Daily Digest

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Daily Digest 6/8 - The Economic Consequences Of Austerity, Egg Rationing Has Begun

Monday, June 8, 2015, 10:50 AM

Economy

Amartya Sen: The economic consequences of austerity (jdargis)

Aside from Keynes’s fear of economic ruin of a country, in this case Germany, through the merciless scheduling of demanded payments, he also analysed the bad consequences on other countries in Europe of the economic collapse of one of their partners. The thesis of economic interdependence, which Keynes would pursue more fully later (including in his most famous book, The General Theory of Employment, Interest and Money, to be published in 1936), makes an early appearance in this book, in the context of his critique of the Versailles Treaty.

Americans live with the austerity you Europeans are so concerned about (jdargis)

If you were to ask Americans about austerity, we most likely would think you meant personal sacrifice, and we’re not having any of that, either. Back in 1977, our then-President Jimmy Carter appeared on television in a sweater to deliver what he called an “unpleasant talk” to urge Americans to do the radical thing and turn down their thermostats. His talk was not well-received; he was not re-elected.

Wave Coming Too Large to Duck Under: Warren Pollock (pinecarr)

So, what is the best strategy to survive what the world is going to experience? Pollock says, “Flexibility is the best way to answer that question. It is more important to your children than it is to you or me because of our demographic. In the Soviet collapse, there was a tremendous loss of life from a life expectancy perspective, and I would expect that to happen here. If you are 20 years old, you could lose 20 years of your life.

Obama Targeting Your Retirement Accounts (Nate)

This is the unfolding of the Debt Crisis – not a currency crisis. The difference is striking for a currency crisis implies hyperinflation where government prints to meet its obligations and a debt crisis they come after everything you own to pay the bond holders destroying the economy through deflation first which causes asset inflation as people try to hide money taking it off the grid.

Earth's Most Important Creatures (westcoastjan)

So to celebrate all things planktonic, BBC Earth has partnered with Nickelodeon’s SpongeBob SquarePants and his arch nemesis Sheldon J Plankton to create this short film.

Watch, enjoy, and if you can find it within yourself, say a little thank you to what are perhaps the most important creatures on earth.

Seeing Some Success, OPEC Maintains Market Share Strategy (Tom K.)


Meanwhile, Indonesia is seeking supply agreements with OPEC members in order to import oil. Indonesia has a fast growing economy and is continuously searching for more sources of supply. “We will discuss purchasing crude from them. We have a plan to build refineries, so we need crude supplies,” Wiratmaja Puja, a top official at Indonesia's Energy Ministry, said to Reuters in an interview. That would be crucial for a country that is desperate to increase its domestic production of refined products.

Keystone protesters tracked at border after FBI spied on 'extremists' (Michael W.)

According to internal agency documents obtained by the Guardian and Earth Island Journal, it was discovered in August 2013 that the FBI’s investigation had been opened without proper approval from the chief legal counsel of the agency’s Houston division and a senior agent, resulting in a report of “substantial non-compliance” with rules set out by the US Justice Department.

For New Mexico's Chiles, The Enemy Isn't Just Drought But Salt, Too (Merle2)

Dry weather forces farmers to pump from underground aquifers. The water spills into irrigation canals that flow onto fields, making up for a short supply in the neighboring Rio Grande. But while groundwater can be a blessing, it's also a curse.

"The aquifers tend to be salty," said Stephanie Walker, a vegetable specialist at New Mexico State University.

Egg rationing in America has officially begun (jdargis)

The wholesale price of eggs sold in liquid form (a.k.a. egg beaters, the kind used by large food manufacturers) has skyrocketed — from $0.63 per dozen to more than $1.50 — since the virus began to spread. While that stands to affect the price of breads, pastas, cakes and other commercial confections made with eggs, it also bodes poorly for food service providers, such as McDonald's, which sell millions of egg-filled meals every morning. Texas-based fast-food chain Whataburger recently announced that it will be shortening its breakfast hours for the foreseeable future.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/5/15

Provided daily by the Peak Prosperity Gold & Silver Group

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8 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4167
States Confront Wide Budget Gaps Even After Years of Recovery

States Confront Wide Budget Gaps Even After Years of Recovery

RoseHip's picture
RoseHip
Status: Silver Member (Offline)
Joined: Feb 5 2013
Posts: 150
Warren Pollock interview question

At the end he says if you're 20 years old you'll stand to loose 20-50 years of your life, if you're 70 years old you'll maybe only loose a year or two.

I am confused? What does that mean?

Rose

Thetallestmanonearth's picture
Thetallestmanonearth
Status: Gold Member (Offline)
Joined: Feb 28 2013
Posts: 324
At the end he says if you're

At the end he says if you're 20 years old you'll stand to loose 20-50 years of your life, if you're 70 years old you'll maybe only loose a year or two.

I am confused? What does that mean?

I believe he is referring to the way large demographic changes work.  On the whole, people my age and younger will live truncated lives when compared to people now in their 70's who may be impacted by global events in the near term, but have lived out most of their lives during a period of retaliative peace and prosperity (in the West at least).  If life expectancy drops to 50 years, more young people will be impacted than old people because we have more tumultuous years ahead of us to slip into the tar pits of history than our parents and grandparents.

I plan to be an outlier on the demographic curve. That's why I haunt PP and similar sites trying to understand what is happening in the world to stay ahead of it or at least out of the way.

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
The link between police tactics and economic conditions

A recent study by the American Civil Liberties Union found that blacks and Native Americans in Minneapolis are nine times more likely to be arrested for low-level offenses than whites. // young black men are 21 times more likely to be shot by police than young white men in US.

The failed war on drugs tripled the number of people in prison, even as crime rates in the US fell to the lowest levels in a generation. Nearly 1.5m African American men are in prison and missing from society due, in large part, to a criminal justice system that locks them up and limits their options upon release.

Cities, starved of funding by austerity-obsessed leaders in Washington and state capitols, write tickets and charge fees for residents already struggling to avoid hunger and eviction. Crimes like loitering, spitting, jay-walking – many of which have been de facto legalized in affluent communities – are frequently used today to harass and imprison people of color.

http://www.theguardian.com/commentisfree/2015/jun/08/police-tactics-economic-conditions-republican-policies

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
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Posts: 1928
A felony conviction makes getting a job impossible

Prison casts a shadow over an entire lifetime.  It is devastating to any chance of making a good life through education, a trade, a profession, college admission.   None of the hospitals that I work at will hire, or professional societies license, a person who has ever been convicted of a crime "more serious than a minor misdemeanor such as a traffic offense."

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Discrimination against ex felons.

Due to historical happenstance,  Australia takes a different tack. Once the felon has done his time it is Illegal to discriminate against him. In theory.

Outcasts become outlaws.

 

ezlxq1949's picture
ezlxq1949
Status: Silver Member (Offline)
Joined: Apr 29 2009
Posts: 225
Discrimination against ex felons

Seems that the US system is busily generating disgruntled, alienated young males who now have no love of nor loyalty towards the system and even the country that has taken away their hopes and dreams. Isn't this rather similar to what has happened and is happening now in the Middle East?

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
The Limits of Prognostication.

Here is an interesting talk about why the future is hard to predict. (The boundary conditions of Chaos theory did not get a mention.)

http://www.abc.net.au/radionational/programs/futuretense/predictions/644...

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