Daily Digest

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Daily Digest 3/23 - Financial Collapse Will Trigger Civil War, Valuing Military Over Energy

Thursday, March 23, 2017, 8:12 AM


Inside the secret Trump lobby that wants to profit from the break-up of Iraq (Afridev)

By perusing documents, speaking to sources, and digging into obscure public records, INSURGE intelligence was able to follow a thread that has so far been only been guessed at: what is driving the Trump administration’s thinking on Iraq, a country we invaded and occupied in 2003, and where we’re still fighting an endless ‘war on terror’?

A window into the answer comes from a little-known US-Iraqi network, operating through the front of a supposedly patriotic American campaign group.

Doug Casey: Financial Collapse Will Trigger Civil War (pinecarr)

Casey says financial markets are all in bubble territory, but the bond market is in the biggest bubble of them all. Casey contends, “What papered things over? Why did it get better for the last few years? These governments have lowered interest rates to not just zero but less than zero in parts of the world. They have created scores of trillions of new currency units which have poured oil on the financial waters. That currency still exists and it’s going to come out, and it’s going to evidence itself in the form of retail inflation. So far, it’s just been inflation in the financial markets. They’ve created a bond super bubble. They’ve created a stock market bubble. They have created a real estate bubble in a number of places in the world. So, this is going to be very, very ugly. It’s hold on to your hat time.”

What’s Next For The Dollar, Gold & Stocks? (Axel M.)

If I don’t like stocks, what about bonds? While short-term rates have been moving higher, longer-term rates have been trading in a narrow trading range for quite some time, frustrating both bulls and bears. Bonds are often said to perform well when stock prices plunge, but don’t count on it: first, even the historic correlation is not stable. But more importantly, when we talk with investors, many of them have been reaching for yield. We see sophisticated investors, including institutional investors, provide direct lending services to a variety of groups. What they all have in common is that yields are higher than what you would get in a traditional bond investment. While the pitches for those investments are compelling, it doesn’t change the fact that high yield investments, in our analysis, tend to be more correlated with risk assets, i.e. with equities, especially in an equity bear market. Differently said: don’t call yourself diversified if your portfolio consists of stocks and high yielding junk bonds. I gather that readers investing in such bonds think it doesn’t affect them; let me try to caution them that some master-limited partnership investments in the oil sector didn’t work out so well, either.

The New Subprime Risk (Tiffany D.)

The risk here isn’t so much another economic collapse like the one that blindsided banks in 2008. Auto lenders and ratings agencies see all the same data. They know the risks and can adjust (and raise the cost of taking out a risky loan).

To me, this is yet another big, bright warning sign of the problem that I’ve been warning you about: Americans are carrying more debt on their personal balance sheets than they can afford to pay.

Don’t look now, but the market’s big money is eyeing the exit (lambertad)

The twin dangers emerge from the latest survey of global money managers by Bank of America Merrill Lynch. The bank’s economists surveyed 165 professional investment managers worldwide, with an aggregate $505 billion in funds under management. The long-running survey, which is conducted each month, is considered one of the best barometers of big money investment opinion. It is also often a good forward indicator of where sentiment — and prices — have the most room to change.

Democrat Leader On Sound Money: “In 1868 Gold Was $27 An Ounce… Today It Is $1,218… So You Can’t Say Gold Will Protect Us From Inflation” (thc0655)

I do have an opinion of facts and facts are somewhat important… and if we say that gold is going to protect us from inflation, I want to point out that in 1868 gold was $27 an ounce and today gold is $1,218 an ounce… so you can’t say gold is going to protect us from inflation when you have that type of a price range over the last hundred years… So i just want to point out that facts are important.

Omaha’s Answer to Costly Potholes? Go Back to Gravel Roads (RZ)

As in many big cities, the infrastructure here is crumbling, a problem exacerbated by decades of neglect and a network of residential roads, including Ms. Amoura’s, that have never met code. But Omaha’s solution is extreme: grinding paved streets into gravel as a way to cut upkeep costs.

The Meaning Of Life (Part 1) (Chris M.)

Almost the whole world nowadays assumes the overwhelming emphasis of biological science on genetics and reductionism to be a logical and inevitable scientific one. But what the history of the Rockefeller Foundation shows is that the virtual wiping out of whole organism biology and the sidelining of diverse other approaches such as Rashevsky’s; of nutritional biology; and of environmental determinism, was a carefully planned coup d’état. It was an overt seizure of the scientific estate intended to substitute genetic determinism for competing ideas about causation in biology.

Inside Alabama’s Auto Jobs Boom: Cheap Wages, Little Training, Crushed Limbs (jdargis)

On June 18, Elsea was working the day shift when a computer flashed “Stud Fault” on Robot 23. Bolts often got stuck in that machine, which mounted pillars for sideview mirrors onto dashboard frames. Elsea was at the adjacent workstation when the assembly line stopped. Her team called maintenance to clear the fault, but no one showed up. A video obtained by the Occupational Safety and Health Administration shows Elsea and three co-workers waiting impatiently. The team had a quota of 420 dashboard frames per shift but seldom made more than 350, says Amber Meadows, 23, who worked beside Elsea on the line. “We were always trying to make our numbers so we could go home,” Meadows says. “Everybody was always tired.”

Trump’s Budget: Valuing Military Over Energy (Michael K.)

One example is 1366 Technologies, a company that pioneered a new solar wafer that can be produced at half of the cost of prevailing technology and with one-third less energy. But the company is now in limbo. It has plans to build a manufacturing facility in upstate New York but has been banking on a loan guarantee from the Energy Department – a program that is slated for elimination in President Trump’s budget.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/22/17

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."


