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Daily Digest 8/20 - Going Off-Grid In Comfort, Did China Kick-Start A New Gold Bull Market?

Thursday, August 20, 2015, 8:49 AM

Economy

Greece pays ECB on maturing government bond- govt source (jdargis)

The first tranche amounts to 13 billion euros, of which about 12 billion euros will be used to pay down debt, including an earlier bridge loan and the maturing Greek government bond held by the ECB.

The initial tranche was paid in cash. Another 10 billion euros for the recapitalisation of banks was sent to a segregated account in the form of ESM notes.

Warren Buffett’s favourite valuation measure signals stock markets are overvalued (Aaron M.)

In an interview with Fortune magazine in 2001 Mr Buffett said: “It is probably the best single measure of where valuations stand at any given moment. And as you can see, nearly two years ago (before the tech crash) the ratio rose to an unprecedented level. That should have been a very strong warning signal.”

Military May Be Engaged in Illegal Psychological Operations and Propaganda Against U.S. Citizens (time2help)

This is not the first account of possibly improper use of intelligence operations against U.S. citizens. One day before Rolling Stone reported that Lt. Gen. Caldwell commanded the execution of an illegal PSYOP campaign against U.S. senators, Information Week published an article revealing that the Air Force sought a contractor to deploy false identities on social media sites like Facebook to disseminate DOD propaganda to civilians in Iraq and Afghanistan. This is problematic because there is nothing to protect Americans from this type of propaganda when they use social media sites that are targeted by the Air Force. Congress should review all U.S. intelligence operations that might target or impact Americans.

Beginning of a Breakdown in International Trade-Hugo Salinas Price (pinecarr)

It’s not just Greece or the European Union. Salinas Price, an 83 year old billionaire, says, “The world has never been in such a plight. The world has never gotten into such a situation—never. The United States receives goods from China and sends them dollars, and they can send them any amount of dollars.

There is no longer balanced trade in the world. There are imbalances that are built into the system. What that has lead up to is this present chaos. This is going to come apart in a very ugly way sooner or later.”

A New Ally in the Battle for Being Sovereign (Tiffany B.)

I received my first exposure to the stock market at age 6, when my dad showed me how to read the stock tables published in the back of the newspaper. I started investing for real in my late 20s, using the skills I learned as a local reporter, and later as a correspondent for many years at PBS Nightly Business Report: Keep your eyes and ears open to new ideas and new trends, research thoroughly and look for the winners and the losers in every story. What better way is there to invest or speculate?

Did China Kick-Start A New Bull Market In Gold? (Taki T.)

To make that point, you have to look at the big picture. China is a country focused on the very long term. In order to understand their standpoint, you need to take a similar view. The chart below (courtesy of Sharelynx) illustrates the very long term plan of China when it comes to their currency. Any coincidence their gold reserves started to grow exponentially since the great financial crash?

Silver - More Evidence of a Price Bottom (GE Christenson)

Perhaps more useful is the same data but plotted as the silver to gold ratio. The ratio and the price of silver correlate well. Purple lines indicate trend line resistance. The dashed green arrow is my estimate of future price direction for silver.

The Boundaries and Future of Solution Space – Part 3 (thc0655)

Financial crisis, for instance, will be profoundly destabilizing, and is going to precipitate very significant, and very negative, social consequences that are likely to impact on the functioning of the energy industry. A liquidity crunch will cause purchasing power to collapse, greatly reducing demand at personal, industrial and national scales. With production geared to previous levels of demand, it will feel like a supply glut, meaning that prices will plummet.

Going off-grid without sacrificing comfort (Brian B.)

Their home is just that, a cozy, two-storey with all the creature comforts. They enjoy TV, Internet, fridge and freezer, washer and dryer, daily hot showers, microwave, even a bread maker, just like the rest of us. They also now enjoy not receiving that monthly statement from the electric company.

