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    Daily Digest 8/13 – Zimbabwe Adopts Yuan, Thinking Outside the Commodity Box

    by DailyDigest

    Thursday, August 13, 2015, 1:38 PM

Economy

Robert Kiyosaki & Bert Dohmen: Today’s economic threats and why everyone is ignoring them (Herman J.)

Think Apple is stock market gold? Think China is the new economic superpower? You thought wrong. In the years since losing Steve Jobs, Apple has failed to innovate while engaging in unparalleled corporate arrogance. China meanwhile is leveraged to the hilt at the same time their government is criminalizing liquidation. Today Robert and Kim talk with Bert Dohmen about these economic threats and why everyone is ignoring them.

Thinking Outside the Commodity Box: An Investment Primer for Lithium, Cobalt and Graphite (Kevin J.)

We've noticed that during the rare earth element bubble in 2010–2011, people didn't know what these niche minerals that go into everyday critical technologies were or where they were sourced. We've seen that knowledge grow in the last five years and downstream companies like Apple and Tesla are now aware of what the raw materials are and where they come from.

Disruptive technologies are completely new markets that are creating new value chains, products such as smartphones, electric vehicles and different types of energy storage. Growth in these new markets are affecting not only their own supply chains, but also those of existing industrial markets that rely on the same raw materials.

Gold Daily and Silver Weekly Charts – What Recovery – Peak Junk – Currency Wars (thc0655)

So if the people do not have the money to buy, and cannot keep increasing their private debt to service consumption because of the predatory lending rates and usurious fees in the system, guess what happens to aggregate demand? Duh.

This is not new. This is not unknown to economists. Thanks to Wall Street On Parade for reminding us of Franklin Roosevelt's campaign speech delivered at Oglethorpe University in 1932 during the depths of the Great Depression.

Zimbabwe adopts Chinese yuan as legal currency (Arthur Robey)

Zimbabwe, once a colony of the UK, has seen significant inflation over the years. Therefore, Zimbabwe has introduced several foreign currencies for relief. Meanwhile, there is no rush to reenact the Zimbabwean dollar, says Charity Dhiwayo, governor of the Reserve Bank of Zimbabwe.

In 2009, Zimbabwe adopted the US dollar and the South African rand. In 2014, Zimbabwe announced it would accept more foreign currencies, including the Japanese yen, the Australian dollar, the Indian rupee, and the Chinese yuan. However, in practice, the US dollar has been dominant in local markets.

Take the Gold, Leave the Cash (Tiffany B.)

If your gold is in a private, non-bank storage facility, such as a secure vault, however, the case is not so simple. Section 4.26.16.3.2 of the IRS Internal Revenue Manual states that “Other financial accounts generally encompass any accounts in which the assets are held in a co-mingled fund and the account owner holds an equity interest in the fund.” So whether your gold in a private vault — like the Perth Mint — is considered an “other financial account” by the IRS depends on whether the gold is “allocated” or “unallocated.”

‘Net Energy’ Deficit Preventing Economic Growth

The economy operates within a finite world, so at some point, a problem of diminishing returns develops. In other words, it takes more and more effort (human labor and use of resources) to produce a given quantity of oil or food, or fresh water, or other desirable products. The problem of slowing economic growth is very closely related to the question: How can the limits we are reaching be expected to play out in a finite world? Many people imagine that we will “run out” of some necessary resource, such as oil, but I see the situation differently. Let me explain a few issues that may not be obvious.

Did The EPA Intentionally Poison Animas River To Secure SuperFund Money? (Wendy SD)

A week before The EPA disastrously leaked millions of gallons of toxic waste into The Animas River in Colorado, this letter to the editor was published in The Silverton Standard & The Miner local newspaper, authored by a retired geologist detailing verbatim, how EPA would foul the Animas River on purpose in order to secure superfund money.

Study finds price of wind energy in US at an all-time low, averaging under 2.5 cent/kWh (Arthur Robey)

The continued decline in average wind prices, along with a bit of a rebound in wholesale power prices, put wind below the bottom of the range of nationwide wholesale power prices in 2014. Wind energy contracts executed in 2014 also compare very favorably to a range of projections of the fuel costs of gas-fired generation extending out through 2040. These low prices have spurred demand for wind energy, both from traditional electric utilities and also, increasingly, from commercial customers.

Australians Survived a 13-Year Drought by Going Low-Tech (Wendy SD)

If you think California’s four-year drought is apocalyptic, try 13 years. That’s how long southeastern Australia suffered through bone-dry times. But it survived. When the so-called Millennium Drought ended in 2009, residents of Melbourne, Australia’s second-largest city, were using half the amount of water they had when it began. A group of researchers from the University of California, Irvine, set out to investigate how Melbourne, a city of 4.3 million people, dramatically cut water consumption, and whether the city’s experience might hold lessons for California and other drought-stricken regions. The short answer? Salvation came from a $2,000 rainwater tank rather than a $6 billion desalinization plant.

Almost half of Americans live in places that could be struck by damaging earthquakes (Wendy SD)

Preparing oneself — emotionally and otherwise — for the ground to shake is something that half of Americans should consider doing. That's because about 143 million people in the 48 contiguous states live in areas at risk for potentially damaging earthquakes, according to U.S. Geological Survey research published Monday in the journal Earthquake Spectra.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/12/15

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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