Daily Digest

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Daily Digest 1/20 - Cape Town Running Out Of Water, VZ’s Oil Production Collapsing

Saturday, January 20, 2018, 12:12 PM


In Venezuela, money has stopped working (Adam)

I think this is what’s so hard to wrap your mind around if you’ve never experienced hyperinflation. It sounds like it’s about prices rising fast, but it really isn’t. It’s about money breaking down. Under hyperinflation, money no longer works. It doesn’t store value. It just stops doing the basic things people expect money to do. It stops being something you want to have and turns into something you’ll do anything to avoid having: something so worthless you won’t even bend down and scoop it up off the floor while you’re looting.

A Short Introduction to the World of Cryptocurrencies (Alex M.)

Bitcoin originated with the white paper that was published in 2008 under the pseudonym “Satoshi Nakamoto.” It was published via a mailing list for cryptography and has a similar appearance to an academic paper. The creators’ original motivation behind Bitcoin was to develop a cash-like payment system that permitted electronic transactions but that also included many of the advantageous characteristics of physical cash. To understand the specific features of physical monetary units and the desire to develop digital cash, we will begin our analysis by considering a simple cash transaction.

GE's $31 billion pension nightmare (pinecarr)

The pension shortfall is yet more evidence of GE's financial troubles, which forced the iconic company to slash its dividend last year for just the second time since the Great Depression. GE shares closed below $17 on Thursday for the first time in six years.

"GE's balance sheet is a mess," said Gautam Khanna, an analyst for Cowen & Co. "They don't generate a lot of cash, and they have a severely underfunded pension plan."

Bitcoin Investor Lost on Every Trade. Here’s Why (Tiffany D.)

Any casual observer would think investors are raking it in! All they had to do was buy some bitcoin at any point last year, hold on to it and cash out.

However, if you look past the staggering returns, you’ll notice that bitcoin is one of the most volatile assets in history.

Peak Oil Demand Is A Slow-Motion Train Wreck (Michael K.)

One of the more intriguing conclusions from the report is that this new “age of abundance” could alter behavior from oil producers. In the past, some countries (notably OPEC members) restrained output, husbanding resources for the future, betting that scarcity would increase the value of their holdings over time. “A high reserves-to-production ratio — implying a country could continue producing oil at the same rate for 80, 90, 100+ years — was a sign of both strength and intergenerational fairness,” the report said.

Venezuela’s Oil Production Is Collapsing (Alex M., sign in required)

Venezuela’s oil output is collapsing at an accelerating pace, deepening an economic and humanitarian crisis and increasing the chances the country will default on its debts.

Prospect of shale wave looms over resurgent oil prices (Uncletommy)

"With production on the rise in the U.S. — in addition to increases in Canada, Brazil and the North Sea — it is unlikely that prices will stay above that threshold on a sustained basis.

"What's more, with such a high level of speculation in the market, the risks for prices are heavily skewed to the downside."

Hell On Earth: Major City Will Run Out Of Water In Less Than 95 Days (thc0655)

The key to beating a drought has always been storage. Water storage can make the difference between a harvest or crop failure, life or death. There are many methods to storing water. Digging reservoirs or ponds to collect the water when it does rain. Having buried cisterns will beat the effects of evaporation that accompany drought conditions. Using 55-gallon drums of treated water in your home can be a huge blessing when the tap runs dry or the source has been contaminated.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/18/18

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."


sand_puppy's picture
Status: Diamond Member (Offline)
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Posts: 2119
Being on the right side of history--Caitlin Johnstone

How to be on the right side of history for every foreign policy issue 100% of the time:
Step 1: Examine an issue.
Step 2: Find out what the neocons are saying about it.
Step 3: Advocate the exact opposite position.




debu's picture
Status: Silver Member (Offline)
Joined: Aug 17 2009
Posts: 243
Caitlin Johnstone

Caitlin Johnstone has over the past few months become perhaps my favourite columnist. She's consistently right about foreign policy (aka empire) and the circus that is U.S. party politics and practically everything else she chooses to write about.

Her's is a very interesting post-partisan take on things which I find relevant and refreshing. Found her originally in a daily Links page at Naked Capitalism, which also is very good.

Not surprised at all that our discerning sand_puppy would have picked up on her:)


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Posts: 4297
California: Go to prison for the robbery-stay for the healthcare

Recent Report Shows California Had Highest Per Inmate Health ...

Sierra Sun Times-2 hours ago
California's Health Care Costs Per Inmate Reported to Be Highest in the Nation. As shown in Figure 1, California averaged the highest health care costs per inmate in 2014‑15 at $19,796 per inmate. The national average was $6,352 per inmate. (We note that these amounts did not include facility costs or health care costs ...

Japan's fiscal target pushed back as government prioritizes social ...

Reuters-14 hours ago

The government's previous twice-yearly projections last July showed the budget would swing to a primary surplus of 1.8 trillion yen or 0.2 percent of GDP in fiscal 2025. The primary budget excludes debt servicing costs and income from bond sales. Originally the goal was to achieve the surplus in fiscal 2020, but Prime .

Italy's Election Promises Heap More Strain on Debt-Loaded Nation

Bloomberg-12 hours ago
A Renzi economic adviser claims it would cost more than 70 billion euros a year, though the head of the pension agency disputes this and sees a high of 30 billion euros. Berlusconi's bloc proposes increasing the minimum pension to 1,000 euros a month and canceling a regional business tax. ADA estimates a cost of 18 ...

China Inc.'s Debt Bills Could Be Worse Than Thought in 2018

Bloomberg-9 hours ago
Rising interest rates are making it more likely that investors will do just that -- using the funds to buy recently issued bonds with higher coupons. There's a record 1.25 trillion yuan ($195.2 billion) of notes that could be put in 2018, more than three times last year, according to data compiled by Tianfeng Securities Co.

Brazil private-sector pension system deficit up 22 pct in 2017

Reuters-3 hours ago
BRASILIA, Jan 22 (Reuters) - Brazil's state pension system for private-sector workers ended 2017 with a 182.45 billion real ($57.2 billion) deficit, a 22 percent increase from the year before, government data showed on Monday. The pension system covering public-sector workers and the army, which offers heftier benefits, ...


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