Fukushima fishing cooperative allowed Tepco to discharge the contaminated groundwater to the sea (locksmithuk)

The groundwater to be discharged is pumped up beside the reactor buildings. From Tepco’s data of 8/11/2015, Cs-134/137 density of the pumped water was 238,000 Bq/m3. Tepco states they’ll “filter” the pumped water before discharging but their nuclide analysis data covers only Cesium-134/137 and Iodine-131. The density of other nuclides such as Sr-90 is not announced.

If You Spill Water On This Book, That's A Good Thing (jdargis)

When people in a community in Bangladesh peeked through a microscope at water teeming with bacteria, they had a glimpse into what was making some of their community members sick. When they looked again, after the water had trickled through a page of the book, they saw clear, pristine water. "One woman said, 'If my husband doesn't want to buy it, I would write poetry and sell it so I could buy it myself,' " says Dankovich, a postdoctoral researcher at Carnegie Mellon University.

EPA Cracking Down On U.S. Methane Waste (Tom K.)

Although the oil and gas industry opposes the move (and environmental groups welcome it) the technology to cut down on methane emissions appears relatively straightforward and compliance with EPA’s rules should not be too difficult.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/19/15

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."

11 Comments

saxplayer00o1's picture
saxplayer00o1
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Currency turmoil in emerging markets escalates

Currency turmoil in emerging markets escalates

Financial Times-2 hours ago
Currency turmoil in the wake of China's recent devaluation escalated on Thursday, triggering drastic action from central banks and sharp falls in foreign ...
 

Race to Bottom Gets More Crowded: Egypt, Nigeria Seen Devaluing

Bloomberg-1 hour ago
To Bernd Berg, a London-based strategist at Societe Generale SA, African currencies like the naira and those of former Soviet Union countries “will be next.”.
 

Currency collapse in Belarus

Charter 97-3 hours ago
As a result, dollar increased by Br75 and now costs Br16 498. Currency exchange offices sell dollars at Br16 600 - 16800. Euro increased by Br139 and traded ...

Turkey's Deepening Turmoil Sends Currency to Record Low

Bloomberg-3 hours ago
Turkish stocks, bonds and the currency fell, with the lira trading below 3 per dollar for the first time, as domestic political turmoil deepened amid a rout across ...

ASIA CREDIT CLOSE: New issues slide in weak market conditions

Reuters-4 hours ago
SINGAPORE, Aug 20 (IFR) - A new slump in Chinese stocks dragged other regional equity markets down, undermining sentiment in the credit markets as well.

Chinese Stocks Resume Rout on Economy, Capital Outflow Concerns

Bloomberg-6 hours ago
China's central bank injected the most funds in open-market operations since ... The People's Bank of China pumped a net 150 billion yuan ($23 billion) into the ...
 

PBOC Conducts Biggest Cash Injection Since Mid-February

Nasdaq-10 hours ago
SHANGHAI—China's central bank injected the largest amount of cash into the financial system since mid-February this week, as Beijing seeks to prevent ...

Emerging Stocks Head for Six-Year Low as Currency Rout Deepens

Bloomberg-22 minutes ago
“All these factors -- China, commodities, the Fed and home-grown ... to hold emerging-market debt over U.S. Treasuries widened three basis points to 396, ...
 
 

So Long September: Bond Traders Defer Their Date With the Fed

Bloomberg-27 minutes ago
Traders gearing up for the Federal Reserve to raise interest-rates next month reversed course Wednesday after minutes from the central bank's July meeting ...
 

Kazakhstan currency plunges by record 23pc as government ...

Yahoo Finance UK-4 hours ago
Supply and demand will determine the exchange rate, central bank governor Kairat Kelimbetov said, adding that there will only be intervention if stability is ...
 

Russian Consumer Plight Worsens as Sales Flop Amid Diving Wages

Bloomberg-5 hours ago
The central bank has said that it may worsen its forecast for a 3.2 percent contraction this year. Inflation soared to a 13-year high in March before slowing to 15.6 ...
 

