Daily Digest

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Daily Digest 3/26 - Resilient Asset Allocation, Bejing To Shutter Major Coal Plants

Thursday, March 26, 2015, 10:31 AM

Economy

Saudi Arabia Imposes Naval Blockade On Red Sea Strait, Deploys 150,000 Troops As Iran Condemns Military Action (pinecarr)

As noted earlier, the biggest significance of any Yemen conflict has little to do with its own domestic oil production, which at 133,000 bpd is negligible, but due to its location, which not only shares a border with Saudi Arabia, but more importantly due to the Bab el-Mandeb strait which connects the Red Sea with the Gulf of Aden: it is the fourth-biggest shipping chokepoint in the world by volume (3.8 million barrels a day of oil and petroleum products flowed through it in 2013) and is just 18 miles wide at its narrowest point. It’s located between Yemen, Djibouti, and Eritrea, and connects the Red Sea with the Gulf of Aden and the Arabian Sea.

Where Will the Graphite, Lithium and Cobalt for the Battery Revolution Come From?: Simon Moores (Kevin J.)

Following the lead of Tesla Motors, LG Chem, Foxconn and others are racing to build megafactories to build batteries for electric cars. Yet even now the world supply of graphite, lithium and cobalt needed to supply these factories is insufficient. In this interview with The Mining Report, Simon Moores, managing director of Benchmark Mineral Intelligence, explains that we can soon expect healthy prices for all three metals, but the juniors that will succeed in the market must first and foremost learn to meet the needs of the end users.

We Are All Trapped: Alasdair Macleod (Herman J.)

We are all trapped, and it’s not going to take very much to change the valuations in the markets, and the effect on the gold price could happen at the same time, and it could be very, very dramatic.

Global Financial Markets Are More Distorted Than Ever Before (Taki T.)

Mr. Zulauf is known for his strong advocacy of cycle theory. Based on his forty-year experience with financial markets, he expressed that the current cycle is very unusual, because never before have we seen authorities led by central banks intervening on such a large scale and pumping so much money into the system. According to Mr. Zulauf, “global financial markets are more distorted than ever before and accordingly, the risks are very high.” This, of course, makes investment decisions very difficult.

Slaves kept in locked cages catch seafood that ends up in global supply chain: ‘I want to go home. We all do’ (westcoastjan)

The men the AP interviewed on Benjina were mostly from Myanmar, also known as Burma, one of the poorest countries in the world. They were brought to Indonesia through Thailand and forced to fish. Their catch was then shipped back to Thailand, where it entered the global stream of commerce.

Resilient Asset Allocation (Jim R.)

Considering all possible scenarios the future may present to us is impossible. It is simpler to gather asset which have diverse and broad attributes. The attributes I list below are a guide to help you group your assets into classes. Not all geographies support the same classes. For example, if you live in the UK or the US, then knowing English is enough, but if you live on the border of three regions then knowing those languages is a definite asset.

Three Triggers That Will Send Oil Crashing Again (Evan K.)

A combination of factors will conspire to send oil prices plummeting once again, as the U.S. runs the risk of flooding the market in the coming months, with storage nearing capacity, refineries headed towards maintenance season and Asian markets looking to other commodities and thus cooling demand.

Beijing to Shut All Major Coal Power Plants to Cut Pollution (jdargis)

“Most pollutants come from burning coal, so the closure will have a clear impact to reduce emissions,” Tian said. “The replacement with natural gas will be much cleaner with less pollution, though with a bit higher cost.”

Nationally, China planned to close more than 2,000 smaller coal mines from 2013 to the end of this year, Song Yuanming, vice chief of the State Administration of Coal Mine Safety, said at a news conference in July.

Massive Antarctic glacier more vulnerable than previously thought (jdargis)

This isn’t a trivial fact that can only be exploited by adventurous submarine pilots. The melting of Antarctic ice shelves is partly linked to a warming body of water called “Circumpolar Deep Water.” Although this water is warmer, it’s also saltier, and so lies beneath the Antarctic surface water. Where Circumpolar Deep Water can reach ice shelves, it boosts melt from beneath.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/25/15

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."

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