Daily Digest

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Daily Digest 1/18 - Gentrification X, Who Won The Democratic Debate?

Monday, January 18, 2016, 11:13 AM


Who Won the Democratic Debate? Viewers Lean Toward Bernie Sanders (jdargis)

“Bernie needed an overwhelming victory in tonight’s Democrat debate. At best, he got a narrow one. That won’t be enough to win the Dem nomination. Martin O’Malley’s biggest mistake tonight was not bringing his guitar to the podium.” — Frank Luntz, a prominent Republican pollster

A Year of Sovereign Defaults? (Cornelius9999)

Like so many other features of the global economy, debt accumulation and default tends to occur in cycles. Since 1800, the global economy has endured several such cycles, with the share of independent countries undergoing restructuring during any given year oscillating between zero and 50% (see figure). Whereas one- and two-decade lulls in defaults are not uncommon, each quiet spell has invariably been followed by a new wave of defaults.

Dozens Feared Exposed as Sierra Leone Confirms New Ebola Death (jdargis)

Compiled by a humanitarian agency that asked not to be named, the document said the victim, Mariatu Jalloh, had come into contact with at least 27 people, including 22 in the house where she died and five who were involved in washing her corpse. But its account suggested others could also be at risk.

Gentrification X: how an academic argument became the people's protest (jdagis)

This was one London council’s response to the housing crisis – to spend £5m on properties for their poorer families, hundreds of miles away, while across the borough, the Meccano scaffolds rose up for the £15bn development of Nine Elms, where most flats will cost more than £1m.

100,000 NYC School Children Face Airport-Style Security Screening Every Day (jdargis)

Almost as many New York City students run the gauntlet of x-ray machines each day as pass through the scanners at busy Miami International Airport. And the procedure is numbingly similar. Students must remove belts, shoes, and sometimes bobby pins as the wait stretches as long as an hour.

2015 wildfires burned a record-breaking 10.1 million acres (jdargis)

The burned acreage surpasses the 2006 record of 9.9 million acres, which itself was the biggest year documented since modern record keeping began in 1960 (during the 1920s through 1940s, burned acreage averaged 30 million to 50 million acres). Though more than 68,000 fires flared this summer, it was ultimately Alaska that put 2015 into the record books. More than 5.1 million acres burned up north, the state’s second largest fire season after 2004.

Forget $20 - Oil Prices At $8 Per Barrel In Canada (PBD)

Heavy oil producers are now losing money on every single barrel that they sell, even from facilities that are already up and running. Forget the fixed costs of development; just the operating costs of keeping a project online are significantly higher than the revenue that an oil sands producer would earn from selling their bitumen.

Cars And The Future (jdargis)

It’s easy to predict a future where all of these trends coalesce: electrically-powered self-driving cars, summoned from our smartphones, take us where we need to go with plenty of time to finally beat Candy Crush. After all, the trends all reinforce each other...

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."


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Asia Junk Bonds One Cent Away From 2012 Low Amid Fund Flight

Big banks brace for oil loans to implode

WDJT-5 hours ago
... is bracing for about $600 million of energy credit losses in the first half of 2016. ... That means banks can sell off assets to recover money if a company defaults ...

Brazil Analysts Forecast 7% Inflation in 2016 as Real Weakens

Bloomberg-5 hours ago
In the absence of dollar-denominated sovereign debt in Saudi Arabia, some investors use the company's bonds as a proxy because the state owns more than 70 ...

Offshore Yuan Gains as China Steps Up Defense of Its Currency

Bloomberg-14 hours ago
The People's Bank of China will impose reserve-requirement ratios on yuan .... $900 billion in 2008 on purchases of Treasuries and mortgage-backed securities, ...

Asia Junk Bonds One Cent Away From 2012 Low Amid Fund Flight

Bloomberg-9 hours ago
“The key factors that are hurting sentiment on Asian junk bonds are China's ... or 8 percentage points more than Treasuries, to own debt sold by borrowers ...

