Daily Digest

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Daily Digest 4/12 - Your Free Market Is Rigged, Why Low Oil Prices Haven’t Helped The Economy

Tuesday, April 12, 2016, 10:29 AM

Economy

"The Problems Are Unfixable" (Thomas C.)

It must be obvious that the next occupant of the White House will preside over the implosion of all these arrangements since, in the immortal words of economist Herb Stein, if something can’t go on forever, it will stop. So the only individuals left seeking the position are 1) An inarticulate reality TV buffoon; 2) a war-happy evangelical maniac; 3) a narcissistic monster of entitlement whose “turn” it is to hold the country’s highest office; and 4) a valiant but quixotic self-proclaimed socialist altacocker who might have walked off the set of Welcome Back Kotter, 40th Reunion Special. These are the ones left standing halfway to the conventions. Nobody else in his, her, it, xe, or they right mind wants to be handed this schwag-bag of doom.

Doug Casey: Are We Headed For Another Dark Ages? (Herman J.)

Doug Casey is bullish on the resource sector. He believes that it has hit bottom and will be going up from here. On the government and human front he’s not so optimistic. The sociopaths who run things are more concerned about the well-being of government rather than the people. For this reason it grows like a cancer and eventually consumes all in its path. But Doug believes that as long as WWIII doesn’t take place, humanity will ultimately find its way and move forward. However, there will be much suffering and unpleasantness as the Greater Depression rears its ugly head once again.

Your Free Market Is Rigged (Tiffany D.)

There have been 606 global interest-rate cuts and $12.4 trillion in central bank asset purchases since the fourth quarter of 2008. This made borrowing money extraordinarily cheap — for those who can actually get loans. These are government acts of market intervention … for some reason, Smith’s “invisible hand” couldn’t be trusted to fix things in this case. Here are some of the results, cited by the BofA report...

Gold Money Or Digital Money? (GE Christenson)

Let’s be intellectually serious here. All the gold ever mined on the planet is still with us. We cannot eat it and it has marginal industrial value. By all definitions it is “physically’ worthless. In our 5000 year recorded history of gold we have seen it take on many roles. Yes, it has been money. Yes, it did start banking. Yes, banks did store and use it as collateral for money creation. Yes, it was a coinage, but silver was better.

Dutch parliament adopted motions to investigate money creation (Ivo M.)

The organisers made the case that money creation should be entrusted to a 4th power of government and that the state guarantees for credit, like the deposit insurance scheme can be deconstructed in order to clearly separate public and private responsibilities. Such a change could be initiated by having a 4th power of government issuing debt-free digital cash.

Why Low Oil Prices Haven’t Helped The Economy (Josh O.)

But we’re not seeing much evidence that consumers are spending those gains on other goods or services. I’ve often used a summary of the historical response of overall consumption spending to energy prices that was developed by Paul Edelstein and Lutz Kilian. I re-estimated their equations using data from 1970:M7 through 2014:M7 and used the model to describe consumption spending since then. The black line in the graph below shows the actual level of real consumption spending for the period September 2013 through February of 2016, plotted as a percent of 2014:M7 values. The blue line shows the forecast of their model if we assumed no change in energy prices since then, while the green line indicates the prediction of the model conditional on the big drop in energy prices that we now know began in July of 2014.

Germany To Abandon $1.1 Trillion Wind Power Program By 2019 (Phil H.)

“The domestic market for many [wind turbine] manufacturers collapses completely,” Julia Verlinden, a spokesperson for the German Green Party, told Berliner Zeitung. “With their plan, the federal government is killing the wind companies.” Verlinden goes on to blame the political influence of “old, fossil fuel power plants.”

Utility regulator, SoCal Gas at odds over reopening of natural gas field (jdargis)

The issue here is that the Aliso Canyon storage field, which is one of the biggest west of the Mississippi, provides the bulk of the natural gas that Southern Californian utilities run on. The field is currently at one-fifth of its capacity, and the utility is currently barred from filling the reservoirs with any more natural gas. State energy officials have said that the reduced natural gas reserves could mean that the Los Angeles area might experience “limited power outages” for up to 14 days this summer and up to 32 days this year.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/11/16

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."

2 Comments

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Making Money

The first wife was holding forth on how it was OK to borrow money and spend it on infrastructure projects.

I interjected with "Why borrow? Why go on bended knee to the bankers to borrow money that we could print ourselves?"

She conceded my point.

The problem being,  of cause,  that the bankers will react badly to such an outrage. They will convince the Great Unwashed that we are Evil Incarnate and must be exterminated. The Great Unwashed will buy their plabum, they always have.

But hands have gone up. Can we entrust such an important task to the elected? To ensure their good intention we must have an exit vote. When they leave office every vote gets them a dollar for their pension.

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2839
Meh

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