Daily Digest

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Daily Digest 10/26 - TPP 'Toxic' To Environment, Quantitative Easing And The Nightmare It Has Created

Monday, October 26, 2015, 9:22 AM

Economy

Tensions Rise Between European Nations Over Refugee Crisis (jdargis)

The situation in the Western Balkans -- the focus of the summit in Brussels -- has worsened over the past few months, aggravating deep-seated distrust between nations that emerged from the violent breakup of the former Yugoslavia. The main flow of migrants fleeing conflict-stricken nations changed from a route through southern Europe to one leading from Turkey to Greece and through countries including Croatia, Serbia and Slovenia.

ACLU Accuses Biloxi of Running Debtors' Prison in Lawsuit Seeking to 'Dismantle Two-Tiered System of Justice' (richcabot)

The organization further explains that "the city, through the Biloxi Municipal Court, has aggressively pursued court fines and fee payments from indigent people by issuing warrants when payments are missed. The warrants charge debtors with failure to pay, order their arrest and jailing in the Harrison County Adult Detention Center, and explicitly state that debtors can avoid jail only if they pay the full amount of fines and fees in cash."

John Mauldin: Someone Is Spending Your Pension Money (Nate)

Illinois and many other states and local governments are in this mess because their politicians made impossible-to-keep promises to public workers. The factors that made them so impossible apply to everyone else, too. More people are retiring. Investment returns aren’t meeting expectations. Healthcare costs are rising. Other government spending is out of control.

Obama thinks kids are spending too much time on standardized tests (jdargis)

Now, under mounting opposition to the federal testing policies, the Obama administration can’t do much besides issue revised guidelines for school districts and “call on Congress” to make changes. The president and his cabinet acknowledge that they’ve contributed to the problem of over-testing; as education secretary Arne Duncan told the New York Times, “At the federal, state and local level, we have all supported policies that have contributed to the problem in implementation. We can and will work with states, districts and educators to help solve it.”

Goodbye Middle Class: 51 Percent Of All American Workers Make Less Than 30,000 Dollars A Year (richcabot)

And of course the numbers above are only for those that are actually working. As I discussed just recently, there are 7.9 million working age Americans that are “officially unemployed” right now and another 94.7 million working age Americans that are considered to be “not in the labor force”. When you add those two numbers together, you get a grand total of 102.6 million working age Americans that do not have a job right now.

Quantitative Easing & the Nightmare It Has Created (Aaron M.)

So what does this new reality mean? Under QE, the central banks are the bidders supporting the market in the same stupid manner as attempting to peg a currency. The ECB under Draghai has lost its mind. They keep increasing the percentage of bonds they buy in hopes of creating inflation, but nothing is working. The bonds will not crash without a free market, but instead, they could become extinct. In order for a crash to materialize, there has to be a free market where the private sector bids. But what happens when the private sector has no interest? Oops! Extinction.

General Motors and U.A.W. Reach Tentative Contract Accord (jdargis)

Union leaders from G.M. plants nationwide will convene Wednesday in Detroit to discuss and vote on the tentative agreement, which would then be put to union members. The Fiat Chrysler agreement last week was reached only after the union membership rejected an earlier tentative accord and the union set a strike deadline.

Volkswagen Investigation Focus to Include Managers Who Turned a Blind Eye (jdargis)

Shareholder advocates and former employees have criticized what they said was a culture inside Volkswagen that centralized decision making at company headquarters in Wolfsburg, Germany, and discouraged open discussion of problems, creating a climate in which people may have been fearful of speaking up.

Leaked Doc Shows 'Toxic Trade Deal' Putting Environmental Safeguards on the Chopping Block (richcabot)

"Nothing in the leaked chapter would prevent foreign companies from using those special privileges to attack environmental policies in unaccountable trade tribunals. And while the chapter expresses concern about climate change, TTIP would actually facilitate increased trade in fossil fuels—an explicit goal set by the Council of the EU," the analysis continues.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/23/15

Provided daily by the Peak Prosperity Gold & Silver Group

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8 Comments

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5570
The refugee crisis illustrated.

The refugee crisis is already fraying the EU experiment, and it is not abating. For a sense of the scale, look at just one border crossing, for one small country (Croatia) on one day and ask yourself..."how would I propose to care for all these people?"

If you have no immediate answer to that question, then you are in the same boat with the Croatian government.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Second Chinese bank joins group setting gold price

 

Second Chinese bank joins group setting gold price

China Rate Cut Lifts Emerging Markets as Polish Vote Hurts Banks

Bloomberg-4 hours ago
Emerging-market stocks rose as China's surprise interest-rate cut added ... demand to own emerging-market debt over U.S. Treasuries was little changed at 392 ...

Draghi in Countdown to More Stimulus Awaits Clues on Economy

Bloomberg-6 hours ago
In the week after the European Central Bank president signaled he's effectively in countdown to more stimulus, he'll receive a raft of data from unemployment to ...
 

Stock Rally Stalls as Dollar Slides on Central Bank Speculation

Bloomberg - ‎15 hours ago‎
The four-week rally in global stocks stalled, while the dollar slipped against major peers as investors waited for more evidence that central banks will add stimulus to revive the global economy. The Standard & Poor's 500 Index retreated from a two ...
 

Japan's Struggling Economy Finds 'Abenomics' Is Not an Easy Fix

New York Times-17 hours ago
The central bank's aggressive intervention has been central to Mr. Abe's policies, widely known as Abenomics. But events have conspired to blunt its impact.
 

