Daily Digest

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Daily Digest 7/23 - Trade War Is Getting Serious, Who Owns The Moon?

Monday, July 23, 2018, 11:01 AM

Economy

Trump's trade war is getting serious — here's why it started, what it means for the US economy, and how it could hit you (Thomas R.)

Trump has long been a fan of tough action on trade. In the 1980s, the then-real estate mogul railed against the US's trade deficit and warned of "other countries ripping off the United States." In a 1990 Playboy interview, Trump was asked about his first action if he ever became president.

Stagflation or Price Stability (Wilson S.)

If inflation is indeed a monetary policy phenomenon, then sooner or later surges in consumer prices should be expected. If this occurs before any evidence of an economic boom of high growth, then and only then would economists consider the prospect of stagflation (Greenspan, 2018). We may be reaching that stage as some recent data are suggesting. The possibility of accelerating US consumer price inflation is suggested in the following chart:

The Case For Gold Is Not About Price (thc0655)

In 1971, the cost for one loaf of bread was $.24. The average cost for one gallon of gasoline was $.36. With gold at $42.00 per ounce, you could purchase one hundred seventy-five loaves of bread or one hundred seventeen gallons of gasoline (or some combination of the two).

Forty years later, in 2011, the average cost for one loaf of bread was $2.42; and one gallon of gasoline was priced at $3.52. Hence, again, using only one ounce of gold (this time priced at $1900.00 per ounce) you could purchase seven hundred eighty-five loaves of bread or five hundred thirty-nine gallons of gasoline.

Reminder: Women Migrants Are Fleeing Countries The U.S. Helped Decimate (blackeagle)

For many decades, but particularly in the 1980s, the United States funneled billions of dollars in military aid to authoritarian Central American governments with the stated goal of combating communism. The funding, equipment and training transformed civil wars in Guatemala and El Salvador into conflicts of exceptional brutality. Government forces, sometimes trained by the United States, often exterminated whole villages. In El Salvador, a country of a few million people, 75,000 people died; roughly a fifth of the population fled. In Guatemala, a truth commission would later blame the degree of brutality on training military officers received at the U.S.-run School of the Americas.

A Global Guide To State-Sponsored Trolling (tmn)

In Venezuela, prospective trolls sign up for Twitter and Instagram accounts at government-sanctioned kiosks in town squares and are rewarded for their participation with access to scarce food coupons, according to Venezuelan researcher Marianne Diaz of the group @DerechosDigitales. A self-described former troll in India says he was given a half-dozen Facebook accounts and eight cell phones after he joined a 300-person team that worked to intimidate opponents of Prime Minister Narendra Modi. And in Ecuador, contracting documents detail government payments to a public relations company that set up and ran a troll farm used to harass political opponents.

Alcohol-Related Liver Deaths Have Increased Sharply, And It's Not in The Age Group You'd Think (Thomas R.)

The researchers found that deaths for certain groups of people decreased between 1999 to 2008 - but rose sharply starting in 2009. They speculated that the 2008 economic crisis and subsequent rise in unemployment may have been a factor.

Decade After Crisis, a $600 Trillion Market Remains Murky to Regulators (Thomas R.)

Derivatives are instruments whose values are derived from the prices of other things, like a stock or a barrel of oil or a bundle of mortgages. Originally designed to protect their holders against future risks, they evolved into vehicles that traders used for financial speculation. Unlike stocks, they often aren’t traded over public exchanges, which means the market — and who is exposed to what — is opaque.

China’s Latest Consumer Scandal: Unsafe Vaccines (sign-in required, Thomas R.)

Chinese Premier Li Keqiang called for a government investigation into “the entire process chain of all vaccine production and sales,” after a drug company allegedly sold more than 250,000 doses that failed to meet safety standards.

Here's What the Proposed Retirement Savings Changes Could Mean to You (Thomas R.)

