Daily Digest

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Daily Digest 6/5 - Collapse Has Arrived, U.S. Jobs Market Much Worse Than Data Suggests

Monday, June 5, 2017, 7:24 AM

Economy

As Russia probe grinds on, Trump struggles to gain traction on agenda (jdargis)

House Republicans hope this week to pass a repeal of portions of the 2010 Dodd-Frank financial reform law. But that bill will face resistance in the Senate, where Democrats are expected to use procedural tactics to kill it.

Even so, House Republicans hope passage of 'low-hanging fruit' bills like this will allow them to argue that they have racked up accomplishments when they go home to their districts in August.

The Numbers Are In: A Single-Payer Health System in California Would Cover Everyone and Save Tens of Billions a Year (edelinski)

The universal coverage would be paid for by combining all government healthcare subsidies, which accounts for about 70 percent of California’s current spending, and by two proposed tax increases: a 2.3 percent gross receipt taxes on businesses (which kicks in after the first $2 million in earnings and which exempts small businesses); and a 2.3 percent increase in the sales tax, with exemptions for necessities such as food, housing, utilities, and other services.

Why Aren’t American Teenagers Working Anymore? (jdargis)

For Baby Boomers and Generation X, the summer job was a rite of passage. Today's teenagers have other priorities. Teens are likeliest to be working in July, according to data from the Bureau of Labor Statistics that's not seasonally adjusted. In July of last year, 43 percent of 16- to 19-year-olds were either working or looking for a job. That's 10 points lower than in July 2006. In 1988 and 1989, the July labor force participation rate for teenagers nearly hit 70 percent.

The U.S. Jobs Market: Much Worse Than The Official Data Suggest (Suzie G.)

By surveying just a small fraction of US businesses, the measurement errors around this survey are significant. The 90% confidence interval is +-120,000 jobs. Thus in the March 2017 report which had +79,000 jobs, 90 out of 100 samples fall within the interval of -41,000 jobs to +199,000 jobs. In other words, statistically it is impossible to say with any confidence that the economy added any jobs that month, since the number crosses the zero bound and could therefore be negative.

Retirees flock to Latin America to live an upper-class lifestyle on $1,500 a month (Chris M.)

Best known for the Galapagos and providing asylum in its London embassy to WikiLeaks founder Julian Assange, Ecuador is home to 2,850 retirees receiving benefits, according to the U.S. government. But that number doesn’t tell the full picture. The city of Cuenca recently conducted a census that found its municipality alone was home to almost 10,000 foreign retirees, most of them Americans from Texas and Florida.

Dimming Bulb 3: Collapse has Arrived (Time2Help)

The warfare ongoing in these nations has knock on effects for the 1st World Nations still trying to extract energy from some of these places. To keep the oil flowing outward, they have to run very expensive military operations to at least maintain enough order that oil pipelines aren't sabotaged on a daily basis.

What Exiting The Paris Agreement Means For U.S. Utilities

But it actually gets worse. Despite the President's action, a growing reliance on renewable energy sug-gests that a significant percentage of electric utility equipment presently in use, no matter how recent-ly installed and "undepreciated", will be at risk from technological obsolescence. Stated another way, a new technology with zero fuel costs might produce the identical commodity product as the old plants, electricity, but at a lower overall cost--all considerations of externalities and carbon taxes aside for the moment--which would make renewables all the more compelling.

Grand Canyon at risk as Arizona officials ask Trump to end uranium mining ban (jdargis)

The Mohave leaders also plan to dispatch a second letter on Monday asking the federal government to scrap national monument protections for lands of natural wonder “throughout Arizona”, claiming their designation is unconstitutional and prevents economic development of coal, oil and gas deposits. Utah leaders will follow with letters requesting the government shrink national monuments in southern Utah, such as Bears Ears and Grand Escalante, in order to open up a greater area for mineral exploitation, the Guardian has learned.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/2/17

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."

17 Comments

Time2help's picture
Time2help
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Enjoying an early morning cup of covfefe when...

Drop your britches. Gets interesting right around 2:00.

A solidarity setup?

