Daily Digest

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Daily Digest 9/5 - Sharp Carbon Cuts In CA, How To Protect Your Wealth

Saturday, September 5, 2015, 10:07 AM

Economy

Bankers who lose their jobs in 2015 are worried they'll never get rehired (Adam)

That’s not to say it’s impossible to find a new job. Daiwa seems to be building its credit presence and just hired Gary Hibbard as an executive director in fixed income trading. Hibbard has over 20 years of finance experience and last worked in the City in April 2014 according to the FCA Register, when he was head of sterling credit trading at Lloyds Bank. However, Hibbard ins’t representative of a trend and Daiwa isn’t known for its generosity in terms of pay.

Michael Hudson: Wall Street Parasites Have Devoured Your Retirement Plan and the U.S. Economy (Don R.)

How else to explain, other than kleptocracy, the fact that Wall Street’s richest mega banks collect the life insurance proceeds and tax benefits on the untimely deaths of their workers – all codified into law by the U.S. Congress – making death a profit center on Wall Street. Or, as Frontline revealed, that two-thirds of your 401(k) plan over a working lifetime is likely to be lost to financial fees.

QE Will Come Back with Negative Interest Rates: John Rubino (Herman J.)

People don’t know whether we have a buying panic coming or a selling panic – and we really could have either one, because they markets are volatile. That’s the main thing that’s happening: Volatility is spiking.

Exorbitant privilege: “The dollar is our currency but your problem” (Jonathan D.)

The international monetary system is in crisis and ready to collapse. It has been since at least 1971 but it seems we are very close to the end (within five years). The International Monetary Fund (IMF) is working discreetly to have the Special Drawing Rights (SDR) replace the US dollar as the international standard. Since the delinking of the dollar from gold in 1971, the US dollar has been the de facto international standard. The IMF itself makes no bones about its ambition to establish the SDR as the global reserve currency.

How to Protect Your Wealth (Tiffany B.)

Well, before you can confiscate someone’s wealth, what’s the first step? You have to know what kind of wealth that person has first. Banning cash makes that job a lot easier. Only a few years ago, such a call would have been ludicrous. Not now. And the FT’s editorial puts a mainstream Establishment stamp on the whole matter.

The Euro and Why the Dollar Will Not Be Dethroned (Aaron M.)

Then there are the crazies who cannot see the forest for the trees; they send in e-mails that say I am wrong and the dollar will collapse because Russia is abandoning the dollar. They are so lost in thinking that Russia is somehow a major holder of dollars. What is the alternative? There is nothing. A rise in the dollar will inflict the greatest losses worldwide and then the cry for an independent reserve currency will emerge. A declining dollar will NOT dethrone it.

These Popular Fruit and Veggie Brands May be Grown With Oil Wastewater (eric s.)

Until recently, the Water Board only required oilfield water to be tested for naturally occurring toxins such as salts and arsenic; in April it expanded the tests to include a broader range of compounds used in oil extraction, including fracking. The Board has appointed a committee to determine if the chemicals in oilfield water "pose a threat to public health at the concentrations detected," says spokeswoman Miryam Barajas, but in the meantime has no plans to rein in the practice.

Carbon Cuts So Sharp Even California Democrats Are Divided (jdargis)

A defeat would be a setback for Mr. Brown, who has made a battle against global warming a centerpiece of his final years in public life, and for environmentalists who have looked to California to lead the emissions fight at a time of strong skepticism about global warming in Washington. Mr. Obama urged California lawmakers to enact the bill in a recent speech in Las Vegas, signaling the importance he is attaching to the issue in his final years in office.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/4/15

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4237
Currency Depreciation is bad and it's very good

G-20 Countries Vow to Refrain From Currency Depreciation

Krugman: "Second, we learn that what right-wingers call currency "debasement" - a decline in a currency's value in terms of other currencies - can be a very good thing. "

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ECB Ready to Expand Stimulus Programs

Wall Street Journal-Sep 3, 2015
FRANKFURT—European Central Bank President Mario Draghi sent a strong ... Central bank stimulus typically weakens a currency, particularly if other key ...

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
The European situation.

Italy is no Greece says Australian academic. They won't be able to do to Italy what they did to Greece. It's too big.

Here we have an academic who is so dominated by his left brain's chatter that he is barely aware he has an interviewer in front of him and only one or two words are enough set off an internal dialogue. It comes across as an inability to share a conversation. I am sure his wife adores him. 

http://fromalpha2omega.podomatic.com/entry/2015-08-29T04_35_55-07_00

You can get past programs here.

http://fromalpha2omega.podomatic.com/entry/2015-08-29T04_35_55-07_00

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1712
Cashless society making progress on the drawing boards

https://www.linkedin.com/pulse/cash-policy-tool-interview-hon-dr-harald-malmgren-tavares

The move to banning cash and forcing everyone to use only government- and bank-controlled electronic money is not just a pipe dream.  Serious steps are being taken, some led by Blythe Masters.

This is not a dreamy idea. Blythe Masters, the JP Morgan architect of organized market trading of modern asset backed securities like mortgage backed securities and collateralized debt obligations, became known as one of the great financial engineers in recent decades. Widespread adoption of the trading techniques she devised led to an historic expansion of credit to households and great corporations alike. Subsequently she led innovations in trading of both commodities securities and physical commodities. In 2015 she is leading a new business effort to develop a universal cashless system. Not only is she gathering significant investor interest, but the Federal Reserve and various US Government agencies have become keenly interested in the potential usefulness and efficiencies of a universal cashless system. Needless to say, agencies concerned with illicit uses of cash or cash enabled means of tax evasion are enthusiastic.

