Daily Digest

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Daily Digest 12/28 - The Year Nothing Worked, China's $1T Nuclear Plan

Monday, December 28, 2015, 10:39 AM

Economy

Paris Attacks Could Mean Big Profits For Weapons Companies (richcabot)

Financial publications attributed these gains to the increased likelihood of a ‘War on ISIS,’ something that would doubtlessly result in more government contracts for the companies supply Tomahawk missiles (Raytheon), Hellfire missiles (Lockheed), and drones (AVAV). Meanwhile, the French stock market grew slightly since the attacks, but saw declines in stocks related to tourism and travel. It is still unclear what the long-term economic effects of the attacks will be, as the entirety of the financial and political damage will take months or years to unfold.

Russia will start building 2 nuclear reactors in Iran (richcabot)

Work on the two facilities "will commence next week," state television's website quoted atomic energy agency spokesman Behrouz Kamalvandi as saying.

Iran plans to build 20 more nuclear plants in the future, including four in Bushehr.

A Bigger Brother (richcabot)

Witness is keenly aware of the evocative power of eyewitness video. The organisation was born around the same time as the infamous video of Los Angeles police beating Rodney King that sparked the Los Angeles Riots in 1991. Witness saw the enormous potential of cameras in the hands of ordinary citizens.

Be Prepared! (reflector)

The main thing about preparedness is that regardless of the emergency, for the most part, preparedness is the basically the same. The second thing about preparedness is that, it is better to prepared and not need it, than to need it an not be prepared. The third thing about preparedness is that it will do no harm. Being prepared for any emergency is like insurance. You hope that you never need it, yet you acquire insurance because you prefer the protection and peace of mind it offers. In this, you prepare for the worst, but hope for the best. You get the insurance, but hope you never need it. If you do need it – it can be priceless.

Are U.S. academics who cite WikiLeaks blackballed? (richcabot)

Professor of international politics Daniel W. Drezner hit back on July 30 in The Washington Post, arguing that there were other explanations for why the journal was not publishing WikiLeaks’ material. However, he did concede that it is possible that the “structural forces” opposing WikiLeaks were so powerful that a scholar would eschew WikiLeaks’ publications for “fear of being blackballed”.

The Year Nothing Worked: Stocks, Bonds, Cash Go Nowhere (LesPhelps)

In fact, if you judge the past year by which U.S. investment class generated the largest return, a case can be made it was the worst for asset-allocating bulls in almost 80 years, according to data compiled by Bianco Research LLC and Bloomberg. With three days left, the Standard & Poor’s 500 Index has gained 2.2 percent with dividends, cash is up less, while bonds and commodities are showing losses.

China's $1 Trillion Nuclear Plan (Tom K.)

So why build the plants? According to Greenpeace, it's because China in March decentralized authority for making environmental assessments to the provinces, which have an economic interest in keeping coal plants in their jurisdictions despite concerns over air pollution. The plants give provincial state-owned enterprises a guaranteed source of income, and building new ones raises local economic growth, an important measure by which provincial officials are evaluated, the New York Times reported in November. Importantly, coal-fired power plants provide a steady source of provincial tax revenue, while renewable-energy projects cannot be taxed.

How 19 Big-Name Corporations Plan to Make Money Off the Climate Crisis (richcabot)

It's important to keep in mind that these companies aren't rooting for catastrophic warming. In the same documents, they outline huge risks that climate change poses to humanity—and to their profits. Many of them have also taken significant steps to reduce their own carbon footprints. Still, the fact that corporations have spent so much time thinking about the business opportunities that could emerge as the world warms underscores just how colossal an effect climate change is going to have on our lives.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/25/15

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

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Repost Of Today's News

Shale's Running Out of Survival Tricks as OPEC Ramps Up Pressure

Bloomberg-7 hours ago
“Oil and gas companies are under pressure because of the Chinese statistic over the ... cash is up less, and 30-year Treasuries and commodities dropped.

Modi Seeks to Curb Gas Subsidies to Contain India Budget Gap

Bloomberg-3 hours ago
“Oil and gas companies are under pressure because of the Chinese statistic over the ... cash is up less, and 30-year Treasuries and commodities dropped.

Treasuries Draw Weakest Demand Since '09 as Central Banks Unload

Bloomberg-14 hours ago
Demand at U.S. Treasury auctions fell this year to the lowest since 2009 as Wall ... Meanwhile, China -- the U.S.'s largest foreign creditor -- is on pace to trim its ...

Negative yields on Irish Government bonds

Irish Times - ‎14 hours ago‎
More than €27 billion of Irish Government bonds are among some €1.5 billion in euro zone government debt where the yield is less than zero, indicating that markets expect European Central Bank policy to remain strongly supportive of bonds in 2016 ...
 

