Daily Digest

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Daily Digest 12/17 - Why Volkswagen Cheated, Can the Fed Limit the Fallout Globally?

Thursday, December 17, 2015, 11:26 AM

Economy

Planned Putin-Erdogan summit in Russia canceled, says Kremlin (richcabot)

Moscow has imposed economic sanctions on Turkey, and Putin, clearly referring to Turkish forces, ordered his own armed forces last Friday to "shoot down immediately any target" which threatens Russian troops or infrastructure in Syria.

Erdogan wants to turn Turkey into Islamist state, bets on uneducated masses - CIA veteran (Afridev)

Well, they're having problems because they don't want to control it. They, essentially are putting a lot of pressure on Europeans by letting the refugees through - so that's one aspect of what they're thinking, and also, supplying weapons to ISIS and Al-Nusra is Turkish policy, secret policy, and in return they're able to buy the oil that ISIS is selling, and then they re-export it. The Turkish president's family is involved in making a profit from this.

The Ghosts of Nugan Hand: A New Chapter in a Long-Running CIA Bank Mystery (richcabot)

But nothing came of the inquiry. “I think it is a very pertinent question as to why nothing was done about it,” Walker was quoted as saying in Merchants of Menace: The True Story of the Nugan Hand Bank Scandal, a recent book by the Australian documentary filmmaker Peter Butt. “I think the reason nothing was done about it was the nature of the people on the board of the Nugan Hand bank. They were very senior military officials of United States of America and they certainly weren't going to be investigated by the American government.”

3 ISIS Twitter accounts ‘trace back to UK govt computers,’ claim hackers (richcabot)

The group of teenage computer experts, known as ‘VandaSec,’ have unearthed details of internet protocol (IP) addresses used by three jihadists to access Twitter accounts used to carry out online recruitment.

European Nations Throw Up On EU Plan To Seize Border Sovereignty, Impose Standing Border Force (pinecarr)

We wondered if Europe would quietly go along with this unprecedented sovereignty land grab by Brussels and Berlin, in the process admitting that the political structure of Europe has been forever changed and that Germany is effectively the new hegemon of the formerly independent states. And while the final outcome is almost preordained, because what Germany wants Germany will eventually get, the process will be noisier than expected.

Russia’s payback against Turkey over shoot-down may turn deadly (richcabot)

First, Putin could order the Russian military to shoot down a Turkish plane with air-to-ground missiles. The Russian military just deployed its advanced S-400 air defense missile system to the Syrian airbase of Hmeimim, only 18 miles from the Turkish border. This is a military game changer, with even a senior Israeli officer describing its deployment as his country’s “worst nightmare.” With a radius of 250 miles and the ability to target up to 36 aircraft or cruise missiles simultaneously, Russia now possesses the capability to take down a Turkish plane any time it wishes. It also eliminates the possibility that the West could establish a no-fly zone over northern Syria — a step long demanded by Ankara.

The Fed And Its Rate Hike (Aaron M.)

As we have warned, higher interest rates are NOT BEARISH but BULLISH for the market. Anyone who dares to peek under the rug at history for past performance will see U.S. stocks rally with higher rates. A simple correlation ALWAYS reveals rates rise with bull markets and decline in bear markets. It is just nuts the way these people talk up these events. So the Federal Reserve announced it is raising its key policy rate for the first time in nearly a decade in a vote of CONFIDENCE in the economy. For decades, the talking heads have indoctrinated a negative view on rate hikes in the vast majority and have brainwashed everyone, including the press.

Pushing Aside 401(k)'s For Mandatory Savings Plans (thc0655)

Maybe so, but the notion of employer mandates has become anathema to Republicans in Congress since enactment of the Affordable Care Act in 2010, which requires employers above a certain size to provide health insurance for their workers. The bitter political battle over the health law killed any prospect for the White House’s mandatory retirement savings proposal — the auto-IRA — which was first proposed in 2009.

Max Keiser & Egon von Greyerz discuss gold, turmoil and bad omens in the globally distorted markets (Herman J.)

