it makes economic sense.”
No Mo’ PoMo? (Michael W.)
The theory all along has been that this $85 billion a month would seep down to Main Street to provoke spending (increasing the “velocity of money) and therefore “jump start” the economy. The theory has proven itself to be complete horseshit, of course. All it has done is suppress interest rates on bonds, depriving old people of income off their savings by so doing. It also artificially jacked up reckless lending on loans for houses, cars, and college degrees, juiced the share price of stocks, and boosted food prices. Meanwhile, an increasingly former middle class languishes in a purgatory of foreclosure, penury, and desperation. The Fed can’t really do anything to help them. It can only burden them with more easy-credit debt, especially their college-age children. But ours is a financialized economy and finance is too abstruse for most ordinary people to understand, so they just muddle along in a fog of dashed hopes and repossession.
A.M.K. Sinha, the director of planning and business development at Indian Oil Corp., has confirmed that they want to invest in Canada’s energy sector to gain access to crude and natural gas exports, however the lack of infrastructure makes it very difficult.
Old Technology Fuels New Energy Boom (Dimitriy)
In fact, the technologies underlying today’s petro-boom are not new at all; they are innovative applications and refinements of technology that has existed for decades. The boom’s core technology is hydraulic fracturing, or fracking. And drillers have been fracking wells for nearly 60 years. More than 1 million wells have been developed using fracking since the 1940s, according to EnergyFromShale.org, an industry-supported website.
Illegal Fishing Linked to Seafood Fraud in New Report (westcoastjan)
In February, Oceana released a study that found one-third of seafood tested across the country was mislabeled and not consistent with Food and Drug Administration guidelines. This new report follows up on Oceana’s findings by examining the underlying drivers that contribute to seafood fraud, including the global overexploitation of marine resources and the laundering of illegally caught fish in U.S. markets.
“We recognize that such inventions are becoming ever more prevalent, complex and diverse,” Kagan wrote. “In another case, the article’s self-replication might occur outside the purchaser’s control. Or it might be a necessary but incidental step in using the item for another purpose.”
Gold & Silver
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.”