Daily Digest

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Daily Digest 9/10 - Wells Fargo Fires 5,300, Stocks End Two-Month Snooze With Plunge

Saturday, September 10, 2016, 9:34 AM

Economy

Weekend Edition: The Fed’s Only Escape Is to Trash the Dollar (Thomas C.)

Yellen and the Fed face as many constraints as Harry Houdini did in trying to escape a potential collapse of confidence in the U.S. dollar and a possible sovereign debt crisis for the United States. Let’s look at some of the constraints on Yellen – and the possible “tricks” she might use to escape.

The first and most important constraint on Fed policy is that the U.S. economy is dead in the water. Quarterly GDP figures have been volatile over the past three years, with annualized real growth as high as 5% in the third quarter of 2014 and as low as minus 1.2% in the first quarter of 2014. We have not seen persistent growth or a definite trend – until now. Finally, there is a trend, and it’s not a good one.

No Stimulus, No Peace as Stocks End Two-Month Snooze With Plunge (jdargis)

Damage was worst in the final session, when Boston Federal Reserve President Eric Rosengren warned against waiting too long to raise interest rates. Selling built after European Central Bank President Mario Draghi downplayed the need for more measures to boost growth a day earlier. When it was over, the S&P 500 Index was down 2.3 percent to 2,127.81 on the week, with Friday’s plunge wiping out a slight gain over the first three days.

The Only Sure Conclusion About the G20 Summit (Thomas C.)

“The communiqué reiterates the essential role of structural reforms in boosting productivity and output, as well as in promoting growth in G20 countries. The choice and design of structural reforms are consistent with countries’ specific economic conditions,” the People’s Daily sums up one of the points on the agenda.

The other points where the G20 reached some kind of consensus were trade, anti-corruption, financial reform, investment, industrialization, entrepreneurship, climate change, innovative growth, and development.

5,300 Wells Fargo employees fired for creating over 2 million phony accounts (Thomas C.)

On Thursday, federal regulators said Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts -- without their customers knowing it -- since 2011.

The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.

Wells Fargo Fires 5,300 For Engaging In Massive Fraud, Creating Over 2 Million Fake Accounts (Wendy SD, Don R.)

According to the NYT, regulators said the bank’s employees had been motivated to open the unauthorized accounts by compensation policies that rewarded them for drumming up new business. Many current and former Wells employees told regulators they had felt extreme pressure to expand the number of new accounts at the bank.

Shoving us at gunpoint toward the cashless society (Thomas C.)

Now the faux-intellectual case for complete government control and surveillance of transactions is being promoted so rapidly and universally it seems a coordinated effort. The economic noise just ramped up again upon publication of superstar economist Kenneth S. Rogoff’s The Curse of Cash, in which (I have not personally read it but have repeatedly heard) he agitates for elimination of all cash over $10 bills, forcing all but latte-level transactions under government scrutiny — or into Outlawry.*

J.D. Tuccille has has an excellent overview of the positions on both sides. (His article is a real linkfest, so set aside some time for it.)

Infrastructure Spending and America’s Ailing Power Grid (Tiffany D.)

This time, people left candles outside to help people see. Neighbors gave food to people with kids and helped the elderly into their houses. The New York Police Department reported less crime on that day than the same day the previous year with power. It was a shining moment of my time in New York.

Failure of Inflation Targeting?! (Axel M.)

Most central banks have a mandate to promote price stability; the Fed is said to have a dual mandate to also maximize employment. Over the decades, we believe most economists have come to believe pursuing an inflation target is the holy grail of modern central banking. As such, it's not a surprise that by arguing inflation is too low, central bankers have justified the pursuit of their various policies since the onset of the financial crisis. Some prominent central bankers, including European Central Bank (ECB) head Draghi, have argued the law requires them to pursue an inflation target, thus pursue potentially ever greater monetary easing; and that if there are unintended consequences, 'macro-prudential' measures ought to be employed by policy makers to address those (as an example, the argument is central to this speech by Draghi last February). Our interpretation: Draghi sees his role as doing whatever it takes, and don't blame him if there are unintended consequences. While Draghi may be more radical in some of the tools he employs, we consider his "leadership" as a symptom of the environment we are in.

Brazil makes big push in Asia (Michael B.)

Brazilian Ag Minister Blairo Maggi planned to make the most of a trip with Brazilian President Michel Temer to the G-20 Summit in China. With a group of about 100 Brazilian businesspeople in tow, Maggi will meet with Asian importers until later this month in South Korea, China, Thailand, Vietnam, India and other regional countries in an attempt to reach the administration’s stated goal of increasing Brazil’s share of the world agriculture market to 10% (from its current estimate of 7%) within five years.

