Daily Digest

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Daily Digest 8/8 - The Rumblings Of War, 'Epochal Deflation' Ahead

Saturday, August 8, 2015, 9:18 AM

Economy

The Rumblings Of War (thc0655)

There are other possibilities but looking at the two retaliatory options mentioned above, what could result? First, were China to come clean and “admit” they have 10,000 tons of gold (or MUCH MORE), the yuan would immediately strengthen and move into the dollar’s territory as a settlement currency. Markets would quickly do the math and understand if China has this much gold …where oh where did it come from? China could even do an audit publicly and count the bars out in the open surroundings of their Olympic stadium in a “we’ve shown you ours, now you show us yours” fashion!

CEOs Now Officially Have to Tell You How Grossly Overpaid They Are (Wendy SD)

In 2013, a report from the AFL-CIO found that CEOs of the biggest companies in the U.S. make on average 373 times the salary of a non-managerial employee. In 2012, CEOs’ pay rose 16 percent, compared with employees’ wages, which increased only 2.4 percent.

The rule will not officially go into effect until January 1, 2017 and the first ratios won’t have to be reported until 2018, so sit tight for another few years (and then a few centuries more) of extreme financial inequality.

"The Top's In" David Stockman Warns Of "Epochal Deflation" (pinecarr)

The truth hurts... especially permabullish CNBC anchors. But when David Stockman explained why "the top is in," and warned that the world is overdue for an "epochal deflation, like nothing it has ever seen," one should listen. The "debt supernova" of the last decade or two has created massive over-capacity and this commodity deflation "is not temporary, it's the end of the central bank bubble." The catalyst has already happened -"It's China," Stockman exclaims, "China is the most lunatic pyramid of credit and speculation.. and capital is now fleeing the swaying towers of the China ponzi."

Chicago police detained thousands of black Americans at interrogation facility (westcoastjan)

The Chicago police department has maintained – even as the Guardian reported stories of people being shackled and held for hours or even days, all without legal access – that the warehouse is not a secret facility so much as an undercover police base operating in plain sight. “There are always records of anyone who is arrested by CPD, and this is no different at Homan Square,” the police asserted in a March statement.

Statement by Glenn Stevens, Governor: Monetary Policy Decision (Arthur Robey)

Despite fluctuations in markets associated with the respective developments in China and Greece, long-term borrowing rates for most sovereigns and credit worthy private borrowers remain remarkably low.

Record 93,770,000 Americans Not In Labor Force (LesPhelps)

July’s labor force participation rate however remained the the same as June at 62.6 percent. Before last month the labor force participation rate had not been that low since October 1977, when the participation rate was 62.4 percent.

The BLS reports that the civilian labor force did experience a slight uptick from 157,037,000 in June to 157,106,000 in July after the month of June saw it drop by 432,000.

Capping oil well blowouts within 24 hours too expensive, says Ottawa (westcoastjan)

Whether less stringent rules in Eastern Canada are appropriate is a discussion people in Nova Scotia and Newfoundland should have with their offshore petroleum boards, he said. But he adds that provincial revenues may play a role.

"Both Nova Scotia and Newfoundland get significant resource revenue from the offshore," Matthews says. "So maybe economics has to be taken more into account by the regulator."

A Once-Flourishing Pima Cotton Industry Withers in an Arid California (jdargis)

Pima cotton brought in $500 million last year, almost all of it grown in California, and generally commands at least twice the price of the more common variety, upland cotton. It was long the exception to the backdrop of the state’s overall cotton production, which has been declining for decades, hurt by recurring droughts that drain water levels and increasingly pesticide-resistant insects like the pink bollworm.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/6/15

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."

10 Comments

saxplayer00o1's picture
saxplayer00o1
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pinecarr's picture
pinecarr
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Chris interview

Chris has a good short interview by RT.com @ 

He gives a nice summary about how energy impacts the big picture, for people normally focused only on the economic side of things.  Chris's segment starts at ~5:00 minutes and goes until ~11:38 minutes.

KugsCheese's picture
KugsCheese
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Re: China’s July exports, imports plunge, causing more worry for

So the marginal debt increase cannot be covered by the marginal increase in income.  Go figure...negative interest rates!

pinecarr's picture
pinecarr
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Correction: Interview with Chris, posted above, is a year old

My bad: While the interview I posted with Chris was just recently posted at the site above on YouTube, I checked back at RT.com, and it turns out the original interview itself was from August 13, 2014. (I hate when that happens!)  It is still a good explanation on the relationship between energy (post peak cheap oil) and the economy.  But please keep in mind that the show is a year old when Greece and Russian sanctions etc are discussed.

thc0655's picture
thc0655
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Coming to a city near you?

http://www.chicagotribune.com/suburbs/post-tribune/crime/ct-ptb-gary-police-status-st-08xx-20150807-story.html

Gary homicides up 71 percent, police roster shrinking

Seven people killed on the streets of Gary in less than a week.

Most recently, a pair of teens were shot to death Thursday morning — in broad daylight -— at a suspected drug house on the city's west side.

Later, the police commission quietly acknowledged six resignations from the force. The official police roster carries 204 names, spokesman Sgt. Thomas Decanter said, but that includes at least six who are on extended sick leave.

Homicides are up 71 percent compared to last year at this time. Thirty-six people have died from violent acts so far in 2015.

