Daily Digest

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Daily Digest 7/26 - A Stark Nuclear Warning, Millions of Americans Live in Hazardous Homes

Tuesday, July 26, 2016, 6:49 AM


How Do We Make America Strong Again? Start Telling the Truth (Don R.)

The Power Elite has also purposefully confused bullying with strength. Bullying fails because the bullied hate the bully with every fiber of their being. True strength flows from opt-in, mutually beneficial alliances that people and nations join out of self-interest. Such opt-in relationships can only endure if telling the truth is the core principle, for truth is the foundation of trust, and trust is the foundation of durable alliances and cooperative networks.

DealBook: One Thing Both Parties Want: Break Up the Banks Again (jdargis)

Bernie Sanders and Donald Trump both called for the reinstatement of Glass-Steagall, a 1933 law that separated investment and commercial banks.

Why It’s So Hard to Build Affordable Housing: It’s Not Affordable (jdargis)

“If we want to prioritize closing the gap for low-income households, we’re going to need more funding from public subsidy,” said Erika Poethig, director of urban policy initiatives at the Urban Institute, which published an online simulator Tuesday for the purpose of illustrating the challenges to building new affordable housing. Our Denver developer above is fictional, but he's an illustration of what that simulator churns out: No matter how you slice it, creating the affordable housing needed today probably requires government help.

Gas Leaks, Mold, and Rats: Millions of Americans Live in Hazardous Homes (jdargis)

These housing conditions shape the lives of the families who inhabit them. The report highlights research showing how people living in areas of concentrated disadvantage are more likely to suffer health problems, such as depression, asthma, heart disease, and diabetes. Take asthma, for example: About 40 percent of asthma episodes are triggered by the household presences of mold, dust mites, or rats. Black children, who are more likely to live in disadvantaged neighborhoods, are also more likely than white children to suffer from asthma than white children. “One’s health and life expectancy is determined more by ZIP code than genetic code,” the report concludes.

A Stark Nuclear Warning (jdargis)

This was the moment when Perry concluded that there could be no acceptable defense against a mass nuclear attack, an opinion from which he has never deviated. Many political leaders, including several presidents, have disagreed with Perry and have sponsored various types of anti-missile defense systems, the latest being the ballistic missile defense system now being installed in Eastern Europe.

Faulty Data? Why The Oil Glut Could Be Much Smaller Than Believed

The main reason for the renewed sense of pessimism comes down to the glut of oil sitting in storage. The U.S. has been dealing with oil stocks at 80-year highs since early 2015, a metric that has become closely watched in the market for signs on whether or not supply and demand are moving closer to balance.

Solar Impulse on last leg of its round-the-world flight (jdargis)

Bertrand Picard is at the controls, having started the flight in Cairo and taken the craft over Saudi Arabia, Qatar, and the Persian Gulf. The final flight has taken about a day and a half so far and has suffered a lot of turbulence as the desert below it heated up and cooled off.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/25/16

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."


saxplayer00o1's picture
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QE at record high, with growth and inflation still "too low"

GRAPHIC-Global QE now a record $180 bln a month thanks to ECB ...

Reuters-2 hours ago
But with potential global growth its lowest in decades, actual growth struggling to maintain a stall speed pace and inflation still too low for policymakers' liking, ...


badScooter's picture
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Perry is correct


This site uses climate models (yes, I know) currently in use to elucidate the effects of "nuclear winter", for both a major exchange, and (more interestingly to me) a limited exchange between second-tier states.

Wherever you stand on climatology modeling vis-a-vis the global warming controversy, it ought to be good enough to detect orders-of-magnitude effects...which I don't think anybody seriously considering nuclear winter would argue aren't the case.

Anyway, it will suck to live anywhere in this solar system following a nuclear exchange of any size



reflector's picture
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re: perry

along the lines of what perry is discussing, putin's recent public comments on the ratcheting up of the arms race may be of interest:

Putin's Warning: Full Speech 2016

cmartenson's picture
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That's the scariest data yet...
saxplayer00o1 wrote:

GRAPHIC-Global QE now a record $180 bln a month thanks to ECB ...

Reuters-2 hours ago
But with potential global growth its lowest in decades, actual growth struggling to maintain a stall speed pace and inflation still too low for policymakers' liking, ...

$180 billion a month!

Crikey, no wonder the bond and stock markets keep climbing ever higher.  This is what I've been saying for a while now in various interviews and writings.

When asked what I make of record high stock prices I point out the same is true for bond prices and say my only conclusion is that the central banks are liquefying the crap out of everything.  

I don't know what's more astounding, the fact that this is happening in the first place or the number of people who mistake equity gains for economic health.

Again, $180 billion a month!!

davefairtex's picture
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180 billon/month

This tells me two things.

1) deflation from peak debt remains a very strong force - if it requires 180 billion per month (2.1 trillion per year) just to keep things from tipping over.

2) its probably not a great idea to go short in that environment

I also agree that it is a mistake to equate a high market price for good performance.  20 year treasury at 1.9%.  That's a high price - but I would not consider that the result of fantastic execution by the government.

I think I see the endgame.  Its back-door nationalization.  We will wake up one day with the central banks owning most everything.  Japan will get there first.  It will end up like the Soviet Union of old.  Central Bank appointees will sit on the boards of directors of every company in Japan.  There will be no failures - no need for pesky failure (or job losses, or chaos) when the central bank can just fix everything with a little more money printing.

Capital markets provide a discipline for industry, and for government.  By buying everything, the central banks are eroding this discipline.  Italy can keep borrowing money, with no fear of discipline from the markets because the ECB stands ready to buy all that debt.

