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Daily Digest 6/5 - Citizenship For Sale, Is White America Ready To Confront Its Racism?

Tuesday, June 5, 2018, 10:11 AM

Economy

Citizenship for sale: how tycoons can go shopping for a new passport (blackeagle)

But there are as many as two dozen other countries, including several in the EU, where someone with the financial resources of the Chelsea football club owner could acquire a new nationality for a price: the global market in citizenship-by-investment programmes – or CIPs as they are commonly known – is booming.

The Federal Reserve Is A Privately Owned Corporation (from 1998, blackeagle)

Rothschild, a London Banker, wrote a letter saying "It (Central Bank ) gives the National Bank almost complete control of national finance. The few who understand the system will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class... The great body of the people, mentally incapable of comprehending, will bear its burden without complaint, and perhaps without even suspecting that the system is inimical (contrary) to their interests."

If We Want Your Money, We’ll Take Your Money (thc0655)

Under the asset forfeiture laws recently defended by the chief law enforcer of the country, Attorney General Jeff Sessions – it is not only acceptable but meritorious to simply take people’s life savings without any legal process whatsoever – beyond the mere grabbing of the money by law enforcers, that is.

Is white America ready to confront its racism? Philosopher George Yancy says we need a 'crisis' (blackeagle)

Given the racist insults, one might argue that the point that I was trying to make was, in many ways, confirmed. I did receive a few very powerful and beautiful responses from white readers who said to me that they accepted the gift that I offered and that they would critically and honestly engage their racism even as they knew that the challenge was real and requires serious work. But after so many insults, I have come to have profoundly less hope in white America.

Small Asteroid Strikes Africa Just Hours After It Was Spotted (Thomas R.)

A rock entered the atmosphere traveling around 38,000 miles per hour at 6:44 pm Botswana time, creating a fireball, lining up with the predictions.

Top 5 Cryptocurrency Projects To Watch In June 2018 (Thomas R.)

EOS plans to launch with 1,000–6,000 TPS. If this is realized, they will have one of the fastest blockchains available today. EOS achieves high performance through the use of Delegated Proof-of-Stake (DPoS) with a relatively small amount (21) of Block Producers (a.k.a. nodes).

The New Machiavelli (yogmonster)

Thus I looked to reading The Dictator’s Handbook: Why Bad Behavior Is Almost Always Good Politics by Bruce Bueno de Mesquita and Alastair Smith with great anticipation. I had an inkling that I would disagree on much with the authors, but I was looking forward not to agree, but to learn.

Whoever Controls The Narrative Controls The World (thc0655)

What is interesting to me, however, is the fact that Reid's bosses are protecting her career so adamantly. Both by refusing to fire her, and by steering the conversation into being about her controversial blog posts rather than the fact that she told a spectacular lie in an attempt to cover them up, Reid is being propped up despite this story constantly re-emerging and making new headlines with new embarrassing details, and despite her lack of any discernible talent or redeeming personal characteristics. This tells us something important about what is going on in the world.

The Oil Trader Tug-Of-War (Michael S.)

The WTI discount to Brent has doubled from around $5 a barrel in mid-May, while U.S. production continues to break records by the week, and the Permian faces takeaway capacity constraints. The Permian’s production is expected to grow by another 78,000 bpd in June over May, to 3.277 million bpd, EIA estimates show.

Images of Fukushima’s Exclusion Zone Remind Us of the Walking Dead (Thomas R.)

You can see how the streets have turned green, and the cars were deserted as if all the drivers turned into zombies and abandoned them. Clearly that was not the case, but the images sure are impressive and scary at the same time. Let us remind you that the incident was rated 7 on the International Nuclear Event Scale (INES).

5.5-magnitude quake rattles Big Island; No tsunami generated (Thomas R.)

Officials say that the afternoon explosion happened in a shallow part of the crust near Kilauea, right up next to the service. Thelen says that despite its magnitude, only people in the area of the volcano would have felt any tremors.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/4/18

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."

8 Comments

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5843
Unintended consequences

Trade barriers always create a new set of incentives and disincentives.  People are smart, and will find a way to live within whatever incentive set exists.

In the case of the steel tariffs, the unintended consequences are really beginning to pile up.

Steel Tariffs Are Taxing Some American Companies

June 2, 2018

New tariffs intended to bolster the American steel and aluminum industries are starting to have the opposite effect in a key part of the U.S. supply chain.

U.S. steel producers are benefiting from tariffs that make it more expensive for companies to buy the metals overseas.

