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Daily Digest 2/6 - Gold For A Finite World, The Bear Mauls The Banks

Saturday, February 6, 2016, 10:48 AM

Economy

‘Big Short’ Guy Says China’s Banking System Is Near Implosion (Aaron M.)

The premise of Bass’ bet goes like this: China’s banking system has grown to $34.5 trillion, equal to more than three times the country’s GDP. The country is due for a loss cycle as cracks begin to show in its economy.

Kiev estimates loss from trade war with Moscow at $1.1bn a year (richcabot)

In December, Russian President Vladimir Putin signed a decree to suspend the free trade treaty with Ukraine, starting this year. He said Kiev’s move to open its borders to the EU compromises Russian interests and economic security. Moscow is concerned that without such a barrier, Ukraine could illegally supply embargoed European goods to Russia.

Study: The Trans-Pacific Partnership Will Cost US a Half Million Jobs, Drag Down GDP (richcabot)

It noted, however, that this would not be unique to the US - that new income going to workers in all TPP signatories is expected to drop as a result of the deal, according to the analysis, widening the gap between the global rich and poor.

The Tufts researchers also found that while the US job market is projected to take the biggest hit, the TPP would lead to 771,000 job aggregate losses over the next ten years in all member nations.

Chamber of Commerce Lobbyist Tom Donohue: Clinton Will Support TPP After Election (richcabot)

In 2012, Republican presidential candidate Mitt Romney was pilloried when a senior campaign adviser suggested that Romney would "hit a reset button" after the primary was over. "It's almost like an Etch A Sketch. You can kind of shake it up, and we start all over again."

But now TPP lobbyist Tom Donohue is saying there's going to be an "Etch a Sketch" on the TPP after the general election in November.

Steve Forbes Speaks Out on the Presidential Race, Fed Recklessness, and Gold (Taki T.)

The issue of sound money has been getting more attention during the GOP debates than it has in several decades. It’s quite encouraging to us at Money Metals Exchange, as proponents of precious metals ownership, to hear Cruz, Paul, Carson, and even Trump bring up issues related to sound money such as reigning in the Federal Reserve, returning to some sort of a gold standard, and adoption of other measures to get America’s fiscal house back in order. I’m guessing you probably felt like a lone voice in the wilderness when you raised these subjects during your Presidential runs. So among the current candidates, who do you think best understands the problems created by our current monetary policy and might actually do something about it if elected President?

Surely Hillary Clinton Knows Why Wall Street Pays Her (richcabot)

Clinton is surely aware that Wall Street won't give politicians millions without expecting something big in return. In a Des Moines Register interview, she justified her $250,000-per-event Wall Street speaking fees, saying, "What they were interested in were my views on what was going on in the world ... there's a lot of interest in getting advice and views about what you think is happening in the world." Does she honestly expect the American people to believe Wall Street pays her $250,000 for a one-hour talk because they want her views on the world? She most surely knows that Wall Street wants her political influence.

The Bear Mauls The Banks—-Stock Index Down 27% From 2015 High (Aaron M.)

Goldman Sachs Group Inc. sank the most since November 2012 to lead the Dow Jones Industrial Average to a 295-point loss, while Citigroup Inc., Bank of America Corp. and Morgan Stanley slid 4.7 percent or more. The KBW Bank Index declined 3.2 percent to extend its bear-market plunge since July to 23 percent.

Indonesia's growth in 2015 slows for fifth consecutive year (Michael C.)

"The fourth quarter data is a positive surprise," economist Tony Nash told the BBC.

"But unfortunately the uptick will likely be short lived. We expect deterioration in the first quarter and it'll be tough to regain growth momentum before 2017," he added.

Non OPEC Oil Production To Collapse In 2016 (PBD)

As such, total non-OPEC liquids output slipped below the year earlier level for the first time since September 2012. A production surge in December 2014 inflates the annual decline rate, but the drop is nevertheless significant should these estimates be confirmed by firm data. Already in November, growth in non-OPEC supply had slipped to 640 kb/d, from as much as 2.9 mb/d at the end of 2014, and 2.4 mb/d for 2014 as a whole. For 2015, supplies look likely to post an increase of 1.4 mb/d for the year, before contracting by nearly 0.6 mb/d in 2016. A prolonged period of oil at sub-$30/bbl puts additional volumes at risk of shut in as realised prices fall close to operating costs for some producers.

INDICATORS SHOW: Collapse Of The Paper Gold & Silver Market May Be Close At Hand (Kevin J.)

What took place in Ancient Rome, is also taking place in our global modern high-tech world. When Nixon dropped the convertibility of the U.S. Dollar into gold in 1971, a few years later… the gold futures markets started trading. No longer was the world’s reserve currency backed by gold, instead the Dollar was valued against the gold price traded on the futures exchanges.

