Daily Digest

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Daily Digest 4/23 - Life On The Oil Frontier, Fiscal Picture Is Worse Than It Looks

Monday, April 23, 2018, 10:27 AM

Economy

The fiscal picture is worse than it looks—and it looks bad (tmn)

Here’s the worse part: The conventional comparison is misleading. The projected budget deficits in the coming decade are essentially “full-employment” deficits. This is significant because, while budget deficits can be helpful in recessions by providing an economic stimulus, there are good reasons we should be retrenching during good economic times, including the one we are in now. In fact, CBO projects that, over the 2018-2028 period, actual and potential GDP will be equal. As President Kennedy once said “the time to repair the roof is when the sun is shining.” Instead, we are punching more holes in the fiscal roof.

Macron to put 'Trump whisperer' skills to test on state visit (tmn)

“What’s the secret of Trump whispering in 2018?” asked Gérard Araud, the French ambassador to Washington, as he attempted to sum up the Macron-Trump relationship at an Atlantic Council event in Washington this month. He acknowledged that although the presidents had different personalities, they were both “disruptors” whose elections had surprised and challenged the old political order in their countries. And both men can be brutally frank. “Donald Trump has never hidden what he thinks, and Emmanuel Macron is the same – so they have built a dialogue,” he said.

Big Brother Meets Black Mirror in the Middle Kingdom (Afridev)

Want to buy a house or car? Sorry. You’re not qualified. Not because of your financial status but because you once said something bad about the government. Need a bus ticket? You can’t board because you’re banned for speaking out against some unjust policy. Oh and you can’t get on a train or fly either because you once opened your mouth in a chat forum when you were fifteen.

And your score doesn’t stop there.

The Secret Life Of The City Banana (tmn)

In most of the country, the unseen, nocturnal business of ripening and distributing bananas is performed by grocery chains like Safeway. In New York, though things may be headed in that direction, much of the work still falls to local banana purveyors. They can trace their roots back to Antonio Cuneo, an Italian immigrant who cornered the market in the late 19th century and became known as the Banana King.

Life On The Oil Frontier (jdargis)

All of this unfolds as political and business leaders push to bring more women and families to the oilfield. The enormous expansion of apartments, restaurants, a high-end recreation center and shops — even a jewelry store! — is supposed to induce men to bring their wives and children. One of the most common reasons a man says he’s leaving the oilfield is that his wife hates living here, or that she refuses to move up at all.

Saudi Arabia’s $100 Oil Dilemma (Michael S.)

As Liam Denning of Bloomberg Gadfly points out, in the past decade, while oil prices have surpassed $100 per barrel for periods of time, they didn’t stay there for very long. In 2008, when oil nearly hit $150 per barrel, it was quickly followed by the financial crisis and a deep U.S. recession. Then, the period between 2011 and 2014, when oil was north of $100 per barrel, U.S. shale crashed the market with a wave of fresh supply.

An invisible boundary that divides the US in half has started to shift — and it may be an ominous sign for the future (Adam)

While the meridian itself — which continues beyond US borders, northwards into Canada, and southwards into Mexico — is in the same place as always, the climate barrier that used to sit on top of it has moved approximately 225 kilometres (140 miles) to the east, Seager says, placing it closer to the 98th meridian west.

So far, this shift hasn't significantly affected farming and land use as the dryer conditions move across the US.

Five myths about recycling (jdargis)

In general, people don’t need to sort their recyclables to anywhere near the degree they used to. More communities are now using “single stream” systems, in which people are encouraged to place all their recyclables into one container. Cleaner materials reduce odors and speed the process, but the recycling steps involve washing, shredding and crushing the material, and then often melting it. Food residue and impurities like paper clips are burned off or collected through magnets and other means. Items made from multiple types of materials, like juice cartons, can be more difficult to recycle, but each facility handles such materials based on its own equipment and needs.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/20/18

Provided daily by the Peak Prosperity Gold & Silver Group

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1 Comment

ezlxq1949's picture
ezlxq1949
Status: Silver Member (Offline)
Joined: Apr 29 2009
Posts: 199
Full employment?

The top article from the Brookings Institute says that

The Federal government is not only running enormous deficits, but we are doing so at a time of full-employment.

They and others always claim full employment, don't they. I read about the millions of able-bodied but discouraged unemployed in the US taking the actual unemployment rate to something like 20-25%, and then contemplate the mentality that ignores this situation and what THAT means for future policy choices.

They're living in their own private Idaho. Can we join them?

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