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saxplayer00o1
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Amount of euro zone bonds with sub-zero yields hits 2017 high

Amount of euro zone bonds with sub-zero yields hits 2017 high

Reuters-3 hours ago
... this year after France elected a president seen as relatively market-friendly and the European Central Bank's bond-buying scheme keeps borrowing costs low.

Italy faces borrowing shock when ECB removes support, warns Pimco

Telegraph.co.uk-20 hours ago
ITALY faces a “horror” scenario when the European Central Bank winds down its bond buying programme in a move that risks sparking a surge in the country's ...

Study: Illinois' public pensions are worse off than state claims

Illinois News Network-9 hours ago
... in fact they ran deficits through their pension systems of $167 billion,” Rauh said. ... revenues would have to go to pensions to avoid accumulating further debt.

Household debt bubble hits £198bn and close to bursting

Daily Mail-13 hours ago
The best deal available comes from MBNA, which has just been bought by Lloyds and offers a 42-month interest-free period for balance transfers, where debt is ...

4 Reasons Why Puerto Rico's 'Bankruptcy' Process Matters to US ...

NBCNews.com-1 hour ago
How Puerto Rico grapples with its staggering debt is in the hands of a federal .... close to matching Argentina's historic 2001 default of over $150 billion dollars.

 

sand_puppy's picture
sand_puppy
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Fanning the flames of chaos

The Israeli propaganda outlet, SITE Intelligence Services, has "helped" ISIS by claiming responsibility for the London attacks on behalf of ISIS.

the agency, run by "former" Mossad agent Rita Katz now offers her services to the world by gathering intelligence in a civilian capacity for news and intelligence agencies.

 

SITE is known as the first place that that Muslim atrocity / beheading videos surface, usually 24 hours before dissemination in the "reputable" news outlets where they are widely believed to be real new by the public.

 

it is my understanding that the strategist behind this desire to fan the flame of the Muslim / western "Clash of Civilizations" bringing the military might of the IS / MATO against their enemies on the ME.  Domestically they deploy the weapon of Mass Migration (see Kelly Greenhill) to destroy unique local cultures of Europe and embroil them in the chaos of this clash.  The oligarch hopes to restore order with the imposition of a police state where the domestic SWAT team / armored vehicles and check points are welcomed by the people.

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cmartenson
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Speaking of which...SP

Isn't it amazing that every time anything happens that the powers that be use it as an excuse to diminish everybody's freedoms and consolidate their own power?

Today's outrage du jour comes to us from the UK where Theresa May, who has never skipped an opportunity to "regulate the internet" didn't even wait until the blood had dried to make these spurious assertions:

Theresa May says the internet must now be regulated following London Bridge terror attack

The Prime Minister said terrorists had 'safe spaces' online

New international agreements should be introduced to regulate the internet in the light of the London Bridge terror attack, Theresa May has said. The Prime Minister said introducing new rules for cyberspace would “deprive the extremists of their safe spaces online” and that technology firms were not currently doing enough.

The Prime Minister made the comments outside Downing Street on Sunday morning in the aftermath of the van and knife attack that saw seven people killed and dozens injured.

London attack shows too much tolerance for extremism in UK, May says "We cannot allow this ideology the safe space it needs to breed - yet that is precisely what the internet, and the big companies that provide internet-based services provide,” Ms May said. “We need to work with allies democratic governments to reach international agreements to regulate cyberspace to prevent the spread of extremist and terrorism planning.

Ms May speech is thought to be the first time she has publicly called for international cooperation in bringing forward more red tape to cyberspace, however. The intervention comes after the introduction of the Investigatory Powers Act 2016 – the so-called 'Snooper's Charter' – which expands the powers of spying agencies and the Government over the internet.

What can we glean from this?

  1. "Safe spaces" are now a bad thing...an odd turn of events I suspect for those promoting safe spaces.  
  2. Theresa May does not answer why the most heavily surveilled state on the planet, the UK, would suddenly get any safer with even more surveillance, she just wants it.  Until they can prevent people from going to Tesco and buying a knife, then there's nothing more surveillance could or would have done to prevent this or any future atrocity.
  3. More than just in the UK, Theresa's next move is for international cooperation.  i.e. a coordinated global government crack-down.
  4. The UK already has the Snooper's Charter.  Let's see how that's going, shall we?

