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Daily Digest 6/27 - Police Warily Learn to De-escalate, A New Alternative To Antibiotics?

Saturday, June 27, 2015, 11:21 AM

Economy

Long Taught to Use Force, Police Warily Learn to De-escalate (jdargis)

“Last week, there was a guy in a car who wouldn’t show me his hands,” the officer said. “I pulled my gun out and stuck it right in his nose, and I go, ‘Show me your hands now!’ That’s de-escalation.”

Nature Rebounds (Nate)

Should the re-wilding of New Jersey shock us? I answer “no,” because about 1970 a great reversal began in America’s use of resources. Contrary to the expectations of many professors and preachers, America began to spare more resources for the rest of nature, first in relative and more recently in absolute amounts. A series of decouplings is occurring, so that our economy no longer advances in tandem with exploitation of land, forests, water, and minerals. American use of almost everything except information seems to be peaking, not because the resources are exhausted, but because consumers changed consumption and producers changed production. Changes in behavior and technology liberate the environment.

Paul Craig Roberts: Bond Bubble in Big Trouble (Herman J.)

Paul Craig Roberts joins the show today to discuss Greece’s possible credit default and its implications, the ongoing tensions between Russia and America, and the U.S. bond market bubble.

Greece's Future in Balance as Creditors Reject Aid Extension (jdargis)

"The Greek authorities have asked for a month extension. But in that month there can be no disbursements," he said. "How does the Greek government think that it will survive and deal with its problems in that period? I do not know," Dijsselbloem said.

China Cuts Interest Rates After Market Plunge (jdargis)

Previous sharp drops in the stock markets this year have been quickly countered by optimistic statements in state-controlled media. But Saturday’s moves, which included the fourth reduction in interest rates since last November, were unusual in so closely following a stock market nose-dive.

US overtakes Russia as top oil and gas producer, report says (Lesphelps)

The BP report also shows China’s energy demand is growing at the slowest pace since the Asian Financial Crisis in the 1990s as the communist nation suffers a slowing of its economy and tries to reduce its reliance on heavy industry, Bloomberg reported.

A New Alternative To Antibiotics? (jdargis)

Cook and Sand have been working on the project since 2011. They received funding from the Wisconsin Alumni Research Foundation and have started a company, Ab E Discovery LLC, to commercialize the technology. Cook says they still need to “learn more on how it works. It is a very novel approach, so there is still much to be discovered academically while we help producers meet their goals privately.”

Gold & Silver

Click to read the PM Daily Market Commentary: 6/26/15

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."

9 Comments

pinecarr's picture
pinecarr
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Posts: 2246
BlackRock seeks gov't ok to borrow from Peter to pay Paul

http://www.silverdoctors.com/if-greece-blows-up-and-financial-armegeddon-hits-gold-will-go-bid-without/

Interesting tidbit in this article on silverdoctors:

Speaking of changing the rules, BlackRock is seeking Government clearance to “change the rules” governing their mutual funds in order to set up an internal program in which mutual funds that get hit with big redemptions can borrow cash from internal funds that have a lot of cash:   BlackRock Seeks To Change The Rules Of The Game

Not only does this tell us that the elitists running BlackRock expect a big run on mutual funds at some point soon, but its a signal to everyone to get their cash not only out of the rigged markets, but out of the financial system entirely.

More on this later, but anyone reading this who owns BlackRock mutual funds of any variety is a complete idiot if they don’t call up their brokerage or financial advisor and demand immediate redemption.

And from the referenced article, "BlackRock Seeks SEC Clearance for Internal Fund Lending", http://www.bloomberg.com/news/articles/2015-06-27/blackrock-seeks-sec-clearance-for-internal-fund-lending

BlackRock Inc. is seeking government clearance to set up an internal program in which mutual funds that get hit with client redemptions could temporarily borrow money from sister funds that are flush with cash.

BlackRock, the world’s largest money manager, filed with the U.S. Securities and Exchange Commission on Friday to set up what’s known as an interfund lending program. The applicants include BlackRock Advisors and BlackRock Fund Advisors, which managed gross assets of $524 billion and $863 billion, respectively, at year-end.

Larry Fink, BlackRock’s chief executive officer, said in December that U.S. bond funds face increased volatility, adding that he expected a “dysfunctional market” lasting days or even weeks within the next two years. While New York-based BlackRock has been increasing the amount of money that its funds can borrow from banks to meet temporary cash needs, the firm said in today’s application that the internal lending program may prove less expensive and provide additional flexibility.

BlackRock fund directors “have determined that it is prudent to add new options for borrowing and lending money in case of an unexpected volume of redemptions or an unanticipated cash shortfall due to settlement failures,” the firm said in its application.

Translation: Why should BlackRock borrow $ from the banks and put themselves at risk for losses to their funds, when with this simple rule change, they can cover those shortages with their investors' funds?  Duh!

