Daily Digest

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Daily Digest 9/20 - Obama Reinstates NDAA Military Detention Provision, Can The Fed Survive After QE3?

Thursday, September 20, 2012, 10:11 AM

Economy

We are speaking about trillions of carats': Russia reveals vast diamond source under 62-MILE-WIDE asteroid crater which could supply world markets for next 3,000 years (adam)

The official news agency, ITAR-Tass, said the diamonds at the site, known as Popigai Astroblem, are 'twice as hard' as the usual gemstones, making them ideal for industrial and scientific uses.

According to The Christian Science Monitor, the institute's director, Nikolai Pokhilenko, told the agency that the new source would cause a radical shake-up in the precious stones market.

Totalitarian State Wins After All: Obama Reinstates NDAA Military Detention Provision (safewrite)

Russia Today reports, a lone appeals judge bowed down to the Obama administration late Monday and reauthorized the White House's ability to indefinitely detain American citizens without charge or due process. On Monday, the US Justice Department asked for an emergency stay on the previous Chris Hedges'-driven order, and hours later US Court of Appeals for the Second Circuit Judge Raymond Lohier agreed to intervene and place a hold on the injunction. The stay will remain in effect until at least September 28, when a three-judge appeals court panel is expected to begin addressing the issue.

Beijing hints at bond attack on Japan (adam)

Fitch Ratings threatened to downgrade a clutch of Japanese exporters if the clash drags on. It warned that Nissan is heavily at risk with 26pc of its global car sales in China, followed by Honda with 20pc. Sharp and Panasonic both have major exposure. Japan’s exports to China were $74bn in the first half of this year. Bilateral trade reached $345bn last year.

Tungsten-Filled 10 Oz Gold Bar Found In The Middle Of Manhattan's Jewelry District (Thomas C.)

And cue panic on the realization that virtually any gold bar in the world, not just those in Europe and Australia, which have already had close encounters with Tungsten substitutes, but also New York may be hollowed out and have a real worth of a few dollars max. Which, sadly, is fitting considering our main story from last night was the realization that an unknown amount of Chinese iron ore had either never existed or had simply vaporized, and was no longer serving as the secured collateral to various liabilities circulating in the electronic ether. After all, only the most naive out there could conceive of gold being sacrosanct when every other asset class is being diluted to infinity by a regime that has long since run out of money.

Superweeds pose GM-resistant challenge for farmers (westcoastjan)

GM essentially means that crops are protected from one type of chemical weedkiller. But because farmers have become over-reliant on this one product, weeds with natural resistance have spread rapidly and have strangled production on millions of acres.

Scientists say the solution to the widespread resistance problem is a new type of GM that uses a powerful weedkiller that was once part of Agent Orange, the defoliant widely used during the Vietnam war.

Political risk returns to the financial markets (westcoastjan)

Examples of the latter were seen in the displays of public anger at austerity measures in Madrid, Lisbon and Athens, as well as a slow but steady rise of demand for action by the labour unions in the US and Europe.

Chinese cyber attacks hit Japan over islands dispute (westcoastjan)

On Sunday afternoon, when the attack was most intense, 95 per cent of traffic to the bureau’s website was from China, Kyodo said, citing minister Tatsuo Kawabata.

Beijing and Tokyo have been locked in an intensifying spat over the uninhabited but strategically important outcrops in the East China Sea.

A Rare Look at Why The Government Won't Fight Wall Street (Thomas C.)

Kaufman for some time was a go-to guy in the Senate for reform activists and reporters who wanted to find out what was really going on with corruption issues. He was a leader in a number of areas, attempting to push through (often simple) fixes to issues like high-frequency trading (his advocacy here looked prescient after the "flash crash" of 2010), naked short-selling, and, perhaps most importantly, the Too-Big-To-Fail issue. What’s fascinating about Connaughton’s book is that we now get to hear a behind-the-scenes account of who exactly was knocking down simple reform ideas, how they were knocked down, and in some cases we even find out why good ideas were rejected, although some element of mystery certainly remains here.