S. Korea's private debt hits record high in Q3

Korea Times-14 hours ago
While upgrading South Korea's sovereign credit rating to Aa2 from Aa3 on Dec. ... increase in the country's household debt could weigh on growth next year.

Private debt's ratio to GDP exceeds 180%

The Korea Herald-6 hours ago
South Korea's private sector debt reached a record high in proportion to its ... debt grew 10.4 percent on-year to 1,166 trillion won ($1 trillion) as of the end of ...
 

The War against Cash, Part II

Town Hall-7 hours ago
... so the thinking in official circles is that if you could implement negative interest rates, people could be pushed to be good little Keynesians because any money ...
 

China to refinance 11 trillion yuan local govt debt within 3 years: Paper

AsiaOne-5 hours ago
SHANGHAI - China plans to refinance the remaining outstanding local government debt as of end-2014 within around three years, the state-owned China ...
 

Which Puerto Rico Bond Defaults Next? 42% Yields Provide a Clue

Bloomberg-3 hours ago
Opinions vary on how to fix Puerto Rico's $70 billion debt crisis, but analysts, investors, credit-rating companies and even Governor Alejandro Garcia Padilla ...
 

Hong Kong's November Exports Fall 3.5% From a Year Earlier

Bloomberg-6 hours ago
About $99 billion in face value of high-yield energy bonds are trading at ... a pickup in distressed asset sales and a pickup in distressed debt exchanges,” said ...
 

Pension challenge may cost New Jersey billions

NorthJersey.com-12 hours ago

... leader who can reform the United States' fiscal problems and rein in $19 trillion in debt. ... The govern

Saudi posts record USD 98 billion deficit in 2015: ministry

Business Standard-3 hours ago
OPEC kingpin Saudi Arabia posted a record USD 98 billion budget deficit in 2015 ... 2014 income, while spending came in at 975 billion riyals (USD 260 billion), ...
 

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Irish Bonds and potatoes.

A dim light brightens. Thanks Sax.

The negative yield on short-term Government debt, effectively meaning investors are paying a small fee to lend money to many euro zone governments , reflects the massive buying of bonds by the ECB and the penalties in place for investors depositing short-term money with central banks.

this HTML class. Value is http://www.irishtime

Ireland was in trouble not so long ago. So you would expect it to have trouble selling bonds. They would have to pay a premium to entice interest.  But no.  To buy their bonds you have to pay them.  So what happened? 

The ECB is buying the bonds in competition with you at the bond  auction.  QE explained . Next question. What is the ECB using for money? The printing press. A good example of bad money chasing out good money.

Question. What is the Irish government going to do with the money? Feed the people. But they still need to pay back the ECB. But the interest rate is negative,  so this is a sweet deal for the Irish, and not such a bad deal for the ECB. They have no skin in the game. They just get to print the stuff.

Conclusion: Bad money wins.  

Comment: At least the Finn's method of giving out free potatoes is not as convoluted as the Irish method. 

No Irish jokes please.  I've had my bottom spanked because of my attempts at humor. 

EDIT : The low doc easy money, low interest loan that Ireland has taken out looks suspiciously like that subprime mortgage thing. I think that this ECB is a payday lender. But I am sure that there are better brains than mine at the Irish government. 

I think that the Irish would be better off growing their own potatoes and using their printing press  to lend money to the ECB.

One threat and I am off to Finland as a refugee. 

Another EDIT!  Now I know why the flood of refugees is allowed.  The ECB wants to stress the charities of Germany and others to breaking point,  and then they will have to go cap in hand to the payday lender.  Nothing brings a German to heel like Schuld. Guilt.

If I were the Germans I would borrow and default. There is no moral obligation to honor fraud and extortion. I'll bet  a gun was placed to Angela Merkel's head. Thanks America. 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2769
If you like your recovery, you can keep your recovery

Credit to WilliamBanzai7

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2769
Battered, bruised and jumpy

Battered, bruised and jumpy — the whole world is on edge (Financial Times)

Quote:

"The global gloom makes the international political system feel like a patient that is still struggling to recover from a severe illness which began with the financial crisis of 2008. If there are no further bad shocks, recovery should proceed gradually and the worst political symptoms may fade. The patient is vulnerable, however. Another severe shock, such as a major terrorist attack or a serious economic downturn, could spell real trouble."

Stockholm Syndrome anyone? Who will save us?

KennethPollinger's picture
KennethPollinger
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 653
Larry Summers will save us!!

 

Larry finally gives some time to Bernie's NYTimes Op-Ed article (which I loved!)  NY Post, today. Sorry, I can't seem to get it all in as I want.  Anyway, very worthwhile.  Maybe someone could post the link for me.  Ken 

 

 

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