Daily Digest

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Daily Digest 5/9 - Why We All Need The Middle Classes, Everybody Lives in Asia

Thursday, May 9, 2013, 9:25 AM

Economy

Gold Is Collapsing, Not Bottoming: Swedroe (Dana T.)

To be fair, many metal mavens have defended their gold holdings based upon the debasement of global currencies, especially the US dollar, at the hands of loose central bank policies that will ultimately breed inflation; something which thus far has not occurred.

11 Reasons Why The Federal Reserve Should Be Abolished (Phil H.)

And according to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is the one that is supposed to have the authority to "coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures". So why is the Federal Reserve doing it? Sadly, this is the way it works all over the globe today. In fact, all 187 nations that belong to the IMF have a central bank. But the truth is that there are much better alternatives. We just need to get people educated.

Germans splurge on Italian homes locals can’t afford (westcoastjan)

Foreign investment in Italian holiday properties is rising as Germans, Britons and Russians take advantage of a market where locals are struggling to purchase even a first home. Residential sales in the country dropped almost 26% last year amid a plunge in mortgage lending, almost two years of recession, and uncertainty surrounding a new tax on primary residences.

India’s new China war (westcoastjan)

The incursion comes as Beijing is on an imperialist expansion kick. It is already embroiled in territorial disputes with neighbours like Japan and the Philippines over islands, and mineral and fishing rights. It recently started cruises to to the Paracel Islands, which is claimed by Vietnam.

No Bank Deposits Will Be Spared from Confiscation (westcoastjan)

Let me use another analogy. If a cashier in a supermarket removes $100 from the till on Friday to have a frolic on Saturday, he has committed theft, even though he may replace the $100 on Monday without the knowledge of the owner / manager of the supermarket. The $100 the cashier stole on Friday is also indistinguishable from the $100 he put back in the till on Monday. In both situations – the wheat in the warehouse and the $100 dollar bill in the till, which have been unlawfully misappropriated would constitute a crime.

Gold: Who’s Selling, Who's Buying, Who's Lying (Taki T.)

Instead, gold fell. In 2008, as today, the same hands were on the scale forcing the price of gold lower. In the fall of 2007, gold had rise from $680 to $1,033, An astounding 51.9 % increase. This is exactly what the paper money cabal feared most, a concomitant rise in the price of gold during a period of extreme financial stress.

Everybody Lives in Asia (Amanda)

We had an approximately 200-year span in which an enormous amount of economic growth and geopolitical influence were located in Western Europe and its colonies in North America, but it's still the case that people mostly live in Asia. So now that all the countries inside the circle are politically independent and only a handful of them are still governed by totally insane ideologies, we should expect most of the action to happen where most of the people are. That means most of the manufacturing, but also most of the innovation and most of the popular culture. Both the producers and consumers of everything live over there. Bad government inside the circle can stall the catch-up process, but outsiders can't force Asian countries to be poorly governed.

Only 150 of 3500 U.S. Colleges Are Worth the Investment: Former Secretary of Education (Amanda)

That average student loan balance for a 25-year-old is $20,326, according to the Federal Reserve of New York. Student debt is second largest source of U.S. household debt, after only mortgages.

Sea Of Money (Ilene)

“Overall, the TBAC sees a net paydown of $21 billion from now through the end of the second quarter. That’s a far more bullish forecast than they had in February for this period when they were expecting that the Treasury would need to raise cash from net new supply of $83 billion from now until the end of the quarter. That’s a positive swing of $104 billion from the last quarterly TBAC update until the one just released at the beginning of May.”

Why we all need the middle classes (Nervous Nelly)

As for my children, I can't see how they will ever own or rent a house in London (and house price inflation also pushes up rents). Nor is it just London: if average UK house prices rise in the next three decades as they did like the last, the average house will be worth £1.2m, and my children will have to be on salaries of £300,000 to afford their own vast mortgage shackles.

Buena Vista: Meeting could tell if school will start again; district knew state overpaid it (Phil H.)

The Michigan Department of Education is withholding state aid payments for a minimum of April, May and June because the district took $401,962.51 to educate students from the Wolverine Secure Treatment Center who no longer attend the district.

Gold and Silver: Sentiment Reversal is Inevitable (GE Christenson)

When we begin the sentiment indicator discussion we will look at charts of the put/call volume ratio (options) of SPDR’s Gold Trust ETF (GLD) and iShares Silver Trust ETF (SLV), then examine Hulbert’s Gold Sentiment Index, followed by the Blees Rating, then gold’s Commercial and Non-Reportable (futures) traders positioning detailed in the most recent Commitment of Traders Report (COT) from the CFTC, and conclude with a daily gold futures price chart that includes the corresponding readings of the Ulcer Index indicator.

Downloads for 3D-printed Liberator gun reach 100,000 (westcoastjan)

"I plan to introduce legislation that will ensure public safety and stop the manufacturing of guns that are invisible to metal detectors and that can be easily made without a background check," he said in a statement.

According to Defense Distributed, most of the 100,000 downloads have been in the US, followed by Spain, Brazil, Germany and the UK.

Canadian Government Establishes Two-Tier Approach for Trade Talks: Insiders and Everyone Else (westcoastjan)

While the government tries to stop potential leaks, the newly obtained government documents reveal that the Department of Foreign Affairs and International Trade has established a secret insider group with some companies and industry associations granted access to consultations as well as opportunities to learn more about the agreement and Canada's negotiating position.