Is Another Attica on the Horizon? (jdargis)

Historian Heather Ann Thompson argues that there’s a direct line between the deadly 1971 Attica protests and the current call for action. For her latest book, Blood in the Water: The Attica Prison Uprising of 1971 and Its Legacy, she spent over a decade unlocking the secrets and sifting through the misinformation about the infamous prison revolt that still shapes our society’s perception of and relationship to incarceration. An edited and abridged version of our conversation follows.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/9/16

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."

27 Comments

KennethPollinger's picture
KennethPollinger
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2nd try: Wealth Insurance??

Inside: Jeff Clark helps you plan for the turmoil ahead... Mike Maloney shows you the troubling signals there's pullback in progress... plus Jeff answers a key question on numismatics

How Much Gold and Silver You Need for the Crises

By: Jeff Clark, Senior Precious Metals Analyst
 
Most of you are convinced of the need to own gold and silver. But as you continue to accumulate, a question naturally arises: how much do you need?
 
Imagine the sick feeling in your gut if we get to the crisis and you suddenly realize you didn’t buy enough bullion to get through it. For this reason alone, it’s worth thinking about how many ounces you might need.
 
Traditional financial advice is that gold should comprise 5% or 10% of assets. But Mike and I are convinced that won’t cut it in the turmoil ahead. What passes for “normal” advice could be financially devastating in abnormal times.
 
If you’ve struggled to determine if you have enough physical gold and silver, I have a practical guide for you. This measuring stick is a more effective way to gage if your allocation will be sufficient.
 
Which brings up a rather obvious question:
 

  • When we sell, what will you do with the proceeds?

 
There will be plenty of options, from buying undervalued investments to building a family fortune… from buying a vacation home to supplementing your income during the crisis.
 
The point is, you will buy something with those proceeds.
 
And that is the starting point in knowing if you have enough ounces: will your stash be sufficient to support your standard of living during a major financial disorder?
 
A “major financial disorder” will include inflation, of course, but it’ll be much more than that. The global economy is likely to undergo a series of crises, only one of which will be inflationary.
 
And those crises won’t resolve quickly. As a result, we need to be prepared to weather all storms that hit our economy, markets, and monetary system, even if they last for several years. We’ll be living through the entire transition period.
 
And that means we may need to supplement, or fully support, our standard of living.
 
It is with this reality in mind that the following tables were created.
 
I calculated how much gold and silver you would need based on two factors: your monthly expenses, and how long the crisis period lasts.
 
Here’s the table for gold.

If you want to supplement your expenses by $500/month and the crises last three years, you would need about 14 ounces of gold to get through it.

[The charts assume the gold price keeps up with inflation, though history shows it is likely to far surpass CPI readings. If so, it’s possible we’d need less than what is shown. It also assumes you pay the taxes from another source.]

If you want to cover $3,000 in monthly expenses, you’d need 45 ounces to meet a crisis period of two years, and 90 ounces if it lasts four years.
 
Those already well off or who want to live like Mike or Alex should use the bottom rows of the table.
 
Of course we own silver too. Here's how many ounces you’d need if you’re using silver proceeds.

A $500/month supplement would need 300 ounces of silver to get through one year, or 1,500 ounces for five years.
 
If you want $3,000/month, you’ll need 1,800 ounces for one year, or 7,200 if it lasts 4 years.
 
Of course we can use both gold and silver to meet expenses. For $1,000/month, you’ll need nine ounces of gold and 600 ounces of silver to get through a two-year crisis period.
 
These amounts may look high, but keep in mind that if you don't save in gold and silver now, you'll be forced to spend a whole lot more in currency later.
 
These tables show how practical gold and silver can be. They really can be used to protect our standard of living—and even improve it.
 
So how much gold and silver do you need? I hope these tables show what you need to accumulate.

 

Edwardelinski's picture
Edwardelinski
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Ken

I am coming thru on a family thread.I won't comment on gold allocation not being expert on the subject.I do remember that you are a fan of financial newletters.I wont link this but if you have time google piggybacking Canadian social security.Click the second one on the list.That is valuable information....

 

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Hillary medical event at 9/11 ceremony?

Per ZH, "Hillary Clinton Reportedly Suffers "Medical Episode", Rushed Away From Ground Zero: Fox News"

http://www.zerohedge.com/news/2016-09-11/hillary-clinton-reportedly-suffers-medial-episode-rushed-away-ground-zero-fox-news

While we have yet to receive any confirmation from a second source - so take this report with a big grain of salt - moments ago Fox News senior correspondent Rick Leventhal, citing an anonymous law enforcement official as a source, reported that Hillary Clinton who was present at the Sept 11 ceremony in downtown Manhattan, suffered a "medical episode" when she stumbled and nearly fell after her knees buckled, and was then ushered into a van, in the process losing a shoe, as she was rushed away from ground zero in an early departure.