Sixty-Two People Now Have a Greater Net Worth Than Half the World's Population

VICE News - ‎3 hours ago‎
The wealth of the poorest half of the world's population — more than 3.6 billion people — has fallen by a trillion dollars (41 percent) since 2010. Meanwhile the value of ... Having a lot of debt could seriously impact an individual's well-being ...

Oil Pain Hits China as MIE Debt at Record Lows After Rating Cut

Bloomberg-10 hours ago
Fitch said MIE has 300 million yuan ($45.6 million) of debt payments due this year. ... The Saudi Arabian central bank's net foreign assets fell by $96 billion in the ...

Asian Stock Rout Deepens as Japan, Australia Bear Markets Loom

Bloomberg - ‎14 hours ago‎
“Worries about China, the Fed and global growth are likely to drive continued share market weakness and volatility in the short term,” said Shane Oliver, head of investment strategy in Sydney at AMP Capital Investors Ltd., which oversees about $115 ...

Venezuela Inflation Surges to 141% Amid `Economic War

California Turkish Times - ‎17 hours ago‎
“The important question is regardless of whether the government will announce a moratorium on debt payments,” Bank of America wrote in analysis note to clients Friday. “With Venezuelan oil ... “This year we have to spend $14 billion. They're obligations.

Venezuela decrees 'economic emergency,' reveals depth of crisis

Daily Times-16 hours ago
According to the central bank, Venezuela's current account deficit was $5.05 billion in the third quarter, hurt by the tumble in prices for its main export.

RPT-Dreams of Brazil's youth fade as student loans cut

Reuters-3 hours ago
As the economy failed to rebound, the deficit widened to a gaping 10 percent of ... of universities in Brazil privately owned, it is a multi-billion dollar business.

Mexico bank chief calls for EM monetary policy action

CNBC - ‎13 hours ago‎
Central banks in emerging markets could follow counterparts in the developed world and become "market makers of last resort", using unconventional monetary policies to try and stimulate their flatlining economies, according to Mexico's central bank chief.

Canadian Officials Under Pressure to Stimulate Economy

Wall Street Journal - ‎22 hours ago‎
The cabinet retreat marks the beginning of a daunting week for Mr. Trudeau and Mr. Morneau, as they and Mr. Poloz face calls to guide the economy through a painful adjustment to lower commodity prices the central bank says could take up to half a decade.

RPT-Rate rise calls evaporate as markets plunge, murmurs of Fed reversal

Reuters - ‎10 hours ago‎
Interest rate futures traders are already paring back their expectations of when the Fed might tighten again while several big banks this week dovishly revised their 2016 outlooks for the Bank of England, European Central Bank and Bank of Canada.

China expected to post worst annual growth in 25 years

KWCH-17 hours ago
In recent weeks, the central bank has attempted to guide the yuan lower against the U.S. dollar, a move that many analysts have interpreted as an effort to aid ...

Nigeria Inflation Rises to Three-Year High as Food Prices Climb

Bloomberg - ‎Jan 17, 2016‎
... to below $30 a barrel. Efforts by the central bank to stem the fall of the naira by stopping banks from trading dollars are blamed by some analysts for accelerating inflation by preventing businesses from being able to import all the items they ...

Japan markets BOJ action anticipated as investors unwind 'Abe ...

Nikkei Asian Review-10 hours ago
Koya Miyamae, senior economist at SMBC Nikko Securities, warned that the central bank will face "the risk of being seen as tolerating the end of Abenomics" if it ...

Emerging Energy Stocks Drop to 11-Year Low as Polish Bonds Slide

Bloomberg-5 hours ago
“The Polish downgrade was a surprise. ... pushing the premium investors demand to own emerging-market debt over U.S. Treasuries up 59 basis points to 474, ...

World NewsHollande declares economic & security 'state of emergency'

Financial Times - ‎6 hours ago‎
French president François Hollande has unveiled measures to cut persistently high unemployment and salvage his chances of re-election next year, saying the country was in an economic as well as a security “state of emergency”. The plan, which the ...

Davos Boss Warns Refugee Crisis Could Be Precursor to Something Much Bigger

Bloomberg - ‎2 hours ago‎
As the crash in commodities prices spreads economic woe across the developing world, Europe could face a wave of migration that will eclipse today's refugee crisis, says Klaus Schwab, executive chairman of the World Economic Forum. “Look how many ...

