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    Daily Digest 9/14 – CA Wildfires Intenisfy, How Gov’t Leaves U.S. Vulnerable To Cyberattacks

    by DailyDigest

    Monday, September 14, 2015, 3:48 PM

Economy

Records: Energy Department struck by cyber attacks (jdargis)

“The potential for an adversary to disrupt, shut down (power systems), or worse … is real here,” said Scott White, Professor of Homeland Security and Security Management and Director of the Computing Security and Technology program at Drexel University. “It’s absolutely real.”

How the U.S. government is leaving us vulnerable to cyberattacks (jdargis)

Malicious hackers often gain access to sensitive data and systems by targeting a low-level employee—one who may not have received any useful security training—and escalating their privileges until they gain the desired level of access.

The solution, according to the MIT team, is twofold: completely redesign the world’s computers to eliminate inherent flaws and implement a stronger method of authentication.

Why Commodities And Precious Metals Are True Contrarian Opportunities (Taki T.)

For price and technicals, we use the CRB index, a proxy for the commodities complex. Note that petroleum has a large weight in this index. As the two decade chart reveals, the CRB index touched the 1999 and 2001 lows in August of this year during a panic sell off. The CRB is trading 58% lower than its 2009 highs, while it is down 48% from its 2011 highs. These are huge corrections.

Climate changes drives El Nino, pointing to a hot summer ahead (Arthur Robey)

The 20-page report from Britain’s Met Office, entitled “Big changes underway in the climate system?”, highlights current transitions in major weather patterns that affect rainfall and temperatures at a regional level.

An El Nino weather pattern centred in the tropical Pacific Ocean is “well underway”, the report says, and shaping up to be one of the most intense on record. Very strong El Ninos also occurred over the winters of 1997 and 1982.

California wildfires threaten mountain towns as blaze intensifies (jdargis)

A blaze that covered one square mile on Thursday quickly burned more than 100 square miles and was only 5% contained by Friday evening. By Saturday afternoon firefighters had gained some ground and containment had increased to about 10%, fire officials said.

Four firefighters were injured on Saturday, sustaining second-degree burns, officials said.

Opec wins as non-cartel oil output suffers biggest drop in 20 years (tk)

Oil prices have plunged 50pc this year with Brent crude trading well below $50 per barrel, a level which makes it uneconomical for many producers. Opec, under pressure from Saudi Arabia, has allowed oil prices to fall in an effort to protect its shrinking market share especially from the rise of shale oil drillers in the US.

However, the strategy has caused deep divisions within the group, which controls a third of the world’s crude. Venezuela has formally asked for an emergency meeting of Opec to review its current strategy.

Monsanto Stunned – California Confirms ‘Roundup’ Will Be Labeled “Cancer Causing” (pinecarr)

Now that California EPA’s Office of Environmental Health Hazard Assessment (OEHHA) has filed its “notice of intent to list” glyphosate as a known cancer agent, the public will have until October 5th to comment. There are no restrictions on sale or use associated with the listing.

How Caterpillar Poop Might Become The Next Great Pesticide (jdargis)

What makes this of interest to farmers is that Penn State researchers working to isolate exactly which compounds in the poops trigger those fungal defenses. If they can be isolated and extracted, we’ll end up with a protection against fungal infections that comes straight from nature, one that’s unlikely to have any unwanted environmental impacts because it merely triggers the plant to do what it’s evolved to do anyway. Pretty cool! And all thanks to caterpillar poops.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/11/15

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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12 Comments

  • Mon, Sep 14, 2015 - 4:12pm

    #1

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Repost Of Today's News

    China grabs unused funds to spend on new projects as growth slows

    Reuters – ‎30 minutes ago‎
    "Overall, the economy is very weak and the central bank may have to continue cutting interest rates and banks' reserve requirement," said Zhou Hao, senior economist at Commerzbank AG in Singapore, adding he thought growth would dip below 7 percent in …

    China Benchmark Money Rate Near Two-Week Low as Data

    Bloomberg10 hours ago
    China's benchmark money-market rate held near a two-week low on speculation the central bank will prevent funding costs from rising as data indicate the …
     

