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Daily Digest 9/14 - Bitcoin Crashes After Chinese Exchange Says It Will Halt Trading, Pentagon is still preparing for global warming

Thursday, September 14, 2017, 1:56 PM

Economy

California's housing crisis — it's even worse than you think (Adam)

Half the state’s households struggle to afford the roof over their heads. Homeownership—once a staple of the California dream—is at its lowest rate since World War II. Nearly 70 percent of poor Californians see the majority of their paychecks go immediately to escalating rents.

The $10 Trillion Resource North Korea Can't Tap (michaelk)

North Korea may not have proved petroleum reserves, but it’s estimated that the secluded belligerent nation sits on reserves of more than 200 minerals—including rare earth minerals—worth an estimated up to US$10 trillion.

Of course, there are no official reports on how much North Korea’s mineral wealth really is, but according to rough estimates from earlier this decade, Pyongyang’s deposits of coal, iron ore, zinc, copper, graphite, gold, silver, magnesite, molybdenite, and many others, are worth between US$6 trillion and US$10 trillion, as per South Korean projections reported by Quartz.

Bitcoin Crashes After Chinese Exchange Says It Will Halt Trading (jasonw)

Bitcoin fell for a fifth day, the longest losing streak in more than a year, after one of China’s largest online exchanges said it would stop handling trades by the end of the month amid a government crackdown on cryptocurrencies.

BTC China will immediately stop accepting new account registrations on its BTCChina Exchange, Chief Executive Bobby Lee said Thursday in a tweet. The decision was made after “carefully considering” the Sept. 4 announcement by Chinese regulators that outlawed initial coin offerings, he said.

Investment Advice for My Children & Grandchildren (amerk)

In my view, a hallmark of successful investors is that they understand the market they are in. For the very young entrepreneur, it might be that lemonade stand. When I was in college, I bought a washing machine that I rented out to my housemates in off campus housing (great return on investment!). In the stock market, this might be as simple as buying shares in the Coca-Cola Company because they think their drinks are a good cash cow (this isn’t investment advice). But what I have a problem with is to invest in something simply because “everyone else” says it’s a good investment, even if it’s something as “obvious” as tech stocks in the late nineties or real estate in 2005.

US Threatens To Cut Off China From SWIFT If It Violates North Korea Sanctions (pinecarr)

In an unexpectedly strong diplomatic escalation, one day after China agreed to vote alongside the US (and Russia) during Monday's United National Security Council vote in passing the watered down North Korea sanctions, the US warned that if China were to violate or fail to comply with the newly imposed sanctions against Kim's regime, it could cut off Beijing’s access to both the US financial system as well as the "international dollar system."

Energy

Hurricane Irma’s Wrath Weighs On Natural Gas (michealk)

For example, about two-thirds of Florida’s electricity is generated from natural gas, and the outages could cause a dip in natural gas consumption. Just like how millions of people not driving in their cars after the hurricane could lead to a temporary decline in gasoline consumption, the millions of people without power for a period of time could cause some natural gas supplies to build up.

Environment

Pentagon is still preparing for global warming even though Trump said to stop (edelinski)

The Pentagon has continued to take steps to defend its military bases against extreme weather despite direction from President Donald Trump to stop preparing for climate change.

In March, President Donald Trump rescinded all climate-related federal agency actions directed by President Barack Obama. The Obama-era initiatives that were killed included one that directed the Pentagon to plan for a future where storms, like this week’s Hurricane Irma, are a frequent factor in the Pentagon’s operations.

Four underappreciated ways that climate change could make hurricanes even worse (jasonw)

The public debate over hurricanes and global warming generally gets confined to a few issues: Will hurricanes be increasingly intense, like Irma was? Will they rain more, like Harvey did? Will they drive worse inland storm surges because of sea-level rise? Will they be more or less numerous?

That’s understandable: These questions have been more heavily studied — and in some cases, especially when it comes to sea-level rise (which is clearly happening), are more easily answered.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/13/17

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."

3 Comments

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1928
Path of Missile Over the S. Korean Stock Market

from ZH

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4167
Down $20 Billion, Boeing Stuffs Pension Fund With Its Own Shares

UPDATE 1-Canada's household debt-to-income ratio hits record in Q2

Reuters 1h ago

Down $20 Billion, Boeing Stuffs Pension Fund With Its Own Shares

Bloomberg-3 hours ago
Like so many companies in America, Boeing Co. has largely neglected the gaping deficit in its employee pension as it doled out lavish rewards to shareholders.

Confirmed: Pennsylvania Still Going Broke Friday, Missed Payments ...

NBC 10 Philadelphia-21 hours ago
The state's general fund will run dry following more than two months of failed efforts in the General Assembly to close a $2.2 billion budget deficit. The first bill ...

Pennsylvania could halt spending on Friday without budget

Reuters-17 hours ago
... payments - including nearly $102 million of debt service costs due on Friday ... a credit downgrade,” said Wolf spokesman J.J. Abbott in an email to Reuters.

As Hartford Awaits State Aid, S&P Again Drops City's Bond Rating

Hartford Courant-15 hours ago
Standard and Poor's, which had already downgraded Hartford's debt to junk bond status, dropped the capital city's rating another four notches Thursday, a week ...

Shocker! LA Pension Gap Spirals Past $10 Billion

City Watch-12 hours ago
WPERP's unfunded pension liability increased the most — from $1.1 billion in 2015 to $2.2 billion in 2016 — because plan administrators changed the discount ...

Jackson County taking out $68 million in pension bonds to balance ...

MLive.com-21 hours ago
If the state treasurer's office approves the bonds, Jackson County will instead pay $5 million toward the bonds for the next 25 years - when the pension costs are ...

Overnight Health Care: CBO predicts 15 percent ObamaCare ...

The Hill-17 hours ago

Overnight Health Care: CBO predicts 15 percent ObamaCare premium hike | Trump calls Sanders single-payer plan 'curse on the US' | Republican seeks score ..

 

Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 4 2014
Posts: 587
Hedging your bets?

It strikes me as curious, why any company would boost its pension fund with its own shares, unless they knew something the rest of us didn't. Of course, it is a matter of due diligence that you try and cover you bases with available options. Given indications of financial fragility in the US coffers, perhaps Boeing is covering its butt with overvalued stocks, just in case the safety net becomes over used :

In fiscal year 2015, PBGC paid $5.6 billion in benefits to participants of failed single-employer pension plans. That year, 69 single-employer pension plans failed. PBGC paid $103 million in financial assistance to 57 multi-employer pension plans. The agency's deficit increased to $76 billion. It has a total of $164 billion in obligations and $88 billion in assets.(Pension Benefit Guaranty Corp. annual report)

A backlog of orders is great, only if customers can pay for them. If history is any indication, maybe selling fighter jets to your allies in advance of any military conflict, could be a smart move:  

https://beta.theglobeandmail.com/news/politics/us-approves-sale-of-18-super-hornet-jets-to-canada-for-64-billion/article36238437/?ref=http://www.theglobeandmail.com&

The following graph shows one option of what can be accomplished if valuations exceed earnings. Wars have the added advantage of protecting your cash flows as the years 1939 to 1945 indicate. And, dividends usually follow earnings.

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