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    Daily Digest – July 29

    by Davos

    Wednesday, July 29, 2009, 2:54 PM

  • Two Beers With Steve Podcast: Dr. Chris Martenson, Inflation/Deflation
  • Jeremy Grantham’s Newsletter Refers to Chris Martenson’s Crash Course (H/T Laviera, PDF)
  • Jim Rogers on TV Investment Advice (Video)
  • Iceland Proves That in a Financial Crisis, Breaking Glass and Trashing a Currency is a Good Remedy
  • 5 Stages to Homelessness (Video)
  • Smelt or 80,000 jobs? Smelt or Food? (H/T Lucky & HuckleJohn, Video)
  • Population and Water Rationing (CKessel)
  • Max Kieser (H/T Patrick Brown, Videos, Second Video 1:02 minute mark, 6-9 month bank crisis)
  • China Talks: Treasurer Geithner Pledges Smaller Deficit
  • 5 Firms Hold 80% of Derivative Risk
  • 10 Members Send Letter to Fed on Goldman Sachs Gambling with Bailout Money
  • Chimerica (Video)
  • Real Estate Quote of the Day

Economy

Two Beers With Steve Podcast: Dr. Chris Martenson, Inflation/Deflation

In Episode 14 we have our first ever interview with Dr. Chris Martenson, the author of the Crash Crash video series and the namesake for the www.ChrisMartenson.com website. We spend an hour discussing the most hotly debated topic in the economic blogosphere, Inflation Vs. Deflation.

Jeremy Grantham’s Newsletter Refers to Chris Martenson’s Crash Course (H/T Laviera, PDF)

Jim Rogers on TV Investment Advice (Video)

Iceland Proves That in a Finicaial Crisis, Breaking Glass and Trashing a Currency is a Good Remedy

Iceland will be back in surplus by next year, from a peak deficit of 25pc of GDP. You could say the same about Latvia, which has stuck to its euro peg under orders from Brussels. But there is a big difference.

5 Stages to Homelessness (Video from www.Inflation.us)

[video:http://www.youtube.com/watch?v=gKmYKU3JP1o&feature=player_embedded]

Smelt or 80,000 jobs? Smelt or Food? (H/T Lucky & HuckleJohn, Video)

Population and Water Rationing (CKessel)

What is not reported is that while there are reductions in water to the farmers, you still don’t see any rationing in Los Angeles. Hopefully, before this event is over, the city dwellers will convert their lawns to gardens and at least make better use of the water that continues to flow down this aqueduct and provide them with cheap water. The farmers of the west valley have been squeezed out for the moment. But that land has always been comparitively marginal anyway. The real issue here is to find an environmental reason to cut water flows to all except the higher paying city customers and then use the debacle to justify construction of a new dam on the last major river flowing out of the Sierras …..the American River. Then there will be even more water for thirsty LA.

Meanwhile, the majority of the Central Valley agriculture which is not and has never been supplied water by this project is doing fine with a near normal rainfall season. The croplands mentioned around Modesto where I-5 moves back into more populated areas get water from the Tuolumne River system (third largest in the state with a watershed beginning in Yosemite National Park and providing most of the water to the Bay Area). Drive down Hwy 99 and you will see a different picture of our cropland.

What is less known is the effect that diverting huge quantities of water to Southern California had on the San Francisco Bay and Delta Ecosystems. Long gone are the clean waters of the bay and delta, the flushed out rivers (of silt and debris) and the Salmon which used to have runs into the Sierra Nevada river systems from Redding to Fresno. The Stanislaus River had a count of about 125 Salmon last year, down from many thousands when I was a Boy Scout!

The point here is how human population expansion has created pressure on our environmental systems. We have arrived at a point where species extinction is happening. If we do not maintain our environmental support systems then we likely follow the path of the smelt! This fight is all about the water and how to create a justifcation to tap every last drop by getting public opinion to sway back in favor of constructing dams on the remaining rivers IMHO.

Max Kieser (H/T Patrick Brown, Videos, Second Video 1:02 minute mark, 6-9 month bank crisis)

[video:http://www.youtube.com/watch?v=VSwWy4E6I04&feature=player_embedded] [video:http://www.youtube.com/watch?v=ZoQrYa_NKQQ&feature=player_embedded]

 July 27 (Bloomberg) — Treasury Secretary Timothy Geithner pledged the U.S. will shrink its budget deficit over the next four years and boost national savings, and he called on China to maintain efforts to ease the impact of the global recession.

 

“We are committed to taking measures to maintaining greater personal saving and to reducing the federal deficit to a sustainable level by 2013,” Geithner said in opening remarks for Strategic and Economic Dialogue meetings with Chinese officials in Washington.

Geithner’s comments reinforced his efforts to reassure China, the largest foreign holder of American government debt, that this year’s record U.S. budget gap won’t pose a long-term danger. The shortfall is on course to reach $1.8 trillion in the year through September.

Geithner and Secretary of State Hillary Clinton are hosting Vice Premier Wang Qishan and Dai Bingguo, a state councilor, at the meetings today and tomorrow, the first such gathering since President Barack Obama took office.

I suppose having to finance $235 billion in one week is pointing to lower deficits ahead? Heck, it won’t be long before just the interest on all the borrowed money becomes one of the largest expenses within the budget. Better get busy printing, devaluing our dollar, and robbing the people of America blind while you artificially hold interest rates low and further rob those who attempt to save, Timothy.

5 Firms Hold 80% of Derivative Risk

Concentrated, in fact, among a mere handful of financial-services giants. About 80% of the derivative assets and liabilities carried on the balance sheets of 100 companies reviewed by Fitch were held by five banks: JP Morgan Chase, Bank of America, Goldman Sachs, Citigroup, and Morgan Stanley. Those five banks also account for more than 96% of the companies’ exposure to credit derivatives.

Its a short article worth reading in full . . .

10 Members Send Letter to Fed on Goldman Sachs Gambling with Bailout Money

Here’s the PDF of the letter, with text below. Signers are Alan Grayson, Ron Paul, Walter Jones, Brad Miller, Dan Lipinski, Elijah Cummings, Tom Perriello, Maxine Waters, Jackie Speier, and Maurice Hinchey.

Chimerica (Video)

Real Estate Quote of the Day

“National New Home Sales, on a monthly basis, don’t even add up to half of the total foreclosure activity in California alone in a single month.”

-Mark M Hanson

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