Daily Digest

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Daily Digest 4/5 - The Tough Politics Of Environment, Japan's Debt Crisis Visualized

Friday, April 5, 2013, 10:05 AM

Economy

Is It Beginning? Biggest JGB Price Collapse In Over 10 Years Triggers TSE Circuit Breakers (Time2Help)

Just over 4 hours ago we discussed the stunning collapse in 10Y Japanese bond yields. Since then - things have taken a very dramatic turn for the worse for bonds. 10Y JGB yields have exploded higher. The move from 32bps to 65bps triggered circuit breakers on the Tokyo Stock Exchange in JGB Futures trading as JGB prices plunged by their largest amount since September 2002. We can only imagine there is liquidations galore occurring given the massive outsize moves we are seeing in Japanese bonds, stocks, FX, swaps, and CDS. Did the BoJ just lose control?

Canada sheds 54,500 jobs, the worst loss in more than four years (westcoastjan)

Statistics Canada said 54, 500 fewer people were working last month, nearly all full-time workers and mainly in the private sector. That more than reversed the 50,700 job gain in February.

Europe to shut 10 refineries as profits tumble (westcoastjan)

The losses are being compounded by the configuration of Europe’s refineries. Most of the plants, more than 50% of which were constructed in the wake of World War II, are geared toward gasoline production, though diesel now accounts for 75% of the region’s motor fuel needs.

Why Go After the Depositors To Save 'the Taxpayers?' (Thomas C.)

The public does not see what is going on because the financial system is opaque. But wealthy insiders often know what is going on in their interconnected world of money. Remember the stories of the uber-wealthy who managed to get their funds out of MF Global before it collapsed? I seem to recall those friends of the people, the Koch Brothers, being mentioned.

Moody’s analysis contemplates 44% drop in Canadian housing prices (Nervous Nelly)

Canada joins Spain, as well as the United Kingdom and Australia, in the ratings agency’s assessment of countries where growth in housing prices over the past 10 years has driven their values away from sustainable market fundamentals and into “overheated” territory.

The First Crack In The Bond Market Is A Fact (Taki T.)

In Cyprus, for the very first time counterparties have been wiped out. Once this gets rolling, it is able to start an avalanche. When people will look back to history there will be two moments that mark the big financial and banking collapse. The first one is late June of 2007 when two Bear Stearns hedge funds collapsed. The second one will be March of 2013 when Cypriot banks closed in an unprecedented bank holiday, and for the first time counterparties have been wiped out. It is almost a sure thing that the latter will cause a cascading effect because all banks are linked to each other via bonds. As the banking system has become so complex lately (to the extent that it is almost not possible to understand it anymore), the cascade will hit pretty hard and fast.

Japan eyeing billions in LNG investments in Western Canada (westcoastjan)

“The pipelines and export terminals are imperative. Therefore if it is needed, we are going to bring some capital to cover the cost of the infrastructure.”

ABN has no gold left for its clients (Ivo M.)

So far, the people who believe that there is a big cartel suppressing the price of gold using the “paper gold” market have been widely regarded as conspiracy theorists that shouldn’t be taken seriously. The “paper gold manipulation theory” predicts that the world’s financial institutions lack the physical gold required to keep the price suppressed and sooner or later the powers that be will resort to gold confiscation.

Japan's Debt Problem Visualized (Ivo M.)

A short visual explanation of Japan's debt problem by Addogram.

Energy

Is Tunisia the New Hot Spot for Energy Investors? Interview with John Nelson (James S.)

John Nelson is CEO of Canadian-listed Africa Hydrocarbons Inc. (NFK). A veteran geologist, Nelson spent much of his career in East and Central Africa—much of it for Mobil Oil--studying regional and mapping rift basins at a time when no one else was shopping around in Africa’s interior. Over his 27 years in the industry, Nelson has also had junior E & P experience, recently serving as CEO for Lion Energy Corp., which was bought out by Africa Oil Corp 'AOI' in 2011 as a way for AOI to gain access to their impressive Kenyan land package that John had put together.

Environment

Obama Tells Donors of Tough Politics of Environment (Michael W.)

“You may be concerned about the temperature of the planet, but it’s probably not rising to your No. 1 concern,” Mr. Obama said. “And if people think, well, that’s shortsighted, that’s what happens when you’re struggling to get by.”

Breakthrough in hydrogen fuel production could revolutionize alternative energy market (Ben Johnson)

Zhang and his team have succeeded in using xylose, the most abundant simple plant sugar, to produce a large quantity of hydrogen that previously was attainable only in theory. Zhang’s method can be performed using any source of biomass.

The discovery is a featured editor’s choice in an online version of the chemistry journal Angewandte Chemie, International Edition.

This new environmentally friendly method of producing hydrogen utilizes renewable natural resources, releases almost no greenhouse gasses, and does not require costly or heavy metals. Previous methods to produce hydrogen are expensive and create greenhouse gases.

Fish deformities linked to oil pollution in U.S. and Alberta (Tall)

Schindler cited a number of studies that looked into the effects of oil and chemical contamination on fish after the Exxon Valdez spill in Alaska and the Deepwater Horizon accident in the Gulf of Mexico, as well as in the lower Athabasca River. He included photos of fish from the Athabasca with two tails, bulging eyeballs and gaping sores.

Gold & Silver

Click to read the Gold & Silver Digest: 4/3/13

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4062
Fed Balance Sheet Expands in Latest Week

Fed Balance Sheet Expands in Latest Week

littlefeatfan's picture
littlefeatfan
Status: Silver Member (Offline)
Joined: Jul 20 2009
Posts: 141
More 3E related Links, Resources and Cartoons

http://3es.weebly.com/ useful resource? give a thumbs up

Nate's picture
Nate
Status: Platinum Member (Offline)
Joined: May 5 2009
Posts: 573
Obama's proposed budget

Another warning shot.  A proposal to tax tax-preferred accounts (like IRA's) at or above $3 million in value in 2013.  Think they would ever dip below this threshold?

 

http://finance.yahoo.com/news/barack-obamas-budget-contain-massive-143824832.html

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4062
Discouraged job seekers behind shrinking labor force

"The number of working-age Americans counted as part of the labor force -- either with a job or looking for one -- tumbled by 496,000 in March, the biggest fall since December 2009, the Labor Department said on Friday. That pushed the so-called workforce participation rate to a 34-year low of 63.3 percent."

 

2013-03: 63.3  Percent    Last 5 Observations

2013-02:  63.5  

2013-01:  63.6  

2012-12:  63.6  

2012-11:  63.6  

 

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