Daily Digest

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Daily Digest 3/5 - Marcellus Output Not Slowing Down, Health Care Agency Passes $1 Trillion Milestone

Wednesday, March 5, 2014, 12:23 PM

Economy

Bankrupt? How to get student loan debt erased

In most cases, borrowers in bankruptcy don't even ask for help because they figure a discharge of debt is so rare. In one study of 170,000 student loan debtors who filed for bankruptcy protection in 2007, only 51 won full discharges of their debt and 30 received partial discharges.

Rulings against traffic cameras mount in Ohio

“The trend, I think, is that you have judges looking more closely at procedures used by the municipalities that may be motivated more by raising revenue than for public safety,” said Josh Engel, an attorney for motorists in both the New Miami and the Elmwood Place lawsuits. In those cases, the judges said separately that the administrative systems made it difficult for motorists to challenge the tickets. Butler County Common Pleas Judge Michael J. Sage expressed “great concerns about due process.”

Health Care Agency Passes $1 Trillion Milestone

An aging population that's expanding the Medicare rolls and Obama's push to cover uninsured workers and their families are helping to drive the long-term trend of greater government spending on health care.

White House: Jobless rate over 6 percent 'til 2017

However, the White House projects a 6.7 percent unemployment rate for 2015. While that's the same level as in the Blue Chip Consensus - an average of about 50 private-sector forecasts- it is more optimistic than the Congressional Budget Office, which projects 2015 unemployment at 7.1 percent.

Puerto Rico bond sale likely next week

Three prominent Popular Democratic Party senators - Antonio Fas Alzamora, Angel Rosa and Ramón Luis Nieves - have called for renegotiating long-term debt with the island's creditors, something the government has said is not being planned. They said that keeping current on debt payments and operating within a balanced budget will require a $1 billion spending cut for the upcoming fiscal year.

$17.41 Trillion in U.S. Debt, like Stocks, at Record Levels

Total outstanding public debt is now at $17.41 trillion, according to the U.S. Treasury Department's latest daily statement. That's almost $1 trillion over last year's debt ceiling limit of $16.69 trillion.

City Council to Dig Into Pension Liability (Memphis)

“It’s a big number, and we don’t have the money,” Wharton said last week of his administration’s estimate of a $709 million unfunded pension liability compared to an estimate of $300 million from municipal union leaders.

Flint Mayor Dayne Walling declares $70 million 'war on blight'

Mayor Dayne Walling called for a $70 million war on blight to tear down nearly 6,000 buildings during his annual State of the City address Monday, March 3.

Obama aims to boost economy with $3.9 trillion budget for 2015

The blueprint for fiscal 2015, which begins Oct. 1, is laden with populist proposals designed to fortify those goals. It includes new spending for pre-school education and job training, expanded tax credits for 13.5 million low-income workers without children and more than $1 trillion in higher taxes over the next decade, mostly for the wealthiest Americans.

Insurers’ Obamacare Losses May Cost U.S. $5.5 Billion

Health insurers such as WellPoint Inc. (WLP) and Humana Inc. (HUM) stand to gain $5.5 billion from the government next year to cover losses from Obamacare in a program the law’s opponents label a bailout.

Of Paper Money, Digital Money And Gold

The digital “Bitcoin” has bit the dust at Mt. Gox Bitcoin Exchange; over $400 million US has evaporated, or perhaps moved into someone’s pocket. The news is all over the Internet these days.

“Digital money” is accepted world-wide. There exists only a remnant of fiat paper money which is increasingly and deliberately made more difficult to use and transport physically. The reason being, that digital transactions leave a trail of information which governments use to control the behavior of their subjects (we can hardly call them “citizens” any longer) whereas citizens using paper money in their dealings leave no trail.

A Warning For Americans - Is Money The Root Of All Evil?

Mike Maloney Reads Atlas Shrugged. (Video)

Recently, Mike mentioned to me that he was going to read a section from his favorite book of all time - Ayn Rand’s ‘Atlas Shrugged’. Whoa. This was obviously not going to be a normal company meeting. Having just started to scrape the surface of explaining the dangers of socialism in Episode 5 of Hidden Secrets Of Money, it was obvious that this reading would make for an excellent video.

Jim Rickards: China has set itself up for a collapse

“You really have to take Chinese GDP today – if you adjusted it for the write-off of the wasted investments – it wouldn’t even have been as high as it has been. That adjustment is coming, so I’m looking for a rapid decline in Chinese growth.”

“They’ve [China] set themselves up through wasted infrastructure investment, opaque financial products and Ponzi financing. They’ve set themselves up for a collapse.”

Energy

Marcellus Output Not Slowing Down

The Marcellus Shale will continue to be the country’s biggest driver in the growth of natural gas production, according to a new report from Morningstar. The report, “Shale Shock,” concludes that despite years of phenomenal shale gas production, the Marcellus Shale is not slowing down. “The emergence of the Marcellus Shale—the vast gas-bearing rock formation in the northeastern United States—is a game-changer for the U.S. energy industry,” Mark Hanson, Morningstar’s strategist for energy equity research, said.

20,000 megawatts under the sea: Oceanic steam engines

IF ANY energy source is worthy of the name "steampunk", it is surely ocean thermal energy conversion. Victorian-era science fiction? Check: Jules Verne mused about its potential in Twenty Thousand Leagues Under the Sea in 1870. Mechanical, vaguely 19th-century technology? Check. Compelling candidate for renewable energy in a post-apocalyptic future? Tick that box as well.