    China fixed-asset investment tumbles to lowest since 2000

    Chicago Tribune – ‎19 hours ago‎
    BEIJING — China's fixed-asset investment rose at the slowest pace in 15 years and industrial production trailed analyst estimates, raising further question marks over the effectiveness of government efforts to revive growth. Investment excluding rural …
     

    MarketsBrazil: recession seen deepening in 2015, 2016

    Financial Times2 hours ago
    The Brazilian central bank's latest weekly survey of what private sector economists expect Latin America's largest economy to deliver is out. The picture isn't …

    Brazil Downgrade Leaves Firms With $270 Billion Debt Hangover

    Bloomberg – ‎1 hour ago‎
    Brazilian companies that piled on $270 billion in international debt during the boom years are seeing their funding costs rise after the nation's credit rating was cut to junk. The spread for five-year credit-default swaps to protect against a

    UPDATE 2-Last chance for Brazil's Rousseff to save mandate

    Reuters13 hours ago
    Folha also called for an end to some pension benefits and economic subsidies, as well as temporary cuts in health and education programs that are currently …

     

    Malaysia to Inject More Money Into Economy

    Wall Street Journal – ‎3 hours ago‎
    Last week, Malaysia's central bank said GDP would grow 4.5% to 5.5% for the year, down from last year's 6%. “I think the big questions now is whether the ringgit will be subjected to more pressure and that could come more from factors like the
     

     

    Malaysia government bond sale draws fewest bids since December

    The Edge Markets (press release) (registration) – ‎6 hours ago‎
    The 4 billion ringgit ($928 million) sale of sovereign notes due 2019 had a bid-to-cover ratio of 1.53 times and an average yield of 3.759%, according to central bank data. That's the lowest ratio for a government bond auction since December, when a 3

     

    China's investment, factory output lower than expected

    The Straits Times – ‎17 hours ago‎
    "Overall, the economy is very weak and the central bank may have to continue cutting interest rates and banks' reserve requirement," he said, adding that he expected growth to very likely dip below 7 per cent in the July-September quarter. Some
     

    Sluggish China Output and Investment Signal More Stimulus

    Bloomberg11 hours ago
    … authorities to 3.2 trillion yuan ($500 billion) to help ease debt pressure. … of local government debts, special financial bond and expedited bond issuance.

    Turkish Lira Slides to Record as Bank Stocks Drop on Citi Cut

    Bloomberg1 hour ago
    “The possibility of the Fed moving into a policy tightening phase, combined with the well-known reticence from the Turkish central bank to adjust its own policy, …
     

    India's Inflation Eases, Adding Rate-Cut Pressure on Rajan

    Bloomberg2 hours ago
    India's two main inflation gauges showed a continued easing, adding pressure on central bank Governor Raghuram Rajan to cut interest rates for a fourth time …
     

    Draghi Seen Expanding QE by Economists Fearing Shallow Recovery

    Bloomberg9 hours ago
    Mario Draghi's promise that the European Central Bank is willing to step up its stimulus if needed is resonating with economists, who see the euro-area recovery …

     

    Goldman Sees Yen Weakness as BOJ Moves Toward Increased

    Bloomberg10 hours ago
    The common currency will decline to 95 cents next year as the European Central Bank expands its asset-buying program to meet its inflation goal, they wrote.

    It's time to redistribute Japan's wealth

    Nikkei Asian Review10 hours ago
    There are growing indications that the Bank of Japan needs to ease off its monetary reins even further. I believe that if the ongoing situation persists, the central …

    Rattled by JPMorgan Exit, Nigerian Bonds Now Face Downgrade Risk

    Bloomberg9 hours ago
    s announcement last week that Nigerian debt will be removed from its … a money manager at Aberdeen, who sold all his Nigerian sovereign debt last year, said …

    Global investors flock to Canada housing bonds amid bubble

    The Globe and Mail16 hours ago
    The demand comes amid record household debt and lofty house valuations, which … “Our rating of the banks and the sovereign take into account those risks.”.

