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Daily Digest 4/10 - The Renegades of Junk, Who Will Control The World's Water?

Friday, April 10, 2015, 10:25 AM

Economy

How Wall Street captured Washington’s effort to rein in banks (jdargis)

But as the evolution of Reg AB II suggests, banks and their advocates have managed to preserve many of the industry’s pre-crisis practices by focusing lobbying efforts on obscure corners of the regulatory world, far from the glare of congressional debate or public scrutiny. Many of these agencies are staffed by appointees from the industry they regulate and return to it when their stints are over.

Renegades of Junk: The Rise and Fall of the Drexel Empire (jdargis)

High-yield bonds! We never called it junk bonds, our competition did. … Nothing happened in that marketplace that we didn't have tentacles into. We were the creator of making it a real marketplace. There were some people that dabbled in it before Mike, but nobody had ever done it in such an organized fashion.

OID, SSJID defy federal fish flows (Nate)

The confrontation might have been avoided, the districts say, with a compromise agreement for managing the Stanislaus that was hammered out between the districts and federal agencies two weeks ago. While all waited for the State Water Board to approve the deal, the fisheries service – constantly monitoring river conditions – directed the bureau to release more New Melones water in a pulse flow the districts had not anticipated, Knell said.

Canadians can now pay their rent by credit card — and millennials love it (westcoastjan)

“Somebody has to pay for the cost of acceptance [of the credit card],” says Postrehovsky. “We are giving the consumer the option to pay [through a credit card].”

Louisiana Bans Cash Transactions on Used Goods (pinecarr)

The State of Louisiana has just passed new legislation BANNING cash transactions for used goods, mandating that any purchase be made via check, electronic transfers, or money order issued to the seller.

The draconian new law also requires all transactions to provide the State documentation of a description of the goods sold, and the client’s personal information including name, address, driver’s license number and the license plate number!

Gold, Greece, The Death Of Paper Money And The Modern State (Taki T.)

…a falling interest-rate structure has a deleterious effect on accumulated capital. Capital is destroyed across the board simultaneously and stealthily. By the time the damage is discovered, it is too late to do anything about it and firms go bankrupt in droves. The falling trend of interest rates is the unrecognized cause of the depression that is presently devastating the world economy.

French media groups to hold emergency meeting after Isis cyber-attack (jdargis)

The interior minister, Bernard Cazeneuve, said France had already increased its anti-hacking measures to protect against cyber-attacks following January’s gun attacks on the satirical weekly Charlie Hebdo and the bloody hostage-taking at a Kosher grocery store in Paris, which left 17 people dead.

The prime minister, Manuel Valls, called the attack on TV5Monde “an unacceptable insult to freedom of information and expression”.

Who Will Control The World’s Water: Governments Or Corporations? (Evan K.)

Now water is becoming more scarce as a resource, water management companies see their chance for profitable water provision, but criticism remains fierce.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/9/15

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."

13 Comments

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
The Middle Class Is Worse Off Than You Think

If you worry about the declining fortunes of the U.S. middle class, take heed: It might be worse than you realized.

Tracking the middle class can be difficult, because the group is hard to define. Typically, researchers look at households with incomes or net worth in the middle of the entire population. This approach, though, might provide a falsely rosy picture. It doesn’t, for example, capture the fates of families that start out in the middle and -- due to a job loss or other setback -- end up in the bottom.

http://www.bloombergview.com/articles/2015-04-10/the-u-s-middle-class-po...

saxplayer00o1's picture
saxplayer00o1
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Posts: 4148
Mark Cochrane's picture
Mark Cochrane
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Posts: 1222
Louisiana Bans Cash Transactions on Used Goods ?

Can anyone from Louisiana confirm this?

The State of Louisiana has just passed new legislation BANNING cash transactions for used goods, mandating that any purchase be made via check, electronic transfers, or money order issued to the seller.

If true, this cannot be legal can it? Every dollar bill I have states "This note is legal tender for all debts public and private". It would seem that we need some Federal shenanigans with the laws before this sort of State level machination could be viable...

Mark

 

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1889
Deep State and the One Way Mirror

Mark's comment above reminds me of the metaphor that CAF uses of the one way mirror:

1.  The masses do not even know exactly who the deep state players are, nor the details of their activities. 

2.  The deep state however knows who each of us is, the details of our financial transactions, our travel habits, networks of social contacts and water usage patterns.  Our attitudes, voting patterns, social media posts and personalities can be analyzed and scored by data mining algorithms.

Then throw in just a hint of fear (say a few "leaked" torture photos) and suddenly public dialog falls much quieter.

I am reminded of the move: Captain America:  The Winter Soldier where a computer algorithm, "Lola," has identified all the people who are likely to become threats to Hydra in the years to come--the plan is preemptive neutralization.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
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Posts: 2832
Ever play poker?

In Texas Hold'em, there's a move called "All In".  One pushes their tall stack of chips into a big pile in the middle of the poker table.  Usually the stack falls over.

 

 

DennisC's picture
DennisC
Status: Gold Member (Offline)
Joined: Mar 19 2011
Posts: 310
Legislation

Check out this link (the bill, LA HB195, it is only eight pages long) and was passed in July 2011:

https://legiscan.com/LA/text/HB195/2011

My understanding after reading this is that a second-hand dealer (a.k.a. junk dealer), is not permitted to pay you in cash for the items you are selling and must keep a record of the transaction, along with various personal identification details, for up to three years.  There is no daily reporting requirement that I could see other than the records must be maintained and available to law enforcement on request.  It also says on page 6, section C, "The provisions of this Section shall not apply to the sale or purchase of manufactured registered bullion bars, coins, or other numismatic items..."  You'll just have to read it for yourself.  I'm not a lawyer so I can't offer any legal interpretation beyond what it says.  The seeming hyperbole in the article linked today just got my "academic interests" going on this to look up more details.