But some U.S. firms that use the metals to make everything from refrigeration parts to wheels say the tariffs have led to higher materials prices that are forcing them to charge more for their products. These firms say that in some cases, customers are turning to foreign suppliers that use cheaper, tariff-free metals to make the same products they can then export to the U.S. without bumping up against the new trade barriers.

The fallout, while so far limited, illustrates how efforts to protect some U.S. companies can cause unintended pain for others.

“This is a nightmare for steel consumers,” said H.O. Woltz III, chief executive of Insteel Industries Inc., a North Carolina maker of concrete reinforcements. Mr. Woltz said some of Insteel’s customers have indicated they will boost imports. nded pain for others.

Aneesa Muthana, owner of Pioneer Service Inc. in Addison, Ill., said her company recently lost two orders—worth about $60,000 annually—from a longtime customer.

Pioneer Service doubled the price of some refrigeration and climate-control parts to account for higher steel costs, she said. In response, the customer tapped a Chinese competitor to supply the parts. “This is really hurting manufacturing,” Ms. Muthana said.

One option for manufacturers with established supply chains abroad is to shift production outside the U.S. to take advantage of lower costs.

The intended consequence was to bolster US manufacturing and increase jobs.

The unintended consequence was to harm US manufacturing and decrease jobs.

I wonder where the balance lies in this particular story?  Was the harm greater than the benefit, or the other way around?

Mohammed Mast's picture
Mohammed Mast
Status: Silver Member (Offline)
Joined: May 17 2017
Posts: 196
Cost / Benefit

It is a very difficult problem uh I mean predicament. We have traveled too far don the road of hollowing out our manufacturing base, As Steve Jobs said " those jobs are not coming back"

Personally in response to the barbarism the Chinese are guilty of in Tibet will not buy anything made in China unless I cannot source it somewhere else and absolutely need it.For example try buying a ceiling fan. None are made in the US. That is NONE. 

I cannot think of one front that China has not won in the economic war.

What I find more troubling is that the US is aiding and abetting its own demise. For example China ia moving away from coal but not to alternatives ( at least not in great amount. Guess what they are switching to and whaere they are getting it  LNG. from the US. So all that LNG instead of going to our energy independence is going to nailing our coffin. IS THIS A GREAT COUNTRY OR WHAT?

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3191
I wonder where the balance lies in this particular story?...
Quote:

... Was the harm greater than the benefit, or the other way around?

My guess is the former.  Trump has managed to piss off many of our greatest allies and trading partners.  A high percentage of them have already promised retaliation, not least of whom are Mexico and Canada, our largest and closest trading partners.  As I understand my history, trade wars never turn out well.

Trump's strategy seems to be that he can bully other nations into trading by our dictates.  The most ignorant and otherwise ill equipped person to ever hold the office of POTUS is directing our trade policy.  On the surface it appears to be one more step in offending everyone in the known world, except of course Putin and Netanyahu.  What could possibly go wrong?

 

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 447
Re:Unintended consequences {tarriffs]

Yes, I think we'll see a significant decline in US jobs (includes non-manufacturing jobs)

1. Increase used of automation. One of the best ways for companies to reduce costs is to reduce labor.

2. Outsourcing more parts that aren't subject to tarrifs in order to reduce overall costs.

3. Outsource production overseas and focus on non-US consumers. The US is only about 5% of the global population. It likely more profitable to sell manufacturered goods outside of the USA, rather than limit sales to a shrinking pool of US consumers (Demographics, Debt loads, etc). Higher production costs (commodities, labor, taxes, regulation) make it more difficult for US consumers to afford US made goods.

4. Non-Manufacturing jobs will take a hit. Consider that higher commodity process will hit service jobs: Construction workers building Steel buildings. Car\Applicance salesmen: Higher auto/applicance prices will reduce demand. 

Tarrifs never work, It just creates imbalances, and price control monopolies. US Steel producers aren't going to hire new workers or build new plants. They just raise their prices and sell the same amount of steel they did before the tarrifs. Why risk investing in new plants\more equipment, if tariffs will end before you can recover capital expenses? There is no gaurentee the tariffs will last more than a couple of years.

 

 

davefairtex's picture
davefairtex
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5595
our allies, supply lines, a world of less

Isn't it interesting how our allies (Germany!) have managed to keep manufacturing jobs in their country, in the face of automation.

