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    Daily Digest 8/11 – Peak Gold vs. Peak Silver, A Plan To Kill College Debt?

    by DailyDigest

    Tuesday, August 11, 2015, 2:09 PM


Greece Says It Has Reached a Deal for a Third Bailout (jdargis)

“What we have is a technical-level agreement,” Annika Breidthardt, a spokeswoman for the European Commission, told a daily news conference on Tuesday, referring to the negotiations with the government in Athens. “What we don’t have at the moment is a political agreement.”

Hillary Clinton’s $350 billion plan to kill college debt (jdargis)

The compact’s base-line goals are to allow students to attend a four-year public college without taking out loans for tuitionor attend a community college tuition-free, push states to spend more on higher education, encourage institutions to cut costs while boosting graduation rates, and reward innovation.

Emergency Declared in Ferguson After Shooting (jdargis)

The declaration of a state of emergency by the county executive, Steve Stenger, empowered the county police force and its top commander, Chief Jon Belmar, to oversee police operations in and around Ferguson, where police units from surrounding towns arrived on Monday to bolster efforts to maintain calm. Gunfire on the fringes of demonstrations commemorating Mr. Brown’s death — which set off looting, arson and confrontations with the police last year — unnerved residents and demonstrators over the weekend.

Peak Gold vs. Peak Silver (Kevin J.)

According to the data from the two companies 2014 Sustainability Reports, Barrick consumed 20.8 gallons of diesel to produce an ounce of gold while Pan American Silver only used 0.2 gallons to yield an ounce of silver. Basically, it took Barrick 100 times more diesel to produce an ounce of gold in 2014 than it took Pan American Silver to produce an ounce of silver.

Three Ways to Boost Your IRA (Tiffany B.)

Here’s how it works. By law, all IRAs must have a U.S.-based “custodian” who’s responsible for safekeeping your IRA, keeping records, processing transactions, filing IRS forms, and other administrative duties. Most of the big custodians simplify things for themselves by offering a standard menu of U.S. securities and bonds. But there’s nothing to stop an IRA custodian from offering offshore investments, real estate, private mortgages, precious metals … and much more. In essence, some custodians allow you to manage your own IRA.

New design could finally help to bring fusion power closer to reality (Arthur Robey)

Fusion, the nuclear reaction that powers the sun, involves fusing pairs of hydrogen atoms together to form helium, accompanied by enormous releases of energy. The hard part has been confining the superhot plasma—a form of electrically charged gas— while heating it to temperatures hotter than the cores of stars. This is where the magnetic fields are so important—they effectively trap the heat and particles in the hot center of the device.

EPA Admits: Colorado River Spill Three Times Bigger Than Expected (Tom K.)

The agency has been diverting the ongoing release into two newly built settling ponds where the waste was being treated with chemicals to lower its acidity and to filter out dissolved solids before being discharged to Cement Creek.

Yes, Mr. President, We Remade Our Atlas to Reflect Shrinking Ice (jdargis)

Unveiling his most aggressive plan yet to combat climate change, President Obama on Monday referenced recent dramatic changes that National Geographic made to its atlas because of melting sea ice.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/10/15

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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  • Tue, Aug 11, 2015 - 3:08pm



    Status Platinum Member (Offline)

    Joined: Apr 27 2010

    Posts: 1435

    It's 460 AD in Rome: This won't be fixed

    Another American election cycle is upon us, and large numbers of people are lining up to pour their time and money into the sewer of politics, to be lost forever.

    This system will not be fixed. Period. This is Rome in 460 AD. The rulers, as in Rome, are liars, mad, or drunk (these days, drugged)… or all three.

    The “fall of Rome,” of course, was far more complex than we learned in school, but through all the many years of its decline, Rome was full of well-meaning people trying to reform and save it. And by the way, among the people who tried the hardest to keep the Roman game going were the Goths. They tried hard to keep Rome operational… and they failed too.

    Let me be clear on this: Once ruling hierarchies get beyond a certain point, they cannot be reformed. And I am sure that the modern West is beyond that point.

    • Do we really believe that central bankers will just lay down their monopolies?

    • Can we seriously expect a hundred trillion dollars of debt to be liquidated without any consequences?