Gold For A Finite World (Capt DC)

It is true that the United States used gold as money during the 19th century, but it was not the only form of money. Private fractional reserve banking was extensively used, and when fractional reserve banking is utilized it produces debt based money similar to the money we use today. The instability the Keynesians often refer to were the many panics that occurred during the first half of American history as Krugman points out above. The term panic is actually very apt and descriptive for these economic downturns.

Pentagon unveils budget priority for next year: Countering Russia and China (Mark C.)

The proposal reflects Carter’s attempt to broaden the military’s focus to include not just the insurgent conflicts of the post-2001 era but also “higher-end” threats from Russia and China, whose military innovation U.S. officials acknowledge has at times out-paced the United States.

A senior defense official, who like others spoke on condition of anonymity to discuss the plans, said the advances made by Russia and China do “force a competition that has to be confronted in the next decade.”

"Fukushima Class Disaster" - L.A. Gas Leak Spewing Lethal Levels Of Breathable Nuclear Material (Wendy SD)

In a breaking development that has been completely ignored by mainstream news sources, the leaking natural gas well near Los Angeles, California is now reportedly spewing lethal levels of radioactive material... In 80 days of fumes at a pace of 1,115 tons per day coming out of that ground... could carry with it 301.2 terra-Becquerels of natural radioactivity... 2.4 million times the lethal dose by inhalation.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/5/16

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."

14 Comments

Bankers Slave's picture
Bankers Slave
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Bankers Slave
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Bankers Slave
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If anyone can, and with our help, this man can!

http://worldcitizen.solutions

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Time2help
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Iran - "All current and future oil sales"

Iran sticks it to the U.S. by ending the petrodollar and selling oil in Euros (The Examiner)

Quote:

...recently unsanctioned Iran announced that all current and future oil sales will be done in the Euro currency, and not the petrodollar standard. This move comes just a few weeks after Iran was allowed to begin the selling of their oil on the open market following years of having to transact sales through the black market because of U.S. imposed sanctions.

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Nomi Prins via SGT Report

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KugsCheese
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2 Percent Inflation with Starting Value = 100

Tell Yellen to look at this:

So if the FED policy is to never have deflation then a $ crisis is guaranteed at some point.  And of course real inflation is closer to 6%-7%.  A real money system does not need inflation, inflation is a phenomenon of a fiat money system.

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Time2help
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Same same
KugsCheese wrote:

Tell Yellen to look at this:

So if the FED policy is to never have deflation then a $ crisis is guaranteed at some point.  And of course real inflation is closer to 6%-7%.  A real money system does not need inflation, inflation is a phenomenon of a fiat money system.

Just a bigger "pump and dump" scheme.  If the curve reminds you of one of many market peaks over the years...that's because it's a similar phenomenon. Just at the higher currency level versus market level. Bubbles on top of bubbles...

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thc0655
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Petrodollar: the beginning of the end

I think we are at the "leaning-groaning-snapping" stage of the collapse of the petrodollar.  Slowly at first, then all of a sudden.  Look out below!

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thc0655
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We may not know many of them, but people ARE waking up

https://www.sovereignman.com/trends/thirteen-years-ago-my-life-changed-forever-18644/

Thirteen years ago my life changed forever.

Colin Powell, then US Secretary of State and the most credible person in George W. Bush’s cabinet, made the case for war in Iraq on February 5, 2003.

As a young military intelligence officer at the time, watching from a makeshift army base in Kuwait not far from the Iraq border.

Back then I was a true believer, trusting that the government was a force for good “making the world safe for democracy. . .”

But that night it all changed.

Powell told the world unequivocally that Iraq had weapons of mass destruction, an assertion that history has proven categorically wrong.

But within the intelligence community, many people knew the appalling truth immediately.

That night it became clear to me that the government was lying and that the whole case for war was being fabricated.

It was crushing, like finding out everything I’d been told throughout my life was total bullshit.

So for the first time, I broke out of the spell and began questioning. Everything.

I started learning about the extraordinary political power of the military industrial complex that President Eisenhower warned about.

That led me to the fraud of many previous wars going as far as the Mexican War in 1845, one deeply criticized by Abraham Lincoln himself.

That led me to the Constitution, to which all military officers swear an oath to support and defend…

… and it surely didn’t seem like supporting or defending the Constitution in waging an ill-conceived, illegal war.

Needless to say I couldn’t talk to my professional colleagues. Everyone was so gung-ho, I felt like an outcast.

When I returned home, things didn’t improve.

While I was away the country had noticeably turned into a police state.

Yet people seemed oblivious to the change, drinking in the propaganda like a spiked punch bowl...

So no matter what happens or how crazy things get, I know I’ll be OK.

For years I’ve called this my “Plan B”.

I know I won’t be worse off for being able to grow my own organic food, holding some savings in a well-capitalized bank outside of my home government’s jurisdiction, or keeping some physical gold and cash.

