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Daily Digest 9/6 - Refugee Crisis Intensifies, Living On $2 A Day

Sunday, September 6, 2015, 11:39 AM


China's Stock-Market Rout Is Almost Over, Says PBOC Governor (jdargis)

The leverage ratio has clearly dropped and the impact on the real economy is limited, Zhou said. He said there is no basis for long-term yuan depreciation and the government’s determination to deepen market reforms hasn’t changed, while economic fundamentals are substantially unchanged.

Europe's Deadly Denial (jdargis)

It gets worse: The law says refugees should “declare themselves in the first European Union country they enter” and then apply for asylum according to EU law. That’s all very well for, say, Ireland. But what happens when tens of thousands of people board boats in Tripoli, Libya, and start heading for Italy or Greece? Now we know: Those two countries have been pleading for assistance from their neighbors for many months, to no avail. And when Hungary can’t cope with the numbers? We’ve just learned: The refugees become a prop for Viktor Orbán, the Hungarian prime minister, who has a fondness for dramatic scenes.

Wealthy Gulf Nations Are Criticized for Tepid Response to Syrian Refugee Crisis (jdargis)

Accenting that criticism are the deep but shadowy roles countries like Qatar and Saudi Arabia have played in Syria by bankrolling rebels fighting President Bashar al-Assad.

Migrants aren’t widgets (jdargis)

Greece and Italy have weak economies and weaker asylum systems. So refugees continue to risk their lives and conceal their identities until arriving at a chosen destination, which means some European countries are getting far more refugee arrivals than others. In July, the Luxembourg presidency of the EU tried to get member states to pledge to relocate 40,000 refugees throughout Europe. While that would be a small fraction of asylum seekers, governments agreed to take in only 32,256 “redistributed” refugees.

America's Poorest Are Getting Virtually No Assistance (jdargis)

It is important to recognize that what Edin and Shaefer call $2-a-day poverty doesn’t mean that their subjects really survive for long periods on nothing but $2 a day, and I fear that too many readers will be thrown off by this distinction. Do not go there, as it’s an unnecessary distraction. The authors explicitly acknowledge that no one could survive in this country if that was all they had to live on over an extended period. What they call “$2-a-day poverty” means spells of scraping by on almost no regular, reliable income, though many may be able to access the dicey income sources just noted above.

‘$2.00 a Day,’ by Kathryn J. Edin and H. Luke Shaefer (jdargis)

In the summer of 2012, the authors also began ethnographic studies in sites across the country: Chicago, Cleveland, a midsize city in the Appalachian region and small rural villages in the ­Mississippi ­Delta. In each of these areas it did not prove difficult to find families surviving on cash incomes of no more than $2 per person, per day during certain periods of the year.

Self-Healing Plastic (jdargis)

This self-healing “skin,” funded partly by NASA and developed at the University of Michigan, is composed of two polymer sheets with a reactive liquid between them. When the sheets are punctured by a high-velocity projectile, a chemical within the liquid reacts with oxygen to seal the hole in a matter of seconds.

The Economies Getting Hit by Low Oil Prices (jdargis)

Major oil-producing countries—that list includes Venezuela, Libya, Russia, Qatar, and Iraq—are all taking a hit. Each of these countries have a different threshold for how low prices can go before their budget goes into deficit territory, but according to calculations by the Wall Street Journal and the IMF—only Kuwait can break even at the current prices. (In Deutsche Bank’s estimates, no one survives.)

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."


Arthur Robey's picture
Arthur Robey
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The latest from the Ukraine.

They claim a COP of 200%.

My understanding is that the energy output can be varied by varying the hydrogen pressure that the nickel is subject to. 

My comment is that I wouldn't be at all surprised if there is a flurry of experiment and replication happening behind closed doors by the military. This has huge geopolitical consequences. Too late knuckleheads. You should have been paying attention to your own SPARWAR program. Now everybody has it.

That was inaccurate and unkind. I can do better. I believe that the research establishment has played the military like a fiddle to achieve this exact result.  Their denial (of the cold fusion effect)has given them plausible deniability. They have earned their reputations as professors.  Well played all.