Porn is just the first victim of the Government's censorship crusade

But this isn’t much about porn at all – it is about censorship. Although only sexual material is covered in this phase of the Bill, regulators have already muttered about other threats to society. The BBFC already censors far more than pornography. For example, it will cut DVD works that “promote the misuse of drugs” or “actively promote illegal behaviour”.

Under the Snooper’s Charter the government can access out browser history and now under the digital economy bill, they’ll be able to control what we see. First they’ll come for your porn and who knows what they’ll come for next.

They went after porn under the theory that viewing material, even if it depicts acts that are legal between consenting adults, might 'deprave and corrupt.' Of course they did!  ;)

That is, under the Theresa May's of the world ideology, it is the role of the government to be responsible for the individual moral conduct of its citizens.

You know, the same government that gleefully conducted an illegal war of choice against Iraq, was responsible for some of the most horrific colonialization practices of the last century, and which cannot seem to adequately find monies to properly chase down one high-level pedophilia ring after another operating within its own government.

It's "do as we say, not we do."  

V for Vendetta comes to life under Theresa Sutter, er, May.

As a final note, Theresa, morals cannot be legislated (or taught), they must be modeled.  Every astute parent eventually learns this.  Why don't you clean up your own sclerotic, corrupt government and make amends for a brutal history before you decide all your little subjects need more of your specific brand of moral oversight and realignment?

cmartenson's picture
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A Fed Staffer in Action

I came across this video of a PhD Fed economist assuming away the idea of net energy.

https://i.imgur.com/7impx6v.gifv

Enjoy.  :)

 

 

Uncletommy's picture
Uncletommy
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What; me worry?

Of all the things I've lost, I think I miss me mind the most. I try not to sweat the small stuff!

TechGuy's picture
TechGuy
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Re:What; me worry?

I am 99% the tornado photo is fake. The Grass in the back yard is very green and the field beyond is very tan. 

Uncletommy's picture
Uncletommy
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Yoxa's picture
Yoxa
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Characteristic colors
Quote:

 back yard is very green and the field beyond is very tan

On the Canadian prairies, those colors are totally believable at this time of year. What you're seeing in the field beyond would be stubble from last year's crop.

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The Dimming Bulb article

T2H posted above:   Dimming Bulb 3:  Collapse Has Arrived.

The fact is, that for more than half the world population, Collapse is in full swing and well underway.  Two key bellweathers of where collapse is now are the areas of Electricity and Food. 

Most of Northern Africa is in this stage.

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Skittle Sh!tting Unicorns.

Thanks for passing along this link. I did check out the "Olduvai Theory" paper (circa 1996) linked in the article too. A couple of interesting quotes, I thought, were:

Still, the impending Post-Industrial Stone Age is a tragedy because it really isn't inevitable. There's no absolute reason why we couldn't live in material sufficiency on this planet for millions of years. But prudence isn't our forte. "Even our success becomes failure." And, in a way, it's not our fault. Long ago Natural Selection dealt us a bad hand—we're sexually prolific, tribal, short-term and self-centered. And after thousands of years of trying, Culture hasn't changed that. And there is no sign that She will.

Backward to the future. Forward to the past. Almost perfect symmetry.

and

As I read it, the descent into the Olduvai valley will be steep and swift. A scenario of Phase 3, the Post-Industrial Phase, is sketched in Figure 1 (i.e., from point I onward) wherein Industrial Civilization has disintegrated into farming villages, kinship tribes and rogue bands. The surviving population will have "achieved" permanent sustainability—at the subsistence level.

 

sand_puppy's picture
sand_puppy
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Olduvai Theory: Sliding Towards the Post-Industrial Stone Age

I also thought that this article was very stimulating to my neuronal body parts.  Others may enjoy it too.