    RPT-INVESTMENT FOCUS-Brazil's credit downgrade may herald more 'fallen angels'

    Reuters – ‎22 hours ago‎
    Credit default swaps (CDS), which can be used insure against or to bet on national or corporate debt problems, forsee a wave of EM downgrades, according to an S&P Capital model called Market Derived Signal. "We will continue to see CDS spread pricing …
     

    Pimco, Fidelity Stung by Collapse of Petrobras's 100-Year Bond

    Bloomberg4 hours ago
    That's four times the average loss for emerging-market company debt. … S&P, which lowered Petrobras's rating one day after its downgrade of Brazil, signaled …

    Petrobras spending plan already obsolete, new cuts likely
    Hellenic Shipping News Worldwide17 hours ago

    Fed Rate Increase Too Late for BlackRock, Alpine Muni Cash Funds

    Bloomberg2 hours ago
    Tax-exempt money-market funds, which invest in high-rated, short-term debt and … you know, the last thing we want is some sort of downgrade event to trigger a …

    Credit funds may face panic selling as default risks grow (India)

    Economic Times17 hours ago

    "On an average, investors are now on high alert as and when any downgrade happens," said Rahul Goswami, chief investment officer, debt, ICICI Prudential

    China, Brazil Among Emerging Markets at Risk of Bank Crisis

    Bloomberg5 hours ago
    BIS separately said that the amount of international debt securities issued by emerging-market non-financial companies stood at $75 billion in the first half of this …
     

    China Inc. Resists Li Reform Push as Debt Swells Most Since 2012

    Bloomberg13 hours ago
    Total debt at 1,003 Shanghai-traded non-financial firms increased 18 percent in the last 12 months, the fastest pace in three years, to a record 868.3 billion yuan …
     

    Polish Budget at Risk as Ruling Party Bids Up Campaign Promises

    Bloomberg5 hours ago
    Compared with Poland's budget deficit plan of 46.2 billion zloty this year, such … fiscal rules which force spending curbs if public debt tops safety thresholds.

     

    China faces economic hard landing risk

    Yahoo7 News – ‎15 hours ago‎
    Still, gloomy perceptions of China are growing and the signs are troubling: a surprise currency devaluation, persistently weak manufacturing, and rising debt defaults, with a share price collapse to boot. Government meddling in the stock and currency
     

    Finance Ministry urged to tackle rising national debts

    The Korea Herald6 hours ago
    He criticized the authority for sitting idly while the fiscal deficit is snowballing. … budget proposal for youth employment by 362.9 billion won, or 20.6 percent, …

    State Health Insurance Payments Could Be Stopped During Budget

    Progress Illinois22 minutes ago
    Illinois payments to providers of health services for state workers, retirees and university staffers could be halted during the budget impasse, the Rauner …

    Pensions crisis: Millions are saving too little to avoid poverty in old age

    Express.co.uk16 hours ago
    BRITAIN faces a pensions timebomb after it emerged almost half the … Experts warned last night that the pension system faced meltdown unless drastic action …

    China banks' Q1 capital outflow $109 bln, may persist: BIS

    Reuters – ‎Sep 13, 2015‎
    Meanwhile yuan-denominated deposits held by the rest of the world at Chinese banks fell, amounting to a net outflow of almost $109 billion, the report added. While yuan deposits partially recovered in the second quarter, thanks to exchange rate

    China's Stocks Decline Most in Three Weeks on Slowdown Concerns

    Bloomberg11 hours ago
    … from equities on mainland and Hong Kong bourses during the week to Sept. 9, a ninth straight week of outflows, according to China International Capital Corp.

    China's Yuan Positions Drop by Record Amid Currency Defense

    Bloomberg1 hour ago
    Yuan positions at China's central bank and financial institutions fell by the most on record in August, a sign that policy makers stepped up intervention to support …

    Morgan Stanley's Sharma Sees `Long Winter' for Commodities

    Bloomberg2 hours ago
    China's industrial slowdown is weighing on demand growth while a drop in currencies including the Russian ruble has shielded some companies from lower oil …

    When $2.8 trn is not enough: US govt rakes in record tax revenue

    RT2 minutes ago
    The federal government has collected $2.8 trillion in taxes over the 11 months of the fiscal year 2015, almost $200 billion than the year before. This means …

    Fears grow over US stock market bubble

    Nobel laureate Robert Shiller highlights risks of overvalued stocks

    California's Sierra Nevada snowpack is the lowest in 500 years

    USA TODAY44 minutes ago
    The snowpack in California's Sierra Nevada mountains this year has fallen to its … The finding underscores the severe drought afflicting the state, bow in its …

    Drought fears: Lake Mead hits all-time low – USATODAY.com Video

    usatoday30.usatoday.com/video/droughtlakemead…/3726115398001

    19 hours ago – Drought fears: Lake Mead hits all-time low. Nevada's Lake Mead, the nation's largest reservoir, has hit an all time-low since it was first filled in the 1930s, raising …

    Student Debt Payback Lags

    Wall Street Journal15 hours ago
    The findings highlight the rising concern over student debt, which has become … If 40% of borrowers default in a single year, the school could lose access to the …

    JPMorgan Sees New Normal in Bonds as Slowing China Crimps

    Bloomberg14 hours ago
    China's slowing economy will suppress global bond yields even as the Federal Reserve considers a rate increase, threatening returns for investors who rely on …

    China signals it may let weaker automakers merge as sales slow

    The Straits Times13 hours ago
    The China auto association is predicting sales to grow at the slowest pace in four years as the economy slows. Consumers in China also are putting off …

    Australia's Economic Struggles Weigh Down Abbott Leadership

    Bloomberg7 hours ago
    Slumping commodity prices and slower growth in demand from China for Australia's exports have cruelled the economy since Prime Minister Tony Abbott and …

    Number of US homeless students has doubled since before the

    Washington Post1 hour ago
    The number of homeless children in public schools has doubled since before the recession, reaching a record national total of 1.36 million in the 2013-2014 …

     

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  • Mon, Sep 14, 2015 - 6:59pm

    #2

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    US interest rate rise could trigger global debt crisis

    "The Swiss-based BIS said total debt ratios are now significantly higher than they were at the peak of the last credit cycle in 2007, just before the onset of global financial crisis.
    Combined public and private debt has jumped by 36 percentage points since then to 265pc of GDP in the the developed economies.

    This time emerging markets have been drawn into the credit spree as well. Total debt has spiked 50 points to 167pc, and even higher to 235pc in China, a pace of credit growth that has almost always preceded major financial crises in the past. "

     

     

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  • Mon, Sep 14, 2015 - 10:21pm

    #3

    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    We are in the midst of a

    We are in the midst of a philosophical revolution. Rational Materialism was born out of a reaction to Religious Dogmatism during the Enlightenment.  It is now the water in which we swim. 

    It has proved to be false. Your mind is not the product of your brain. I note that the researchers are Oriental,  therefore it is not infeasible that they have not been marinated to the same extent as us Europeans in the Enlightenment.

    A new trend taking shape in psychological science not only uses quantum physics to explain humans' (sometimes) paradoxical thinking, but may also help researchers resolve certain contradictions among the results of previous psychological studies.
     
    According to Zheng Joyce Wang and others who try to model our decision-making processes mathematically, the equations and axioms that most closely match human behavior may be ones that are rooted in quantum physics.
     
     
     
    Allow me to reiterate my prediction that Quantum computers will prove to be sentient. 

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  • Mon, Sep 14, 2015 - 10:29pm

    #4
    Doug

    Doug

    Status Platinum Member (Offline)

    Joined: Oct 01 2008

    Posts: 1357

    Control

    [quote]Allow me to reiterate my prediction that Quantum computers will prove to be sentient. [/quote]

    Then we must maintain control of the circuit breakers. :^)

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  • Mon, Sep 14, 2015 - 10:39pm

    #5

    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    Abbots gone.

    For what It's worth. 

    http://www.abc.net.au/news/2015-09-14/in-pictures-turnbull-challenges-abbott/6775278

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  • Tue, Sep 15, 2015 - 3:02am

    Reply to #4

    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    Ethics and Errors

    You would kill a sentient being?

    Further thought required.

    If Quantum computers are using the information field, then It might be a basic error of materialistic thinking to assume that destroying the hardware would necessarily stop the program. 

    The quantum computer is "merely" the interface between the field and the material world. The calculations, as I understand it, are Not done by the physical machine but resolved by the quantum field. If I am wrong,  please correct.

