Daily Digest

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Daily Digest 1/16 - Food Prices Soar In Canada, Oil Bust Could End Dollar Domination

Saturday, January 16, 2016, 11:26 AM

Economy

Margin Rules Changes Force New Private Funding Of Public Debt (Nate)

In a matter of a few months and with almost no notice, changes in obscure regulations are being used to create a new captive market for U.S. Treasuries and agencies that is approximately equal to the total amount of federal debt purchased by the Federal Reserve over the course of many years of quantitative easing.

Canadians Panic As Food Prices Soar On Collapsing Currency (richcabot)

As Bloomberg reminds us, Canada imports around 80% of its fresh fruits and vegetables. When the loonie slides, prices for those goods soar. "With lower-income households tending to spend a larger portion of income on food, this side effect of a soft currency brings them the most acute stress" Bloomberg continues.

Don't you want to short this market like crazy? (DG)

And get the snot knocked out us in the process? Admittedly, the DJIA has made it's way into the 15's. The real question is, how long before THEY decide the DOW must be back in the 17's?

Portugal's Bank Bail-In Sets a Dangerous Precedent (Aaron M.)

At the time of those tests, the value of Novo Banco bonds rose because the capital shortfall was lower than some investors had feared, and the good bank was widely expected to be able to mend the deficit by selling assets. Instead, the Dec. 30 switcheroo means selected bondholders are footing that bill.

In Maine, Local Control Is a Luxury Fewer Towns Can Afford (jdargis)

But in northern Maine, as operating costs increased, the economy stagnated and the population aged and dwindled, a handful of struggling towns have pursued the unusual process of eliminating local government entirely.

In the West, citizens are protesting to constrain government power. And over all, Americans tend to resist ceding their local authority. But these communities are handing their governing power over to the state and the county.

Oil Bust Could End Dollar Domination (Tom K.)

The argument that the U.S. dollar is a flawed currency is gaining ground. According to commodity guru Jim Rogers, this is illustrated by a string of Quantitative Easings by the U.S. Fed, an ultra-low interest rate policy and ever-increasing U.S. debt. Demand for the U.S. dollar has remained high despite this because of the world’s reliance on it to fund crude oil purchases.

Climate change disaster is biggest threat to global economy in 2016, say experts (Terry L.)

Eide added that if enough countries decided to pursue a non-integrated approach to coping with migration it would have “profound effects on Europe’s politics and its economy”, and would have a knock-on impact on the rest of the world. “If things unravel at the core, what does it mean in other parts of the world?”

To Save Its Salmon, California Calls In the Fish Matchmaker (jdargis)

John Carlos Garza, a geneticist based a day’s drive south in Santa Cruz, has become a key figure in California’s effort to preserve its decimated salmon stocks. Using the latest genetic techniques, he and his team decide which individual fish should be bred together. At several major state conservation hatcheries, like the coho program here at Iron Gate, no two salmon are spawned until after Dr. Garza gives counsel — a “salmon mating service,” he jokingly calls it.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/15/16

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."

3 Comments

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1449
Re: Margin Rules Change Force New Private Funding Of Public Debt

So this is how QE4 will be done?  FED sells its existing US debt to private buyers adjusting to new margin rules valued at $1.3T then FED buys new US debt in that net amount?

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1631
Middle East stock markets plunging on lifting Iran sanctions

http://www.telegraph.co.uk/finance/oilprices/12104064/Iran-sanctions-Middle-East-stock-markets-crash-as-Tehran-enters-oil-war.html

Stock markets across the Middle East saw more than £27bn wiped off their value as the lifting of economic sanctions against Iran threatened to unleash a fresh wave of oil onto global markets that are already drowning in excess supply. 

All seven stock markets in the Gulf states tumbled as panic gripped traders. London shares are now braced for a second wave of crisis to hit when they open on Monday morning after contagion from China sent the FTSE 100 to its worst start in history last week

Dubai's DFM General Index closed down 4.65pc to 2,684.9, while Saudi Arabia's Tadawul All Share Index, the largest Arab market, collapsed by 7pc intraday, before recovering to end down 5.44pc at 5,520.41, its lowest level in almost five years.

 

KennethPollinger's picture
KennethPollinger
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 654
Another favorite: Gretchen

I just love this woman's weekly analysis in the Sunday NYTimes.  Also, have you noticed that many more articles are appearing in The Times concerning much of what we here talk about--maybe mainstream is finally catching on!!!

INSIGHT & ANALYSIS
FAIR GAME
Traders at the New York Stock Exchange on Friday.

Junk Bonds Go Sour, but the Question Is How Sour

Strategists say investors may be focusing too much on the role energy has played in recent declines, even as they underestimate other risks.

 

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