Singapore Dec exports slide as downturn in sales to ...

Reuters-13 hours ago
Last year, Singapore economy grew 2.1 percent, the weakest performance since 2009 when the trade-dependent economy was hit by the global financial crisis.

Azeri protests flag political risks of falling oil price

Reuters - ‎1 hour ago‎
Dragged down by the slump in world crude prices, Azerbaijan's manat currency has fallen by about a third against the dollar in the past 30 days, sparking public protests that could be a taste of unrest to come for other oil-funded economies. It has ...


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Mark Cochrane
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Negative interest rates? How about negative oil prices?

A small percentage of the 'production' but an eye opening development...


Oil That's Worth Less Than Nothing

Flint Hills Resources LLC, the refining arm of billionaire brothers Charles and David Koch’s industrial empire, said it would pay -$0.50 a barrel Friday for North Dakota Sour, a high-sulfur grade of crude, according to a list price posted on its website. That’s down from $13.50 a barrel a year ago and $47.60 in January 2014.

High-sulfur crude in North Dakota is a small portion of the state’s production, with less than 15,000 barrels a day coming out of the ground, said John Auers, executive vice president at Turner Mason & Co. in Dallas. The output has been dwarfed by low-sulfur crude from the Bakken shale formation in the western part of the state, which has grown to 1.1 million barrels a day in the past 10 years.


Producers outside the U.S. are also feeling pain. The price for Canadian bitumen -- the thick, sticky substance at the center of the heated debate over TransCanada Corp.’s Keystone XL pipeline -- fell to $8.35 on last week, down from as much as $80 less than two years ago.

Negative energy prices are rare but not unprecedented. Propane traded at a negative value in Edmonton, a key pipeline hub in oil-rich Alberta province, for about three months last year. Oil refineries sometimes pay people to take away low-demand products such as sulfur or petroleum coke to free up space. However, those are both processing byproducts, while oil is a raw material, according to Auers.

“You don’t produce stuff that’s a negative number,” Auers said. “You shut in the well.”

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From SGTReport http://sgtreport.com/2016/01/this-is-it-collapse-is-here-bill-holter/

Bill Holter from JS Mineset joins us to cover the unfolding global econ omic collapse. “This is it. We’re watching the meltdown. This is history being made.” Bill says.

Bill Holter makes the comment that he has never asked to do an interview before, but thought it was necessary now.

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Mark Cochrane
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That's rich.....

Today's latest on the rich getting richer....

Oxfam says wealth of richest 1% equal to other 99%

The richest 1% now has as much wealth as the rest of the world combined, according to Oxfam.

It uses data from Credit Suisse from October for the report, which urges leaders meeting in Davos this week to take action on inequality.

Oxfam also calculated that the richest 62 people in the world had as much wealth as the poorest half of the global population.


However what really caught my attention was the apologist for the uber-wealthy

The Adam Smith Institute's head of research Ben Southwood also said the data was "misleading".

"More meaningful measures show greater equality. Those in the middle and bottom of the world income distribution have all got pay rises of around 40% between 1988-2008. Global inequality of life expectancy and height are narrowing too—showing better nutrition and better healthcare where it matters most.

"What we should care about is the welfare of the poor, not the wealth of the rich," he added.

Gee, Ben Southwood says everyone got a 40% pay raise over the 20 years between 1988 and 2008. Funny thing about that pay raise, the cumulative US rate of inflation over those 20 years was 82%! Net, everyone got less than half of what they needed to just stay in place.

That giant sucking sound is your wealth disappearing upward through the government to the oligarchs running the world.



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Welfare vs. wealth

"What we should care about is the welfare of the poornot the wealth of the rich," he added."

Let's forget the first paragraph. it is pure B.S. But this last sentence, says clearly what actually matter.

The reality, as I see it is this: We all know that the 1% are sucking our wealth. We all know that inequalities were here, are here and will he here. The 1% knows that too.