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China Debt Risks Go Global Amid Record Junk Sales Abroad

Why America's Auto Debt Boom Fuels Bubble Talk: QuickTake Q&A

Bloomberg-1 hour ago

There could be, though the amount of auto debt is nowhere near the size of the mortgage market. That's why analysts poo-poo the notion of a 2008-style bubble .

South Korea central bank chief says Daewoo bailout 'inevitable'

Reuters-7 hours ago

South Korea central bank chief says Daewoo bailout 'inevitable' ... plan)," Bank of Korea Governor Lee Ju-yeol told journalists at the central bank headquarters ..

China Debt Risks Go Global Amid Record Junk Sales Abroad

Bloomberg - ‎11 hours ago‎
... raising an unprecedented amount of debt overseas, leaving global investors to shoulder more credit risks after onshore defaults quadrupled in 2016. Junk-rated firms, most of which are property developers, have sold $6.1 billion of dollar bonds ...

Puerto Rico's Health System Close to Broke amid Debt Crisis

teleSUR English - ‎17 hours ago‎
“Our projections on the Medicaid expenditures Florida needed to serve this population (from 2011 to 2025) could exceed US$6 billion, with US$3.7 billion coming from the federal government and the remaining US$2.5 billion from your state funds ...

Venezuela Scrambles to Sell Off Oil Assets and Avoid Default

PanAm Post - ‎21 hours ago‎
EspañolIn an effort to handle its overdue debts, Venezuela is all but giving away oil assets. President Nicolás Maduro is reportedly so desperate to pay the US $3.7 billion in debts that he is selling off the assets to Russia. They offered to sell ...

Greek Deposits Bleeding Drama Resumes Amid Bailout Uncertainty

BloombergQuint-3 hours ago
Outflows this year through last Thursday totaled about 3.6 billion euros, a person ... that risks leaving the country unable to service debt payments this summer.

Brazil cuts 2017 growth forecast, sees inflation below target

Nasdaq-21 hours ago

Brazil's primary budget deficit target for this year is 139 billion reais, but the country's two-year recession has shrunk revenue. Finance Minister Henrique ..

California State University system raising tuition by five-percent

KESQ - ‎13 hours ago‎
Dozens of students in graduate caps and gowns made their way inside the board room, some wearing signs around their necks showing the amount of student debt they had accrued. They periodically interrupted the meeting to shout ``Chancellor White, do ...

Public Pensions Weighing Heavy on Gilroy Taxpayers

Gilroy Dispatch-15 hours ago
“The big factor is the soaring costs. Paying for public retirees has never cost taxpayers more,” Fellner said. The city's unpaid pension liability is $66 million and ...


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" It has plans to build a manufacturing facility in upstate New York but has been banking on a loan guarantee from the Energy Department – a program that is slated for elimination in President Trump’s budget....."   if this was a viable project they would not need government money

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Pension Crisis Too Big for Markets to Ignore

Pension Crisis Too Big for Markets to Ignore

Bloomberg-47 minutes ago
Called the Pension Tsunami, the website was originally conceived to provide Golden ... Unfunded pension obligations have risen to $1.9 trillion from $292 billion ...

Alarm sounded on African debt

Financial Times-22 hours ago
That warning is acquiring greater weight as government debt burdens tick up in many African countries on the back of a rising dollar, low commodity prices, rapid ...

If it looks like a housing bubble and sounds like a housing bubble…(Australia)

ABC Online-11 hours ago
In one sense it doesn't really matter whether there is a housing bubble or not. ... for consumption growth and the risks posed by the level of household debt.".

ECB's chief economist stands by pledge of keeping policy easy - Il ...

Reuters-6 hours ago
European Central Bank executive board member Peter Praet attends the 2016 Institute of International Finance (IIF) Spring Membership meeting in Madrid, ...

Warning sign comes on for S.Korea's massive household debts

Xinhua - ‎7 hours ago‎
Debts owed by so-called high-risk households amounted to 62 trillion won (55 billion U.S. dollars), or 7.0 percent of the total, in 2016, according to the Bank of Korea (BOK)'s report on financial stability. It was up from 5.7 percent, or 46.4 trillion ...

Each Illinois household on the hook for $56K in government-worker ...

Illinois Policy-20 hours ago
In 2012, the unfunded debt related to pensions and retiree health care costs for local and state government workers across Illinois was $203 billion, the ...

Italy bank bailouts to test EU rules again

Yahoo7 News-14 hours ago
In Italy, lenders are saddled with 360 billion euros of gross problematic debts, ... their existing capital, imposing losses on junior debt holders and selling assets.

Report: Puerto Rico municipalities see deep population loss

The San Luis Obispo Tribune-21 hours ago
... shrunk Puerto Rico's tax base amid a 10-year economic slump as the government struggles to find revenue and restructure some $70 billion in public debt.

Venezuela's Fuel Shortage Is Getting Worse

Bloomberg - ‎19 hours ago‎
While Petroleos de Venezuela SA says the situation is normalizing and blamed the lines on transport delays, the opposition says the company has had to reduce costly fuel imports as it tries to preserve cash to pay its foreign debt. Tanker trucks were ...

Goldman Sachs strategist: Yes, Marine Le Pen can win in France

CNBC - ‎1 hour ago‎
The consensus on Wall Street is that euroskeptic Marine Le Pen will not be the next president of France. But not everybody is 100 percent committed to that outlook. One strategist at Goldman Sachs says the market is too complacent about the coming ...


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