Daily Digest

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Daily Digest 2/12 - Green New Deal Critics See Red, How Bad Is the China Slowdown?

Tuesday, February 12, 2019, 12:55 PM

Economy

Dow jumps 300 points on tentative deal to avoid government shutdown, US-China trade hopes (Thomas R.)

On Monday night, congressional negotiators struck a deal in principle that would keep the government open and avoid a shutdown on Friday. The drafted agreement did not contain funds for President Donald Trump's border wall, however. If the government is going to avoid another shutdown, it will need support from Trump, however.

All the ways Gen X is financially wrecked (Adam)

They’ve got the most credit card debt of anyone — yet still spend more than anyone on non-essentials. Members of Gen X have higher levels of credit card debt — which tends to carry a higher interest rate than most other debt — than other generations. Indeed, credit card debt levels peak between the ages of 45-54 at $9,096, with the second highest levels of debt being or those who are 35-44 at $8,235. Meanwhile, the under 35 set has just $5,808.

The decline of the US Navy (thc0655)

The condition of those ships was also declining as the Navy reduced time devoted to maintenance. Ships that once docked for 15 weeks for repairs were sent to sea after just nine weeks. The effects were dramatic; destroyers the Navy hoped would last for 40 years were hanging on for just 25. Reports of problems with certain radar systems were up, and sailors were increasingly unable to make fixes on their own.

Paul Volcker & Ray Dalio | State of the US Economy & Government (Herman J.)

Ray Dalio sat down with one of his greatest heroes, Paul Volcker, to talk about the state of the economy and U.S. government as well as learn about the principles that guided his incredible career. The pair discuss the decline of civil service and how Paul hopes to revitalize the field with The Volcker Alliance by working with universities and the government to train people effectively and efficiently and minimize the bureaucratic hurdles that deter people from pursuing government jobs.

Inside Perspective On The 2008 Financial Crisis And The Lessons Learned (hail)

I have never understood the confusion over why the Fed supported Bear and AIG, but not Lehman. To avoid future confusion, it is only necessary to remember one rule: the Fed does not give away money. It never has and never will. Not a dime.

If the failure of a firm would traumatise the financial system and that firm has adequate collateral for the Fed to lend against, then the Fed will support that firm in order to avoid an unnecessary trauma to the financial system. But if a firm does not have adequate collateral, then the Fed is not allowed to lend to it no matter the trauma that might result. Bear and AIG had adequate collateral to lend against, so the Fed supported them to avoid unnecessary trauma to the financial system. Lehman did not have adequate collateral, so we could not lend to it even though we knew Lehman’s failure would be traumatic for the financial system. It is as simple as that.

This Apple Prediction From Tim Cook May Never Come True (Thomas R.)

In fact, Q4 2015 (shortly after Cook reaffirmed the prediction) turned out to be the closest Greater China TTM revenue has gotten to catching up with U.S. TTM revenue, lagging by just over $20 billion. However, in the years since, Greater China revenue has pulled back in a big way while sales in the U.S. continue to grow.

MSNBC Panelist Says It's 'Wonderful To Watch These Trump Voters Learn' As Some Americans Complain About Smaller Tax Refunds (Thomas R.)

“Which is amazing because we’ve been telling them they’ve been cheated this entire time," SiriusXM radio host Danielle Modie-Mills said. "And we told them that that tax bill was only going to help the 1 percent. And everybody else you may see a few bucks back, but now you are not even going to see that. So, yes, these people have been cheated, and we’ve known that for a long time. So I’m so glad they’re waking up to that new reality.”

Sears' controversial ex-chairman closes deal to buy the company, keeping 425 stores open (Thomas R.)

The best possible outcome has now been realized for all stakeholders,'' Lampert said. "ESL looks forward to a new era at Sears and Kmart that builds on their proud histories, while finding new ways to innovate and grow to adapt to the forces transforming the retail industry.''

The new business will be under ESL's affiliate, Transform Holdco, and ESL said that the same warranties and other programs for shoppers will continue.