Max Keiser is an American broadcaster and film-maker. He hosts Keiser Report, a financial program broadcast on RT. He presents a weekly show about finance and markets on London’s Resonance FM, and writes for The Huffington Post. Keiser invented “Virtual Specialist Technology,” a software system used by the Hollywood Stock Exchange. Prior to inventing this technology, he worked on Wall Street where he began working after graduating from NYU.

Russia’s Turn (richcabot)

Getting down to business, Russia’s words match its actions. There is growing evidence that terrorist groups in Syria have taken a real battering from Russia’s air power. The West, particularly the US, remains at loss how to react. In the meantime, Russia is creating political facts on the ground.

Youth unemployment major lag on human development, UN report says (richcabot)

Egypt, the prime example of this trend, produced 5 million new college graduates from 1996 to 2005. Yet only 1.8 million skill-intensive service sector jobs were created, according to the report. While some of those graduates are highly skilled and may find opportunities around the world in engineering, finance or business, many find there is no link between their university education and available employment slots.

Russia doubles electricity supply to Crimea (richcabot)

According to Energy Minister Aleksandr Novak, along with Crimea’s own energy resources, the peninsula now gets 1,000 MW of electricity. This meets 80 to 100 percent of the region's demand, depending on the time of the day, according to Novak. The second power hookup will allow the reconnection of Crimean factories.

In November and the beginning of December , Crimea was facing a serious shortage of electricity as a result of bomb blasts which destroyed two pylons in Ukraine on November 22.

Why Volkswagen Cheated (richcabot)

Since the mid-1970s, the EPA has introduced progressively more stringent emissions standards for light-duty vehicles, including cars, sport-utility vehicles and small pickup trucks. But the requirements for model year 2004 were among the toughest ever. The federal agency slashed the amount of nitrogen oxide it allowed cars to emit from their tailpipes by more than 94 percent—from 1.25 to 0.07 grams a mile. Nitrogen oxide is a pollutant found in vehicle exhaust and cigarette smoke that, along with carbon dioxide, the EPA heavily regulates. Pollutants from tailpipe emissions can cause premature death, bronchitis, asthma and respiratory and cardiovascular illness.

Can the Fed Limit the Fallout Globally? (Aaron M.)

The Fed cannot limit the fallout. This is a massive debt crisis at the Sovereign level. It’s just time. All our models are warning to strap yourself in tight. This ride will pick up velocity come March. For now, beware of the DEFLATIONARY collapse.

Videos: Eyewitnesses in San Bernardino: “Three Tall White Men” (richcabot)

How did they shoot at police from inside the SUV? For how long? How long would it take to fire 76 rounds with semi-automatics? This time includes replacing empty clips. We are supposed to believe that it took 380 rounds to kill them. If so, these are not sharpshooters.

The two are dead. So, there is no legal liability for naming them the killers. There is no “alleged” visible in the media. This ends all discussion. Of course they acted alone. Everyone knows this.

Gold Rises on Fed Interest Rate Hike, as Contrarians Predicted (Kevin J.)

Last week, Rob McEwen, veteran investor and executive chairman of McEwen Mining Inc., reiterated the role of low interest rates in keeping the price of gold down, "Interest rates are dragging along the floor and have forced investors and savers to desert their prudent ways and seek riskier investments in a frantic search for yield. . .Too many people believe the government can control interest rates and inflation. People are going to realize that the government is not telling us the truth about the economy, about inflation, about having the economy under control. When that happens investors will rush to diversify and put funds into gold and silver."

Gold & Silver

Click to read the PM Daily Market Commentary: 12/16/15

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."

8 Comments

Tall's picture
Tall
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Why this year's Christmas season is so angry

Yup, it’s an angry Christmas, and it’s worth thinking about why. Something has changed to create such a shift in the public’s leanings, from taking a chance on Obama’s audacity of hope to delighting in Trump’s straight-up audacity. Fear of Islamic terrorism has something to do with it. Wars in Iraq and Afghanistan that achieved approximately nothing and the stunning rise of China as a rival power have also left many Americans feeling confused and vulnerable. But the most potent fuel for Trumpism is undoubtedly the sick economy. A long stretch of underperformance has seeded mistrust in the American Dream among millions of would-be breadwinners, especially people without college educations.

http://www.bloomberg.com/news/articles/2015-12-17/why-this-year-s-christ...

