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Daily Digest 8/7 - Tenants Under Seige, A Tale Of Two Countries

Monday, August 7, 2017, 10:56 AM

Economy

Tenants Under Siege: Inside New York City’s Housing Crisis (jdargis)

New York is the only city in the United States to have taken on the legal obligation of providing a bed for anybody who asks for one and has nowhere else to sleep. This came about after advocates for the homeless argued, in a series of lawsuits in the 1970s, that shelter was a fundamental right, not just a social service. To establish this they pointed to an article in the New York State Constitution that implies public responsibility for “the aid, care and support of the needy.” The legal battle culminated in an enforceable consent decree to shelter the homeless—the Callahan decree—that Mayor Ed Koch’s administration voluntarily signed in 1981. Three years later Koch said of the signing, “We made a mistake, and I am the first one to say it.” No one at the time imagined the future extent of homelessness and the enormous municipal effort that would be required to deal with it.

Struggling Americans Once Sought Greener Pastures, and Now They're Stuck (jdargis)

When opportunity dwindles, a natural response—the traditional American instinct—is to strike out for greener pastures. Migrations of the young, ambitious and able-bodied prompted the Dust Bowl exodus to California in the 1930s and the reverse migration of blacks from Northern cities to the South starting in the 1980s.

A Tale Of Two Countries (Or How The Fed Enabled Corporate Kingpins To Scalp Billions) (Don R.)

The latter was founded in 1975 by one Richard Blum of San Francisco. He is a classic crony capitalist who parlayed his contacts in the world of California and national democratic politics — ranging from Jimmy Carter to his wife, Senator Diane Feinstein, into billions of funding from political controlled institutions.

Thus, upwards of $1 billion in capital was supplied to Blum’s fund by the California Public Employees’ Retirement System, the California State Teachers’ Retirement System and the Los Angeles County Employee Retirement System, among others. That Blum served as a long-time regent of the giant University of California System is surely not coincidental.

How to Catch a 147% Gain in 7 Days (Tiffany D.)

The system, designed by analyst Chad Shoop, spent months evaluating 10 years’ worth of earnings reports and stock-price data on every stock in the S&P 500 and Nasdaq 100. Eventually, it had the data necessary to forecast significant moves in the wake of earnings reports.

So while many investors lamented over missing a 66% rise in Nvidia over about seven months, this strategy gave users a chance at a 147% gain in a week.

There’s a debate raging in science about what should count as “significant” (jdargis)

In a paper, which is due to appear in Nature Human Behavior, behavioral economist Daniel J. Benjamin and his 71 co-authors say that a 5-percent chance is too high, and they propose lowering the threshold to 0.5 percent. Values between 0.5 percent and 5 percent could be labeled as “suggestive.” There’s a litany of problems affecting science, but the paper's authors argue that even if everyone were doing flawless science in a flawless science publication system, the statistical threshold would still be a problem.

Miranda Devine: Perth electrical engineer’s discovery will change climate change debate (lambertad)

His discovery explains why none of the climate models used by the IPCC reflect the evidence of recorded temperatures. The models have failed to predict the pause in global warming which has been going on for 18 years and counting.

“The model architecture was wrong,” he says. “Carbon dioxide causes only minor warming. The climate is largely driven by factors outside our control.”

NAFTA’s ‘Broken Promises’: These Farmers Say They Got The Raw End Of Trade Deal (jdargis)

When a cow in the U.S. tested positive for mad cow disease in 2003, Japan, China, South Korea and Mexico closed their borders to American beef. But this galled Stockton because the animal originally came from Canada — as a NAFTA import. Congress then tried to bolster the nation’s small ranchers by passing the Country-of-Origin Law (COOL), which required disclosing where meat came from, but was forced to repeal it in 2015 after the World Trade Organization deemed it a trade barrier.

DA wants agriculture subjects in elementary, high school (jdargis)

"So I am now directing [Undersecretary] Fred Serrano to work on this, because this is under policy and planning. You have to reach out to your counterpart in the DepEd and start working on the proposal to include agriculture subjects in the elementary and high school levels of the Philippine education system," he said in a mix of English and Filipino.

As far as the K to 12 curriculum is concerned, at least senior high school's technical-vocational-livelihood track already has specializations on agri-fishery.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/4/17

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."

4 Comments

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1538
JHK: Now, Just Wait A Little While

Just Wait a Little While 

The trouble, of course, is that even after the Deep State (a.k.a. “The Swamp”) succeeds in quicksanding President Trump, America will be left with itself — adrift among the cypress stumps, drained of purpose, spirit, hope, credibility, and, worst of all, a collective grasp on reality, lost in the fog of collapse.

The United States is comprehensively bankrupt. The government is broke and the citizenry is trapped under inescapable debt burdens. We are never again going to generate the kinds and volumes of “growth” associated with techno-industrial expansion. That growth came out of energy flows, mainly fossil fuels, that paid for themselves and furnished a surplus for doing other useful things. It’s over. Shale oil, for instance, doesn’t pay for itself and the companies engaged in it will eventually run out of accounting hocus-pocus for pretending that it does, and they will go out of business.