Estonia, a small country next to Russia with which I am personally familiar, essentially has a cashless economy. They use mobile phones to pay for almost all daily living requirements, including car parking, public transport, fuel, and in fact most of their daily purchases. This system does not yet include records of all personal assets, and especially personal gambling and other private activities. This hasn’t been developed here in the US yet, but one can envisage our government liking the idea...

The people now intensively working on a mechanism for a cashless society are building it around the concept of blockchain technology. In essence, there would be a single ledger that records each expenditure or revenue event (the block), linking them chronologically with every other subsequent purchase, sale, or revenue event in a recorded chain. It could initially begin with a complete ledger of individuals or distinct businesses which could then be connected with another to a bigger ledger that a bank or other large financial institution might maintain for all of its clients. Banks or other designated financial institutions could then link their own comprehensive ledgers with those of the others.

If you think about this for a moment, it is evident that the ledger for a big bank like JP Morgan would inevitably include activities throughout the world without respect for borders. Central banks and governments would inevitably encourage even further consolidation so that all significant financial flows and all debts and assets could be monitored in real time, enabling policies and regulations to be adapted to the realities of daily life.

The objective of the blockchain that Blythe Masters is pursuing is ultimately to put together a global blockchain, which is consolidated at any moment in time. Everything you have and everything you owe are visible...

We might also consider that if governments could see everything then various regulators would be enabled to issue guidance on what’s normal or appropriate personal and business behavior. If your funds are being used in a statistically abnormal manner then they can start routinely asking you for an explanation, if it was drug money or money laundering or purchases of regulated products like alcoholic beverages or firearms. If you were suspended for drunken driving authorities might like to add to the penalties the prohibition of purchasing or being in possession of an alcoholic beverage at any time during a probationary period. Bad dietary habits could also come under public scrutiny. Regulators motivated by moral self-justification can have boundless imagination in ways to compel proper behavior in society.

So cashless, single ledger systems would raise everyone’s concerns about privacy and surveillance. Basically the government would be able to start questioning anyone vigorously about virtually every aspect of daily living. I can understand why they would want this, but it would be appalling for the rights of individuals.

"Welcome to the Hunger Games.  And may the odds be ever in your favor."

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4237
Central banks can do nothing more to insulate us from an Asian w

Central banks can do nothing more to insulate us from an Asian winter

The Guardian-7 hours ago
... recovery – the debt overhang from the boom years, chronic underinvestment, ... He insisted: “Developments in China are unlikely to change the process of rate ...

G20 fin leaders: cheap central bank cash alone not enough for ...

Reuters-Sep 5, 2015
The formulation of the final communique of finance ministers and central ... with central banks' mandates, but monetary policy alone cannot lead to balanced ...

G20 tries to dispel China fears with sunny economic outlook
In-Depth-Financial Times-21 minutes ago

 

China FX reserves seen shrinking $71bn in Aug

Gulf Times - ‎6 hours ago‎
The latest figures will give investors a rough gauge of how much US government debt the Chinese central bank may have liquidated as part of supporting its currency last month and staunching capital outflows following its shock devaluation of the yuan ...
 

China gives up the ghost of its debt-fuelled boom

Financial Times-10 hours ago
One of the factors behind today's exceptionally low global interest rates has been the return of excess savings in Asia since the turn of the decade. Much of this ...

 

Capital flight now the big concern for slowing China

Financial Times-3 hours ago
But for those who track capital outflows from China, the distinction does not ... a percentage of debt, portfolio flows, exports and money supply) China needs at ...

PBOC governor admits China bubble 'burst' at G20 meeting
WantChinaTimes-5 hours ago

 

Sacramento County bond debt highest in state

Sacramento Bee-13 hours ago
Yet the debt for the new terminal is not Sacramento County's biggest. The county has assumed an estimated $2 billion in debt to try to shore up its underfunded ...
 

Brazil needs temporary tax hike, Rousseff's chief of staff says

Channel News Asia-4 minutes ago
Brazil needs a temporary tax increase to reduce a budget deficit that threatens the country's debt rating, the presidential chief of staff said in an interview ...

Low oil price forces Saudi Arabia to cut spending amid record budget shortfalls

Telegraph.co.uk - ‎4 hours ago‎
He said the government would issue more conventional treasury bonds and Islamic sukuk bonds to "finance the budget deficit" - which is projected by the International Monetary Fund at a record $130bn (£86bn) for this year. The kingdom has so far issued ...
 

Saudi to cut spending, issue more bonds to shore up budget

Yahoo News UK - ‎2 hours ago‎
Saudi Arabia will cut spending and issue more bonds as it faces a record budget shortfall due to falling oil prices, the finance minister said on Sunday. The kingdom -- the biggest Arab economy and the world's largest oil exporter -- is facing an ...

Korean economy forecast to face 1%-level growth

Korea Times-7 hours ago
The economy is in danger of expanding by less than 2 percent in the third ... in the global economy, including China, and slowing expansion in global trade," ...

Bloomberg Op-ed: Let's call a cease-fire in the war on hard cash

Salt Lake Tribune-20 hours ago
Last year, non-cash payments in Britain economy overtook cash for the first time. And the trend shows little sign of slowing. Figures this week from credit-card ...
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My description of the current world economy:

 

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