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rjs
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oil, gas

just an FYI...WTI oil closed below $35 a barrel, with Brent at $37.06, near an 11 year low, while natural gas is at $1.75, the lowest ever on an inflation adjusted basis and the lowest ever for a January contract in 25 years of NYMEX trading...

cmartenson's picture
cmartenson
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Re: Oil, Gas
rjs wrote:

just an FYI...WTI oil closed below $35 a barrel, with Brent at $37.06, near an 11 year low, while natural gas is at $1.75, the lowest ever on an inflation adjusted basis and the lowest ever for a January contract in 25 years of NYMEX trading...

Yep, that's a big heaping of pain on a very beleaguered industry.  I certainly did not expect things to get this far on the downside for either oil or gas, but perhaps this is what happens when you shower an extractive industry with too much cheap financing?

There's going to be a huge number of bankruptcies in that business, even if prices magically recover from here.

Why?

Because a lot of these companies borrowed money to drill wells that were marginal at $100 oil and $3 gas, and those loans still have to be paid back...but from wells that produced the bulk of their income during a time when prices were too low to do anything but destroy capital.  Once it's gone, man, it's gone.

 

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saxplayer00o1
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$10 Trillion Later, Corporations Wake Up Today to a New Debt Era

 

$10 Trillion Later, Corporations Wake Up Today to a New Debt Era

Bloomberg-17 hours ago
In the U.S. bond market alone, companies raised almost $10 trillion since the Fed ... rates, and strain otherwise creditworthy firms that have loaded up on debt.

 

Budget deal increases federal deficit by hundreds of billions of dollars

Washington Times - ‎22 hours ago‎
The new deal combines two big bills — an agreement to extend dozens of popular special tax breaks, totaling some $680 billion in lost revenue, and a full-year spending bill, which spends $1.149 trillion on basic government operations in fiscal year ...

Spending bill adds $500B to deficit

Columbus Dispatch-10 hours ago
... limits with $66 billion in new spending for 2016 and makes permanent an array of tax benefits at a cost of adding more than a half-trillion dollars to the deficit.

Residents of poorest state's capital boil water from broken pipes

Chicago Tribune-11 hours ago
Jefferson County, Alabama, sought bankruptcy because of debt issues connected ... New Orleans needs an estimated $6.2 billion investment in its water system.

CPS' borrowing could come at steep cost, experts say

Chicago Tribune-20 hours ago
After the Chicago school board approved more than $1 billion in long-term borrowing ... CPS' debt load will reach $7 billion after it goes to market with its latest ...
 

These 20-Cent Junk Oil Bonds Show Creditors Bracing for Worst

Bloomberg-9 hours ago
The company's $4.1 billion of notes have plummeted 71 percent this year, the ... the company would sell assets and that would pay off some of the bank debt.”.

Gulf sovereigns eye record funding in bond markets

Trade Arabia-12 hours ago
Countries in the GCC are tipped to need more than $250 billion over the next two ... "This does not include debt that needs to be refinanced, so the financing ...
 

Spending slashed as Qatar prepares to run QR46.5 billion deficit

Doha News - ‎13 hours ago‎
Qatar's Emir has approved a new budget for 2016 that dramatically cuts expenditures in anticipation of the country's first financial shortfall in 15 years. Qatar plans to spend QR202.5 billion next year, which is 7.28 percent or QR15.9 billion less ...

Denmark adopts 2016 budget with more spending, larger deficit

Thomson Reuters Foundation-14 hours ago
Overall spending increased by 10.7 billion Danish crowns ($1.56 billion), including more on healthcare. The budget also provides 1.9 billion crowns more for the ...

Long-Term Projections for Social Security Under Current Law Finds ...

