Daily Digest

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Daily Digest 8/4 - Puerto Rico In Default, The Freest Place On Earth

Tuesday, August 4, 2015, 10:40 AM

Economy

Puerto Rico just defaulted for the first time (LesPhelps)

"This was a decision that reflects the serious concerns about the Commonwealth's liquidity in combination with the balance of obligations to our creditors and the equally important obligations to the people of Puerto Rico," Puerto Rico's Government Development Bank president Melba Acosta Febo said in a statement.

The default is a historic moment in Puerto Rico's economic "death spiral," a term the island's governor, Alejandro Garcia Padilla, has used. The island is struggling with about $70 billion in total outstanding debt, and its economy is in recession.

F.A.Q. About Puerto Rico’s Debt Troubles (jdargis)

Puerto Rico’s fiscal problems, while painful to the island’s 3.5 million residents, do not threaten to spill over as broadly. Even as Puerto Rico’s bonds have lost value with a default looming, the larger United States municipal debt market has barely flinched, allowing cities and states on the mainland to keep borrowing. That stability may explain why the federal government, despite providing some technical support and advice to officials in Puerto Rico, has largely stayed on the sidelines of the debt crisis.

Welcome To The Freest Place On Earth (jdargis)

PorcFest is an eight-day party for 1,500 people who don’t want the government in their faces. It's a recruiting tool for the Free State Project, an effort to get thousands of libertarians to move to New Hampshire. It's also a kind of model of a radically free society, a place where Republican business owners who hate taxes mix with gutter punks who like doing drugs and cussing out cops.

Training Officers to Shoot First, and He Will Answer Questions Later (jdargis)

His conclusions are consistent: The officer acted appropriately, even when shooting an unarmed person. Even when shooting someone in the back. Even when witness testimony, forensic evidence or video footage contradicts the officer’s story.

EIA Capitulates Under Cover Of Darkness (Tom K.)

To be clear, the EIA, on a weekly basis, uses a proprietary model to estimate U.S. oil production and then on a monthly basis uses actual data to revise those figures. Thus, what we were witnessing from Texas RRC data and Bakken output appears to be spot on in estimating that actual production was well below EIA estimates.

Obama rolls out the final EPA plan to cut carbon emissions (jdargis)

But the biggest portion of the announcement was dedicated to those who will undoubtedly challenge the rules legally or try to dismantle them when the administration leaves office. Anticipating the cries of economic destruction and skyrocketing energy costs, Obama basically said "we've heard it all before." The announcement notes that since the passage of the Clean Air Act, pollution has dropped by 70 percent even as the economy tripled in size.

Methane Leaks May Greatly Exceed Estimates, Report Says (jdargis)

The problem, according to the author of the paper, Touché Howard, is that the backpack-size tool uses two sensors: one for low levels of methane emissions and one for higher levels. As methane levels rise beyond the capacity of the first sensor, the device hands off to the second, high-level sensor.

A Green Light for Using Rain Barrel Water on Garden Edibles (pinecarr)

The scientists found that some of the samples of the French beans and the beet leaves, but not the beet root, had lead levels that exceeded Australia’s health guidelines. The kale in particular had lower levels of all of the metals, illustrating the wide variability in metal uptake among crops, and even into different parts of the same plant. They also reported that the more contaminated soils resulted in higher pollution levels in the plants.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/3/15

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."

12 Comments

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
South America's Largest Lake a filthy mess

The Maracaibo basin is where Venezuela’s enormous energy bounty, including oil reserves that dwarf even those of Saudi Arabia, smacks up against the diminished capacity of the state-owned monopoly producer, Petroleos de Venezuela SA, to manage the twin demands of increased production and environmental protection.

“There is great governmental irresponsibility, not just from this government but from those from more than 20 to 30 years ago,” said Gustavo Carrasquel, general director of Fundacion Azul Ambientalistas, an environmental and conservation non-profit founded in 1986. “The transnationals destroyed the lake and PDVSA doesn’t have the operational capacity to control the constant oil and gas leaks.”

At night, it turns out, the lake is controlled by gun-toting pirates who maraud at will from small boats fitted with outboard motors. They rob crews still on the water of mobile phones and cash and often strip the PDVSA vessels of valuable cables, motors and spare parts.

http://www.bloomberg.com/news/articles/2015-08-03/venezuela-s-giant-lake-of-endless-oil-is-a-filthy-lawless-mess

I wonder if this is where our GOM is headed due to >3500 temporary caps on old oil wells. http://oilprice.com/Energy/Energy-General/A-New-Oil-Spill-Disaster-Waiti...

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
Global Inflation Remains Stubbornly Low

 

"Global inflation rates were unchanged in June, and well below desired levels in developed nations, even as some central banks prepare to raise their key interest rates for the first time since the global financial crisis.

The Organization for Economic Cooperation and Development said Tuesday the annual rate of inflation in its 34 members was unchanged at 0.6% in June, well below the 2.0% regarded by most central bankers in developed economies as consistent with healthy economic growth."

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
Go-go economy becomes so-so economy: U.S. faces dimmer future ab

Go-go economy becomes so-so economy: U.S. faces dimmer future absent big fixes

MW-DQ504_us_gro_20150721120632_ZH.jpg?uuid=7489f40c-2fc2-11e5-8bec-0015c588dfa6

 

MW-DQ507_us_gro_20150721121222_ZH.jpg?uuid=453c0dd8-2fc3-11e5-80fb-0015c588dfa6

MW-DQ505_econom_20150721120940_ZH.jpg?uuid=e45434dc-2fc2-11e5-8e22-0015c588dfa6

thebrewer's picture
thebrewer
Status: Silver Member (Offline)
Joined: Nov 7 2012
Posts: 110
Good Friday Challenge

As I read through the Daily Digest of stories I find the same thing happening everyday. Although important to not bury your head in the sand, the DD of bad news everyday is just depressing.

With that said I have a challenge. How about each Friday we collectively try and find at least a few news stories with a positive vibe? This way we can all head into the weekend not feeling like we need to make a Costco run to deepen our pantries or a Cabelas' run to pick up just one more case of .223 shells.

Will anyone accept my challenge?

HughK's picture
HughK
Status: Platinum Member (Offline)
Joined: Mar 6 2012
Posts: 761
Great idea
thebrewer wrote:

With that said I have a challenge. How about each Friday we collectively try and find at least a few news stories with a positive vibe? 

Will anyone accept my challenge?

I love this idea and it would be cool if we could just choose one day a week - Friday is great with me - where we only have stories about solutions and constructive responses. 

When canoeing through the rapids, the best paddlers look where they want to go, and not at the big scary rocks, hydraulics, or tree branches that they want to avoid. 

LesPhelps's picture
LesPhelps
Status: Platinum Member (Offline)
Joined: Apr 30 2009
Posts: 788
Puerto Rico

Puerto Rico has a population of over 3.5 million people with a population density of 1,082 people per square mile. 

Comparisons:

1. New York States population density is a 412 per square mile.
2. Haiti has a population density of 350 people per square mile.
3. Easter Island, when it collapsed, had a population density of around 190 people per square mile.

Puerto Rico imports in the ball park of 85% of the food they consume and 88% of the energy they use.  Water shortages are becoming common.

People are flocking from Puerto Rico to the US in search of a better life.

I'd argue that a lot of the global immigration going on right now is from countries that have seriously overpopulated to countries that aren't yet as over populated.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
Chicago Lays Out Grim Fiscal Overview

Read the sections on debt and pensions:

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Be of Good Cheer.

You want positive? What's powering this object? I don't think it's petrol.

Taken August 3, 2015

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

So what are these superconducting magnets reacting against? Notice how it continues to hover over water.

KennethPollinger's picture
KennethPollinger
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Joined: Sep 22 2010
Posts: 654
IMF just delayed the inclusion of Yuan in

the basket of reserve currencies.  Postponed until NEXT year.  So the US$Dollar can breathe a little better today.  

thebrewer's picture
thebrewer
Status: Silver Member (Offline)
Joined: Nov 7 2012
Posts: 110
Ignore

My post got posted twice and can't figure out how to delete a post. Anyone?

thebrewer's picture
thebrewer
Status: Silver Member (Offline)
Joined: Nov 7 2012
Posts: 110
Good start
Arthur Robey wrote:

So what are these superconducting magnets reacting against? Notice how it continues to hover over water.

That's certainly a good start Arthur. I can see how it might be working over rebar laden concrete but the water part has me a bit puzzled.

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