Daily Digest

Image by reynermedia, Flickr Creative Commons

Daily Digest 8/3 - A State Of Emergency, Should We Worry About Excess Reserves?

Thursday, August 3, 2017, 8:35 AM


Should We Worry About Excess Reserves? (Alex)

Banks in the United States currently hold $2.4 trillion in excess reserves: deposits by banks at the Federal Reserve over and above what they are legally required to hold to back their checkable deposits (and a small amount of other types of bank accounts). Before the 2008 financial crisis, this amount was essentially zero. To put this number in perspective, the monetary base of the United States (the sum of all currency outside the Federal Reserve System plus both required and excess reserve deposits by banks at the Fed) is $4 trillion. So, 60 percent of the entire monetary base is now in the form of excess reserves compared to roughly 0 percent precrisis.

Sabotaging Russia-US Relations for Good (Time2Help)

The Senate has overwhelmingly voted to impose new sanctions, the primary purpose of which is to deny the U.S. President the ability to end sanctions on Russia without Moscow first demonstrating good will to resolve points of friction between the two countries. The areas of disagreement include the situation in Ukraine and Syria, nuclear weapons, an end to the alleged hacking of U.S. elections, and the supposed intention of Moscow to invade the Baltic states. Obfuscation, lies and misinformation seem to be the driving force behind the Senate vote. The bill will end up on Trump's desk, and at that point he will have to decide whether to sign it or not. If he signs it, it will obviously [sic] limit his autonomy.

We Are Already in a State of Emergency (Matt H.)

Sheppele explains that the slow creep starts when the Executive branch slowly centralizes power. Gradually, the courts are marginalized. But this is often not abrupt, and the main actor isn’t always clear: over time, legislatures and courts both take themselves out of the loop and choose to opt out of the most political decisions, rather than being pushed by the Executive.

Consider that for sixteen years after 9/11, the Authorization for the Use of Military Force against Terrorists (AUMF) passed in the immediate aftermath of the attacks continued to be used to send troops and drone attacks to the Philippines, Georgia, Yemen, Kenya, Iraq, Somalia, and many other countries.

The College Debt Bubble (And Six Rules For 529 Plans) (Phil D.)

In a slew of misguided efforts first to offer GI benefits, beat the Russians to the moon, and then make college “affordable”, well-intentioned, vote-seeking bureaucrats determined the government should use taxpayer funds to underwrite student loans to anyone with a pulse, and to guarantee them in case of default, even for private lenders. To limit potential losses, students, arguably our most vulnerable and naïve demographic, were precluded from basic bankruptcy protection, thereby also removing a necessary cog in capitalism that ensures prudent evaluation of risk by lenders.

You're A Biased Investor (Tiffany D.)

The heavy allocation to U.S. stocks made sense up until recently. In 2009, the S&P 500 was priced on the cheap, relative to the corporate profits produced by its component companies. The Federal Reserve was all in on engineering a rebound in the economy.

Today, though, with the S&P 500 at new all-time highs, purchasing the same index of stocks is like buying the most expensive house on the nicest street in town. It’ll make you feel good, but you’re paying a heavy premium for the experience.

In A Better World (GE Christenson)

In summary, the global financial system, based on “dishonest” fiat currencies is dangerous and unstable. Potential wars with North Korea, Russia and China will aggravate an already dangerous economic structure. Existing wars in Syria, Iraq, Afghanistan and elsewhere have been costly in terms of soldier deaths, excessive expenses, and unpayable debt. Central banks and governments want more debt, more currency in circulation, and higher prices, so … expect more wars.

Cryptocurrency 101 (DennisC)

For now, let’s start with a quick history lesson about bitcoin. Bitcoin was officially unveiled to the public in a white paper published October 31st, 2008. The white paper is actually extremely readable, very short (just 8 pages), and incredibly elegantly written. If you want to understand why bitcoin is so compelling straight from the horse’s mouth, you must read this paper. It will explain everything better than I or anyone else likely ever could.

The solution to the global crisis of capitalism is simplicity itself (Waterdog14)

These commitments to ever-increasing material wealth and an economy driven by profit, market forces, competition and growth are the basic causes of accelerating global problems, including rising inequality resource wars, the poverty of billions and loss of social cohesion.

There is a powerful case that technical advance, including adoption of renewable energy, cannot solve these problems alone. It is possible that we will see catastrophic collapse in rich societies within a decade.

Oil Prices Slip As OPEC Oil Exports Creep Higher (Michael K.)

OPEC agreed to cut overall supply by 1.2 million barrels last November, but Libya and Nigeria have proved a challenge as they were exempt because of militant activity that crippled their oil industries. Now this activity has largely subsided, and both have been pumping more. Nigeria promised to stop ramping up production once it hit 1.8 million bpd, but Libya has not made any such promises.

EXCLUSIVE: Al Gore’s Home Devours 34 Times More Electricity Than Average U.S. Household (thc0655)

Just because Gore donates to the Green Power Switch program doesn’t mean he receives green energy at his home. Gore gets the same electricity every other Nashville resident receives – 87 percent of which comes from nuclear, coal and natural gas power plants. About 10 percent of Gore’s electricity comes from the TVA’s environmentally devastating dams. Only a puny 3 percent comes from renewable sources such as solar and wind.

Gold & Silver

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

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."


saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4260
5% Is the New 8% for Pension Funds

5% Is the New 8% for Pension Funds

Bloomberg-18 hours ago
For years, many pension funds assumed they would earn an average 8 ... to pensions in 2018 to bridge the gap between their unfunded liabilities and assets.

Even in a booming economy, LA City Hall faces daunting budget ...

Los Angeles Times-3 hours ago

The city continues to face a “structural deficit,” with projections showing ... could see a nearly 20% jump in pension and retiree healthcare costs by 2019. A report ..

Texas lawmakers remain at odds over retired teacher health care costs

Chron.com-12 hours ago
AUSTIN -- A bill that would stabilize health care costs for tens of thousands of Texas' retired teachers for the next two years sailed through the House on final ...

UPDATE 1-US governors urge Trump to make insurance payments

Reuters-16 hours ago
"A first critical step ... is to fully fund CSRs (cost-sharing reduction payments) for ... Molina Healthcare Inc said on Wednesday it would stop selling Obamacare ...


Cornelius999's picture
Status: Gold Member (Offline)
Joined: Oct 17 2008
Posts: 381
Philosophy of Life

From the intro page of " One Eye in the Land of the Blind - the Rediscovery of Aether" based on life of Viktor Schauberger:

Two planets meet in space

says one to the other

" How are you"?

Says the other

"Not so well, I've contracted Homo Sapiens"

Says the first:

" Don't Worry, it will soon pass of its own ".


" Little man 

Take your destiny into your own hands

and build your life on rock

Tell your fellow workers all over the world

That you're no longer willing to work for death

but only for life! "


Listen Little Man, by Wilhelm Reich

Time2help's picture
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2902
Bringing Back the Draft

Bringing back the draft (Navy Times)


Restarting the military draft after more than four decades of an ­all-volunteer force would be complicated. But it could be done. One plan calls for young conscripts to have a choice: two years on active duty or six years in the reserves. Either way, they’d first have to ­undergo basic training and job training. If draftees want to go to college first, they must participate in a Reserve Officer Training Corps program and then serve. If they fail or quit ROTC, they must then enlist. Whichever option they choose, their obligation is fulfilled with a single combat deployment.

Those are some of the details ­proposed by retired Army Maj. Gen. Dennis Laich, one of the nation’s most aggressive advocates of abandoning the all-volunteer force in favor of a return to the draft. He and others believe that current wars have stretched the military to its breaking point. More than a decade’s worth of bonuses and expanding benefits has brought personnel funding to its limits. Civilians are more disconnected from the military than at any time in history. The retired two-star and his group, the All Volunteer Force Forum is asking: Is it time to end the more than four-decade experiment of the all-volunteer armed forces and reinstate conscription?