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IMF's Lagarde calls for urgent economic overhauls

"The head of the International Monetary Fund on Saturday called for the world's largest economies to urgently move ahead with economic overhauls as the global growth outlook sours and market turmoil rocks emerging markets.

"Downside risks to the outlook have increased, particularly for emerging market economies. Against this backdrop, policy priorities have taken on even more urgency since we last met in April," IMF Managing Director Christine Lagarde said after a meeting of top finance officials from the Group of 20 largest economies."

Sovereign borrowers fall behind on record sums of debt
Financial Times-22 hours ago
For the first time, economists at the Bank of Canada have compiled a comprehensive database of missed government debt payments that include sovereign ...

China FX reserves fall record $93.9 bln in Aug as central bank supports yuan

Reuters - ‎4 hours ago‎
BEIJING China's foreign exchange reserves, the world's largest, shrank by $93.9 billion in August, the biggest monthly fall on record, reflecting the scale of intervention by the central bank to support the yuan after a surprise devaluation last month.

Moody's: Chinese banks will face rising operating pressure over the ...

Moodys.com (press release) (subscription)-10 hours ago
Moody's conclusion was based on the banks' results for the half-year ended 30 ... is the banks' narrowing net interest margins (NIMs), due to the central bank's ...

China's Banks Getting Less Strict on Bad Loans, Moody's Says

Bloomberg-11 hours ago
China's banks are getting less strict in recognizing bad loans, failing to include some debts that have been overdue for at least 90 days, according to Moody's ...

Chinese Stocks Tumble 2.5% After Four-Day Holiday

TheStreet.com-1 hour ago
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks ... Investors returning to China's markets Monday after a four-day holiday break ...
China Cuts 2014 Economic Growth Estimate to 7.3% From 7.4%
In-Depth-Wall Street Journal-6 hours ago

Rouble decline stokes fears of Russian credit crunch

Financial Times-8 hours ago
Those concerns receded after the rouble strengthened back to 49 to the dollar this May and the central bank stepped in to offer foreign currency loans. But since ...

BOJ Officials Said to Waver on Confidence in Underlying Growth

Bloomberg - ‎6 hours ago‎
26 in New York that recent weakness in production and exports would pass and that, while the central bank was ready to adjust monetary policy if necessary, the current level of stimulus was enough to spur consumer price gains to its 2 percent target.

Analysts trim Japan GDP forecasts, see feeble third-quarter rebound

Reuters UK-7 hours ago
... July-September economic growth will be modest, keeping the Bank of Japan under ... Summer bonuses rose only slightly, disappointing central bankers who ...

Ringgit Falls to New 1998 Low as Asia Selloff Sends KLCI Lower

Bloomberg-11 hours ago
The holdings were at $94.5 billion in the previous two weeks, the lowest level since 2009, and a signal the central bank may have been intervening to stem a ...

Ringgit hits lowest level against US dollar since 1998 as oil prices ...
The Straits Times-12 hours ago


Australian Dollar Hits Fresh 6-Year Low

Wall Street Journal-7 hours ago
The week ahead will bring tests for the Aussie dollar with three senior central bank figures scheduled to speak, including Deputy Governor of the Reserve Bank ...

Lira Weakens to Record as Stocks Retreat After Deadly Attack

Bloomberg-7 hours ago
... led by Akbank TAS, the country's second-largest bank by market capitalization. ... of Turkish stocks and government bonds this year, according to central bank ...

Taiwan Growth forecast lowered further one rate cut becomes likely

EconoTimes-12 hours ago
As such, the central bank may have to shoulder the burden of supporting the economy. Over the past one month, the central bank has already guided down the ...

Taiwan exports fall a steeper-than-expected 14.8%

Catalan Pro-Secession Candidates Could Win Majority, Poll Shows

Bloomberg-3 hours ago
“Catalonia could be left out of the euro and would have serious problems in getting financing as it wouldn't be able to go to the European Central Bank.” Bonet ...

UK manufacturers halve 2015 growth forecast as export orders slump

Reuters UK-15 hours ago
But for central bank policymakers in Britain and the United States, who are considering when to start to raise interest rates, the broader picture is mixed.

