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Daily Digest 8/6 - Money Bubble About to Pop, Climate Change Nightmares Already Here

Thursday, August 6, 2015, 9:33 AM


The Tale of an Anxious Economic Recovery, Told by a Revived Textile Mill (jdargis)

“More people are finding jobs, but nobody feels optimistic about their income prospects,” he added. “That’s likely why it doesn’t feel like the economy has really recovered even though the statistics say it has.”

The Suicide of the American Left (Michael W.)

The gap between the current Washington consensus and the former ideals of the nation’s political parties, not to mention the wishes of the people on whose sovereign will the whole system is supposed to depend, has attracted an increasing amount of attention in recent years. That’s driven quite a bit of debate, and no shortage of fingerpointing, about the origins and purposes of the policies that are welded into place in US politics these days. On the left, the most popular candidates just now for the position of villainous influence behind it all mostly come from the banking industry; on the right, the field is somewhat more diverse; and there’s no shortage of options from further afield.

Coming Out - As a Bear! (Aaron M.)

Earlier this year, as the market kept marching upward, I decided that buying put options on equities wouldn’t give me the kind of protection I was looking for. So I liquidated most of my equity holdings. We also shut down our equity strategy for the firm.

Of late, I’ve taken it a step further, starting to build an outright short position on the market. In the long-run, this may be losing proposition, but right now, I am rather concerned about traditional asset allocation.

James Turk: Money Bubble About to Pop (Herman J.)

This money bubble is going to pop. It has to because there is just too much debt in the world. That debt has to be reconciled and, ultimately, when you are reconciling debt, it gets back to the point about collateral on the balance sheets. There is just not enough good collateral to support all of this paper money circulating out there.

The Economist: The TPP is Dead (westcoastjan)

The coverage of the TPP in the media was schizophrenic, on the one hand describing it as part of Obama’s “pivot to Asia” (as in an effort to contain China’s growing hegemony), meaning it was clearly a political enterprise, an “everybody but China” deal, and on the other hand, saying that the reason Americans should support it was those miniscule trade benefits. And of course, there was nary a mention of the cost in terms of national sovereignity.

John Kerry on the Risk of Congress ‘Screwing’ the Ayatollah (jdargis)

On a related matter—whether or not the nuclear agreement represents a bad deal for the people of Syria, who suffer under the Iran-supported Assad regime, which will presumably benefit financially from the lifting of sanctions on its primary sponsor—Kerry was somewhat dismissive. In response to my question, “Does it bother you that money will be going to Assad and Hezbollah?,” Kerry responded, “Yes, but it’s not dispositive. It’s not money that’s going to make a difference ultimately in what is happening.”

Liquefied Natural Gas Makes Qatar an Energy Giant (jdargis)

Qatar and its energy partners took the business to a new level, developing far bigger and more efficient plants. Last year, Qatar produced about a third of all liquefied natural gas, although Australia and the United States have big export ambitions.

Arizona Apache Mobilize Against Bill Which Hands Sacred Native American Land To Mining Company (Arthur Robey)

The National Environmental Policy Act stipulates that an impact assessment on the environment, archaeological and historic sites, as well as spaces considered sacred by Native Americans, must be completed prior to a land swap. However, under the NDAA 2015, Resolution Copper will be awarded the land 60 days after the required environmental impact statement has been completed. This raises questions about whether a fair assessment can be completed when Resolution Copper has already been awarded the land for the proposed copper mine.

Germany Breaks a Renewable Energy Record (Arthur Robey)

But Morris found the power mix a few days earlier even more encouraging. During the night of July 22, even with darkness reducing solar output to zero and no big winds in the forecast, renewables—wind, biomass, and hydropower—generated nearly 25 percent of Germany’s electricity.

Toxic Algae Blooming in Pacific from California to Alaska Is Affecting Your Seafood (Jason B.)

This coastal ribbon of microscopic algae, up to 40 miles wide and 650 feet deep in places, is flourishing amid unusually warm Pacific Ocean temperatures. It now stretches from at least California to Alaska and has shut down lucrative fisheries. Shellfish managers on Tuesday doubled the area off Washington’s coast that is closed to Dungeness crab fishing, after finding elevated levels of marine toxins in tested crab meat.

The Point of No Return: Climate Change Nightmares Are Already Here (jdargis)

Eric Rignot, a climate scientist at NASA and the University of California-Irvine and a co-author on Hansen's study, said their new research doesn't necessarily change the worst-case scenario on sea-level rise, it just makes it much more pressing to think about and discuss, especially among world leaders. In particular, says Rignot, the new research shows a two-degree Celsius rise in global temperature — the previously agreed upon "safe" level of climate change — "would be a catastrophe for sea-level rise."

