Daily Digest

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Daily Digest 10/9 - Shutdown Costs $160M Per Day, T-Bill Tensions Mount

Wednesday, October 9, 2013, 10:40 AM

Economy

Shutdown Costs at $1.6 Billion With $160 Million Each Day

The shutdown cost $1.6 billion last week in lost economic output, according to IHS Inc. (IHS), a Lexington, Massachusetts-based global market-research firm. As the showdown enters its eighth day, the office closures are now draining an average of $160 million each workday from the $15.7 trillion economy.

Chart of the Day: T-Bill Tensions Mount

T-bills maturing around Oct. 31 declined in price on Tuesday, sending the one-month yield as high as 0.322%, the highest since 2008. The yield started the month at 0.02%. Worries about the government shutdown delaying an agreement to lift the debt ceiling is keeping conservative money managers away from short-term bills, as they worry that the U.S.’s inability to borrow more money may delay payments on debt due in the coming month.

New Air Force Planes Go Directly to ‘Boneyard’

New cargo planes on order for the U.S. Air Force are being delivered straight into storage in the Arizona desert because the military has no use for them, a Dayton Daily News investigation found. A dozen nearly new C-27J Spartans have already been taken out of the US Air National Guard service and shipped to the so-called ‘boneyard’ at Davis-Monthan Air Force Base in Tucson. Five more are expected to be built by April 2014, all of which are headed to the boneyard unless another use for them is found.

IMF cuts US growth outlook, warns on budget paralysis

The Fund, in its new World Economic Outlook, projected the US economy would grow 1.6 percent this year and accelerate to 2.6 percent in 2014, down respectively 0.1 and 0.2 percentage points from its July forecast.

Will Puerto Rico’s Debt Crisis Lead to a Bailout?

Kayne Saybrook Municipal Opportunity Funds’ Jon Schotz discusses the debt situation in Puerto Rico. He speaks with Erik Schatzker and Stephanie Ruhle on Bloomberg Television's "Market Makers."

Puerto Rico saddled with over $70 billion in debt

The island country has more than 600 muni bonds outstanding and within the next year $2.8 billion is due, reports CNBC's Michele Caruso-Cabrera.

Euro zone bonds wilt as U.S. deadlock drags on, Portugal bucks trend

Spanish and Italian bond yields rose on Tuesday along with almost all other European sovereigns, as the U.S. budget stalemate and looming debt deadline continued to weigh on bond markets worldwide.

Holders of U.S. government debt draw up contingency plans for default

Banks, funds and asset management firms holding U.S. government bonds are drawing up contingency plans on how to deal with potentially the most cataclysmic financial and economic event of all - a default by the United States.

Shutdown may cause food pantries to shut their doors (NY)

Monday marks day seven of the partial government shutdown. Moskowitz says come the end of October, they may not have the money to keep the pantry open."Obviously scary," he said. "We all operate on such a small budget to begin with, and at the same time, we've also seen a dramatic uptick in the amount of customers seeking assistance. Two or three years ago, our pantry was averaging about 125-140 families a month that we were assisting. Last month, we served 215 families."

Government Shutdown Hurting Local Food Pantries (Dallas)

More than five million pounds of food were scheduled to be delivered to the food bank between now and February 1. However, because of the shutdown deliveries for nearly two million pounds of that food have been cancelled or are in jeopardy of being cancelled.

NTFB supplies food to pantries in 13 North Texas counties, like Minnie’s Food Pantry in Plano, which already has dozens of empty shelves.

Portugal: no country for old people

Scaled-back pensions combined with a higher cost of living driven by VAT hikes have slashed the purchasing power of the elderly. In its next round of cuts, the centre-right government of prime minister Pedro Passos Coelho plans to push the retirement age to 66 and to cut civil service pensions over €600 a month by 10 per cent.

France's central bank lowers quarterly growth estimate to 0.1 pct

France was on path to witness a 0.1-percent economic growth in the third quarter of this year, the central bank Banque de France (BdF) said on Tuesday, revising down its previous estimate of 0.2 percent.

Why the taper may not happen until 2015

"The U.S. can't afford higher interest rates," as higher interest expenses would start to crowd out other government spending, likely requiring harsh spending cuts, he told CNBC. "No countries will opt to do that."

Gruber believes the likely appointment of Janet Yellen as the successor to Ben Bernanke at the helm of the Fed also signals tapering isn't on the cards.

IMF sours on BRICs and doubts eurozone recovery claims

The International Monetary Fund has thrown in the towel on emerging markets. After years of talking up the BRICS club of Brazil, Russia, India, China, and South Africa, it now admits that these countries have either exhausted their catch-up growth models, or run into the time-honoured problems of supply bottlenecks and bad government.

Gold & Silver

Click to read the Gold & Silver Digest: 10/8/13

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."

25 Comments

saxplayer00o1's picture
saxplayer00o1
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sand_puppy's picture
sand_puppy
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Insanity in financial world.....

A couple of alarmist (or at least alarming) posts at King World Live in the last 2 days;

1.  Paul Craig Roberts interview:

Today a former US Treasury Official warned King World News that the President of the United States will declare a “National Catastrophe,” and seize total power, much like a Caesar would, if it is deemed necessary to avoid a disastrous US default and subsequent collapse.  He also spoke about other drastic emergency measures which would also be implemented in order to avoid a US default.  

His theory involves one of two possibilities:  (not sure how to get the font back to normal, sorry)

 

 “The first would be the Federal Reserve, on its own initiative, would simply lend the US Treasury whatever money it would need.  You have to remember that the Federal Reserve lent to US and European banks more than $16 trillion in order to enable them to avoid default, or outright failure. 

Remember, the banks were considered too-big-to-fail.  So it was not just the TARP Bailout, which was a very small part, it was the lending by the Federal Reserve, which exceeded $16 trillion, that kept the system afloat.   So if the banks are ‘too-big-to-fail,’ clearly the US government is too-big-to-fail.  Like I said, the Fed would simply lend the Treasury the money. 

The second possibility would be that President Obama, because of laws that are already on the books, would have the power to declare a ‘national catastrophe’ and simply assume the leadership of the government.  This gets Congress and the courts out of the picture.  At that point there are no limits on the power of the President ...

This would mean that the President, on his own authority, could raise the debt ceiling.  So, either of those two events would happen if it looked like no deal was forthcoming from the Congress.  It could be that President Obama, or others in the Executive Branch, are planning to use this crisis to invoke that Executive Order.” 

2.  John Embry

all of the mainstream media propaganda regarding the US government shutdown and debt ceiling is just a “smokescreen because there is something else lurking out there that is really catastrophic.”

3.  And keeping with the general idea that a really good deception must include several levels of misdirection,  an article from the NY TImes explaining that the Koch Brothers put together a coalition of ultraconservative groups and designed the strategy to DE-FUND ObamaCare since they could not defeat it. This piece explains that they planned to use the budget approval process to block ObamaCare.  They would prevent passage of the budget and increasing in the debt ceiling but then offer to allow the government reopen without ObamaCare.

So, being a paranoid, conspiracy sniffing, counter-phobic psychological defense structure INFP, I wonder if this government shutdown has little to do with ObamaCare and more to do with an excuse to impose martial law and let the Dems say "they made me do it" and the Repubs say "No, they made this happen."  (See, really, no one was responsible.)

4.  But above all, Goldman Sachs and Credit Suisse AG advise, Don't Buy Gold!

 

"Once we get past this stalemate in Washington, precious metals are a slam dunk sell at that point," Currie said. "You have to argue that with significant recovery in the U.S., tapering of QE should put downward pressure on gold prices."

Tyler Durden comments on the wisdom of GS recommendations to its clients:  

"Of course, the fact that neither [recovery or tapering] is actually happening is irrelevant to the vampire squid, whose last "slam dunk" trade was to buy crude to $150 in the summer of 2008.... weeks before it [plunged to] $30.

5.  I recognize that this is just my personality's way of responding to this particular type of stressor, but I would recommend everyone purchase one of these:

 

Bankers Slave's picture
Bankers Slave
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Re think 9/11

Bankers Slave's picture
Bankers Slave
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Out of sheer desperation

it would not surprise me if they conducted themselves in a manner to bring about martial law. People are waking up and the information is getting out there and they sure as hell dont like it. They have lost control of the narrative and it scares them sh**less.

They need to regain control and this would be a way to do it!

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jgritter
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Sucks to be us

 

I don't think they are desperate and I don't think they are losing control, quite the opposite.  It seems reasonable to assume that if we in the PP community have been aware of the inevitability of potentially catastrophic changes and have been making preparations then TPTB have also been aware and are also making preparations.  Most of us have understood for quite some time that there are many parts of the country that may become uninhabitable and that millions are likely to die, so have TPTB, the issue is who is doing the triage.  In all likelihood the current situation has been table topped out in strategy planning sessions all over the country for years and if you don't have a pass card for a bunker installation some were then you have been deemed dispensable. Sucks to be us.  All they are going to have to do to quell insurrection is turn off the electricity for a week or two and the survivors will be begging to be enslaved for a bottle of water.  Those few feral people who are not groveling at the gates of FEMA camps will be of little consequence as they will be trapped in a desperate struggle just to stay alive. 

Not a pretty picture, but in light of human history I think it's plausible.

John G

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Yellen: More needs to be done to strengthen growth
 

Fed should debate, then unite: Yellen

 

Yellen: Fed must keep financial system stable

 
 

Yellen: Fed must keep inflation in check

 
 

Yellen: Fed must help unemployed

 
 

Yellen: More needs to be done to strengthen growth

 

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Fidelity sells off short-term T-bills on debt fear

"Fidelity Investments sold off all short-term Treasury bills coming due around the time the U.S. government hits the debt ceiling, according to news reports Wednesday citing Nancy Prior, president of the firm's Money Market Group. "

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But Joe says....

You know sand_puppy, you're bucking the sage advice of our great Vice President.  He recommends a double barrel.  What personality type is he, I wonder?  Be civil now.....Aloha, Steve.

Bankers Slave's picture
Bankers Slave
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Control

 

 

I was only referring to the flow of information via the internet that they yet have no control over. The longer that this persists, more awake people will become and their numbers increase. They do not like that one bit. I do understand that they are otherwise in complete control and your post sums that up perfectly.

 

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ao's picture
ao
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zombie special
sand_puppy wrote:

5.  I recognize that this is just my personality's way of responding to this particular type of stressor, but I would recommend everyone purchase one of these:

 

And if the budget allows, one of these.

http://www.ohioordnanceworks.com/Firearms/OOWExclusiveFirearms/M240_SLR.rif

In 7.62x51, not puny 5.56x45.  Here's a review:

"It came as no surprise that no malfunctions were experienced with the M240 SLR and with proper ammunition and gas setting, as well as normal cleaning and lubrication, I can't imagine one having a single malfunction with it during a lifetime of shooting."

Yeah baby!

 

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Don't get me wrong- I'd love

Don't get me wrong- I'd love to plunk down one of those jobbies on the bench at the range.  But...24 lbs and 13 large?  An AR-10, or M1A, with a sling of mags sounds more practical.  We're talking practical, right?  ;^)Now, when the select-fire kit comes out.....Zombies beware!  Aloha, Steve.

 

Bankers Slave's picture
Bankers Slave
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Here in

Scotland where new legislation is about to be passed, people who do not relinquish their low powered air rifles to the police soon, will be jailed and fined. 

We live in a police state over here and its getting worse. Only the authorities and the criminals have weapons now. 

Rector's picture
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That's Too Bad, In Texas I Just Bought One of These!

SBR%20basic%20LH%20angle.jpg

sand_puppy's picture
sand_puppy
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Rector....

Is that the Israeli Bullpup Rifle called Tavor-21?

Rector's picture
Rector
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Its Home Defense When You live 7 miles from the border

http://www.kriss-usa.com/

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HughK
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"Put your gun back in its place..."

 

Then they came and laid hands on Jesus, and took him. Behold, one of those who were with Jesus stretched out his hand, and drew his sword, and struck the servant of the high priest, and struck off his ear. Then Jesus said to him, “Put your sword back into its place, for all those who take the sword will die by the sword..."

                                                                                                -Matthew 26:50-26:52

Gentlemen,

Guns aren't going to help create a world worth inheriting.  

A proliferation of guns will just accelerate any collapse.  Anyone who says, "yeah, baby!" in reference to using firearms, or owning a big gun, is revealing a good dose of immaturity and lack of understanding about what shooting at either government officials or hungry and/or greedy trespassers would actually entail.

 Also, guns will do very little to keep out the federal government, if they decide to come knocking.  Until the Second Amendment allows for personal drones, personal tanks and RPGs, a personal multi-billion dollar electronic surveillance network, personal fighter jets and helicopters, it is very unlikely that that arming oneself is going to protect one from an overly oppressive government.

The proliferation of guns in the United States is likely to be a liability and not an asset in the event of even a partial collapse as it will make it much easier for some sectors of the society to tear other sectors apart.

 In closing, I share a picture of Travyn Martin, the 17 year old boy who was shot dead by 28 year old George Zimmerman, who, thanks to the legalized firearm extremism of the Stand Your Ground laws, was not held accountable for killing an unarmed minor holding a bag of Skittles and a bottle of fruit juice cocktail.  Firearm proliferation in the U.S. is part of the reason that every year we lose at least 8000 people to handgun homicides - over two 9/11 attacks every year.

 

"Blessed are the peacemakers, for they shall be called the children of God."

                                                                                             Matthew 5:9

Cheers,

Hugh

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Sheep and Sheepdogs

Hugh,

Thank you for sharing your opinion.  You clearly have no understanding of natural law, the right of self defense, Stand Your Ground provisions in the law or their intended use.  As an added affront, your use of Matthew 5:9 in this context confuses peacemaking with pacifism in the face of brutality.  

I am a peacemaker and would never shed innocent blood.  I will use my weapon in the defense of innocents in accordance with my right as a human being, and the high value I place on human life. We are, after all, created imago dei.  (as a Bible student you no doubt know what that means).  I do not carry arms because I am afraid, bloodthirsty, or a murderer.  I do so because I understand the nature of man and the risks posed by evil men.  I have seen the wolf up close and I will not allow innocents to be victimized if I can do anything about it.

Jesus' statement in this instance was a reaffirmation of the principle first laid out in Genesis 9:6 "whoever sheds man's blood, by man his blood shall be shed," laying out the idea that capital punishment is an  acceptable punishment for murder.  I understand that Christ has commanded that we not "live by the sword", or resort to violence when provoked (as was the case with his arrest).  Self defense in the face of attack by evil is not "living by the sword".  Attacking the soldier was just plain old vengeance, not self defense.  Further, as the passage continues, Christ identifies that he did not require defense, (he had access to legions of angels), but was choosing to be taken and crucified.

Once a week or so I teach concealed handgun classes to regular people so that they may get their license to carry a handgun.  My classes are comprised mostly of older people and women (occasionally I teach physically weak liberal men too).  Most of these people are defenseless without the use of a firearm, and many of them have been victimized by crime.  One woman who recently attended my class was the victim of a brutal rape that went on for several HOURS in her own home.  She was lucky to have survived and has resolved to never be in that position again.  Do you want to lecture her about "living by the sword"?   I'll forward your post to her. 

A society ruled by the many, the strong, or the evil is not civilized.  I understand that her ability to provide for her own self defense is not morally inferior to her rapist's abilty to take her life or dignity, even if you do not.

I encourage you to remain disarmed and express you opinion every chance you get.  I swore an oath as an Infantry Officer in the Army to defend (with arms) your right to do that.  However I will oppose you at every opportunity and will never be disarmed by a council of sheep.  You just aren't qualified.

As we have seen in other contexts, most people are like sheep; blissfully unaware of danger, and panicky when the wolf shows up at the tree line.  In order to preserve Justice and order, God has put some sheepdogs in the pasture too.  We don't expect the sheep to understand (the dumbest of all animals), so I don't listen to the noise, but please don't condescend and lecture me as if my ownership of a firearm puts me into some gang of fools.  Your really have no idea who you are lecturing or what you are talking about in the area of self-defense.

I hope that you continue to live in the world of ideas and never see the face of evil up close.  If you see virtue in allowing evil men to have their way with innocents, so be it.  I for one intend to stop acts of bloodshed if I am able, and teach others to do the same.

I have to go to Church now, so I cannot continue working on this post.  As I get dressed, I will put on my shoulder holster, and will be packing an Springfield Armory XD(M) 9mm handgun.  It has a 19 round magazine full of Corbon frangible ammunition.  My wife carries a Glock 26 loaded with the same.  In my other hand I will carry a Bible.  I'm sure you'll be at church today as well, right?  

Rector

BTW, I'm all done talking about this.  I'm going to be Dove hunting with my boys this afternoon.

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preventing crime

Rector, HughK-

Dualing bible quotes aside, the single thing that stuck in my mind after taking my firearm class was one observation made by my instructor: police do not prevent crime, they just clean up afterwards.  The only person that can really prevent a violent crime from being committed is someone there at the scene.  In some cases that may involve bystanders or witnesses, but in every case, that includes the victim.

So while "blessed are the peacemakers", but "an ounce of prevention is worth a pound of therapy after the fact."

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Apologies to Rector, ao, and the PP community

Dear Rector, ao, and other members of the Peak Prosperity community,

I'm sorry for my post earlier, as it was divisive and I try not to be divisive here.  After I posted, my intuition was telling me that there was a problem with either something I posted, or how I posted it, and it took a while for my conscious mind to acknowledge this feeling.  By the time I tried to edit it, and make it less divisive, it was too late to change.

Rector's response was an indication that I had struck a nerve in a way that I did not intend, as it's never helpful to start a back-and-forth of this nature.

I continue to stand by my position that the cavalier discussion of semi-automatic firearms in this thread is in itself both divisive and unsettling and will not move us closer to a world worth inheriting.  In other words, while I apologize for the way in which I presented my concern, the original comparison of semi-automatic weapons, as well as comments such as "yeah, baby," indicate a trend that is more destructive than it is constructive, and my intent was to shed some light on the drawbacks of our gun culture, both in the US and sometimes here at PP.

I may post more in the controversial topics area, with a link, so that people have an easier time avoiding what I write about this difficult issue if they desire.  So, again, sorry to all for posting in a divisive way and I'll try to be more careful in the future.

Cheers,

Hugh

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Now thats

what I would term as fully comprehensive life assurance!

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Gun ownership and civil society

Dear Rector and all,

I have posted a longer message on gun ownership and a civil society here, in the Controversial Topics forum.

Cheers,

Hugh

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Hugh and Rector

I've created a thread for this discussion. I'd encourage any and all to *courteously* discuss this topic here:
http://www.peakprosperity.com/poll/83210/firearms-debate-firearms-asset-liability

Cheers,

Aaron

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the incorrectness of political correctness
HughK wrote:

Dear Rector, ao, and other members of the Peak Prosperity community,

I'm sorry for my post earlier, as it was divisive and I try not to be divisive here.  After I posted, my intuition was telling me that there was a problem with either something I posted, or how I posted it, and it took a while for my conscious mind to acknowledge this feeling.  By the time I tried to edit it, and make it less divisive, it was too late to change.

Rector's response was an indication that I had struck a nerve in a way that I did not intend, as it's never helpful to start a back-and-forth of this nature.

I continue to stand by my position that the cavalier discussion of semi-automatic firearms in this thread is in itself both divisive and unsettling and will not move us closer to a world worth inheriting.  In other words, while I apologize for the way in which I presented my concern, the original comparison of semi-automatic weapons, as well as comments such as "yeah, baby," indicate a trend that is more destructive than it is constructive, and my intent was to shed some light on the drawbacks of our gun culture, both in the US and sometimes here at PP.

I may post more in the controversial topics area, with a link, so that people have an easier time avoiding what I write about this difficult issue if they desire.  So, again, sorry to all for posting in a divisive way and I'll try to be more careful in the future.

Cheers,

Hugh

Hugh,

You offer an apology but then you essentially backpedal on it in your text.  If you don't have a sense of humor and are so uptight that you don't understand my comment in that context, then I feel sorry for you.  Whether you realize it or not, the political correctness movement (that you seem to be an adherent of) had its origin with the German marxists, a pretty humorless bunch and a dangerous bunch at that.  The fact that you don't seem to understand this origin (and that's giving you the benefit of the doubt) and also don't seem to understand the role of firearms in protecting one's liberty concerns me, especially when you are teaching classes to young people on government.  Further more, it is noteworthy that on the Obamacare thread, you singled me out as bringing up what you felt was an inappropriate topic when, in fact, rhare started the thread ... yet you didn't say boo to him.  That, in itself, is revealing.  Quite frankly, I'm not interested in any further discussion with you on this matter since I think there's more to be lost than to be gained and my time is too valuable.

 

Rector,

"YEAH, BABY!!!"++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

 

 

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joesxm2011
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Hugh - Luke 22:36

Reading the bible is like doing statistics.

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