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Daily Digest 8/24 - The Fight Against Corrosion Creep, Turning Red To Blue For Solar

Monday, August 24, 2015, 10:10 AM


China On Track For a Record Year For Gold Bullion Withdrawals From the Shanghai Exchange (Adam)

So much for the 'weak demand' in China.

Rusted Development: The Fight Against Corrosion Creep (jdargis)

Despite such vast expenditures, rust cannot be stopped, only slowed. No matter how tall our buildings, strong our bridges, or graceful our national monuments, they’re all, ultimately, headed for the trash heap. The best we can do is add another coat of paint and hope to forestall the inevitable. Rust, in other words, reveals a fundamental truth: it’s a red flaky trace of entropy. It ensures that everything that’s here today will be gone tomorrow.

Stocks Correct, Panic Ensues. The End Of The World? (Taki T.)

The long term S&P 500 chart reflects the deteriorating conditions signaled by the TED-spread. The key observation on that chart is the violation of the steep uptrend (highlighted with the rising green dotted line), which started with the announcement of the ‘QE infinity’ program in the autumn of 2012. We have marked the violation of the uptrend with a red circle. Make no mistake, this is a major event, with potentially a big impact.

It's Time To Plan Your Escape From America (Tiffany B.)

For most people, the overarching goal of a move abroad is a better quality of life than they could enjoy where they are now. That includes wealth, lifestyle, personal relationships and home and possessions. The trick is to strike the optimal balance. As I said yesterday, some places that offer outstanding tax and financial benefits are boring, expensive and cold. They may be great places for your money, but not for you. Or maybe they are — but only you can be the judge.

Stop Universities From Hoarding Money (jdargis)

University endowments have surged in recent years as markets recovered from the financial crisis. Yale’s endowment now tops $24 billion, up 50 percent from 2009.

Income inequality has left elite endowments heaving with cash. Following the tradition of Gilded Age philanthropists like Rockefeller, Carnegie and Vanderbilt, financiers are steering large charitable gifts to elite universities.

How One of Katrina’s Feel-Good Stories Turned Bad (jdargis)

These stories were undoubtedly true — many people did survive Katrina and go on to lead better lives. But they also obfuscated other, more complex truths about the difficulties tens of thousands faced in being transported far away from home, to cultures and communities nothing like what they knew. In the television reports and newspaper articles about Kathy Phipps, race, trauma, depression, and anxiety are hardly mentioned, despite the fact that those are the things that consumed Kathy’s life shortly after arriving in Utah.

Oil Price Collapse Triggers Currency Crisis In Emerging Markets (Tom K.)

Other countries now feel pressure to let their currencies depreciate, and if they have adhered to a currency peg up until now, some are being pushed to float. Kazakhstan decided to scrap its currency peg last week, and the tenge promptly lost 23 percent of its value against the dollar. Vietnam also devalued the dong.

The devaluations tend to have a cascading effect, with other emerging markets coming under increasing pressure from their competitors.

Turning red to blue for solar energy (jdargis)

Solar cells are based on semiconductor materials. Non-conductors—into which we will carelessly toss semiconductors—have what is called a bandgap. This is the energy required to excite an electron from a bound state to a conducting state. In the bound state, electrons stay in the vicinity of the atoms to which they are attached, while in the conducting state, they are free to move. Solar cells use sunlight to excite electrons from the bound state to the conducting state, and the electrons give up that energy when they perform work for us.

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."


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China Black Monday Repost With A few More

China's 'Black Monday' as stock market slides 8.5%

Fortune-4 hours ago
... Chinese stock markets remain mostly walled off to foreigners, the reverberations shouldn't have anywhere the same impact as the Black Monday of October, ...

China's Stock Market Suffers Biggest One-Day Fall Since 2007

New York Times-6 hours ago
The ruling party wants to use the markets to raise money for state companies to reduce debt loads and modernize. The party also wants to encourage stock ...

Global Stock Markets Suffer 'Black Monday'

Newsweek-32 minutes ago
The financial markets were off to a rough start on a morning already being dubbed Black Monday on social media. The poor performance is apparently tied at ...
  1. Credit Risk Surges for Europe's High-Yield Companies Amid Rout

    Bloomberg-27 seconds ago
    Chinese shares tumbled by the most since 2007 on Monday, stocks in Germany ... sending the yields on benchmark Treasuries to a four-month low and those on ...

    'Black Monday': £56bn wiped off FTSE 100 as China fears spark ...

    Telegraph.co.uk-40 minutes ago
    Global currency wars: what China's devaluation really mean .... Larry Summers, former US treasury secretary, has described a September lift-off as "extremely ...

    FTSE plunges below 6000 on China's 'Black Monday'

    Citywire.co.uk-6 hours ago
    Other major central banks also remain very supportive,' Goradia said. ... This in turn could throw the Federal Reserve and Bank of England's plans to raise ...

    Dwindling Reserves Force Southeast Asia to Escalate Currency War

    Bloomberg-9 hours ago
    Southeast Asia's dwindling foreign-exchange holdings are exacerbating the risk of a currency war as policy makers have little choice but to allow exchange rates ...

    Brazilian Real Leads Latin America Currency Rout Amid Sell-Off

    Bloomberg-1 hour ago

    The real plunged to a 12-year low, leading losses for Latin American currencies amid a global rout spurred by concern that the economic slowdown is worsening ..

    Stock Rout Spreads After China Plunge as Oil Tumbles, Yen Gains

    Bloomberg-10 hours ago
    Russia's ruble led a selloff in emerging-market currencies, while the yen strengthened and 10-year Treasury yields slid below 2 percent for the first time since ...

    New Zealand Central Bank: Rate Increases 'Off the Table' for Some ...

    Wall Street Journal-9 hours ago
    WELLINGTON, New Zealand—Reserve Bank of New Zealand Deputy Governor Grant Spencer said any interest rate increases in New Zealand are likely “off the ...

    India's Central Bank Pledges To Contain Stock Market, Rupee Losses

    International Business Times-6 hours ago

    India's central bank Governor Raghuram Rajan pledged to contain major losses in the country's stock market and currency. In this photo, Rajanlistens to a ..

    Indian Stocks Tumble Most in Six Years With Rupee Amid Selloff

    Bloomberg-4 hours ago
    The gauge touched a four-year low earlier after Reserve Bank of India Governor Raghuram Rajan said central banks should avoid giving “booster shots” to stock ...

    India to urge US Fed to defer rate hike plan

    Financial Express-18 hours ago
    India would urge the US Fed to defer its plan to raise interest rates when the G20 finance ministers and central bank governors meet on September 4-5 in ...

    Won Drops to Five-Year Low Amid Asia Stocks Rout, Korea Tensions

    Bloomberg-6 hours ago
    The Bank of Korea will prepare necessary measures to stabilize markets while closely monitoring North Korean risks, the central bank said in a statement after ...
    1. Denmark to Borrow 14% More in 2016 as Budget Deficit Widens

      Bloomberg-7 hours ago
      The bigger borrowing requirement comes as Denmark continues to exist without government bond auctions as part of the central bank's effort to defend the ...

      Ringgit Sinks With Shares as Oil Keeps Dropping Amid Stocks Rout

      Bloomberg-11 hours ago
      The Financial Markets Association of Malaysia said it's encouraged by assurances from the prime minister and the central bank governor that there are no plans ...

      Singapore Dollar Slides Vs USD as Risk Aversion Takes Hold

      Wall Street Journal-12 hours ago
      But there is speculation of China's central bank stepping in soon with fresh monetary policy easing measures, which could alleviate the stock market collapse.
      1. EMERGING MARKETS-Emerging assets hit new multi-year lows on ...

        Reuters-4 hours ago
        "When the central bank intervened in the past it was a Russia-specific move related to sanctions. Now, we are seeing the same story in Mexico, Malaysia, ...

    Turkish lira sapped by political uncertainty, central bank inaction

    Economic Times-2 hours ago
    Economists have said the central bank desperately needs to hike rates to defend the lira and complain that it is in thrall to President Tayyip Erdogan, who has ...

    Vietnam's bad debts rise to 3.72 pct of loans in June: central bank

    Thanh Nien Daily-9 hours ago
    Bad debts in Vietnam's banking system rose to 3.72 percent of loans in June from 3.15 percent in May, although lending has grown more quickly than previously ...