What we all know too is that as long as we feel comfortable (got something to eat, got a home, got a car, got some savings, go to theater, got my iPhone, got cool shoes, got access to healthcare, etc...) we will accept this situation and be happy with it, because we are content with the "advantages" we receive. They know that. This is what they call welfare. We are not a risk to their wealth and power as long as we accept the situation as it is. This is the main reason of proxy wars: bring world resources to the places that matter to the 1%, the places where they live, the places they want to keep safe and pristine to them, because they want civil unrest to stay far away.

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why do I feel this way, Black Eagle?

It's always fun to see what's playing on the tube:
https://www.google.ca/search?ie=UTF-8&client=ms-android-rogers-ca&source... or try

: that should make you feel better.

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pinecarr wrote:

From SGTReport http://sgtreport.com/2016/01/this-is-it-collapse-is-here-bill-holter/

Bill Holter from JS Mineset joins us to cover the unfolding global econ omic collapse. “This is it. We’re watching the meltdown. This is history being made.” Bill says.

Bill Holter makes the comment that he has never asked to do an interview before, but thought it was necessary now.

i didn't hear the interview as i'm not a big fan of sgtreport, but i did read bill holter's article on jsmineset today, and was struck by this:

Folks, it is what it is and the global margin call is being issued with no hope of it being met.  The real economy is now contracting with a financial economy more leveraged and in debt than ever before under any measurement.  “Less income and less cash flow to service more debt than in all of history” … this is not fiction, it is stark reality.  Now, we must watch to see what the responses will be as the markets overwhelm all plunge protection teams, central banks and sovereign treasuries.  In plain street language, the markets are now far larger and far more disorderly than the smoke, mirrors, lies and abilities of the financial puppeteers to handle.

We will shortly be hearing individual “names” as we did back in 2008.  Names like Fannie and Freddy, Lehman and Merrill, Citi and AIG.  Once you begin to hear “names”, we will be very close to the plug being pulled on markets.  When you hear individual names it will be like blood in the shark infested waters of the speculators.  These names will be attacked to the death.  Counterparty risk will be back, first and foremost in decision making, NO ONE will be trusted.  Credit markets will begin (they already are) to seize up and the only “policy option” will be to unplug the computers!  I wish it were all fiction!


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Arthur Robey
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Billy and Warren don't impress me.
Look at their wealth in context. Context is everything. 
And look at the context. Adam's post.


Besides,  if The Mushroom is to leave this gravity well it must form a fruiting body. 



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Thanks, reflector: Re Bill Holter


My takeaway:

1) Exchange Stabilization Fund: a key part in all this. Where are all the treasuries coming in going?

2) China's gold accumulation and "Ghost city infrastructure"--WOW!  Great insight: China sees it all coming and therefore: a) get GOLD, b) build necessary infrastructure, c) dump treasuries, d) Deals bypassing the US$.

3) Mauldin's latest analysis by George Friedman on ecogeopolitics

4) Rickards and Saudis breaking the dollar peg--SOON (last night's presentation)

HOWEVER, will USA's military might keep us as TOP DOG?  After dollar collapse, then the military is the last resort, no?

UNLESS, there is a PLAN for the SDRs and IMF and one world Government (Griffin, Quigley, others).

Sorry Dave, but we do disagree.


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Arthur Robey
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The Military Conscience.

I don't think that the pink squishy things in power can rely on the military Ken. Your commander in chief purged all the Colonels who wouldn't toe the party line.

But it hasn't worked.  They were ordered to nuke one of your cities in March last year as a False Flag attempt. They refused and were quietly removed from their posts,  according to Hudes. (I cannot find the link. )

There are still quiet heroes. 

I will be even more impressed when they enforce the constitution.  After all their enemies are soft, squishy, parasite things. 

LesPhelps's picture
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Who one the democratic debate?

Unless they are talking about the real problems we face, who cares?

Time2help's picture
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Re: Who won the debate?
LesPhelps wrote:

Unless they are talking about the real problems we face, who cares?

Red - Blue. Red - Blue.

We're just here to distract you.

blackeagle's picture
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Feel which way?

The man on the right or on the left ?  wink

Looks to me this is a situation I will live in a few years (I am the guy on the right side).


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