    • Do we actually believe that politicians will walk away from their power and apologize for abusing us?

    • Do we really think that the corporations who own Congress will just give up the game that is enriching them?

    • Does anyone seriously believe that the NSA is going to say, “Gee, that Fourth Amendment really is kind of clear, and everything we do violates it… so, everyone here is fired and the last person out will please turn off the lights”?

    • And does anyone believe that the military-industrial complex will stop encouraging war, or that corporate media will stop worshiping the state, or that your local sheriff will apologize for training his cops to be viscous beasts?

    • Do we really believe that public school systems will ever stop lauding the state that pays all its bills?

    I could go on, but I think my point is made: This system will never allow itself to be seriously reformed. Trying to fix this is like trying to revive a long-dead corpse.

    The systems that rule the West will fail.

    Whether the wider Western civilization fails is up to us: Do we have civilization inside of us? Or was it all just a pattern that we followed?

    A Few Bits of Support

    I think an honest look around is all we really need to assess this situation – and I’m really not trying to play the “doomer” here – but a few bits of support seem to be in order. So, I’ll start with a quote from a man named Salvian, who lived in the Roman Empire a bit before 460 AD:

    Nobody thought of the state’s expenses, nobody thought of the state’s losses, because the cost was not felt. The state itself sought how it might squander what it was already scarcely able to acquire. The heaping up of wealth which had already exceeded its limit was overflowing even into trifling matters.

    Does this sound vaguely familiar? Salvian continues:

    But what can be said of the present-day situation? That old abundances have gone from us. The resources of former times have gone. We are already poverty-stricken, yet we do not cease to be spendthrift.

    Here’s another from Salvian:

    The state has fallen upon such evil days that a man cannot be safe unless he is wicked.

    With this last passage in mind, please consider Jon Corzine, Lois Lerner, and Hillary Clinton.

    Then think about Julian Assange, Edward Snowden, and Chelsea Manning.

    Who among these six told the truth? And who among them lied? Which have suffered for their actions? Which have not?

    And what of the British elites who seem devoted to chasing underage girls? When do they go to jail?

    Shall we really keep pretending that these systems have anything to do with righteousness? At some point, doesn’t that become embarrassing?

    As I’ve written before, back in the 1960s I was surrounded by well-meaning people who tried very hard to reform the system and to make life better. And now, the very same problems they were devoted to solving are the problems de jour: war, poverty, welfare, racism, and police brutality – the very same list!

    50 years of their efforts were fully wasted. Shall we really continue the waste? At some point, doesn’t patting ourselves on the back for accomplishing nothing become ridiculous?

    Even If…I think it’s very important to make this last point clearly:

    Even if this system doesn’t crash for another century, everything done within it is a waste.

    The decent people of Earth deserve better than this barbarity… much better.

    Not long ago, with these ideas in mind, I wrote this to a friend:

    It is fully corrupt, from top to bottom, and I don’t believe there are any “good guys” inside, waiting for “the right time.” It is OVER.

    I withdraw. I forsake them. I refuse to waste my energy on their politics. Humanity deserves better and I aim to do my part in building it.

    I will shed no tears when this system finally collapses – it will be a liberation.

    From here on, I’ll build new things and will have nothing to do with the old.

    My friend – a good man – agreed.

    The good and productive people of this world deserve something better than the abusive dominators that seek to control their every move, and we are more than capable of building it. But we have to stop waiting for permission from the lords of the status quo – they will never give us permission to bypass their domination.

    We have to make our own decisions and simply start building something better. We are able, and this system is unworthy of our efforts.

    Now would be a very good time to start.

    Paul Rosenberg

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  • Tue, Aug 11, 2015 - 3:44pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Currency War is headline of the day

    Google search link


    COMMODITIES-Shock China devaluation unhinges commodities

    Reuters UK44 minutes ago
    The devaluation could be the first shot of a global currency war. Benchmark Brent crude oil futures fell by 2.3 percent on the day to $49.46 a barrel, having …

    1. Story image for "currency war" from Times LIVE

      China devaluation heralds currency war as Greece gets deal

      gulfnews.com1 hour ago
      LONDON: China's surprise 2 per cent devaluation of the yuan on Tuesday pushed the dollar higher and raised the prospect of a new round of currency wars, just …

    2. Story image for "currency war" from Live Trading News

      China Enters the Currency War

      Live Trading News1 hour ago
      China's central bank on Tuesday devalued its yuan currency by nearly two percent against the US dollar, as authorities seek to push market reforms and bolster …

    3. Story image for "currency war" from Times LIVE

      What China's surprise currency devaluation means for its economy

      Washington Post (blog)1 hour ago
      … Stanley in Asia, told Bloomberg that the move raised the “possibility of a new and increasingly destabilizing skirmish in the ever-widening global currency war.