    Fed Likely to Hold Off on September Rate Increase: Business ...

    Wall Street Journal-8 hours ago
    Just 37% of the economists polled said the central bank will increase the federal-funds rate next month, according to a National Association for Business ...

    Rand's Record Plunge Seals Case for South African Rate Increases

    Bloomberg-3 hours ago
    The Reserve Bank raised its benchmark repurchase rate by 25 basis points to 6 ... The central bank targets inflation between 3 percent and 6 percent and will ...

    African Assets Tumble as Commodity Slump Hurts Bonds, Currencies

    Bloomberg-1 hour ago
    Eight of the world's 10 worst performing currencies as of 12:27 p.m. in London were African, with Zambia's kwacha and South Africa's rand falling to new lows ...

    Rand's Slump Adds to Nene's Troubles as Debt-Service Costs Rise

    Bloomberg-8 hours ago
    Debt-service costs would consume 10.1 percent of expenditure, compared with 9.6 percent the previous year, he said. Net debt was projected to rise to 42.5 ...

    Australian dollar drops as 'fear takes over' global markets

    Sydney Morning Herald-6 hours ago
    The Australian dollar's resilience may be over after it fell to a six-year low on Monday after a Chinese sharemarket rout tipped emerging market currencies into ...

    Vladimir Putin Pressures Russian Exporters to Sell Foreign Currency

    Chiang Rai Times-Aug 23, 2015
    MOSCOW – Vladimir Putin's government has resumed pressure on exporters to sell foreign currency in an effort to prevent global market turbulence from ...
    1. MarketsRouble set for new record low amid EM storm

      Financial Times-5 hours ago
      The rouble is on track to close at a new record low as it leads the plunge in emerging market currencies. The dollar has climbed 3 per cent against the rouble ...

      Russia's ruble falls to all time low on China's 'Black Monday'

      Ukraine Today-1 hour ago
      Fears of a Chinese economic slowdown pushed the Russian ruble into freefall on Monday (August 24) approaching all-time lows. The ruble slipped 3% to 71.32 ...
    1. Official rate of Belarussian rouble falls 5 pct vs the dollar - Central bank

      Reuters-4 hours ago
      ... around 5 percent on Monday to 17.601 to the dollar, according to central bank data, coming under pressure from currency volatility in Russia and elsewhere.
  1. Taiwan Stocks Sink to 2012 Low on China Slowdown 'Panic'

    Bloomberg-7 hours ago
    Taiwan equities entered a bear market last week amid concern China's slowdown and currency devaluation will further dent exports, which has already dragged ...
  1. Chile peso slips to new 12-year low, breaks 700 per dollar barrier

    Reuters-2 hours ago
    SANTIAGO Aug 24 Chile's peso currency zipped past the 700 per U.S. dollar level Monday morning, to a new 12-year low, pressured by tumbling prices for ...

Daimler Cutting 1500 Brazil Truck Jobs as Demand Plunges

Bloomberg-1 hour ago
Daimler AG is eliminating 1,500 jobs at its Brazilian truckmaking division as demand for commercial vehicles in the country shows no sign of recovery. Cutting ...

Economists cut Brazil's outlook for 2015, 2016

MarketWatch-10 minutes ago
SAO PAULO--Economists reduced their view for Brazil's economic performance for this ... Brazil's gross domestic product is expected to contract 2.06% this year, ...

Brazil May Register the Lowest GDP in 25 Years in 2015

The Rio Times-2 hours ago
The forecasts for the public sector's net debt have slowly decreased since June, but remained unchanged from the previous report, at 36.15 percent of the GDP.
  1. Brazil Bovespa index slumps to 6-year lows following China

    Reuters-40 minutes ago
    Brazil's benchmark Bovespa stock index last traded 5.7 percent lower at 43,121, its lowest level since early 2009. Shares of state-run oil company Petroleo ...
  1. Brazil Leads Latin America Currency Rout as Stocks Join Selloff

    Bloomberg-12 minutes ago
    Brazil's real and its stocks led declines in Latin America on speculation that an economic contraction will deepen as growth in the nation's top trading partner ...
  1. Illinois Towns Drowning in Pension Debt From Hundreds of Funds

    Bloomberg-2 hours ago
    The pension-funding crisis undermining the stability of Illinois and Chicago is rippling through hundreds of smaller governments, squeezing budgets as officials ...
    1. Christie's Recovery Elusive as Bond Market Penalizes New Jersey

      Bloomberg-6 hours ago
      Bond prices suggest otherwise. The extra yield investors demand to buy New Jersey bonds instead of top-rated debt is holding close to the highest since at least ...

