The prediction of 21st May 2013 concerning the US market and subsequent developments illustrate that markets are largely driven by political events. For instance, the US market developed in lockstep with the Nikkei after the Governor of the Bank of Japan, Haruhiko Kuroda, announced the massive quantitative easing (QE) in Japan, in the beginning of April 2013.
We argue that the present crisis and stalling economy continuing since 2007 are rooted in the delusionary belief in policies based on a “perpetual money machine” type of thinking. We document strong evidence that, since the early 1980s, consumption has been increasingly funded by smaller savings, booming financial profits, wealth extracted from house price appreciation and explosive debt.
The Banker Who Was God (Ilene)
James Howard Kunstler commented on the Fed’s dilemma, “If the Fed were to reduce its purchases of this debt paper, nobody else would buy it. The reason the Fed buys the quantity it does in the first place ($85 billion-a-month) is that nobody else would touch it at the offered zero interest rates. The US Treasury and the mortgage bundlers could only sell the stuff if they paid higher interest rates. But the US government would choke to death on higher interest rates because its aggregate debt is so huge and the scheduled interest payments so gigantic that a one percent increase would destroy even the fantasy of economic equilibrium.”
“Bank of America’s practice is to string homeowners along with no apparent intention of providing the permanent loan modifications it promises,” said Erika Brown, one of the former employees. The damning evidence would spur a series of criminal investigations of BofA executives, if we still had a rule of law in this country for Wall Street banks.
Preliminary estimates of damages range between $3-billion and $5-billion, BMO analyst Tom MacKinnon said in a note to clients Monday. Losses after insurance could reach $3.75-billion, he said.
Bell accused of breaking labour law with unpaid interns (westcoastjan)
“Bell’s Professional Management Program (PMP) is a voluntary training program for post-secondary students, recent graduates and those in career transition,” said a statement from Bell spokesman Albert Lee.
“Participants get the opportunity to learn in a corporate environment with advanced technology and support from management and the Bell Mobility team.”
A Fiscal Train Wreck (Phil H., from 2003)
How will the train wreck play itself out? Maybe a future administration will use butterfly ballots to disenfranchise retirees, making it possible to slash Social Security and Medicare. Or maybe a repentant Rush Limbaugh will lead the drive to raise taxes on the rich. But my prediction is that politicians will eventually be tempted to resolve the crisis the way irresponsible governments usually do: by printing money, both to pay current bills and to inflate away debt.
Is Deep Sea Mining Worth The Risk? (Meilen L.)
There are 4kg of gold for every person on the planet buried in the sea, but
mining operations could pollute the ocean floor and destroy the fragile
eco-systems present. So, is deep sea mining worth the risk?
Gold & Silver
Provided daily by the Peak Prosperity Gold & Silver Group
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