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Daily Digest 9/22 - Inside the Migrant Crisis, Why U.S. Hides 70bn Barrels Of Oil Underground

Tuesday, September 22, 2015, 9:24 AM

Economy

Thousands Ricochet Across Europe: Inside the Migrant Crisis (jdargis)

Rick was at the Hungary-Serbia border after anchoring days of tense developments while based in Budapest. He had been on assignment in Ukraine when the migration crisis reached his reporting territory, and so had been summoned back there to report and write. The Ukraine story that he was working on is still in his notebook, he has reminded me.

City’s Poverty Rate Shows No Improvement (richcabot)

"Five years into the recovery from the Great Recession, it has become clear that it will take more than new jobs and lower unemployment to change the fact that one in five New Yorkers live below the poverty line. The city’s residents need bold public policies to reverse the trend," said the Community Service Society of New York in a statement. The antipoverty agency (a funder of City Limits) backed the governor's recent call for a $15 minimum wage and the push for broader family leave policies. "Today’s poverty numbers reveal why that is such a critical matter: the poverty rate for single mothers was 41.4 percent in 2014, almost double the overall poverty rate and up from 2013," CSS noted

Marin Katusa: Federal Reserve Can’t Raise Rates Because of Deflation (Herman J.)

“The Chinese are going to continue to ease their currency. They have to. We are in a currency war and it’s deflationary pressures.”

“Nobody has actually experienced a true deflation who is investing today.”

Why The Kids Are Still In The Basement (Aaron M.)

Peeking behind the headline number, an even uglier truth is revealed: the only reason the homeownership rate is as “high” as it is, is due to homeowners in the 65 and over age group. For everyone else, homewonership rates are now the lowest in history!

Want Online Privacy? Here's How (richcabot)

A step up from BlackPhone is Cryptophone, used by law enforcement, government types, and serious security-minded company executives. It’s not cheap — around $3,500 — but it blocks “stingrays,” those cellphone tower-mimicking devices that scoop up bulk data of any phone within the stingray’s reach.

There Are Indications That A Major Financial Event In Germany Could Be Imminent (Aaron M.)

What makes things even worse is how recklessly Deutsche Bank has been behaving. At one point, it was estimated that Deutsche Bank had a staggering 75 trillion dollars worth of exposure to derivatives. Keep in mind that German GDP for an entire year is only about 4 trillion dollars. So when Deutsche Bank finally collapses, there won’t be enough money in Europe (or anywhere else for that matter) to clean up the mess. This is a perfect example of why I am constantly hammering on the danger of these “weapons of financial mass destruction”.

How an obscure drug’s 4,000% price increase might finally spur action on soaring health-care costs (jdargis)

New York-based Turing bought the drug called Daraprim for $55 million this summer. It is used to treat toxoplasmosis, a parasitic infection that can be severe in patients with compromised immune systems, such as HIV, and for pregnant women. Earlier this month, the head of the Infectious Diseases Society of America and the HIV Medicine Association condemned the price increase from $13.50 a pill to $750, noting that the average cost per year for a patient weighing more than 132 pounds would be $634,500.

Why the US hides 700 million barrels of oil underground (Arthur Robey)

Bob Corbin at the US Department of Energy is the person in charge of making sure that money is spent wisely. “All of our sites are located in what we call salt domes,” he explains. “The salt is impervious to the crude oil, there’s no mixing, no breaking down, so it’s a great storage facility.” Corbin, who served for 22 years with the military in the US Coast Guard, is proud of the four sites, which stretch from Baton Rouge, Louisiana to the largest of the four, near the tiny city of Freeport, Texas. He refers to the vast salt storage chambers as “my caverns”. “The sites themselves,” he says, “are very impressive.”

Volkswagen Drops 23% After Admitting Diesel Emissions Cheat (jdargis)

The European Commission also said it’s taking VW’s cheating seriously and is in contact with U.S. regulators and the company about details of the case.

German competitors BMW AG and Daimler AG said on Monday they aren’t aware of a similar U.S. probe into their cars. Shares of both slipped the most in almost a month.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/21/15

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."

10 Comments

Tall's picture
Tall
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George Will vs. Pope Francis

George Will really needs to look in a mirror. In a screed worthy of Fox News, he denigrates Pope Francis for proposing policy prescriptions that would “devastate the poor on whose behalf he purports to speak”. Yet while Will accuses the pope of being “fact free”, Will is the one who gets his facts wrong. Will is the one who seems completely out of touch with recent trends in the global economy.

https://www.commonwealmagazine.org/blog/fact-free-flamboyance-george-will-vs-pope-francis

saxplayer00o1's picture
saxplayer00o1
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Taxes, education and violence: Is it time to leave Chicago

Taxes, education and violence: Is it time to leave Chicago for the ...

ChicagoNow (blog)-5 hours ago
That fact alone should give Chicago families pause: CPS is relying on the state of Illinois—which is almost three months overdue on passing a budget—to fund a ...
 

Brazil 10 Year Government Bond (Yield now at almost 16%)

 

Edwardelinski's picture
Edwardelinski
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Volkswagen will be taking eveyone down

This is a huge story,follow the money.For starters, in the U.S the EPA fines 37,000 a car for cheating on emissions tests.The number in the U.S. has been thrown out in the neighborhood of 18 billion in fines alone.The NY Attorney General just jumped into the game and will be initiating charges.Not to be outdone,France,Italy and every country in the world have jumped in.As they should, this is criminal!Next on the list,U.S. pension funds and individual investors.Next,the German auto industry,one in 7 jobs are tied to Volkswagen.Who is always the 1st to go to cut costs,the workers.Finally,banks in Germany are on the hook for untold billions and most likely trillions with the underlying derivatives attached.So yes,this is a major jackpot the citizens of Germany will be dealing with.Keep in mind as well because this isnt a major American car company with political money and corrupt lobbyists behind them the ramifications are enormous.