Shell to develop Stones deepwater oil field in Gulf of Mexico (Ivo M.)

As part of the Stones project, Shell will construct a floating production, storage, and offloading vessel and subsea infrastructure. The field is located in waters 9,500 feet (2,896 meters) deep about 200 miles southwest of New Orleans, Louisiana.

JP Morgan: A New Type of Dirty Energy (James S.)

After all, it’s not the first time this has happened to California: The state’s 2000-2001 energy crisis and ensuing blackouts were the result of market manipulation for which it is still attempting to get its money back. That crisis was on Enron Corp., which manipulated the energy market and hid the evidence in some convenient accounting loopholes. It filed for bankruptcy in December 2001, its CEO, Jeff Skilling , was convicted of fraud in 2006 and sentenced to 24 years in prison. It was this scandal that empowered FERC to take more serious action against market manipulators.

5.09.13: Canadian Tire follows Loblaw’s lead with real estate spin-off (westcoastjan)

Statistics Canada says its price index for new houses rose 0.1% in March, after a 0.2% increase in February. The agency says month-over-month gains in the index have ranged from 0.1% to 0.3% for the last 12 months. For the second month in a row, the largest monthly advance occurred in Regina, where prices were up 0.7%. However, Calgary, where prices were up 0.3%, was the top overall contributor to the March advance.

Gold & Silver

Click to read the Gold & Silver Digest: 5/8/13

Provided daily by the Peak Prosperity Gold & Silver Group

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5 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Fed Balance Sheet Rises Above $3.3 Trillion, Again a Record

"The Federal Reserve's balance sheet expanded again this week, hitting a new record as the central bank continues its bond-buying program.

The Fed's asset holdings in the week ended Wednesday increaaed by $7.42 billion from a week earlier to $3.325 trillion, the central bank said in a weekly report released Thursday.

Holdings of U.S. Treasury securities increased by $6.35 billion in the past week to $1.854 trillion while mortgage-backed securities rose by $17 million to $1.122 trillion.

The Fed is buying an average of $85 billion a month in Treasury and mortgage bonds as part of a program to stimulate economic growth. Central bank officials last week affirmed that pace and said they could increase or decrease purchases depending on inflation and the jobs market.

The Fed's portfolio has more than tripled since the financial crisis thanks to programs intended to keep interest rates low. "

Macs's picture
Macs
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Posts: 40
Perhaps we DON'T 'need' the Middle Class...

For balance: http://www.guardian.co.uk/commentisfree/2013/may/09/working-class-dont-need-middle-class

Though this is a piece written in response to the one linked to above, it seems the two writers are simply talking past each other. Neither engages with the 3E realities or the implications of contracting economies and both seem to be merely the cry-baby wailings of sectoral interests. What struck me most of all was the thought that most methods by which the 'non-elites' of society have ever improved their lot have all been de-legitimised by the surveillance/security/corporate state. This faux debate between the nonWorking Class and the Muddled Class serves neither, it just echoes the jacked-up lib-con polarisation and paralysis we can see in other nations.

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5570
Poor framing
Macs wrote:

For balance: http://www.guardian.co.uk/commentisfree/2013/may/09/working-class-dont-need-middle-class

Though this is a piece written in response to the one linked to above, it seems the two writers are simply talking past each other. Neither engages with the 3E realities or the implications of contracting economies and both seem to be merely the cry-baby wailings of sectoral interests. What struck me most of all was the thought that most methods by which the 'non-elites' of society have ever improved their lot have all been de-legitimised by the surveillance/security/corporate state. This faux debate between the nonWorking Class and the Muddled Class serves neither, it just echoes the jacked-up lib-con polarisation and paralysis we can see in other nations.

Indeed it is a faux debate.  The most important thing when trying to push a point of view is to frame the debate in your own terms.

By framing the gigantic wealth transfer that is underway as somehow a contest between two classes that  are being abused by the system these writers have adopted the framing of the ultimate beneficiaries of the the wealth transfer.

Charitably, I don't think the writers are even aware that they've done this, so they are not being malicious in their intent.  I think they honestly and completely identify with their arguments.  Perhaps we should look into the Stockholm syndrome for clues?

Macs's picture
Macs
Status: Bronze Member (Offline)
Joined: May 27 2011
Posts: 40
Media = Stockholm Central
cmartenson wrote:

Charitably, I don't think the writers are even aware that they've done this, so they are not being malicious in their intent.  I think they honestly and completely identify with their arguments.  Perhaps we should look into the Stockholm syndrome for clues?

Quite agree - both are beholden to their captors. The corporate media is very much subsumed into the hologram, acting as cheerleaders in the eternal game of divide and rule. It's unfortunate (to put it mildly) that media has such a stranglehold monopoly on the attention of the public - people seem unable to frame questions for themselves nowadays. The general process is to decide which 'team' to support then take the appropriate bundle of pre-packaged ideas from the shelf. So much psychological energy is invested in choosing teams that no-one notices we are given no choice over which game to play.

It's an uphill struggle to convince people to play a different game, but I appreciate PP.com being here to help steer some folks towards that end.

 

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