Daily Digest

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Daily Digest 1/21 - Even Oil Can’t Save Saudi Arabia, Plastics Will Soon Outweigh Fish in World's Oceans

Thursday, January 21, 2016, 10:04 AM

Economy

Crude Oil Price Crash Triggering Global Instability, Trend Forecast 2016 (Adam)

The crude oil price collapse of 2015 has continued into 2016 with the price of oil plunging to a 12 year low of just under $30 per barrel as a consequence of a perfect storm of falling demand, primarily due to the slowing Chinese economy and relentlessly rising output that is not just limited to the usual OPEC suspects but is as the natural consequences of the fracking boom that continued to ripple out from the US to across the world during 2015.

FBI: Violent Crime Rose In First 6 Months Of 2015 Over 2014 (thc0655)

The statistics provide some numerical support for assertions, voiced in the last few months by local and federal law enforcement officials, of a crime spike in 2015. But the snapshot is widely understood to be incomplete since the data from local law enforcement is reported to the FBI voluntarily, and not all agencies participate.

Corporate Socialism and Hollowing of America (Wilson S.)

The close connection between the US government and the financial sector through the operations of the US Federal Reserve is perhaps well understood. But less well understood is how corporate socialism has been operating less blatantly by the government over the decades, not just recently. For example, nearly 6 percent of GDP collected annually in indirect taxes comes substantially from import duties, which protect corporations from foreign competition at the expense of consumers. American corporations can charge the consumers more than otherwise for their products – an outcome which would be contrary to advice from neoclassical economics.

Gold Deficits and T-Bond Fantasies (GE Christenson)

President Nixon in 1971 thought long and hard about “closing the gold window” and decided against it, in spite of heavy lobbying from his powerful banker friends. Instead he ordered that all excess expenditures be funded from the US gold stored at Fort Knox instead of from borrowed dollars. Trucks left Fort Knox and the other gold depositories every week, drove to New York, and delivered gold to the foreign and domestic creditors of the US who had accepted dollars in trade for goods, oil, foreign aid, services, and military support. This continued for a very long time and the government eventually ran balanced budgets. (Remember – fantasy!)

Silver Hitting Major Support (Taki T.)

Silver is forming a triangle, and it is hitting support right now. Moreover, the resistance line (in purple) is very close to hitting support. In other words, silver has to choose a direction pretty soon. Given this chart formation, we believe that 2016 will be the year in which the market will have to make a choice, and basically there are only two options: break out or break down.

"If Assets Remain Correlated, There'll Be A Depression": Ray Dalio Says QE4 Just Around The Corner (boomer41)

The rationale is simple: the trillions in fungible, excess cash the Fed unleashed in the wake of the crisis has driven asset prices into bubble territory and at this juncture, there’s essentially nowhere to go but down.

The World’s Most Famous Case of Hyperinflation (Kevin J.)

In the two years past World War I, the German government added to the monetary base of the Papiermark by printing money. Economic historian Carl-Ludwig Holtfrerich said that the “lubricant of inflation” helped breathe new life into the private sector.

The mark was trading for a low value against the dollar, sterling and the French franc and this helped to boost exports. Industrial output increased by 20% a year, unemployment fell to below 1 percent in 1922, and real wages rose significantly.

If You Are A Silver Investor, You Have To See These 3 Charts (Kevin J.)

While many precious metal investors belly ache about the falling paper price of gold and silver, demand for the physical metals continues to rise…. especially silver. In 1996, total Silver Eagle sales for the year were 3,466,000. Now compare that to the 4,950,000 Silver Eagles sold in the first half of January. We must remember, Silver Eagle sales in 2016 started on January 11th. So, in just six working days (this Monday was a holiday), the U.S. Mint sold 43% more Silver Eagles than all of 1996.

A Glimpse Of Things To Come: Bankrupt Shale Producers "Can't Give Their Assets Away" (PBD)

Indeed, we’re already hearing the not-so-distant rumblings of this oncoming default freight train as JP Morgan raises its net loan loss reserves for the first time in 22 quarters, Wells Fargo discloses $17 billion in “mostly” junk energy exposure, and Citi dodges questions about the reserves it’s holding against a $58 billion energy book that the bank may or may not be marking to market depending on what the Dallas Fed "didn’t" tell banks earlier this month.

Even Oil Can’t Save Saudi Arabia (Tiffany D.)

Right now, the structure is a stubby concrete skeleton rising from the desolate sands outside the Red Sea port city of the same name. The Saudis created an investment fund worth $2.2 billion to build the tower, plus another $20 billion to develop the larger project, “Jeddah Economic City,” at the base of the tower.

