• Daily Digest

    Daily Digest 6/26 – U.S. Shale An ‘Unmitigated Disaster,’ Putin’s Big Bet on Gold Is Paying Off

    by Daily Digest

    Wednesday, June 26, 2019, 7:20 AM


Economy

US shale an ‘unmitigated disaster’ with industry hundreds of billions in debt – shale pioneer (Saxplayer00o1)

One estimate from the Wall Street Journal found that over the past decade, the top 40 independent US shale companies burned through $200 billion more than they earned. A 2017 estimate from the WSJ found $280 billion in negative cash flow between 2010 and 2017. It’s incredible when you think about it – despite the record levels of oil and gas production, the industry is in the hole by roughly a quarter of a trillion dollars.

Company earnings look like they will keep sliding through the third quarter (Saxplayer00o1)

As profit reports just start to trickle in, the expectations are getting worse. Forecasters already were indicating negative earnings growth for the second quarter, but the outlook also has swung into red numbers for the third quarter, according to the latest FactSet calculations.

We’re already in recession, here’s what to do, says economist who called last bubble (Saxplayer00o1)

“I think we’re probably already in a recession, but I think [it will] probably be a run of the mill affair, which means real GDP would decline 1.5% to 2%, not to 3.5% to 4%, you had in the very serious [past] recessions,” said the president of money manager A. Gary Shilling & Co. He also lays claim to having forecast a global inventory glut that led to the 1973 to 1975 U.S. downturn.

Euro zone yields test lows as focus turns to under-fire Fed (Saxplayer00o1)

German 10-year yields were at -0.311%, a shade away from the record low of -0.329% hit last Tuesday. Dutch, Austrian and Finnish 10-year yields are also in negative territory. French 10-year yields were a shade above at 0.02% while Irish 10-year yields were at record lows.

UBS: World economy ‘one step away from global recession’ (Saxplayer00o1)

“U.S. tariff escalation is NOT our base case,” the bank said. “But if escalation is not averted in the next week or so … we anticipate making major changes to our forecasts.

It added: “We estimate global growth would be 75 [basis points] lower over the subsequent six quarters and that the contours would resemble a mild ‘global recession’” that would rival Europe’s debt crisis and the oil collapse of the mid-1980s, according to UBS analysts.

Putin’s Big Bet on Gold Is Paying Off (Saxplayer00o1)

The dollar, of course, remains the world’s biggest reserve currency, and gold and other currencies aren’t exactly displacing it worldwide. But then, the World Gold Council has noted an upward trend in net gold purchases by central banks that goes way beyond the Russian effort – even through Russia remains the biggest buyer. In the first quarter of 2019, central banks bought a record amount of gold, 715.7 metric tons.

A leveraged-lending bust could hit economy quicker than subprime blowup, says ex-FDIC boss Sheila Bair (Saxplayer00o1)

The amount of leveraged loans outstanding globally stood at $2.2 trillion as of 2018, according to a Bank of England report published in January. That was nearly double the size of the U.S. subprime mortgage market in 2006.

The Boomers Ruined Everything (Adam)

But it’s not just aging. In a variety of different areas, the Baby Boom generation created, advanced, or preserved policies that made American institutions less dynamic. In a recent report for the American Enterprise Institute, I looked at issues including housing, work rules, higher education, law enforcement, and public budgeting, and found a consistent pattern: The political ascendancy of the Boomers brought with it tightening control and stricter regulation, making it harder to succeed in America. This lack of dynamism largely hasn’t hurt Boomers, but the mistakes of the past are fast becoming a crisis for younger Americans.

Myanmar shuts down internet in conflict areas as UN expert warns of potential abuses during blackout (Sparky1)

The unrest caused by the anti-Rohingya crackdown and exodus has been exacerbated by conflict between the Tatmadaw and the Arakan Army, a Buddhist insurgent group, which has been fighting with the government since last year. More than 35,000 civilians have been displaced by the conflict, according to the United Nations, with violence spilling over into neighboring Chin state.

US releases review on removing vegetation to stop wildfires (Sparky1)

Giant rangeland wildfires in recent decades have destroyed vast areas of sagebrush steppe that support some 350 species of wildlife. Experts say the blazes have mainly been driven by cheatgrass, an invasive species that relies on fire to spread to new areas while killing native plants, including sagebrush.

Managing climate change will require increased energy usage (Sparky1)

The model produced a baseline simulation for comparison, in which population and income growth were the primary driver of energy demand. Compare the baseline, modest global warming increased energy demand between 11 and 27 percent. Vigorous warming increased energy demand between 25 and 58 percent. Simulations showed Europe, China and the United States experienced the greatest increase in energy demand.

Colorado’s snowpack is 40 times normal after rare summer solstice dump (thc0655)

At Arapahoe Basin, so much snow has fallen since the winter that it has stayed opened for skiing on weekends through the month. It declared Saturday a powder day after a fresh coating of two inches. The resort plans to open again next weekend and possibly over the July 4 weekend, its blog says.

The snow was triggered by an unusually cold pool of air at high altitudes over the western United States combined with a vigorous weather disturbance that ejected out of the Southwest.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/25/19

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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8 Comments

  • Wed, Jun 26, 2019 - 2:28pm

    #1

    sand_puppy

    Status Platinum Member (Offline)

    Joined: Apr 13 2011

    Posts: 1961

    3+

    Whatdoyaknow? The power of the search engine to shape thinking

    Whaddayaknow? Only what Google, Facebook, wikipedia, etc. want you to know. You’ll think what they tell you to think because you’ll know what they want you to know.

    Google Buries Mercola in Latest Search Engine Update

    STORY AT-A-GLANCE

    • This year, we’ve seen an unprecedented push to implement censorship across all online platforms, making obtaining and sharing crucial information about health in general, and vaccines in particular, increasingly difficult
    • Google’s June 2019 update, which took effect June 3, has effectively removed Mercola.com from Google search results
    • When entering a health-related search word into Google, you will no longer find Mercola.com articles in the search results. The only way to locate Mercola articles is by adding “Mercola.com” to the search word(s) in question
    • Mercola’s fully referenced content has been at the top of health search results for over 15 years
    • If undesirable pages don’t vanish automatically in the new algorithm, Google’s quality raters will manually manipulate crowdsourced relevance to bury the page or pages

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  • Wed, Jun 26, 2019 - 3:22pm

    #2

    Chris Martenson

    Status Platinum Member (Offline)

    Joined: Jun 07 2007

    Posts: 4740

    6+

    Google's New Motto - Do Evil

    It used to be “Do no evil” but that was too wordy and not actually in accordance with Google’s true day-to-day operations.

    So “Do evil.” it is.

    Of the many things, Google turns out to be far more of a meddler than Russia ever was or could be.  Google has been busy demonetizing and platforming most of the content that I personally valued.  Even the really kind, never a harsh word spoken “Demolition Ranch” which has the misfortune of being a young man excited about guns and telling, testing, and sharing that with a very large audience (in the millions) has been consistently demonetized for unknown reasons.

    Most of our peers, including Charles Hugh Smith report ad revenues declining as Google takes more and more for itself.

    I just ran a search on Google using the two words “Reddit conspiracy” thinking that, naturally, the subreddit community with 961,000 active subscribers would appear at the top of the search.

    Nope. Not even returned on the first page:

    ——————–

    I go to that subreddit pretty regularly because they routinely talk there about things that really ought to be talked about elsewhere but, we’re so far down the rabbit hole, are considered “conspiracy” to even broach.

    Things like our entirely insecure voting systems (still)…I mean, why is that *not* a topic of ordinary conversation?

    Here’s the top two subjects when I just went there:

    —————-

    Oops.  There’s the problem right there…noting the de-platforming of Project Veritas which snagged Google being evil.

    Naturally any person or entity that dares to discuss the ways in which Google is anything but a fair, and open platform with equal rules and access (a necessity for the equivalent of a public utility, eh?) is going to be targeted for suppression by Google.

    Hardly good behavior for an overt monopoly that would like to remain that way.

    More to the point, how did we get to the point where vast swaths of people, such as those at Google, have come to be secure in the “knowledge” that there are such things as “dangerous ideas?”  It wasn’t that long ago that I was taught in grade school that the first amendment stood for the importance of dissenting, even unpopular, ideas in the public sphere.

    Now it’s a given to Google employees that there are bad ideas which must be kept from the public.   It’s quite a patronizing stance.  Also, a very slippery slope that these same people could well find themselves on the wrong side of before too long, much to their dismay.  But you’d have to have at least a semi-functional knowledge of history to know that.

    Rome slips further into the abyss…

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  • Wed, Jun 26, 2019 - 4:51pm

    Reply to #1
    ezlxq1949

    ezlxq1949

    Status Bronze Member (Offline)

    Joined: Apr 29 2009

    Posts: 247

    4+

    Try DuckDuckGo instead of Google

    Mercola shows up quite readily.

    Their search results aren’t always as comprehensive as Google’s but they have been getting much better over the past few years. Plus DuckDuckGo claim that they don’t track us, ever. So they should be a useful alternative until The Borg inevitably try to assimilate them.

    In order to do my little part towards starving the Beast, I have abandoned Google as far as possible (but still attend Youtube University), never buy anything from Amazon, involve myself with Apple to the least extent possible (not easy when mine is a Mac household), and use no social media.

