Daily Digest

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Daily Digest 2/19 - How To Save Our Infrastructure, Why It's So Hard For Democracy To Address Inequality

Monday, February 19, 2018, 11:46 AM


Big Profits Drove a Stock Boom. Did the Economy Pay a Price? (blackeagle)

What has enhanced wealth in recent years is the huge rise in stock prices. The Standard & Poor’s 500-stock index increased 8 percent per year from 1970 to 2015, on average. According to an analysis by Germán Gutiérrez and Thomas Philippon of New York University, the ratio of the market value of American corporations to the replacement value of their capital stock has roughly tripled since the 1970s.

Islamic Volkerwanderung (James W.)

During my recent review of Nafeez Ahmed book which covers the inter-connected crises threatening the global economy, e.g. climate change, resource scarcity and global debt, I referenced the potential time-frames when worsening climate change will trigger a mass flight from the Middle East and North Africa (MENA) region. This vast tropical area will become uninhabitable by 2030-2040, due to prolonged heat waves and dust storms leading to mega-migrations into the cooler European landmass.

Why Is It So Hard for Democracy to Deal With Inequality? (blackeagle)

Exit polls show substantially larger numbers of college-educated voters than the surveys conducted by American National Election Studies. But the ANES data also shows a sharp increase in the percentage of voters with college and advanced degrees supporting Democratic presidential candidates. In 1952 and 1956, for example, the Democratic nominee, Adlai Stevenson, got 29 and 31 percent of the college-educated vote. In 2012, the most recent year for which ANES data is available, 53 percent of those with at least a college degree voted for Barack Obama. One of the most important of Piketty’s conclusions is that constituencies that feel unrepresented by the new partisan configuration will be drawn to populism. The Piketty report is a significant contribution to the growing collection of studies analyzing the inability of democratic forces to adequately counter inequality.

From imitation to innovation: How China became a tech superpower (blackeagle)

There are still some hold-outs here, and many of the lobbies remain under construction, so it’s easy to slip into an older lift, as I did, and find yourself unexpectedly surrounded by beige keyboards and LaserJet printers. But these juxtapositions also remind you of just how quickly China is changing. “Often, I meet people in Silicon Valley who still think all China can do is clone their ideas, but that’s backwards. Now I see more western companies copying China,” says Rui Ma, an early-stage investor who works between China and Silicon Valley.

Kept out: How banks block people of color from homeownership (blackeagle)

“I had a fair amount of savings and still had so much trouble just left and right,” said Rachelle Faroul, a 33-year-old black woman who was rejected twice by lenders when she tried to buy a brick row house close to Malcolm X Park in Philadelphia, where African Americans were 2.7 times as likely as whites to be denied a conventional mortgage.

In the 1930s, surveyors with the federal Home Owners’ Loan Corporation drew lines on maps and colored some neighborhoods red, deeming them “hazardous” for bank lending because of the presence of African Americans or European immigrants, especially Jews.

The Stock Market Is Not Out of the Woods (thc0655)

The “Yellen Put,” named after Fed Chair Janet Yellen, was also on display many times. Yellen delayed the “liftoff” in rate hikes from September to December 2015 or order to calm markets after the Chinese shock devaluation and U.S. market meltdown in August 2015.

The Yellen Put was used again starting in March 2016 when the Fed delayed expected rate hikes until December 2016 to deal with another China devaluation shock and U.S. market meltdown in January–February 2016.

To Save Our Infrastructure, Make Every Road A Toll Road (blackeagle)

In 2017, the American Society of Civil Engineers gave US road infrastructure a D grade, noting that one out of every five highway miles is in poor condition—potholed, pitted, poorly painted lines, the full catastrophe. This is because there’s no money to fix them. Federal gas taxes were supposed to keep the Highway Trust Fund afloat, but politicians have refused to raise them since 1993.

Future U.S. Oil Production Will Collapse Just As Quickly As It Increased (Alex M.)

Here we can see that oil production increased, peaked and declined in a similar pattern in both Argentina and Norway. However, many countries had their domestic oil industries impacted by wars, geopolitical events, and or enhanced oil recovery techniques that have resulted in altered production profiles. Regardless, the United States experienced a symmetrical oil production profile from 1930 to 2007:

As we age, cancer rates go up as immune system winds down (tmn)

Immunotherapy, by contrast, has achieved some striking successes. Much of it relies on engineered T cells designed and synthesized to kill specific tumor cells. But it also involves awakening the body's existing T cells, which would go on to help fight the tumor. Tumors generally have proteins on their surface that can activate T cells, but they also have mechanisms to suppress the immune system. Cancer immunotherapy relieves this suppression, freeing the T cells to fight the tumor.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/16/18

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."

1 Comment

Uncletommy's picture
Status: Gold Member (Offline)
Joined: May 4 2014
Posts: 485
Did the economy pay a price? Duh!

Nice recommendation, Blackeagle. Very good summation of the current state of affairs and its relationship to the malaise of the stock market and its repercussions. Living beyond what we can afford to borrow has the expected effect. Wealth inequality will continue to grow until many of us hit the wall. What happens then is to be expected

"The rent of the land, therefore, considered as the price paid for the use of the land, is naturally a monopoly price. It is not at all proportioned to what the landlord may have laid out upon the improvement of the land, or to what he can afford to take; but to what the farmer can afford to give." Adam Smith

Delayed gratification may be the only solution for those with the stamina to hold out. Sounds like a revolutionary idea!

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