Daily Digest

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Daily Digest 4/11 - 1790 All Over Again, The Invisible Money Makers Profiting From Oil Slump

Monday, April 11, 2016, 8:10 AM

Economy

David Cameron Releases Tax Data After Panama Papers Backlash (jdargis)

Mr. Cameron has said that he and his wife, Samantha, sold their interest in his father’s fund four months before he became prime minister in 2010 and that they had paid the full tax on the proceeds. They paid £12,497 (about $17,600) for it in 1997 and sold it for £31,500 (about $44,400), which just escaped capital gains taxes because the profits were split between him and his wife.

It's 1790 All Over Again (reflector)

Today, the fundamental flaw in the thinking of our conceited Masters of the Universe is the same as that which blinded the members of the National Assembly in France, in 1790: they are convinced that their intellectual construct, the irredeemable dollar, is far more suitable than gold for use as money.

The Extreme Sacrifice Detroit Parents Make to Access Better Schools (jdargis)

Mother and son typically arrive at University Prep Science & Math Middle School, a well-regarded charter school in the Michigan Science Center, around 7:30 a.m. and Johnson waits with her son until his classes begin at 7:50. She then makes her way back home—the same two buses—until reaching Brightmoor around 9:30 a.m. That’s about three and a half hours before she has to leave again on another four buses to return to Shownn’s school and bring him home.

Total daily journey: 52 miles, five to six hours.

A Forgotten Continent: The Hidden Truths of Africa (reflector)

...What is not often discussed is the effect the Trans-Atlantic Slave Trade had on Africa. One major consequence was that the African economies had become increasingly dependent on the slave trade, so when the Atlantic Slave Trade eventually ended in the late 19th century, African economies collapsed. Another major consequence was the deep internal conflicts that manifested as a result of the competition to provide Europeans with slaves. Families were broken up, neighboring tribes became fierce competitors and enemies, and leadership structures became untrustworthy and broken. Couple this with the fact that a large number of its male population had been displaced due to slavery, and you have a continent that is easy prey for a new form of slavery by the Europeans called Colonialism.

Austria Just Announced A 54% Haircut Of Senior Creditors In First "Bail In" Under New European Rules (reflector)

And then today, following a decision by the Austrian Banking Regulator, the Finanzmarktaufsicht or Financial Market Authority, Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG.

Closing the 'Collapse Gap': the USSR was better prepared for collapse than the US (reflector)

I anticipate that some people will react rather badly to having their country compared to the USSR. I would like to assure you that the Soviet people would have reacted similarly, had the United States collapsed first. Feelings aside, here are two 20th century superpowers, who wanted more or less the same things – things like technological progress, economic growth, full employment, and world domination – but they disagreed about the methods. And they obtained similar results – each had a good run, intimidated the whole planet, and kept the other scared. Each eventually went bankrupt.

The Invisible Money Makers Who Thrived During 2015's Oil Slump (jdargis)

Vitol hired one of the world’s largest tankers, the Overseas Laura Lynn -- a 380-meter-long vessel (about equal to the Empire State Building laid on its side) capable of carrying 3 million barrels of oil -- to store crude offshore of Dubai. Competitors including Glencore Plc prospered by hiring capacity on land from St. Lucia in the Caribbean to Saldanha Bay in South Africa.

Car makers ask US to slow down on allowing self-driving cars (jdargis)

NHTSA Administrator Mark Rosekind argued that the agency can't wait any longer before issuing guidance because self-driving technology is already hitting the road. Tesla's autopilot feature provides steering assistance to help drivers avoid accidents, for example. Issuing regulations can take years.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/8/16

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."

6 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4237
Here comes what could be the ugliest earnings season since 2009

Here comes what could be the ugliest earnings season since 2009

ECB's Bond Buying Pledge Already Stoking Credit Markets: Chart

Bloomberg-5 hours ago
... European sovereign securities tracked by Bloomberg's World Bond Indexes in ... The IMF also doesn't offer any additional leverage on Greece's calls for debt ...

IMF defends central banks' use of negative interest rates despite risks

The Japan Times-5 hours ago
WASHINGTON – The IMF on Sunday defended the use of negative interest rates by central banks in light of the “significant risks” of slow growth, while ...

Japan machinery orders fall, strong yen clouds outlook

Yahoo News-3 hours ago
"The Bank of Japan's negative interest rates have not boosted lending, and a strong yen threatens corporate profits." Orders from manufacturers fell 30.6 percent ...

February machinery orders down 9.2% on weak manufacturing sector
The Japan Times-6 hours ago

 

ECB seeks to mollify Germany after uproar over 'helicopter money'

Reuters - ‎1 hour ago‎
A storm of protest erupted in thrifty Germany after Draghi last month described the idea of "helicopter money" - sending money directly to citizens - as a "very interesting" - if unexamined - concept. Late last week, top ECB officials, including the ...