Sierra Sun Times-9 hours ago
In fiscal year 2015, spending for Social Security benefits totaled $877 billion, ... for benefits and administrative costs, constitute the trust fund's surplus or deficit.

Governor of Puerto Rico Warns of Looming Default Without ...

New York Times-22 hours ago
The Puerto Rico governor has previously raised the specter of default, saying in June that the island's debts were “not payable.” On Wednesday, he did not ...

Cash May Not Be So Cushy

Bloomberg-6 hours ago
... Mutual funds can safely own infrequently traded debt and promise investors easy ... to a rash of corporate defaults to a change in a nation's economic policies.

Fitch Takes Actions on Financial Institutions Following Brazilian ...

Reuters-3 hours ago
In the first group, Fitch downgraded all five banks' LT FC and LC IDRs, and if existing, senior debt ratings to 'BB+' from 'BBB-', in line with the downgrade of ...
 

Brazil's Congress Cuts Surplus Target

Wall Street Journal-4 hours ago
Brazil's debt was first downgraded to junk status in September by Standard & Poor's. The downgrade by Fitch means that a number of global funds will have to ...

Junk Bond Pullback Exposes Insurers

Wall Street Journal-4 hours ago
A run-up in junk bonds since 2009 attracted even the most conservative of investors: insurance companies. But now these insurers are among the many ...

Local Government Pension Scheme 'unsustainable', says report

Financial Times-17 minutes ago
The Local Government Pension Scheme, with more than 5m members, ... translating into a deficit of about £47bn in cash terms, with this funding hole forecast to ...

Curry: Jacksonville could become Detroit in five years if pension problems not ...

Jacksonville Business Journal - ‎7 hours ago‎
“It's crippling our ability to do what government is supposed to do,” he said. “... I'm starting to sound like a broken record.” He said the unfunded liability of the pension creates a “cash flow” problem that limits the city's ability to invest in ...

CalPERS money pit: Big change needed

Watchdog.org-8 hours ago
Modern, 401(k)-style plans for all employees would ensure that California's unfunded pension liabilities — which now total $754 billion — do not swell even ...

Teacher pensions soak up education funds

Washington Examiner-7 hours ago
In 2004, the employer cost of a public teacher pension was 12 percent of ... is payments to amortize the enormous unfunded liabilities that have come to exist as ...

Houston changes mayors but not left-wing views

OneNewsNow-6 hours ago
Beyond social issues, the incoming Houston mayor has one looming issue to tackle, the Tribune reported, which is $3.2 billion in "unfunded pension liabilities.".

6 charts show Fed's interest-rate hike may be bad news for markets

MarketWatch-5 hours ago
BAML points out that a measure of the perceived likelihood of Saudi Arabia to default on its debts, known as credit-default swaps, are on the rise, as the chart ...

Junk-Bond Funds Lose $3.8 Billion in Year's Biggest Outflow

Bloomberg-41 minutes ago
The risk premium on the Markit CDX North American High Yield Index, a credit-default swaps benchmark tied to the debt of 100 speculative-grade companies, ...

Massive Downsizing In Oil Sector Brings Acute Pain For The Holidays

NPR-14 hours ago
If they make sure employees feel they're being treated fairly during layoffs, those who remain are more likely to concentrate on doing their jobs. But Brent Smith ...

 

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Stan Robertson
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Sawing off limbs to feed pursuing wolves
cmartenson wrote:

. . . a lot of these companies borrowed money to drill wells that were marginal at $100 oil and $3 gas, and those loans still have to be paid back...but from wells that produced the bulk of their income during a time when prices were too low to do anything but destroy capital.  Once it's gone, man, it's gone.

In my work I often analyze new wells and estimate their reserves. This year I have seen a lot of new shale and tight sand wells drilled for something near ten million dollars each, but few will ever recover as much as half of that at current prices. So why do companies continue to drill them? The early high production rates of the new wells are needed for servicing their debts. Of course, this only delays the inevitable but hope for higher prices springs eternal in the minds of drillers.

