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Daily Digest 5/22 - Exercise To Stay Young, The Economic Collapse Is Already Here

Tuesday, May 22, 2018, 11:20 AM

Economy

When 43% of Americans Can’t Pay for Food and Rent, We Can Safely Say the Economic Collapse Is Here (drbost)

You know all those reports about how lots of Americans can’t afford a $1000 surprise expense like a medical bill or a car repair? Well, forget additional expenses. It turns out that nearly half of the families in America are struggling to pay for food and rent. And that means that the economic collapse isn’t just “coming.” It’s HERE.

Stephanie Kelton Has The Biggest Idea In Washington (Alex M.)

Kelton’s core idea ― that the government can’t run out of money or go bankrupt, no matter how much it spends ― hasn’t really changed since the days when Buiter and Krugman were trashing her thinking. But it seems the world has. Today she is a full-fledged member of the American power elite, juggling television bookings with MSNBC’s Chris Hayes and Bloomberg TV’s Joe Weisenthal, writing op-eds for The New York Times and being quoted in The Wall Street Journal.

Beyond “Sissy” Resilience: On Becoming Antifragile (thc0655)

With great power and success come great peril and anxiety. As Shakespeare put it, “uneasy lies the head that wears the crown.” When you gain in status and wealth, your responsibilities increase. Mo’ money, mo’ problems. Moreover, you have to constantly be on guard for challengers who want to dethrone you. Which is why the Sword of Damocles is such a great metaphor for fragility. When you’re king or in any position of power, one small jostle could bring down your house of cards; you’re actually more fragile than you might have thought.

Miles Franklin: From David Schectman's Desk (yogmonster)

As the house of cards collapses, bubble assets such as stocks, bonds and property will lose 75-95% of their real value and sovereign states and banks will default. But there can still be a Golden Afternoon for the ones who protect themselves with physical gold and some silver. Gold is the only money, which has survived for 5,000 years and is therefore the ultimate wealth preservation asset:

This is what America’s new space shuttles look like (Thomas R.)

The new class of astronauts can at least take comfort in the fact that their capsules are about sixty percent larger than the Apollo command module that took astronauts on multi-day journeys to the moon—and NASA is requiring that private engineers attempt to make the capsules more than twice as safe as the space shuttle was when it stopped flying.

Wikipedia Is An Establishment Psyop (Matt H.)

This notion that the US and its allies are fighting against Russian “hybrid warfare” (by which they typically mean hackers and disinformation campaigns) has taken such deep root among think tanks, DC elites and intelligence/defense circles that it often gets unquestioningly passed on as fact by mass media establishment stenographers who are immersed in and chummy with those groups. The notion that these things present a real threat to the public is taken for granted to such an extent that they seldom bother to even attempt to explain to their audiences why we’re meant to be so worried about this new threat and what makes it a threat in the first place.

Will my children inherit my mental illness? Here’s what the studies say (Thomas R.)

‘I have huge, inescapable guilt about my children developing the same condition as me,’ Kerry tells me. ‘I’ve already seen depression and anxiety manifest in some of my children, and one has needed medication to overcome them.’ But is there any evidence of a hereditary link?

EVs Could Erase 7 Million Bpd In Demand (Michael S.)

Meanwhile, key ingredients used in lithium-ion batteries, such as cobalt, have seen costs skyrocket as demand has increased. Without significant investment in new cobalt capacity, for instance, there could be shortages within a few years. “If capacity does not grow as planned, cobalt prices could continue to spike and there could be a major cobalt shortage,” BNEF analysts said. “This would have serious implications on the electric vehicle market.”

Peak Oil: The U.S. Shale Oil Ponzi Scheme Explained (Adam)

The horrible economics of the U.S. Shale Oil Industry will pull down the entire economy. Very few people understand the massive decline rates these shale fields experience. I explain in detail why the U.S. Shale Oil Industry is nothing more than the typical Ponzi Scheme.

Exercise to stay young: 4-5 days a week to slow down your heart's aging (Adam)

The authors performed a cross-sectional examination of 102 people over 60 years old, with a consistently logged lifelong exercise history. Detailed measures of arterial stiffness were collected from all participants, who were then categorised in one of four groups depending on their lifelong exercise history: Sedentary: less than 2 exercise sessions/week; Casual Exercisers: 2-3 exercise sessions per week; Committed Exercisers: 4-5 exercise sessions/week and Masters Athletes: 6-7 exercise sessions per week. (NB: an exercise session was at least 30 minutes).

Weird Space Rock Provides More Evidence for Mysterious 'Planet Nine' (Thomas R.)

Following up on the discovery, Quanta Magazine recently published an article surveying several astrophysicists who specialize in studying small worlds, including the discoverers of 2015 BP519. While not everybody agreed that Planet Nine was responsible for the strange orbit, the overwhelming majority agreed the new discovery gives more credence to the idea. "The second you put Planet Nine in the simulations, not only can you form objects like this object, but you absolutely do," lead author Juliette Becker, a graduate student at the University of Michigan, told Quanta. (You can look at the object's orbit online here.)

