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Daily Digest 7/8 - Greece Bailout Talks Resume, China's Plunging Markets

Wednesday, July 8, 2015, 6:47 AM

Economy

U.K. Welfare Spending Increases $43 Billion Under Cameron

Welfare spending in Britain has risen 28 billion pounds ($43 billion) since Prime Minister David Cameron took office due to people living longer and increased spending on sickness and disability.

Howes: Detroit water vote may extend state fiscal reach

Yet that goal, a marker of the city's return to full self-government, could be endangered by the City Council's decision last week to reject a hike in water rates. The move would blow a $27 million hole in its already approved and balanced budget, potentially triggering a review by the state-appointed Financial Review Commission that could start the three-year clock ticking all over again.

Ontario Cut by S&P as Big Spending Makes It Global Laggard

While the deficit has been dropping, the province’s total debt outstanding has been rising and now stands at about C$315 billion, according to the Ontario Financing Authority. Ontario’s C$250 billion of long-term bonds rated by Moody’s Investors Service is the most of any province, state or local government in the world, the New York-based company said last year.

Gold Gets Ignored in Greek Meltdown With Fewest Bulls Since 2006

While money managers ignored the precious metal’s allure as a haven, demand from Greek customers for Sovereign gold coins was double the five-month average in June, the U.K. Royal Mint said June 29.

IMF: U.S. Economy at Risk of Stalling Next Year if Fed Raises Rates Prematurely

The Federal Reserve risks stalling the U.S. economy by raising interest rates too early, the International Monetary Fund warned Tuesday as it detailed further its call for the central bank to delay a move until 2016.

China Targets Short Sellers in Stock-Index Futures Contracts

The measure, which comes after the exchange made it more expensive to speculate on stock-index contracts, is intended to curb short selling and won’t work, according to Xinhu Futures Co. China’s state-run media has blamed rumor-spreading short sellers and foreign investors for a stock-market rout that erased more than $3.2 trillion of value in less than a month.

Chinese Trading Suspensions Freeze $1.4 Trillion of Shares Amid Rout

Almost 200 stocks halted trading after the close on Monday, bringing the total number of suspensions to 745, or 26 percent of listed firms on mainland exchanges, according to data compiled by Bloomberg. Most of the halts are by companies listed in Shenzhen, which is dominated by smaller businesses.

Greek Banks Seen Days From Breakdown as Bailout Talks Resume

The four largest Greek banks have failed and would also have defaulted without capital controls, Fitch Ratings analysts wrote in a note July 2. Liquidity and solvency are very weak and some banks may be nearing a point where unwinding them becomes a real possibility. Loans overdue by 90 days or more accounted for 36 percent of domestic loans at the end of March and arrears probably have increased significantly since then.

Life insurance industry a risk to U.S. stability, IMF says

In a report released Tuesday, the IMF said that prolonged low interest rates "pose a slow burning solvency risk" for life insurers. If low rate stay until 2018, 11 out of 18 life insurance groups would report negative shareholder equity, the IMF said.

Fed should wait to hike until 'clear signs' of inflation emerge: IMF

The Federal Reserve should hold off raising interest rates until there are "clear signs of wage and price inflation," the International Monetary Fund said Tuesday. In an assessment of the U.S. outlook, the IMF added more detail to its call that the Fed hold steady until the first half of 2016.

Chicago, state lawmakers consider tax hikes

Chicago homeowners could face up to a 30 percent hike in their property taxes to pay for the city's financial problems. Not only is that much of a city property tax increase possible, there are efforts under way on the state and county levels to raise income and sales taxes, all because politicians are running out of options to pay their public worker pension debt.

Water rates, surcharges rise as cities, water agencies lose money in drought

Since 2013, single-family home water bills have increased 30 percent. And more increases may be in store, sources say. LADWP is making up lost revenues by refinancing bonds to lower rates and acquiring grant monies, she said.

Hit by drought and seawater, Bangkok tap water may run out in a month

Bangkok's tap water supply may run out in a month, as the country waits for long overdue rains to replenish sources depleted by drought and threatened by seawater creep, the chief of the capital's water authority said.

China's Plunging Markets: Retail Investors Stunned by Rout

Even extraordinary emergency measures unveiled Monday, such as a $19-billion rescue fund organized by the country's regulators and funded by China's top brokerage firms, failed to stem the fear among retail investors who conduct 85 percent of the market's transactions.

European Central Bank’s Nowotny: If Greece Misses Payment, Funds Will Be Cut Off

“That would be a state bankruptcy, a default in English,” Ewald Nowotny said in an interview with Austrian state television news program ZiB 2. “In this situation, it would no longer be possible for the ECB to provide further liquidity.”