Having another passport gives me more freedom to live, work, and travel.

Legally reducing my tax burden helps me vote my conscience with my dollars and put my money where my mouth is.

I’ve learned that all of these steps make sense no matter what happens. Or doesn’t happen.

But should the negative trend in freedom and global finance get worse, I know I’ll be OK.

This confidence has allowed me to focus on all the incredible opportunities I’ve seen.

Institutions that have existed for centuries are now being disrupted by digital technology.

Banking as we know it, for example, is finished thanks to digital technology.

The digital age is even changing the way we organize ourselves as a society.

Geography no longer matters, and nearly everything is global.

A billion people are rising into the middle class in Asia and Africa. Countries are emerging from war and isolation. Wealth and power are shifting.

These extraordinary changes bring extraordinary opportunity.

So as crazy as things are, I think this is an incredibly exciting time to be alive.

I’m grateful to be active in a time that future scholars will likely regard as one of the most tumultuous and revolutionary in history.

And I’m grateful for having started the philosophical journey that began thirteen years ago today.

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thc0655
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Red pill, blue pill

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Arthur Robey
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Russia turning inward?
 
 
A Russian Lower House MP has sent a proposal to the minister of economic development to stop oil exports totally and introduce reforms allowing the country to get rid of its “resources addiction,” and develop an independent, strong industry.
 
“Today, we must gather our courage and declare that we are abandoning the principle that prioritizes oil exports to international markets,” MP Oleg Pakholkov (Fair Russia) wrote in a letter to the minister, Aleksey Ulyukayev. “We must begin to turn the development of our economy inward. Many times Russia has proven its ability to rise from the ashes. The state needs reforms oriented on [the development of] internal economy and we have our own resources to achieve this,” he added.

https://www.rt.com/politics/331389-ruling-party-mp-proposes-ban/

That would be like a pusher using all his own stuff. The junkie will get violent. But the decision is not digital. It is analogue,  from fully on to fully off. The pusher can moderate the junkie's behavior. 
Yes.  That would work. 
No it won't. 
Feedback loop failures (like the price/demand feedback for oil) failure begins with small perturbations that develop into wild oscillations. From fully open to fully shut. 
That is what we are watching now. The oil valve is fully open. Prices are unnaturally low. Soon the valve will snap shut. 
 
Good luck Russia trying to control the behavior of the junkie in such an environment. 
Arthur Robey's picture
Arthur Robey
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Swedish Police

Last month, Svenska Dagbladet also reported on a directive that police were not to give descriptions of refugee criminals involved in “everything from minor traffic accidents to serious crimes like robbery, abuse and murder” so as not to appear “racist”.

http://www.redicecreations.com/article.php?id=35215

 

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Arthur Robey
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Dr. Edgar Mitchell, RIP hero.

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sand_puppy
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Edgar Mitchell, Terry Hansen

I appreciate Arthur posting the 16 minute interview with Edgar Mitchell, above.  My life has been enriched by Edgar Mitchell's writing and work.

Edgar Mitchell was a test pilot, aviator and astronaut.  With the Apollo 14 mission he walked on the moon for a total of 9 hours.  On the trip home he was staring out the window of the space craft and had the experience of knowing "with absolute certainty" that everything is a part of a harmonious whole, and that the whole is aware.

He returned to earth and asked academics from India what he had experienced and found that it had a name:  nirvikalpa samadhi.   His attentions became interested in the field of consciousness and founded the Institute of Noetic Sciences.

You develop an instant global consciousness, a people orientation, an intense dissatisfaction with the state of the world, and a compulsion to do something about it. From out there on the moon, international politics look so petty. You want to grab a politician by the scruff of the neck and drag him a quarter of a million miles out and say, ‘Look at that, you son of a bitch'.

— Mitchell, describing his experience of seeing the Earth from the Moon.[8]

Mitchell grew up in Artesia, New Mexico, which is just a short distance from Roswell.  A funny thing happened:  military people, near the end of their lives, sought him out and spilled their hearts of stories that they had been unable to tell anyone else.  They told him of crashed space craft, recovered bodies of extra-terrestrials, and secret programs whose goals were to back-engineer the technologies of the recovered crafts.

Though Mitchell himself reports never personally seeing a UFO, he is absolutely certain that they exist.

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Mitchell publicly expressed his opinions that he was "90 percent sure that many of the thousands of unidentified flying objects, or UFOs, recorded since the 1940s, belong to visitors from other planets".

Terry Hansen (a relative of an anonymous peakprosperity.com member, by-the-way) has written a book on the way that the media handles the complex topic of UFO sightings. The primary technique is to simply omit them.  Hence the name of his book: The Missing Times.

How is it that the New York Times is permitted to be the arbiter of "what is true" in our collective thinking?  This is a very important question that Edgar Mitchell and Terry Hansen help to face.

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