Daily Digest

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Daily Digest 6/19 - Rigged Jobs, The Growing Revolution

Monday, June 19, 2017, 10:06 AM

Economy

Spain’s Wounds Run Deep as Economy Retraces Crisis Losses (cmartenson)

To support its recovery, while being part of the euro area, Spain had to undergo an internal devaluation through lower salaries coupled with more flexible labor laws. As a result, wages in relation to GDP have fallen to the lowest since 1995. That means middle-income families depending on their paycheck have come under strain, while asset-rich households have held firm.

Rigged (cmartenson)

A yearlong investigation by the USA TODAY Network found that port trucking companies in southern California have spent the past decade forcing drivers to finance their own trucks by taking on debt they could not afford. Companies then used that debt as leverage to extract forced labor and trap drivers in jobs that left them destitute.

If a driver quit, the company seized his truck and kept everything he had paid towards owning it.

BofA: "Has The Fed Become Concerned About The Surge In Stocks?" (jdargis)

Woo adds that whether the Fed's hawkiness was indeed intended as a warning shot to tech stocks or not, momentum behind the recent tech rally was already fading even before the FOMC meeting. The fact that large cap active funds have never been more overweight the tech sector in the history of our data and the possibility that there could be a bigger correction ahead make us think that the balance of risks for both US rates and USD/JPY remains on the downside (notwithstanding the Fed's plan to hike one more time and to start shrinking its balance sheet this year).

Who Holds the DEA Accountable When Its Missions Cost Lives? (jdargis)

Tragically, that outcome has become all too familiar in Mexico, where impunity is a national scourge. Homegrown corruption, greed and fear have bred an epidemic of virtually unchallenged violence. What makes this case different is that the DEA lit the fuse that triggered the slaughter, then stood mutely by — as if it had played no role. DEA officials knew almost immediately that innocent lives had been lost as a result of sharing the intelligence with Mexico. The agency’s response then — and in the years since — nothing.

Using Texts as Lures, Government Spyware Targets Mexican Activists and Their Families (jdargis)

“We are the new enemies of the state,” said Juan E. Pardinas, the general director of the Mexican Institute for Competitiveness, who has pushed anti-corruption legislation. His iPhone, along with his wife’s, was targeted by the software, according to an independent analysis. “Ours is a society where democracy has been eroded,” he said.

Are Russia And The Saudis Planning A Natural Gas Cartel? (Michael K.)

Certain analysts think that Aramco is taking the same road as Shell, BP and other oil majors, have taken, diversifying away from oil and into gas. The ‘Golden Age of Gas’, as reported by the IEA has not yet become reality. Riyadh now seems interested in becoming a convert of the gas era, but reality is not as simple. There is more between the lines than currently is being discussed in the media.

The Growing Revolution (Tiffany D.)

But if farming is going to keep up with the demands of the world, it needs to adopt smart farming technology. In fact, the United Nations Food and Agriculture Organization reports that global production of food, feed and fiber must increase by 70% by 2050 to meet the demands of a growing population.

Atlantic faces the rare prospect of two active tropical storms in June (jdargis)

From a climatic standpoint, the development of two more tropical storms in June this year would be intriguing. During a normal year, the Atlantic basin—which includes the Atlantic Ocean, Caribbean Sea and Gulf of Mexico—typically doesn't produce its third named storm until mid-August.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/16/17

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."

8 Comments

saxplayer00o1's picture
saxplayer00o1
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Comptroller: Illinois' finances are in a 'massive crisis mode'

Comptroller: Illinois' finances are in a 'massive crisis mode'

SaukValley.com - ‎8 hours ago‎
It's a new low, even for a state that's seen its financial situation grow increasingly desperate amid a standoff between the Democrat-led Legislature and Republican Gov. Bruce Rauner. Illinois already has $15 billion in overdue bills and the lowest ...

Illinois owes more than $1 billion to schools

SaukValley.com-8 hours ago
But 2 years of budget-free spending has created a $15 billion pile of unpaid bills, ... of state laws that require payment on debt and government worker pensions, ...

With Venezuela in chaos, asylum petitions have tripled. Most seek ...

Miami Herald-3 hours ago
The number of Venezuelans seeking asylum tripled from 2015 to 2016, as the once-wealthy nation continues to be trapped in a punishing economic, social and ...

Venezuela soldiers guard Chavez symbols in seething heartland

Reuters-8 hours ago
A woman walks next to a mural depicting Venezuela's late President Hugo Chavez in Barinas, Venezuela June 14, 2017. Picture taken June 14, 2017.

Twitter blocks a slew of Venezuela government accounts

Engadget - ‎7 hours ago‎
Venezuela has been accused of censoring Twitter as part of its bid to silence dissent, but it's not so happy now that the shoe is on the other foot. The country's leadership says that Twitter has suspended 180 accounts linked to the government ...