Is This The Riskiest Oil Stock In The World? (Josh O.)

Petrobras faces a variety of problems that will likely hold the company back for years and keep risk averse investors away from the story. First the company has a massive debt load – more than $125B in total. The past decade has been a relatively good time for companies to hold debt as funding costs were low and bond investors were willing to snap up virtually any new offering.

100 Geeks Open-Source Prototyping a Fossil Free, Zero Waste Society (Kevin J.)

The goal of The Self-Reliance Catalog is to help you know better what is worth getting and where and how to do the getting, whether that “thing” is a plant, a tool, a book, or even a design for a home or greenhouse.

Report Warns that Plastics Will Soon Outweigh Fish in World's Oceans (PBD)

The study—The New Plastics Economy: Rethinking the future of plastics (pdf)—introduced at the opening day of the WEF's annual summit in Davos, Switzerland is the first of its kind to comprehensively assess global plastic packaging flows. The report makes an economic case for what it calls the "New Plastics Economy," described as "a new approach based on creating effective after-use pathways for plastics; drastically reducing leakage of plastics into natural systems, in particular oceans; and decoupling plastics from fossil feedstocks."

Gold & Silver

Click to read the PM Daily Market Commentary: 1/20/16

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."

9 Comments

saxplayer00o1's picture
saxplayer00o1
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Posts: 4237
Citigroup cuts global economic growth forecasts

 

Citigroup cuts global economic growth forecasts

Reuters-6 hours ago
U.S investment bank Citigroup cut its growth forecasts for the world economy on Thursday, and said that risks of a global recession were increasing.

International Monetary Fund cuts growth forecasts for next two years ...

The Guardian-10 hours ago
International Monetary Fund cuts growth forecasts for next two years – video ... the fall in commodity prices such as oil and predicts global economic growth will ...

Citi Economist: The U.S. Is the Least Prepared Major Economy for ...

Bloomberg-2 hours ago
Buiter doesn't see much value in further traditional monetary easing to boost economic growth, and suggests that the world needs to rediscover fiscal policy, ...

Christine Lagarde Says Downside Risks Challenge Global Growth ...

Wall Street Journal-21 hours ago
Ms. Lagarde, who was speaking at the World Economic Forum here, identified three key threats: falling oil prices; slowing economic growth in China; and an ...

Moody's: Slower growth and capital flow volatility point to a more ...

Moodys.com (press release) (subscription)-5 hours ago
Singapore, January 21, 2016 -- Moody's Investors Service says that slower economic growth in Asia, coupled with heightened volatility in capital flows, will ...

PBOC Makes Aggressive Cash Injection

Wall Street Journal - ‎12 hours ago‎
SHANGHAI—China's central bank pumped hundreds of billions of yuan into the country's financial system Thursday, its latest move to pre-empt a holiday-induced funding squeeze at a time when capital has been leaving the country at a rapid rate.

China hemorrhaged $676 billion last year

WDBJ7 - ‎5 hours ago‎
Outflows can put the yuan under pressure, pushing it down even more and increasing pressure on the central bank to act to support the currency. China has already been intervening in currency markets -- in the third quarter last year, the government ...

Some Shanghai Banks Said to Curb Individual Forex Purchases

Bloomberg - ‎13 hours ago‎
“Everybody has been perched on the edge of their chair waiting to see a capitulation day, in which you get a really steep flush in equities,” said Mark Luschini, chief investment strategist in Philadelphia at Janney, which oversees about $68 billion ...

Foreign Banks Reduce Lending to China

Wall Street Journal-6 hours ago
Foreign banks cut their lending to Chinese borrowers by $119 billion during the ... crisis, and in response to the eurozone's subsequent government debt crisis.

Half of Japan firms see no escape from deflation this year: Reuters poll

Reuters-17 hours ago
The central bank embarked on unprecedented monetary easing three years ago, vowing to create inflation. Recent consumer price levels have been mostly flat ...

BOJ's Kuroda says no plan to adopt negative rates now

Reuters - ‎11 hours ago‎
TOKYO Bank of Japan Governor Haruhiko Kuroda said he is not thinking of adopting a negative interest rate policy now, signalling that any further monetary easing will likely take the form of an expansion of its current massive asset-buying programme.

Government projects larger primary deficit of ¥6.5 trillion in fiscal 2020

The Japan Times-3 hours ago
The government is expecting a bigger than predicted primary deficit of ¥6.5 trillion ($55.6 billion) in fiscal 2020, reflecting the effects of a planned exemption of ...

