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Daily Digest 12/3 - NAFTA Formally Canceled, Our Deficits May Finally Be Coming Home To Roost

Monday, December 3, 2018, 8:28 AM


Trump will formally cancel NAFTA to press Congress to approve new trade deal (Thomas R.)

Trump signed a new deal here Friday with the president of Mexico and Canada’s prime minister, following through on a campaign promise he made to renegotiate the long controversial NAFTA agreement. The move will give Congress six months to accept that new agreement or revert to pre-NAFTA trade rules.

Trump, Xi Agree to Temporary Truce in Bid to Contain Trade War (TS)

“It’s an incredible deal. It goes down, certainly -- if it happens, it goes down as one of the largest deals ever made,” Trump told reporters aboard Air Force One as he returned from Argentina. “China right now has major trade barriers -- they’re major tariffs -- and also major non-tariff barriers, which are brutal. China will be getting rid of many of them.”

Economic Winter And The Coming End Of Globalization (James W.)

“As “free” market capitalism breaks down in a postgrowth era, command economies will be the logical fallback — both China and Russia already have hybrid state-capitalist economies, and as China extracts itself from the economic crisis its last few decades have guaranteed it, it’ll move further into a command economy direction. Markets will doubtless continue to function, but they’ll be manipulated more and more openly to produce the results governments desire, and a growing fraction of real economic activity will go off-book or be reduced to subsistence activities and local exchanges detached from market forces.”

Our deficits may finally be coming home to roost (thc0655)

These costs can, for example, show up in the form of some combination of inflation, tax increases and spending cuts. Given the political difficulty of cutting popular entitlement programs, future tax increases are more likely than spending cuts. This option imposes a burden on the private sector of the economy.

Excessive budget deficits might also lead to higher future inflation — itself a sort of tax. However, the Fed is committed to a 2-percent inflation target, thus future tax increases again seem the most likely outcome of deficit spending.

“I Hereby Confess Judgment” (jdargis)

The lenders’ weapon of choice is an arcane legal document called a confession of judgment. Before borrowers get a loan, they have to sign a statement giving up their right to defend themselves if the lender takes them to court. It’s like an arbitration agreement, except the borrower always loses. Armed with a confession, a lender can, without proof, accuse borrowers of not paying and legally seize their assets before they know what’s happened. Not surprisingly, some lenders have abused this power. In dozens of interviews and court pleadings, borrowers describe lenders who’ve forged documents, lied about how much they were owed, or fabricated defaults out of thin air.

No Charges Will Be Filed Against The Migrants Arrested In The US Border Clash That Ended With Tear Gas (tmn)

Some individuals threw objects, including rocks, and US border agents responded by firing tear gas and pepper spray balls at the crowd. The confrontation was the first instance of violence since the group arrived in Tijuana. Forty-two people — 27 men and 15 women and children — were eventually arrested during the nearly two-hour ordeal.

News Networks Fall Short on Climate Story as Dolphins Die on the Beach (jdargis)

But Florida is run by a governor, Rick Scott, whose environmental officials had discouraged the use of the phrase “climate change.” And this part of the state is Trump country, not to mention a vacation enclave for conservative media stars like Sean Hannity and Neal Boortz, who doubt the scientific consensus on the human contributions to climate change.

Dozens injured as 22 tornadoes reported in central Illinois (Thomas R.)

There were 22 tornadoes reported to the National Weather Service on Saturday, all in central Illinois. The offices in Lincoln, Illinois, and St. Louis, Missouri, will conduct storm surveys on Sunday to confirm the intensity and track of the tornadoes.

We broke down what climate change will do, region by region (blackeagle)

Our region is looking at “the largest temperature increase in the contiguous United States” — 3.6 degrees Fahrenheit by the time 2035 rolls around. We’re going to be slammed with the highest rates of sea-level rise in the whole damn country, and we’re going to have the highest rate of ocean warming. Urban centers are particularly at risk (remember Superstorm Sandy?). And if you’re a fan of snuggling up beside the fire in your Connecticut mansion (or whatever), be warned that winters are projected to warm in our region three times faster than summers. That means delayed ski seasons and less time to tap maple trees.

Gold & Silver

Click to read the PM Daily Market Commentary: November 2018

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."


saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4280
Moody's says outlook for China local governments negative due to

Moody's says outlook for China local governments negative due to ...

Reuters-11 hours ago
... financing vehicles - rose to 60 trillion yuan ($8.67 trillion) as of end-October, ... Local governments have almost exhausted their annual quotas for new debt ...

Italy considers buybacks or exchanges on government ...

Reuters-25 minutes ago
Italy needs to raise around 400 billion euros ($453 billion) in 2019 to refinance maturing debt and cover for new spending, as the European Central Bank ...

The US needs to clean up its monetary excesses and twin deficits

CNBC-14 hours ago
The Fed's monetary base (M0) has skyrocketed from $820 billion in early 2008 to $3.5 trillion as of the last reserve reporting date on Nov. 21, 2018. Over the ...


Uncletommy's picture
Status: Platinum Member (Offline)
Joined: May 3 2014
Posts: 668
So, what are you doing about climate change?

Are you like the neighbor across the road or plugged into a energy system that, in most places, captures about 30% of the thermal energy used to produce it. I'm sure your SUV will appreciate it!

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