Economists raise Brazil's 2016 inflation view to 6.22 pct

Reuters-4 hours ago
Estimates for the central bank's benchmark interest rate at end-2016 also increased. The government targets inflation at 4.5 percent, with a tolerance margin of 2 ...

Real Drops With Brazil's Woes Offsetting Emerging-Markets Rally

Bloomberg-37 minutes ago
An index of emerging-market currencies gained 0.1 percent today as expectations of lower interest rates and more monetary stimulus in developed economies ...

Central banks may use negative interest rates as stimulus

Lanka Business Online-11 hours ago
Oct 26, 2015 (LBO) – Negative interest rates is a possibility in the United States following in the foot steps of interest rates pushed below zero in countries such ...

Bank of Japan Stepping Up Bond Buying Pace With or Without Stimulus Shift

Bloomberg - ‎16 hours ago‎
The Bank of Japan will be stepping up its unprecedented bond purchases, whether it expands its stimulus program or not this week. With Governor Haruhiko Kuroda's easing now 2 1/2 years-old, redemptions of previously purchased debt mean reinvestment ...

Chief Springfield critic Emanuel seeks $800 million in help from ...

Chicago Tribune-5 hours ago
By extending the payment schedule, the city could avoid more than $1 billion in ... of Chicago's wants come against a backdrop of a state wallowing in debt in the ...

Alberta expected to unveil largest deficit budget in its history

CTV News-17 hours ago
The government was initially aiming for a $5.5-billion deficit this year and balanced books by 2019-2020 in its platform, but it looks as though those promises will ...

Bleeding Continues for Korean Shipbuilders on Hyundai Heavy Loss

Bloomberg-6 hours ago
Hyundai Heavy Industries Co. posted a net loss of 434.1 billion won ($383 million) ... The deficit highlights the continued challenges facing South Korea's largest ...

States surrounding Illinois ready for lottery business amid budget crisis

WLS-TV - ‎22 hours ago‎
With Illinois delaying payouts of more than $600 because of its budget mess, neighboring states are salivating at the chance to boost their own lottery sales. Businesses near borders, particularly in Indiana, Kentucky and Iowa, say they've already ...

States surrounding Illinois ready for lottery business amid budget crisis

WLS-TV - ‎22 hours ago‎
With Illinois delaying payouts of more than $600 because of its budget mess, neighboring states are salivating at the chance to boost their own lottery sales. Businesses near borders, particularly in Indiana, Kentucky and Iowa, say they've already ...

 

DennisC's picture
DennisC
Status: Gold Member (Online)
Joined: Mar 19 2011
Posts: 272
Refugee Crisis

I accidentally found the site listed below the other day. In addition to a large selection of news articles about the geographical area, the site has a red-coloured link in the menu bar titled "refugee crisis".

If you go to: http://www.balkaninsight.com/en/page/refugee-crisis, you'll see, based on the number of links listed, Croatia and Serbia seemed to have pressed the "unlike" button on their relationship. Not a good situation all around.

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 367
Refugee Crisis

 

http://syrianrefugees.eu/

"An estimated 9 million Syrians have fled their homes since the outbreak of civil war in March 2011"

I believe about 4 Million Syrians have fed to neighboring nations so far. I would imagine Turkey is probably past the breaking point since has even more refugees than the EU has recieved, and has considerable fewer resources to support them. 

For the short term, Russia's involvment is likely to excerbate the refugee problem as the conflict swings in the opposite direction. Syria became the place to go for militants, now they will likely be leaving and probably for Turkey and Europe. I don't believe ISIS, Al-queda militants will migrate to Iran, Iraq or even KSA. 

Almost every week I seen an article about large arms sales to the Middle East. The ME has become the ultimate proxy war.The regional war in the Middle east only has one direction to go: Worse! 

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
watch natural gas

http://www.nasdaq.com/markets/natural-gas.aspx?timeframe=10y

price is close to an all time low...

Uncletommy's picture
Uncletommy
Status: Gold Member (Offline)
Joined: May 3 2014
Posts: 476
Are you comfortable in your retirement?

I found it, sadly, ironic as I clicked on Chris' refugee crisis YouTube video, to see a Fisher Investments banner prominently superimposed across the screen, asking "If I was comfortable in my retirement".

It reminded me of the old Listerine TV ad where a young couple was discussing whether the vivacious granny dancing with another male senior, worried about bad breath, implying granny's use of Listerine saved her the embarrassment. My grandmother had bad breath, too, but she sure as hell never worried about it. Unlike MY grandmother, 'I'm comfortable in my retirement(what there is of it) but I do worry about it! The refugee crisis in Slovenia should concern all of us. If, we, as national governments choose to leave this issue to someone else, we might as well accept another ugly cataclysm in the making. 

Maybe the best place to start, in my opinion, would be with widows and orphans; which must be plentiful. Would certainly make the screening process easier.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Here is a map of Eurasia.

Here is a map of Eurasia.  Can anyone point to Germany, let alone Croatia?

My point. Why the obsession with Europe?  Why not go to Uzbekistan for instance?  Plenty of open land in Uzbekistan. 

We all know why don't we? Deep in our little lying hearts. 

badScooter's picture
badScooter
Status: Silver Member (Offline)
Joined: Jun 20 2011
Posts: 152
spratley island standoff in making

http://www.cnn.com/2015/10/26/politics/south-china-sea-islands-u-s-destr...

This has the potential to get sticky.  I'm glad I'm not in the PRC right now...I was watching this story unfold for the last two weeks, when I was there, fairly anxious to be back stateside before anybody "did anything"

 

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