And - "we are pissing off our allies" - by doing to them what they've done to us for decades.  (Of course when our allies did it to us, did anyone complain?  Not that I heard)

And the part I love most: "tariffs never work."  Except, of course, they seem work for them.  Certainly they have a higher tariff regime than we do.  And more manufacturing jobs.

"But tariffs never work."  Except of course when they do.  For them.

We need to bring back manufacturing to the US, to shorten our supply lines.  When oil starts to run low, importing things will become a lot more expensive, and it will be too late to rebuild manufacturing here in the US, because we won't have the surplus energy left to rebuild.  We should do it now, while we still can - while the world is still at peace.

Imagining that the globalized, fragile, worldwide supply chain mechanism will continue to work flawlessly into the future, when we know the future will probably be "a world of less", seems short-sighted.  Domestic resilience demands we bring manufacturing back to the US.

This will be a bumpy road.  It is a long term project.  Trump is right - in aggregate, if not in specific.  We need to make steel, cars, heavy equipment, planes, etc.  Ideally, we need to make everything we consume.  This, in order to prepare for a world of less - a world that we all know is coming.

Michael_Rudmin's picture
Michael_Rudmin
Status: Platinum Member (Offline)
Joined: Jun 25 2014
Posts: 904
We might see a decline in jobs

And yes, tariffs never work -- they just create imbalances. I'll give you your two gimmes there.

However, have you never considered that our migrant control laws also are in fact tariffs? And they also have been creating imbalances?

So when you tax/tariff one group, but never the other... you enrich the second and impoverish the first.

There's your imbalance for you.

So we've had eighty years of extreme tariff on the laborer, and fifty years of non-tariffed corporations. So at this point, the claims ring hollow.

Set the tariffs in place, and surely the jobs will hurt, as the powerful try to protect their positions...but maybe it'll restore balance, on the other hand.

I'm not saying the tariffs are good; I'm saying it isn't obvious to me what'll happen.

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 447
"Isn't it interesting how our

"Isn't it interesting how our allies (Germany!) have managed to keep manufacturing jobs in their country, in the face of automation."

Americans don't share the same work ethics as Germans. Consider that Boomers are retiring, and Millennials are useless. Ask a Millennial if they are interested in working in a steel mill or other industrial plant, and they look at you if you asked them to work in a forced labor camp. There are not enough Gen-Xs to support retireed boomers & millennials.

 

"e need to bring back manufacturing to the US, to shorten our supply lines. When oil starts to run low, importing things will become a lot more expensive, and it will be too late to rebuild manufacturing here in the US, because we won't have the surplus energy left to rebuild. We should do it now, while we still can - while the world is still at peace."

Never happen: See my first response reply above. The US cannot complete with Asia do to excessive regulation. The US would need to permenent roll back regulation, US labor laws, and re-education the younger generations to be able to work in US factories. FWIWL no trade economic policy outlasts the next election or recession. When the President politican replaces Trump (or the DNC takes control over congress), Tariffs and deregulation will be cancelled. No company is going to invest millions/billions in new plants & train workers when it will all get rolled back during the next election cycle.

 

" We need to make steel, cars, heavy equipment, planes, etc."

We already do! Ford, GM, Crysler, Catapiller, Boeing, etc all have US manufacturing plants in the USA. But tarriffs will hand them a monopoly. They will just raise prices. Already Steel prices are rising and costs for finished goods are going up 10% or more. Are you going to run out an buy a new car if its 10% to 20% more expensive? Or are you going to hold on to your old car for as long as you can? 

"This, in order to prepare for a world of less - a world that we all know is coming."

Its going to end in a Nuclear war. We are following the same process that led to WW 1. Tariffs, Resource Imperilism, Debt, Military Keynesium, etc. 

 

 

 

 

 

 

davefairtex's picture
davefairtex
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5595
how it will end

tech-

Its going to end in a Nuclear war. We are following the same process that led to WW 1. Tariffs, Resource Imperilism, Debt, Military Keynesium, etc.

We talk about localizing our food production in order to shorten our supply lines for the future, save energy, etc.  If it makes sense to do this with food, it actually makes sense to do this with most everything that we can.  And if a war is coming, then localizing stuff makes even more sense.  If all our antibiotics are manufactured offshore, well, don't we think that's a problem?

Here's a thought:

If nuclear war is coming, then tariffs don't really matter much.

If nuclear war isn't coming, then we probably want to localize, and tariffs help us do just that.

If we end up paying 20% extra for our cars, but we have all the production on shore when things go south, "we'll be glad we did."

In other countries, they have a 100% import duties on cars.  They manage just fine.

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