Daily Digest

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Daily Digest 10/3 - U.S. Income Inequality, The Tragedy Of America's Welfare State

Saturday, October 3, 2015, 11:34 AM

Economy

Income inequality in the U.S. from 1950 to 2010: the neglect of the political (richcabot)

The overall argument is that an influential driver of increasing inequality is the capability of the relatively well-off to capture large parts of the national income at the expense of the majority of the population through political influence. While the real wages of the economic elite increase, the majority of the population experiences stagnating real wages. In this regard, the changing shares of national income as measured by the functional income distribution (FID), which distinguishes between the factors labour and capital, have been neglected so far. The former measures the return to labour which is a major source of income for the majority of the population, whereas the latter measures the return to ownership which accrues mostly to a wealthy minority of the population.

Five global catastrophes that could happen tomorrow (Afridev)

It is an awe-inspiring and terrifying sight, a volcano spewing lava and millions of tons of ash and rock into a blackened sky. Mexico’s “fire volcano”, Mount Colima, recently began erupting … again, a reminder of the spectacularly destructive forces that can be unleashed by nature.

Alan Greenspan and the Space-Time Continuum of Interest Rates (richcabot)

“Isn’t it a problem that neither I or you or anyone else, for that matter, knows what the [risk-free] rate should be?”

Alan Blinder’s response to my question at the time was that it is a problem, and that it would be a better world if central banks had perfect foresight. He seemed baffled by my follow-up question, specifically, why we do not allow credit markets to set every interest rate in the economy without setting a fed funds rate. Why, in other words, did we need a “risk-free” rate?

The Great Illinois Gold Rush! (GE Christenson)

Back to the important question: Where is the gold rush? Retirees, future retirees and current state workers should realize that they will inevitably lose benefits and jobs while their taxes and expenses increase. Gold, not the legislature nor the politicians, will protect their purchasing power.

The Mind of Mr. Putin (Joe M.)

Five thousand are dead and 25,000 wounded since March. And as the 25 million Yemeni depend on imports for food, which have been largely cut off, what is happening is described by one U.N. official as a “humanitarian catastrophe.”

“Yemen after five months looks like Syria after five years,” said the international head of the Red Cross on his return.

Gold And Money Supply (Aaron M.)

There is no correlation between gold and inflation any more than there is with most commodities. We have the largest database in the world. If such a relationship existed, we would be shouting it from the rooftop. The commodities business is highly cyclical; boom and bust is par for the course. Yet, these promoters bury people alive by telling them that there is no cycle and it is always up, up, and away.

Schiff: Sept. Jobs Report Confirms Weakening Labor Market (Herman J.)

Peter Schiff is an internationally recognized economist specializing in the foreign equity, currency and gold markets. Mr. made his name as President and Chief Global Strategist of Euro Pacific Capital. He frequently delivers lectures at major economic and investment conferences, and is quoted often in the print media, including the Wall Street Journal, New York Times, Barron’s, BusinessWeek, Time and Fortune.

A Conversation with Edward Snowden (Debu)

In this week’s episode, Neil deGrasse Tyson chats with whistleblower Edward Snowden via robotic telepresence from Moscow. The two card-carrying members of the geek community discuss Isaac Newton, the difference between education and learning, and even how knowledge is created. They also dive into the Periodic Table and chemistry, before moving on to the more expected subjects of data compression, encryption and privacy. You’ll learn about the relationship between private contractors, the CIA, and the NSA, for whom Edward began working at only 16 years old. Edward explains why metadata tells the government much more about individuals than they claim, and why there’s a distinction between the voluntary disclosure of information and the involuntary subversion of individual intent. Part 1 ends with a conversation about Ben Franklin, the Fourth Amendment of the U.S. Constitution, the Universal Declaration of Human Rights, the CIA’s oath of service, and government Standard Form 312, which is the agreement Snowden violated.

When Work Is Punished: The Ongoing Tragedy Of America's Welfare State (richcabot)

In short, the welfare system punishes work and incentivizes dependency. More concretely, the structure is such that rational actors will eschew hard work, because the more they earn, the poorer they will effectively be in terms of total resources (calculated as welfare benefits plus earnings).

In the simplest possible terms: for many Americans, wage growth is a very, very bad thing.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/2/15

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."

5 Comments

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
US bombs hospital repeatedly.
Human Rights Watch has raised “grave concerns” about whether US forces took “sufficient precautions” to identify and avoid striking the facility.
 
“The bombing of the hospital is a shocking development for Kunduz, where civilians and aid workers are already at grave risk from the fighting,” said Patricia Gossman, senior Afghanistan researcher at Human Rights Watch. “All forces are obligated to do their utmost to avoid causing civilian harm.”
http://www.rt.com/news/317542-kunduz-hospital-bombing-msf/
 
Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
The view from South Africa

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Parhomov Cold Fusion Experimental Results

Sorry.  Í have been neglecting my email and this English translation of Parkhomov's Rossi replication came through. 

http://www.lenr-forum.com/forum/index.php/Thread/2106-Parkhomov-presenta...

Long story short. High temperatures attained, lots of energy released and isotope changes of the lighter metals. (Lithium,  aluminum)
It is an easy read with lots of pictures. Which Just goes to show that good science can be explained lucidity. It does not have to be arcane.

Good show, the Russians. 

 

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1890
Decline vs. Crash

One of the basic debates here is whether western standards of living, civil liberties and the structures-of-civilization are more likely to decline gradually or abruptly.  One of the arguments and mechanisms for abruptly is warfare:  human beings fighting over the shrinking resource pie.

Particularly important is fighting in the heart of the petroleum producing region.

On that note, the proxy war for control of the natural gas pipeline through Syria looks to be heating up.

Yesterday,

Saudis Mull Launch Of Regional War As Russia Pounds Targets In Syria For Fourth Day

one should not expect Washington, Riyadh, Jerusalem, and London to simply go gentle into that good night.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
It's all going to plan.

I rowed over to my neighbor today to discuss boats, food and women. He Was obviously a Scot. His clan comes from the Isle of Mull and their right of passage was to build and operate their own boat. You weren't a man until you had accomplished that. 

Anyway he took his wife to Paris for her birthday.  He said that inside the ring road Paris is still old school, picture card perfect. Outside the ring road was a different story. It was thick with immigrants. He said , without any idea of my own position,  that it reminded him off the fall of Rome and the Barbarians at the gate.  "Mmmm," I thought "So the civilization collapses from the outside in. Apartheid comes to Paris."

The conversation moved to the Scottish independence vote. He compared Scotland to Norway.  Similar peoples, geography, economy and both with access to oil. Norwegians are rich,  the Scots are poor. London promises to take the oil wealth and then look after the Scots with welfare. Let me hazard a guess. Scotland will soon be hosting a lot of Uitlanders.

My other ramblings around the net reveal that Germans are being forced out of their homes to make way for immigrants. Merkel has an interesting pedigree, as does the owner of that great social media, Facebook. 

The collapse is well under way and the message is being tightly controlled. 

I'm afraid that I don't have the latest cricket score.

EDIT: I told my Scottish friend that my clan are the McCullums. He looked at me very thoughtfully for about a minute. 

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