Brazil Suspends Sales of Tear Gas to Venezuela

Wall Street Journal (subscription)-21 hours ago
MIAMI—The Brazilian government said it has suspended tear gas sales to Venezuela in response to its neighbor's deadly repression of protests. The decision ...

Demonstrators take to the streets as Venezuela battles triple-digit ...

Herald Scotland-15 hours ago
This is a broken nation of 30 million people with an economy shrunk by a quarter since 2013, most people barely surviving food and medicine shortages, ...

Argentina to sell 100-year bond in landmark offering

Financial Times-25 minutes ago
Argentina has defaulted on sovereign debt eight times since its 1816 independence, most recently the 2001 default on $100bn of sovereign bonds, which at the ...

 

cmartenson's picture
cmartenson
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LOL

This is LOL funny.

Argentina to sell 100-year bond in landmark offering

Financial Times-25 minutes ago
Argentina has defaulted on sovereign debt eight times since its 1816 independence, most recently the 2001 default on $100bn of sovereign bonds, which at the ...
 
That they will undoubtedly be oversubscribed will be funnier still.  
 
The craziness that the central banks have unleashed is simply extreme.  How does one even maintain perspective during such times?  Very difficult.
sand_puppy's picture
sand_puppy
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Ehrlicman Interview: War on Drugs to target Blacks & Hippies

I believe that this is one of the most noteworthy things to come out recently.  In an interview published 2 days ago in Harpers, John Ehrlichman, advisor to Richard Nixon, explains how the War on Drugs was a scam designed to disrupt the lives of Nixon's two opposition groups:  Blacks and the anti-war left (hippies).  When asked by the interviewer about Nixon's harsh War on Drugs policy he answered:

"You want to know what this was really all about?  The Nixon campaign in 1968, and the Nixon White House after that, had two enemies: the antiwar left and black people. You understand what I’m saying,” Ehrlichman continued.

“We knew we couldn’t make it illegal to be either against the war or black, but by getting the public to associate the hippies with marijuana and blacks with heroin, and then criminalizing both heavily, we could disrupt those communities. We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on the evening news. Did we know we were lying about the drugs? Of course we did."

This is an example of the dirty-tricks and deception used in politics.  The stated reason for an act can be absolutely unrelated to the real reason.

cmartenson's picture
cmartenson
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Posts: 5406
Indeed!

I'll just leave this here without comment.

Rats in a cage.

When you are being played, for political gain, you are no different from two rats in a cage, being shocked by researchers, who hope to gather something useful from you.

newsbuoy's picture
newsbuoy
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Rare Double Storms in Atlantic, New Normal?

Coastal Cities Unprepared for Major Floods As Sea Levels Rise

Michael Oppenheimer, professor of Geosciences and International Affairs at Princeton University.

cmartenson's picture
cmartenson
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As predicted!

LOL!!

This is tragically funny.

So much money chasing too few assets has created this monstrosity of outcome.

ARG for 100 years?  Dude...there's been probably 5 defaults in the last 100 years alone.    This means that the """investors""" are really just gamblers sure that they can offload to some other greater fool before the next crisis.

It's just a game of financial musical chairs.

TechGuy's picture
TechGuy
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Posts: 351
100 Year Argentina Bonds

Not so funny when you consider that most of the money going into these bonds is workers pensions. We saw this happen about 9 years ago when Pension money was invested in US Subprime real estate. The Fund managers collected "Huuge" bonuses based upon paper profits, but left the pensioners SoL when they bonds became worthless. 

Argentina 100 year bonds will collapse soon after the next global recession happen (probably starting later this year or as soon as August).

 

cmartenson's picture
cmartenson
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Posts: 5406
ARG 100 year bonds
TechGuy wrote:

Not so funny when you consider that most of the money going into these bonds is workers pensions. We saw this happen about 9 years ago when Pension money was invested in US Subprime real estate. The Fund managers collected "Huuge" bonuses based upon paper profits, but left the pensioners SoL when they bonds became worthless. 

Argentina 100 year bonds will collapse soon after the next global recession happen (probably starting later this year or as soon as August).

I agree....somebody is congratulating themselves for being smart enough to score some 8.25% paper in this yield-less world.

But let's run the math.

Assuming no capital loss due to the bonds tanking, and no dividend reinvestment, the time to return 100% of invested principal is (100/8.25) = 12.12 years.

So It will take 13.12 years to get your first actual, bookable, 8.25% return.

Let's see here...(2017+13) = 2030

That means it will be the year 2030 before your "investment" has actually returned anything you can actually report honestly to your fiduciary responsibilities.  

How many people here think something, possibly, maybe could go off the rails for this "investment" somewhere between here and 2030?  Anybody?  Let's see a show of hands.  :)

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