Another bill is specifically intended to make changes to retirement savings in the United States. Known as the Retirement Enhancement and Savings Act, the bill would make some pretty significant changes. While a draft of the bill hasn't been made public yet, here's what we know about the changes it could make:

Bitcoin Breaks $7,500 Point After a Week of Solid Growth, BTC Dominance Goes Up (Thomas R.)

Bitcoin broke the $7,500 barrier today, up about 1 percent over a 24 hour period and trading at $7,516 at press time. The major cryptocurrency is up almost 18 percent this week, having traded roughly $1,000 less on Monday morning, July 16. The coin is also holding its monthly gains of around 21 percent.

Everything You Need To Know About Cryptocurrency (Joe T.)

Word on the street is that cryptocurrencies (especially Bitcoin) are creating millionaires all around us. People are making money from crypto-investments in a manner that no one ever dreamt of a few years ago. For instance, if you had invested $100 in Bitcoin in 2010 when one BTC was valued at just $0.39 and sold off your coins in November 2017, when the value hit over $15,000, then you would have made several millions of dollars. So, it is easy to see why everyone is talking about cryptocurrency.

Plutonium is missing, but the government says nothing (tmn)

But when they stopped at a Marriott hotel just off Highway 410, in a high-crime neighborhood filled with temp agencies and ranch homes, they left those sensors on the back seat of their rented Ford Expedition. When they awoke the next morning, the window had been smashed and the special valises holding these sensors and nuclear materials had vanished.

More than a year later, state and federal officials don’t know where the plutonium – one of the most valuable and dangerous substances on earth – is. Nor has the cesium been recovered.

Who owns the moon? A space lawyer answers (Thomas R.)

By 1969, decolonization may have destroyed any notion that non-European parts of the world, though populated, were not civilized and thus justifiably made subject to European sovereignty – however, there was not a single person living on the moon; even life itself was absent.

A self-made millionaire who retired at 33 says it took him months to adjust — here's how he schedules his days to enjoy retirement (Thomas R.)

McCurry divides his days into five categories: work, meals, physical, fun, and social. On a weekly basis, he spends roughly 7 1/2 hours with family or friends, 13 hours working (whether it's yard work or personal-finance chores), 18 hours doing some sort of physical activity, such as swimming, and 35 1/2 hours having fun, which could be planning vacations, reading, or blogging.

Is The Oil World In Panic Mode? (Michael S.)

I am a student of the financial players and their influence into oil prices, and generally look at the movement of speculative money in and out of the futures markets. But even here there hasn’t been a discernible reason for oil’s latest drop. According to the COT reports, long positions have actually held fairly steadily through this latest 7 dollar downdraft in oil.

Nearly 100 people sickened with norovirus on Maine beach, state CDC says (Thomas R.)

"As an additional precaution I had the two sinks removed and installed hand sanitizers and re-opened the beach for swimming," Peabody said in a statement.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/20/18

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."

7 Comments

DennisC's picture
DennisC
Status: Gold Member (Offline)
Joined: Mar 19 2011
Posts: 328
Retirement Enhancement and Savings Act

If you like to take a nap around 14:00, here's some melatonin-like reading material to help you drift off.

re: Retirement Enhancement and Savings Act, go to congress dot gov and search for S.2526 or H.R.5282.

In the end, it was the Sunday [or Monday, for that matter] afternoons he couldn’t cope with, and that terrible listlessness that starts to set in about 2:55, when you know you’ve taken all the baths that you can usefully take that day, that however hard you stare at any given paragraph in the newspaper you will never actually read it, or use the revolutionary new pruning technique it describes, and that as you stare at the clock the hands will move relentlessly on to four o’clock, and you will enter the long dark teatime of the soul. - The Hitchhiker’s Guide to the Galaxy

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1982
Melatonin-like Reading Material

A quick pic from John Rubino:  Public Sector Pensions:  The Parasite Devours Its Host