I asked a question a few months back: what's wrong with a central bank buying equities?  I think I have the answer: nothing is wrong with it, as long as the purchases are a very small fraction of the marketplace.  Once the fraction grows "too large", it will end up eventually destroying the capital markets, since capital allocation is never done efficiently when done by a central authority.

As of now, central banks have acquired too large a chunk of the bond market for the markets to function properly.  Prices are now distorted as a result.  The "check and balance" of the market no longer exists.  We must rely on government to restrain itself.  As long as this happens, things will probably limp along fine.

Once governments figure out there is no longer any need for restraint because all their borrowing just ends up at the central bank anyway...that could be the endgame.

Its a theory.

Michael_Rudmin's picture
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Okay, Dave, I like that theory.

Let's carry it through to another level.

What happens if all CB nations except one or two carry through with your endgame scenario?

What happens if one or two CB nations is earlier than the other?

What happens if within a nation, some people manage to hide their productivity in a black market, or form a nation-within-a-nation?

I'm looking at things like crony capitalism, Chernobyl-style fraud in the factory production reporting, shoddy manufacture, execution of the victims of failure in the name of treason, and the like. Also, where will wars be fought or avoided, won or lost?

If we can forecast some events, then we can watch and see how events match our forecast, and then hopefully have a better idea how to lean.

sand_puppy's picture
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Just in case your anxiety level was not high enough....

I wanted to re-recommend the video reflector posted above (with English translation) of Putin talking with Journalists at the Economic Forum last month.

It supports Chris' writing and the letter by The Saker and Dimitri Orlov discussed here. 

Key points:

1.   NATO is distributing small Tomahawk sized missile batteries in Romania and eastern Europe.  This system is practically identical to the Aegis Ashore system that launches Nuclear Tomahawk missiles.

2.   NATO is calling these a "missile defense systems" and stating that they are short range (500 km) anti-missile missiles and stating that they are "to counter the Iranian nuclear threat" (even though Iran does not have nuclear weapons or missiles delivery systems and that they are being placed along the Russian border, not the Iranian border .....  But, hey, you are stupid and will probably not notice.)

3.  Putin points out that the canisters loaded into these launch tubes come sealed and those who load them don't actually know what is in them.

4.  So if the USA / NATO decided to load 1000 km range nuclear tipped missiles in them, the Romanians would never know what was happening on their own soil.  And Russia would never know either.  Russia cannot know if the batteries are loaded with defensive anti-missile missiles or offensive nuclear tipped missiles designed for a first strike nuclear attack against Russia.

5.  A 1,000 km range nuclear tipped missiles placed right on Russia's borders has the capacity to take out Russia's nuclear attack capacity in a surprise first strike.  (~8 minute flight time.)   This fundamentally undoes the balance of nuclear power.

6.  Russia cannot and will not allow itself to be destroyed in a surprise first strike.

7.  Yet western press is not conveying to its people the danger of this unstable situation.  Westerners are blissfully unaware.

davefairtex's picture
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first strike: concept fails on basic geography

5.  A 1,000 km range nuclear tipped missiles placed right on Russia's borders has the capacity to take out Russia's nuclear attack capacity in a surprise first strike.  (~8 minute flight time.)   This fundamentally undoes the balance of nuclear power.

Sorry this doesn't pass a very basic sniff test: most of Russia's land-based missiles are not within 1000 km of Eastern European border.  In fact, most of RUSSIA isn't within 1000km of the Eastern European border.  If we assume the dreaded missiles are posted right at the border of Poland, they'll just hit Moscow.

See for yourself where Russia places their missiles.  Note the majority of the missiles are mobile.  That makes it awfully easy to counter this sort of deployment.


And here's a fun tool that lets you plot a (helpful) 1000km radius around any google map point you specify.


This is just more fear crap posted by people who don't know what they are talking about - or maybe they do know, but they are deliberately deceiving you for reasons known only to themselves.

Of course, any accurate fast missile with a short flight time can be destabilizing, but an Ohio class sub with 24 Trident 2 D5s off the coast has exactly the same capability as these dreaded "first strike missiles on the border", with a much longer range to boot.  https://en.wikipedia.org/wiki/Trident_(missile)

There was a similar discussion with the Pershing II deployment in Europe back in the 1980s.


And Tom Lehrer had a song about a loosely related plan - involving giving control over nuclear weapons to the Germans during the 1960s.  That raised a bit of a stink, and it never happened, but the song that came out of it was awesome:

"Why shouldn't they have nuclear warheads?

England says no...but they all are soreheads!"


I'm beginning to get the sense that Dmitry Orlov has become an arm of the Russian propaganda ministry.  If he kept himself to actual alarming facts, of which there are plenty, that would be fine.  He doesn't.  This latest is total crap, as was the "impenetrable shield" claim he made previously - at least to anyone who has put time into studying the issues and technology as I have.

davefairtex's picture
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healthy skepticism

I do find it curious that you guys who tend to see crisis actors literally everywhere and are willing to examine footage frame-by-frame of what you are certain are false flag events for months at a time, yet you simply accept as fact claims such as this "first strike" claim without question.

Why is that?  Where did all that healthy distrust go?

My back-of-the-envelope:

  • How far is 1000km?  [Eastern edge of Poland - Moscow]
  • How many km wide is Russia? [About nine times wider than that]
  • Where are Russia's missiles based? [mostly east of Moscow]
  • How far is that from the border? [More than 1000 km]
  • Can those missiles be moved? [Most of them, yes]

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