ECB's Mario Draghi Hints at More Stimulus in March

Wall Street Journal-1 hour ago
FRANKFURT—European Central Bank President Mario Draghi Thursday signaled that the governing council may provide more stimulus at its next meeting in ...

Malaysia Central Bank Looks to Lift Liquidity

Wall Street Journal-2 hours ago
Malaysia's central bank took markets by surprise Thursday, announcing a step to boost liquidity in the domestic financial system as deposit growth slows and a ...

Malaysia Cuts Reserve Ratio as Fund Outflows Sap Cash in System

Bloomberg-5 hours ago
Foreign investors unloaded $7 billion of equities and bonds in 2015, and were net ... Najib reiterated a commitment in January to cut the deficit this year from an ...

Brazil's Real Weakens After Central Bank Abandons Rate Increase

Bloomberg - ‎3 hours ago‎
While forecasts for Brazil's deepest and longest recession in more than a century could justify a decision to keep interest rates unchanged, the central bank didn't communicate its strategy clearly in the weeks leading up to the meeting, said Nicholas ...
 

South African growth outlook slashed but central bank to hike rates ...

Reuters-1 hour ago
Nineteen of 31 economists said the central bank would raise interest rates by 50 basis points next Thursday to 6.75 percent while 11 said the Reserve Bank ...

Ruble Plunges as Speculators Pounce on Central Bank Abstinence

Bloomberg-3 hours ago
The ruble's historic fall accelerated for a second day as speculators pounced on central bank comments that it didn't intend to intervene in the market to stem the ...

Canada slashes 2-year growth forecast

Financial Times-21 hours ago
The Bank of Canada cut its growth forecasts for the next two years, citing steep falls in ... Mr Trudeau, speaking at the opening of the World Economic Forum in ...

Bank of Canada holds rates as it awaits stimulus budget

The Globe and Mail-13 hours ago
The weak dollar and expectations of a stimulus-heavy federal budget led Bank of Canada Governor Stephen Poloz to hold the line on interest rates as he waits ...

South Korea committed to carrying out stimulus measures to vitalize ...

Korea Times-14 hours ago
South Korea's government will make all-out efforts to revitalize the economy by creating jobs, searching for new growth engines and reviving domestic demand ...

India Staring At Full-Blown Economic Crisis, Claims Congress

NDTV - ‎Jan 20, 2016‎
New Delhi: As stock markets witnessed a deep plunge, Congress today claimed that the country is staring at a "full-blown economic crisis" and wondered whether India's growth numbers projecting it as the fastest growing economy in the world were "credible.

Italy in last-ditch talks to secure EU support for its banks

Financial Times - ‎8 hours ago‎
One senior Italian official familiar with the negotiations told the FT that a deal on the so-called “bad bank” plan, which involves guaranteeing hundreds of billions of euros of bad loans weighing down banks' balance sheets, must be concluded in the ...

Is Italy the next Greece?

Telegraph.co.uk - ‎22 hours ago‎
Combined with mediocre economic growth and a worsening global economic environment, investors are increasingly twitchy. JP Morgan's analysts have warned investors to “avoid” the country's banks, while Barclays has noted that even as northern ...

A Scared World Is Taking Its Money And Running Back Home—and ...

Bloomberg-3 hours ago
Now that tide is coming back in as investors seek to repatriate funds or flock to U.S.-dollar denominated assets as a safe haven amid sluggish economic growth ...

Fears grow of repeat of 2008 financial crash as investors run for cover

The Guardian-20 hours ago
Fears that the global economy could be heading for a repeat of the 2008 ... Earlier this week, China recorded the slowest rate of economic growth for 25 years.

Spanish Impasse Deters Investors as Banks Trade at Crisis Levels

Bloomberg-9 hours ago
Spain's political impasse has emerged as global markets are roiled by concerns about China's economic growth, a slide in the price of oil and the prospect of the ...

No end in sight to coal miners' losses

Chicago Tribune - ‎22 minutes ago‎
Peabody and Arch were among the miners that raised a total of $6.4 billion of debt in 2010 and 2011, betting that prices for metallurgical coal, which is sometimes used to produce steel, would continue to rise thanks to China's growing demand to build ...

Oil producers' options dry up as price lingers below $30 per barrel

Tribune-Review - ‎12 hours ago‎
Investors are balking at companies' efforts to swap short-dated debt for longer maturities. Citi estimates exploration and production firms have $109 billion in outstanding high-yield debt maturing through 2025. Only $500 million of bonds will mature ...

