Daily Digest

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Daily Digest 9/1 - The Escalating Migrant Crisis, A Eulogy For The American Lawn

Tuesday, September 1, 2015, 8:30 AM


An Escalating Migrant Crisis and an Intensifying Search for Solutions (jdargis)

Many migrants are crossing from Turkey to Greece, Macedonia and Serbia before entering Hungary and then moving on to wealthier countries in northern Europe. (There is an important legal distinction between a migrant who has fled his or her country and a refugee seeking asylum.) The conditions in which they would wait out approval of their applications in Germany and Sweden are better than in places such as Hungary or Greece.

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

The latest graphs for Australian iron ore exports that I could find was from May. And they supported Glenn's statement that iron ore tonnage are up and income was down. Are the miners still making a profit? I don't know, but I am willing to hazard a guess that if oil goes back up we might discover the downside to being a one trick pony. Which makes me wonder about the wisdom of Globalism as a religion.

Are There Investing Opportunities For The Remainder Of 2015? (Taki T.)

The seriousness of last week’s shocking action in the market is shown by the volatility index, which posted its second highest reading since its inception in 1990. This is comparable to the great crash of 2008/9.

Outrage builds over mentally ill man shot by off-duty cop at hospital (jdargis)

A joint statement about the case from doctors and medical students has amassed over 1,700 signatures. “As doctors and medical students, as nurses and care partners, we are trained in how to safely restrain and tranquilize patients, no matter how aggressive, or irritable, or anxious, or threatening they may be,” it reads. “Never, never, never is it appropriate for a patient seeking care, to have their life threatened in our arms.”

Blood Plasma, Sweat, and Tears (jdargis)

Today, a striking number of Americans live on extremely small incomes. As of early 2011, 1.5 million households (with roughly 3 million children) were surviving on cash incomes of no more than $2 per person, per day, during any given month. What’s different these days—and what affects the $2-a-day poor so profoundly—is that welfare can no longer be counted on to provide a floor of cash that families can depend on.

Let Coal Die A Natural Death (jdargis)

The declining profitability of coal is an opportunity to save consumers money and reduce reliance on a dirty power source. Coal-fired power plants spew more than atmosphere-warming carbon dioxide. They also pollute the air with mercury and other toxins, as well as fine particles that contribute to bronchitis, asthma and heart disease, killing some 7,500 Americans a year.

U.S. Oil Production Nears Previous Peak (Tom K.)

Something I never noticed before, consumption started to drop in January 2008, seven months before the price, along with world production, started to drop in August 2008. This had to be a price driven decline. Could the current June and July increase in consumption be price driven also?

The American Lawn: A Eulogy (jdargis)

That idea remains, and it means that, even today, the failure to maintain a “smiling lawn” can have decidedly unhappy consequences. Section 119-3 of the county code of Fairfax County, Virginia—a section representative of similar ones on the books in jurisdictions across the country—stipulates that “it is unlawful for any owner of any occupied residential lot or parcel which is less than one-half acre (21,780 square feet) to permit the growth of any grass or lawn area to reach more than twelve (12) inches in height/length.” And while Fairfax County sensibly advises that matters of grass length are best adjudicated among neighbors, it adds, rather sternly, that if the property in question “is vacant or the resident doesn’t seem to care, you can report the property to the county.”

Gold & Silver

Click to read the PM Daily Market Commentary: 8/31/15

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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Asean Top 100 Tempt Fate With Sixfold Debt Jump Since '98 Crisis


Asean Top 100 Tempt Fate With Sixfold Debt Jump Since '98 Crisis

Bloomberg - ‎10 hours ago‎
Total obligations at Wilmar, which grows oil palms, doubled to $22.4 billion since 2010, while net debt rose 20 percent. The jump was partly due to its expansion into the sugar industry, the company said by e-mail on Aug. 28, adding that revenue rose ...

Asean's biggest companies tempt fate with sixfold debt jump since '98 crisis

The Straits Times - ‎10 hours ago‎
Total obligations at Wilmar, which grows oil palms, doubled to US$22.4 billion since 2010, while net debt rose 20 per cent. The jump was partly due to its expansion into the sugar industry, the company said by e-mail on Aug 28, adding that revenue rose ...


China's Bond-Rating Firms Dole Out Downgrades

Wall Street Journal-8 hours ago
“Many corporates' profitability and debt payment ability are definitely hurt,” he ... Still, Sinosteel's two billion yuan ($313 million) domestic bond has held up well.