As Gary experiences a rise in crime, its police are leaving for private-sector jobs and law enforcement agencies that pay more money. And although Mayor Karen Freeman-Wilson said last week that "500" officers couldn't prevent every crime, cops on the street say they are overwhelmed with the daily calls, leaving no time to be proactive in a way that could have an impact on criminal activity.

Veteran officers recall only two other times in 30 years -- 1984 and 1993 -- when the city has had fewer than 200 men and women available to protect the city. In 1999, the Post-Tribune reported that a Department of Justice study stated the city needed 300 police officers, and released a $3 million grant to hire 41 officers to reach that goal.

Of course, the population in the late 1990s was still hovering at 100,000 and the number of crimes was higher then. About 20,000 fewer people live in Gary now, but the sparse patrol division must still cover all 57 square miles.

The city has a contract with the Fraternal Order of Police that sets a minimum number of 12 officers for each shift, but recently the midnight and afternoon turns have been falling short, police said. As few as five officers have worked the midnight shift, police said, and eight during the afternoon shift, traditionally the busiest time.

To remedy the outflow, the mayor suggested last week that a significant raise is in the works, and $10,000 is a number that's been floating around.

FOP Lodge 61 President Sam Abegg said that kind of raise, if completed next year, "most certainly would quell a lot of problems we are having with the mass exodus."

cComments
8

Late Friday afternoon, the mayor released a statement saying she will propose a $10,000 pay increase for police and firefighters over a three-year period: $2,500 this year, $5,000 next year and $2,500 in 2016. She said the offer includes the need to restructure both departments and reassign some personnel who would work for both departments.

Before the mayor's announcement, Abegg said, "Anything less than 20 percent would be a slap in the face. It would still keep Gary at the low end of the scale, but the salaries would be more competitive." He declined to comment further, saying he does not intend to negotiate "in the newspaper."

Gary police are the lowest paid in Lake County, with a patrolman's salary at $39,304 per year. Part-time Gary City Council members earn $28,727, the second-highest in the state.

The police commission is processing applicants who have completed written and physical tests and last month accepted applications for another round of job candidates. But the hiring process can take up to two years.

Abegg said that if the salary were increased, the Gary Police Department would be a more desirable employer. "You get to work with the best of the best as far as experienced officers," he said. The force provides opportunities for officers to join the SWAT team, work as an investigator, learn crime scene evidence gathering and other specialty training.

"It's why a lot of us, myself included, chose to come here," he said.

Freeman-Wilson said she views the Gary Police Department as "a true family. Through the good times, dealing with tragedy and the challenges that they experience, they alway rally around."

"That sense of family has always been there," she said.

Copyright © 2015, Post-Tribune

What a travesty: 5 officers on the midnight shift in a city of 80,000 covering 57 square miles (while the "contract" REQUIRES a minimum of 12 per shift).  The District I work in has about 70,000 people, 5 square miles, and occasionally we have 5 officers on a shift.  But we also have immediate reinforcement available for dangerous situations from adjoining districts.  Well, I bet Gary officers generally arrive too late to get into many life threatening situations or play it safe enough to avoid them when the possibility of timely back up is so low.  THAT ought to cut down on police shootings.  I hope everybody in Gary is happy with that.

It's all coming to a city near each of us, and is actually progressing quite far today in many urban areas.  

Time2help's picture
Time2help
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Ratios

Where I live, the coverage is one officer for every 11,000 people. This comes directly from the local sergeant.

Arthur Robey's picture
Arthur Robey
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Arms and the Man.

Where I live, the coverage is one officer for every 11,000 people.

Hence Jade Helm and the modified officers oath? All hail Caesar! 

Where I live none are armed. This is considered a virtue. Would I carry an arm? I would consider it an onerous duty. My position is in alignment with the Swiss.

Gun politics in Switzerland are unique in Europe. The vast majority of men between the ages of 20 and 30 are conscripted into the militia and undergo military training, including weapons training. The personal weapons of the militia are kept at home as part of the military obligations. However, it is generally not permitted to keep army-issued ammunition (compatible ammunition purchased privately by the individual is still permitted); Switzerland thus has one of the highest gun ownership rates in the world.

https://en.m.wikipedia.org/wiki/Gun_politics_in_Switzerland

I would pray that I would never be forced to use it. (Be aware that it is all a flickering light show.)

But it is an Odinist virtue for a man to protect his family. 

Time2help's picture
Time2help
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Odinist virtue
Arthur Robey wrote:

Would I carry an arm? I would consider it an onerous duty.

Yes.

Arthur Robey wrote:

I would pray that I would never be forced to use it. (Be aware that it is all a flickering light show.)

But it is an Odinist virtue for a man to protect his family. 

Yes and yes.

Yoxa's picture
Yoxa
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Posts: 262
Keep in mind ....

Keep in mind that saying this:

Quote:

 an Odinist virtue for a man to protect his family

effectively asserts that in some contexts, "might makes right" can be considered A Good Thing.

Just sayin'.

 

Arthur Robey's picture
Arthur Robey
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An alternative behaviour.

I find great amusement in visualising the alternative to defending your family.

Imagine a weedy fellow cowering behind his wife, shrieking shrilly "Don't hurt me. Don't hurt me."

There are fates worse than death. 

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