     

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  • Tue, Sep 15, 2015 - 4:31am

    #6

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    Fitch warns of emerging market shock if Fed sticks to rate plan

    Fitch warns of emerging market shock if Fed sticks to rate plan (More info from Ambrose Evans-Pritchard)

     

    "Emerging markets have accumulated $7.5 trillion of external debt and are acutely vulnerable to a rapid rise in US interest rates, regardless of whether they borrowed in dollars or their own currencies, Fitch Ratings has warned. "

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  • Tue, Sep 15, 2015 - 11:56am

    Reply to #6

    Chris Martenson

    Status Platinum Member (Offline)

    Joined: Jun 07 2007

    Posts: 4502

    Not just EM, but everyone...

    [quote=saxplayer00o1]

    Fitch warns of emerging market shock if Fed sticks to rate plan (More info from Ambrose Evans-Pritchard)

    "Emerging markets have accumulated $7.5 trillion of external debt and are acutely vulnerable to a rapid rise in US interest rates, regardless of whether they borrowed in dollars or their own currencies, Fitch Ratings has warned. "

    [/quote]
     

    Let's be clear, it's not just the emerging markets but everyone is acutely vulnerable to 'rapidly rising interest rates.'

    Although I am not sure why that language is being used…it's been 6 years without any sort of rate hike…and the next one is likely to be a very minor 'one and done' hike used for optical purposes only…nobody at the Fed is talking about a 'rapid rate hike cycle.'

    Nobody.

    But thanks for a warning worthy of Captain Obvious, Fitch.  

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  • Tue, Sep 15, 2015 - 2:51pm

    #7
    Edwardelinski

    Edwardelinski

    Status Bronze Member (Offline)

    Joined: Dec 23 2012

    Posts: 316

    A Very Serious Warning From Europe now

    The European Security and Markets Authority one of the main regulatory bodies in Europe has now raised its market risk to its highest levels possible on Monday.They cite investors,market infrastructures and the financial system at large.

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  • Tue, Sep 15, 2015 - 6:27pm

    #8

    sand_puppy

    Status Platinum Member (Offline)

    Joined: Apr 13 2011

    Posts: 1837

    Links for European Market Risk

    Edwardelinski just posted, above, that the European Security and Markets Authority has raise its market risk assessment.  Here is the link:  (it is pretty dense econo-talk)

    14/09/2015

    The European Securities and Markets Authority (ESMA) has published today its Trends, Risks and Vulnerabilities Report No. 2 for 2015 on European Union (EU) securities markets, covering market developments from January to June 2015. It has also published its Risk Dashboard No. 3 for 2015.

    Overall, market risks for the European securities markets have increased. ESMA’s risk indicator for market risk is now at its highest level “very high”. This increase is due to high volatilities and fluctuating performances across asset classes – all of which translates into elevated risks for investors, market infrastructures and the financial system at large.

    ESMA’s credit risk indicators remain unchanged at very high levels. While at a lower level, liquidity risk is expected to intensify further, while contagion and operational risk remain unchanged, at high and elevated levels respectively. Key overall risk sources remain: the improved but uneven economic outlook, ultra-low interest rates, high public sector indebtedness and potential weaknesses in market functioning.

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  • Tue, Sep 15, 2015 - 6:56pm

    #9
    Edwardelinski

    Edwardelinski

    Status Bronze Member (Offline)

    Joined: Dec 23 2012

    Posts: 316

    Thank You Sand Puppy

    I should have credited the source.Could you imagine a regulatory body in this country issuing such a dire warning?As the world is imploding in front of our very eyes frothy is the best word the fed can come up with.

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  • Tue, Sep 15, 2015 - 10:11pm

    #10

    Jim H

    Status Diamond Member (Offline)

    Joined: Jun 08 2009

    Posts: 1798

    Asking for opinions on this Bill Still report; Russia in Syria

    One of the more pointed reports I have ever seen from Bill Still.. what is the opinion of the PP.com crowd?  Support his conclusion regarding Obama or is he missing something?  I have read David Stockman saying he supports Obama's Iran deal.. for instance.  

      https://www.youtube.com/watch?t=134&v=8rreNdBFJyA

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