The self-evident absence of growth means the end of borrowing money at all levels. When you can’t pay back old loans, it’s unlikely that you will be able to arrange new loans. The nation could pretend to be able to borrow more, since it can supposedly “create” money (loan it into existence, print it, add keystrokes to computer records), but eventually those tricks fail, too. Either the “non-performing” loans (loans not being paid off) cause money to disappear, or the authorities “create” so much new money from thin air (money not associated with real things of value like land, food, manufactured goods) that the “money” loses its mojo as a medium of exchange (for real things), as a store of value (over time), and as a reliable index of pricing — which is to say all the functions of money. ...

In other words, there are two ways of going broke in this situation: money can become scarce as it disappears so that few people have any; or everybody can have plenty of money that has no value and no credibility. I mention these monetary matters because the system of finance is the unifying link between all the systems we depend on for modern life, and none of them can run without it. So that’s where the real trouble is apt to start. That’s why I write about markets and banks on this blog.

The authorities in this nation, including government, business, and academia, routinely lie about our national financial operations ….

The underlying issue is the scale of human activity in our time. It has exceeded its limits and we have to tune back a lot of what we do. Anything organized at the giant scale is headed for failure, so it comes down to a choice between outright collapse or severe re-scaling, which you might think of as managed contraction….

Start by choosing a place to live that has some prospect of remaining civilized. This probably doesn’t include our big cities. But there are plenty of small cities and small towns out in America that are scaled for the resource realities of the future, waiting to be re-inhabited and reactivated. A lot of these lie along the country’s inland waterways — the Ohio, Mississippi, Missouri river system, the Great Lakes, the Hudson and St. Lawrence corridors — and they also exist in regions of the country were food can be grown.

You’ll have to shift your energies into a trade or vocation that makes you useful to other people. This probably precludes jobs like developing phone apps, day-trading, and teaching gender studies. Think: carpentry, blacksmithing, basic medicine, mule-breeding, simplified small retail, and especially farming, along with the value-added activities entailed in farm production. The entire digital economy is going to fade away like a drug-induced hallucination, so beware the current narcissistic blandishments of computer technology. Keep in mind that being in this world actually entitles you to nothing. One way or another, you’ll have to earn everything worth having, including self-respect and your next meal.

Now, just wait a little while.

Grover's picture
Grover
Status: Platinum Member (Offline)
Joined: Feb 16 2011
Posts: 726
Location, Location, Location
sand_puppy wrote:

Start by choosing a place to live that has some prospect of remaining civilized. This probably doesn’t include our big cities. But there are plenty of small cities and small towns out in America that are scaled for the resource realities of the future, waiting to be re-inhabited and reactivated. A lot of these lie along the country’s inland waterways — the Ohio, Mississippi, Missouri river system, the Great Lakes, the Hudson and St. Lawrence corridors — and they also exist in regions of the country were food can be grown.

You’ll have to shift your energies into a trade or vocation that makes you useful to other people. This probably precludes jobs like developing phone apps, day-trading, and teaching gender studies. Think: carpentry, blacksmithing, basic medicine, mule-breeding, simplified small retail, and especially farming, along with the value-added activities entailed in farm production. The entire digital economy is going to fade away like a drug-induced hallucination, so beware the current narcissistic blandishments of computer technology. Keep in mind that being in this world actually entitles you to nothing. One way or another, you’ll have to earn everything worth having, including self-respect and your next meal.

I couldn't agree more with JHK about this approach. The world will get incredibly big again without the economic stability that allows us to transport goods from production sites to the consumer. To me, a community that is too big to get necessities (food, water, etc.) to its populace without resorting to modern transportation is simply too big. If a community is small enough to transport farmed goods to everyone in the community, the community will bind together for the common good. Where there isn't enough for everyone, there will be conflict and violence until the population is at a sustainable level.

It is more than just "location, location, location." Of course, location will give you a tailwind or a significant headwind. Look at the skills you have that will be needed in that community. Enhance your knowledge about the basics while time is cheap. When hard choices have to be made about who survives, don't you want to be perceived to be worth more than you cost?

Grover

Cornelius999's picture
Cornelius999
Status: Gold Member (Offline)
Joined: Oct 17 2008
Posts: 323
Another book recommendation:

Another book recommendation: " The Montauk Project - Experiments in Time ". by Preston B Nichols ~ 150 pgs. Radar experiments on a disappearing battleship updated into the future and likely true INMO. Mindblowing. Mustread.

PS Am also reading the Viktor Schauberger book which is very good and quite PP ish.

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1369
Repricing

All inputs need to be repriced but the FED is preventing that from happening.  Repricing means massive deflation.  Borrowers and banks will be hit.   Then new nuke plants can be affordably be built and main street can thrive again.   The amount of waste in our inflated economy is vast.   Most regulations are in place to favor big crony companies who are extremely inefficient.  

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