Russians hit hard by falling rouble

The Straits Times-15 hours ago
But sales are down by almost half, a gloomy reflection of Russia's economic ... Inflation has reduced the purchasing power of Russian wages by more than 8 per ...
 

The Asian Century Hits a Speed Bump

Bloomberg-4 hours ago
The confluence of stresses -- from China's slowdown, the fallout from the ... A mix of debt, fading competitiveness, and the fallout from China's slowdown is ...

Malaysia Rules Out Capital Controls as Currency Plunges

Bloomberg-2 hours ago
The central bank's efforts to defend the ringgit -- Asia's worst performer against the greenback this year -- contributed to the country's foreign-exchange reserves ...
 

Indian government steps up rate cut pressure on RBI

Daily Mail-3 hours ago
NEW DELHI/MUMBAI, Aug 20 (Reuters) - Indian Finance Minister Arun Jaitley is stepping up pressure on the central bank to cut rates as the economy struggles ...
 
  1. European Stock Selloff Intensifies Amid Global Growth Concern

    Bloomberg-3 hours ago
    Markets are pricing in a 38 percent probability the central bank will act in September, lowering the odds from 48 percent two days ago. “Delaying an interest-rate ...
     

    Lira Weakens Past 3 per Dollar Sending Stocks Falling With Bonds

    Bloomberg-6 hours ago
    The central bank left Turkey's interest rates unchanged on Tuesday, and signaled at a meeting with economists yesterday it may not raise borrowing costs before ...
     

    Bear Market Looms for Hong Kong Stocks as Index Sinks With China

    Bloomberg-7 hours ago
    China's central bank this week injected the most funds in open-market operations since February as intervention to prop up the yuan strained the supply of cash ...
  1. Junk-Bond Risk Gauge Surges to '15 High Amid Escalating Oil Rout

    Bloomberg-14 hours ago
    The debt is poised to post a third straight month of losses -- something that has ... “The Federal Reserve, China, oil prices, and the U.S. dollar continue to be the ...
     

    FTSE 100 falls into correction territory amid global economy fears

    The Guardian-4 hours ago
    Britain's blue-chip index of leading shares has fallen into correction territory as fears over the global economy hit European stock markets again. The FTSE 100 ...

    Taiwan July export orders fall 5 pct y/y, worse than expected

    Reuters-3 hours ago
    ... orders for July, released by the Ministry of Economic Affairs on Thursday. The data is an indication of the strength of Asian exports and of global demand for ...

    EconomyBrazil unemployment surges to 5-year high

    Financial Times-1 hour ago
    Here's another economic snapshot of Brazil that President Dilma Rousseff would probably rather not see. Unemployment in Latin America's largest economy ...

Brazil-based Stocks To Watch For: Petroleo Brasileiro Petrobras SA ...

Wall Street Point-22 minutes ago
Analysts surveyed by the central bank predict the economy will post the longest recession since the 1930s. A simmering corruption investigation at oil company ...
 

Greek Public Debt Rises to 312.8 Bln Euros in Late June

Greek Reporter-17 hours ago
debt Greece's central government debt rose by 100 million euros to 312.8 billion euros at the end of June this year, compared to 312.7 billion at the end of March ...

Spanish Go Back to the Building Site While Wages Go Nowhere

Bloomberg-4 hours ago
Foreign investors are seeing opportunities to build as Spain's economy rebounds from a debt-fueled property collapse that left the country with a surplus of 1.4 ...
 

World's Biggest Wealth Fund Tackles New Era as Cash Flows Dry Up

Bloomberg-7 hours ago
The government in 2012 approved a plan to reduce holdings in Europe to 41 percent from 54 percent of the total portfolio as the region's debt crisis raged.

This country's pension fund just lost nearly $9 billion

CNNMoney-20 hours ago
Norway's pension fund, the world's largest sovereign fund, lost 73 billion kroner ($8.8 billion) in the second quarter. The 0.9% decline -- its first losses in three ...