NPC adopts new measures as local debt problem looms large

WantChinaTimes-9 hours ago
29 the State Council's proposal to cap outstanding local debt at 16 trillion (US$2.5 trillion) in 2015, leaving 1 trillion yuan (US$157 billion) for new debt to be ...

Brazilian Real Falls to 12-Year Low as Deficit Projected in 2016

Bloomberg-2 hours ago
... have lower immediate social costs but could lead to another credit downgrade. ... response to questions from Bloomberg that growth, fiscal and debt dynamics ...

REFILE-Fitch warns of downgrade risk in Malaysia's rating outlook

Reuters-7 hours ago
The current account surplus has shrunk from a peak in 2008 to 7.6 billion ringgit in the second quarter this year, down from 10 billion in the previous quarter.
Freeport Looks Like Junk as $46 Billion of Miner Bonds Plummet
Bloomberg-2 hours ago
Case in point: Freeport-McMoran Inc. Yields on the $14.7 billion of bonds issued by ... This has taken a toll on Freeport's bonds and also the debt issued by other ...

Portugal Struggles to Sell Rescued Bank

New York Times-2 hours ago
Novo Banco received 4.9 billion euros ($5.5 billion) from a so-called bank resolution fund, a mechanism adopted during the eurozone debt crisis to support the ...

Thailand approves stimulus measures to help stumbling economy

The Straits Times-9 hours ago
The measures include soft loans via village funds worth 60 billion baht and a budget of ... earnings while record-high household debt has curbed consumption.

Alberta deficit forecast at $5.9B as province feels impact of low oil prices

CBC.ca - ‎5 hours ago‎
Rachel Notley's NDP government is forecasting to end the year with a $5.9-billion deficit, $814 million more than forecast in the March 2015 budget, which was introduced but never passed by the previous Progressive Conservative government. However ...

$5.9B provincial deficit prediction worries Calgary city councillor

CBC.ca-2 hours ago

A city councillor is wondering what the provincial deficit could mean for ... That forecast is $814 million more than the tally in the March 2015 budget, which was

Emanuel meets with Dyett hunger strikers after town hall budget session

Chicago Sun-Times - ‎12 hours ago‎
Mayor Rahm Emanuel speaks Monday night at the first of three town hall meetings on the city's budget at Malcolm X College in Chicago. After that session, he met privately with Dyett school protesters and hunger strikers. | Kevin Tanaka/For the Sun-Times.

Chicago mayor tries to build support for harsh cuts at budget forums

Reuters-21 hours ago
Moody's Investors Service in May dropped Chicago into junk-bond category, meaning the city has to offer high interest rates to sell its debt in the municipal bond ...

Moody's to Illinois: Remember the Illinois pension crisis? It's still a crisis

Reboot Illinois - ‎16 hours ago‎
“Illinois projects its income and other taxes to generate $32 billion this fiscal year, or $5.4 billion less than expenditures without cuts,” Hampton said. “While the state still has options to address its current-year deficit, continued political ...

Dozens of Venezuelans shot by police amid crime crackdown

Lexington Herald Leader-18 hours ago
FILE - In this Monday, July 6, 2015, file photo, Venezuela's President Nicolas Maduro, left, and National Assembly President Diosdado Cabello gesture with their ...

Investors Lose on EU Power Bonds for First Time Since 2006

Bloomberg-9 hours ago
The cost of insuring utilities' debt against default soared just as power prices in ... Credit-default swaps on EON reached an 18-month peak of 80 basis points last ...

Markets' wild moves might make US public pension funds vulnerable

The Fiscal Times - ‎1 hour ago‎
NEW YORK (Reuters) - Last week's wild gyrations in global financial markets almost certainly exposed the vulnerability of U.S. state and local authority public pension funds which have piled into riskier assets in recent years, according to actuaries ...

State pension age to 'hit 70 by 2050'

Telegraph.co.uk-3 hours ago
A rise in the state pension age to 70 by 2050 is now "inevitable", a leading pension expert warned today after official data showed another sharp rise in life ...

CalPERS Considers Plan To Cut Financial Risks Amid Cash Shortfalls

California Healthline-20 hours ago
CalPERS has been developing a plan to help mitigate financial risk amid cash shortfalls, the Los Angeles Times reports.

Hillview's bankruptcy negative for small town government -Moody's

Reuters-17 hours ago
"Generally, a municipality must prove that it is not paying its debts on time or is unable to pay the obligations as they become due," Moody's said. The city of ...

Lagarde Says Volatility Puts Asia's Growth at Risk

Wall Street Journal-7 hours ago
For many Indonesians, Ms. Lagarde's arrival brings memories of 1998, when the IMF signed terms for a bailout during the Asian financial crisis that led to the ...

France 'stuck in the doldrums' with second worst factory sector in the ...

Telegraph.co.uk-6 hours ago
The rate of contraction was only topped by crisis-hit Greece, where factories saw ... far below the single currency's average rate, which fell to 10.9pc last month.


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‘Death cross’ patterns spread to all corners of the stock market

‘Death cross’ patterns spread to all corners of the stock market


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Brazil bonds and currency hit hard again (new records)

Brazil 10 Year Government Bond (Now to 14.19%)

Brazilian Real (Now at 3.684)


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Hungary Stops Trains to Halt Migrant Floods

In an unprecedented move to stem the tsunami of migrants entering Europe, Hungary has decided to stop all trains at Budapest main train station to stop refugees - most of them from conflict areas such as Syria - from entering the EU onwards to Austria and Germany. For now, there are 1000s of refugees waiting at the station, with entrances blocked by police.

A one minute video of crowds of angry people and police


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The CalPERS implosion will be

The CalPERS implosion will be epic. It will be interesting to watch the governmental gymnastics trying to keep that thing afloat.

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Whoa, oil today
Index Units Price Change %Change Contract Time ET 2 Day
USD/bbl. 45.36 -3.84 -7.80% OCT 15 15:07:53  
USD/bbl. 49.52 -4.63 -8.55% OCT 15 15:08:04  
JPY/kl 38,060.00 -2,600.00 -6.39% FEB 16 14:54:20  

As of 3:40 PM Eastern

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Moody's Joins Fitch Saying Brazil Budget Shift Shows Challenges

Moody's Joins Fitch Saying Brazil Budget Shift Shows Challenges

Bloomberg-19 minutes ago
Brazil's projected budget deficit in 2016 reflects the challenge the nation faces in shoring up fiscal accounts, according to Moody's Investors Service and Fitch ...

Brazil''s Central-Bank President Could Lose Cabinet Post in ...

Nasdaq-1 hour ago
BRASÍLIA--Brazil's central bank is grappling with high inflation, a painful economic downturn and a tumbling currency. Now, its leader is facing the prospect of ...

Ruble Weakens as Morgan Stanley Forecasts Recession Through ...

Bloomberg-8 hours ago
Russia's currency weakened 1.5 percent to 65.1950 against the dollar by ... "Renewed ruble weakness fuels inflation and narrows room for central bank easing.
We're not sure what it is, but something seems to be closing in on Brazil's economy:


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Tracking the propaganda...

I just checked and, wouldn't you know it, something is missing from the front page of the WSJ:

Sharp eyes will note that gold is missing from the headline assortment.  Every single time gold falls it's in there, as that's somehow considered newsworthy.

Every time it goes up, like today, it's missing.

I'll keep tracking it but for now I feel like the WSJ is a cheap magician, working to keep our eyes away from the real action...


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I agree...and this is getting ugly...
MarkM wrote:

The CalPERS implosion will be epic. It will be interesting to watch the governmental gymnastics trying to keep that thing afloat.

The pension disaster is going to be epic.  Pain for everyone.

Today we saw a few sectors get hit harder than the average index losses, oil and oil services of course, but also the sector that tells me when real trouble is coming.

Financials and especially money center banks are starting to look very bad here...time to get our 2008 walking shoes back on?

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Arthur Robey
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I wondered over to the

I wondered over to the automatic earth website and half watched a Web based gathering in which Nicolle was describing the incompatibility of the power distribution system to distributed renewables.

My trade and training says she is right.  The electrical grid does need large generators to "anchor" it or it gets the wobbles. 

It became uncomfortable to watch because she didn't mention Rossi.  Not even once. And so I stopped. 

There are non so blind. Oh well! I eagerly await the next version  of H. Sap. This one had got software bugs.

The line up of speakers was impressive so I shall girt my loins and have another go.

But first breakfast.  And what a fast it had been.  6 days sans food. Heart complains if I try to do anything strenuous,  but I am feeling comfortable, if somewhat food obsessed. 

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Interesting video, Arthur

Thanks for posting!

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