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Daily Digest 12/10 - Stimulus to Accelerate in 2015, How Much Is $18 Trillion?

Wednesday, December 10, 2014, 9:54 AM


Think Central Banks Are Done? Stimulus to Accelerate in 2015

If you expect global central banks to unwind stimulus next year, you’re probably wrong. In fact, the world’s monetary policy makers are set to open the cash spigot by the most in four years in 2015. Major central banks will together add almost three times more liquidity next year than they did in 2014, according to Credit Suisse Group AG analysts.

SNB Threatening Negative Rate Awaits Draghi’s Next Move

Policy makers at the Swiss central bank have pledged numerous times to “immediately” supplement their three-year-old cap if needed, with options including a charge on sight deposits. While no change is forecast at their policy meeting in Bern this week, their willingness to follow through may be tested early in 2015.

Yay! Longer Yellow Traffic Light Phases Now Required by Caltrans (Blog)

Jay Beeber, executive director of Safer Streets L.A, argues that shorter yellow-times make our roads less safe because they can inspire motorists to slam on their breaks and risk getting rear-ended. He says that, in some cities, the short yellow lights are purposely timed to snap drivers running red lights and help to send off revenue-generating $500 tickets.

Tent cities rise amid affordable housing shortage in Silicon Valley

Back in this country, we turn now to a look at the homeless in Silicon Valley. Their very existence is evidence of a widening income divide in one of the wealthiest and fastest growing regions in the nation.

Most of ECB Council backed idea of QE last week, Makuch says

Makuch said the probability the ECB will take further policy measures has increased after the bank's staff downgraded their economic projections last week.

The ECB slashed its forecasts for growth and inflation over the next two years, saying the outlook had deteriorated since its last staff forecasts were published in September.

Venezuela GDP shrank 4.2 pct through third quarter, opposition says

Venezuela's economy shrank by 4.2 percent in the first three quarters of 2014, an adviser to the country's main opposition group said on Tuesday, after almost a year of official silence about the state of the OPEC nation's economy.

IMF warns Ukraine bailout at risk of collapse

The International Monetary Fund has identified a $15bn shortfall in its bailout for war-torn Ukraine and warned western governments the gap will need to be filled within weeks to avoid financial collapse.

No Escape From Pension Math in Pennsylvania

Pennsylvania’s credit has been cut three times this year, to two steps below the average for U.S. states. The grade may fall further if Wolf can’t plug revenue misses, said Bill Delahunty, the head of municipal research in Boston at Eaton Vance Management. Borrowing costs for the sixth-most-populous state may rise should the new governor fail to address the pension burden, said Paul Brennan, a money manager at Nuveen Asset Management, which oversees about $110 billion in munis.

National Debt: How Much is $18 Trillion?


Beware of 2015 health insurance individual mandate penalty

The final penalty amount cannot exceed the national average cost of “bronze coverage” (a new term of art) for your household. For 2014, the national average cost for bronze coverage was $204 per person per month or $1,020 per month for a family of five or more. The 2015 national average for bronze coverage won’t be revealed until late next year.

Job health insurance costs rising faster than wages

Total premiums for covering a family through an employer-based plan rose 73 percent from 2003 through 2013, while workers' personal share of those premium costs leaped 93 percent during the same time frame, the Commonwealth Fund report said. At the same time, median family income grew just a measly 16 percent.

2015 to be toughest year since recession: Minton Beddoes

2015 will be the toughest year for global business since the recession of 2008-09. That’s according to Zanny Minton Beddoes, Business Affairs Editor at The Economist.

Minton Beddoes says expect turbulence in share prices, interest rates and currencies in 2015. “It’s not a grim prediction,” she says. “It is a prediction for more volatility.”

Russia’s economy to contract 0.7% in 2015: World Bank

The World Bank on Tuesday predicted that Russia’s economy would shrink by 0.7 percent in 2015, but warned that the contraction would be worse if oil prices were to keep sliding.

Greece’s stock market just suffered its worst collapse ever

"Here’s why that’s important: Far-left party Syriza currently is leading the early polls and it seems likely they would win a snap election. This is how to think about Syriza:

The party has been calling for an end to austerity in Greece
Has been campaigning for market-unfriendly measures
Is firmly against the international bailout program that helped the country avoid a default during the depths of its financial crisis."

