Daily Digest

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Daily Digest 10/13 - Threat Of 2013 Recession "Alarmingly High," Collapse Of The Current Monetary System?

Saturday, October 13, 2012, 12:42 PM


BlackRock CEO Laurence D. Fink Redefines Financial Education: Convincing Young People to Ignore Inconvenient Truths About Markets (Jaime)

I too advocate educating young people about finance and economics. But my conception of “education” involves teaching people about those markets so that they are empowered to make appropriate investment decisions. One thing we have all learned from the crisis is that it is imperative that individuals living in a capitalist economy learn how markets function. This includes understanding risk and return, conflicts of interest, and how warped incentive systems can cause bad behavior. It also includes understanding how rent-seeking industries use the lobby system to write legislation that benefits themselves at the expense of everyone else in the marketplace. That is education – actually informing people of facts, and then arming them with analytical tools that enable them to make reasoned decisions about their own risk and return options.

The Need To Prepare For The “Alarmingly High” Threat Of Recession 2013 (David B.)

IMF Chief Economist Oliver Blanchard said, “Low growth and uncertainty in advanced economies are affecting emerging market and developing economies through both trade and financial channels, adding to homegrown weakness.”

How the “news” ruins your health (Coley H.)

There’s little question that chronic stress eventually breaks down our self-control. We feel intensely stressed and we don’t know why, so we seek to lessen that stress using the only tools (all of them external) that we believe are at our disposal: food, pharmaceuticals, shopping, drugs, alcohol, etc.

Collapse Of The Current Monetary System? (Arthur Robey)

Gold’s growth ahead far greater than what’s behind

– Just how smart is the average investor?

– Ian McAvity Dow/Gold Target: One to One

– Monetary Sin Of the West


Stephen Leeb on the missing presidential debate on ‘trickle-up’ economics and the energy war (Arthur Robey)

Welcome to Capital Account. The global rate-cutting race continues, with two central banks lowering their interest rates in the past 24 hours. The Central Bank of Brazil and the Central Bank of South Korea lowered rates by a quarter of a percentage point, while China continued its easing policy to offset tight liquidity conditions. We talk to Dr. Stephen Leeb, chairman of Leeb Capital Management, about the global impact of loose monetary policy on commodity prices.

Scientists say billions required to meet conservation targets (westcoastjan)

"Reducing the extinction threat for all species would cost $5bn a year, but establishing and maintaining a comprehensive global network of protected areas would cost substantially more," said Mr McCarthy.

"It could be up to $76bn annually to meet both targets."

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More 3E related Links, Resources and Cartoons

http://3es.weebly.com/ We are the 99% Edition


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Arthur Robey
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Pushing a Barrow.

I have just got off the webinar with Prof Steve Keen. Mish could not make it. Our thoughts are with you Mish.

What I got out of it was that it is in the Bankers' interest to inflate bubbles. The more money they lend the more money they make.

Professor Keen takes the Limits to Growth models seriously but the Economic models are too primitive to intigrate with Limits to growth models. (Guess who was a shill for the Limits to Growth?) The good Professor believes that Authoritarian political systems will be more competant to handle de-growth. 

Prof Steve Keen is trying to develop a systems dynamics approach to his models. So far his inadequate model has consumed 600 hours of programming time.  A lot more work needs to be done on it.

Professor Keen is begining to get traction in various obscure economies. Turkey springs to mind, there were others. Most however are reactionary, as is to be expected of a Left brain dominated society.

Gold and silver are not a store of wealth (whatever that means) They are a measure of distrust in the financial system. I guess that the Main Stream Media's propaganda machine can only push the barrow so far before the wheel falls off.

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Arthur Robey
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Further considerations

And on the Debt Jubilee, $20T (Big ones) Steve Keen suggests a trial injection to see what happens. 

My comment: That is one huge preterbation. It will really rattle the economy. Better to inject this as an analogue function. (Just ease it in there over time.)

Prof SK noted that without any manufacturing capacity any injection would be spent importing products. It will be better to give the manufacturers the money, so that they can grow the economy and employ more people.

My comment:

  1.  Quantum leaps in robotics will supress employment. (I am not a Ludite. Give the the Wages, You can have the Work.)
  2. The Limits to Growth Models is quite clear on this issue. Capital will have to move from industry to Agriculture because the per capita calorie intake will fall below what sustains life. (Famine).
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Arthur Robey
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Oh. and another thing. Superannuation.

Prof Steve Keen says Superannuation is one big swindle. He showed that returns would have been better if we were forced to save the money in the bank.

My Comment: So my Fund manager hasn't got a Hi Frequency Algo? What is he thinking!

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