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Daily Digest 11/12 - Space Mining Gets The OK, Why Don't We "Like" Our Neighbors?

Thursday, November 12, 2015, 10:08 AM

Economy

Life After ISIS and Assad: A Journey in a Free Syria (jdargis)

Such scenes dotted the map during a recent 10-day visit in northeastern Syria, along the Turkish border. Everyone here, it seems, has an angle to work, scrambling to fill the void left by the collapse of the Syrian state.

Wholesale Inventories Have Never Been Higher Relative To Sales, Ever (Aaron M.)

Having risen to its highest level since the middle of the last two recessions, wholesale inventories-to-sales ratio remains at cycle highs at 1.31x. With wholesale sales and inventories both rising 0.5% (both more than expected), however, the absolute difference between sales and inventories has never been higher, leaving either major inventory liquidation ahead (or a miracle in sales). Wholesale inventories have now risen 4.7% YoY, as Sales have fallen 3.9% YoY. Finally, Auto inventories-to-sales ratio dropped very modestly (thanks to the surge in sales), but remains deep in 2008/9 crisis territory.

Has Gold Hit a Bottom? (Tiffany B.)

Think of Venezuela as a hedge fund, in need of cash and sitting on a gigantic “long” position that’s worth less and less by the month. Traders can see this gold “whale” is in trouble, so they hang back and let it thrash. Why try to catch the proverbial falling knife (or gold piano)? And, of course, the price of gold drops even further.

Billionaire investor Carl Icahn: Inversions are terrible for this country (Herman J.)

Investor Carl Icahn speaks to Fox Business about corporate inversions and tax reform in the United States.

Why Don’t We “Like” Our Neighbors? (jdargis)

Maybe the percentage of residents following a government Twitter account is a bad measure of all of this. But the question remains—why do we feel more informed about the price of pants and the Syrian civil war than street sweepings and school board meetings? And, perhaps less obvious, should it be a priority to build localism into the internet? The problem of alienation from our neighbors and communities is certainly not something that any single techno-fix is going to solve. I’m not Facebook friends with my neighbors because I simply don’t know them that well, and I don’t have many venues to get to know them in. I don’t retweet my city council because most of my followers are geographically scattered and I don’t think they really care about tomorrow’s finance meeting. The internet is only useful for learning about our neighbors if we want to know about them and have the resources to build community-based tools. The latter is an issue of public divestment, but what about the former?

Economist Saul Eslake says the mining boom may be the last ever (Arthur Robey)

"So it could well be, in my view, that the commodities boom Australia has just experienced in the last 12 or so years is the last of its kind in human history unless unforeseen technological developments ordain otherwise."
Mr Eslake said the gloomy outlook meant Australia had to diversify its economy, and he said recent free trade agreements would help but would not alone fix the problem.

Democrats and Republicans agree: If you can mine it in space, it’s yours (jdargis)

Space mining advocates, including Planetary Resources, praised the new law. “Many years from now, we will view this pivotal moment in time as a major step toward humanity becoming a multi-planetary species," said Eric Anderson, co-founder and co-chairman of the asteroid mining company—which is backed by several Google founders. "This legislation establishes the same supportive framework that created the great economies of history, and it will foster the sustained development of space."

Argentina Pulling Ahead In The Race To Be The World’s Next Shale Hotspot (Tom K.)

All of this development is being supported by a reformed natural gas pricing system in Argentina -- which pays better rates for production from unconventional fields. In fact, YPF's management noted they are doing everything they can to shift production toward natgas and away from oil -- completely the reverse of the situation in North America the last several years.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/11/15

Provided daily by the Peak Prosperity Gold & Silver Group

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5 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
Global gold demand hits more than two-year high in third quarter

 

Euro-Area Industrial Production Falls 0.3%, More Than Forecast

Bloomberg-5 hours ago
Industrial production in the euro area fell more than economists forecast in September, which may raise concerns among European Central Bank policy makers ...

Exclusive: ECB mulls buying debt of cities and regions - sources

Reuters-Nov 11, 2015
... of a possible extension of its one-trillion-euro-plus money printing scheme. ... Any move to buy municipal debt would particularly benefit the German regions ...

Thailand's high household debt is a burden, says central bank chief

Malay Mail Online-4 hours ago
Bank of Thailand Governor Veerathai Santiprabhob says the level of household debt is still an issue for the economic recovery to a certain extent.

Japan machinery orders point to tepid rebound from feared recession

Reuters - ‎13 hours ago‎
TOKYOJapan's core machinery orders rose in September for the first time in four months, but companies forecast only modest gains in orders in October-December, a sign the economy's recovery from an expected recession could be slow. Core machinery ...

BOJ could ease further early next year on weak prices: Reuters poll

Reuters-10 hours ago
Recent revisions in the central bank's inflation projections have prompted five out of 12 analysts polled by Reuters to push back their expectations for the timing ...
 

Global gold demand hits more than two-year high in third quarter: WGC

Reuters - ‎3 hours ago‎
However, outflows from gold ETFs -- popular investment vehicles which issue securities backed by physical metal -- increased by 24 tonnes year on year to 65.9 tonnes, helping to offset the rise in demand elsewhere. Central bank buying, while remaining ...

India Reports Weaker Industrial Production, Rise in Inflation

Nasdaq-2 hours ago
The result could strengthen calls for India's central bank to cut rates again before the end of the year, but with inflation ticking up for the third straight month, ...

China Credit Growth Falls as Tepid Economy Dents Loan Demand

Bloomberg - ‎7 hours ago‎
That was lower than all 25 economists' projections and less than half the median forecast 1.05 trillion yuan. The data rounds out a ... The readings underscore the government's challenge to kick start growth in an economy weighed by overcapacity and debt.
 