Those who’ve spoken on the topic are split on whether even a national crisis would necessitate a draft. Feaver is skeptical that the ­American military might find itself in such a ­predicament as to need large numbers of troops from a draft. “The problem with the national security scenario is the U.S. military has the wherewithal to do most of the missions needed,” Feaver said. He brushed aside some of the peer-to-peer type fighting as resulting in quick sea battles or ones that would involve coalitions of nations against a larger foe. “It’s hard to see the national security problem for which the draft is the ­national security solution,” Feaver said.

Supporters such as retired Army Col. Larry Wilkerson, former chief of staff to Secretary of State Colin Powell, told the audience at William and Mary that he could quickly envision a large-scale conflict happening tomorrow. “I can paint you a scenario for a big war,” Wilkerson said. He then described war game simulations in which a U.S. Navy aircraft carrier sails through the Taiwan Strait, triggering a fusillade of Chinese missiles, sinking the vessel. Wilkerson then asked, what options does an American president have when there are 5,000 sailors at the bottom of the South China Sea? Either back off and negotiate, he said. Or go to war.

Or better yet, go to hell.


Cornelius999's picture
Status: Gold Member (Offline)
Joined: Oct 17 2008
Posts: 381
BTW Vicktor Schauberger can

BTW Vicktor Schauberger can be seen on Youtube - enjoy.  I don't know if wikipedia is to be trusted.  

PS. It's megre but seems ok.

Cornelius999's picture
Status: Gold Member (Offline)
Joined: Oct 17 2008
Posts: 381
As VS says: " When you kill a

As VS says: " When you kill a forest you kill a people ".  

We're too good at taking life and turning it into death shrouded in banknotes. 

At the very least we need to help life along more. And we can dream of luxouriant flourishing down the line.

But it's late in this particular day and too many of us are having nightmares. Try to find that peace within.

Bankers Slave's picture
Bankers Slave
Status: Platinum Member (Offline)
Joined: Jul 26 2012
Posts: 523
USA Israel and Russia.

Having watched this video in its entirety, I have to say that it raises some alarming points and details that I have not come across on any other internet site . Knowing the political allegiance between the US and Israel, I would have to say that the information researched, has more than a passing semblance of credibility!


thc0655's picture
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1744
Minneapolis police don't kill everyone they meet


In a terrifying incident caught on video, Minneapolis police collaborated with bystanders to pull two people out of a burning car.

A tow truck driver captured the rescue on a cell phone camera, and on Tuesday, Minneapolis police released dash cam video of the incident, reports KARE11.

Cornelius999's picture
Status: Gold Member (Offline)
Joined: Oct 17 2008
Posts: 381
On Amazon one of the better

On Amazon one of the better biographies seems to be: 

          " Hidden Nature: The Startling Discoveries of Viktor Schauberger" by Alick Bartholomew

Why this is exciting me is that VS may be providing further evidence that our current science may have taken a wrong turning leading to the current wasteland.  As well as possible parallell worlds there may be parallell sciences.

saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4260
People have stopped saving for a rainy day and that's just when

People have stopped saving for a rainy day and that's just when an ...

CNBC-21 hours ago
"This was last seen in 2007, just before the bursting debt bubble blew the global economy and financial system to smithereens," says Albert Edwards of Societe ...

Amid affordability worries, mortgage industry moves to ease home ...

Los Angeles Times-4 hours ago

During the bubble, borrowers could often put down nothing at all by financing ... After the housing crisis, Fannie Mae established a debt-to-income cap of 45%,

Euro Credit Returns Could Be Wiped Out in Just a Few Days

Bloomberg-18 hours ago
The voracious appetite for risk in European debt markets is even greater than ... risky bets to levels not seen since the height of the credit bubble a decade ago.

Nothing cold about sub-zero rates, IMF researchers find

Reuters-6 hours ago
LONDON (Reuters) - Negative interest rates imposed by central banks have generally worked as a tool to boost inflation, pulling down yields and sometimes ...

Multiemployer Pension Insurance To Hit $80 Billion Deficit by 2026 – PBGC

Wall Street Journal 22h ago

Corporate Employers Flee Pensions With Gap Topping $375 Billion

Bloomberg-5 hours ago
Assets in U.S. pension plans go from $186 billion to more than $2 trillion. ... to boost shareholder returns, sometimes at the expense of pension obligations.


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments