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Daily Digest 11/30 - The Workers Who Bring You Black Friday, Silicon Chasm

Saturday, November 30, 2013, 11:06 AM

Economy

The Workers Who Bring You Black Friday (westcoastjan)

On an overcast Tuesday, I pull into the parking lot, fifteen minutes ahead of schedule. Looming to my left is a giant rectangle of windowless cement. At 800,000 square feet, the warehouse is the size of Madison Square Garden, big enough that any misplaced products are as good as lost. I get my picture snapped for an ID badge and join thirty other new hires in the cafeteria. It is a diverse group, evenly divided by gender, mostly Latino but with a fair number of whites and blacks. As we sit, several men swap rumors of better opportunities elsewhere: a warehouse where pay starts at $12 an hour, another with productivity bonuses that can boost hourly wages to $15. But those are direct hire positions, and hard to land. During my job search, each warehouse I visited gave directions to the nearest temp agency.

Michael "Big Short" Burry: After Every Over-Consumption, "A Brutal Hangover Is Inevitable" (Chris M.)

On America's day most famous for over-consumption, we thought a few minutes of quiet 'tryptophan-induced' contemplation of the state of our world would be useful. Infamous for his correct predictions of the great recession, Europe's demise, and the collapse of the US financial system (as well as profiting handsomely from being right), Dr. Michael Burry's infamous UCLA commencement speech has much to offer (especially considering Burry is making a come-back - Bill Fleckenstein style - at Scion Asset Management). In this "age of infinite distraction", the painful 'truthiness' of this brief speech stunningly summarizes the ominous truth facing most of the developed (and much of the emerging) world today: "when the entitled elect themselves, the party accelerates, and the brutal hangover is inevitable." A quarter-of-an-hour well spent from a self-described 'chicken-little' who was "just trying to figure it all out".

FX to Libor Probes Leave U.K. Traders Looking for Lawyers (Arthur Robey)

Regulatory scrutiny of benchmarks has grown since it emerged that Libor, the benchmark interest rate for more than $360 trillion of securities worldwide, was being manipulated. Barclays Plc was the first bank to be penalized in the investigation in June 2012. Regulators have levied fines of about $3.7 billion in total, with more to come.

$1 coins: Unwanted, unloved and out of currency (Dana T.)

Inventory Management Needs Better Performance Information."
The report traces the history of the $1 presidential coins from their inception in Congress in 2005, through initial distribution in 2007, through 2011 when the mint stopped making them because of a lack of public appetite to their current ignoble status as the coin that is now costly to store.

The $1 coins have a lot going for them. They are durable and can be used easily in vending machines. They far outlast paper money.

Salad trafficking rings and the business of food (westcoastjan)

As more people join the middle classes, they demand more food, particularly meat. It takes time for production to catch up and match the growing and changing eating habits of this new middle class.

Because production tends to lag, rising demand generates food price inflation.

Canadian woman refused U.S. entry because of depression (westcoastjan)

On a website promoting the book, Richardson describes how she became paralyzed from the waist down after jumping off the Bloor viaduct in a failed suicide attempt in 2001. In the book, Richardson says it was one of three occasions when she tried to take her own life.

Silicon Chasm (westcoastjan)

Master and servant. Cornucopian wealth for a few tech oligarchs plus relatively steady but relatively low-paying work for their lucky retainers. No middle class, unless the top 5 percent U.S. income bracket counts as middle class. Silicon Valley is a tableau vivant of what many economists and professional futurologists say is the coming fate of America itself, a fate to which Americans, if they can’t embrace it as some futurologists hope, should at least resign themselves.

$24.2M federal grant to hire 150 Detroit firefighters a 'godsend' (Thomas C.)

The Fire Department had never secured a grant from FEMA’s Staffing for Adequate Fire and Emergency Response Program, or SAFER, until 2011, when the foundation stepped in. Since then, the Fire Department captured a $22.5 million award in 2012, the largest SAFER grant awarded up to that point, that kept 108 firefighters from layoffs. In October of that year, the city laid off 26 firefighters, but they returned a month later under another SAFER grant of $5.6 million.

Poodwaddlle World Clock (Dana T.)

World Population

The Money Changers Serenade: A New Plot Hatches — Paul Craig Roberts (Thomas C.)

A Warburg in-law financed Woodrow Wilson’s presidential campaign. Part of the reward was Wilson’s appointment of Paul Warburg to the first Federal Reserve Board. The symbiotic relationship between presidents and bankers has continued ever since. The same small clique continues to wield financial power.

Comex Registered Gold Inventory Levels - 65 Potential Claims Per Ounce (Thomas C.)

While some cavalierly dismiss this incident, saying that Harvey and son 'should have known,' in fact the point was that this was a surprise to many, and it was corrected only through an accidental encounter of a customer with the reality of what the Bank had been doing.

Sometimes these accidents occurred during periods of stress, as in the case of MFGlobal. It has to do with the discrepancy between supply and apparent supply.

Dr. Paul Craig Roberts Interview (pinecarr)

In Alienation and the Soviet Economy (1971), Roberts explained the Soviet economy as the outcome of a struggle between inordinate aspirations and a refractory reality. He argued that the Soviet economy was not centrally planned, but that its institutions, such as material supply, reflected the original Marxist aspirations to establish a non-market mode of production. In Marx's Theory of Exchange (1973), Roberts argued that Marx was an organizational theorist whose materialist conception of history ruled out good will as an effective force for change.

Japanese firm proposes LUNA RING to send solar energy from moon to Earth (Arthur Robey)

Not addressed are the costs and considerable hurdles such a project would have to overcome—foremost among them would be building such a massive structure from such a great distance—nothing like it has ever been attempted. There are also issues of getting the international community to go along with the project and overcoming seemingly simple problems, such as lunar soil disrupting the robots and their construction efforts—not to mention dusting the solar cells once in place.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/29/13

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."

3 Comments

RogerA's picture
RogerA
Status: Silver Member (Offline)
Joined: Jun 18 2009
Posts: 106
Money changers & Wilson + some more.

 

The real money Changers:


 

Woodrow Wilson:

Occasionally, on a Saturday morning in the summer of 1912, Bernard Baruch would walk into the Democratic Headquarters with Woodrow Wilson in tow, "leading him like one would a poodle on a string."
Wilson would be quite solemn-faced in appearance, dressed in dark, formal clothes, having just arrived in New York from Trenton.
According to my friend, Wilson would be given his special "indoctrination course" in politics, by several of the top Advisers assembled there. The course consisted chiefly of outlining to him and his agreeing in principle to:
1.Aiding and pushing the projected Federal Reserve Bank Legislation through Congress when Paul Warburg approved the final draft of the proposed Act, then being worked on.
2.Aiding in changing the method of electing U.S. Senators, by establishing a direct vote of the people, which provided more control over the Senate by the professional politicians.
3.Agreeing to aid and introduce the graduated, personal income tax, which was brought over here from England to drain off the results of our individual initiative.
4. If called upon, to lend a sympathetic ear and aid indicated "policy" if war should break out in Europe.
5.To lend a thoughtful ear to recommendations made by "policy", in respect to filling key Cabinet posts.

Wilson dutifully received and absorbed his indoctrination, shook hands all around, and then departed. Whereupon the leaders and Advisers went into "the back room" of headquarters, shut the door, and "had a big belly laugh!" Someone would then ask, "How is our other candidate doing?"
The other candidate was Theodore Roosevelt...

 

..someone called Summers.

Joseph Stiglitz couldn't believe his ears. Here they were in the White House, with President Bill Clinton asking the chiefs of the US Treasury for guidance on the life and death of America's economy, when the Deputy Secretary of the Treasury Larry Summers turns to his boss, Secretary Robert Rubin, and says, "What would Goldman think of that?"
Huh?
Then, at another meeting, Summers said it again: What would Goldman think?
A shocked Stiglitz, then Chairman of the President's Council of Economic Advisors, told me he'd turned to Summers, and asked if Summers thought it appropriate to decide US economic policy based on "what Goldman thought." As opposed to say, the facts, or say, the needs of the American public, you know, all that stuff that we heard in Cabinet meetings on The West Wing.
Summers looked at Stiglitz like Stiglitz was some kind of naive fool who'd read too many civics books.

 

http://www.gregpalast.com/larry-summers-and-the-secret-end-game-memo/

When a little birdie dropped the End Game memo through my window, its content was so explosive, so sick and plain evil, I just couldn't believe it.

The Memo confirmed every conspiracy freak's fantasy: that in the late 1990s, the top US Treasury officials secretly conspired with a small cabal of banker big-shots to rip apart financial regulation across the planet. When you see 26.3% unemployment in Spain, desperation and hunger in Greece, riots in Indonesia and Detroit in bankruptcy, go back to this End Game memo, the genesis of the blood and tears.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Carefully selected.

My intuition is that the incumbent president is carefully selected for his bid-ability. 

Imagined conversation:

'Nice job, great working hours, plenty of status and the food is first rate. Excellent pension."

"It was Terrible what happened to Kennedy, dont you think?"

"Pity. He was such a bright young fellow-with a mind of his own."

"History has a strange way of repeating itself, if you know what I mean? Of cause you do. You are a bright fellow too."

"Lovely children, by the way."

"Are you still interested in the position?"

After all, the position is too symbolic to allow for any misunderstandings.

Add: I wonder if the "Big Red Button" on his desk has any wires connected to it? He probably is reluctant to look. I should imagine that the quality of his eye-movements is carefully analysed.

RogerA's picture
RogerA
Status: Silver Member (Offline)
Joined: Jun 18 2009
Posts: 106
An addendum.

Some more quotes from an interesting book.
https://archive.org/details/FranklinRooseveltMyExploitedFather-in-law

 

....Now, comes a most interesting point, in view of what happened later! "Uncle Henry", I have been told, made Franklin's investment whole, but—and there was a "but"—Franklin, on his part, agreed to be receptive to a future political suggestion from "Uncle Henry", when made, to help his son, Henry, Jr., along life's thorny road to get ahead! Thus, the respective interests of FDR and "Uncle Henry" stemming from a bad financial loss, initiated by Uncle Henry, became "balanced". This deal occurred in 1929. The "suggestion" was made several years later by "Uncle Henry". It was a cogent suggestion!
It clearly indicates why a "spot" was found so readily for Henry, Jr., in Washington. The "spot" turned outto be the Secretary of the Treasury.
In 1929, "Uncle Henry" was heard by a friend of mine in New York City to remark in an elevator, "It's too bad about my Henry. I've done everything I can do for him, but he just doesn't understand business." The Secretary of the Treasury, to be sure, doesn’t have to have any business sense. He takes orders!...

 

...Speaking politically, I regard Woodrow Wilson as a man who sold his soul to the internationalists' program, to the One-World Debt-Finance Forces, and thereby opened the first big holes in our Constitutional and financial "dikes." I regard Franklin Roosevelt, after 1932, as likewise, selling his political soul to the same One-World Internationalist Debt-Finance Forces and, under their coercion, he made larger the Woodrow Wilson "holes in the dike."....
.....Wilson was egotistical, conceited, ambitious, somewhat arrogant and very stubborn. FDR was very egotistical, conceited, equally ambitious, and somewhat arrogant at times. In his early years, he was known to be a poor loser in sports. He was one who often resented the outstanding ability in an opponent. For example, he was critical and jealous of General Douglas MacArthur in certain areas, a man whom he doubtless recognized as having more real native ability than he had, with a far more outstanding all-around record.
Perhaps the General never knew that, but I hope he did.
Wilson, initially, had great idealism and a flair for words and phrases. He did not hesitate to compromise his ideals. When a leading professor at Princeton, I am told, his lectures in jurisprudence and international law were often ear-popping and thrilling......
 ......He appeared willing to say anything, or do almost anything, to advance his gnawing political ambitions. He was oblivious of the aftermath until near death.
It is fitting to mention that when Woodrow Wilson became Governor of New Jersey, the brother of a closefriend of mine, who was a member of the Princeton Class of 1895, became Wilson's actual right-hand adviser and close counselor. He was the recognized Dean of Legislative Reporters in New Jersey, and represented the Newark News. His name was James F. Dale.........It is reliably stated that Woodrow Wilson would not put his signature on any important state document in Trenton unless there were the initials, "J.D." on its lower left corner, for Jim was able and trusted by all high-level officials there.

 

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