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    Daily Digest 5/29 – Shakeout Threatens U.S. Shale Patch, The Thirsty West

    by DailyDigest

    Thursday, May 29, 2014, 2:48 PM


No, you can’t remotely turn on phones (jdargis)

Snowden saw programs that were widely successful at getting intelligence from phones, but he doesn’t understand the details. Yes, there may be a model of phone out there where the NSA was able to “remotely turn it on” (probably because a baseband processor was never truly off), but that doesn’t mean that when you turn off your iPhone that the NSA can do anything with it. Your iPhone, or Brian Williams’ phone, is safe from “remote turn on”. On the other hand, if you have an iPhone, the NSA is doing its best to find 0day vulnerabilities, in the baseband, in IOS operating system, in the browser, in apps, and so on. You are in danger — but still, they aren’t omnipotent over your phone.

Ron Holland on the U.S. Imperium, Coming Dollar Difficulties and the Advantages of Investing Abroad (RH)

Washington’s response will be much higher taxes and placing a financial iron curtain around America to keep your assets available for confiscation should the need arise. This includes a future emergency wealth tax plus possible gold and retirement plan asset confiscation or forced investment into a future collapsing Treasury market. But with crisis and disruption also comes opportunity for those aware of what is happening, both bad and good.

This Is What Happens When You Hack and Extort the ‘Bitcoin Jesus’ (jdargis)

The hacker goes by several names: Nitrous, Savaged, and Clerk1337, to name a few. When he contacted Ver, the bitcoin investor and an acquaintance–Jason Maurice, the chief hacking officer of Japanese security startup Wiz Technologies–already were engaged in what became an hours-long effort to regain control of multiple online accounts seized by the hacker, whom Ver believes acted alone. Nitrous had taken control of an old Hotmail account that belonged to Ver–apparently using public information to answer the email service’s security questions–and then he had used it to commandeer the internet domain, an address used by Ver’s computer parts business. Nearly 15 years ago, Ver used the Hotmail address to register the domain, and with control of the address, Nitrous managed to take over the domain by way of Ver’s domain name registrar,

The psychology of Soylent and the prison of first-world food choices (jdargis)

So far, I haven’t forgotten how to eat normal food, nor have I found myself forsaking the heritage and culinary traditions of my native people (though as a fifth-generation American with a mutt-like mix of western European ancestry, I don’t really know what the hell my heritage and culinary traditions would be other than “beer, assorted”). I’m certainly not abandoning social interaction and slurping Soylent in solitude. I am eating it by myself, but I work from home. Unless I’m out interviewing someone, my lunches are almost exclusively quick solo affairs. For what it’s worth, I like eating lunch alone—I’m introverted, and spending time in silence and contemplation, whether it’s with an artisanal báhn mì sandwich from Nobi (just down the street off NASA Rd 1—highly recommended!) or with a mug of Soylent, is all equally refreshing.

Not Enough Wind To Fill U.S. Renewable Energy Sails (James S.)

The U.S. government has begun the process of planning wind energy developments off the southern coast of New York, but if the history of East Coast wind projects is any indication, the effort may face a long fight. The Bureau of Ocean Energy Management wants private sector and public input regarding plans for commercial wind energy leases for an area about 11 nautical miles off the southern coast of Long Beach, NY.

Ukraine: The Real Energy Crisis Starts in June (James S.)

Kiev is feeling emboldened by the successful election of a new Ukrainian president and a bloody surge against separatists in the east, but in just a few days, Russia says it will twist the gas spigot, and there’s very little Kiev can do to stop that.

On June 3, Russia plans to reduce the gas supply to Ukraine — and hence, to Europe — if Kiev has failed to pay in advance for next month’s gas deliveries, the price for which has been doubled as a result of the political crisis.

Shakeout threatens U.S. shale patch as frackers go for broke (Northernlights)

Drillers are caught in a bind. They must keep borrowing to pay for exploration needed to offset the steep production declines typical of shale wells. At the same time, investors have been pushing companies to cut back. Spending tumbled at 26 of the 61 firms examined. For companies that can’t afford to keep drilling, less oil coming out means less money coming in, accelerating the financial tailspin.