Central Banks Across the World Pressured to Fight Against Euro Depreciation

From Sweden to Switzerland, central banks are battling to contain an appreciation of their currencies versus the euro. Greek risks are also infiltrating markets in Eastern Europe after Greece’s decisive vote against austerity this week. Even the Bank of England, whose economy is showing signs of a gradual recovery, may find itself compelled to delay tightening monetary policy, while Japan has signaled it may boost stimulus if the yen strengthens.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/7/15

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."

14 Comments

saxplayer00o1's picture
saxplayer00o1
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saxplayer00o1's picture
saxplayer00o1
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saxplayer00o1's picture
saxplayer00o1
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3 Strikes You’re Out! Greece, China & Puerto Rico (McAlvany)

3 Strikes You’re Out! Greece, China & Puerto Rico (McAlvany Audio)

"About this week’s show:
– Puerto Rico to the world-“We cannot pay!”
– Greeks vote NO: who will put Humpty back together again?
– Deflation is truly gold’s best friend"

sand_puppy's picture
sand_puppy
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NYSE halt: Does this mean.....

Does this mean that the market "broke" in order to stop the descent of the Dow?  (The futures continued to descend but the Dow is listed as not changing during the suspension.)  Source

Time2help's picture
Time2help
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Re: Does this mean...
sand_puppy wrote:

 

Does this mean that the market "broke" in order to stop the descent of the Dow?  (The futures continued to descend but the Dow is listed as not changing during the suspension.)  Source

LOL, you called it a "market".

Arthur Robey's picture
Arthur Robey
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People say the most extraordinary things.

The reserve bank of Australia says that houses are 30% under valued.

http://www.smh.com.au/federal-politics/political-news/house-prices-30-un...

thc0655's picture
thc0655
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People will not be blind forever

http://www.freemansperspective.com/man-is-not-always-blind/

MAN IS NOT ALWAYS BLIND

 
 
 

manblindThese words (which I picked up from Abraham Joshua Heschel) are true, even if it doesn’t seem like it. Humanity may be blind – willingly blind – for sickening lengths of time, but mankind is not always blind.

Our present government/corporate culture – the loud, flashing, vapid cloud of distraction and fear that surrounds us – not only promotes blindness toward anything outside of itself, but requires this blindness for its very continuance; this is true.

Still, man is not always blind.

Back Then

I will begin making my point with an old example:

Would you expect thousands of peasants, in deepest medieval France, to walk for scores or even hundreds of miles, through early 12th century mud and wilderness, and to sleep outdoors, just to hear a philosopher teach? A man who was rejected by Church and secular authorities, and who was mutilated beside?

Regardless of how implausible that may sound, it happened. The teacher’s name was Peter Abelard, this is how he described these events:

Forthwith I sought out a lonely spot known to me of old in the region of Troyes [in north-central France], and there, on a bit of land which had been given to me… I built with reeds and stalks my first oratory.

No sooner had students learned of my retreat than they began to flock there from all sides, leaving their towns and castles to dwell in the wilderness. In place of their spacious houses, they built themselves huts; instead of dainty fare, they lived on the herbs of the field and coarse bread; their soft beds they exchanged for heaps of straw and rushes, and their tables were piles of turf.

This happened. These people grew tired of being blind. Then they did something about it.

And Now

And even in our age, which beats out the 1950s as an age of abject conformity, thousands of good people are breaking away from it.

There are people who can see and feel and think independently – or, even more horrifying to the overlords of the age – people who can and do act on their heretical beliefs. These people don’t show up on TV, of course, and seldom on radio, but they exist all the same.

New branches of civilization are sprouting, and the people of these branches care about seeing. Voluntaryists, Bitcoiners, homeschoolers, cryptoanarchists, hackers, makers, religious non-conformists… Such people are sick of being blind; are sick of living a hypnotized, acquiescent life of chasing symbols and illusions, while being systematically reaped by a corrupt system.

The extent to which such people have broken out of the Western Autopilot Life is greater – far greater – than any I’ve seen over my lifetime. Furthermore, the very number of them is greater than any I’ve ever seen.

And not only that, but to a larger extent than most of us realize, this is flowing into the low spots of mainstream culture. During my youth, politicians were held to be important men; wise and virtuous men. And that is simply no longer true. I don’t think there is any place left in the West where the phrase, “Politicians are liars and thieves” would fail to garner general agreement at a bus stop. That is a big, serious change.

For all of our lifetimes, we’ve been living through a perfect storm of authority. Authority has benefited from a group of temporary conditions and has gone, in stock market terms, through the roof. But this will not last forever, and it is thinning as we speak.

Authority has become brittle and fragile. It remains in place, but the people who still believe in it are those who are least-informed, least-awake and least-alive. The more informed the individual, the more likely it is that they hold authority to be stupid and abusive.

I haven’t space to go through this in length here, but those so inclined can find it in issue #40 of my subscription newsletter.

What Fuller Knew

Among the people who I’m sorry to have missed in his lifetime was Buckminster Fuller. So, I’d like to conclude by quoting a few passages from Fuller’s last book, Cosmography, published nine years after his death:

The dark ages still reign over all humanity, and the depth and persistence of this domination are only now becoming clear.

I find it very interesting that Fuller says that the depth and persistence of life’s domination on Earth is “only now becoming clear.” And he is entirely correct – it is only now becoming clear to us. Why that should be is a question I will not touch today, but the statement is both true and important. Domination is abuse, and its vileness is only now becoming clear to us… but it IS becoming clear to us.

Man is not forever blind.

This Dark Ages prison has no steel bars, chains, or locks. Instead, it is locked by misorientation and built of misinformation… We are powerfully imprisoned in these Dark Ages simply by the terms in which we have been conditioned to think.

And that’s really what all our efforts are about: Changing our minds and seeing the vile conditioning that has been imposed upon us; cutting life free of its constraints and letting it flourish, unhindered. Once we do that – and ignore the medieval thugs who seek to keep us chained to their chariots – our dark ages will end.

Dear reader, traditional human power structures and their reign of darkness are about to be rendered obsolete.

It’s hard to add much to this passage, aside from a hearty “amen” and “we’re not nearly as far from it as we may think.”

Press forward and savor every bit of progress you see.

Darkness will not reign forever.

Man is not always blind. 

Paul Rosenberg

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
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Q&A

Q: How do you paper over a 1929 style collapse of the world's second largest economy?

A: War.

Quote:

"Buy on the sound of cannons, sell on the sound of trumpets"

<Edit: Spidey senses are in overdrive. Prime time for a major false flag event.>

saxplayer00o1's picture
saxplayer00o1
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OECD Indicators Point to Growth Slowdown in Major Economies

"Growth is set to slow across more of the world’s largest economies, including the U.S. and China, according to leading indicators released Wednesday by the Organization for Economic Cooperation and Development.

The Paris-based research body said its gauges of future economic activity—which are based on information available for May—also point to slowdowns in the U.K., Canada and Brazil. The indicators had previously pointed to steady growth for the U.K."

Time2help's picture
Time2help
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saxplayer00o1's picture
saxplayer00o1
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Posts: 4238
ECB bond market purchases have 'contained' Greek crisis, OFR say

ECB bond market purchases have 'contained' Greek crisis, OFR says

Arthur Robey's picture
Arthur Robey
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A light flickers in the darkness.

From Saxes piece.

European Central Bank's bond-buying program was a major reason for the "fairly contained" financial market reaction to the recent breakdown in the talks to solve the Greek debt crisis

Huh? Who is printing money? So debt is created and becomes real folding-stuff money out in the wilds. And when the debt is not repaid, someone just prints it up? And then they try to obscure this by flapping an imaginary piece of paper that they are pleased to call a "bond" in our faces, as though that makes it all good !

OK. Got it. The wonders of modern finance. To think that I have been working for money all my life. What a fool. Can ebay sell me one of those buttons? 

Yes T2H, a very interesting site.

 

 

Michael_Rudmin's picture
Michael_Rudmin
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Posts: 922
Where does a wise man hide a leaf?

In a forest. And what if he has no forest? He grows a forest, a very great sin.

https://ebooks.adelaide.edu.au/c/chesterton/gk/c52fb/chapter11.html

Where does a wise man hide a dead body? On a battlefield.

Chesterton.

saxplayer00o1's picture
saxplayer00o1
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Joined: Jul 30 2009
Posts: 4238
China "arresting the selloff"

"“The market shows signs of stabilizing because the regulator came to rescue small-caps, especially those on the ChiNext, which eased the liquidity crisis and gave investors a much-need dose of confidence,” said Tang Yonggang, an analyst at Shenyin Wanguo Securities. On Wednesday, regulators announced that the China Securities Finance Corp., a commission unit that provides financing for margin trading, would step up purchases of small-cap stocks.

The gains also follow a report by state-run Xinhua News Agency that Chinese police had visited the China Securities Regulatory Commission to investigate “malicious short selling,” a move widely interpreted as another stab at arresting the selloff. "

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