Quoting Sir Francis Hoyle:

It has often been said that, if the human species fails to make a go of it here on Earth, some other species will take over the running. In the sense of developing high intelligence this is not correct. We have, or soon will have, exhausted the necessary physical prerequisites so far as this planet is concerned. With coal gone, oil gone, high-grade metallic ores gone, no species however competent can make the long climb from primitive conditions to high-level technology. This is a one-shot affair. If we fail, this planetary system fails so far as intelligence is concerned. The same will be true of other planetary systems. On each of them there will be one chance, and one chance only. (Sir Francis Hoyle, Of Men and Galaxies, 1964)

Richard Duncan, Ph. D. continuing his personal story:

Then in 1975 and 1976, conferences took me to Colorado and, by-the-by, to Mesa Verde National Park where the magnificent, long-deserted cliff dwellings of the Anasazi made it clear that all civilizations are ephemeral. But Fred Hoyle wasn't reiterating the tired old-saw of historian-philosophers such as Spencer, Spengler, Sorokin and Toynbee: i.e., the endless rise-and-fall cycles of civilizations. He was talking about something quite different, more profound, more pervasive. Global Industrial Civilization has no cycles at all. It's "a one-shot affair." Exponential growth, exponential decline. That's it.

His view of the brief nature of Industrial Civilization is mapped by the per capital energy usage.

 

The broad sweep of human history can be divided into three phases:

  • The first, or pre-industrial phase was a very long period of equilibrium when economic growth was limited by simple tools and weak machines.
  • The second, or industrial phase was very short period of non-equilibrium that ignited with explosive force when powerful new machines temporarily lifted all limits to growth.
  • The third, or de-industrial phase lies immediately ahead during which time industrial economies will decline toward a new period of equilibrium, limited by the exhaustion of non-renewable resources and continuing deterioration of the natural environment. (Duncan, 1989)

-------------------------

A linked website of Jay Hansen, The Overshoot Loop is similarly very interesting and thought provoking.

He argues that humans are hard-wired to use as much energy as they possibly can to gain power and project their genes into the next generations.  This creates the situation where the human species will plunge forward, full-speed, on a fatal trajectory.

My own addition here is, that this line of thinking he espouses is classic ORANGE Meme (Spiral Dynamics) way of thinking.  Individually it may be possible to grow into another way of being. 

In GREEN, the endless pursuit of personal power / consumption begins to soften as the damage being done to others and the Earth is seen with the "eyes" of compassion.  In the higher levels of YELLOW and TURQUOIS, people do not think this way and would simply never dump oil sands tailings into a river, for example, any more than they would smear their own fecal material on their own skin.  There is a sense that "We are the Earth and the Earth is us."

 

 

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Mots
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Olduvai Theory etc.

This train of thought is unduly pessimistic and narcissistcally American.  The same is true for Johnathan Greer's outlook, of a future world powered by candles, horses, blacksmiths etc.  Nonsense.  Such might be true for the increasingly irrelevant U.S. mainland but is not true  of the world or humanity generally.

The collapsing American culture and economy, with self absorbed hand wringing of those who are aware and see what is happening, is a small thing.  The world has passed the empire  by, in many respects (both in engineering and manufacturing, forget banking: American banking is a phantom and not indicative of a prosperous society, despite the ad nauseum focus on such in this blogsite) and what happens or is thought in America increasingly is irrelevant.  In fact there are entire regions such as island states and cities (Singapore, Taiwan, Japan come to mind) that are homogeneous enough and cohesive enough to not only survive the ongoing collapse of the ballyhooed American hegemony but which are entirely capable of building out and enjoying all the things we wish for a luxurious future, including real medicine (not sick care), energy development (China is #1 in green technology already and will be mostly green within 10-15 years), light manufacturing of semiconductor devices and advanced materials from increasingly less energy, and food (the topsoil in places like Japan has been increasing not decreasing for the last few hundred years and problems such as phosphorus depletion are already fixed, but you will never hear that from the self absorbed American MSM that assumes that the stupid things done in America are  happening everywhere as well).

Meanwhile the biggest problem [POPULATION GROWTH!], and how it is being successfully solved NOW are completely ignored by the same narcisstic American media.  Japan needs to get its population down to below 50 million (Japan was advanced, sustainable and superior culture compared to Europe with 25-30 million people between  1625 and 1875) and is on its way, but because non-exponential growth is bad for bankers, the media is filled with nonsense about how bad this is (for the bankers, not for the people, who are happy to work at jobs into their 70s and 80s).  Same with other advanced countries who are bringing their populations down, and have to fight the Elite and Bankers who are doing their best to keep the game going by importing replicating Africans to keep the economic ponzi scheme alive.