      U.K. Property Seen in Bubble Amid 'Delusional' Rent Bets

      Bloomberg-5 hours ago

      Proposals by the Organisation for Economic Co-operation and Development to limit tax exemptions on debt would hurt real estate shares as property companies ...

      Italian Bonds' Resilience With Spain's Showcase ECB Firewall

      Bloomberg-2 hours ago
      Italian and Spanish 10-year bond yields have risen less than 10 basis points since China unexpectedly devalued its currency on Aug. 11, sparking a selloff in ...

      Mideast Stocks Extend Decline Led by Saudi Arabia as Oil Sinks

      Bloomberg-6 hours ago
      Moody's Investors Service estimates the nation's debt-to-gross domestic product may climb to 6.4 percent this year if the government raises 115 billion riyals ...
      1. Puerto Rico statehooders see opportunity as woes deepen

        The Detroit News-3 hours ago
        The local government receives lower Medicaid and Medicare reimbursements, ... a year in Medicaid alone than if it were a U.S. state, said island congressional ...
        1. CANADA FX DEBT-C$ tumbles to 11-year lows as oil dives 4 pct on ...

          Reuters-1 hour ago
          CANADA FX DEBT-C$ tumbles to 11-year lows as oil dives 4 pct on China. * Canadian dollar at C$1.3249 or 75.48 U.S. cents * Bond prices higher across the ...

          Angry investors capture head of China metals exchange

          Financial Times - ‎Aug 23, 2015‎
          The head of a Chinese exchange that trades minor metals was captured by angry investors in a dawn raid and turned over to Shanghai police, as the investors attempted to force the authorities to investigate why their funds have been frozen. Investors ...

      Mexican peso hits record low vs. dollar, could go lower

      The Mexican peso fell to a record low of 17.25 to the dollar Monday amid a broad selloff in emerging-markets currencies. The Mexican currency MXNUSD, -0.758914% recovered slightly in recent trade to 17.10 to the dollar, but many strategists expected it to go lower as a broad selloff in emerging-markets currencies continues.

      CORRECT: Stoxx Europe 600 ends 5.3% lower for worst day since Dec. 2008


      Some advice to China's government and central bank:

      You've tried everything else. Maybe you can put on those slippers and try this:


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Brazil 10 Year Government Bond nearing 14%
  1. Companies Reassess Jobs in Brazil, Nigeria Debt Amid Market Rout

    Bloomberg-7 minutes ago
    In South Africa, mobile-phone operator MTN Group Ltd. gave up on a plan to repay early about $500 million of debt held in Nigeria, its biggest market, because it ...
    1. Illinois towns drowning in pension debt from hundreds of funds

      Reading Eagle-49 minutes ago
      CHICAGO — The pension-funding crisis undermining the stability of Illinois and Chicago is rippling through hundreds of smaller governments, squeezing ...

Brazil 10 Year Government Bond



+0.22 +1.62%

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Arthur Robey's picture
Arthur Robey
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Posts: 3936
Falling against what?

All these currencies are falling against what,  if not the $ US? Is this the part where the $ US comes flooding home? Remembering that a dollar bill is a promise to pay. Pay what? Obviously not gold, that much has been made clear.

So what do I get from the US if I am the Exchequer of some poor country in Africa and I rush to the safe haven of the dollar?  A promise, but of what? 

All a bit too esoterical for me. Perhaps Janet could explain. Then again,  perhaps I might dip out. Ì have enough trouble with my head. 

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Arthur Robey
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Joe Speaks.

I have To put this here it is just too precious. 

