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Daily Digest 8/22 - Whale Deaths Prompt Task Force, Another Day Younger and Deeper in Debt

Saturday, August 22, 2015, 10:43 AM

Economy

Fading Economy and Graft Crackdown Rattle China’s Leaders (jdargis)

Mr. Zhou’s sudden downfall — he is the first sitting provincial party chief to be purged by Mr. Xi — underscores the uncertainty that permeates the Communist elite as they contend with two unnerving developments beyond their control: an economic slowdown that appears to be worse than officials had anticipated and that could mark the end of China’s era of fast growth, and a campaign against official corruption that has continued longer and reached higher than most had expected.

Analysis Of Recent IMF Report On SDR Adjustments (FREEPOM) (westcoastjan)

“The possibility of a new currency included in the basket has also generated a higher-than-usual level of uncertainty for SDR users. Moreover, SDR users have underlined that should a new currency be added to the SDR basket, more lead time than usual would be required to adjust to the new composition. Many have indicated that a lead time of six to nine months would be desirable in such a case.”

Another Day Younger and Deeper in Debt (Nate)

As you can see, household debt was relatively stable from the mid-’50s until the turn of the century, when it ballooned for a few years until the Great Recession hit and then was subject to significant deleveraging in the years since. Still, as Neil notes, average household debt is nearly twice as high today as it was in 1989, with most of the increase coming in the form of mortgage debt, although student loans are taking a bite, too – they’re up sixfold, from $888 per household in 1989 to a painful $5791 in 2013.

Americans Are Ready to Say Goodbye to Uncle Sam (Tiffany B.)

According to the survey, enjoying “a better quality of life” and “lower cost of living” abroad were the most popular reasons to consider relocating to another country. According to the survey results, life in America is undermined by expensive health care (chosen by 55% of respondents), lower taxes (51%) and poor education (48%). Indeed, in a recent ranking of global quality of life, there is not a single American city in the top 25.

Wind Energy Is Having a Railroad Moment (jdargis)

In 2009, Skelly helped found Clean Line, which has raised more than $100 million in capital from investors including National Grid. The idea: build a series of long-haul transmission lines—400-, 500-, 700-miles long—and rent capacity to wind developers so they can send their power to market. (Rule of thumb: It costs about .3 cents to send a kilowatt-hour of power 100 miles.)

Supply, Demand Equilibrium Further Away Than Ever Before (Tom K.)

On the economic data front, German producer prices clawed their way out of deflationary conditions (MoM), while tales of retail sales in the UK came in shy of expectations, bucking the trend of recent positive data out of Blighty. Here in the US, weekly jobless claims came in a wee bit worse than expected at 277, 000, ticking higher for the fourth consecutive week. These collective overnight releases have done little to lift the mood in broader markets, as a blanket of bearishness has been laid across equity markets overnight, while government bonds across the board are being bought up like hot cakes.

US crude oil prices hit lowest since 2009, eliminating thousands of jobs (Michael W.)

“Globally there’s probably been approaching a quarter-million layoffs from the oil industry. And hundreds and billions in cancelled projects,” said Walter Zimmermann Jr, vice president and chief technical analyst at United-ICAP. “Houston is getting hit especially hard. You go to Houston and nobody talks about the economic benefit of lower oil prices. And certainly no one is talking about that in the Bakken Field [North Dakota].”

30 whale deaths prompt NOAA task force (Time2Help)

"NOAA Fisheries scientists and partners are very concerned about the large number of whales stranding in the western Gulf of Alaska in recent months," said Dr. Teri Rowles, NOAA Fisheries' marine mammal health and stranding response coordinator. "While we do not yet know the cause of these strandings, our investigations will give us important information on the health of whales and the ecosystems where they live. Members of the public can greatly assist the investigation by immediately reporting any sightings of dead whales or distressed live animals they discover."

Gold & Silver

Click to read the PM Daily Market Commentary: 8/21/15

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."

6 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4238
Prepare Now!

Prepare Now!

Chris Martenson posted this yesterday and this is exactly my thinking.

Will the central banks come and save the day again, only to have the crisis come back again at a later date? If not, how far does this go before they finally panic. What will their solution be this time? I don't think even they know.

==========

From 2008:

"No one knows what to do," Reid said. "This is a different game. We are not playing soccer, basketball or football. This is new game, and we're going to have to figure out how to [handle] it."

He added: "You could ask Bernanke, you could ask Paulson — they don't know what to do. But they are trying to come up with ideas."

=====================

I am watching this crisis spread very quickly and the near term chances of a much bigger crisis than the 2008 Lehman crisis are increasing by the day.

For the third and probably final time comes this warning. Prep now, since by the time anyone can put up an alert that a collapse is happening your options will be greatly reduced.:

star-trek-red-alert-o.gif

 

'No market has been spared': Global investors reach tipping point amid worst ...