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Arthur Robey
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CME Still on way plus code 9 asteroid

Due to hit 2015/12/[email protected] UTC (GMT)

 

 

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KennethPollinger
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Deserves REPOSTING: Radical Muslims

Comments, anyone?  Remember how the Jews and German people buried their heads in the sand??

But not us, hopefully.

0
Is This Possible? Radical Muslims

The KEY question:  How distinguish the radical Muslims from the so-called moderates??

With hundreds of thousands (maybe millions in the future--Grant Williams) invading Europe and other countries, how know who is who?

VERY disturbing and difficult to watch?  Be prepared, please  Not for the faint of heart.  Ken

http://cassad.net/tv/videos/616

 

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KennethPollinger
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Posts: 654
The Koran Debate

In reference to #17 above, I thought that some of you might enjoy Sam Harris's latest thoughts on the Koran issues.  I recall his A Letter to a Christian Nation (2008), wherein he predicted "A Clash of Civilizations."

Seems like we are headed that way, no?

21 of 29 people found the following review helpful
2.0 out of 5 stars helping god express himself, October 15, 2015
 
Verified Purchase(What's this?)
This review is from: Islam and the Future of Tolerance: A Dialogue (Hardcover)
Sam Harris is the best voice out there, IMO, but this is not his best effort, by far. Majid Nawas should stay in the game…and raise his. Yet, I cant think of anyone to whom I would recommend this book. Nawas’ Quillian Foundation does useful work. I read dr. Usama Hasan’s “From Dhimmitude to Democracy”http://www.quilliamfoundation.org/wp/wp-content/uploads/publications/free/from-dhimmitude-to-democracy.pdf which Nawas promotes. Yes there were voices for Islamic reform, but the prophet’s voice alas is not among them. What Nawas blasts as the “vacuous” or de-contextualized reading of the texts is what others would call the obvious, or prima facie or generally accepted reading. Examples like the Koranic prohibition of wine (does it prohibit beer?) should sensitize jihadis to the need for context. If Harris weren’t being so deferential he would make short work of this. “Kill them wherever you find them. Drive them out of the places from which they drove you. Idolatry is worse than carnage. (Koran 2 :193) Make war upon them until idolatry shall cease and God's religion shall reign supreme. (Koran 8:40)”. After you contextualize this, what does “kill them” mean? does it mean “Don’t kill them?” Pity that eg 14th century Hanbali jurist Ibn Taymiya (whose Mardin declaration Hasan praises so highly) got the context wrong: “Therefore, since jihad is divinely instituted, and its goal is that religion reverts in its entirety to Allah and to make Allah's word triumph, whoever opposes the realization of this goal will be fought, according to the unanimous opinion of Muslims… The wives of infidels must also be reduced to slavery and the possessions of infidels must be confiscated.” (Cited in Bat Yeor Islam and Dhimmitude, pp 44-45)

How about context from the 1948 Geneva convention on the Prevention and Punishment of the Crime of Genocide: “In the present Convention, genocide means any of the following acts committed with intent to destroy, in whole or in part, a national ethnic racial or religious group, as such: (a) Killing members of the group; (b) Causing serious bodily or mental harm to members of the group; (c) Deliberate]y inflicting on the group conditions of life calculated to bring about its physical destruction in whole or in part; (d) Imposing measures intended to prevent births within the group; (e) Forcibly transferring children of the group to another group.” The Koran preaches and the prophet practiced genocide (like Moses). Muslim scholars at Al Azhar in 1981 found linguist Nasr Abu Zayd guilty of apostasy inter alia for his “denunciation… of the permissibility of the ownership of slave girls, a principle considered religiously proven without doubt " (p. 16 of the judicial opinion)https://en.wikipedia.org/wiki/Nasr_Abu_Zayd. They refuse to declare Al Baghdadi an apostate. Zayd has to flee for his life, Al Baghdadi gets a free pass. So Majid, I was wondering whether I should attack my neighbor, confiscate his possessions, kill him, rape his wife and sell his kids into slavery if he doesn’t accept Islam, what do you think? Majid says “lets contextualize verse 8:40”?! Let us first agree that Taymiya preached genocide. Later we can help god express himself more clearly.

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