Daily Digest

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Daily Digest 2/10 - Inefficiencies Abound In U.S. Shale, Samsung May Be Eavesdropping On You

Tuesday, February 10, 2015, 10:55 AM


Apple and Microsoft: $300 billion in cash just isn't enough (Dana T.)

The companies are telling us they think yields may go higher from here. Apple famously nailed the absolute low for corporate debt yields in 2013 issuing $17 billion at the rock bottom. If you look at the long term for the 10-year rates you can see they didn't get as low as they were in 2013 until last week when, yes, Apple hit the offer again.

The Companies Bob Moriarty Loves for the Long Term (Kevin J.)

Currencies are failing. Everybody's in a rush to the bottom and the U.S. dollar is just the cleanest dirty shirt. The fact that the dollar has been going up so much is not a sign of financial health; it's a sign of financial disease. Things go down faster than they go up. Everyone who bet on the dollar and on the S&P 500 is going to end up reversing their positions.

The really big Kahuna is the bond market. When the bond market goes, things will get real interesting.

4 Maps Crucial to Understanding Europe's Population Shift (jdargis)

Europe’s population is shifting to the Northwest. The GDP in its more easterly nations seems to be booming, while the countryside and many smaller cities continue to empty at the expense of the great conurbations. And while Europe’s southern nations continue to suffer under austerity, cities around the Mediterranean are nonetheless among the fastest growing in terms of population. These are just some of the key demographic shifts outlined in a recent report [PDF] from Bloomberg Philanthropies and LSE Cities. While the report focuses overall on the 155 submissions made to last year’s first ever Europe-based Bloomberg Philanthropies Mayors Challenge, its data provides a fascinating snapshot of a continent on the move.

Shhh, Not in Front of the TV! Samsung May Be Eavesdropping on You (jdargis)

A spokesperson for the company told CNBC that Samsung "takes consumer privacy very seriously," while adding that the company "does not retain voice data, or sell it to third parties. If a consumer consents and uses the voice recognition feature, voice data is provided to a third party during a requested voice command search."

Inefficiencies Abound In U.S. Shale (Evan K.)

Recent well performance in the Eagle Ford Shale play has declined among key operators. This is due in part to especially poor well performance by a few operators. Excluding those operators, well performance for 2013 and 2014 was still poorer than in 2012 but improved in 2014 compared with 2013. When I wrote that Eagle Ford well performance was declining in a recent post, some readers were indignant as if a shale play somehow deserves a pass on the laws of physics and eternally gets better instead of eventually declining as all plays do.

“Never confuse production with reserves” is one of Halloran’s Immutable Principles of Energy. Wells may produce at relatively high rates but never reach commercial reserve levels because of cost or declining well performance over time despite high initial rates. Published analysis of shale plays too often stresses success based on production volumes but not reserves, production rates but not the cost, the benefits of technology but not its price, and claims of profit that exclude important expenses.

Turning Carbon Dioxide Into Rock, and Burying It (jdargis)

Ms. Snaebjornsdottir and her colleagues are certain that the process works, but the cores — eventually hundreds of feet of them — will undergo detailed analysis at a laboratory in Reykjavik, Iceland’s capital, to confirm that the calcites resulted from the CO2 injection.

Beyond a Blind Date with Science (Eric G.)

The interplay between science and politics is messy, particularly with regard to controversial issues that have social relevance. In his book Honest Broker: Making Sense of Science in Policy and Politics, Roger Pielke Jr. proposes four roles that scientists and experts can play in policy and politics: a Pure Scientist, a Science Arbiter, an Issue Advocate, and an Honest Broker. A Pure Scientist engages in research while remaining uninterested in how the information they create will be used. Science Arbiters provide empirical information to decision makers upon request, but avoid trying to influence the final decision.

Scorched earth, 2200AD (jdargis)

It’s also instructive to look back at the last time Earth was inhabited by 500 million humans, in the 17th century, coincidentally also a time of tremendous climate-induced upheavals. This is considered the Early Modern period of Europe – think Newton, Rembrandt, Galileo and Louis the XIV. The parallels between what happened then and the challenges facing us today are remarkably similar. Historians have called this era the General Crisis because wars raged almost non-stop across the globe, including the Thirty Years War, and the collapse of the Ming Dynasty in China and the Stuart monarchy in England.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/9/15

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."


Thetallestmanonearth's picture
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People of Ukraine against war

The video in this article confirmed everything I need to know about the crisis in Ukraine.  God bless this woman and people like her willing to stand up against war. Damn the consequences!   War almost never serves the people, it is always for the benefit of the elite.  Why don't they go and fight? (end rant)


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sand_puppy's picture
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CHS--Greece should leave the Euro and adopt the US dollar



What Looks Crazy at First Might Be the Ideal Solution: Meet Greece's New Currency, the U.S. Dollar   (February 9, 2015) 

After an informative discussion on the reason that the Euro is unstable, CHS suggests a way out for Greece.  Forget the drachma for now, leave the Euro and adopt the US dollar for it currency.

So here is the 3-point plan:


1. Renounce all debts denominated in the euro, i.e. a 100% writedown.

2. Accept the U.S. dollar as the national currency of Greece.


3. Engage in a transparent national dialog and reach a consensus about taxation and the role of the state in the Greek society and economy.


There is a compelling internal logic to Greece adopting the US dollar as its currency: when trust in national currencies and institutions is lost, then the black market becomes the trustworthy place to engage in trade. The world's favorite black market currency is of course the U.S. dollar. In this sense, for Greece to officially accept the U.S. dollar as its currency is simply a recognition of the natural progression from a currency that is no longer viable to one that is.

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Humor headline of the day: "Currency warriors"

"The world's top finance leaders on Tuesday in effect backed currency depreciation as a tool for promoting growth by signaling strong support for aggressive easy-money policies aimed at boosting the fragile global economy.

The support by finance ministers and central bankers from the Group of 20 largest economies for mass monetary easing--policies that have weakened exchange rates from Europe to Japan--is at odds with the traditional view that currency depreciation could have damaging effects on other economies."


 It's not just central banks. Here's someone else who keeps trying the same thing and keeps failing. Notice the ears.

pinecarr's picture
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This Man Will Never Be Invited Back On CNBC

Gotta love this!  From ZH:

And now for something completely unexpected: 2 minutes of pure truth (courtesy of Mizuho's Steve Ricchiuto) on CNBC...

148 seconds of awkward uncomfortable truthiness...


P.S.  I found the GS ad, with a picure of a great big stadium (filling up with water?) more than a little ironic  at the beginning of the clip...

P.S.S.  Also gotta love this:

It was Sara Eisen that had the quote of the brief clip... (which has unbelievably been edited out since we posted it seems at around the 1:40 mark) when faced Steve's barrage of facts about the real economy, replied:

"but the key is that's not what The Fed is telling us."


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