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  • Thu, Jun 27, 2019 - 5:20am

    #3

    sand_puppy

    Status Platinum Member (Offline)

    Joined: Apr 13 2011

    Posts: 1961

    5+

    Silencing dissent on Facebook

    Part of the trick in establishing tyranny is selling the policies to imprison your people to those very people that will need imprisonment.  You must get them to buy the walls of the cage themselves, with their own money.

    Trick 1

    Classify politically motivated violence, when it is directed AT us, with a negative pejorative term.  Say, I don’t know, how about “terrorism.”  Nobody likes terrorists so you can kill and imprison them without public objection.

    Trick 2

    Classify political violence when performed BY us, as “protecting the people” and preserving the “social order.”

    Trick 3

    Abolish the markers of cultural identity that gives group coherence under the guise of being “inclusive.”  Take that “offensive cross” off of the top of your cathedral as it offends the non-Christians.

    Trick 4

    Categorize dissent as “hate speech.”  Nobody will defend “hate.”

    Facebook joins with the French government to silence hate speech.

    “Hate speech is no longer considered part of freedom of speech, it’s now on the same level as terrorism,” said lawyer Sonia Cisse with Linklaters. “It is a strong signal in terms of regulation.”

    The move may be connected to a new law currently under discussion that would see tech companies fined up to four per cent of their global revenues if they fail to remove hate speech from their platforms. Germany already has a similar law, with fines of up to €50 million if fake news or hate speech isn’t removed within 24 hours.

    France’s current hate speech laws cover ethnicity, nationality and race, along with religion, sex, sexual orientation, gender identity and disability; it’s illegal to  incite discrimination against, hatred of, or harm to any of these groups.

    Racism, anti-Semitism, racial hatred and justification are not opinions. They are offences,” official literature explains. “All speeches, cries or threats made publicly, that is to say by any public means of communication, are punishable. Including on the internet.” –Forbes

     

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  • Thu, Jun 27, 2019 - 7:46am

    Reply to #3
    Rwrek

    Rwrek

    Status Member (Offline)

    Joined: Feb 09 2012

    Posts: 19

    3+

    Facebook Dissent - Add Google to "List"

    Agreed Sand Puppy.

    If you add Google Exec being outed for trying to prevent 2020 “Trump Problem”

    Google Executive Admits Election Meddling to Prevent Trump Winning in 2020

    No matter who you support, this should scare the daylights out of everyone.

    Orwell’s 1984 on “Crack”

     

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  • Thu, Jun 27, 2019 - 10:35am

    Reply to #3

    Mark_BC

    Status Bronze Member (Offline)

    Joined: Apr 30 2010

    Posts: 311

    I wonder how far this thought control can go. It requires a cohesive society dependent on electronic communication. Especially if they try to abolish cash. But a cohesive society is what will fail first after the reset because unemployment will skyrocket. We here understand why, ultimately due to peak oil and environmental scarcity which cant support further growth so all those associated jobs will disappear. When half the population becomes unemployed they will riot. How do the powers that be maintain a cashless economy and reliable internet on which this depends, when half the people are on the streets rioting and destroying stuff? They could try ubi to keep people from rioting but who is going to pay for that? The dollars will be worth less (worthless?). Only the rich could pay for ubi but they are the ones who have stolen from us.

    I think the powers that be are under the delusion that after the reset happens, society will be able to continue on similar to today once the initial turbulence settles down and the new financial system is established. Good luck with that and your cashless society. This will be their ultimate ownfall.

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  • Thu, Jun 27, 2019 - 10:08pm

    Reply to #1
    TechGuy

    TechGuy

    Status Bronze Member (Offline)

    Joined: Oct 13 2008

    Posts: 306

    Re:Google Buries Mercola in Latest Search Engine Update

    Ran a google search and came up with over 5M hits. Twitter, Books, articles,

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  • Thu, Jun 27, 2019 - 10:17pm

    Reply to #2
    TechGuy

    TechGuy

    Status Bronze Member (Offline)

    Joined: Oct 13 2008

    Posts: 306

    1+

    Google and 2020 elections

    I doubt Google has much of an impact on Presidential elections, 90% of voters have a bias to one party or another since grade school. Trump won because Millennials & Blacks absolutely hated Hillary:

    Millennials: Hillary Goldman Sacks connections (remember the Occupy Wall Street Movement) and that she was able to push Bernie aside with Super Delegates not selecting the Primary winner: Bernie

    Blacks: Very ticked off for sending +2M black men to Prison with long terms over minor offenses.

    Both groups simply didn’t show up to vote and let Trump win.

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