Crumbling, Destitute Schools Threaten Detroit's Recovery

New York Times - ‎16 hours ago‎
Even after closing schools and reducing its work force, the Detroit Public Schools have $3.5 billion in outstanding debt, much of it from pension liabilities, according to a report this month from the Citizens Research Council of Michigan, a ...

Oil rout raises fears of Venezuela debt default

Buenos Aires Herald - ‎4 hours ago‎
NEW YORK — Slumping crude prices have investors and analysts warning of a potential messy default in Venezuela, with state-owned oil company PDVSA owing some US$10 billion in external debt payments due this year. With crude hovering around ...
 

Default risk in energy debt seen as higher than Great Recession

MarketWatch-18 hours ago
Markets are pricing in a higher default risk for the energy sector than they did at ... spreads imply that “the market is clearly expecting the default rate to pick up, ...

Junk-Bond Market Risk Gauge Stages Biggest Jump Since 2009

Bloomberg-19 hours 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, ...

Decades-old pension plan draining MBTA

Boston Herald-8 hours ago
Decades-old pension plan draining MBTA. $6M a year coming ... The T projects that it will face a $242 million budget deficit entering next fiscal year. Officials ...

Young Teachers Lose By Paying for Older Teachers' Pensions

U.S. News & World Report-4 hours ago
Pension benefits were too generous, assumed rates of return on investments too ... up for the deficit that their predecessors and shortsighted budgeting caused.
 

How a year and a half of pension progress was wiped out in just ...

Washington Post-1 hour ago
As he and Yin lay out, investment shortfalls over the third quarter of 2015 caused unfunded pension liabilities — that gap between current value and future ...
 

Moody's: Pension case poses risk for N.J.'s credit rating

Philly.com (blog)-17 minutes ago
If the Supreme Court were to overturn the freeze on COLAs, the unfunded liabilities for New Jersey's two biggest pension plans -- the Public Employees' ...

 

DennisC's picture
DennisC
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Posts: 342
Good News Friday...on Thursday

Global equity markets are off to a bad start to 2016 largely because oil's dramatic fall is confusing investors, Goldman Sachs (NYSE: GS) President and COO Gary Cohn said Thursday.

What I think the confusing part of the oil market is, everyone's relating the sell-off in oil to be an economic slowdown," Cohn told CNBC's " Squawk Box " at the World Economic Forum in Davos, Switzerland. "I don't believe the sell-off in oil is reflective of an economic slowdown."

https://finance.yahoo.com/news/goldman-coo-oil-drop-confusing-133453993....

I was pretty certain somebody, somewhere would come up with an easy to understand reason just when we needed it most.

 

KennethPollinger's picture
KennethPollinger
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Posts: 656
Never a dull moment! A Change of Pace on Weekend
 
Well, as if we do not have enough problems, NOW there is a debate about this new discovery (however tentative).
 
If you have never heard about or read Zecharia Sitchin's research on the Sumerian Civilization, The 12th Planet, and his other 13 books (I have), then all this NEW fuss and debate will not mean much to you.
 
But maybe, it will intrigue you enough to try The 12th Planet and see where YOU stand regarding Nibiru.  A nice break from the present collapsing financial scene!!
 

CREDITCALIFORNIA INSTITUTE OF TECHONOLOGY

Ninth Planet May Exist Beyond Pluto, Scientists Report

Two professors at the California Institute of Technology laid out an argument for the existence of a planet perhaps 4,500 times the mass of Pluto.

1d agoBy KENNETH CHANG

 
 
So . . . many folks are referring to the Kolbrin Bible which SEEMS related to Sitchin's research.  Must admit that I never heard about this Bible.
 
 
The Kolbrin Bible:
4 of 4 people found the following review helpful
ByPaul Smyreson October 17, 2012
First I confess that I have not read the entire book. It's enormous. but wow, wow, wow. During the time the Hebrew Bible was being lived and written, and long before, there were other historians with different observations and perspectives on what was happening. Long ago, writing was a special skill, and most people did not know how to write. Records were kept by royalty, priests, secret groups, and some of these documents were lost, or deliberately hidden, for a very long time. For example, the Dead Sea scrolls. This book is an assembly of stories and records from a variety of sources. Some are extremely similar to known stories from the Hebrew and other sources, now in museums. But new documents do surface from time to time, and we know for sure that many documents were indeed hidden, very carefully, for a long time. So, we have this book, assembled here. Take it for what it is. It's inspiring, illuminating, thought provoking, and in many cases extremely eloquent and poetic. It's a masterpiece, or more precisely, what's left of a masterpiece because the original sources are long gone. But, what is here is amazing. read it. browse through it. Think, feel. you know there's a lot more to the story of mankind.. here are a whole bunch of new pieces for the puzzle. The picture is bigger than you have thought before. Thank you Mr. Masters for being diligent and persistent, and getting this material out there so people can enjoy it and benefit from it.
 
Also reading Magicians of the Gods, by Graham Hancock, author of best seller Fingerprints of the Gods (evidence-researched).  Much about Gobekli Tepe in Turkey, 12,000 plus old monumental architecture--GREAT FUN!!  Enjoy,  Ken

 

Arthur Robey's picture
Arthur Robey
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Posts: 3936
Scandal.

Guess who is fighting for peace and brotherly lurve?

 

Hint: it's not your mob.

A leaked Russian Ministry of Defense Report indicated thatthe two US Navy boats captured by the Iranians some time ago were actually carrying a high-ranking ISIS commander, and the reported missile firing on USS Harry S. Truman by the Iranians was actually related to the event.

http://sgtreport.com/2016/01/must-read-captured-us-navy-boats-were-carry...

KennethPollinger's picture
KennethPollinger
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Posts: 656
On Being open-minded

 

Page 346 of Magicians of the Gods, by Graham Hancock:

 
"An amazing amount of credulous nonsense has proliferated around these verses in recent years on the internet, much of it deriving from the late Zecharia Sitchin's science-fiction novels, notably the Earth Chronicles
series, which he successfuly passed off to the public as serious factual studies.  I've already touched in Chapter Thirteen on Sitchin's misrepsentation of Baalbek and while I'm not saying everything he wrote was fiction--he did throw in quite some valuable and interesting facts--his overall body of work is marred by enough fabrications and fantasy to call for caution, rather than immediate, trusting acceptance, on the part of his readers."
 
CAUTION sounds reasonable but "science-fiction" novels seems like loading the dice, no?  How hard it is to be OBJECTIVE.
KennethPollinger's picture
KennethPollinger
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Posts: 656
Do you also follow CROP CIRCLES, not just EEE?

However, just maybe some of this is related to EEand E.  Especially IF it is true.

PLANET X - NIBIRU Crop Circles Tell ARRIVAL ... - YouTube

https://www.youtube.com/watch?v=_Nnz9vVg7J8
Jun 23, 2015 - Uploaded by Pete WDHCo

Crop Circles Decoded & Tell the PLANET X - Nibiru Arrival Date - Nibiru Planet X Timeline , This is ...

 

 

KennethPollinger's picture
KennethPollinger
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Posts: 656
No interest?

Oh well, I keep trying. After all it was GOLD that the 12th Planet folks needed and wanted.  For that reason they dug gold mines that went down 2 miles deep way back about 200,000-300,000 years ago--seemingly impossible and yet . . . .

Can you imagine that researchers have found over 200 UNDERGROUND cities about 10,000 years old, up to 8 levels deep, in Turkey, hewn out of ROCK!!!  Why?  Okay, I give up, back to financials, stocks, geopolitics, and Bloomberg for president!!

However, after you have made a SAFE place, accumulated enough $ and PMs, to soften the currently collapsing global system, THEN what comes next?  Build the new communities?  HOW?  Or, Study pre-history just for fun or even enlightenment?  Or what?

There have been over 10,000 crop circles since about 1980.  Who made them and what do they mean? Any interest?  

I meant this to be a day away from the usual business of everyday life, especially Monday through Friday, when the MARKET is all-important.  Ken

Arthur Robey's picture
Arthur Robey
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Posts: 3936
From left field Ken

You must give people time to adjust to things that  come in from left field Ken. Minds are like Supertankers (or Titanics), they take an awful lot of water to change course.

I would need more evidence of these underground facilities in Turkey before I touched the tiller. "Iceberg? What Iceberg?" 

It is us Apes, we grunt and get back to preening each others' hair.  Real live baboons would react instantly to an alarm cry. But we have become tame. 

Arthur Robey's picture
Arthur Robey
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Posts: 3936
Here Ken

Here is a website that seems on first blush to be well constructed. Be aware that I am speaking from a firm foundation of pure ignorance.  I have zero exposure to Sitchin's mind.

http://www.sitchin.com/

The problem that I have is where do I focus my limited attention. As much as I love new ideas,  I do have matters at hand to attend to. Therefore if someone does not bring substance to the discussion, I allow my focus to drift. 

While context is everything,  brevity please. 

“I have only made this letter longer because I have not had the time to make it shorter."
Blaise Pascale. 
Via Goodreads

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