Gold & Silver

Click to read the PM Daily Market Commentary: 8/5/15

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."


saxplayer00o1's picture
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Posts: 4238
China's top bank regulator says bad loans surge, profit growth s


  1. Trillions of Assets Remain Central Bank Tools Amid Rising Rates
  2. Pound falls after BOE minutes show little support for rate hike (UK)
  3. Turks Hoard Dollars as Lira Heads for Biggest Tumble in 14 Years
  4. Brazilian President's Approval Rating Hits Record Low
  5. Mexico Peso Falls for Third Day, Prompting Currency Intervention
  6. Greece’s banking sector on track for biggest weekly loss ever
  7. Russian rouble leads EM currency slide
  8. Russian rouble's fall reaches 30 per cent since May
  9. Russian 'food crematoria' provoke outrage amid crisis, famine memories
  10. Emerging-Market Rout Worsens as Polish Banks Slide, Ruble Drops
  11. Nigeria cbank acts to curb speculation and support naira
  12. Czech Policy Makers Keep Lid on Currency as Koruna Tests Limit
  13. Thai currency falls to 6-year low as foreigners dump stocks
  14. Bad debts in Thailand spread on falling consumption and exports
  15. China's top bank regulator says bad loans surge, profit growth slows in cooling economy
  16. China Just Revamped its Stimulus Playbook in a Bid to Boost Growth
  17. China agency seeking additional 2 trillion yuan to prop up markets: Bloomberg
  18. Brazil bankruptcy protection requests hit record as economy slumps
  19. Brazil's Caixa to further limit mortgage loans amid funding dry-up
  20. Brazil's economy has been blasted back to the financial crisis
  21. Chicago convention center debt downgraded over state budget battle (By seven notches)
  22. Plunging like it’s 1998 ( Indonesia and Malaysia)
  23. Ringgit Leads Asia Declines as Reserves Seen Below $100 Billion
  24. South Korea president says economy needs 'major surgery'
  25. China's Cities 'Not Telling Public about Debt Levels'
  26. China shares fall, investors await economic data
  27. China Stocks Extend $3.4 Trillion Tumble as Turnover Plummets
  28. Europe Moves to Cut Risk in $505 Trillion Derivatives Market
  29. Debt-Locked: Student Loans Force Millennials to Delay Life Milestones
  30. Saudi Arabia to tap markets for $US27b as low oil strains finances
  31. Growing Default Risk Shown in Worst Ukraine Bond Rout Since June
  32.  Russian Regions Are Running Out of Money
  33. U.S. municipal bond insurers set to withstand Puerto Rico default
  34. Brazil Yields at Record High as Default Risk Rises, Real Weakens
  35. China growth probably half reported rate or less, say skeptics
saxplayer00o1's picture
Status: Diamond Member (Offline)
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Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
A Paradigm Shift

A paradigm shift has occurred, so immense in implication, that the entire frame of reference for our species' self-definition, as well as how we relate fundamentally to concepts like "germs," have been transformed beyond recognition. This shift is underway and yet, despite popular interest in our gut ecology, the true implications remain unacknowledged. - See more at: http://www.greenmedinfo.com/blog/how-microbiome-destroyed-ego-vaccine-policy-and-patriarchy#sthash.YcMufmwO.dpuf

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
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Posts: 3936
Report from Adelaide

Adelaide can be described as a manufacturing and entrepreneurial city. It's economic basis has been gutted with the closure of the car manufacturing business. The acknowledged unemployment rate is 15%.

The governments response is to throw money into Naval ship building. Brilliant ! I have raised a petition on facebook to the effect that there are far better ways of spending the nation's wealth than building war toys, with an eye on the Limits to Growth curves.

Anyone for soil restitution(mycelia) ? No? Robotics, solar cell research, development and manufacture? No? How about carbon material science?  Space delivery systems with a launch facility near the equator? Windmill generators. The list of preferable investments is as long as your arm. Unfortunately we are led by the imagiationally challenged. 

We are gong to be the Detroit down under. No much I can do about it. Let us hope the petition gains traction.

ejhr's picture
Status: Bronze Member (Offline)
Joined: Jun 28 2014
Posts: 34
Report from Adelaide

I generally concur, Arthur.

Typical of the Abbott government's incompetence was the ultimatum delivered to car makers. As if there are no car making subsidies outside Australia! It actually costs the Federal government nothing, but SA probably couldn't wear the cost as, unlike the Fed, it's not Monetarily Sovereign.

There is no restraint on the ability of the federal reserve bank to just spend on whatever it needs without any recourse to "Taxpayers" We can never go broke in Australian dollars, and if further common sense was needed, don't borrow in any foreign currency. So a subsidy is money created from nothing and doesn't have to be paid back [Bank loans do]. It would have cost nothing and would be able to allow the industry a more even playing field for their cars! But of course our politicians are way too stupid to understand, both sides!

Every other item on your wish list can be directly paid for by the Federal government, so not doing so is purely and exclusively a political choice.

It's such a shame that politicians and nearly everybody else has no understanding of how modern ]post 1971] money works.


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