Daily Digest

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Daily Digest 2/9 - Slaughter In The Streets, The Next American Farm Bust Is Upon Us

Thursday, February 9, 2017, 11:34 AM

Economy

Slaughter on the streets: Brazilian city sees its murder rate go up 650% after police go on strike, with 52 murders in just THREE DAYS across lawless region (thc0655)

The chaos has been compared to the 2014 thriller film The Purge, where people take advantage of the absence of law and order to carry out horrific crimes.

With officers staging a walk-out over conditions and wages, thugs are running riot, with people running rampant with guns and machetes, shops being robbed, buses set on fire and dead bodies are left lying in the street.

The U.S. military's stats on deadly airstrikes are wrong. Thousands have gone unreported (Boomer41)

Most alarming is the prospect this data has been incomplete since the war on terrorism began in October 2001. If that is the case, it would fundamentally undermine confidence in much of what the Pentagon has disclosed about its prosecution of these wars, prompt critics to call into question whether the military sought to mislead the American public, and cast doubt on the competency with which other vital data collection is being performed and publicized. Those other key metrics include American combat casualties, taxpayer expense and the military’s overall progress in degrading enemy capabilities.

Silver Market Set Up For Much Higher Price Move Than Gold (reflector)

There are three crucial reasons why the silver price will outperform the gold price when the highly inflated paper markets disintegrate under the weight of massive debt and derivatives. While many precious metals investors are frustrated by the ability of the Fed and Central Banks to continue to prop up the markets, the longer they postpone the day of reckoning, the worse the collapse.

U.S. Exorbitant Privilege At Risk?! (Axel M.)

Applied to the U.S. as a country, investors borrow cheaply in the U.S., and seek higher returns by investing in the rest of the world. In the investment world, we also refer to this as carry, i.e. one might say the U.S. engages in an amazing carry trade. As long as this ‘carry trade’ works, it is quite a charm. That said, there are those who are concerned that the party cannot last forever. To quote from our own past writings, the former head of the European Central bank Wim Duisenberg said in 2003: ‘We hope and pray the global adjustment process will be slow and gradual." -- In fact, a reference to a "disorderly adjustment of global imbalances" was a risk cited by the ECB every month in its statement until about the time current head, Draghi, took over. This "adjustment process" is a thinly veiled reference to a potential dollar crash.’

David Stockman – Get out of Stocks Now! (Herman J.)

David Stockman discusses what he believes Trumps role is as a disrupter of existing evil in Washington and why we should get out of stocks now!

Goldman Stunned By Collapse In Gasoline Demand: "This Would Require A US Recession" (reflector)

So yes, both gasoline stocks and supply remains at extremely high levels, but what set off alarm bells is not supply, but demand: the EIA last week reported that the 4-week average of gasoline supplied - or implied gasoline demand - in the United States was 8.2 million barrels per day, the lowest since February 2012. And, as Reuters adds, U.S. refiners are now facing the prospects of weakening gasoline demand for the first time in five years.

Oil Prices Tank After API Reports 2nd Biggest Crude Build In U.S. History (Uncletommy)

While reduced OPEC production for January has seemed to support higher oil prices, reports of OPEC’s accomplishments have lost some sway in recent weeks in the wake of the American Petroleum Institute and the Energy Information Administration reports, which have both reported weeks of builds for crude oil, along with Baker Hughes, which showed that US drillers are putting rigs into production at rates not seen since mid-2014 before the oil price crash began.

A Top Climate Scientist Blows the Whistle on Shoddy Climate Science (Boomer41)

So Karl, the former head of the NOAA office that produces climate data, worked with a team of scientists to challenge the IPCC findings and prove that the hiatus did not exist. He claimed to have developed a way to raise sea-temperature readings that had been collected by buoys: He would adjust them by using higher temperature readings of sea water collected by ships. “In regards to sea surface temperature, scientists have shown that across the board, data collected from buoys are cooler than ship-based data,” said one of the study’s co-authors. It was therefore necessary, the NOAA scientists held, to “correct the difference between ship and buoy measurements, and we are using this in our trend analysis.”

The Next American Farm Bust Is Upon Us (Don R.)

From his father’s porch, the 56-year-old can see the windswept spot where his great-grandparents’ sod house stood in 1902 when they planted the first of the 1,200 acres on which his family farms alfalfa, sorghum and wheat today. Even after harvesting one of their best wheat crops ever last year, thanks to plentiful rain and a mild winter, Mr. Scott isn’t sure how long they can afford to keep farming that ground.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/8/17

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to dd@peakprosperity.com. 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."