The last few Chinese I talked to are very optimistic about their future.  Last time I checked the Chinese are more representative of humanity, as they are multiple times more numerous than Americans and they engineer and manufacture MOST of the goods that the crybaby Americans use and rely on for their daily life.

 

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thc0655
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What a hoot!!

So you're saying the USA!USA!USA! is no longer the center of the universe?  Perish the thought! laugh

No, really, I believe there will be cosmic justice for us all and "we the people" have it coming to us, good and hard.  I'm not sure what form that will take or on what timetable, but I'm 100% sure we've EARNED it.  I'm equally sure history will look back on us and marvel, "What were they thinking?!"

OTOH, I think we (all cultures) have ALL got "it" coming to the extent that we've each earned it in our own unique ways.  That includes the Chinese and the Japanese.

In Clint Eastwood's greatest film, UNFORGIVEN, Eastwood plays an aging, retired gunslinger who cleaned himself up and became a family man.  After the death of his wife, he sets out to collect a bounty on some bad cowboys because he is desperate for the money since he is failing as a farmer.  He has a young kid working with him who fancies himself a gunslinger but who is hiding the fact that he's never killed anyone.  After killing the bad cowboys, they're waiting on the outskirts of town to collect their bounty and talking about what they've done.  The young kid is totally unnerved by what he's done, but comforts himself with the thought, "Well, at least THEY had it coming."  Clint's character's answer is priceless:

Sometimes I'm thrilled that all the evil we have been doing is going to be punished by reaping the natural consequences for it.  But most of the time I'm profoundly sad that enough of us didn't listen in time to change our course from disaster to prosperity.  This happens in every generation and every culture. Jesus felt the same sadness about the people of his time not listening to him or to the prophets who came before him and therefore facing their inevitable destruction.

 "Jerusalem, Jerusalem, you who stone the prophets and kill those sent to you, how often I have longed to gather your children together, as a hen gathers her chicks under her wings, and you were not willing.  Look: your house is left to you desolate."

The best I can do now is alter the course of my life as wisely as possible, survive the coming storm, and be around to help rebuild something better.  That would be a privilege and a undeserved gift.  I know I don't deserve to survive and am not worthy of being one of the re-builders.

 

 

thatchmo's picture
thatchmo
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take heart

I don't know thc, but being worthy may not depend on the actions of your past, but those of your future.  "Deserve"?  I long ago had a friend who banished the word from her vocabulary.  She was a good person....Aloha, Steve.

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optimistic chinese

Sure, I get the same impression of them as well.

I'll be curious how they feel once they deal with that massive debt overhang.  Property values are so completely unhinged from reality there they are bound to blow up spectacularly, in a way quite similar to what we saw in Tokyo in 1989.

I'm particularly interested to see how the Chinese government deals with the situation.  The choices are: massively inflate, forgive the debt, let it all blow up in a deflationary storm, or extend & pretend forever.  Japanese took option #4.  It did have an unintended consequence of a fantastic population control experiment; turns out people have a lot fewer babies during a 30-year deflationary move.

The US still has plenty of things going for it; if our elites & corporations stopped constantly harvesting us, we'd do just fine.  As it is, the longer the operation continues in all its forms, the bigger the boom will be once it finally lets go.

It is possible that this mini-civil-war we are having will encourage people to get off their asses and experiment locally - on both sides.  The "single payer" plan being discussed in California is an example of a rebellion against the sickcare/insurance cartel.

I'm guessing that it is much harder to buy off politicians in all 50 state capitols than it is to execute the one-stop-shopping spree that is Washington DC.

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David Allan
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Downwards spiral

Sandpuppy I like the way you've linked in spiral dynamics. One of the (endless number of) sad things about our collapse - however it plays out - will likely be a progressive lowering of the 'centre of gravity' of individual and cultural evolution. ie a regression back down the spiral.

The leap forward to a global technological society has provided the opportunities for a tremendously rapid development in self and culture. But as life becomes more local and more survival oriented and as our generation dies out it seems to me inevitable that culture and world-views will change to match the circumstances.

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