Daily Digest

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Daily Digest 9/17 - A New Gold Standard, Cyclical Or Stuctural Hyperinflation?

Monday, September 17, 2012, 10:23 AM

Economy

Gold Sale Banned In Argentina (Thomas C.)

Remember those debates about gold being a currency or not? Well, that debate is settled for the Argentine government: Yes, it is a currency. No, you cannot buy it unless you travel to a country that uses it. You may be wondering “But no country uses gold as currency….” Ok, so you cant buy it then. Genius. This is how they explain the new ban, given that after the USD ban people ran to gold to protect themselves, the sale of gold going up 400%. Little by little, they have closed all loopholes and windows.

A New Gold Standard? (dkyates)

The only way gold will return as money is when fiat money destroys itself, which at the current rate is a matter of perhaps no more than a year or two. But let us generously assume for a moment that a gold standard is seriously considered. In that case, people will argue that there is not enough gold. They are wrong: it is a matter of price because gold is infinitely divisible. They will argue not being able to expand the quantity of gold faster than current rates of extraction is deflationary. It is true that in the long run prices expressed in gold will fall; but it is an error to assume that falling prices are a deterrent to consumption, as anyone in the consumer electronics industry will tell you. The origin of this mistake comes I believe from a reductio ad absurdum of the economic effects of a sharp reduction in the money quantity.

Hyperinflation Watch: Cyclical or Structural? (dkyates)

Consequently, the deficit is not shrinking, which confirms a point I have made repeatedly for two years. The US is confronting a structural problem. It is not a cyclical one that will go away with improved economic activity. Importantly, the failure to address this problem will eventually lead to hyperinflation and the destruction of the dollar.

Mr. Bernanke sees it differently. Here is what he said in his well-publicized Jackson Hole speech on August 31st.

Gus Speth: ‘Ultimate insider’ goes radical (nancy_lnl)

Invoking the moral legacy of the civil rights movement, this uber-environmentalist has now written a book not about climate and the environment (though the climate crisis looms large in its pages), but about America, the path we’re on, and the path we could be on — to a far better and safer future — if enough of us are willing to fight for it.

US withdraws diplomats from Tunisia and Sudan (jdargis)

It said Americans who chose to remain in Tunisia should use extreme caution and avoid demonstrations. On Friday, protesters climbed the walls into the US embassy in Tunis, torching cars, attacking the entrance building and setting fire to a gym and a neighbouring American school.

In Sudan, the warning said that while the Sudanese government had taken steps to limit the activities of terrorist groups, some remain and have threatened to attack western interests.

Earnings in United States Are Beginning to Feel a Pinch (jdargis)

After reducing spending and eliminating jobs during the recession, American companies reaped huge gains by keeping expenses down and putting off aggressively hiring new workers as growth slowly returned. Strong profits have also propelled the stock market higher, reassuring investors whose other assets, like real estate, have declined in value over the same period.

Gazprom Tilting Eastward (James S.)

"I would like to emphasize that the Japanese market has an advantageous size and is considered a top-priority in the Far East," said Alexei Miller, Gazprom's top executive, in a statement.

Using a Fusion Fission Hybrid Reactor to Burn Nuclear Waste (James S.)

Nuclear power is actually the safest form of power generation in existence, including all forms of renewables and hydrocarbons. Scientists and engineers, meanwhile, are working hard to make nuclear energy even safer than it already is.

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4060
suesullivan's picture
suesullivan
Status: Gold Member (Offline)
Joined: Oct 6 2008
Posts: 305
Paypal suspends domestic transactions in Argentina

http://www.bbc.co.uk/news/technology-19605499
 

Last year the Argentine government announced restrictions on the purchase of US dollars.

It has led to an increase in currency sales on the black market - but Paypal's exchange rates are better.

Locals were setting up two accounts under different email addresses and transferring money between the two, exchanging local currency pesos for dollars in the process.

Under the new rules only one account per person can be registered within Argentina.

The government's rules were designed to curb the flight of savings from the country and make the economy less dependent on the US dollar.

When the news was announced, finance minister Amado Boudou told the BBC it was "an important measure to combat tax evasion and money laundering".

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
The sensor that could save (plant) lives

Even me should be able to grow my own plants with this gadget ;-)

 

The sensor, which you stick into the soil of your household plants, tracks moisture, temperature, and light and sends the information over to Koubachi Plant Care Engine on your computer. The system provides you with detailed instructions on what you’re doing terribly wrong with your plant-child and how you’re ruining its life. It will judge, I mean, notify you if the plant needs watering, temperature adjustment, positioning adjustment, fertilizing, or misting. It's fairly versitile, you can use it in almost any type of soil and with any plant. After one week, you can remove the sensor and the program will give you directions based on the information it gathered during the week.

 

http://www.ecnmag.com/articles/2012/09/sensor-could-save-plant-lives?et_cid=2852776&et_rid=207577430&linkid=http%3a%2f%2fwww.ecnmag.com%2farticles%2f2012%2f09%2fsensor-could-save-plant-lives

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2765

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