Daily Digest

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Daily Digest 10/1 - What Lies Beneath, Why A Steady-State Economy Will Not Be Capitalist

Saturday, October 1, 2016, 10:01 AM

Economy

Here's the Smoking Gun That China Has a Huge Housing Bubble (Adam)

After analyzing how much developers were willing to spend to win land auctions in 10 major Chinese cities in which values are already up 23 percent year-over-year, the economist found that the business case for these bids evaporates unless property prices continue to increase.

"People Are Mad" - Dave Collum Warns "Existential Change Is In The Air" (reflector)

The social contract on the home front is faltering badly. When the system started to fail in ’09, we stitched up a putrid wound without cleansing it. We needed reform of a highly flawed banking system corrupted by poor incentives. In the 1930s, the Pecora Commission rounded up scoundrels (including the head of the New York Stock Exchange) and threw them in prison. We should have hung a few in the town square, but instead the Obama Department of Justice punished shareholders and savers. A scandal at Wells Fargo emerging just this week, for example, led to a token fine while leaving some wondering if Wells Fargo is too corrupt to exist in its current form. It is not the government’s job to break up these institutions, nor should it save them.

Secret Alpine Gold Vaults Are the New Swiss Bank Accounts (Adam)

The owner of this gold vault wants to remain anonymous for fear of compromising security, and he worries that even disclosing the name of his company might lead thieves his way. He’s quick to dismiss questions about how carefully he vets clients but says many who come to him looking for a safe haven for their assets don’t pass his sniff test. “For every client we take, we turn one or two away,” he says. “We don’t want problems.”

Another reason why a steady-state economy will not be a capitalist economy (richcabot)

This line of argument, centring on the intrinsic nature of a market system, is persuasive, but although Smith’s commentary was made two years after the article he discusses it does not deal with the counter-argument Daly raised briefly in his 2008 statement. This is the possibility that technical advance will enable increasing dollar value to be got out of a stable amount of material and ecological inputs to the economy, thereby making it possible for sales and GDP to go on increasing. Daly says, “… the value of total production may still increase without growth in physical throughput – as a result of qualitative development. Investment in quality improvement may yield a value increase out of which interest could be paid.”

How Massive Cuts Have Remade The Denver Post (jdargis)

Newspapers across the country have been dealing with unprecedented turmoil for most of this century, but Post staffers can be excused for feeling like the past year has been exceptional for the pain they have had to endure. In addition to buyouts and layoffs and a substantial newsroom restructuring, this past March journalists at the Post saw their beloved editor, Gregory L. Moore, abruptly resign amid rumors he refused corporate orders to cut more jobs from an already gutted staff. Moore, who’d reached near-iconic status in his 14 years leading the paper, picked the newsroom to announce he was leaving, rather than the first-floor auditorium where big news—and frequently bad news—was often delivered. Though he’d soon be gone, Moore didn’t want his staff thinking they would be, too.

Max Keiser: ‘Biggest financial collapse ever’ in next 12 months (Herman J.)

“[I’m] looking forward to the next 12 months, because we’re going to see the biggest financial collapse, probably ever!”

Top central banker's Clinton donation puts Fed in political crosshairs (lambertad)

George acknowledged the Fed has been under increased scrutiny during the 2016 presidential campaign, as Trump repeatedly accused Yellen of keeping interest rates low to keep the economy stable to burnish President Barack Obama's legacy and help Clinton slide into the White House.

What Lies Beneath (Cornelius9999)

Using the industry’s own figures, it shows that burning the oil, gas and coal in the fields and mines that are already either in production or being developed is likely to take the global temperature rise beyond 2°. And even if all coal mining were to be shut down today, the oil and gas lined up so far would take it past 1.5°. The notion that we can open any new reserves, whether by fracking for gas, drilling for oil or digging for coal, without scuppering the Paris commitments is simply untenable.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/29/16

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."

9 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4145
Illinois downgraded

BRIEF-S&P : Illinois General Obligation Bond rating lowered to 'BBB ...

Reuters-13 hours ago
... it lost by selling soured mortgage debt once owned by a failed Texas bank. ... on Friday struck a $16 billion deal to fund stalled state transportation projects for ...

Fitch Sets Deadline for Illinois

Bond Buyer-20 hours ago
Illinois has until the end of January to make headway with its budget woes before Fitch Ratings is prepared to sock it with a downgrade.

Illinois, Chicago should declare bankruptcy to fix fiscal woes, ex ...

Rock Island Today-20 hours ago
Illinois, Chicago should declare bankruptcy to fix fiscal woes, ex-FDIC chief says ... Illinois is overdue on about $8 billion owed to health care providers and other ...

In Canada, oil sands cost cutting 'close to bone' as crude recovery ...

Chicago Tribune-Sep 30, 2016
Oil-sands developments take years to plan and build and cost billions of dollars. ... At the same time, net debt to earnings before interest, tax, depreciation and ...