 

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One of the earliest pictures of the Shanksville Ditch

I hadn't seen this photo before Christopher Bollyn's talk last week at the National Press Club:

There is absolutely NOTHING at this field in Pennsylvania suggestive of an airplane crash.  Except the narrative.  We are told that it is an airplane crash site and that there is an entire jetliner buried 20 feet beneath the surface.

 

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Edwardelinski
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Christopher Bollyn

Jacob Siegel wrote a piece for the Daily Beast yesterday titled Jew hater Christpher Bollyn brings 9/11 false flag act to the Brooklyn Commons...A Jewish point of view if you will...

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Conspiracy theories

I see that the Daily beast is accusing the Rabid Right of conspiracy theories about Clinton's health.

I plowed doggedly through your reference Edward, but emerged none the wiser. This is evidence that I am not a bigot.

http://www.thedailybeast.com/articles/2016/09/11/reports-hillary-leaves-...

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Re: Hillary medical event at 9/11 ceremony

Time2help's picture
Time2help
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North Tower Exploding by David Chandler

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Saudi Press Just Accused US Govt Of Blowing Up World Trade Ctr

Saudi Press Just Accused US Govt Of Blowing Up World Trade Centers As Pretext To Perpetual War (ActivistPost)

U.S. Planned, Carried Out 9/11 Attacks – But Blames Others For Them (Middle East Media Research Institute)

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pinecarr
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Check out LACK of surprise to Hillary fainting/stumbling

Ok, so the thing that struck me instantly on watching this video of Hillary stumbling/fainting is that her "handlers" (and this appears to be a literal description as you watch the video) show NO SURPRISE AT ALL when Hillary stumbles/faints.  Also notice how sturdily/supportively the one person is holding Hillary up PRIOR to the stumble. 

In other words, based on their behaviors, these people indicate that they EXPECTED Hillary to exhibit this kind of physical behavior; that it is consistent with their expectations.   They are NOT SURPRISED AT ALL by it.   Wow!!

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No Sh!t!!!

Wow yet again!!!!

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Time2help
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Meh...

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I am feeling really sorry for Hillary

The medical blogs are awash in rumors about what is going on with her.  As a human being, I am sorry to see her doing so poorly.  I am also sad that she can't just say "I need some time off.  I'm sick.  Take me home and put me to bed."

I believe that we can be sure that she has some neuro-degenerative condition--or possibly a systemic  medical illness with neuro-degenerative aspects.

1.  A brief video shows a cognitive "pause."  Is this a decline in cognitive capacity to cope with the stress of a heckler?  After settling words, she comes back strongly, speaking clearly and dealing with the heckler.

2.  We also know that she has shown inappropriate repetitive facial movements lasting a few seconds.  If this is truly a seizure (big "if") , it would be described as "complex partial" seizures (no loss of consciousness) which can be very brief.

3.  She is having trouble walking and climbing stairs.

4.  She has a therapist/support person at her side.  I have seen this person described as a "handler" and identified as a "secret service agent."  To me he looks like a therapist / behavioral coach / support person judging from the role he seems to play.  He comes to her side, touches her, coaches her "keep talking."

5.  She is not giving press conferences.  This suggests to me that careful video recording of her speech and movements are not in her best political interest.

Neurologic conditions are very hard to diagnose for non-neurologists.  There are just so many with overlapping features.

But, I can be sure she is not doing well medically.  She needs a comfortable chair in the sun room and a garden to piddle in.

Talk about a potential Black Swan for the political world.

 

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No Debris

Sand_Puppy,

I don't recall ever seeing any press coverage with live filming and photos of the actual Shanksville site.  For an airplane crash site, where is the debris field?  Wings, fuel burning the trees,  seats, bodies???

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hillary: agree

SP-

While I don't have your expertise, its just really clear there is something wrong here.  I agree with your sentiment.  She is in a situation, some kind of trap of her own making.  Perhaps she was promised the nomination if she was a good soldier, and she's refusing to give up her shot at the big job even though her body just isn't up to the challenge.

Its scary to think of her entering into negotiations with other heads of state and having some kind of episode.  We could end up with the "Nancy Reagan running the White House" situation, but with Bill Clinton instead.    No volatility there.

We might consider looking at her running mate more closely.  He could well be President after not so long.

