Daily Digest

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Daily Digest 9/12 - The U.S. Debt Ceiling Debate, How Electricity Became a Luxury Good

Thursday, September 12, 2013, 9:46 AM


Why POTUS Allowed Bailouts without Indictments (adam)

It now appears to many citizens as if the chief goal of most of Congress is to be reelected, and that means they’re more interested in campaign contributions than in representing the interests of their constituents and the country. As for upholding the Constitution, it is only a priority when it coincides with the special interests they seem to represent.

16 Major Firms May Have Received Early Data From Thomson Reuters (westcoastjan)

Then there was a third group of "ultra-low latency" subscribers – algorithmic traders who use computer programs to make millions of calculations per second – who would get the data two seconds early, at 9:54:58 a.m.

TANSTAAFL, Butter, and Silver (GE Christenson)

Military spending seems relevant as Congress prepares to vote on an attack on Syria. Casey Research published the following chart of military spending over the past 70 years. Their analysis, based on White House OMB data, is consistent with more detailed data I found from Data360 which lists spending by year.

The U.S. Debt Ceiling Debate In The Light Of Monetary Fundamentals (Taki T.)

Every bank note has [the Central Bank] printed on it. But the Bank of England only creates 3% of all the money in the UK. Where does the other 97% come from? It’s just numbers in a computer system. It’s electronic money created by high street banks. When you borrow money, it doesn’t come from somebody else’s savings. The amount you borrow is actually brand new money, created by the push of a button.

Martin Wolf at the Financial Times explains: “The essence of the contemporary monetary system is the creation of money, out of nothing, by private banks’ often foolish lending.”

Gem-encrusted mooncakes, corruption, and the law (westcoastjan)

Recently, we have seen the most high-profile dismissal so far under the new Chinese leaders: Jiang Jiemin, the head of the body that oversees all of China's large state-owned enterprises, known as SASAC (State-owned Assets Supervision and Administration Commission). And of course, Bo Xilai, who is awaiting his verdict.

Polish Bail-In Changes Everything (westcoastjan)

Indeed, this is a point which I made in subtle, implicit terms in a previous commentary, The One Bank – but where I lacked the space to delve into this critical distinction explicitly. When I wrote about this “single, banking monopoly”; it was scrupulously noted that this shadowy entity (or “super-entity” in the words of the Swiss researchers) controlled rather than “owned” 40% of the global economy.

Pushed to the limit as a banking intern (westcoastjan)

I ended up doing an all-nighter in my first week as an intern, which is when you start work at nine, you stay until five or six the next morning, you go home, have a quick shower and then head back into the office and continue working.

And I think the really bizarre thing about that is, as an intern, you're almost functionally useless to your desk. You're not really adding anything, you're not really doing anything, you're just one more warm body.

Why Are So Many Emerging Markets Taking Protests to the Streets? (westcoastjan)

Even if growth returns, it will likely prove to be a partial elixir. Protests have engendered a general loss of innocence that has dimmed the halo hovering over emerging markets. Mass protests are changing risk perceptions, and yields on sovereign bonds could be impacted. New policies aimed at mollifying tensions are often costly, hurting sovereign creditworthiness. While most Canadian firms have not seen their operations impacted by protests, vandalism and sporadic violence in city centers are more present, elevating general interest in political risk insurance.


Undercover at the Tar Sands: What It's Really Like Working for Big Oil (westcoastjan)

The camps serving Shell's Albian Sands project and Imperial Oil's Kearl worksite are among the biggest. Shell's complex – two camps collectively known as "the Village" – is home to about 2,500 employees. Meanwhile, Imperial Oil's Wapasu camp houses more than 7,300. It even has its own airstrip to accommodate workers as they fly in and out on chartered 747s.

Scientists Discover New Mechanism to Generate More Energy from Sunlight (James B.)

“The new work centers on plasmonic nanostructures, specifically, materials fabricated from gold particles and light-sensitive molecules of porphyin, of precise sizes and arranged in specific patterns. Plasmons, or a collective oscillation of electrons, can be excited in these systems by optical radiation and induce an electrical current that can move in a pattern determined by the size and layout of the gold particles, as well as the electrical properties of the surrounding environment.”

Germany's Energy Poverty: How Electricity Became a Luxury Good (guardia)

Germany's agressive and reckless expansion of wind and solar power has come with a hefty pricetag for consumers, and the costs often fall disproportionately on the poor. Government advisors are calling for a completely new start.

One Weird Trick To Fix Farms Forever (westcoastjan)

But Brandt's not trying to go organic—he prefers the flexibility of being able to use conventional inputs in a pinch. He refuses, however, to compromise on one thing: tilling. Brandt never, ever tills his soil. Ripping the soil up with steel blades creates a nice, clean, weed-free bed for seeds, but it also disturbs soil microbiota and leaves dirt vulnerable to erosion. The promise of no-till, cover-crop farming is that it not only can reduce agrichemical use, but also help keep the heartland churning out food—even as extreme weather events like drought and floods become ever more common.

Gold & Silver

Click to read the Gold & Silver Digest: 9/11/13

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."


saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4282
Tall's picture
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
Fixing Farms

Absolutely!  "The soil resource all over the world has become degraded. //

Degraded soil results in much less water stored in the soil profile. For every 1 percent increase in organic matter, the soil can hold an additional 20,000 gallons of water per acre! Just think of the flooding that can be alleviated if this water is stored in the soil profile versus running off into streams and rivers.

And as organic matter decreases, the nutrients in the soil also decrease. It is my belief that this has led to a dramatic decrease in the nutrient density of the foods produced by those soils. We have a human health crisis in this country due in large part to our degraded soils."



KugsCheese's picture
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1471
Mark to Market Suspension Hiding Huge Losses


Finally an insider states that M2M is still suspended for bank assets related to real estate and other credit instruments.  But banks get bigger and bigger.

The FED plan is to allow banks to increase lending spread from ~2% to 4-6% in order to quietly wash away the these hidden losses over time. 

jonesb.mta's picture
Status: Silver Member (Offline)
Joined: Jun 11 2008
Posts: 126
First African American President

"It was better to let a lot of people get away scot free than to have the first African American president take on the establishment while the country was deeply divided and he needed agreement on big things like ending wars, health care, Supreme Court nominees (and LGBT rights)."

BIG THINGS!!! If that first African American president were Walter Williams the banksters would have gone to jail and the taxpayers wouldn't have been robbed to bail the bankster scum out. What a crock!! They call anyone who doesn't agree with Obama a racist and then they try to use this "first African American president" BS to justify bailing the bankster scum out.

jonesb.mta's picture
Status: Silver Member (Offline)
Joined: Jun 11 2008
Posts: 126
Fixing Farms

When my wife and I first married we rented a farmhouse south of Minneapolis. The farmer we rented from worked a full time job and used chemical fertlizer on his crops, the farmer next door spread manure on his fields every year. Things looked identical the first year we were there but the second year we had a drought and our landlords corn never got above knee high, but the next door neighbor's corn looked just as good in the drought year as it had the year before.

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