Daily Digest

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Daily Digest 9/23 - A Global Carbon Tax, Has The Gold Price Drop Run Its Course?

Tuesday, September 23, 2014, 9:45 AM


‘Poor people don’t plan long-term. We’ll just get our hearts broken’ (jdargis)

Rest is a luxury for the rich. I get up at 6am, go to school (I have a full course load, but I only have to go to two in-person classes), then work, then I get the kids, then pick up my husband, then have half an hour to change and go to Job 2. I get home from that at around 12.30am, then I have the rest of my classes and work to tend to. I’m in bed by 3am. This isn’t every day, I have two days off a week from each of my obligations. I use that time to clean the house and soothe Mr Martini [her partner], see the kids for longer than an hour and catch up on schoolwork.

The Fight Of Their Lives (jdargis)

The fighting between ISIS and the Kurds stretches along a six-hundred-and-fifty-mile front in northeastern Iraq—a jagged line that roughly traces one border of Iraqi Kurdistan, the territory that the Kurds have been fighting for decades to establish as an independent state. With as many as thirty million people spread across the Middle East, the Kurds claim to be the world’s largest ethnic group without a country. Iraqi Kurdistan, which contains about a quarter of that population, is a landlocked region surrounded almost entirely by neighbors—Turkey, Iran, and the government in Baghdad—that oppose its bid for statehood.

Feds say Bitcoin miner maker Butterfly Labs ran “systematic deception” (jdargis)

For the past year, BFL insisted that mere manufacturing delays were to blame for the company's woes. However, suspicion of active fraud never died down. In fact, it's gotten worse after it came to light that Butterfly Labs' largest shareholder, Sonny Vleisides, violated the terms of his probation in a previous lottery scam case where he took a plea deal. As a result, Vleisides’ probation—previously slated to end in September 2013—continued for another two years.

The judge who extended Vleisides’ probation gave some damning comments about Butterfly Labs in a January 2014 court hearing...

Has The Gold Price Drop Ran Its Course? (Taki T.)

As evidenced on the next chart, gold’s move down to $1210/12 coincides with a couple of Fibonacci extension levels, based on gold’s rally from December 27th till the end of February of this year. Gold’s momentum indicator shows a significantly oversold reading. However, “oversold” is not a valid timing indicator, as an asset can remain oversold for several days or weeks. It also does not help in determining support levels in terms of prices.

Gold And Silver - Current Price Is The Story (Thomas C.)

We start with silver because it just broke to low levels not seen for the past 4 years. The importance of acknowledging the trend deserves front and center attention because this simple circumstance is so often overlooked for its power to prevail over price direction. Bearish spacing is also mentioned because of what it connotes: a bearish undertone in the market. With successive lower swing highs, the message of both the trend and bearish spacing have gone unchallenged, and that means there is no way the down trend can end. The KISS principle at work.

Could Low Oil Prices Point To A Debt Bubble Collapse? (James S.)

Oil and other commodity prices have recently been dropping. Is this good news, or bad?

I would argue that falling commodity prices are bad news. It likely means that the debt bubble which has been holding up the world economy for a very long–since World War II, at least–is failing to expand sufficiently. If the debt bubble collapses, we will be in huge difficulty. Many people have the impression that falling oil prices mean that the cost of production is falling, and thus that the feared “peak oil” is far in the distance. This is not the correct interpretation, especially when many types of commodities are decreasing in price at the same time. When prices are set in a world market, the big issue is affordability. Even if food, oil and coal are close to necessities, consumers can’t pay more than they can afford.

We Need A Global Carbon Tax (jdargis)

Economists, of course, constantly debate who wins and who loses from carbon taxes, even if they all agree that increasing the price of carbon by fiat is much better than any other hodgepodge of fixes. The immediate effect of carbon taxes is an increase in carbon prices, and this is largely regressive, falling on households and countries with low incomes.

U.N. climate summit is high-profile, but some of world’s most important leaders will skip it (jdargis)

And the two countries are not only the first and second most populous countries on Earth; research shows they also were the first- and third-biggest producers of carbon dioxide emissions (the United States holds the No. 2 spot). That figure can only partly be explained away by their huge populations: One study showed that per capita emissions from China recently surpassed that of the European Union, and India is predicted to follow suit in five years.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/22/14

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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Repost Of Today's Headlines


  1. Venezuela's Maduro launches civilian disarmament plan
  2. Gold Reserve says awarded $740.3 mln in Venezuela Brisas arbitration
  3. Eurozone business growth slows in September, PMI survey finds
  4. ECB will use 'unconventional tools' to spur eurozone growth
  5. WHO: 21,000 Ebola cases by November if no changes
  6. Ebola Cases Could Reach 1.4 Million in 4 Months, C.D.C. Estimates
  7. U.K. budget deficit widens as data is overhauled
  8. Denmark to miss EU deficit goal as central bank cuts growth view
  9. South Korea's national debt nears 490 tln won in 2013: gov't data
  10. Obama Administration Issues New Rules to Combat Tax Inversions
  11. Lack of liquidity in corporate bonds hits index funds
  12. Fed's Kocherlakota calls for clarity on inflation target
  13. Yuan Gaining Momentum in Russia
  14. Hong Kong central bank warns of 'very high' risks linked to higher rates
  15. Costa Rica to Accelerate VAT Reform After Downgrade
  16. Ukraine Eurobonds plunge as markets sense restructuring pain
  17. Hedge Funds Circling Venezuela as Yields Top 15%
  18. IMF Says Zimbabwe Must Repay Debt to Be Eligible for More Credit
  19. Atlantic City's credit rating is downgraded
  20. Wholesale Water Supplier To Half California’s Population Quickly Running Through Supplies As Drought Drags On
  21. Detroit Residents: Restore Our Water
  22. Ukraine crisis risks recession for Europe: El-Erian
  23. Pennsylvania Rating Cut to Lowest Since ’97 by Fitch on Pensions
  24. Sound off: Phoenix's potential deficit
  25. Ukraine Vows to 'Punish' Speculation That Weakens Currency

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