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    Daily Digest 6/22 – Federal Reserve A Runaway Machine, America’s Affordable Housing Crisis

    by DailyDigest

    Monday, June 22, 2015, 1:51 PM


The Next Downturn Will Be Worse Than 2008 And What You Can Do About It? (pinecarr)

Get ready for the next crisis, it’s going to be far worse than 2008. Get out of debt. Money in the bank may not be there when you need it. A core holding in precious metals is a must. Invest in alternative energy for your home, it will pay a huge return. Be careful of your investments in Wall Street, they may not be there when you most need them. Most of all, be prepared!

“It’s Time To Hold Physical Cash”, Fidelity Manager Warns Ahead Of “Systemic Event” (pinecarr)

Today’s broken, “mangled” (to use Citi’s descriptor) markets come courtesy of: 1) frontrunning, parasitic HFTs, 2) the post-crisis regulatory regime which, to the extent it’s well meaning, was conceived by people who never had any hope of evaluating the likely knock-on effects of their policies, and 3) central banks, who have commandeered sovereign debt markets, leaving a trail of illiquidity and shrunken repo in their wake.

Federal Reserve System a Run Away Machine-G. Edward Griffin (pinecarr)

On war, Griffin contends, “War is primarily a psychological weapon. The threat of war, the fear of war, that is more useful to governments than actual war. Machiavelli said years ago said that the best way to keep people content and overlook the miseries they have to suffer under their own governments is to embroil the people in wars or rumors of wars. So, they would be so afraid of an enemy that they would tolerate any insult to their liberties as a means of preventing this thing they dread so much. That is certainly the prime operative today.”

Pay No Income Taxes, Legally! (Tiffany B.)

In its gracious wisdom, however, the U.S. Congress waved its magic wand and decreed that if a U.S. citizen is truly resident abroad — passing a residence “test” set by the inquisitors at the IRS — then a certain amount of their annual income would be “excluded” from U.S. tax. Not a tax credit, mind you: The income itself is simply not taxable by the United States. You still have to file a U.S. tax return, but if you’re under the threshold, your taxable income is zero, zip, nada.

Gold: Will This Summer’s Rally Mark A Cyclical Turning Point? (Taki T.)

It was another volatile week in the markets. The interest rate decision by the U.S. Fed on Wednesday was a non-event with no change in the Fed’s monetary policy. The market reacted with a spike in stocks, bonds, and precious metals, while the U.S. dollar took a dive. Also, the unfolding drama in Greece spooked markets and metals; stock markets are nervous while metals mostly get bids each time the Greek crisis flares up.

Anti-intellectualism Is Killing America (jdargis)

In a country where a sitting congressman told a crowd that evolution and the Big Bang are “lies straight from the pit of hell,” (link is external) where the chairman of a Senate environmental panel brought a snowball (link is external) into the chamber as evidence that climate change is a hoax, where almost one in three citizens can’t name the vice president (link is external), it is beyond dispute that critical thinking has been abandoned as a cultural value. Our failure as a society to connect the dots, to see that such anti-intellectualism comes with a huge price, could eventually be our downfall.

Every Single County in America Is Facing an Affordable Housing Crisis (jdargis)

The Urban Institute’s research shows how the number of extremely low-income households around the nation has grown since 2000. At the same time, federal housing-assistance programs have grown, but not nearly enough to keep up with need. The difference in the availability of affordable housing between 2000 and 2013 is immediately apparent from the maps, especially in states in the South (namely Alabama, Kentucky, and South Carolina), the Midwest (Ohio and Illinois), and the West (Nevada).

Texas Production Down, Gas Takes Biggest Hit (Tom K.)

There is no doubt that North Dakota, the USA’s second largest producer, is down since December. And I believe the data clearly shows that Texas, the USA’s largest crude oil producer by far, is down also. Then how is it possible that the EIA has US Production up so much since December?

In the chart above as well as the one below, the weekly production data are the averaged per month. The June weekly numbers are the average of the last two weeks reported data.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/19/15

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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  • Mon, Jun 22, 2015 - 3:26pm



    Status: Silver Member

    Joined: Jul 30 2009

    Posts: 3134

    BOJ has ample means to hit two percent price goal: Kuroda


    1. Korea's total debt may have reached $4.3 tril. U.S. dollars as of 2013: report
    2. Japan's fiscal strategy takes flexible approach to spending curbs
    3. BOJ has ample means to hit two percent price goal: Kuroda

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  • Mon, Jun 22, 2015 - 5:30pm



    Status: Platinum Member

    Joined: Jun 08 2011

    Posts: 2340


    Bernanke's response to Treasury Secretary Lew's proposal to replace Hamilton ($10 bill) with a woman.

    Say it ain't so, Jack (Ben Bernanke's Blog)

    [quote]"In the nineteenth century, a principal public role of central banks was to control banking panics, as the Bank of England would do quite successfully. Unfortunately, in large part because of populist opposition, neither the First Bank of the United States nor its successor, the Second Bank of the United States, would have their charters renewed. President Andrew Jackson led the opposition to the Second Bank, vetoing a bill passed by Congress to continue its operations. The expiration of the Second Bank's charter in 1836 likely worsened the very severe Panic of 1837, which was followed by a prolonged economic depression. The United States would go on to suffer numerous banking panics that would hamper its economic and financial development over the rest of the century.

    Hamilton's demotion is intended to make room to honor a deserving woman on the face of our currency. That's a fine idea, but it shouldn't come at Hamilton's expense. As many have pointed out, a better solution is available: Replace Andrew Jackson, a man of many unattractive qualities and a poor president, on the twenty dollar bill. Given his views on central banking, Jackson would probably be fine with having his image dropped from a Federal Reserve note. Another, less attractive, possibility is to circulate two versions of the ten dollar bill, one of which continues to feature Hamilton."[/quote]

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  • Tue, Jun 23, 2015 - 2:11am


    Arthur Robey

    Status: Platinum Member

    Joined: Feb 03 2010

    Posts: 1814

    Anti intellectualism

    You are doing a Stirling job populating the digest Pinecar.

    I see that the young man responsible for the shootings is sporting both the flags of the Republic of South Africa and Rhodesia, to my dismay. Give a dog a bad name and hang it. I wonder if he read the words on the Rhodesian flag? Sit Nomine Digna. (May I be worthy of the name.) 


    The tone of the article repulsed me. I do not enjoy having my values prescribed to me by anyone. Propaganda is for proper geese. I may be persuaded to abandon my values by reasoned argument supported by empirical evidence, but not by declarative statements. 

    The issue is not moot. In Rhodesia we had a clash of Values. The Rhodesians valued a well run economy, the opposition prefered equality and dignity. Forced to chose, which would you vote for? Civilization or dignity?

    Edit: I choose civilization.  There is no dignity in poverty.

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