Vancouver Sun - ‎19 hours ago‎
Investors remain particularly concerned about the U.S. Federal Reserve's strategy and the strong U.S. dollar, with China's decision to devalue the yuan raising alarms that foreign-exchange woes may eventually lead to an emerging-market debt-funding crisis.
 

China syndrome: how the slowdown could spread to the Brics and beyond

Emerging markets, once the world’s great economic hope, could see the good times end as Beijing falters. We look at which countries are most vulnerable to the 21st century’s next financial crisis

Record capital flight from China as industrial slump drags on

Telegraph.co.uk-15 hours ago
The exodus of funds is draining liquidity from interbank markets and has pushed ... The botched handling of the Shanghai equity crash has raised serious doubts ...

Slowdown in Chinese Economy Leaves African Nations Scrambling for New Investors

Atlanta Black Star - ‎Aug 21, 2015‎
china africa 5 The recent decision to devalue China's currency, the yuan, signals a slowdown in the Chinese economy. According to economists, China made the decision to make the country more attractive to foreign investors. The Chinese economy has ...
 

Japan eyes record debt servicing costs for FY2016

The Star Online-8 hours ago
TOKYO: Japan's finance ministry will seek a record 26.05 trillion yen ($213.5 billion) for interest payment and debt servicing of Japanese government bonds, ...

Moody's downgrades HSBC Brazil's deposit rating; maintains review ...

Moodys.com (press release) (subscription)-21 hours ago
Moody's also kept on review for further downgrade HSBC Brazil's long-term foreign currency senior unsecured debt rating of Baa2, as well as the long-term ...
 

From boom to bust: Brazil on the brink

Aljazeera.com (blog)-4 hours ago
As public anger grows at Dilma Rousseff over Brazil's faltering economy, what ... Sapping business and consumer confidence, the country's debt has reached a ...
 

Malaysia's reserves fall to 6-year low

The Straits Times-21 hours ago

"This one-to-one ratio is barely enough to (finance their debt) if foreign investors were to repatriate all their money out of Malaysia," said Mr Tan Teck Leng, ..

  1. Peru central bank tightens forex controls after sol falls to 9-yr low

    Reuters-Aug 21, 2015
    The central bank said that it was lowering the limit on currency derivative operations to ... The central bank will double a currency reserve requirement on any ...
     

    From Nigeria to Uganda, Africa central banks running out of options ...

    Mail & Guardian Africa-4 hours ago
    African central banks from South Africa to Kenya have been taking aggressive action this year to bolster their currencies, concerned with inflationary pressure ...
     

    Russian PM says Russia to boost FX flows to support ruble

    Reuters-3 hours ago
    "Naturally we, I mean the government, will help the central bank in the sense of ... So we, together with the central bank, will undertake a definite collection of ...
     

    Mexico's Peso Falls to Record Low Against Dollar

    Wall Street Journal-21 hours ago
    The central bank stepped up its exchange-market interventions in late July and plans to do so at least until the end of September in a bid to contain currency ...
     

    Taiwan records net financial outflow for 20th consecutive quarter

    WantChinaTimes-13 hours ago
    According to statistics compiled by the central bank, Taiwan's financial account, which measures the flow of direct investment and portfolio investments, showed ...
     

    Fed hike in question amid global-market turmoil

    CBS News-22 hours ago
    The yen and the euro are rising, despite aggressive stimulus efforts by the Bank of Japan and the European Central Bank, as popular currency "carry trades" are ...
     

    Missing Inflation Grips Dollar Bulls With Fed D-Day a Month Away

    Bloomberg-14 hours ago
    Investors scaled back expectations for an increase at next month's Fed meeting after minutes from the central bank's July gathering showed officials scrutinizing ...
     

    Weak lira adds nearly $4 bln to Turkish natural gas bill -minister

    Ledger Gazette-14 hours ago
    Turkey's lira plummeted by 1% to a fresh low of 2.8943 per dollar and to an new all-time low of 3.2042 per euro after the central bank held rates steady and ...

    Rand edges lower on China-linked risk aversion

    Moneyweb.co.za - ‎18 hours ago‎
    The rand ploughed a new low against pound sterling of 20.4070, while visiting its weakest level in 13 months versus the euro at 14.6837, as investors kept avoiding emerging market currencies. By 1519 GMT, the rand was at 12.9340 versus the dollar, down ...
     

    Falling Rupee, Results, No Rate Cut Drown Indian Equities

    The New Indian Express-7 hours ago
    "The currency market slide has been the major theme last week in India, ... value which resulted in Friday's close of Rs.65.83, a new 2-year low and breaching of ...
     