 

 

Venezuela's currency against US dollar tumbles 737%

Venture Capital Post-6 hours ago
The debt repayment of $5 billion is due in October. With oil revenues dwindling by the day, Venezuela may face default this year. The inflation rate in Venezuela ...
 

Asian Islamic bonds turn to losses as confidence in leaders ebbs

The Malaysian Insider-10 hours ago
Indonesia's Shariah-compliant sovereign bonds due in 2024 have dropped 3.5% since April and the 2025 Malaysian debt lost 1.9%, compared with a 2.1% ...
 

UPDATE 1-Saudi riyal forwards hit as cheap oil erodes confidence

Reuters-56 minutes ago
Five-year Saudi credit default swaps, used to insure against a sovereign debt default, shot up 19 points to 88 points, their highest level since September 2012.
  1. The Peak Oil Crisis: A $4 Trillion Hole

    Falls Church News Press-15 hours ago
    As these oil companies, nationalized and publically traded, will be producing roughly the same amount of oil in the next few years, the $4 trillion will have to ...
     
    1. Global tagging system proposed for derivatives trades

      Reuters-21 hours ago
      Seven years on and regulators are still unable to get a reliable snapshot of each bank's derivatives exposures which can straddle many borders in a $630 trillion ...
       

      Emerging markets may weigh heavily on global growth

      The Straits Times-16 hours ago
      SHANGHAI • Capital gushing out of emerging market economies has neared US$1 trillion (S$1.4 trillion) in the past 13 months, roughly double the amount ...
       
       
      1. Japan expected to issue record amount of government bonds this ...

        Arirang News-10 hours ago
        Japan's Nihon Keizai Shimbun reported Thursday that the country may issue a total of 30 trillion yen or over 242 billion U.S. dollars worth of government bonds.
         

        Korea's Government Debt Unlikely to Drop for a While

        BusinessKorea-7 hours ago
        Last year, the government debt amounted to 530.5 trillion won (US$446.9 billion), equivalent to 35.7 percent of GDP, to exceed its goal by a margin of 0.6 ...

Mexico's Foreign Reserves Fall by Nearly $1.4 Billion

Latin American Herald Tribune-11 hours ago
The M1 money supply, which includes currency, coins and demand deposits, rose by 11.84 billion pesos (about $721 million) to 1.08 trillion pesos (some $65.77 ...
 

Glencore Billionaire Club Loses Half Its Members as Stock Dives

Bloomberg-7 hours ago
Glencore Plc's initial public offering minted six billionaires in 2011, when Ivan Glasenberg and five other executives together controlled stakes worth $24 billion.
 

Chinese firms with foreign debt face headwinds as yuan softens

Economic Times-10 hours ago
In 2014, Chinese firms sold nearly $100 billion of bonds in overseas markets, ... as they have sizable foreign debt," said the head of China corporate business at ...
 

No IL budget worries local agencies, may have to close in September

KWQC-TV6-14 hours ago
Lawmakers and Governor Bruce Rauner haven't found a compromise yet to fix the $6 billion deficit that was left after temporary tax increases expired.
 

UPDATE 2-Banco do Brasil raises loan exposure limits to large firms

Reuters-19 hours ago
The bank will extend 9 billion reais ($2.6 billion) in fresh credit to a "wide ... The move does not run counter to government efforts to narrow its budget deficit, ...
 

UPDATE 1-Indonesia's infrastructure promises fail the chilli challenge

Reuters-5 hours ago
... with a massive infrastructure push, but so far his administration has failed to spend the $22 billion budgeted for such projects ... So in total, we are still in deficit.

True cost of health care to average family is $11K per year: report

CTV News-4 hours ago

While many Canadians proudly boast about the country's "free" health care, a new study looks at exactly how many tax dollars go into the syste

Venezuela Temporarily Closes Border With Colombia After Attack ...

