Daily Digest

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Daily Digest 2/5 - S&P Downgrades Puerto Rico, World Bracing For Retirement Crisis

Wednesday, February 5, 2014, 11:34 AM

Economy

Venezuela Selloff Worsens as U.S. Oil Exports Sink

The tumble in oil exports, Venezuela’s biggest source of dollars, comes as President Nicolas Maduro faces a shortage of U.S. currency that’s caused consumer prices to soar 56 percent and foreign reserves to plunge to a decade-low of $21 billion.

Troika Estimates Greece Will Need Further Financial Support

However, troika fears that Greece’s fiscal deficit will be bigger than initially predicted, despite the impressive primary surplus that the Greek government managed to achieve during the last year. Troika predicts that the fiscal gap of the Greek economy could reach and even surpass the amount of 14 billion euros. This estimation is based on the lack of progress in the Greek privatization process and on some judicial decisions that have stalled some of the memorandum’s measures.

Pennsylvania's cost of prisons tops $2 billion: Pa. budget 2014

The cost of incarcerating Pennsylvania's 51,000 state prison inmates would exceed $2 billion for the first time in history under Gov. Corbett's proposed 2014 budget.

Cyprus banks saddled with massive non-performing loans

Banks in recession-hit Cyprus, reeling from a financial crisis, are struggling with non-performing loans that make up nearly half their lending and are hampering efforts to finance a cash-starved economy. The central bank says banks' liquidity is sufficient to absorb NPLs up to a certain point, but fast action is needed as the figure is rising.

German yields fall on talk Draghi wants to stop sterilisation

"There's talk Draghi is looking for German support for ending sterilisation. For me, that's effectively QE (quantitative easing)," a trader said. QE is market jargon for central bank asset purchases as a monetary policy easing tool.

U.S. deficit to decline, then rise as labor market struggles: CBO

This will hold down revenue gains, causing cumulative deficits through 2023 to be $1 trillion higher than previously projected. The deficit will top $1 trillion again in 2022, a level roughly equivalent to last year's deficit as a percentage of economic output.

Health-Care Law Expected to Take Greater Toll on Workforce

The Affordable Care Act is projected to reduce the number of full-time workers by roughly 2.3 million people through 2021 and insure two million fewer people this year than previously estimated, the Congressional Budget Office said Tuesday.

Ruble Slump Prompts Large Intervention in January

The central bank sold $7.8 billion and €586 million on the market to ease downside pressure on the ruble in the first month of 2014. The last time the central bank sold comparable amounts of foreign currencies from its reserves was in January 2009, in the midst of the global financial crisis.

Russia cancels domestic bond auction citing market conditions

Russia's finance ministry cancelled its weekly domestic bond auctions for the second week in a row on Tuesday, saying in a statement the decision was "based on an analysis of current market conditions".

Anthem to raise some premiums as much as 25%

Thousands of Anthem Blue Cross individual customers with older insurance policies untouched by Obamacare are getting some jarring news: Their premiums are going up as much as 25%. These increases, 16% on average, are slated to go into effect April 1 for up to 306,000 people

World bracing for retirement crisis: Part 2

Many have raided their retirement accounts to pay bills. In the United States, 26 percent of workers with 401(k) and other defined-contribution plans take loans or make hardship withdrawals before they reach retirement, according to a study by HelloWallet, which offers online services that help people with their finances. Working Americans withdraw $70 billion annually from retirement accounts

Cost, not 'invincibility,' keeps young people from buying health insurance: Cal State survey

The survey of students at three CSU campuses indicated that about 30 percent of Cal State students remain uninsured. Nearly 80 percent of the uninsured respondents said they didn’t have coverage because they couldn’t afford it; only 7 percent said they were uninsured because they didn’t believe they needed insurance. E

S&P downgrades Puerto Rico debt to junk status

Standard & Poor's on Tuesday cut its credit rating on Puerto Rico, dropping the cash-strapped U.S. territory's debt to junk-bond status on concerns about its ability to access capital markets.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/4/14

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."

11 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4165
Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Bugout shelter.

Here is an impressive little solution for those not in a strong financial position, or just to add to vour bugout bag.

You will be on your own.

 

VeganDB12's picture
VeganDB12
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 741
Ice and Yaktrax

The hammock looks like a very useful product. My relatives in the south would love it because it keeps you off the ground which is seriously snakey and buggy.

I am in snowmageddon here in New York and have gotten around on foot easily thanks to these little beauties:

http://www.amazon.com/s/ref=nb_sb_ss_c_0_7?url=search-alias%3Dsporting&field-keywords=yaktrax&spyaktraxrefix=yaktrax%2Caps%2C493&rh=n%3A3375251%2Ck%3Ayaktrax

In case the bugout has to happen in the winter. And you need to do serious walking in the ice.  Maybe everyone knows about them but I am in awe...they are very slippery on flat surfaces though....

 

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4165
KathyP's picture
KathyP
Status: Bronze Member (Offline)
Joined: Jun 19 2008
Posts: 87
Ice is often flat - a better recommendation

Sorry, VeganD, but in my experience, Yaktrax are useless on real ice.  These Microspikes are what you really need.  http://www.amazon.com/Kahtoola-KAH-QUD-BLK-L-Microspikes-Large-Black/dp/B00E3KNFVO/ref=sr_1_1?ie=UTF8&qid=1391622195&sr=8-1&keywords=microspikes  Take it from an experienced winter ice walker.

Kathy

jonesb.mta's picture
jonesb.mta
Status: Silver Member (Offline)
Joined: Jun 11 2008
Posts: 126
Walking on Ice

We've tried them all and the only one that works and can take a beating are STABILicers which Amazon also sells. The others work in some situations but can't take a beating of everyday day use. Most of the others break down even under light use. The only other good option is to put golf cleats in a pair of shoes or boots that you only wear for ice. We've been using our STABILicers for five years and haven't lost one cleat.

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1924
Unfortunate Loss of Argentine Bank Records

Yesterday, in the financial news, questions were raised about the veracity of Argentina's stated reserves.  Today, a tragic fire seems to have destroyed these banking records despite their storage in a facility with advanced systems able to "quench flames without destroying documents." 

Unfortunately, 9 firefighter/first responders seem to have been killed in this accident.

Please do not be a crazy whacko conspiracy theorist and suspect that there could be ANY connection between these events.  There is not.

Thank you and have a nice day.

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
The Ways of Abel.
  • Look at a complex and confusing reality, such as the social dynamics of an old city
  • Fail to understand all the subtleties of how the complex reality works
  • Attribute that failure to the irrationality of what you are looking at, rather than your own limitations (Models- my add)
  • Come up with an idealized blank-slate vision of what that reality ought to look like
  • Argue that the relative simplicity and platonic orderliness of the vision represents rationality
  • Use authoritarian power to impose that vision, by demolishing the old reality if necessary
  • Watch your rational Utopia fail horribly

This man is discussing the Ways of Abel. Via Dmitry's latest blog.

Gengis Kahn had a point- cities are a blight upon God's perfection. Cain won the last round and was suitably rewarded with his Mark.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Emergence and Epileptic Synchronosity.

Synchronous.

The Real Estate market would be healthy if it were chaotic, but because order is imposed on it the entire market becomes synchronous and will shake itself to pieces as the ups and downs become more and more extreme.

The above is an example of what happens if some simple model is applied to any naturally chaotic environment. World Government springs to mind..

My model is that World Government will shake itself to pieces and homogenize, allowing the internet to develop an emergent Supermind composed of the sum of all human and machine intellect.

Synchronosity in the brain results in epileptic seizure.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2839
Synchronous.
Arthur Robey wrote:

Synchronous.

The above is an example of what happens if some simple model is applied to any naturally chaotic environment. World Government springs to mind..

My model is that World Government will shake itself to pieces and homogenize, allowing the internet to develop an emergent Supermind composed of the sum of all human and machine intellect.

 

"shake itself to pieces and homogenize" - not sure how to interpret this statement, feel free to elaborate.  Thanks!

T2H

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

Let us say we have these geographical entities called countries.

Asimov pointed out that the size of an empire is dependent on its speed of communication. So now we have world-wide instantaneous communication.

The next step in my model is that someone decides that the chaos needs to be simplified and that in the interest of rationalization it would be a jolly good idea to form a Supra-national body of august members dressed in impressive regalia to orchestrate the whole messy web.

The trouble with getting everyone to march in step is that time-based harmonies develop. Synchronous behavior emerges. The ups and downs of the share market might be a good example. Liquidity sloshing about the world, Soldiers marching over a bridge, a soprano shattering a wine glass, the squeal of audio feedback are other prosaic examples.

The amplitude of these various oscillations becomes greater than the toughness of the world government and the whole system explodes into shards. And if the pieces are fine enough, for example to the individual as the single remaining entity- we will have lost the posited countries at the beginning of the post- Gone like the artificial constructs that they are. This is what I mean by homogenization.

Culture and national identity will be extinguished by the explosion and we will awaken as from a nightmare, whole.

I Pet Goat II.

 

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