Norfolk Southern details plan to cut 3K employees, 500 locomotives by 2021 (Thomas R.)

Norfolk Southern plans to apply some of the same principles CSX has used successfully to operate its railroad on a tighter schedule with fewer cars and locomotives.

Edward Jones analyst Dan Sherman says he thinks the stock price already reflects Norfolk Southern's plans. Sherman says Norfolk Southern's success will depend on how well they implement the plan.

How Bad Is the China Slowdown? U.S. Companies Offer Some Answers (Thomas R.)

To gauge the scope of China’s economic slowdown, begin with forklifts.

The factory workhorses are a barometer of the manufacturing sector’s fitness. Changes in demand can ease or worsen concerns about China.

Landmark Rocky Hill ruling could pave the way for more courts to choose climate over coal (ezlxq1949)

Defeating a mining proposal on climate grounds involves clearing several high hurdles.

Generally speaking, the court must be convinced not only that the proposed mine would contribute to climate change, but also that this issue is relevant under the applicable law.

Alexandria Ocasio-Cortez and team attempt damage control after a fumbled Green New Deal rollout that included a line about paying Americans 'unwilling to work' (Thomas R.)

"We were essentially thinking about pensions and retirement security," he said. "E.g. economic security for a coal miner who has given 40 years of their life to building the energy infra of this country, but who may be not be willing to switch this late in his career."

Green New Deal Critics See Red (Michael S.)

Not surprisingly the reaction to the Green Deal has ranged from rapturous to downright hostile. In terms of CO2 emissions, the electricity and transportation industries are the biggest sources and the easiest targets. The transport sector divides further into cars, trucks, marine shipping and aviation. Energy executives have lately been touting their firm’s ability to ‘go completely green” by 2050. This rather leisurely pace would impose relatively little suffering at least on the part of shareholders and other energy investors. A more expeditious approach on the road to renewables may involve more accelerated write-down of fossil burning plant assets, especially those utilizing coal as a boiler fuel with its greater CO2 emissions intensity.

Bankrupt Pacific Gas & Electric Corp. Will Replace Half Of Its Board Of Directors (Thomas R.)

"While the change in the board is welcome, it's still taken way too long," said Dodd in a statement. "And it doesn't make sense to wait another day on these changes with another fire season on the horizon. Time will tell if this new leadership instills the badly needed culture of safety at PG&E."

Eating 'ultraprocessed' foods accelerates your risk of early death, study says (Thomas R.)

"Ultraprocessed foods are manufactured industrially from multiple ingredients that usually include additives used for technological and/or cosmetic purposes," wrote the authors of the study, published Monday in the journal JAMA Internal Medicine. "Ultraprocessed foods are mostly consumed in the form of snacks, desserts, or ready-to-eat or -heat meals," and their consumption "has largely increased during the past several decades."

Gold & Silver

Click to read the PM Daily Market Commentary: 2/11/19

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."

2 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4295
$22 Trillion

The Daily History of the Debt Results

Historical returns from 02/01/2019 through 02/11/2019

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
02/01/2019 16,099,195,761,574.90 5,822,434,573,331.30 21,921,630,334,906.20
02/04/2019 16,098,401,938,654.84 5,835,089,227,949.93 21,933,491,166,604.77
02/05/2019 16,113,411,511,507.07 5,843,884,218,691.76 21,957,295,730,198.83
02/06/2019 16,113,385,065,287.29 5,844,175,887,814.16 21,957,560,953,101.45
02/07/2019 16,107,965,218,290.06 5,847,096,706,640.66 21,955,061,924,930.72
02/08/2019 16,107,884,459,309.53 5,849,822,702,988.05 21,957,707,162,297.58
02/11/2019 16,157,240,020,401.40 5,855,600,871,283.92 22,012,840,891,685.32

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4295
Liability per taxpayer passes $1 million (US Debt Clock)

Scroll to the bottom:

http://www.usdebtclock.org/

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