Daily Digest

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Daily Digest 2/7 - Weak Jobs Report Not Weak Enough For Stocks, Why Are Americans So Angry?

Sunday, February 7, 2016, 11:29 AM

Economy

A Key Technical Indicator Just Rang The Bell On The Cyclical Bull Market (Aaron M.)

While the primary topic of Albert Edwards’ most recent note is the question how long China can sustain its FX intervention before tapping out and letting the hedge funds win with their short Yuan bets once total reserves drop below the critical redline of $2.7 trillion (the answer incidentally is between 5 months and 10 months assuming monthly reserve burn rates of $130BN to $60BN), we will skip that part as we have discussed it extensively in the past, and instead will fast forward to some chart porn by the SocGenarian.

22 Signs That The Global Economic Turmoil We Have Seen So Far In 2016 Is Just The Beginning (Aaron M.)

The global economy is in crisis, and this is going to have very serious implications for the financial markets moving forward. U.S. stocks just had their worst January in seven years, and if I am right much worse is still yet to come this year. The following are 22 signs that the global economic turmoil that we have seen so far in 2016 is just the beginning...

Schiff: Weak Jobs Report Not Weak Enough For Stocks (Herman J.)

Peter Schiff is an internationally recognized economist specializing in the foreign equity, currency and gold markets. Mr. made his name as President and Chief Global Strategist of Euro Pacific Capital. He frequently delivers lectures at major economic and investment conferences, and is quoted often in the print media, including the Wall Street Journal, New York Times, Barron’s, BusinessWeek, Time and Fortune.

As Flint Fought to Be Heard, Virginia Tech Team Sounded Alarm (jdargis)

Siddhartha Roy, a doctoral student from India, held up a bottle of yellow-tinted Flint water. The team’s role, he told the crowd, was “essentially validating what citizens had been saying for months.” That validation was so important to the increasingly desperate people of Flint that one resident hugged him when he heard that the Virginia Tech scientists had indeed confirmed that the water was contaminated.

Why are Americans so angry? (jdargis)

Candidates have sensed the mood and are adopting the rhetoric. Donald Trump, who has arguably tapped into voters' frustration better than any other candidate, says he is "very, very angry" and will "gladly accept the mantle of anger" while rival Republican Ben Carson says he has encountered "many Americans who are discouraged and angry as they watch the American dream slipping away".

Democratic presidential hopeful Bernie Sanders says: "I am angry and millions of Americans are angry," while Hillary Clinton says she "understands why people get angry".

Insiders: Bernie scored in debate with Wall Street slams (jdargis)

Some Democratic insiders said while that part of the debate was fought on Sanders’ terrain, he failed to make the connection that Clinton would do the bidding of the moneyed interests he rails against.

“When you boil this down to the basic question of whether she has delivered anything for these fees/contribution, it becomes clear that there is no ‘there’ there,” said a New Hampshire Democrat. “His attack falls apart when you discuss it beyond sound bites.”

Whatever Happened To Peak Oil? (PBD)

All this had been discussed at great length back in the 1970s, when the United States hit its own all-time production peak and began skidding down the far side. The issue of peak oil got swept under the rug during the Reagan era and ignored by almost everyone thereafter; by the time the alarm was finally sounded again in the late 1990s, it was painfully clear that most of the time that would have been needed to get ready for peak oil had already been wasted. The result, according to most serious peak oil researchers at that time, would be a traumatic era of economic, political, and cultural turmoil in which a global civilization used to depending on oceans of cheap abundant crude oil got squeezed by steadily decreasing supplies at steadily soaring prices. That was the peak oil standard scenario.

Cover Crops, a Farming Revolution With Deep Roots in the Past (jdargis)

Mark, 60, and his two brothers, together with assorted sons and sons-in-law, run Anson Farms, a big commercial soybean and corn operation in Indiana and Illinois. Concern about the soil quality of the family’s fields had nagged at him for some time. “Our corn was wilting when temperatures hit 103 degrees,” he said, and such heat isn’t so unusual in the summer. “I felt like I had a gorilla on my shoulder.” What he learned about the benefits of cover crops gave him hope.