As Puerto Rico Nears Record Default, Insured Investors Rest Easy

Bloomberg-4 hours ago
With more debt than any state but California and New York, the scale of Puerto Rico's crisis is unprecedented in the $3.7 trillion municipal market.

Puerto Rico Declares Emergency Period for Development Bank

Bloomberg-3 hours ago
The commonwealth is seeking to reduce a $70 billion debt load after years of borrowing ... He won't impose a moratorium on GDB debt payments as the bank is ...

Russia's Most Important Bank Needs a Bailout

Wall Street Journal-12 hours ago
But the Russian government has pledged to hold the 1.5 trillion ruble budget deficit it ... In 2013, VEB bought the debt of a large pulp-and-paper factory on the ...

GM Korea Posts Worst-ever Net Loss of 986.8 Billion Won in 2015

BusinessKorea-13 hours ago
According to industry sources on April 10, GM Korea reported 594.4 billion won (US$515.30 million) in operating losses and 986.8 billion won (US$855.48 ...

Venezuela's Cellphone Providers Suspend International Calls

ABC News-14 minutes ago
Movistar and Spain-based Telefonica both announced on Friday that they would be cutting international service because of issues related to Venezuela's ...
 

 

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1469
Re: It's 1790 All Over Again

Note the source reference for the article.  If you haven't read that book, do so post haste!

DennisC's picture
DennisC
Status: Gold Member (Offline)
Joined: Mar 19 2011
Posts: 342
Appreciate the Link & Suggestion

The source reference can be found here in eBook formats: https://www.gutenberg.org/ebooks/6949

Speed reading through it today.  What's old is new again, it would seem.  Spoiler Alert: You probably won't care for the ending, more like dark humour, IMO.

The government now began, and continued by spasms to grind out still more paper; commerce was at first stimulated by the difference in exchange; but this cause soon ceased to operate, and commerce, having been stimulated unhealthfully, wasted away.

Manufactures at first received a great impulse; but, ere long, this overproduction and overstimulus proved as fatal to them as to commerce. From time to time there was a revival of hope caused by an apparent revival of business; but this revival of business was at last seen to be caused more and more by the desire of far-seeing and cunning men of affairs to exchange paper money for objects of permanent value. As to the people at large, the classes living on fixed incomes and small salaries felt the pressure first, as soon as the purchasing power of their fixed incomes was reduced. Soon the great class living on wages felt it even more sadly.
...
New issues of paper were then clamored for as more drams are demanded by a drunkard. New issues only increased the evil; capitalists were all the more reluctant to embark their money on such a sea of doubt. Workmen of all sorts were more and more thrown out of employment. Issue after issue of currency came; but no relief resulted save a momentary stimulus, which aggravated the disease. The most ingenious evasions of natural laws in finance which the most subtle theorists could contrive were tried—all in vain; the most brilliant substitutes for those laws were tried; "self-regulating" schemes, "interconverting" schemes—all equally vain.

Excerpt from Section III, Fiat Money Inflation in France: How it Came, What it Brought, and How it Ended

 

pwoody82's picture
pwoody82
Status: Bronze Member (Offline)
Joined: Sep 26 2008
Posts: 51
Inflation Cycle

Another excellent source about how inflation works, what is behind it, and possible solutions is Jens O. Parssons' book "Dying of Money". It's available but expensive and hard to find.  My son asked me for a suggestion for a book to read while he flew to California and Back from Wisconsin and I suggested it. He said it was the best $50.00 he ever spent. Book has also been referenced by the 'Financial Sense' people. I would like to see it published again at a lower price.

reflector's picture
reflector
Status: Gold Member (Offline)
Joined: Aug 20 2011
Posts: 279
ironic
pwoody82 wrote:

Another excellent source about how inflation works, what is behind it, and possible solutions is Jens O. Parssons' book "Dying of Money". It's available but expensive and hard to find.  My son asked me for a suggestion for a book to read while he flew to California and Back from Wisconsin and I suggested it. He said it was the best $50.00 he ever spent. Book has also been referenced by the 'Financial Sense' people. I would like to see it published again at a lower price.

published again at a lower price?

that's slightly ironic, it would suggest prices going down and hence the warning on inflation not being relevant.

but also along the same lines, another suggestion:

When Money Dies: The Nightmare of the Weimar Collapse
by ADAM FERGUSSON
 
http://thirdparadigm.org/doc/45060880-When-Money-Dies.pdf
 
(also available in print on amazon etc)
sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 2033
5 min interview on Western use of terror in "the game"

I thought this short piece was well done.  It includes again the impression of 3 articulate observers that terrorism is funded, supported and nurtured by the very entities who claim to be fighting terrorism.

It is the people who pain the price for this game.

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