Daily Digest

Image by David Hilowitz, Flickr Creative Commons

Daily Digest 5/18 - Unsold American Cars Are Piling Up, China To Evacuate Workers From Vietnam

Sunday, May 18, 2014, 12:41 PM

Economy

Vietnam riots: China ships to evacuate workers (cmartenson)

Officials said "illegal acts" would be stopped as they could damage national stability.

However, dissident groups have urged people to rally again in major cities on Sunday and the authorities broke up some anti-China protests in Hanoi and Ho Chi Minh City.

Everyone should know just how much the government lied to defend the NSA (cmartenson)

In a sharply divided opinion, the supreme court ruled, 5-4, that the case should be dismissed because the plaintiffs didn't have "standing" – in other words, that the ACLU couldn't prove with near-certainty that their clients, which included journalists and human rights advocates, were targets of surveillance, so they couldn't challenge the law. As the New York Times noted this week, the court relied on two claims by the Justice Department to support their ruling: 1) that the NSA would only get the content of Americans' communications without a warrant when they are targeting a foreigner abroad for surveillance, and 2) that the Justice Department would notify criminal defendants who have been spied on under the Fisa Amendments Act, so there exists some way to challenge the law in court.

American Automobile Glut? Unsold Cars Are Piling Up (jdargis)

Inventory is a dirty word to most supply-chain managers. After all, it was a “just-in-time” factory system that helped Toyota (TM) muscle its way to the top of the industry, and there’s nothing timely about 3 million unsold cars. But there are a few, very real reasons for car executives to be confident. For one, interest rates are still relatively low and car loans are easy to come by, even for those with poor credit. There is pent-up demand because the 2008 recession spooked so many drivers into holding on to an aging ride for a little while longer.

3D Printer Builds 10 Small Houses a Day for $5,000 Each (Chris M.)

Professor Behrokh Khoshnevis has designed the giant robot that replaces construction workers with a nozzle on a gantry, this squirts out concrete and can quickly build a home according to a computer pattern. It is “basically scaling up 3D printing to the scale of building,” says Khoshnevis. The technology, known as Contour Crafting, could revolutionise the construction industry.

Deep Ties, Tested on Mexico’s Border (jdargis)

“Los van a matar"(they will be killed), a girl with a ponytail said. “People come from Mexico because there’s no jobs,” another student said. Suddenly, everyone was engaged and shouting — “To be safe!” “In Mexico, they steal your organs and sell them!” — until a petite girl near the front quietly added: “They want a better life.”

How To Win Millenialls (jdargis)

The survey also suggests Millennials place a high value on equality. Respondents were given a list of values and asked, "Which TWO are most important given the challenges we face as a country?" This bar chart shows the percentage citing each value in response, with equality and economic opportunity mentioned by the largest percentage of respondents. Perhaps unsurprisingly, respondents who identified themselves as Democrats prioritized equality and opportunity while self-identified Republicans ranked personal responsibility and accountability higher.

Growing evidence points to systemic troubles in VA healthcare system (jdargis)

The 1,700 hospitals and clinics in the VA system — the nation's largest integrated healthcare network — now handle 80 million outpatient visits a year. Veterans Affairs Secretary Eric K. Shinseki promised to solve growing problems with patient access when he took over in 2009, and he has been successful in some respects: Iraq and Afghanistan veterans are using VA healthcare at rates never seen in past generations of veterans, and a growing number of Vietnam veterans are receiving VA care as they age.

Shale Drillers Feast on Junk Debt to Stay on Treadmill (cmartenson)

“There’s a lot of Kool-Aid that’s being drunk now by investors,” Tim Gramatovich, who helps manage more than $800 million as chief investment officer of Santa Barbara, California-based Peritus Asset Management LLC. “People lose their discipline. They stop doing the math. They stop doing the accounting. They’re just dreaming the dream, and that’s what’s happening with the shale boom.”

Gold & Silver

Click to read the PM Daily Market Commentary: 5/16/14

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."

6 Comments

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

Now what they have to do is put two and two together and use sporosarcina pasteurii, sand and urea and we could have very cheap housing that uses no Portland cement.

Portland cement is a major contributor to greenhouse gasses- and even if you place no value on preventing greenhouse gasses you will have to admit the other benefits.

Unless you are a buggy whip manufacturer, of cause.