EU ban on neonicotinoids triggers call for a similar ban in Australia to protect bees (Henry H.)

"Their homes are often in the orchards so they don't want to be spraying with pesticides if they don't have too," Dr Halcroft said.

She urged farmers to avoid spraying at critical times.

2 Boys Arrested After Vandalism That Killed 500,000 Bees On Iowa Honey Farm (Thomas R.)

“They knocked over every single hive, killing all the bees. They wiped us out completely,” Justin Engelhardt told The Sioux City Journal. “They broke into our shed, they took all our equipment out and threw it out in the snow, smashed what they could. Doesn’t look like anything was stolen; everything was just vandalized or destroyed.

Gold & Silver

Click to read the PM Daily Market Commentary: 5/21/18

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."

6 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4132
Larry Summers on interest rates...."zero will often be too high"

Larry Summers Says His 'Secular Stagnation' Thesis Is Catching On

Bloomberg-4 hours ago

... interest—the one consistent with stable growth and inflation—has fallen so low in industrialized nations that zero will often be too high: “a chronic and systemic

HappyCamper's picture
HappyCamper
Status: Member (Offline)
Joined: Apr 16 2018
Posts: 21
Peak Oil

The U.S. Government is selling off the U.S. Strategic Oil Reserves anticipating shale oil production will replace it.

https://www.bloomberg.com/news/articles/2018-02-08/u-s-oil-reserve-would...

https://www.bloomberg.com/news/articles/2017-07-05/u-s-strategic-crude-reserves-shrink-to-lowest-level-since-2005 

 

There are pension funds investing heavily into oil/gas production.

https://ca.reuters.com/article/businessNews/idCAKBN19J1R4-OCABS

http://www.naturalgasintel.com/articles/107383-study-finds-245b-upstream...

https://www.pimco.com/en-us/insights/viewpoints/shale-oil-a-deep-dive-in...

With so many baby boomers depending on pensions to supplement their retirement plans it would seem prudent to watch where this train is heading, and how much track is left.

Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 4 2014
Posts: 554
The Red Queen is alive and well in the oil patch!

When will we come to our senses. PP has been consistent in this message since its inception. The brief video provided by Adam is just another example that collapse is not that far away. How long can we continue to borrow from the future without a precipitious reduction in the financial underpinnings of our economy and society. We are quickly working our way into a severe have-and-have-not society. We should all go back and review PP's interview with Joseph Tainter last year to be reminded, AGAIN, of what is in store for us( about the 20 minute mark). Increasing marginal utility is a real principle and is sneaking up on us rapidly.

Everytime history repeats itself, the price goes up!

Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 4 2014
Posts: 554
Oops!

That should be "DE-creasing marginal utility!

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1854
Collapse arrives but is unevenly distributed & non-linear

Charles Hugh Smith summarizes nicely a line of thinking articulated here by Chris:  That collapse proceedes from the outside in.

The Next Recession Will be Devastatingly Non-Linear

1.  Recession is already here, but is unevenly distributed.

2.  Recession will be non-linear, crashing some sectors while leaving others less affected.

The acceleration of non-linear consequences will surprise.

Linear correlations are intuitive: if GDP declines 2% in the next recession, and employment declines 2%, we get it: the scale and size of the decline aligns. In a linear correlation, we'd expect sales to drop by about 2%, businesses closing their doors to increase by about 2%, profits to notch down by about 2%, lending contracts by around 2% and so on.

But the effects of the next recession won't be linear--they will be non-linear, and far more devastating than whatever modest GDP decline is registered. To paraphrase William Gibson's insightful observation that "The future is already here — it's just not very evenly distributed"the recession is already here, it's just not evenly distributed-- and its effects will be enormously asymmetric.

Non-linear effects can be extremely asymmetric. Thus an apparently mild decline of 2% in GDP might trigger a 50% rise in the number of small businesses closing, a 50% collapse in new mortgages issued and a 10% increase in unemployment.

...

The number of cafes, restaurants and other small businesses with high fixed costs that will close as soon as sales falter is monumental. Add up soaring healthcare premiums, increases in minimum wages, higher taxes and junk fees and rising rents, and you have a steadily expanding burden that is absolutely toxic to small businesses.

The first things to go are marginal employees, overtime, bonuses, benefits, etc.--whatever can be jettisoned in a last-ditch effort to save the company from insolvency. The first bills cash-strapped households will stop paying are credit cards, auto loans and student loansdefaults won't notch higher by 2%; they're going to explode higher by 20% and accelerate from there.

...

 

While employees with employer-paid health insurance are dumbstruck by $50 or $100 increases in their monthly co-pays, those of us who are paying the unsubsidized "real cost of health insurance" are being crushed by increases in the hundreds of dollars per month.

Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 4 2014
Posts: 554
We musn't forget the role of taxes!

Add up soaring healthcare premiums, increases in minimum wages, higher taxes and junk fees and rising rents, and you have a steadily expanding burden that is absolutely toxic to small businesses.

http://www.cbc.ca/news/canada/british-columbia/mcdonald-s-happy-meal-toy...

 

 

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