10 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3988
'AAA' rated sovereigns plunge to 13 year low, says Fitch

'AAA' rated sovereigns plunge to 13 year low, says Fitch

CNBC - ‎1 hour ago‎
The number of countries assigned the top 'AAA' rating by credit ratings agency Fitch has slunk to a 13-year low with no improvement expected in the coming two years. Only eleven countries currently hold the coveted highest rating which compares to a ...

European debt crisis: It's not just Greece that's drowning in debt

Telegraph.co.uk - ‎Feb 8, 2017‎
Greece is still drowning in debt as the International Monetary Fund has warned that its debts are on an "explosive" path. Despite years of attempted austerity and economic reforms, the European Union is still facing a crisis due to the debt that Greece ...

BOJ to maintain powerful easing for 2% inflation: deputy chief

The Japan Times-8 hours ago
... drive down long-term interest rates to stimulate consumption and investment by buying massive bonds from the market and introducing a negative interest rate ...

Portugal Banks' Concern: Still Wobbly After All These Years

Bloomberg-6 hours ago
The banking sector's woes have weighed on the country's sovereign debt, with Portugal's 10-year bond yield on Monday touching the highest level in a year.
 

Germany brings its gold stash home sooner than planned

CNBC - ‎2 hours ago‎
Germany's central bank is bringing home gold reserves stored in places like New York and Paris faster than planned, it said on Thursday, as confidence in the euro ebbs even in the heart of the currency bloc after a decade of a sluggish economy. Stashed ...

Record $2 trillion of US corporate debt comes due in the next 5 years

MarketWatch - ‎20 hours ago‎
A record $2 trillion of U.S. corporate debt comes due in the next five years, Moody's Investors Service said Wednesday. That's potentially challenging for industries with the heaviest debt loads, including telecom and energy, but is softened by ...

Record $1 Trillion in Junk Debt to Mature in Next 5 Years

Wall Street Journal (blog)-17 hours ago
More than $1 trillion of junk-rated corporate debt is slated to mature over the next five years, creating a stiff challenge for heavily-indebted businesses if the ...

WA election: debt blows out to $41 billion in bad news for Colin Barnett

The Australian Financial Review - ‎12 hours ago‎
The economic credibility of the Liberal-National West Australian government has been dealt a deep blow just a month out from the state election, with Treasury wiping out any return to surplus and tipping net debt will pass $40 billion for the first ...

Puerto Rico Said to Seek Deeper Concessions in Utility Debt Deal

Bloomberg-3 hours ago
Puerto Rico Said to Seek Deeper Concessions in Utility Debt Deal ... to restructure about $9 billion of electric utility debt, an effort that could result in a showdown ...

Pension Crisis Forces Puerto Rico Retirees to Rethink Future

ABC News-36 seconds ago
Puerto Rico's economic crisis has left the public retirement system with a more than $40 billion deficit and that's pushing elderly people who depend on it back ...

Illinois budget deal hits snag after key pension bill fails

WSAU-17 hours ago
... ease Illinois' $130 billion unfunded pension liability was rejected in a 29-18 vote, ... aid for home-rule governments to be sent directly to bond trustees for debt ...

Americans deserve to know the truth about government spending

The Hill (blog)-19 hours ago
... 2002, publishes data showing how states carry over $686 billion of pension debt. ... reporting surpluses, Social Security was running a half of a trillion deficit.

Should Greece stay or should it go? Analysts divided on whether Greece will exit euro

CNBC - ‎3 hours ago‎
The future of Greece in the euro zone is once again in doubt as creditors and Athens cannot agree on debt relief for the troubled economy. The outspoken German Finance Minister Wolfgang Schauble told the German broadcaster ARD that in order to cut its ...
 
 

German FinMin: Greece Must Implement Reforms or Leave Euro Zone

Greek Reporter - ‎8 hours ago‎
German Finance Minister Wolfgang Schaeuble on Wednesday brought back the Grexit issue by saying that unless Greece implements reforms it cannot stay in the euro zone. The German finance minister spoke to the country's broadcaster ARD in light of the ...

Greece should quit euro zone, get debt relief, German party leader says

Reuters - ‎7 hours ago‎

BERLIN Greece should leave the euro zone and then be given debt relief, the head of Germany's pro-business Free Democrats (FDP) told a German radio station on Thursday. Greece should, however, remain in the European Union, FDP leader Christian ..

Milliman Study: Public Pension Plans See 4Q Funded Ratio Decline

Chief Investment Officer-1 hour ago
Milliman finds that the funding status of the 100-largest US public pension funds declined $54 billion over this period, while their deficit rose from $1.338 trillion ...