    Rupee plunges 29 paise to close at 2-year low

    The Statesman-21 hours ago
    Riding on global currency volatility wave, the Rupee on Friday plummeted sharply by 29 paise to close at a fresh two-year low of 65.83 against the US Dollar on ...
     

    Chicagoans to be charged more for electricity in coming years

    Chicago Tribune-16 hours ago
    By Cynthia Dizikes Chicago Tribunecontact the reporter ... pulled in an additional $3.4 billion this year over last, according to the PJM Interconnection, which ...
     
    1. FDIC ready to act on Puerto Rico banks if needed -letter

      Reuters-20 hours ago
      Puerto Rico's Governor Alejandro Garcia Padilla shocked investors in June when he said the island's debt, totaling $72 billion, was unpayable and required ...
       
      1. S. Korean stock market to suffer extended loss next week

        The Korea Herald-17 hours ago
        South Korean stocks are expected to face an extended loss next week, as uncertainties about a potential rate hike by the U.S. Federal Reserve continue amid ...
       
     
     
     

 

 

DennisC's picture
DennisC
Status: Gold Member (Offline)
Joined: Mar 19 2011
Posts: 342
PR Banks

The PR banks/FDIC article was interesting.  Perhaps they're thinking about getting the presses warmed up. If you're interested in getting a little free bank assessment information, check out this site: https://www.depositaccounts.com/banks/health.aspx

At the bottom of the page, if you select either the "riskiest" or "healthiest" banks in "PR" and assets 10+ million, you will get the same five banks (in one order or the reverse order).  Not saying this site is the end-all for information, it's just a source to add to any other information that you find or subscribe to with regards to bank health (if that is something that floats your boat).

Also, Jones Act.  I looked this up because the only thing I remembered was "US-flagged" ships.  Here, from Wikipedia:

The Merchant Marine Act of 1920 (P.L. 66-261), also known as the Jones Act, is a United States federal statute that provides for the promotion and maintenance of the American merchant marine.[1] Among other purposes, the law regulates maritime commerce in U.S. waters and between U.S. ports. Section 27 of the Jones Act, deals with cabotage (i.e., coastal shipping) and requires that all goods transported by water between U.S. ports be carried on U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents.[2] The Act was introduced by Senator Wesley Jones.

Time2help's picture
Time2help
Status: Diamond Member (Online)
Joined: Jun 9 2011
Posts: 2888
Moar Ultra

In your face wink

Time2help's picture
Time2help
Status: Diamond Member (Online)
Joined: Jun 9 2011
Posts: 2888
For Monday

Time2help's picture
Time2help
Status: Diamond Member (Online)
Joined: Jun 9 2011
Posts: 2888
Moar Inciting
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4238
China Poised to Raise Banks’ Liquidity to Boost Lending

"The People’s Bank of China is preparing to flood the country’s banking system with new liquidity to boost lending, according to officials and advisers to the central bank, as a weaker currency could spur more funds leaving Chinese shores.

The step—which involves cutting the deposits banks are required to hold in reserve—would signal that the Chinese central bank’s exchange-rate maneuvering in the past two weeks is backfiring, forcing it to resort to the same easing measures that so far have failed to help spur economic activity."

Largest Korea ETF Sees Worst Money Outflow on Record Amid Crisis

Bloomberg-18 hours ago
The central bank has cut interest rates four times in the past year to a record low of 1.5 percent and the government introduced its largest-ever budget this year.
 

Venezuela Declares State of Emergency Near Colombian Border

Bloomberg - ‎21 hours ago‎
Existing closures of border crossings in the area will be extended indefinitely, he said. “I will not open the border until these attacks on our economy from Colombia stop, I will not open it,” Maduro said in a televised address Saturday. One of the ...
 

Gulf Stocks Deepen Slide Amid Global Selloff

Wall Street Journal-1 hour ago
“The multiple fears of China slowing down, a currency war, reduced oil-related income for regional governments to spend and a growing U.S. economy not ...
 

Emerging markets turmoil: in charts

Financial Times-3 hours ago
But the trigger for the deepening rout is mounting concerns over China's economy — a vital driver of emerging markets as a whole. As the charts show, the ...
 
 
  1. Auditors' fears increase over Hong Kong companies

    Financial Times-2 hours ago
    ... sharply increased their warnings over the financial health of Hong Kong companies at time when investors fear the repercussions of China's slowing economy ...
     

    Taiwan, HK sink into bear markets

    Taipei Times-Aug 22, 2015
    China's surprise devaluation of the yuan last week and prospects for the first US ... Taiwanese stocks entered a bear market amid concern China's economic ...
     
     
    ==================================
     Let us now all sit back and watch as all of the brilliant decisions of governments and central banks start to pay off:
     
 

 

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