And then there's this reassuring statement:

Interfund lending facilities are a “common feature” of U.S. mutual fund complexes, said Tara McDonnell, a BlackRock spokeswoman.

“As a fiduciary, we are exploring the option of extending this feature to funds managed by BlackRock,” she said in a statement.

With fiduciaries like that, who needs enemies?

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Genocide, yours.
“First off, I am a white person myself, so allow me to get that out of the way. I’m extremely glad that the white race is dying, and you should be too. White people do not have a right to exist. Period.”
 
“No white people means no oppression. White people are like a cancer and oppression is a symptom of the cancer. Cut out the cancer altogether – with the cancer being white people – and you get rid of all of the oppression which white people cause.”
http://whiterabbitradio.net/yes-diversity-is-about-getting-rid-of-white-people-admits-a-professor
 
sand_puppy's picture
sand_puppy
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Posts: 1895
Chinese Stock Market Seeking "Pin" --CHS

Just in case the situation in Europe was not evoking enough anxiety for ya'.

From Charles Hugh Smith:

The Chinese Stock Market went over the top in the last couple of days.

And of course the PROOF that the bubble has popped:  

When financial authorities are in full-blown panic, they cut rates. When financial authorities are in full-blown panic, they deny being in a panic, which proves they are in a full-blown panic.

A reasonable technical target is the 200-week moving average, roughly 50% of the recent high.

 

 

saxplayer00o1's picture
saxplayer00o1
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Posts: 4149
Wave of contagion expected after dramatic weekend raises "Grexit

Wave of contagion expected after dramatic weekend raises "Grexit" chances

 

Alexis Tsipras would like to dedicate a song to the rest of the Eurozone:

kelvinator's picture
kelvinator
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Joined: Dec 25 2008
Posts: 213
Prudent Banker Memorial Holiday Celebration Declared in Greece!

Looks like the EU and the Greek government are getting together to throw a week long special Bank Holiday celebration in Greece in memory of the long lost Prudent Banker, may he/she rest in peace. It’s a nostalgic nod to those scary, mythical times long ago when debts had to be repaid, and when banks, companies and countries large and small could actually fail and lose capital. Can you imagine? It’s hard to, so that’s why it’s important to hold these little memorial rallies now and then.

No worries, though, the friendly, unelected party committees from Brussels to Beijing are working over-time this weekend hosing down the entire venue to make sure the symbolic pseudo-bonfires of bad debt don’t spread beyond the controlled burn planned on the big stage in Greece while drums roll and its Euro Club Card is officially cut in half by Mr. Draghi. Remember, it’s just a little debt, and it doesn’t actually go bad, most just gets handed off to the barking-mad printers and the snapping-mad taxpayers – the curators of last resort for the Museum of Eternal Debt and Bad Math.

So, the Euro is caking on the make-up for its big “look at me” dance number to celebrate those olden golden times we knew so well when bankers were stern and credit could fail. No cause for alarm, say the financial authorities. It’s time for a Holiday! After the show’s over, and even before, we’ll be right back to non-business as usual:

  1.  
saxplayer00o1's picture
saxplayer00o1
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Posts: 4149
As Greece shutters banks, fears grow of Eurozone implosion

Let's keep Christine Lagarde and Mario Draghi in our thoughts tonight. They both are feeling sort of like this right now:

saxplayer00o1's picture
saxplayer00o1
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Posts: 4149
How much Greece owes to international creditors

 How much Greece owes to international creditors

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
Puerto Rico governor says debts 'not payable': report

Bank for International Settlements warns of emerging market risks

 

"According to the bank, the combined debt of the government and non-financial private sectors across emerging markets is 50 per cent higher in relation to GDP than at the time of the 1997 Asian financial crisis.

This growth has been concentrated in the private sector, where borrowing has jumped from 60 per cent of GDP in 1997 to 120 per cent as of last year.

The “credit gap” — the deviation of private sector credit from its long-term trend — is well above 10 per cent in Brazil, China, Indonesia, Singapore and Thailand, the BIS says. In the past, two-thirds of all readings above this threshold have led to “serious banking strains” in the subsequent three years, it adds."

China’s Debt Bomb

"A recent McKinsey Global Institute report put total borrowing—by individuals, companies and government—at 282% of GDP in 2014. That’s extraordinarily high for a developing economy, and up from 158% of GDP as recently as 2007. After the 2008 financial crisis, Beijing encouraged Chinese banks to lend to local governments and state-owned companies". .........."China’s debt figures are reminiscent of Korea, Indonesia and Thailand in the runup to the 1997 Asian financial crisis."

 

Time2help's picture
Time2help
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Posts: 2833
Thoughts and prayers
saxplayer00o1 wrote:

Let's keep Christine Lagarde and Mario Draghi in our thoughts tonight.

I'd imagine their in quite a few peoples thoughts and prayers tonight.

 

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