“Let me try the question a different way,” Warren persisted. “How big do the biggest banks have to get before we consider breaking them up?” she asked, adding that the largest American banks are 30 percent larger than they were five years ago. “Do they have to double in size? Triple in size? Quadruple in size? Before we talk about breaking up the biggest financial institutions?”
So it was our expectation that while if not slowing down its rate of money-creation (i.e., reserve-production) – something that won’t happen for a long time as it would crash the stock market – the Fed’s reserves would at least revert to being accumulated at US-based banks. No such luck. In fact as the latest H.8 report demonstrates, as of the most recently weekly data, the Fed’s policies have led to foreign banks operating in the US holding an all time high amount of reserves, surpassing $1 trillion for the first time, or $1,033 billion to be precise.
Hyperinflation – 10 Worst Cases (westcoastjan)
In just the one month of January 1994 inflation rose by 313 million %. Prices doubled every 34 hours (which is nothing compared to Hungary). The currency ended up getting revalued 5 times in all between 1993 and 1995, all to no avail. The cause? A recession triggered by overseas borrowing and an on-going political struggle in the 1980s and the following decade.
Meanwhile, two-thirds of households with no wealth accumulation — meaning the value of their assets was less or about the same as the amount of their household debt — didn’t expect to get any further ahead in the next three years, the study said.
Scandals & Economic Disasters (GE Christenson)
There is no shortage of scandals in Washington DC, New York, and London; and, there is an excess of monetary heroin, Quantitative Easing, in Europe, the UK, Japan, the USA, and elsewhere. (When will they ever learn?)
The S&P 500 is hitting new highs, and gold and silver are sitting roughly at two-year lows. Strange and stranger every day…
What should we make of it? Let’s ask the really intelligent old guys who have seen it all.
“Five euros only, just 5 euros,” whispered Maria, a young prostitute with sunken cheeks and bedraggled hair, as she pitched herself forward from the shadows of a graffiti-riddled alley in central Athens on a recent weeknight.
Many prostitutes have been selling their services for as little as 10 to 15 euros, a price that has shrunk along with the income of clients afflicted by the crisis. Many more prostitutes are taking greater health risks by having unprotected sex, which sells for a premium. Still more are subject to violence and rape.
Venezuela aims to end toilet paper shortage (westcoastjan)
“Price controls, for example, act as a disincentive to local producers, forcing them to cut output,” says the survey organisation Consensus Economics.
“The resulting scarcity forces up inflation, defeating the entire purpose of price controls in the first place.”
he rate at which money circulates in our economy is the lowest that it has been in more than 50 years. It has been steadily falling since the late 1990s, and this is a clear sign that economic activity is slowing down. The shaded areas in the chart represent recessions, and as you can see, the velocity of money always slows down during a recession. But even though the government is telling us that we are not in a recession right now, the velocity of money continues to drop like a rock. This is one of the factors that is putting a tremendous amount of deflationary pressure on our economy…
The technical term for this is financial repression. After World War II, all countries that had a big debt overhang relied on financial repression to avoid an explicit default. After the war, governments imposed interest rate ceilings for government bonds. Nowadays they have more sophisticated means.
Stockholm riots throw spotlight on Swedish inequality (westcoastjan)
Despite the assertion, some local people said the police had been heavy-handed and there is clearly much anger at the shooting dead by police of an elderly man wielding a knife 10 days ago.
Tax avoidance: Developing countries take on multinationals (westcoastjan)
A new law in Zambia, which comes into force this month, requires mining companies to bring the proceeds of export sales back to Zambia. Once in Zambia, the country’s tax authorities will scrutinise dividends and other payments to see if they are justified before they leave the country.
Straw bale homes for LILAC co-housing residents (westcoastjan)
Their scheme has been hailed as pioneering, not just because of its eco-friendly ethos but because of the way it is financed and the fact that it is also based around the Danish co-housing model.
Toxic Rice Causes Concern In China (westcoastjan)
A number of rice mills in the Chinese province of Hunan have been been closed down after dangerous levels of cadmium were found in samples, according to reports,
Meanwhile, some rice products have been recalled and others impounded.
The original concept was to establish technology to breed aquarium fish before the company switched to the recycling system and eventually evolved into the algae production business.
Robert said algae production was part of the fish breeding concept.
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.”