International Business Times-3 hours ago
Venezuelan President Nicolas Maduro late Wednesday ordered the closing of its western border with Colombia 72 hours. In this photo, dated July 30, 2015, ...

Greece could soon get 1000 bitcoin ATMs

CNBC - ‎Aug 19, 2015‎
Bitcoin ATMs could spring up across Greece as soon as October as citizens and businesses become increasingly desperate to move their money despite capital controls. BTCGreece, which bills itself as the country's first bitcoin exchange, plans to ...
saxplayer00o1's picture
saxplayer00o1
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Arthur Robey's picture
Arthur Robey
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Good news Friday

Coming at you from the East.

What do you get if you cross a musician with a scientist? Dunno. But you just might get a cancer killer.

Time2help's picture
Time2help
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(Moar) Divide & Conquer

Q: How do you get roughly 60 million people all twisted, wound up and emotionally vulnerable?

A: You run a PsyOp on them.

Edit: Not advocating infidelity here, just pointing out that a lot of families will be casualties of this.

cmartenson's picture
cmartenson
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Somethign very fishy...
Time2help wrote:

Q: How do you get roughly 60 million people all twisted, wound up and emotionally vulnerable?

A: You run a PsyOp on them.

Edit: Not advocating infidelity here, just pointing out that a lot of families will be casualties of this.

My spidey senses say that there's something very off about this AM hack and leak.  Given that a whole host of government officials are caught up in this, and it's a very public and therefore bureaucratically attractive affair [sic], the expected response would have been a vigorous FBI response, with lots of press conferences.  Lots and lots of updates and a stern statements about how the perps will be caught and all resources are being brought to bear...etc.

But almost nothing.  Chirping crickets.

That strikes me as odd, and it means that this release is serving some purpose to those in power.  What, I don't know yet.

For the record, I deplore the fact that my culture pushes sex, uses sex to sell movies and products, sexualizes youths but then also shames sex.  It's a very twisted approach.

Personally, however people decide to conduct their private lives is up to them as far as I am concerned.  I have no interest in shaming or controlling whatever anybody chooses to do with their bodies or lives as long as it does not directly and negatively impact my life.  

I guess I share that trait with Libertarians...I hold the same views about drugs...they are a medical and social issue, not a criminal matter.

RoseHip's picture
RoseHip
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Posts: 150
Protecting Morality

"My spidey senses say that there's something very off about this AM hack and leak.  Given that a whole host of government officials are caught up in this, and it's a very public and therefore bureaucratically attractive affair [sic], the expected response would have been a vigorous FBI response, with lots of press conferences.  Lots and lots of updates and a stern statements about how the perps will be caught and all resources are being brought to bear...etc.

But almost nothing.  Chirping crickets.

That strikes me as odd, and it means that this release is serving some purpose to those in power.  What, I don't know yet"

Maybe the projection of supporting a business model that is completely morally intolerable has something to do with it? Maybe they see the perps as the good guys? 

Time2help's picture
Time2help
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Re: Protecting Morality

Whatever is going on altruism and morality have nothing to do with it.

DennisC's picture
DennisC
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Posts: 342
You Can't Fix Stupid

Courtesy of comedian, Ron White:

"You can't fix stupid.  There's not a pill you can take.  There's not a class you can go to.  Stupid is forever."

Maybe this is something of a "non sequitur" for the thread but I thought it kind of fits in (e.g. using one's company email domain for non-company business; an instant out-the-door in many private companies).

RoseHip's picture
RoseHip
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Corruption is it's own industry

Can you imagine the economic stimulus if all those AM users payout BM money. 

saxplayer00o1's picture
saxplayer00o1
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Posts: 4237
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DennisC's picture
DennisC
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Posts: 342
Reprise

https://www.dnainfo.com/new-york/20150821/marble-hill/worker-who-lit-mat...

May not be enough trophies for this year's (typically posthumous) Darwin Awards.

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