U.K. Government Bonds to Receive Boost as BOE Reinvests QE Cash

Bloomberg-3 hours ago
U.K. government bonds' top performance among Group-of-Seven peers this month may continue as the Bank of England reinvests maturing sovereign debt ...

United States Government Debt to GDP Ratio is 312% and Climbing

Pravda-5 hours ago
The government in the USA owes $13.2 trillion in US Treasury Bonds, $5 trillion in money .... Then Brazil's economy collapsed and their government fell.

US shale oil industry hit by $30bn outflows

Financial Times-21 hours ago
The aggregate net debt of US oil and gas production companies more than doubled from $81bn at the end of 2010 to $169bn by this June, according to Factset.

US shale oil industry hit by $30b losses
gulfnews.com-5 hours ago


The third deficit in Illinois: Public Infrastructure

WGN Radio-16 hours ago
... Public Affairs at the University of Illinois, tells us that all bad things come in threes: the state budget, the state debt–and now the state's public infrastructure.


thc0655's picture
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Kuntsler on refugee crises


He says it's going to get much worse.

The desperate wish in what is loosely called the West to at least appear morally correct is unfortunately over-matched by the desperation of people fleeing unstable, overpopulated places outside the West, and it is a fiasco beyond even the events of the moment.

The refugee / immigrant crisis around the Mediterranean is a preview of a horror show to which there is no end in sight, and is certain to escalate. So anyone who indulges in fantasies about organizing an orderly, rational distribution of displaced persons for the current wave, is badly missing the point. Wave beyond wave awaits after the this one. And then what will the well-intentioned sentimentalists say? We wanted to do the right thing… we meant well… we cried when we saw the little boy dead on the beach….

Yes, the tragic intrusions of the US military in Iraq, Libya, Somalia, Syria, and elsewhere have been reckless and stupid. But that is not the whole story. The desert nations of the Middle East and North Africa (MENA) have populations abnormally swollen by a century of oil-and-gas-based agriculture, really by the benefits of Modernity in general. Now that the oil age is chugging to an unruly crack-up, and Modernity with it, and the earth’s climate is doing wonky things, and the rich nations to the north have faked their finances to the point of bankruptcy, well, circumstances have changed.

In the years ahead, populations will be fleeing and shifting from many more unfavorable corners of the world. The pressures are mounting all over. Alas, the richer nations in which the fleeing poor aspire to gain a foothold, will also be contending with the disabling effects of a universal economic contraction — the winding down of the techno-industrial system and the global economy with it. That process has the potential to shatter political unions, overthrow established social orders, and provoke wars between the demoralized countries who still possess dangerous military hardware. At the least, it will produce economic conditions in Europe and North America probably worse than the Great Depression of the 1930s.

So, the idea that the nations currently bethinking themselves “rich” can take in, shelter, and employ the masses fleeing MENA (and elsewhere) is absurd. Somehow the people in charge, plus the intellectual classes who shape opinion and consensus, are going to have to arrive at some clear notion of limits and boundaries. It is actually happening in parts of Europe right now, extempore, where the immediate crisis is worst, for the moment in Italy, Greece, and Hungary — which first interned the refugees and then let them loose on the road to Vienna, probably only a way-station to Germany. Soon all nations across Europe will be agonizing, shucking, jiving, or improvising some sort of desperate response.

Among other confusions of policy and intention, the public “debate” so far does not make any distinction between true political refugees fleeing for their lives or economic migrants seeking to improve their prospects elsewhere. It is surely easy to empathize with both categories of persons, but that doesn’t mean you give up the control of your borders just to make yourself feel better. That is pretty much what has happened in the USA, where the Left, for political expediency, has deemed it indecent to call “illegal” immigrants what they are, and the Right has just been pusillanimous and hypocritical about it. Hence the unfiltered persona of Trump who, for all his titanic shortcomings, has at least managed to make his rivals look like the craven midgets they are.