'Fundamentals' of Australian economy still good: Hockey
Treasurer Joe Hockey moved to reassure Australians about the economy.
If you want to read what other pearls of wisdom Joe has to offer go here. 
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China Strong Enough to Weather End of Stock Support, Paper Says

Shanghai Composite Index

Currently down 4.5%

China Stocks Extend Biggest Plunge Since 2007 on Support Doubts

Bloomberg-25 minutes ago

“It’s panic selling and an issue of confidence,” said Wei Wei, an analyst at Huaxi Securities Co. in Shanghai. “The government won’t step in to rescue the market again as it’s a global sell-off and it’s spreading everywhere now. It’s not going to work this time.”


China Strong Enough to Weather End of Stock Support, Paper Says

Bloomberg-23 minutes ago
China should wind down its stock market support program even if prices continue to fall, according to a commentary in a state-run official economic daily.


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A few more stories

Commodity rout unlike 2008 recession, no China to the rescue ...

Reuters-22 hours ago
While some additional spending on infrastructure is already in the pipeline, it won't nearly match the boom seen in the years following the 2008 global recession.

Brazil Analysts See Faster Inflation, Deeper Recession in 2016

Bloomberg-16 hours ago
Brazil analysts forecast faster inflation and a deeper contraction next year, putting them at odds with the country's top economic officials. Brazil's inflation will ...

Dimmer outlook for economy, wages and hiring, survey shows

SFGate-4 hours ago
WASHINGTON — For much of the economy's fitful and sluggish six-year recovery from the Great Recession, analysts have foreseen a sunnier future: Growth ...

China stock market panic shows what happens when stimulants ...

The Guardian-8 hours ago
Recovery from the last recession has been patchy and weak by historical standards, but that has not prevented a bull market in equities. The reason for this is ...

Latin American currencies sink to 22-year low as stocks tumble

Chicago Tribune-7 hours ago
... the region's economic contraction will deepen as Chinese growth slows down. ... Colombia's peso retreated 4 percent to a record low of 3,237.38 per dollar.

In Venezuela, fruit and veg prices up 20% per week

FreshPlaza-16 hours ago
As meat, fish, and poultry prices increased, Venezuelan consumers have been choosing to eat more fruits and vegetables. However, this option is becoming ...

Oil Price Plunge Pushes Ruble to Seven-Month Lows

Wall Street Journal-11 hours ago
MOSCOW—A plunge in prices for Russia's main export, crude oil, sent the ruble ... With the weak ruble pushing inflation above 15%, the central bank has little ...

ECB's favourite inflation gauge falls to six-month low

Reuters-20 hours ago
The European Central Bank, which has said the rate is its favoured market measure of inflation expectations, aims to raise consumer price growth back to its ...

ECB's Limits Highlighted by Index Signaling Return to Deflation
Bloomberg-12 hours ago


4 New Truths from the Stock Market Crisis of 2015

TIME-8 hours ago
Smartphones, light fixtures and cheap shoes aren't the only thing made in China. The next global recession might be, too. This week's international market rout, ...

Economic Crisis Empties Moscow Central Streets

The Moscow Times (registration)-12 hours ago
Banks occupy a significant share in the street retail market and so are partly responsible for the dramatic increase in vacancy rates, as the economic crisis has ...

El-Erian: Stocks have a lot lower to go from here

CNBC-16 hours ago
El-Erian told CNBC on Sunday that what markets needed to stabilize was positive economic news or announcements of further stimulus—not from the Federal ...

German Stocks Enter Bear Market as Panic Selling Trickles In

Bloomberg-12 hours ago
The German stock market has given up all its gains for the year and entered a bear market. Seven straight days of plunges sent the DAX Index down 22 percent ...

Malaysia's stock index heads for bear market amid ringgit slump

The Straits Times-3 hours ago
KUALA LUMPUR (BLOOMBERG) - Malaysia's stocks fell on Tuesday (Aug 25), with the benchmark index poised to enter a bear market, as a global rout ...

Bear Grip Tightens on Emerging Stocks as Half of 30 Markets Wilt

Bloomberg-5 hours ago
Fifteen of the 30 largest equity markets among emerging economies have extended losses from their peaks to 20 percent or more, fulfilling traders' definition of a ...

Trading in Stocks, ETFs Was Halted More Than 1200 Times Early ...

Wall Street Journal-11 hours ago
Trading of U.S. stocks and exchange-traded funds was paused more than 1,200 times in early trading on Monday as the market experienced heightened volume ...


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