The Thirsty West: 10 Percent of California’s Water Goes to Almond Farming (Nate)

California is the nation’s leading producer of almonds, avocados, broccoli, carrots, cauliflower, grapes, lettuce, milk, onions, peppers, spinach, tomatoes, walnuts, and dozens of other commodities, according to a 2012 Department of Agriculture report (PDF). The state produces one-third of our vegetables and two-thirds of our nuts and fruits each year. While fields in iconic agricultural states like Iowa, Kansas, and Texas primarily produce grain (most of which is used to fatten animals), pretty much everything you think of as actual food is grown in California. Simply put: We can’t eat without California. But as climate change–fueled droughts continue to desiccate California, the short-term solution from farmers has been to double down on making money.

It Takes How Much Water to Grow an Almond?! (Nate)

As the maps above show, much of California’s agriculture is concentrated in the parts of the state that the drought has hit the hardest. For example: Monterey County, which is currently enduring an “exceptional drought,” according to the US Drought Monitor, grew nearly half of America’s lettuce and broccoli in 2012.

Gold & Silver

Click to read the PM Daily Market Commentary: 5/28/14

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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  • Thu, May 29, 2014 - 5:40pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Crisis Back in Illinois as Tax Impasse Risks Rating


    1. Retail sales fall as Japan tax rise bites
    2. BOJ official: Easing likely to continue for years
    3. U.S. economy shrinks in first quarter for first time since 2011
    4. Russia’s new economic bloc with Kazakhstan, Belarus aims to challenge West
    5. Weight of the world: 2.1 billion people obese or overweight
    6. Virginia’s budget shortfall could top $1 billion
    7. France in €14bn tax shortfall as forecasts prove wildly off-base
    8. Crisis Back in Illinois as Tax Impasse Risks Rating
    9. LA Unified facing initial $35 million cost for teacher pensions

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  • Fri, May 30, 2014 - 9:10am


    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    The Most Toys.

    The money  and valuables found in this one house alone, would be enough to pay for  health insurance for every man woman and child in the USA for 12  years!


    My mouth is agape. Why? What disease is this?

    Behold the work of Satan.

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  • Fri, May 30, 2014 - 12:29pm

    Reply to #2

    Chris Martenson

    Status Platinum Member (Offline)

    Joined: Jun 07 2007

    Posts: 4501


    [quote=Arthur Robey]

    The money  and valuables found in this one house alone, would be enough to pay for  health insurance for every man woman and child in the USA for 12  years!

    A bit of hyperbole there.  The health care spend for Americans last year was ~$2.9 trillion.  Assume (lowball) that half of that was covered by insurance premiums/payments.
    $1.45 x 12 = $17.4 trillion
    I know they found a lot of money and valuables in that house, but very unlikely to have been even $50 billion let alone $17.4 trillion.
    Therefore the hyperbole was in the vicinity of 350x reality.

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  • Fri, May 30, 2014 - 1:17pm

    Reply to #2


    Status Diamond Member (Online)

    Joined: Sep 03 2008

    Posts: 3107

    just what does 22 billion in cash look like?

    Uh, I'm going to call bullshit on that "drug lord" post claiming there was 22 billion USD in one room.  1 billion dollars is 10 pallets x 5 feet high, or 10 tons in weight.  22 billion would be 220 pallets of money, and 220 tons in weight.  Do we imagine the house itself could have supported 220 tons of money, never mind being able to physically stuff that much money in one room?That room probably had 6 pallets x 4 feet high, or perhaps half a billion.  Still Real Money, but not 22 billion.
    According to FRED, the total currency in circulation of all types amounts to 1.27 trillion dollars.  So that alleged 22 billion in that room comes to 1.73% of the total dollars in circulation, worldwide.
    Easy fix: legalize drugs, and put both the DEA and those drug lords out of business at the same time.  And give Mexico the blessings of peace while we're at it.
    War On Drugs: let's just Declare Victory, and go home!

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  • Fri, May 30, 2014 - 2:19pm



    Status Bronze Member (Offline)

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    Posts: 144

    Find your medicine

    This just may anger the criminal 99% enough to revolt! It would appear this disease has discovered another stage.

    An example of one symptom of a society that is in end stage, I would expect more like this to follow. New information and shocking stuff just piles up on the porch out front while the inhabitants inside continue to pretend like all's well here, its just a bad cough sure to clear up in a day or two, besides I have this economic growth medicine that has been prescribed, it's sure to work! But as we see all to often, It's just too late to stop smoking at this point the withdrawal would be intolerable and beside that point one would be initiating a conversation with their demons. The miracle of rebirth awaits. So find your medicine and don't only use but share it!



