Daily Digest

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Daily Digest 8/20 - The Day The Dollar Died, The Fed's Failure Will Cost You

Saturday, August 20, 2016, 8:37 AM

Economy

The Day The Dollar Died, Part 2 (thc0655)

The SDR was invented in 1969 and there were a number of issues of SDRs in the 1970s. During the ‘70s we had massive liquidity crisis, borderline hyperinflation, a quadrupling of oil prices, and a stock market crash. The dollar almost collapsed between 1977 and in 1981. The situation was so bad that in 1977, the United States Treasury borrowed money in Swiss francs. Nobody wanted U.S. dollars, at least not at an interest rate the U.S. was willing to pay.

What The New SEC Money Market Regulations Mean For The Financial System (Alex B.)

Lehman, like other trusted institutions, used the money markets for short-term funding. And it could do that because it was a trusted institution that people believed could always pay its debts. And this trust is what keeps the financial system going — including the money markets.

You can imagine what happened to money market funds’ $1 NAV promise once Lehman failed.

'Flash Boys' IEX stock exchange opens. Its goal: Rein in high-frequency traders (Adam)

After a nearly yearlong struggle for approval from the Securities and Exchange Commission, IEX today becomes a public stock exchange, like the New York Stock Exchange and Nasdaq, marking a victory for both the upstart exchange’s founders and Capital Group.

The Fed’s Failure Will Cost You (Tiffany D.)

Investors don’t realize that with most gold ETFs, they’re not buying and selling gold. They’re buying and selling pieces of paper the ETF provider creates. That paper passes to market makers in New York, and ultimately ends up as a claim on (or a disposition of) physical gold held by a custodian. Sometimes the gold in question isn’t even purchased or sold — it’s leased/returned to a central bank.

Another study finds that diversity lead to mistrust and lack of community cohesion (Arthur Robey)

That’s the key question behind an intriguing new study, “The (In)compatibility of Diversity and Sense of Community,” published in the November edition of the American Journal of Community Psychology. The study, by sociologist Zachary Neal and psychologist Jennifer Watling Neal, both of Michigan State University (full disclosure: I was an external member of the former’s dissertation committee), develops a nifty agent-based computer model to test this question.

Childhood trauma leads to lifelong chronic illness — so why isn’t the medical community helping patients? (lambertad)

My physician explained that ongoing adversity in childhood leads to a chronic state of “fight, flight or freeze.” Researchers at Yale had recently shown that when inflammatory stress hormones flood a child’s body and brain, they alter the genes that oversee our stress reactivity, re-setting the stress response to “high” for life. This increases the risk of inflammation, which manifests later in cancer, heart disease, and autoimmune diseases like mine.

How statistics are twisted to obscure public understanding (westcoastjan)

If you look at recent airline statistics, you’ll think that a far higher number of planes are arriving on schedule or early than ever before. But this appearance of improvement is deceptive. Airlines have become experts at appearance management: by listing flight times as 20-30 per cent longer than what the actual flight takes, flights that operate on a normal to slightly delayed schedule are still counted as arriving ‘early’ or ‘on time’. A study funded by the Federal Aviation Administration refers to the airline tactic as schedule buffering.

Manufacturers returning to US may mean jobs for robots, not people (Arthur Robey)

Some manufacturers would respond to tariffs and other protectionist policies by simply moving existing overseas jobs to other countries, rather than back to the US. Other powerful forces working against large-scale increases in US manufacturing jobs include regulatory costs and an absence of suppliers in the US.

But even if manufacturing did return, the jobs may not, thanks to advancing technology.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/19/16

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."

13 Comments

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1469
The SDR

The SDR is even more ridiculous fiat money.   If TPTB try to make the SDR the reserve currency, that may just start WW3.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2890
Courage Facing Aparthied

‘It’s like we’re born with guns in our hands’: Young Israelis face prison as they resist military conscription (Mondoweiss)

 

Quote:

Growing up in a politically mainstream household where military service was not only seen as a duty, but also an honor, Omri found herself at odds with what she saw as an inherently violent culture surrounding her. When it came time for her conscription, she refused on the basis of her budding pacifist beliefs.

“Even before I knew anything about the occupation of Palestine, I couldn’t understand why our culture was centered on violence. It’s like we are born with guns in our hands,” she said. “Our society is so militant and most Israelis never learn anything else.”

Four months ago, Omri requested exemption from military service through an ethics committee. But her request was rejected, and she found herself facing prison time.

Leading up to her first stay in military prison, Omri was introduced to Tair and other members of the Refusers Solidarity Network, who gave her an informal, educational lesson on Israel’s treatment of the Palestinian people.

After discovering the widespread human rights violations occurring just a short drive away, Omri dedicated herself to reading books about Palestine and stumbled upon a very different history of Israel than what she had learned growing up.