Hrunner's picture
Hrunner
Status: Gold Member (Offline)
Joined: Dec 28 2010
Posts: 256
Both Pfizer and Government Struggling
Drug giant Pfizer is trying to buy slightly smaller, but still giant, Astra Zeneca.
Pfizer claims this is to address R and D pipeline concerns.  And to gain "efficiencies", meaning have twice as many products contributing to cash flows, but layoffs mean half as many workers (and buildings).  
 
But analysts believe this is equally about getting Pfizer's headquarters out of the U.S. due to taxation burdens.  U.S. is one of the highest corporate tax jurisdictions in the world.  
 
 
 
 
Key quotes
"As soon as news of the offer became public last month, trade unionists, Labour Party members and the usual media suspects began warning of jobs cuts, delayed drug development and the loss of a national scientific asset"
 
"Meanwhile, American politicians are objecting to Pfizer's bid because it would let the company change its tax domicile out of the U.S. This could allow it to save $1 billion a year in tax payments because AstraZeneca pays a lower corporate rate in the U.K. than Pfizer does in the U.S. Michigan Senator Carl Levin is bellowing that this has to stop, though he has been a primary architect of the punitive tax rate that gives Pfizer every incentive to relocate overseas. It's so much easier to demagogue companies for acting in their self-interest than it is to fix Mr. Levin's anticompetitive mess of a U.S. tax code."
 
Seems like everyone in this story has their hands out for more money- Pfizer shareholders demand more profit in a world of shrinking topline growth and margins, Labor Unions want more (or at least the same) salaries in a world where the labor market is global, and U.S. politicians want the tax sugar to keep flowing from corporate American to support their glorious centrally- planned programs, government subsidized voter bribes and donor paybacks.
 
Now do you understand what Jim Rickards means when he says we don't have a cyclical problem, we have a structural problem?
 
We are trying to solve a structural problem, with a cyclical solution. 
 
If I may translate- Cyclical solution = dump oceans of liquidity via money printing to drive aggregate demand (right in the face of a world of too much debt, tightening resources and growing population) versus Structural solution = Decrease the size, scope and debt burden of government, lower the cost of drug development through improved regulatory pathways, cut taxes on corporations, allow deflation to happen and put a few over-leveraged and fattened banks out of business (versus causing inflation) and cut personal income taxes so that workers don't need subsidized salaries to support a comfortable standard of living.
 
Governments and short-sighted individuals want cyclical (easy) solutions, even though these will eventually fail.  No matter, live for today.  Let the future take care of itself.
 
I want a structural solution.  I am willing to suffer short term for a better future for my children.  I also know the pain will be lower and more manageable if we have a controlled landing as opposed to a crash.  But that takes adults, not children.  And people of character.

H

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Are you deprived?

Do be a dear and tell Big Pharma to stop squatting on drugs that cure diseases, HRunner.

For instance I have just found out that I am infested with H.Pylori ,which of cause is treatable with antibiotics, much to the chagrin of Big Pharma who were making a killing with all sorts of pink pills for symptomatic relief.

I see that they are not about to allow this golden goose die without a fight. From Wiki.

However, over 80 percent of individuals infected with the bacterium are asymptomatic and it has been postulated that it may play an important role in the natural stomach ecology.

So tell me Muggins, what about the poor deprived 50% who are not infected?

Capitalism is getting a bad reputation.

SingleSpeak's picture
SingleSpeak
Status: Platinum Member (Offline)
Joined: Dec 1 2008
Posts: 505
Reopen Case?

Does anyone know if a case can be reopened when it is proven that a party, in this case the Justice Dept., lied by saying that the NSA was not gathering surveillance in order to have the case thrown out. Would the ACLU need to file a new case?

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1449
Re: American Automobile Glut? Unsold Cars Are Piling Up

This article is from July 2013!

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1627
Why won't people accept the dismal reality of our situation?

Why won't people accept the dismal reality of our situation?

http://twoicefloes.com/original-sin/#more-5749

I strongly resonate with CD's perspective here.  We can't start by blaming people who won't see the truth because it's too disturbing and we can't start by blaming the power-hungry and greedy .01%.  Eventually (and the sooner the better), wethepeople have to get around to examining ourselves and our role in creating and maintaining the predicament we're in.

In the end, we need a "spiritual" renewal as individuals, as families, as communities, and as a nation.

Tom

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments