Daily Digest

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Daily Digest 6/10 - Remaking The Idea Machine, World Oil Demand Rises As OPEC Meets

Tuesday, June 10, 2014, 11:03 AM

Economy

CHART OF THE DAY: Iron Ore Prices Are Down 18% In 2014 (Arthur Robey)

Yesterday’s RBA Commodity Price index suggested that the Aussie dollar is around 10% overvalued and this report from HSBC simply reinforces that with our biggest export tanking in 2014, the RBA is probably right to be wanting the Aussie dollar lower – otherwise our export earnings might tank too.

Silicon Valley Tries to Remake the Idea Machine (jdargis)

Most of the insurgent tech companies, with their razor focus on advancing the Internet, were too preoccupied to set up their own innovation labs. They didn’t have much of an incentive either. Start-ups became so cheap to create — founders can just rent space in the cloud from Amazon instead of buying servers and buildings to house them — that it became easier and more efficient for big companies to simply buy new ideas rather than coming up with the framework for inventing them. Some of Google’s largest businesses, like Android and Maps, were acquired. “M. and A. is the new R. and D.” became a popular catchphrase.

Houston, We Have A Problem or Market Extremes are Back (GE Christenson)

Gold has fallen back to 2010 levels, but has not reached the June and December 2013 lows. Gold is also very over-extended on the down-side and indicators have turned up. Technical indicators for gold look similar to last December – before a decent rally.

Obama's Student-Debt Plan Won't Fix America's College Crisis (jdargis)

The pay-as-you-earn plan is appropriate and targeted. It carries relatively few downsides, and it will help some students get on with their post-graduate lives. But we shouldn't expect it to “fix" much now, because the existing program hasn't "fixed" much already. Libby Nelson reports that just a tiny fraction of eligible borrowers are currently using Pay As You Earn. This is like giving somebody with a broken leg a half-off coupon for crutches—a perfectly decent ameliorative option that only works if the injured party chooses to use it.

For Western Oil Companies, Expanding in Russia Is a Dance Around Sanctions (jdargis)

Along with Exxon, BP of Britain and Total of France also signed contracts at the business forum in St. Petersburg to explore for shale oil in Russia. Exxon plans to drill its first exploratory well offshore in the Russian sector of the Arctic Ocean this summer. Statoil of Norway is in talks for another shale joint venture. Royal Dutch Shell’s chief executive, Ben van Beurden, met with Mr. Putin in April and told him, “Now is the time to expand,” referring to a liquefied natural gas plant project.

Debt Rattle Jun 9 2014: Stupidity Is Not A Valid Defense For Us (Tall)

And nothing will ever take the place of oil; once those unique carbons aregone, that’s it, we’ll have to find a completely different way of running our societies, and if we’re not smart enough to prepare for that beforehand, we’ll be cats fighting in a sack and use the last scraps to kill off each other. And our legacy won’t be the Greek thinkers and Picasso and Dostoyevsky and Walt Whitman and Maria Callas, since there won’t be the means for our children anymore to share what makes man great between them. Our main legacy will instead be bloodshed, we will have gone the exact same path that any non-thinking or even primitive organism would have taken, who don’t have opera or philosophy or poetry to their name.

OPEC Meets As World Oil Demand Rises, Production Sputters (James S.)

Last December, as OPEC prepared to meet in Vienna, Bloomberg News reported that analysts it polled had predicted that the oil cartel would leave its production quota unchanged in the face of a growing supply glut. Despite its plans, “falling oil demand and prospects for increased supply from some member states mean the group’s leader, Saudi Arabia, will have to cut production anyway,” Bloomberg predicted. The age of abundance appeared to be upon us.

BPA in Thermal Printer Ink (Chris M.)

Thermal printing ink, e.g. BPA plus an acid-sensitive dye, smeared over the whole surface of the special thermal paper. Heating the paper in the printer head causes the BPA, which is a weak acid, to release its protons and react with the dye to produce a colored pigment. In order to make the printing visible, a lot of initially colorless ink has to be coated on the paper. That means that perhaps 5% of the weight of the thermal printer paper is BPA and that BPA is all on the surface and able to rub off onto your hands!

Gold & Silver

Click to read the PM Daily Market Commentary: 6/9/14

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."

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saxplayer00o1
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Oil executive son's powerful

Oil executive son's powerful testimony at Enbridge Northern Gateway pipeline review panel

Someone who 'Get's It'

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