Likewise, the rise of Marine LePen in France, Geert Wilders in Holland, and other parties seeking limits to immigration, perhaps even deportations. Personally, I reject the idea that it’s “racist” to want to preserve one’s national culture and character (especially in language), or to favor bona fide citizens for gainful employment. Europe has the additional obvious problem of an immigrant Islamic population overtly hostile to European culture and tradition. Why is it morally imperative for Europeans to countenance what amounts to low-grade warfare?

The situation that smoldered for decades is now exploding. Don’t expect to see any end to desperation and instability in MENA, but do expect new demographic crises out of other regions: Indonesia, Ukraine, Pakistan, West Africa, and Brazil, with its cratering economy. It’s not inconceivable that China might bust apart politically, with centrifugal consequences. The global economy is contracting. We have indeed attained the limits to growth. Cheap oil is bygone and the capital infrastructure we have won’t run on expensive oil — including the oil industry itself. New technology or further central bank legerdemain is not going to fix that. We’re in population overshoot and a scramble is underway to bail on the places that just can’t support the people who live there. National boundaries will be defended. Sentimentalists will have to step aside. History is not a bedtime story about bunnies and kittens.

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

robie robinson's picture
robie robinson
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the rest of the "settled mare" story

pinecarr's picture
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What a treat, Robie!

It's a beautiful thing you and your family and friends and horses are doing on your farm.  Thanks for being willing to share your short video with the rest of us!  -Really well done, by the way.  Do you have any plans to release it or post it somewhere besides here? 

PS Also loved the positive (and correct) spin on why you are ok with a worm in your broccoli!

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From One Farmer to Another


Thanks for sharing your new-found farming wisdom.  It reminds me of my Uncle Dave who farmed with Belgians all his life and said a good teamster could communicate with his team without talking.

In regard to farming economics, two things come to mind: First, rural America has been in a Depression for 60 years, more-or-less, that has been hidden by massive debt taken on by the few remaining so-called farmers.  All you need to do is drive through any small farming town and witness all the empty storefronts and crumbling infrastructure with your own eyes.   Second, all those inputs you refer to are the reason for crop insurance.  The input suppliers and bankers will get paid.  If there is anything left over for the operator fine, if not, too bad.

Rural writer Gene Logsdon recently penned an article that stated an Amish farmer who grossed $50,000 could have more discretionary income than an average conventional farmer with a gross income of $220,000. I wouldn't argue with that conclusion.

The vast majority of farmers have wholeheartedly signed on to the industrialized, highly capital intensive version of agribusiness.  What they fail to realize is that they are a totally expendable input according to the "agribusiness industry"'.  As my now departed neighbor and WWII vet said about the Army, "The higherups couldn't give a plug nickel if you lived or if you died."

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Orwell's take

Thc0655's post of Kuntsler's piece reminded me of an earlier story about the European Union's military plan for dealing with the migrant crisis (link) by destroying the boats before they arrive on Europe's shores (hopefully before the migrants board them). Let's hop that conditions never degrade to this snippet from Orwell's book 1984 that comes to mind when I read this.

April 4th, 1984. Last night to the flicks. All war films. One very good one of a ship full of refugees being bombed somewhere in the Mediterranean. Audience much amused by shots of a great huge fat man trying to swim away with a helicopter after him, first you saw him wallowing along in the water like a porpoise, then you saw him through the helicopters gunsights, then he was full of holes and the sea round him turned pink and he sank as suddenly as though the holes had let in the water, audience shouting with laughter when he sank. then you saw a lifeboat full of children with a helicopter hovering over it. there was a middle-aged woman might have been a jewess sitting up in the bow with a little boy about three years old in her arms. little boy screaming with fright and hiding his head between her breasts as if he was trying to burrow right into her and the woman putting her arms round him and comforting him although she was blue with fright herself, all the time covering him up as much as possible as if she thought her arms could keep the bullets off him. then the helicopter planted a 20 kilo bomb in among them terrific flash and the boat went all to matchwood. then there was a wonderful shot of a child’s arm going up up up right up into the air a helicopter with a camera in its nose must have followed it up and there was a lot of applause from the party seats but a woman down in the prole part of the house suddenly started kicking up a fuss and shouting they didnt oughter of showed it not in front of kids they didnt it aint right not in front of kids it aint until the police turned her turned her out i dont suppose anything happened to her nobody cares what the proles say typical prole reaction they never ——

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Robie, a simple thumbs up didn't seem sufficient to express my appreciation for your video.  