Claims for it have certainly been grandiose. In theory, ocean thermal energy conversion (OTEC) could provide 4000 times the world's energy needs in any given year, with neither pollution nor greenhouse gases to show for it. In the real world, however, it has long been written off as impractical.

Obama FY15 Budget Would Eliminate Oil Tax Breaks

President Obama released his fiscal year 2015 budget on March 4, a $3.9 trillion package that includes a range of wish-list items in an election year. Among other things, the budget calls for the elimination of a range of tax breaks that benefit oil, natural gas, and coal companies. The tax breaks amount to $4 billion annually, and eliminating them is request that the President has called for multiple times over several years. Over ten years, if enacted, cutting the tax breaks would save $48.8 billion over ten years.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/5/14

Provided daily by the Peak Prosperity Gold & Silver Group

10 Comments

Christopher H's picture
Christopher H
Status: Silver Member (Offline)
Joined: May 29 2009
Posts: 148
And this little nugget buried in the piece on Marcellus Shale

"Still, shale plays do decline quickly, and drillers will have to drill 1,000 new wells each year just to keep production flat. Morningstar projects the industry will be able to achieve that rate of drilling, with an expectation of 1,600 new wells drilled each year going forward."

That seems like a lot of embodied energy necessary just to keep the status quo.  Especially when I consider that there are gas wells within a mile of where I grew up in Western PA that were drilled around 1900 and are still producing.

Got ERoEI?

Snydeman's picture
Snydeman
Status: Platinum Member (Offline)
Joined: Feb 6 2013
Posts: 505
ERoEI

ERoEI seems to be the part of the equation most "pundits" and industry insiders seem to forget when touting the Christ-like salvation that shale and other energy sources will grant us.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
HughK's picture
HughK
Status: Platinum Member (Offline)
Joined: Mar 6 2012
Posts: 761
Lawsuit: London gold-fix banks accused of manipulation

Lawsuit: London gold-fix banks accused of manipulation

The five banks involved in setting the London benchmark gold price have been accused in a lawsuit of price manipulation, a filing with a U.S. federal court in New York showed.

 
Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2833
London gold-fix banks accused of manipulation
HughK wrote:

Lawsuit: London gold-fix banks accused of manipulation

The five banks involved in setting the London benchmark gold price have been accused in a lawsuit of price manipulation, a filing with a U.S. federal court in New York showed.

 
I'd expect a few more tragic suicides to come of this.
thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1616
Central bank gold manipulation

I think we should follow the gold fixing manipulation wherever it leads, but let's not let it distract us from the really huge manipulation that has been done for decades by the central banks.

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1892
Down Under (Austrailia) talks Bail-ins

Catherine Austin Fitts posts a column on a tip from one of her readers from Australia summarizing blog posts from the last year for bail-ins, and her perspective on this topic.  Get your cash on your boat, Arthur!

By Catherine Austin Fitts

 

A subscriber from “down under” sent a series of interesting links on blog posts published last year on Australia’s plans to be prepared for “bail-ins.” My thanks to our subscriber.

I anticipate that the plans are similar throughout the G-7 – certainly the Anglo-American world.

 

We are embarking on a unique experiment – managing a multi-trillion dollar interest rate swap derivatives book globally during a period of rising interest rates. We have never done this before. So it make sense the global banking industry would want to coordinate the protection of the global derivative book.

-----

Australia Plans Cyprus-Style “Bail-In” Of Banks In 2013-14 Budget

 

Australian Banks Demand Protection From Derivatives Losses Under Bail-In Plan

Australian Banks “Welcome” Cyprus-Style Bail-In Plan

 

Shareholders, creditors must pay if banks fail: BIS

Timeline For “Bail-In” Of G20 Banking System

 

“Bail in” Cyprus-Style Wealth Confiscation Laws coming to Australia!

IMF Tells Australian Lawmakers To “Prevent Premature Disclosure Of Sensitive Information” On Bank Bail-Ins

 

Wikipedia on Bailout vs. bail-in

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Good Man, Sandpuppy.

Let us say that things are arranged as well as I can, given my resources.

At smoko yesterday one of the boys asked me who the NSA were. I like him- but how do I bridge the gap?

(I invest in mechanical Swiss chonographs. Very cheap now. Small portable accurate, reliable, no batteries and very pretty.)

tbh524's picture
tbh524
Status: Member (Offline)
Joined: Dec 17 2008
Posts: 10
re: Obama FY15 Budget Would Eliminate Oil Tax Breaks

I support eliminating all corporate & farm welfare but I must be getting cynical in my old age.

All this fanfare about removing the tax break that in  *10 years* will save about the same amount as 3 weeks of QE.

Let's get rid of the tax breaks, but doesn't a trillion dollars a year in QE make people's head spin?

Are we that bad at the relative size of large numbers? (that's rhetorical...yes we are)

FreeNL's picture
FreeNL
Status: Silver Member (Offline)
Joined: Mar 27 2013
Posts: 112
put that through the Obama

put that through the Obama translator model 666

budget for year 2015 will double tax breaks for oil companies while starting a new tax for you on purchases of home heating oil and gasoline.

that sounds about right.

 

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