Daily Digest

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Daily Digest 7/21 - Greece Reopens Banks, CA Farmers Turn To Water Witches

Tuesday, July 21, 2015, 9:04 AM

Economy

Finland Shows Why Many Europeans Think Americans Are Wrong About the Euro (jdargis)

Because Finland has used the euro since its inception, the value of its currency cannot adjust in ways that would cushion the overall Finnish economy from those shocks. If Finland still had its old currency, the markka, it would have fallen in value on international markets. Suddenly other Finnish industries would have had a huge cost advantage over, say, German competitors, and they would have grown and created the jobs to help make up for those lost because of Nokia and the paper industry and Russian trade.

Greece reopens banks, starts repaying some debts (jdargis)

Limits on withdrawals will remain, however -- at 420 euros (£292.3) per week instead of 60 euros per day previously -- and payments and wire transfers abroad will still not be possible, a situation German Chancellor Angela Merkel said on Sunday was "not a normal life" and warranted swift negotiations on a new bailout, expected to be worth up to 86 billion euros (£59.8 billion).

"Capital controls and restrictions on withdrawals will remain in place but we are entering a new stage which we all hope will be one of normality," said Louka Katseli, head of the Greek bank association.

‘Illegal Activity’ Fine Print Leaves Some Insured, but Uncovered (jdargis)

There are no firm numbers on how often insurers deny medical coverage based on allegations of illegal activity. But cases like Mr. Bird’s “are more common than people think,” said Crystal Patterson, an attorney in Minneapolis and chairwoman of the American Bar Association’s committee on fiduciary litigation.

VA manager indicted on 50 counts of falsifying records of veterans waiting for medical care (jdargis)

Henderson appeared in U.S. District Court on Friday and was released on bond. If convicted, he faces a maximum sentence of five years in prison and a $250,000 fine. His attorney,Keith B. Johnson of Augusta, told The Augusta Chronicle that his client “was following the directive of his supervisors, and that will come out in court documents.”

As Beijing Becomes a Supercity, the Rapid Growth Brings Pains (LesPhelps)

“There’s not much I can contribute to the family anymore,” Mr. Liu, 62, said as his son waved goodbye from a bus window. “He is exhausted every day, so if I can help him get a bit more rest, I’ll do it.”

Tired of Waiting for Feds, California Bill Addresses Illegal Farmworkers Issue (jdargis)

Many California farmers support this bill. “We have a large population of people who came here to work, not to be any kind of a security threat to anybody,” said Bryan Little, director of employment policy at the California Farm Bureau Association (CFBA), “And they came to work in an industry that needs them badly.”

Four years ago, Utah passed a program similar to what Alejo proposed. It’s starting date was pushed back twice, and it has yet to be implemented.

A New Oil Spill Disaster Waiting To Happen In The Gulf

For example, the number of wells that have been placed under temporary seal for more than one year has grown by 25 percent since 2010, jumping from 2,855 to 3,576. In fact, those wells that have been sitting with temporary seals for longer than one year actually make up more than 86 percent of all temporarily sealed wells.

Worse yet, there are a handful of wells that have been under temporary seal since the 1950s, and at least 17 since the 1970s.

Amid epic drought, California farmers turn to water witches (Jason B.)

A few feet away stood the Wollenmans — Guy, his brother Jody and their cousin Tommy — third-generation citrus farmers whose family maintains some of the oldest orange groves in the region. Like so many Central Valley farmers, their legacy is in danger — put at risk by California’s worst drought in decades. The lack of rain and snow runoff from the nearby Sierra Nevada has caused many of their wells to go dry. To save their hundreds of acres of trees, they’ll need to find new, deeper sources of water — and that’s where Tassey comes in.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/20/15

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

Time2help's picture
Time2help
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The Water Knife

California Proposes Historic $1.5M Fine for Taking Water

Quote:

SACRAMENTO, Calif. (AP) — California regulators on Monday proposed a first-of-its-kind, $1.5 million fine for a group of Central Valley farmers accused of illegally taking water during the drought.

It would be the first such fine against an individual or district with claims to water that are more than a century-old, known as senior water rights holders.

The action reflects the rising severity of California's four-year drought that has prompted the state to demand cutbacks from those historically sheltered from mandatory conservation.

The State Water Resources Control Board said the Byron-Bethany Irrigation District in the eastern San Francisco Bay Area illegally took water from a pumping plant even after it was warned in June that there wasn't enough water legally available.

Relying on water rights dating to 1914, the district serves 160 farming families in three counties in the agriculture-rich Central Valley and a residential community of 12,000 people. The district estimates losing $65 million in crops because of the state's cutback orders.

HughK's picture
HughK
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Bacigalupi's nightmare manisfesting

Thanks for this, T2H.

Although Sandpuppy already mentioned it last month, The Water Knife is definitely worth reading, and apparently starting to come true.  In spite of one regrettably written sex scene and a few overly explicit "tell, don't show" moments, Bacigalupi has proven once again that he is the master of collapsitarian speculative fiction.

saxplayer00o1's picture
saxplayer00o1
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Blame China....UTX worst day since the 2001 terror attacks

 

"Otis had benefited strongly from the construction boom in China, which is slowing from the blistering pace of recent years. Otis new-equipment orders from China fell 10% in the second quarter. At the company’s UTC Climate, Controls and Security business, which makes heating and cooling systems, Chinese orders fell 15%."

saxplayer00o1's picture
saxplayer00o1
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Time2help's picture
Time2help
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Posts: 2888
Unsustainable Debt

Just saw a great quote on ZH...

NoDebt wrote:

"You know, if you keep shuffling the debt around fast enough, it all just goes away".

Apparently true.

 

saxplayer00o1's picture
saxplayer00o1
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Interest rates in China may be headed to zero, says analyst

"Slater believes growth in China is running at a pace closer to 4% to 5%, well below the official Beijing estimate of 7% growth."

saxplayer00o1's picture
saxplayer00o1
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Posts: 4237
AAPL, MSFT, YHOO earnings after Hours (Look at AAPL)

AAPL

MSFT   (Microsoft reports biggest-ever quarterly loss )

YHOO

 

From Zerohedge:

"But the biggest surprise was in China, where as we warned previously, the Apple euphoria appears to have ended with a bang, with greater China sales tumbling by 21% from $16.8 billion to $13.2 billion. And keep in mind this was in the quarter when the Composite was hitting multi year highs, and the July crash was not even on the horizon."

 

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
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Posts: 2888
Re: Earnings after hours

BTFD Dude. Fed's got your back.

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Bankers Slave
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