Daily Digest

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Daily Digest 3/17 - The Truth About Money, The Sixth Mass Extinction Is Here

Saturday, March 17, 2018, 10:12 AM

Economy

Larry Kudlow predicts 4%-5% growth, 'investment boom' (Adam)

Larry Kudlow, picked to be President Trump’s new economic adviser, has privately told the White House that the nation’s economy is on the verge of 4 percent to 5 percent growth, or more than double the last decade.

The Truth About Money (Phil D.)

Here’s the thing, son. New money is issued by an agent of the government called the Federal Reserve Bank, created by Congress a hundred years ago, then lent back to the government through banks who were given ownership of the Federal Reserve.

The government then spends the money, funnelling it to staff and preferred contractors. All of the new money is loaned into existence by the government to the government through the banks, and they even split up the interest with each other.

Corporate America’s new dilemma: raising prices to cover higher transport costs (Uncletommy)

As U.S. economic growth has revved up, railroads and truck fleets have not expanded capacity to keep pace - a decision applauded by Wall Street. Shares of CSX Corp (CSX.O), Norfolk Southern (NSC.N), and Union Pacific Corp (UNP.N) have risen an average 22 percent over the past year as they cut headcount, locomotives and rail cars, and lengthened trains to lower expenses and raise margins.

Quickening economic growth, a shortage of drivers and reduced capacity, and higher fuel prices have driven up transportation costs, prompting some companies to threaten to raise prices on goods ranging from chicken to cereal.

65% of Americans save little or nothing—and half could end up struggling in retirement (Adam)

Only 16 percent of survey respondents say that they save more than 15 percent of what they make, which is what experts generally recommend. A quarter of respondents report saving between 6 and 10 percent of their income and 21 percent say they sock away 5 percent or less.

Meet the tech evangelist who now fears for our mental health (blackeagle)

But certain aspects of her relationship with technology were not so wonderful. “I’d wake up and look at Twitter,” she says. “I had two small children, and the first thing I should have been doing was going to see the kids, but I’d be looking at Twitter.” She realised she was using social media for validation, to feed her ego. She began to think: “If technology is an enabler, why am I just using it for things I don’t like about myself?”

Pfizer CEO gets 61% pay raise—to $27.9 million—as drug prices continue to climb (jdargis)

The 61 percent raise comes after a string of separate reports noting drug price increases by Pfizer. In January, FiercePharma reported an analysis finding that Pfizer implemented 116 price hikes just between this past December 15 and January 3 of this year. The list price increases ranged from 3 percent to 9.46 percent. The analysts noted that Pfizer increased the price of 20 drugs by 9.44 percent. Those included Viagra, Pristiq, Lipitor, and Zoloft, which are available as generics, as well as Chantix.

Revealed: The worrying state of Earth's species in numbers as scientists warn the sixth mass extinction is here and wildlife is in a 'global crisis' (Adam)

Currently around 41 per cent of amphibian species and more than a quarter of mammals are threatened with extinction. Starting Saturday, a comprehensive, global appraisal of the damage, and what can be done to reverse it, will be conducted in Colombia.

Fake processed food is becoming an epidemic in African urban life (blackeagle)

Data focused on the African continent is not as readily available, but what exists is alarming. Recent research by the Confederation of Tanzania Industries estimates that over 50% of all goods, including food, drugs and construction materials, imported into Tanzania are fake. Anecdotal evidence suggests that rates could be between 10% and 50%, depending on the food category and the country.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/16/18

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."

2 Comments

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 453
Re:Larry Kudlow predicts 4%-5% growth, 'investment boom'

Larry Kudlow stated Bear Sterns was safe and sound a week before its collapse, while he was Bear Sterns lead economist.

 

FWIW: The increase in the US economy is because people are borrowing more money, and there is a construction boom down south repairing the storm damage from last seasons hurricanes that hight Florida and Texas. Maybe there is enough momement to sustain growth for a short while. Debt is now at an all time high, bigger than the 2004-2008 debt super-cycle. 

Three Top Possible paths:

1. The Fed raised interest rates, pops the bubble and causes another recession.

2. The Fed holds and the debt increases to the point consumers & business can't service it and the economy falls into recession.

3. Trump's tariffs trigger a trade war  causing a global recession.

Option 1 could happen this year depending on how much and fast the Fed raises Rates. Option 2 would take considerable longer, Option 3 can happen anytime.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4239
How pensions are clobbering small California cities like Santa C

How pensions are clobbering small California cities like Santa Cruz

OCRegister-11 hours ago
When Santa Cruz, a picturesque and funky coastal city, first started to feel the pinch of rising retirement costs for city workers, it took several steps to limit the fiscal pain. As recommended by the League of Cities and other authorities, Santa Cruz issued a bond to pay down its rising pension liabilities, set aside funds to cover ...

South Korea Household Debt to GDP Soars to Record High

Financial Tribune-15 hours ago
Housing price growth in Korea has already eased quite sharply since 2016 but household debt continues to rise rapidly. The debt rose to a new record in 2017 with the amount including credit purchases hitting 1,450.9 trillion won ($1.3 trillion), up 8.1% from 2016, according to the BoK. To cool the booming property market ...

 

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