 

ezlxq1949's picture
ezlxq1949
Status: Silver Member (Offline)
Joined: Apr 29 2009
Posts: 215
Burn, baby, burn

The notion that we can open any new reserves, whether by fracking for gas, drilling for oil or digging for coal, without scuppering the Paris commitments is simply untenable.

Tell that to the blind, deaf ideologues in Australia's governing Liberal National Party (LNP) coalition. Climate change doesn't exist, global warming doesn't exist, limits to growth don't exist, the amount of carbon we can dig out of the ground and sell is unlimited, technology will always save us.

An unprecedented storm a couple of days ago in South Australia knocked over electricity pylons and blacked out the entire state, but the LNP ideologues quickly blamed the blackout on the state's excessive reliance on renewables (41%).

No, you can't argue with an ideology. The fossil fuel (fool) incumbency is in charge of this country. Australia's role in this world is that of a supplier of raw materials and that's an end to it.

Uncletommy's picture
Uncletommy
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Posts: 569
And the folly continues!

The resource gurus continue to push mega-projects to relieve themselves of excess natural gas in the most inefficient ways they can in order to generate cash flow. Malaysian entrepreneurs are now shopping this approval around to see who else they may "sucker" into buying a stake. Lots of Asian capital appears to be poised to take a run at these assets. 

So much for clean fuel, eh?

https://www.thestar.com/news/canada/2016/09/27/liberals-to-decide-on-lng...

Good article on the particulars of this project. 

 

Time2help's picture
Time2help
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Posts: 2830
Fly, or No-Fly?

Published (Youtube) on September 22, 2016. You could hear a pin drop at 6:40.

As background, "barrel bombs".

MarkM's picture
MarkM
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Posts: 845
T2H

The pin drop moment speaks volumes.

cmartenson's picture
cmartenson
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Posts: 5727
OMG

T2H...Wicker is a complete ass.

He spouted more useless drivel than I've heard in a long time, much of it false.

The trope about Assad using Sarin gas on his own people was debunked a very long time ago and it is just as likely that Sarin was used by the rebel side.

Considering that Obama had said such use was a "bright red line" one can easily make the case that the use of Sarin was something that the rebels would have gained far more from than Assad.

Even Haaretz couldn't ignore the field reports:

United Nations human rights investigators have gathered testimony from casualties of Syria's civil war and medical staff indicating that rebel forces have used the nerve agent sarin; no evidence yet of government use of chemical weapons.
read more: http://www.haaretz.com/middle-east-news/un-has-testimony-that-syrian-rebels-used-sarin-gas-1.519405
But that pin drop moment was simply wonderful and awful.  To have a Senator, a long-serving Senator at that , on the armed services committee not understand that attempting to enforce a no-fly zone which Russia is flying through would be an act of war, not something you simply declare and it is done by fiat, is mind-boggling.
 
How does Mr. Wicker think a no-fly zone is enforced?
 
Is he aware that Russia has an S-400 system in place and can shoot anything out of the sky over Syria, and a good portion of Iraq and Turkey too if it chooses to?
 
How much of an idiot is this guy?  Is he really such an ideologue that he's that ignorant, or is he making money off the conflict on the side?
 
Really, I am horrified and stumped.
Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2830
Believe what you will

We've never been closer.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2830
proPagaNda

Disclaimer: Coming from RT this has it's own angles, but it does provide a sense of the "Russian" perspective on current events. Tone deaf award of the video starts at 4:28.

pinecarr's picture
pinecarr
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Joined: Apr 13 2008
Posts: 2244
Minnesota Commissioner Slams Obamacare As Unfair & Unsustainable

From ZH:

Soaring Obamacare premiums and declining insurer participation rates in exchanges across the country have been a frequent topic of conversation for us (see "Obamacare On "Verge Of Collapse" As Premiums Set To Soar Again In 2017" and "Stunning Maps Depict Collapse Of Obamacare "Coverage" In 2017").  So it should come as no surprise to our readers that Minnesota has just announced that 2017 Obamacare rates have been set and are expected to soar nearly 60% on average.

Minnesota Commerce Commissioner Mike Rothman posted a letter to the state's website saying that the state succeeded in preserving the exchanges for one more year by agreeing to massive rate hikes but warned they are on the "verge of collapse."  The letter goes on to describe Minnesota's healthcare rate environment as "unsustainable and unfair" and notes that "middle-class Minnesotans" are being "crushed by the heavy burden of these costs."

Rothman goes on to state:

“We received over 50 public comments from Minnesotans as part of our rate review,” said Rothman. “I personally read each one. They told heartbreaking stories about how hard-working families are struggling with very tough, painful choices because of these skyrocketing costs. They say that health insurance is unaffordable, and they’re right. This calls for immediate reforms as everyone's top priority.”

 

Reference: http://www.zerohedge.com/news/2016-10-01/obamacare-rates-soar-minnesota-commissioner-slams-unfair-unsustainable-system-crushi

 

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