CRS report: number of able-bodied adults on food stamps doubled after Obama suspended work requirement (Thomas C.)

Under the rule adopted in 1996, food stamps for able-bodied adults without dependents were limited to three months in a 36-month period unless the participant in the program “works at least 20 hours a week; participates in an employment and training program for at least 20 hours per week; or participates in a (Supplemental Nutrition Assistance Program) ‘workfare’ program for at least 20 hours per week.”

Credibility Trap: Why Wall Street Always Wins (adam)

I am deeply pessimistic that corporate America will do the right thing for the country as Connaughton suggests, even to save capitalism from themselves. Big business has never stood for the people, and rarely taken the long view. They are dead souls of the status quo. They are the Pax Romana, purveyors of desolation.

Monsanto Roundup weedkiller and GM maize implicated in ‘shocking’ new cancer study (VeganD)

Up to half the male rats and 70% of females died prematurely, compared with only 30% and 20% in the control group. Across both sexes the researchers found that rats fed Roundup in their water or NK603 developed two to three times more large tumours than the control group. By the beginning of the 24th month, 50-80% of females in all treated groups had developed large tumours, with up to three per animal.

Can the Fed Survive After QE3? (James S.)

Of course, the Fed is not a commercial bank. The unique nature of its assets and liabilities allows it to operate safely with just a sliver of capital. Normally, the Fed’s assets have consisted largely of short-term Treasury securities, which are as close to risk-free as you can get. As for liabilities, as recently as the end of 2007, 90% of them consisted of Federal Reserve currency. Currency is a truly marvelous kind of liability, since it is neither interest-bearing nor redeemable. Together, those assets and liabilities generate a healthy net interest income, most of which it turns back to the Treasury. With a balance sheet like that, who needs capital?

Fresh Relief for Baltimore's Food Deserts (Sonya P.)

Baltimore has pioneered another solution: bringing a virtual grocery store to those living in food deserts. The program, called Baltimarket, allows shoppers to order groceries online from home or attend sessions at a local public library where they can receive help ordering. A delivery arrives later in the week, with no fee for residents. “There’s a barrier for people to get groceries,” says Laura Fox, Baltimarket’s coordinator. Residents who don’t have cars or live near a supermarket may have to pay hacks, or unlicensed taxis, to take them to and from a store, she says. “If it costs you $15 to go to the grocery store, how much are you going to go?”

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4 Comments

thc0655's picture
thc0655
Status: Diamond Member (Online)
Joined: Apr 27 2010
Posts: 1512
Tidbits

Catherine Austin Fitts interprets QE3 as the Fed's way to cover up all the fraud in the mortgage crisis and buy our way out:  http://www.thedailybell.com/4323/Catherine-Austin-Fitts-QE3-Pay-Attention-If-You-Are-in-the-Real-Estate-Market

Daniel Ariely's fascinating presentation on the psychology of cheating and lying, with applications to the financial crisis and the associated frauds:  http://www.zerohedge.com/news/primer-honesty-are-you-better-liar-chairman

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4060
MarkM's picture
MarkM
Status: Platinum Member (Offline)
Joined: Jul 22 2008
Posts: 837
For anyone still

holding the naive notion that the federal government is not intentionally screwing the citizenry and that we are not truly an oligarchy.

Denninger today. 

http://market-ticker.org/akcs-www?post=211770

 

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2236
Safewrite, thanks for the

Safewrite, thanks for the article you posted on DD.  I had read the earlier article on ZH, about the judge who had stopped the gov't from being able to indefinitely detain a US citizen without a charge or due process .  -I was so elated to think that the good-guys actually won one!  Now this.  How disappointing!  I hope the judges at the next hearing care more about the principles we were raised to believe our country stood for.

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