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    Daily Digest 9/21 – Young People Take To The Streets For Climate, Nature ‘Unraveling’ as N. America Loses 3B Birds Since 1970

    by Daily Digest

    Saturday, September 21, 2019, 7:21 AM


Economy

Upbeat data suggest U.S. economy still on moderate growth path (Thomas R.)

The U.S. central bank cut rates in July for the first time since 2008. The Fed offered mixed signals on further monetary policy easing. Data, including retail sales, so far in the third quarter suggest the economy is growing close to the April-June quarter’s 2.0% annualized rate.

Financial markets have been flagging a recession. The Atlanta Fed is estimating gross domestic product rising at a 1.9% pace this quarter.

Beijing Daxing International Airport: China’s new mega-airport ready to open (Sparky1)

The multibillion-dollar Daxing, designed by the late architect Zaha Hadid and her Chinese partners, is built for the future, boasting four runways and a terminal the size of 97 soccer pitches upon opening of the first phase — as well as customer-service robots that will provide travelers with flight updates and airport information.

Trump Announces New Sanctions on Iran (jdargis)

The latest sanctions affect the Central Bank of Iran and the National Development Fund of Iran, “the last remaining source of funds,” said Treasury Secretary Steven Mnuchin, who joined Mr. Trump in the Oval Office.

“This is very big,” Mr. Mnuchin said. “We’ve now cut off all source of funds to Iran.”

Walgreens to test drone delivery service with Alphabet’s Wing (Thomas R.)

“Walgreens continues to explore partnerships to transform and modernize our customer experience and we are proud to be the first retailer in the U.S. to offer an on-demand commercial drone delivery option with Wing,” said chief innovation officer Vish Sankaran. He said the company wants to provide customers the products they “need wherever, whenever and however they may want them.”

False Tsunami Warning In Hawaii Triggered By Police Exercise (Sparky1)

The incident reminded residents of a heart-stopping January 13, 2018 false warning of a ballistic missile attack which occurred amid especially bellicose rhetoric between President Trump and North Korean leader Kim Jong Un. Just days before the mistaken alert, Kim had warned that the nuclear button is “always on my desk” and Trump retorted with a tweet: “I too have a Nuclear Button, but it is a much bigger & more powerful one than his, and my Button works!”

Second Pacific nation in a week ditches Taiwan for Beijing (Sparky1)

The number of countries who have diplomatic relations with Taiwan — officially the Republic of China — rather than the mainland Chinese government has shrunk rapidly since 2016. Last year alone, El Salvador, Burkina Faso and the Dominican Republic all announced they would no longer recognize Taipei.

Video: Argentine lawmakers approve emergency food bill amid economic crisis (Sparky1)

Argentine lawmakers on Thursday unanimously approved a draft emergency food law to free up resources for social programs amid a worsening economic crisis. Soaring inflation and rising poverty have stirred outrage at austerity measures introduced by center-right President Mauricio Macri’s government in order to comply with the terms of a record $57 billion IMF bailout.

Interior Dept. Transfers 560 Acres of Public Lands to Army for Border Bollard Fence (newsbuoy)

“Absent this action, national security and natural resource values will be lost. The impacts of this crisis are vast and must be aggressively addressed with extraordinary measures,” Secretary of the Interior David Bernhardt said in a statement. “The damages to natural resource values are a byproduct of the serious national security, drug enforcement, and other immigration challenges facing our dedicated staff along the border. Construction of border barriers will help us maintain the character of the lands and resources under our care and fulfill our mission to protect them.”

China Just Got Handed The Oil Deal Of A Lifetime (Thomas R.)

According to senior oil and gas industry sources spoken to by OilPrice.com last week, it is China that will do all of the work and finance all of the drilling, with the headline ‘Iraq Drilling Company’ being on the contract simply to assuage the followers of Moqtada al-Sadr, the de facto leader of Iraq, and his Sairoon (‘Marching Towards Reform’) power bloc whose public message at the last election was that Iraq should not be beholden to any other country. OilPrice.com understands that al-Sadr privately has approved the project, otherwise, of course, it would not be going ahead.

U.S., Canada have lost 3 billion birds since 1970. Scientists say ‘nature is unraveling.’ (Adam, Sparky1)

For a study published Sep. 19 in the journal Science, Marra joined with other scientists and conservationists to analyze nearly five decades of population data on 529 species of North American birds. The results were staggering: Since 1970, the continental U.S. and Canada have lost more than 1 in 4 birds. The total bird population in the two countries has fallen by almost 3 billion, with grassland birds such as western meadowlarks and American sparrows and shorebirds such as green herons taking the biggest hits.

Protesting Climate Change, Young People Take to Streets in a Global Strike (jdargis)

Strikes were planned in each of the 50 United States. By late morning, protesters across the Eastern Seaboard were streaming out of schools and office buildings, pooling around steps of local city halls. In Baltimore, the police blocked roads as students arrived on foot, scooter and skateboard. In St. Petersburg, Fla., about 200 protesters convened at City Hall, including one dressed as a polar bear with a sign that said “Climate Action Now.”

Three Mile Island goes offline (Thomas R.)

Forty years ago, the partial meltdown at TMI was the worst nuclear accident in U.S. history.

The plant has been in operation since 1974, but has failed to sell its power in the past several years.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/19/19

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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6 Comments

  • Sat, Sep 21, 2019 - 9:50am

    #1

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2960

    5+

    New York Fed to continue operations in overnight funding market until mid-October

    New York Fed to continue operations in overnight funding market until mid-October

    In an announcement Friday, the New York Fed said it will continue repo operations through Oct. 10. The process will involve three 14-day operations involving $30 billion as well as continued overnight operations of at least $75 billion each.

    The repo market provides banks the short-term funding they rely on to operate. Normally, the process works smoothly but liquidity shortfalls can gum up the works and, in the worst case, can cause financial crises.

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  • Sat, Sep 21, 2019 - 11:16am

    Reply to #1

    thc0655

    Status Platinum Member (Offline)

    Joined: Apr 27 2010

    Posts: 1519

    5+

    Talk about a black swan!

    https://www.armstrongeconomics.com/markets-by-sector/interest-rates/the-panic-in-interest-rates-is-just-getting-started/

    Overnight financing (REPO Rate) is a basic function which holds the economy together. Those who trade on leverage rely on the REPO market (Broker-dealers, hedge funds, and institutional). It is rarely written about for it is not generally seen by the public. The events of the past few days is a clear warning sign of what I have been yelling about which is on the horizon. The central banks are TRAPPED and in Europe, they have destroyed their bond market with more than $15 trillion and perhaps up to $17 trillion in negative-yielding bonds ($1 trillion is corporate).

    Before the 2007-2009 crisis, the Repo Rate was actually the only financial instrument which paid a rate of return that could become NEGATIVE under normal market conditions. NEGATIVE Repo Rates can happen when there is a shortage of cash or particular collateral security, like negative-yielding bonds, are put up to borrow against. Therefore, trying to borrow against a negative-yielding bond can present a crisis. The standard Repo contracts, such as the Global Master Repurchase Agreement (GMRA), have been drafted under the implicit assumption that general collateral (GC) Repo Rates would only ever be positive.

    What has transpired is the buyers of these negative bonds have been simply traders. They have not bought this stuff to actually hold to maturity. They have been happy to trade them assuming rates would continue lower so it would be a bond rally. We are looking at SERIOUS credit risk once again but instead of the time bombs being mortgage-backed securities, this time it will be negative-yielding bonds issued by governments. The bond markets have been converted into a child’s game of musical chairs. When the music stops, someone will be left holding negative-yielding bonds that will only be salable at even deeper discounts of perhaps as great as 50% in a few years.

    About 30% of the bonds issued by governments and companies worldwide are trading at negative yields which is now about $17tn of outstanding debt. This unprecedented reversal of normal practice has raised profound questions about the outlook for bonds. This is seriously impacting core holding for institutional investors.

    The interest rate risk that negative-yielding bonds carry is beyond unbelievable. It is totally artificial supported only by punters. The financial system simply doesn’t work with negative rates and this is also contributing to shortages of cash for Repo markets. A slight rise in interest rates will create a massive debt crisis and if you undermine the bond market, that is what creates great depressions. Negative yields have been confined to places outside the USA and the intervention of the Fed implies they are not prepared to allow negative rates to undermine the US economy as they have done in Europe.

    Unlike the 2008 crisis where the time bombs were private debt, Tuesday’s abrupt rise in short-term rates wasn’t obvious that the financial system was in trouble because sovereign debt is assumed to be AAA and risk-free. Not sure whoever started that huge lie.

    Nevertheless, we have a convergence of forces which are creating the perfect financial storm on the horizon. Immediately, corporate tax payments are due so corps have less cash to sell overnight. Then there are big Treasury auctions as deficits continue to rise for governments always borrow, yet never pay off the debt as if this can continue without end.

    I have been warning that we are headed into a major financial crisis that will be a liquidity event which involves government – not simply the private sector as was the case in 2008. So buckle-up. I have been warning this is something NOBODY has ever witnessed before and if Socrates was actually alive, he would be screaming bloody-murder by now.

    🤔 😳 🤯

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  • Sun, Sep 22, 2019 - 11:44am

    #2

    AKGrannyWGrit

    Status Bronze Member (Offline)

    Joined: Feb 06 2011

    Posts: 469

    Chris - Question

    Chris since you have a Doctorate degree in physical science could you, would you please explain to me the following.  It’s regarding photo-plankton in our oceans.  Isn’t it the backbone of life in the ocean and no doubt it’s being effected by climate change.  I never hear it discussed. Could it be THE black swan?

    Just wondering.

    AKGrannyWGrit

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  • Sun, Sep 22, 2019 - 3:13pm

    Reply to #2
    Rodster

    Rodster

    Status Member (Offline)

    Joined: Aug 22 2016

    Posts: 34

    1+

    Chris Has Mentioned The Phytoplankton Danger Many Times

    AKGrannyWGrit, in may of Chris’ articles involving the environment he has mentioned the potential time bombs regarding the decline of insects and phytoplankton and how it’s the bottom of the food chain and the source of food for marine life in general as it works its way up the food chain.

    Chris has mentioned several times that we are currently at a loss of at least 50% maybe more of phytoplankton. If phytoplankton disappears it’s hard to imagine supporting life on this planet. The same goes for insects which we view as pest.

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  • Sun, Sep 22, 2019 - 3:15pm

    #3
    Rodster

    Rodster

    Status Member (Offline)

    Joined: Aug 22 2016

    Posts: 34

    FYI, trying to edit a comment results in a 404 page error.

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  • Sun, Sep 22, 2019 - 6:42pm

    #4

    AKGrannyWGrit

    Status Bronze Member (Offline)

    Joined: Feb 06 2011

    Posts: 469

    Thanks Rodster

    Guess I missed him mentioning phytoplankton in his articles.  Since so much is devoured  and in vast numbers I rather think of phytoplankton instead of being at the bottom of the food chain it being the basis of the food chain.

    One if my grandkids has been watching The Walking Dead.  So of course I had to sit down and watch a few episodes with him.  One key take-away from the show —- when things change, they change fast.  Whistling a happy tune…… surprise.

    AKGrannyWGrit

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