DennisC's picture
DennisC
Status: Gold Member (Offline)
Joined: Mar 19 2011
Posts: 328
This was an interesting read

...at least for me (no face-plant on the keyboard).  If it floats other readers' boats, the report linked in the ZH article:

http://www.wirepoints.com/overpromising-has-crippled-public-pensions-a-5...

was interesting, IMO.

newsbuoy's picture
newsbuoy
Status: Gold Member (Offline)
Joined: Dec 10 2013
Posts: 282
newsbuoy's picture
newsbuoy
Status: Gold Member (Offline)
Joined: Dec 10 2013
Posts: 282
The Shadow knows...

Neither of these articles, with their implicit judgements about unnamed persons making said "over-promised" promises to working people, aka anti-union BS, have the word(s); bank, banker, broker, salesperson, GoldmanSacks, bankster, etc,...within them. Not once. Strange. Me thinks.

So who were the folks consulting, counceling or advising, the pension fund managers about the various financial product opportunities (which shouldn't be missed). Hey, buy some of these argentina Souveriegn bonds, you can't go wrong. guaranteed. Buy now, pay later.

socialize debt

privatize profit

repeat

davefairtex's picture
davefairtex
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5587
state-sponsored trolling

Very cool article.  You all know I'm always seeing trolls here...go read this article and see just how widespread the whole thing is.

Troll 1.0 and 2.0 are fairly easy to spot, at least for me, here, where the dialog tends to be a bit more reasonable.

I do wonder, once AI gets to the point of passing the Turing test, if we will ever be able to tell who is a bot and who is not.  Probably not.

The future is AI.  And I'm not so sure its a bright one.

 

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1982
Trump is De-Globalizing

Peter Koenig at The Saker Blog looks at the wreck that Trump is making of the global commerce status quo.  Where as we assumed he was more of a bull in the china shop, perhaps it is something very different.

I think that this is BIG.

The globalization effort of the last several decades most benefited the owner class.  Factories were moved to places where $2/day workers were unlimited, while cheap petroleum permitted transportation of finished products to market on container ships and trucks. 

Local econmies and local jobs were damaged as those pesky $25/hour union workers in small town USA could be laid off and the school systems funded by their taxes fell into decay.  The children played in abandoned lots where factories once stood and the unemployed union workers seek solice in Miller Lite, OxyContin and TV.

But the owner class absolutely LOVED globalization.  It was enthusiasticly backed by both sides of the isle.

Then comes Trump disrupting trade agreements and sanctioning and threatening just about everybody trashing the globalized status quo.

From afar [Trump's actions] looks like the most wicked and non-sensical trade war the US via Trump, is waging against the rest of the world – à la “Make America Great Again”. .... Knowingly and deliberately the west and it’s financial key institutions, IMF, World Bank, FED, European Central Bank – trick the public at large into believing their statistics and predictions – which, if one goes back in history, have always been off, way off.

So, in response to the latest Trump-promoted trade fiasco at the G20 in Argentina, the IMF is up in arms, saying this might lower world GDP by at least 0.5%. – Even if true, so what?

As one commenter at ZeroHedge points out, Trump is pissing off all the right people, so maybe he is doing something right.  And that is:

[W]hat [can] renewed local production and monetary sovereignty bring to the world economy; precisely what Mr. Trump says he wants to propagate for the US of A – local production for local markets and for trade with countries that respect mutual benefits

Rather than have the entire globe be the personal sandbox of the oligarchy, the destruction of globalization can bring manufacturing and consumption back into a local focus.  This is the same kind of effect that the anticipated high oil prices of tomorrow will have.   Crashed trade agreements start this movement today, before high oil prices force it tomorrow.

And rather than the entire globe being a single sandbox for predatory harvesting by the elite, the focus is changed to local economies who deal with each other in ways that benefits those local economies.

As we ponder the shape of a world without global supply lines, this could be a step foreward.

And oh does the Manhattan Elite hate Trump!!

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