UPDATE 2-Slump in China credit in Oct highlight growth challenges

Reuters - ‎5 hours ago‎
China's total social financing (TSF), a broad measure of overall credit in the economy, fell 63 percent to 476.7 billion yuan in October from 1.3 trillion yuan in September, the lowest level since July 2014, data from the People's Bank of China showed ...
 

China Speeds Up Fiscal Spending in October to Support Growth

Bloomberg - ‎12 hours ago‎
Fiscal spending jumped 36.1 percent from a year earlier to 1.35 trillion yuan ($210 billion), while fiscal revenue rose 8.7 percent to 1.44 trillion yuan, the Finance Ministry said Thursday. In the first ten months of the year, spending advanced 18.1 ...

Korea's potential growth on decline: BOK chief

The Korea Herald - ‎6 hours ago‎
The bank has vowed to closely monitor the trend of the increase in oustanding household debt and external risk factors, such as any changes in the U.S. Federal Reserve's rate-setting or in economic conditions in emerging market countries, including ...

owning a house is financial suicide (opinion)

Herald Sun-10 hours ago
I see codewords a $15 trillion dollar industry uses to hypnotise its religious adherents to ... There's about $15 trillion in mortgage debt in the United States. This is ...

Pennsylvania liquor board racks up $362M in pension debt

The Times Herald-46 minutes ago
Pennsylvania sold $2.34 billion worth of booze in the past fiscal year, when ... million in the hole, largely because the PLCB owns $362.7 million in pension debt.

Connecticut Pensions Report Recommends Extending Payment ...

WNPR News-22 hours ago
Connecticut's treasurer Denise Nappier said she believes this fix is too radical — if the state backs off on saving for future pension costs now, it'll miss out on ...

Moody's sees Puerto Rico defaulting on some debt payments due Dec. 1

Reuters - ‎17 hours ago‎
The U.S. commonwealth, facing around $70 billion in total debt, is struggling to breathe life into a stalled economy with a roughly 45 percent poverty rate. In a note on Wednesday, Moody's, which has rated Puerto Rico Caa3 negative, said the island ...

Junk Deals Derailed as High-Yield Muni Funds Pull in Less Cash

Bloomberg-8 minutes ago
A Texas agency has delayed pricing $1.4 billion of speculative debt for a methanol plant since releasing offering documents Oct. 19. And the Puerto Rico ...

Brazil's Gol Posts Record Loss, Cuts Operating Margin Forecast

Bloomberg-13 hours ago
The Sao Paulo-based carrier had a net loss of 2.13 billion reais ($567 ... help national carriers facing a cash deficit estimated at as much as 7.3 billion reais this ...

Brazil Police Use Force against Workers Protesting Layoffs

Latin American Herald Tribune-15 hours ago
SAO PAULO – Police on Wednesday used tear gas and rubber bullets to break up a protest against expected layoffs at a steel mill in the southeastern Brazilian ...

Companies continue chipping away at health insurance benefits

USA TODAY - ‎16 hours ago‎
Companies' health care costs in 2015 rose at the lowest rate in at least 20 years, a report out Thursday shows, but workers' share of costs continue to skyrocket. The average health care rate increase for mid-sized and large companies was 3.2% this ...
 

Health care burden compounded by surprise medical bills

Sun Sentinel - ‎12 hours ago‎
Small businesses and families across Florida are feeling the enormous burden of increased health care costs thanks to the Affordable Care Act. Unfortunately, rising premiums and higher deductibles are just the beginning of the problems. Floridians who ...

Fitch warns that Portuguese government debt is at risk of downgrade ...

City A.M.-22 hours ago
A major ratings agency has said today that Portugal's government debt is at risk of losing its already mediocre credit rating if the Socialist-led coalition is ...

Fitch downgrades Kyiv's rating to default level

Ukraine Today-3 hours ago
UNIAN: International rating agency Fitch said it had downgraded Kyiv's ... As part of this decision, the Kyiv City Council suspended debt payments under two ...

Fitch Assigns First-Time Ratings of 'BBB-' to Sao Paulo, Brazil ...

MarketWatch-17 hours ago
Sao Paulo has been prohibited from raising new financial debt since 1998, since ... diverge from that calculated by Sao Paulo a downgrade would be warranted.

Social Security: The Long Slow Default

Western Journalism-19 hours ago
Social Security has long been sold to the public on the notion that what a .... So, to address its insolvency issue, the federal government simply responds by ...

 

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
picture of the TPP
Photo of 5,554pg TPP on Sessions’ desk. B/C of Fast-Track, it can’t be filibustered, amended or given a treaty vote.
CTZkwArWEAAQASD.jpg:small

what are chances anyone in Congress will read that before they vote on it?

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
re Wholesale Inventories

Wholesale Inventories Have Never Been Higher Relative To Sales, Ever

this is a bit of a statistical misdirection...wholesale sales include a lot of gasoline and fuel oil sales, but there are very little wholesale inventories of either...thus when the price of fuel is cut in half, wholesale sales in dollars drop several percent, but inventories barely budge...thus the ratio of inventories to sales discussed here rises, and everyone panics...

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Quote of the Day
A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear.
Marcus Tullius Cicero
 
Afridev's picture
Afridev
Status: Silver Member (Offline)
Joined: Oct 11 2013
Posts: 128
'Divide and rule' is so...

'Divide and rule' is so... pre-2000s.

The new approach is 'Submerge and rule', get them bogged down into the details about the pennies, and the 1,000 dollar gap flies through no problem.

I'm only half joking here, the approach seems to be in use everywhere...

Either the submerged play by the rules, and get lost, or they say 'stuff it' and are lost to the important points that were embedded. You lose anyway you turn it...

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