Arthur Robey's picture
Arthur Robey
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George Will's Rationalizations.

The trickle down economy gives me a warm, runny feeling. 

What a pity few will bother to read the rebuttal in the Catholic Commonweal magazine. Let's hope the other denominations take it up and give their congregations a real ear bashing on Sunday. But how can one compete with the megaphone of the MSM? Perhaps the lumpen proletariat (what's left of them) are not so dumb as they pretend. One can only hope. 

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robie robinson
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Edwardelinski's picture
Edwardelinski
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Massive stock losses begin for Volkswagen

The country of Qatar has reported a 4.5 billion loss on there stock in 2 days.Bloomberg reporting they have hired Kirkland and Ellis the go to guys for criminal destruction of the environment!!!One town in Germany is worried they may turn into the next Detroit.The head of one company has the potential to destroy the lives of thousands of innocent people.Sounds familiar doesnt it?What does it always come down to?Greed.

thc0655's picture
thc0655
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Eric Peters in defense of VW

http://ericpetersautos.com/2015/09/23/crucified-by-uncle/

The truth – explained rarely, for reasons that will become obvious – is that the emissions of new cars (and recent-vintage cars) have been so thoroughly cleaned up they hardly exist at all. Catalytic converters (and especially “three way” catalytic converters with oxygen sensors) and fuel injection alone eliminated about two-thirds of the objectionable effluvia from the exhaust stream – and they’ve been around since the 1980s. Most of the remaining third was dealt with during the ’90s, via more precise forms of fuel delivery (port fuel injection replaced throttle body fuel injection) and more sophisticated engine computers capable of real-time monitoring and adjustment of parameters, and of alerting the vehicle’s owner to the need for a check (OBD II).

Since the late ’90s/early 2000s, the industry has been chasing diminishing returns. The remaining 3 percent or so of the exhaust stream that’s not been “controlled.”VW 3

You may begin to see the problem here.

Internal combustion is always going to produce some emissions. The engineers have picked the low hanging (and mid-hanging) fruit. But the EPA insists on what amounts to a zero emissions internal combustion engine.

Which, of course, is impossible.

Which may be just the point.

Set unattainable standards – then denounce the victim for “noncompliance.”...

No one has alleged that any of the “affected” vehicles runs poorly. The fact is they run better than they would have if VW had set the calibrations to appease the implacable EPA.

Which will never be appeased until we’re all driving $60,000 “zero emissions” electric cars we can’t afford. Which will put most of us into public (that is, government) transport. If we’re transported at all. Probably, we’ll be herded into urban cores, stacked like proles – for the sake of “the environment.”

It is a tragedy of stupidity and maliciousness and engineering ignorance.

Consider, for instance,  the fact that if it were not for federal “safety” mandates, VW (and other car companies) would be able to sell vehicles hundreds of pounds lighter than the current average. Which, in turn, would allow for smaller engines – which burn less fuel. Which, in turn produce a lesser volume of exhaust. Even if a hypothetical 1,600 pound ultra-light vehicle’s exhaust stream were, let’s say, 2 percent “dirtier” than a current 2,300 pound EPA (and DOT) approved “safety” car’s, if the ultra-light burns 40 percent less fuel, its total output is still much lower than then government-approved car’s.atlas shrugged 2

But such cars (the ultra-lights) have – effectively –  been legislated out of existence.

At the same time, the cars that may still be manufactured are required to meet increasingly unattainable standards, putting the manufacturers (like VW) in the position of manufacturing government-compliant cars that cost too much and perform poorly that few will want to buy… or “cheating” the government, in order to build cars people will actually want to buy.

What’s happening to VW could have come right out of Atlas Shrugged, Ayn Rand’s cumbersome but nonetheless predictive novel of 50 years ago. VW cast as the real-life version of Rearden Steel.

Some inside baseball: Mazda has been trying to get its Sky-D diesel engine EPA-compliant (while also customer-viable) for the past two years, without success so far. You are denied this 50-plus MPG (and extremely clean) diesel because of the particulate jihadists in Washington.

Remember: In neither case (VW or Mazda) are we talking about a return to the LA of the early ’70s, a feasting on lead chip paints and bathing in DDT. It’s all a bogey at this point. A straw man. A phantom, meant to scare you. But it has no reality.

The “emissions problem” has been solved – decades ago. But the EPA, et al, cannot admit this.

Because then there’d be no need for the EPA.

It's a tough debate.  I, for one, would buy an ultralight car for the gas mileage and take my chances with collisions with heavier vehicles.  If "allowed" to, I'd also buy that Mazda diesel that gets 50 mpg.

Tim Ladson's picture
Tim Ladson
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What Gives ?

Thanks for posting this article Tom. I have been wondering why in the US there is not available a small pickup truck powered by a diesel engine that could offer substantial fuel savings over the increasingly large gas guzzlers we have now. The rest of the world uses this type of truck universally as their workhorses, I wonder why we can't have the same option here ?  

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thc0655
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Peter Schiff comic relief on CNBC

http://www.cnbc.com/2015/09/22/schiff-im-right-about-the-fed-ill-be-right-about-stocks.html

Move along. Nothing to see here. wink

Edwardelinski's picture
Edwardelinski
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Posts: 309
The hits keep coming for germany

Another day,another scandal.Looks like BMW may have cheated .Who's next? Mercedes?..On the plus side only 7% of Germans invest in the stock market so there life savings won't be wiped out.They dont participate in rigged markets.They prefer to hold onto what they have rather than watching what they worked there whole lives evaporate...

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