    4. Story image for "currency war" from Times LIVE

      Expert sees currency wars just getting worse

      gulfnews.com1 hour ago
      Beijing: China's shock move to devalue the yuan risks opening a new front in a currency war that stretches from the Eurozone to Japan as nations look to …

    5. Story image for "currency war" from Wall Street Journal

      China's Yuan Move Highlights Importance of Exchange Rates for

      Wall Street Journal1 hour ago
      Analysts don't see China's move as sparking a wider currency war, but rather as an indication that exchange rates will continue to play a central role in efforts by …

    6. Story image for "currency war" from Bloomberg

      Currency War Fears Over Yuan Devaluation – Presented by: The Aol

      Nasdaq1 hour ago
      China's surprise currency devaluation is rattling markets. Beijing's decision on Tuesday to slash its daily reference rate by 1.9 per cent has triggered the yuan's …

    7. Story image for "currency war" from Times LIVE

      China's devaluation raises currency war fear as Greece strikes deal

      Times LIVE1 hour ago
      If, however, we go back and it's just repegged … that is currency war." European shares fell. The pan-European FTSEurofirst 300 index was down 1 percent, led …

    8. U.S. Stock Futures Roiled by Chinese Devaluation

      Nasdaq2 hours ago
      The announcement sent financial markets reeling amid worries that China's move could spark a global currency war, in addition to inflaming worries about the …

    9. Story image for "currency war" from EconoTimes

      Chinese devaluation raises fear of Asian currency war

      EconoTimes2 hours ago
      Today's devaluation of Chinese currency is likely to have far-fetched impact over global trade and is likely to intensify the ongoing currency war in Asia.
      I said it a few weeks ago and will say it again…and even more strongly:

    This is just my personal warning: We are in crisis mode. Proceed with caution, since the chances of an unpleasant "event" by the end of the year have increased greatly.

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  • Tue, Aug 11, 2015 - 3:53pm



    Status Gold Member (Offline)

    Joined: Jan 01 2010

    Posts: 821

    Rickards Said Buy China Gov Bonds Months Ago!

    He said no QE in EU.   What else has he been wrong on recently?

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  • Tue, Aug 11, 2015 - 6:37pm



    Status Platinum Member (Offline)

    Joined: Apr 13 2011

    Posts: 1837

    Competetive Currency Devaluations: Is this the Poom?

    Does this mark the begriming of efforts to limit the extent of the "Ka" and initiate the "Poom?"

    And, should I be buying gold more quickly than before?

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  • Tue, Aug 11, 2015 - 6:49pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Yuan Devaluation Worsens Debt Woes for Local Governments and

    "Chinese companies, which have $529 billion in dollar and euro bonds and loans outstanding, could see their debt costs jump by $10 billion after the People’s Bank of China devalued the yuan by 1.9 percent, according to Bloomberg-compiled data. The weaker yuan increases expenses for firms that have to exchange it into those currencies to pay interest and principal on offshore borrowings."

    "China’s yuan devaluation on Tuesday is likely to hit local-government financing vehicles and Chinese companies that have turned to offshore markets in the last two years to help absorb a potentially crippling level of debt.

    The move chokes off a small pipeline to global funds for the country’s heavily indebted localities, and further seals off an increasingly insular financial system from a longer-term engagement with international funding markets and standards."

    "“This is a bigger story that can be tied into the performance of loans sold into commercial mortgage-backed securities,” said Richard Hill, a Morgan Stanley analyst who’s been raising concerns that Wall Street is financing increasingly risky property deals. Loosening standards are resulting in “faster defaults than what was observed prior to the financial crisis and potentially higher cumulative losses over time than the market may expect,” he said."