It was absolutely fantastic.  Thank you very much, not just for posting the video but for being part of the leading edge of sustainable, healthy agriculture.



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Beautiful video. It is so nice to see people working with animals that have an obvious connection to the beast and an appreciation for it's contribution. Too many times I see folks working with animals and "forcing" them to do what is wanted, much like man seems to try to force all of nature to bend to his will. A gentle voice and a soft touch are the signs of a true professional. I am jealous (wink) of your life on the farm. I am working toward that end, but mine is 3 hours away and still requires plenty of "town money" at this point. Not to steal your thunder, but if someone can tell me how, I will post a video of our efforts toward a more sustainable agricultural system.

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Arthur Robey
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From my FB Page.(With improved punctuation. )

Kunstler, the Jew, expresses my viewpoint lucidity.

No, it is not racist to want to protect your culture and language. It is your duty.

Although I have to Admit that McKenna makes a fair fist in his argument that culture is not your friend.

The issue before us is whether our culture is worth defending and if not, what will we replace it with?.

A word of warning to those proposing some Utopia. It has been tried before and has always ended with the Kool Aid.

Arthur Robey's picture
Arthur Robey
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A Cultural Revival

Perhaps our cultures Can be stored by our Robots to be revived as needed. So the issue of cultural survival becomes mute.

Human culture stems from knowledge acquired through society's shared experience. Cultural transmission enables new members of society to quickly learn from this accumulated experience. In order for a robot to understand cooperative behavior, which is necessary for the cultural transmission of knowledge, researchers developed a system whereby a human agent can teach the Nao humanoid new actions
Read more at: http://phys.org/news/2015-09-humanoid-robot-liaise-space-station.html#jCp
Still primitive, but progress is being made.
There seems to be some sort of bifarcation happening to us. 
Uncletommy's picture
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It's the horse's asses I wonder about

While working the land with Belgians gives us all a warm fuzzy feeling, try working a one bottom plow behind one of those beauties. What comes out of one can be looked upon in the same light as those in Russia, Iran and the Gulf States. It is pure horse-shit.

We're looking at a million refugees flocking to the west for asylum as we continue to pump our "thin-air" US dollars into the coffers of some of the wealthiest countries in the world. The world may point their fingers at us in the West for not doing enough, but when will we begin to look at the source of the problem. Why do the Islamic states chose to let the heavy lifting be done by the Christian countries. Call me a reactionary, but if the Islamic states practiced a tenth of what the Koran espouses, they would be coming to the plate to help rather than pumping dollars into the Assad regime, ISIS and other related "under-the-table" Jihadist's groups that are causing this turmoil. Christians helping Syrians or Saudis helping themselves?

Am I wrong or have I missed something?

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Uncletommy wrote: Call me a
Uncletommy wrote:

Call me a reactionary, but if the Islamic states practiced a tenth of what the Koran espouses, they would be coming to the plate to help rather than pumping dollars into the Assad regime, ISIS and other related "under-the-table" Jihadist's groups that are causing this turmoil. Christians helping Syrians or Saudis helping themselves?

Am I wrong or have I missed something?

For starters, Uncle Tommy, the Saudis heavily oppose the Assad Regime and spend lots of money in attempts to remove Assad from power.  Secondly, it's fairly plain to see that the West supports Jihadis when they're opposing regimes we don't like, so to claim that it's the Muslims that are primarily supporting Jihadis ignores Western support for the Mujahideen in Afghanistan during the Soviet invasion of the 80's, Western support for Saddam's regime in the 80's, Western support for ISIS in Syria right now, etc.

robie robinson's picture
robie robinson
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one mans work is anothers

pleasure. what comes out is $#!T to one and fertility to another. We can choose our stream of attitude, but not whether we have one.


robie robinson's picture
robie robinson
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one mans work is anothers

pleasure. what comes out is $#!T to one and fertility to another. We can choose our stream of attitude, but not whether we have one.


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