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."

8 Comments

thc0655's picture
thc0655
Status: Diamond Member (Online)
Joined: Apr 27 2010
Posts: 1712
Why drilling is dwindling in Marcellus Shale

http://mobile.philly.com/beta?wss=/philly/business&id=367890891

As bad as last year was for the Marcellus Shale drilling industry, 2016 is shaping up to be worse.

Several major shale-gas operators have announced dramatic cuts in drilling plans for this year. The cuts will inevitably mean less local spending on suppliers, haulers, and construction firms.

Seneca Resources Corp., the exploration subsidiary of National Fuel Gas Co., on Friday became the latest operator to tighten its belt.

Seneca, which recently operated three drill rigs in northern Pennsylvania, said it planned to cut one of its two remaining drill rigs in March. It also will delay finishing a pipeline from Pennsylvania to western New York to 2017.

"For the near term, it's prudent for us to reduce our capital expenditures and maintain the health of our balance sheet," said Ronald J. Tanski, National Fuel's chief executive.

Cabot Oil & Gas Corp., whose Marcellus operations are largely in Susquehanna County, also announced plans this week to cut back from two rigs to one. The Houston firm set its 2016 capital budget at $325 million, down 58 percent from last year.

EQT Corp., a Pittsburgh producer, said it would cut capital spending to $1 billion from $1.8 billion last year. Southwestern Energy Co. and Consol Energy Corp. earlier announced plans to halt new drilling.

Only 19 drill rigs were operating in Pennsylvania on Friday, down 65 percent in the last year, according to the weekly Baker Hughes rig count. Pennsylvania now has fewer drill rigs operating than in 2008, before the shale boom.The culprits are low energy prices, the lack of pipeline infrastructure, and the companies' own zeal for drilling in recent years. Seneca says it has 70 wells drilled but is awaiting hydraulic fracturing before they are done.

 

blackeagle's picture
blackeagle
Status: Silver Member (Offline)
Joined: May 16 2013
Posts: 229
Skills for the modern day homesteader

A (non-exhaustive) list of homesteading skills good to know. Not all of them applicable to everyone.

133 Homesteading Skills for the Modern Day Homesteader

 

 

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2259
Chris interviewed on SGT Report

I was pleasantly surprised when I checked out SGT Report to find that Chris was the guest on their most recent interview, "Take Steps NOW To Survive The Collapse — Chris Martenson", at

http://sgtreport.com/2016/02/take-steps-now-to-survive-the-collapse-chris-martenson/

Author Chris Martenson from Peak Prosperity joins me to discuss some of the necessary steps every thinking person ought to take in order to survive the global economic crisis. Chris and co-author Adam Taggart have a brand new book called ‘Prosper’ which can help us all do just that. Because as Chris notes, you can’t PRINT your way to prosperity, the Central Banks tried that, and now we stand on the precipice of complete economic failure, about which Chris says, “I don’t know how anybody can avoid it at this point…. this has been the best FAKE recovery money can buy.”

 

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2259
Nice link, blackeagle

Thanks!

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2888
sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 2036
DB down 6%, BAC down 5%, Gold UP 3.4%

Do you have your physical in hand yet?

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2888
Re: DB down 6%, BAC down 5%...
sand_puppy wrote:

Do you have your physical in hand yet?

Unfortunately no. Boating accident and all...

newsbuoy's picture
newsbuoy
Status: Gold Member (Offline)
Joined: Dec 10 2013
Posts: 324
DB New All Time Low

So, a guy  walks into a bar and sits at the bar.

He notices blood dripping onto the bar and looks up to see meat nailed to the ceiling.

"Hey bartender, what's with the meat on the ceiling?!"

bartender comes over and says, "oh1, thats a little game we play. If anyone who can jump up and touch the meat, it's a free round of drink on-thehouse. You wan'a try?"

Patron looks up at the meat looks at the bartender and says "Nah"

"oh come on, why not?" asked the bartender.

Parton says:

"THE STEAKS ARE TOO HIGH"

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