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
Cash Transactions Banned

Anyone, other than a nonprofit entity, who buys,sells, trades in, or otherwise acquires or disposes of junk or used or secondhand property more frequently than once per month from any other person, other than a nonprofit entity, shall be deemed as being engaged in the business of a secondhand dealer.

A secondhand dealer shall not enter into any cash transactions in payment for the purchase of junk or used or secondhand property. Payment shall be made in the form of check, electronic transfers, or money order issued to the seller of the junk or used or secondhand property and made payable to the name and address of the seller.  All payments made by check, electronic transfers, or money order shall be reported 16 separately in the daily reports required by R.S. 37:1866.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2832
Sounds quite legal
rjs wrote:

Anyone, other than a nonprofit entity, who buys,sells, trades in, or otherwise acquires or disposes of junk or used or secondhand property more frequently than once per month from any other person, other than a nonprofit entity, shall be deemed as being engaged in the business of a secondhand dealer.

A secondhand dealer shall not enter into any cash transactions in payment for the purchase of junk or used or secondhand property. Payment shall be made in the form of check, electronic transfers, or money order issued to the seller of the junk or used or secondhand property and made payable to the name and address of the seller.  All payments made by check, electronic transfers, or money order shall be reported 16 separately in the daily reports required by R.S. 37:1866.

AbbottsLawDictionary wrote:

“Legal” looks more to the letter [form/appearance], and “Lawful” to the spirit [substance/content], of the law.

“Legal” is more appropriate for conformity to positive rules of law; “Lawful” for accord with ethical principle.

“Legal” imports rather that the forms [appearances] of law are observed, that the proceeding is correct in method, that rules prescribed have been obeyed; “Lawful” that the right is actful in substance, that moral quality is secured.

“Legal” is the antithesis of equitable, and the equivalent of constructive. 2 Abbott’s Law Dic. 24.

MLK wrote:

Martin Luther King, Jr., in his letter from Birmingham Jail: "One has not only a legal but a moral responsibility to obey just (lawful) laws. Conversely, one has a moral responsibility to disobey unjust (unlawful) laws."

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2244
Citi Economist Says It Might Be Time to Abolish Cash

Aaah, if you liked the article on LA...

http://www.bloomberg.com/news/articles/2015-04-10/citi-economist-says-it-might-be-time-to-abolish-cash

The world's central banks have a problem.

When economic conditions worsen, they react by reducing interest rates in order to stimulate the economy. But, as has happened across the world in recent years, there comes a point where those central banks run out of room to cut — they can bring interest rates to zero, but reducing them further below that is fraught with problems, the biggest of which is cash in the economy.

In a new piece, Citi's Willem Buiter looks at this problem, which is known as the effective lower bound (ELB) on nominal interest rates.

Fundamentally, the ELB problem comes down to cash. According to Buiter, the ELB only exists at all due to the existence of cash, which is a bearer instrument that pays zero nominal rates. Why have your money on deposit at a negative rate that reduces your wealth when you can have it in cash and suffer no reduction?

Cash therefore gives people an easy and effective way of avoiding negative nominal rates.

Buiter's note suggests three ways to address this problem:

  1. Abolish currency.

  2. Tax currency.

  3. Remove the fixed exchange rate between currency and central bank reserves/deposits.

Yes, Buiter's solution to cash's ability to allow people to avoid negative deposit rates is to abolish cash altogether.

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Context please.

Why are the smart fellows over at GM decreasing their exposure to finance and real estate?

http://www.bloomberg.com/news/articles/2015-04-10/ge-to-exit-most-financ...

 

lambertad's picture
lambertad
Status: Silver Member (Offline)
Joined: Aug 31 2013
Posts: 179
Destroying the utility of cash

http://reason.com/blog/2011/10/19/lousiana-outlaws-using-cash-at

Yup, here you have it. The article is a little old, so it's already begun. The gold ole' politicians down in Lousiana thought it would be useful to outlaw cash for buying and selling second hand goods, you know, to stop thieves who are trying to resell stolen goods. Notice, pawn shops aren't prohibited from using cash, just the 'little guys' i.e. flea markets, yard sales, etc. Truly the place you need cash most.

I can just picture someone negotiating at a yard sale with a checkbook in hand.......

 House Bill 195 of the 2011 Regular Session (Act 389) broadly defines a secondhand dealer to include "... Anyone, other than a non-profit entity, who buys, sells, trades in or otherwise acquires or disposes of junk or used or secondhand property more frequently than once per month from any other person, other than a non-profit entity, shall be deemed as being in the business of a secondhand dealer. " The law then states that "A secondhand dealer shall not enter into any cash transactions in payment for the purchase of junk or used or secondhand property.

Bankers Slave's picture
Bankers Slave
Status: Platinum Member (Offline)
Joined: Jul 26 2012
Posts: 523
The largest terrorist organisation begins excercise

and nobody bats an eyelid. 

 

http://www.bbc.co.uk/news/uk-scotland-highlands-islands-32252012

Hladini's picture
Hladini
Status: Bronze Member (Offline)
Joined: Dec 28 2011
Posts: 83
Banning Cash Transaction? WOW!

Now, I never saw this coming..... and it's old news?!  OMG!  I like dealing in cash.  I usually only write checks to pay household bills and I try very hard to avoid  credit card purchases.  Now this?  Jeeze-Lueeze!

What will they think up next?

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