 

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2212
The 3rd E

I'm linking to an article by Mike Snyder about Fukushima radiation, "Entire Northern Hemisphere In Great Danger As Fukushima Radiation Spikes To ‘Unimaginable’ Levels"

http://www.silverdoctors.com/headlines/world-news/entire-northern-hemisphere-in-great-danger-as-fukushima-radiation-spikes-to-unimaginable-levels/

The article certainly is frightening enough if it is accurate in its assessment... and therein lies the question.  I would love it if Chris, or others with expertise in this area (Dogs, where are you?) to pitch in and give your take on this.

Sounds like maybe I tell my elderly mother that we won't be buying her canned Pacific red salmon anymore...

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1410
Farms (GMO)

Could see the crash a mile away.  Short JI Case and Deere???   How fight large GMO farms when land and equipment prices are skyrocketing due to FED money printing?   

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1410
Farms (GMO)

[Duplicate]

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1128
Get ready

for the 19th century...I don't think it will happen soon...however,,,I have enjoyed schooling my children in the old school, and am sure you did the same.

Bluestem's Aethling Quinn. Is full of herself and is projected to finish growth at 16.3-17.1 and 1800 lbs.

are you and yours ready?

Hotrod's picture
Hotrod
Status: Silver Member (Offline)
Joined: Apr 20 2009
Posts: 169
The Amish

Robie,

The Amish may lead the way back to the future.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3988
Japan government debt hits record-high 1066tn yen at end of Dece

As Trump hustles to nail down a tax overhaul, he faces the biggest ...

CNBC-18 hours ago
But the nation's soaring debt will complicate any effort to slash taxes. ... to investors who hold the existing $19.9 trillion in federal debt has already begun to rise.

Japan government debt hits record-high 1066tn yen at end of ...

Nikkei Asian Review-6 hours ago
TOKYO (Kyodo) -- Japan's government debt stood at a record 1,066.42 trillion yen ($9.4 trillion) as of Dec. 31, highlighting the difficulty of restoring the country's ...

Chinese companies act as banks to prop up failing operations

The Australian-9 hours ago
It also adds to China's $US18 trillion corporate debt pile, already equal to 168 per cent of gross domestic product, according to the Bank for International ...

Le Pen debt plan threatens massive default, say rating agencies

Financial Times-2 hours ago
This would, according to rating agencies, be likely to amount to the largest sovereign default on record, nearly 10 times larger than the €200bn Greek debt ...

China Bitcoin Exchanges Halt Withdrawals After Central Bank Talk

Yahoo Finance - ‎12 hours ago‎
China's three biggest bitcoin exchanges took steps to prevent withdrawals of the cryptocurrency amid pressure from the nation's central bank to clamp down on capital outflows. BTC China subjected all bitcoin withdrawals to a 72-hour review, while Huobi ...

Bitcoin drops by $100 as China's central bank corrals the market

CNBC-1 hour ago
Chinese bitcoin exchanges have disabled withdrawals of the cryptocurrency after meeting with the People's Bank of China, indicating the central bank has ...

Fed's Evans says inflation has to hit 2% for central bank to maintain ...

MarketWatch-21 hours ago
In a speech to the CFA Society of Chicago, Evans said the central bank would damage its standing with investors if it fails to bring inflation up to its 2% target.

Greek yields spike amid creditor dispute, minister reveals pressure ...

CNBC-8 hours ago
Being eligible to be part of the European Central Bank's QE program would "help the momentum that we have," the minister said, referring to the recent data ...

Monte dei Paschi posts 3.4 billion euro loss in 2016 after loan writedowns

euronews - ‎20 hours ago‎
The Rome government is set to take a 70 percent stake in the bank, pumping 6.6 billion euros to fill the bulk of an 8.8. billion euros capital deficit. The rest of the money will come from the forced conversion of subordinated bonds into shares. But ...

Fed buys $8.5 billion of mortgage bonds, sells none

Reuters-21 hours ago
Fed buys $8.5 billion of mortgage bonds, sells none ... on the agency debt and agency mortgage-backed securities, or MBS, it holds to reinvest in agency MBS.

Detroit Is Rising From The Ashes Of The Financial Crisis With Urban ...

Konbini US-17 hours ago
In 2011, as industry deserted the city, Detroit suffered an economic downturn that resulted in an 18.5 billion dollar debt for which they filed bankruptcy in 2013.

