Daily Digest

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Daily Digest 3/21 - Missing Bitcoins Found At Mt. Gox, Women Change the Face of Japanese Farming

Friday, March 21, 2014, 11:19 AM


Mt. Gox suddenly finds 200,000 missing bitcoins, worth over $115M (jdargis)

“Taking into account the existence of the 200,000 BTC, the total number of bitcoins which have disappeared is therefore estimated to be approximately 650,000 BTC. (Please note that the reasons for their disappearance and the exact number of bitcoins which disappeared is still under investigation and that the above figures may still change depending on the results of the investigation),” wrote Karpeles

Scientists say destructive solar blasts narrowly missed Earth in 2012 (Richard W.)

The bursts from the sun, called coronal mass ejections, carried southward magnetic fields and would have clashed with Earth's northward field, causing a shift in electrical currents that could have caused electrical transformers to burst into flames, Luhmann said. The fields also would have interfered with global positioning system satellites.

Bank of England Admits that Loans Come First … and Deposits Follow (Thomas C.)

Commercial banks create money, in the form of bank deposits, by making new loans. When a bank makes a loan, for example to someone taking out a mortgage to buy a house, it does not typically do so by giving them thousands of pounds worth of banknotes. Instead, it credits their bank account with a bank deposit of the size of the mortgage. At that moment, new money is created. For this reason, some economists have referred to bank deposits as ‘fountain pen money’, created at the stroke of bankers’ pens when they approve loans.

In Worst-Case Scenario, Fed Sees $501 Billion in Losses at Nation's Biggest Banks (Dana T.)

This is the fourth year the Fed has done stress tests on the country's biggest financial institutions. It looked at 30 institutions this year, up from 18 in previous years. Just one, the Salt Lake City-based Zions Bancorp, wouldn't meet the Fed's minimum standards for capital in a worst-case scenario.

NASA Study Concludes When Civilization Will End, And It's Not Looking Good for Us (gillbilly)

The worst-case scenarios predicted by Motesharrei are pretty dire, involving sudden collapse due to famine or a drawn-out breakdown of society due to the over-consumption of natural resources. The best-case scenario involves recognition of the looming catastrophe by Elites and a more equitable restructuring of society, but who really believes that is going to happen? Here's what the study recommends in a nutshell...

Fed pivot from unemployment to inflation illustrates QE addiction (Herman J.)

“Fed policy is the reason the market rallied. It’s the reason that the real estate market rallied. If the Fed takes away those monetary props, the markets will implode, and we’ll be right back in recession. I think the Fed has to know this, and so all the talk about removing those supports is just talk.”

Women Change the Face of Japanese Farming (jdargis)

Yukako Harada, 29, a nutritional scientist from Kobe, joined the farm in 2009 after meeting Takahashi as a student. “Women are very different from men as farmers,” says Harada. “Women are natural mothers, so they are often more nurturing than men, raising vegetables and crops the way they would raise their own children. This makes them very good farmers.”

BP Return to Gulf of Mexico Marks U.S. Energy Sea Change (James B.)

Since the 2010 rig disaster, onshore developments have put the United States at the top of the international oil heap. In its short-term market report, published last week, the Energy Information Administration said strong crude oil production, primarily in the Bakken, Eagle Ford and Permian shale basins onshore, should continue through 2015. By then, the United States will be producing about 9.2 million barrels of oil per day, a 22 percent increase from last year.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/20/14

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."


saxplayer00o1's picture
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Arthur Robey's picture
Arthur Robey
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Posts: 3936
8 Bankers so far in 2014

The reign of bankers continues.

Blindly obvious conclusion. "She's gonna blow!"


HughK's picture
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Posts: 764
Dueling maps


So, it's official, at least from Russia's point of view:

Putin signs laws completing procedure to absorb Crimea into Russia

Someone has already updated the map of the Russian Federal Subjects (i.e. states/provinces) to include Crimea and Sevastopol on the Russian-language version of the Wikipedia's article on Russia.  The English-language version of Wikipedia's article still contains the old map.

Here's the Russian-language map.  Crimea is the small green area furthest to the left of the map.  The original is here. 

And here's the English-language version of the same Wikipedia article on Russia, with no Crimea.



Tall's picture
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Posts: 564
The Guardian does it again!

What this means is that the real limit on the amount of money in circulation is not how much the central bank is willing to lend, but how much government, firms, and ordinary citizens, are willing to borrow. Government spending is the main driver in all this (and the paper does admit, if you read it carefully, that the central bank does fund the government after all). So there's no question of public spending "crowding out" private investment. It's exactly the opposite.

Why did the Bank of England suddenly admit all this? Well, one reason is because it's obviously true. The Bank's job is to actually run the system, and of late, the system has not been running especially well. It's possible that it decided that maintaining the fantasy-land version of economics that has proved so convenient to the rich is simply a luxury it can no longer afford.



LesPhelps's picture
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Our government money (debt) hard at work

I see that NASA has funded a study concluding that our civilization is doomed in the near future due to unsustainable resource consumption and an imbalance of wealth distribution.

Near as I can tell, we paid for, or borrowed money to pay for a study that came up with the exact same results that were published in "Limits to Growth" in the mid 1970s.  

It's so gratifying to see our money being put to good use.

Arthur Robey's picture
Arthur Robey
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Posts: 3936
Thinking about the LTG

I am wondering how Nash's competition theories would impact the LTG models.

It looks as though I have another book to read.

The simple insight underlying John Nash's idea is that one cannot predict the result of the choices of multiple decision makers if one analyzes those decisions in isolation. Instead, one must ask what each player would do, taking into account the decision-making of the others.


Can we co-operate to achieve our common survival or will we devolve into some Darwinian battle? Each to his own and the Devil take the hindmost.

Which do you favour?

Orlov discusses the consequences of the Darwinian approach in his book the 5 Stages of Collapse. It ain't pretty. When we reach the level of the Ik I am divorcing humanity. It will have nothing in common with me.

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