I'm guessing could be the actual plan at this point.  Anyone know anything about him?  Those VP candidates don't get nearly the scrutiny that the presidential candidates do.  Does he have a "foundation"?  What are his views on foreign policy, war, the cartels, banks, etc?

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thc0655
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Nothing to see here. Move along sir.

A reporter from the NY Times assured me there's nothing wrong with Hillary''s health. He should know: he's an objective medical professional.  /sarc off/

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Have a great weekend

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Tim Ladson
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No Debris Indeed

levin,

Everything is supposedly in that little tiny smoking hole all nice and neat. The whole airliner is 20 feet down we are told, but they were somehow able to recover the cockpit voice recorder 

Tim.

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duplicate post

.

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Pattern recognition and 9/11

Thoughtful folks must always admit that some things are just coincidental.  For this reason, one can't just point at one of two of the oddities of 9/11 and suggest that these facts alone prove anything.  But, if any reasonable person allows themselves to look into the details of 9/11.. they will over time see that the number of coincidental anomalies encountered submits a crushing weight on the official story.  Go down any rabbit hole you want to... the Pentagon.. Shanksville.. Building 7.. or the unprecedented obstruction and obfuscation employed afterward, they all lead to the same place:  We need a new and impartial investigation.

 

     

Also from Alien Scientist - one tiny rabbit hole explored;

Who Killed John O'Neil?

John O'Neill started his new job at the WTC shortly before he was killed there. His having landed that particular job at that particular time raises some very interesting questions.

Among them: Why does this matter?

If, as many people believe, 9/11 was a false-flag operation designed to implicate Osama bin Laden, then a legend, or a cover story, involving bin Laden would have to be fabricated, disseminated very quickly, and swallowed whole -- not just by the American people but by the people of the world.

And John O'Neill was a most -- if not the most -- formidable obstacle in the way of such a cover story.

He was not only the world's leading expert on bin Laden, but he was also regarded as a "loose cannon", because of his record of working outside normal channels when normal channels were "blocked". He knew FBI investigations into bin Laden and al-Q'aeda had been shut down in the summer of 2001 and it is extremely unlikely that he would have remained quiet about it. He also knew whether or not Osama bin Laden was capable of inflicting the amount of damage the US suffered on 9/11.

In other words, if the conspirators were hoping to spread a Big Lie about Osama bin Laden, they would have had a short list of things they absolutely had to do.

Surely, one of the items on that list would be to silence John O'Neill.

And what better way than to entomb him at the scene of the crime?

So many questions!

Who got John O'Neill the WTC job?

Strangely, perhaps, John O'Neill was lured to the WTC position by his old friend Jerome Hauer, Managing Director of Kroll.

http://alienscientist.com/911.html

 

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Time2help
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What is going on?

Watch her feet starting around 10 seconds.

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Rector
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Cant be. Check the Wiki Page

They have a photo of a backhoe "unearthing" one of the engines.  Case closed.

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sand_puppy
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There is the engine

The jet engine from beneath the ground in Shanksville.

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About that "Soft Earth"
sand_puppy wrote:

The jet engine from beneath the ground in Shanksville.

 

The official narrative, repeated endlessly like a news meme loop that Conan O'Brian might roast with a compendium on his nightly show, was that Flight 93 "plowed into the soft earth."

Here's but one example:

The flight went down 20 minutes from Washington, D.C. There were no survivors. A third of the plane bounced into the trees, the rest plowed deep into the soft earth of the reclaimed strip mine. Excavators hired by the Justice Department dug down 50 feet over the next two weeks and still couldn't find more than a fraction of the human remains. (The black boxes were found at 15 and 25 feet.)

(Source - Pittsburg Post-Gazette)

A version of this same line was repeated hundreds and hundreds of times in all the major news outlets.

But what exactly do we mean by "soft earth"  Certainly I can understand that if the ground has no rocks and is a peaty, boggy, swamp, we might call it "soft" but what does that phrase mean in the context of dry ground?

Well, as someone who has drilled into a lot of ground to put in fence posts I can tell you that any soil with abundant rocks in it is "tempered' by the presence of those rocks and is anything but "soft."

Looking at that picture above I can tell you that is very rocky soil.

It would have provided a lot of resistance.

Now I will also admit that something traveling 500 mph can do a lot of unexpected, non-intuitive things...but I'm having trouble understanding how the wingtips, at least, did not shear off, make fragments, and be spread around like aluminum confetti.  

I would want the NTSB to accelerate some similar constructions into similar earth and film it at high speed and show me those wings slicing into the "soft" ground and entirely disappearing....because that would be totally unexpected by me and counter-intuitive.

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From Russia with Love

In your mind's eye, rotate this structure 90 degrees...and look again.

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