 

LesPhelps's picture
LesPhelps
Status: Platinum Member (Offline)
Joined: Apr 30 2009
Posts: 713
456 2016 Unreported air strikes in Afghanistan Alone

It sounds like the reported 26,171 bombs dropped in 2016 might be a smidgen short of reality.  I wonder what, if anything, the US Government reports accurately?!

thc0655's picture
thc0655
Status: Diamond Member (Online)
Joined: Apr 27 2010
Posts: 1442
Carnage escalates in Espirito Santo during police strike

http://www.reuters.com/article/us-brazil-violence-idUSKBN15P22E?il=0

Authorities in the Brazilian state of Espirito Santo threatened striking police officers with criminal charges on Friday as the federal government sent in more troops in a bid to end a week of violent anarchy that has left more than 120 people dead.

Espirito Santo is one of several Brazilian states grappling with a budget crisis that is crippling essential public services for millions of citizens. The police strike over the past week, over pay, has left a security vacuum and led to rampant assaults, heists and looting, often in broad daylight. 

Limited protests by police in nearby Rio de Janeiro alarmed many residents of the teeming city of 12 million people, many of whom live in fear of violence between rival drug gangs spilling out of hillside slums.

A spokesman for the local police union in Espirito Santo said the death toll from a week of unrest had risen to 122. Many of the dead are believed to come from rival criminal gangs, according to police.

State officials have not officially confirmed the number of dead. 

If accurate, the toll would be more than six times the homicide rate in the state last year.

President Michel Temer's government said late on Thursday that hundreds more soldiers and federal police would be sent in to help stem the chaos, focused mostly in the metropolitan region of Vitoria, the state capital.

thc0655's picture
thc0655
Status: Diamond Member (Online)
Joined: Apr 27 2010
Posts: 1442
This trend in govt education implies our future is bleak

https://www.city-journal.org/html/no-thug-left-behind-14951.html

The Three E's predicaments and problems are challenging our health, standard of living and even survival.  This trend, which is NOT limited to St. Paul, implies we won't be getting much help from government schools toward addressing The Three E's for the foreseeable future.

In the Obama years, America’s public education system embarked on a vast social experiment that threatened to turn schools into educational free-fire zones. The campaign—carried out in the name of “racial equity”—sought to reduce dramatically the suspension rate of black students, who get referred for discipline at much higher rates than other students. From the top down, the U.S. Department of Education drove the effort; from the bottom up, local educational bureaucrats have supported and implemented it.

“Racial equity” has become the all-purpose justification for dubious educational policies. Equity proponents view “disparate impact”—when the same policies yield different outcomes among demographic groups—as conclusive proof of discrimination. On the education front, “equity” does not seek equal treatment for all students. Instead, it demands statistical equivalence in discipline referrals and suspensions for students of every racial group, regardless of those students’ actual conduct.

Equity advocates’ central premise is that teachers, not students, are to blame for the racial-equity discipline gap. They claim that teachers’ biases, cultural ignorance, or insensitivity are the gap’s primary causes. The key to eliminating disparities, they maintain, is to change not students’ but adults’ behavior. Equity supporters justify their agenda on grounds that the racial-equity discipline gap severely hampers black students’ chances of success in life. Kids who get suspended generally fail to graduate on time and are more likely to get caught up in the juvenile-justice system, they say.

President Obama’s Department of Education made racial equity in school discipline one of its top priorities. “The undeniable truth is that everyday educational experience for many students of color violates the principle of equity at the heart of the American promise,” according to Arne Duncan, who served as education secretary until early 2016. “It is adult behavior that must change,” Duncan stated repeatedly. “The school-to-prison pipeline must be challenged every day.”

If you are fortunate enough not to live in St. Paul (or any other urban area where these concepts have been implemented, like I have in Philadelphia), read on to discover the chaos and violence that resulted directly from these dubious concepts and social engineering.  

The American government school system generally isn't helping address the issues we study here at PeakProsperity.  They're adding another collapsing bubble to our list of woes and robbing us of potential help (the younger generation).

And in case you're wondering, the same basic principles have been applied to law enforcement for at least the last 8 years.  That is, we've been told that if blacks are arrested, prosecuted and jailed at any significant rate above their representation in the overall population then the reason is racism and it must be changed.  So, for example, if blacks represent 73% of those arrested for violent crimes but they are only 40% of the population of the city, then the police are racists and must be restrained.  It matters not, for instance, that victims (of all races) report to the police that their perpetrators were black 80% of the time.  The decline in law and order will continue as long as these values and concepts hold sway.  Prepare accordingly.

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