Portland-area water rates rising as pipes break, infrastructure costs mount (Maine)

About 20 percent of the district’s piping, including 1,000 miles of mains, is more than 80 years old, according to Clements. It is predicted the area needs nearly $150 million worth of new mains over the next two decades to avoid water delivery problems. The problems are already serious.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/9/14

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."


saxplayer00o1's picture
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Posts: 4263
rjs's picture
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Posts: 445
the rich are different...

Under Voluntary Water Restrictions, Poor People Conserve While Rich People Use More - California is suffering through the worst drought in 1,200 years. So what are we doing about it? In L.A., Mayor Eric Garcetti has called for a voluntary cutback of 20 percent. Sounds reasonable, except that history shows voluntary restrictions don't do much. Actually, according to data compiled by Dr. Caroline Mini for her dissertation at UCLA, low-income people do conserve a little bit under voluntary drought restrictions. But rich people actually use a little more. Mini looked at data from the L.A. Department of Water and Power from the last drought, which lasted from 2007 to 2010. During that period, the DWP imposed voluntary restrictions, then mandatory restrictions, and then finally raised the price of water. As Adam Smith might have predicted, raising the price was the most effective way to reduce demand. Mandatory restrictions alone were less effective, and voluntary restrictions were pretty ineffective. But it gets really interesting when Mini breaks the data down by income groups:This graph shows shows the effect of water-use restrictions, broken down by income categories. Low-income neighborhoods are represented by light gray bars, medium-income areas by dark gray bars, and high-income neighborhoods by black bars. When voluntary restrictions were first imposed, in July/August 2007, low-income areas cut water use by 1.8 percent. Rich areas increased their usage 1.1 percent. In September/October 2007, low-income areas cut their use by 1.2 percent, while rich areas increased their use again by 1.1 percent. The disparity continued in May/June 2008, when low-income areas reduced usage by 4.2 percent, and rich areas increased by 0.5 percent. It only started to even out — and then rich people started to conserve more than poor people — when mandatory restrictions and price increases went into effect.

sand_puppy's picture
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Bankers prepping for collapse??

If this turns out to be false, I'll be pretty embarrassed.  But here it is:


Why Is The US Treasury Quietly Ordering "Survival Kits" For US Bankers?

The Department of Treasury is [purchasing] its employees who oversee the federal banking system ...  survival kits will be delivered to every major bank in the United States and includes a solar blanket, food bar, water-purification tablets, and dust mask (among other things). The question, obviously, is just what do they know that the rest of us don't?

The survival kits must come in a fanny-pack or backpack and include a solar blanket, a 2,400-calorie food bar, water purification tablets, a dust mask, poncho with hood, a rechargeable lantern with built-in radio, and an “Air-Aid emergency mask” for protection against airborne viruses.  Several medications are mentioned.

Survival kits will be delivered to every major bank in the United States.

Items will also be delivered to all OCC offices across the country.

The agency, OCC, has roughly 3,814 employees, each of which would receive a survival kit. The staff includes “bank examiners” who provide “sustained supervision” of major banks in the United States.

Arthur Robey's picture
Arthur Robey
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Posts: 3936
Reactionless thrust

I don't know where to put this but it is interesting never-the-less.

A scientist/engineer has created a (small) reactionless drive. This is the holy grail of space travel. At the moment it is a proof of concept and has shown to work. We do not know how powerful the thrust will be from a design with al the equations worked out.

Basicaly it works by adding and subtracting energy to increase and decrease the mass of one body that is used against another fixed mass body. Remember the mass/energy equation offered by Einstein?

We tend to think of mass as a fixed quantity, but this is not necessarily so. We certainly know that mass is convertible into energy, as this happens on a daily basis in fission reactors. The general theory of relativity also describes an increase in mass that occurs with velocity, although the effect is negligible in everyday life.

Here is a thought concept of how it works.


Michael_Rudmin's picture
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Posts: 972
This almost seems ridiculous

Having a 'survival kit' in an urban area is not going to greatly affect a person's chance of survival.

I strongly suggest that the purpose of the survival kit is to:

1) give a cookie to a favored supplier
2) as an 'incentive' from a favored supplier
3) To enable examiners to stay on duty in event of a power outage (worst case) or a overly long priority job (typical case), when they really need to be at the jobsite

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