Daily Digest

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Daily Digest 4/5 - The Fort Knox Paradox, What Are The Panama Papers?

Tuesday, April 5, 2016, 10:27 AM


What are the Panama Papers? A guide to history's biggest data leak (jdargis)

The Panama Papers are an unprecedented leak of 11.5m files from the database of the world’s fourth biggest offshore law firm, Mossack Fonseca. The records were obtained from an anonymous source by the German newspaper Süddeutsche Zeitung, which shared them with the International Consortium of Investigative Journalists (ICIJ). The ICIJ then shared them with a large network of international partners, including the Guardian and the BBC.

Panama Papers: The Threat to Your Offshore Assets (Tiffany D.)

Some writers adopt a blanket approach to this issue, condemning all revelations of this nature as an egregious infringement of personal privacy. Not me. I think it’s perfectly justified to publicize the fact that politicians and officials have sums stashed offshore that they could not possibly have earned from their taxpayer-funded salaries. For example, one of the clients named in the Panama papers is a 20-something nephew of South Africa’s president, Jacob Zuma, who has just been effectively “convicted” of corruption by that country’s Supreme Court. As a South African taxpayer, this is news I want to hear.

Panama Papers Leaker: ‘I Want to Make These Crimes Public’ (jdargis)

Obermayer didn’t know it yet but this clandestine approach was entirely justified. The anonymous source was about to expose some of the most closely held secrets of the world’s most feared and powerful men. Pissing off Vladimir Putin, Bashar Assad or the King of Saudi Arabia individually would make a sufficiently daunting opponent, but close friends or relatives of all three of them are listed in an unprecedented leak exposing the innermost financial workings of their families.

Epic Battle Rages on: 'Ali-Frazier' in the Crimex Pits (Kevin J.)

Today's NFP Report was yet another case of the U.S. services sector composed of waiters and bartenders and burger-flippers all conspiring to allow the U.S. stock market to magically shrug off a 100+ point down opening by way of a 200,000-plus jobs number that has everyone buzzing, including the Bullion bankers who decided to smash gold down to $1,210 before a reversal in the USD set up the bounce. The HUI has beaten back the raid beautifully and is actually up on the day, which reminds me of something that I wrote back in December: "Gold could stay at $1,100 for the next six months while the HUI doubles because gold and silver mining companies have, on a fundamental basis such as price-to-book, price-to-cash-flow, price-to-earnings, and market-cap-per-ounce-of-gold basis, NEVER been this absurdly undervalued EVER."

US Manufacturing Jobs Have Rebounded... Back to Pre-WWII Levels (Chris H.)

Turns out during the great recession of '09-'10, manufacturing jobs fell to a low of 11.3 million and have now rebounded to 12.3 million. The present 12.3 million manufacturing jobs is the same # the US had as of July 1941 prior to the US entrance to WWII and a massive manufacturing mobilization...and the working age US population has more than doubled since pre-WWII. Manufacturing employment peaked in 1979 at 19.6 million and has generally been falling since.

The Fort Knox Paradox (GE Christenson)

Current policy seems to be “don’t ask, don’t tell” because the answer might be disconcerting, might destroy the narrative that the US gold still exists, and the revelation of missing gold might encourage other embarrassing questions...

Will You Sprint, Stroll or Stumble Into a Career? (jdargis)

The difference between the “boomerang generation” of the 1960s and 1970s and now is that manufacturing was still the foundation of the economy, allowing more than one pathway to solid middle-class jobs. The 1970s marked the last full decade when a large slice of the population didn’t need a college degree for financial success. The recession of the early 1980s effectively killed off manufacturing, and with the next decade’s technology revolution, the wage premium for attending college started to speed up, turning into a runaway train. In 1983, the wage premium — how much more a typical bachelor’s degree recipient earns compared to a high school graduate — was 42 percent. Today, it surpasses 80 percent.

Bankruptcy Rout Looms Despite Impressive Productivity Gains In U.S. Shale (Josh O.)

The reason that U.S. oil production has not fallen more is remarkable efficiency gains. Occidental Petroleum described a series of measures they have taken that have reduced the time it takes to complete a well by up to 50 percent, which could enable it to drill the same number of wells each month using half the number of rigs. Other innovations are allowing much more oil to be produced from each completed well. Decker, Flaaen, and Tito (2016) note that the average new well in the Bakken produced 200 barrels/day in 2007. Last year the number was 400 b/d. However, it remains true as ever that production from an average new well will have fallen off by half within a year of operation.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/4/16

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."


saxplayer00o1's picture
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Posts: 4260
ECB Central Bank Quote Of The Day

The ECB Explains Why Central Banks Can't Go Bankrupt in a Footnote

Bloomberg-4 hours ago
"Central banks are protected from insolvency due to their ability to create money and can therefore operate with negative equity." Central banks ...


Tall's picture
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Posts: 564
I have stopped using products containing palm oil

Because of the destruction of the Indonesian forests in order to produce it. 

NY Times highlights one group of palm oil victims- endangered orangutans:




thc0655's picture
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Posts: 1744
Town passes ordinance prohibiting gardens in front yard


A family in Sugar Creek, Missouri grew the beautiful vegetable garden in the photo above.

They’ve been given four days to tear out the entire garden or face a fine.

Why? Because it is in their front yard, and city officials and a few neighbors don’t like it.

Nathan Athans said he planted the garden in his front yard because it gets optimal sunlight. His backyard only gets sunshine for about two hours per day, and only in certain areas...

Last summer, the city cited Athans for weeds in his garden, and he complied with the order to clean things up, and paid the fine.

But now, the city has passed a shiny new ordinance – one that Athans believes is part of a witch hunt against him...

Unfortunately, Athans isn’t the first to be subjected to harassment over growing his own food. People have been charged with crimes, threatened with jail time, and had their property destroyed for growing gardens in their own yards.

Remember, in the US, you never truly own anything.

rjs's picture
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Posts: 445
question on the Panama papers

does it strike anyone odd that these files implicate everyone from Arab Royals to Assad to Chinese President Xi and just about everyone who's ever met Putin but not one American banker or politician?

does it make sense that all those people from all around the world would contact the same two guys in Panama to handle hiding their supposed ill-gotten stash?
Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1988
it makes sense

rjs, it makes sense if this article on ZH is correct.

Question aside about who it is that gets to decide which "innocent private individuals" are to be left alone, Wikileaks clearly did not like being characterized as conducting "irresponsible" journalism - and to the contrary, many in the public arena have called for another massive, distributed effort to get to the bottom of a 2.4TB treasure trove of data which a handful of journalists will simply be unable to dig through - and moments ago, on Twitter, accused the ICIJ of being a "Washington DC based Ford, Soros funded soft-power tax-dodge" which "has a WikiLeaks problem."

Moments later, in a subsequent tweet it added that the "Putin attack was produced by OCCRP which targets Russia & former USSR and was funded by USAID & Soros."

And so, a new contest is born: one between the "old" source of mega leaks, and the new one. We wonder if and when Edward Snowden and/or Glenn Greenwald will also chime in.

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