“I had never even seen a map that shows the green line,” Omri said incredulously, referring to the pre-1967 borders recognized under international law as the border between Palestine and Israel. “To this day, I have not been able to find a map of Israel in Hebrew that recognizes any Palestinian borders.”

Tair reiterated Omri’s sentiments, saying, “The maps we are shown in school represent the entirety of the land as belonging to Israel. There are no occupied territories. This is what all Israelis are being taught."

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 2039
36 Hours-- A Post EMP Novel

In case there are a few other doom-porn addicts lurking here at pp, I want to recommend this novel by Bobby Akart,  36 Hours: A Post-Apocalyptic EMP Survival Fiction Series (The Blackout Series Book 1)

The story follows a family in Nashville on the day that a massive coronal mass ejection from the sun is discovered by astronomers and the world becomes aware of it.  The book ends 36 hours later as the CME event arrives.  So in this book, the first of a series, is the day before the CME arrives--it is a story about the way that people receive the news and the difficulties getting accurate information. 

Officials are split between accurately telling the hard truth (that the event will fry the electrical grid and collapse civilization and a 90% death rate is expected) and avoiding panic (that would result from knowing that hard truth).

A number of their suburban neighbors resist knowing the truth "It won't be that bad.  You are over reacting."  The kinds of reactions that everyone here at pp know very well.  (You know, the kind where you want to grab them by the lapels and shake them violently while screaming "Wake the f*ck up!".....)

People begin to shift as they understand the situation is changing and must reevaluate their situation in light of an imminent disruption of Maslow's Hierarchy of Needs.  Some are slow to catch on.  Others quicker. 

The family makes a dash into the life of "prepper-dom."  For me, this was intensely suspenseful.

The author, who has widely written on prepping, integrates some practical tips as the family figures out how to respond. 

A low tech Faraday cage to shield electronics from EMPs can be improvised with a galvanized metal garbage can, with a cardboard box set inside to hold the electronic devices.

The mother, who doesn't believe in guns and sees no need for reasonable people to own them, suddenly understands that they might be useful.  She is surprised to discover that she can't just walk into a sporting good store and buy a gun for everyone in her family.  Mandatory waiting periods, limits to purchases, and back ground checks are required (and sorry, those are sold out and our computers are down). 

For those of us intuitive types who imagine into a potential future reality--you'll like it.

 

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5975
I'm doing a live Q&A on Reddit right now...

...from 5 to 6 here on Saturday, 8/20/16 in case anyone wants to join in. (that's right now)

https://redd.it/4yr5ac

CleanEnergyFan's picture
CleanEnergyFan
Status: Silver Member (Offline)
Joined: Jan 29 2012
Posts: 110
Some good Q&A on the Reddit site

Those were some pretty tough Qs that were posed especially by ReverseEngineer.  I suspect you would have gotten even more Qs if you didn't have to signup at Reddit w PW which deterred me from posting there.  A live Q&A is a difficult forum for this due to time synchronization but the Q&A recorded for posterity is useful and hopefully drives interested readers to PP for more info.  Good luck in the rest of your travels, sounds interesting. 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Ancient Egyptian Caves discovered

And sealed.

Beneath the Pyramids of Giza lies a cave world that defined the location of the pyramid field and acted as a role model for the Duat-underworld of the ancient Egyptian texts.

Google "tomb of the birds" select images.

 

https://redice.tv/red-ice-radio/beneath-the-pyramids-giza-cave-system-re...

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Bankers Wars.

My understanding of history is that Hitler defied the Bank of International  Settlements.

 

 

https://books.google.com.au/books?id=GLyQ8iIjK3wC&pg=PA150&lpg=PA150&dq=German+Government+International+Loan+(Young+Loan)&source=bl&ots=sdgXTvkDVQ&sig=4KIF1fuJEK3gVwaQIu08xFIhQV4&hl=en&sa=X&ved=0ahUKEwjq3u6dqtHOAhUCEpQKHbr1DYIQ6AEIHDAB#v=onepage&q=German%20Government%20International%20Loan%20(Young%20Loan)&f=false

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2259
Exec Order Signed Providing Order of Succession in Treasury Dept

From Finance and Liberty, 

Published on Aug 18, 2016

IN THIS INTERVIEW:
- Executive Order -- Providing an Order of Succession within the Department of the Treasury 0:51 (Executive Order link: https://www.whitehouse.gov/the-press-... [bold mine]

Michael_Rudmin's picture
Michael_Rudmin
Status: Platinum Member (Offline)
Joined: Jun 25 2014
Posts: 928
Don't prep by learning to shoot.

Prep by learning to sling.

Rector's picture
Rector
Status: Platinum Member (Offline)
Joined: Feb 7 2010
Posts: 515
Bought

For 3 bucks, I'll start reading another novel based on your recommendation.  Thanks.  I really appreciate all the good recommendations that I get from folks here at PP.com.  My Kindle is littered with the remains of promising, but crappy reads in this genre.

Rector

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2890
The Plantation

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2890
The Strawman

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2890
The Freeman

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