    "Brazil's Trade Minister Armando Monteiro on Tuesday said China's decision to devalue the yuan could hurt the country's manufacturing exports."

    "Exports will be hit and the trade deficit might widen after devaluation of Chinese currency yuan by 2 per cent, which is bound to raise the competitiveness of outbound shipments from the neighbouring country, the Federation of Indian Export Organisations (FIEO) said on Tuesday.

    "The devaluation will affect India's exports not only to China but to other countries also with increasing competitiveness of Chinese exports," the exporters' body said.

    "This may swell the trade deficit further, which is already touching $50 billion, as imports from China may increase particularly as China is having excessive capacity in diverse sectors of manufacturing," FIEO president S C Ralhan said."

    "The state oversight will help the county cut costs to fill its annual deficit of $52 million and work to manage a pension system that is less than 50 percent funded. The fiscal woes of Wayne demonstrate the remaining stress in the region of once-bankrupt Detroit. Three other Michigan municipalities and two school districts are operating under consent agreements."

    "The explicit point many economists are making is that China is slowing more than official data suggest. “We believe China's actual growth rate is much lower than reported — about 5 per cent versus the reported 7 per cent in the first half,” the Citi …"

    "Emerging market private sector debt has surged by an “enormous” 33 per cent of gross domestic product since the global financial crisis, heightening the risk of …"

    "Puerto Rico Highways & Transportation Authority: Bonds maturing July 2028 last traded for an average yield of 36 percent.

    The highway agency repays its $4.7 billion of debt with revenue from gasoline taxes. The struggling agency was relying on a $2.9 billion oil-tax deal to help repay loans its owes the GDB. With the island’s move to restructure debt, that borrowing fell through."

    "In Zulia state, 718 security personnel participated in a raid in the municipality of Guajira, uncovering a flush containing 176,000 liters of gasoline, 1,260 liters of vehicle oil, 2,000 cases of beer, as well as nearly 20 tons of essential food items, including two tons of sugar, three tons of rice, and a half ton of cooking oil. Additionally, 10 individuals suspected of hoarding were arrested."

    "Winds of up to 50 mph struck the area, causing visibility to drop to near zero in some areas.

    “Be ready for a sudden drop in visibility to near zero. If you encounter blowing dust or blowing sand on the roadway or see it approaching, pull off the road as far as possible and put your vehicle in park,” says the National Weather Service warning."


    Take the signs above as a good warning to prepare.

    Otherwise the best advice is:

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  • Tue, Aug 11, 2015 - 10:05pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Moody's Downgrades Brazil to Edge of Junk Territory

    1. Moody's Downgrades Brazil to Edge of Junk Territory 
    2. What yuan move means for September Federal Reserve rate hike
    3. US bonds jump on China FX move, Fed rate speculation
    1. Treasury yields hold lower after sale

      CNBC4 hours ago
      … as a surprise currency devaluation by China touched off safety buying and speculation that Federal Reserve policymakers will delay raising U.S. interest rates.

      US Government Bonds Strengthen Amid Shaky Markets
      In-DepthWall Street Journal8 hours ago

      Explore in depth (59 more articles)

    2. Story image for federal reserve china from The Globe and Mail

      Gold Ticks Up as China Move Fuels Fed Delay Hopes

      Wall Street Journal13 hours ago
      Gold prices nudged higher on Tuesday as some investors wagered that China's decision to devalue its currency will force the Federal Reserve to delay raising …

      Gold falls from 3-week high as dollar rises after China policy move
      Investing.com14 hours ago

      Explore in depth (135 more articles)

      China's yuan devaluation rattles forex market

      Yahoo! Maktoob News9 minutes ago
      China's unexpected sharp currency devaluation Tuesday shook the … and stirring concerns about a delay in the Federal Reserve's plan to raise interest rates.


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  • Tue, Aug 11, 2015 - 10:15pm

    Luke Moffat

    Luke Moffat

    Status Silver Member (Offline)

    Joined: Jan 25 2014

    Posts: 365

    Race to the Bottom

    But Brazil won. Don't they get a prize?