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  • Fri, May 30, 2014 - 4:15pm



    Status Platinum Member (Offline)

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    Posts: 1837

    The Association of GUNS with Drugs

    The ubiquitous association of GUNS with drugs is very telling.  Guns have no DIRECT relationship with drugs themselves.  It is the social structures of the drug trade that require guns.

    Without relentless enforcement, drug prices would plummet and the drug lords would move into other endeavors where the money is.  Installing solar panels??  Community supported agriculture??  


    But is the "deep state" a major player in this fantastically profitable line of business?

    In 2001, fundamentalist Muslims took control in Afghanistan and prohibited opium production on religious grounds.  After the US invasion, heroin production was quickly restored–and has now risen to an all time high in 2013.  

    When US troops patrol fields of opium poppies, are they effectively protecting opium production?

    It appears that the drug cartels are firmly embedded within the western business community.  And they have enough "insider clout" to call in the military to protect production.  And we know that drug-money laundering systems are under (unacknowledged) high-level protection.  

    We know that many prison systems are private, for profit enterprises and the USA has the highest incarceration rates in the world, mostly for drug related offenses. 

    What would the cost of heroin be if any of us could stop at a road side stand and buy a dozen beautiful opium poppies?

    Any of our wonderful young men and women who are considering giving their lives as DEA agents to "fight the war on drugs" need to really think through how all of this works.



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  • Fri, May 30, 2014 - 5:18pm


    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    In defence of an Illusion.

    OK I shall succumb and spend a little time defending my ego.

    Everyone seems to have missed the Point of the drug story. The exact amount is startlingly irrelevant. The issue at stake is what could one man do with all that fictitious paper and all those toys? It is habit that makes us think that all that printed paper is valuable. How much did the Weimar print? How much did Zimbabwe?

    A hundredth of his stack would have given him a life of indolent ease.

    It is profoundly revealing that people from a (supposedly) capitalist country should immediately start counting his stack and not stand back and ask  "Why? To what Purpose?." Did this man's gluttony give him any pleasure? Did he sleep better because of it? Is any of this Real?

    What profits a man if he owns the whole world, but loses his soul?

    How does history judge Stalin?

    When he dies his carcass will still stink up the inside of his casket.

    Quantum physics strongly suggests that Reality is an Illusion. (And there is no theory that holds a more hallowed position in Science than QM)

    He achieved Nothing but lost his Legacy. Where is the Quality?

    Hence the reference to Satan and to Disease.

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  • Sat, May 31, 2014 - 1:54am



    Status Diamond Member (Online)

    Joined: Sep 03 2008

    Posts: 3107

    profoundly revealing

    Hmm, as someone who was just profoundly revealed, I'd like to be more specific about what just got revealed.  Namely, that I have a real issue with hyperbole.  Chris clearly does too.  I am sure we both get the "unnecessary excess" of the whole thing – that's kind of a given, as is the futility of the war on drugs, etc, etc.

    Going beyond that, though, why does the poster think it necessary to exaggerate things to the point where it just becomes unbelieveable?  And not by a little – by factors of 40, or of 200.

    What I believe that is profoundly revealed about the creator of this post (not you, Arthur) that they felt the need to exaggerate the value of an entire roomful of hundred dollar bills – and not by some rounding error, by factors of 40-200.  Half a billion in cash (a very impressive amount, at least in a "private stash") simply didn't have the desired impact for them.  Otherwise, why massively exaggerate?

    I dunno about you, but lies – even in a good cause – kinda makes me feel manipulated.

    There.  I stand revealed.  Profoundly.  I don't like being manipulated by lies, even in "a good cause."

    I just want to hear truth, and then be given the freedom to determine how I felt about it.


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  • Sat, May 31, 2014 - 3:58am

    Reply to #6


    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2225

    davefairtex wrote:I just

    I just want to hear truth, and then be given the freedom to determine how I felt about it.
    LOL.  Amen, brother 😉  I think we've all been somewhat disappointed along these lines of late.

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  • Sat, May 31, 2014 - 10:51am

    robie robinson

    robie robinson

    Status Gold Member (Offline)

    Joined: Aug 25 2009

    Posts: 857

    since we're all

    taking of our clothes…i immediately thought there was a misplaced decimal…maybe .22billion it sounds like alot but i wouldn't trade my farm (metaphor for life) for it.  robie,husband,father,farmer

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  • Mon, Jun 02, 2014 - 3:15pm



    Status Bronze Member (Offline)

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    Posts: 157


    Don't you suppose that drug lords are being cultivated like milk cows by the TPTB and once they're production drops they get culled just like any other form of live stock?

    John G.

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