    In all seriousness, if citizens/subjects are still looking to their beleaguered governments for salvation then they need testing for psychosis. To quote Nietzsche, "In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule."


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  • Tue, Aug 11, 2015 - 11:34pm



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Currency Rout Goes Global as Jen Sees Risk of 50% Loss on China

    Currency Rout Goes Global as Jen Sees Risk of 50% Loss on China

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  • Wed, Aug 12, 2015 - 12:22am


    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    Always look on the Bright Side of Life.

    The Chinese will have less purchasing power in foreign countries.  Little old Egotist me is thinking of Australia. 

    Unaffordable housing is bad. Children need a roof over their heads.

    This may be the little magic pin that pops the pops the Australian housing bubble which was being supported by Chinese money. Chinese bad debts will have to be covered, and real estates sold. (Caveat. Unless the Chinese government just monetises the debt. How do the Chinese view jubilees?)

    It looks as though some self funded pension funds are going to come unstuck. Immigration will have to be accelerated to increase housing demand.  On the other hand the jobs market is in the toilet, so how are these people going to be fed?


    Oh what a tangled web we weave,
    When first we practise to deceive!
    Sir Walter Scott

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  • Wed, Aug 12, 2015 - 2:36am



    Status Gold Member (Offline)

    Joined: Apr 13 2008

    Posts: 1085

    Things that make you go hmmm...

    "Ravaged by Oil’s Collapse, Venezuela Now Has a Big Gold Problem" [bold mine]

    Venezuela’s reserves could fall below $15 billion if gold prices fall further or if the government decides to liquidate some of its holdings, according to Sarah Glendon, the head of sovereign research at Gramercy Funds Management.

    In April, Caracas-based newspaper El Nacional reported that the central bank swapped $1 billion of its gold reserves for a cash injection. And in 2012, then President Hugo Chavez repatriated most of the country’s gold reserves.

    Venezuela has drawn down reserves about $1 billion a month this year to counter the drop in oil prices, Morgan Stanley said in a note to clients last month.

    It’s a question of what weighs more in their mind: servicing their debt or holding their gold in Caracas?” Gramercy’s Glendon said from Greenwich, Connecticut. “It’s going to be extremely challenging for Venezuela to get another source of dollars.” [bold mine]

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  • Wed, Aug 12, 2015 - 4:51am



    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2225


    Here.  For (hopefully much) later…


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  • Wed, Aug 12, 2015 - 6:49am



    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    China currency falls for 2nd day after surprise devaluation

    "China's currency fell further Wednesday following a surprise change in its exchange rate mechanism that rattled global markets and threatens to fan trade tensions with the United States and Europe.

    The central bank said the yuan's 1.9 percent devaluation Tuesday against the U.S. dollar, which was its biggest one-day fall in a decade, was due to changes aimed at making the tightly controlled currency more market-oriented. That raised the prospect of still more declines, which would help struggling Chinese exporters at the expense of foreign competitors and might shore up flagging economic growth.

    On Wednesday, the yuan dropped another 1.6 percent. In theory, it could drop 2 percent every day given it can trade 2 percent around a rate that is set based on the previous day's closing value."


    "By late morning Wednesday, the Indonesian rupiah and Malaysian ringgit had fallen 1.4% and 0.8% respectively against the U.S. dollar, to fresh lows not seen since the Asian financial crisis in the late 1990s. The Philippine peso fell 0.3% to trade at 46.180 against the U.S. dollar, its lowest level in five years.

    The losses across Asia come after the yuan’s fall rattled global markets overnight. Investors worry that the yuan devaluation shows that China’s economic slowdown may be more severe than the government has been willing to admit through data, and that demand for dollar-denominated commodities will fall in a country that is the top consumer of many raw materials."

    The property investment news is a bad omen for China's economic growth, which has stalled as weak overseas demand cut into exports and industrial production, prompting the People's Bank of China to devalue the yuan on Tuesday.

    A cooling property market has weighed heavily on the economy over the past year. Real estate investment, which directly affects about 40 other business sectors in China, is considered to be a crucial growth driver.

    Try all you want, China.

    "I tried so hard
    And got so far
    But in the end
    It doesn't even matter
    I had to fall
    To lose it all
    But in the end
    It doesn't even matter"


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