Daily Digest

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Daily Digest 4/24 - Italy Threatened By National Crisis, A Recipe For Global Cooling

Sunday, April 24, 2016, 10:27 AM

Economy

Obama Calls Meeting With European Leaders Over Shared Challenges (jdargis)

“This speech allows him to step back at a time when the United States and Europe, together, are dealing with a range of challenges, from counter-ISIL and the threat of terrorism, to the current refugee crisis,” said Benjamin J. Rhodes, the president’s deputy national security adviser.

'The Most Important Takeover of Any Organization in History' (jdargis)

Walking through the offices in the West Wing on January 19, 1993, Bolten remembers it as something of a construction zone, as workers were making modifications requested by the incoming Clinton team. “It’s quite striking that there is nothing on the walls, nothing on the bookshelves, computers on the desks but the hard drives have been replaced,” Bolten told me in a recent phone interview. “The new White House team basically walks onto a blank playing field.”

Mike King - The British Mad Dog: Debunking the Myth of Winston Churchill (Arthur Robey)

In the members’ segment, Mike talks about Churchill’s tarnished reputation with the British public and how he managed to rise once again despite being booted from his position as Prime Minister. We look at the outset of WWII when bloodthirsty Churchill was at the forefront of engineering and deliberately provoking the bombing of his own country by the Germans. Further, Mike discusses Hitler’s appeals to Britain and attempts for peace agreements to stop the ensuing war, and his response to the indiscriminate carpet bombings of German civilians that were propagandized to the hilt, solidifying the demonization of National Socialist Germany.

Migration crisis: Italy threatened by national crisis (jdargis)

But Imam Salem decided to fight prejudice with openness. He threw open the doors to his mosque and became involved in local charities and community work.

One of the reasons Italy has fewer Islamist radicals than many other European countries, he believes, is because it doesn't have ghettos or isolated Muslim neighbourhoods like France's banlieues.

Iran Might Still Outwit the Saudis on Oil (jdargis)

When oil producers, led by Venezuela and Russia, began to talk about an output freeze back in February, Iran made it very clear that it wouldn't participate until it restored production to pre-sanctions levels. It put that figure between 4 million and 4.2 million barrels per day, although a look back at its official OPEC-supplied production numbers shows it reported daily output at between 3.7 million and 3.8 million barrels before fresh sanctions were imposed in 2012.

A new drill for Pa: Fewer gas rigs operate, and local economies suffer (Thomas C.)

Last year's energy-price plunge undercut the business across the nation. Gas producers that borrowed heavily to acquire acreage and to drill struggled to cover their debt. They cut operations and sold assets to stay solvent. Some went bankrupt. Those financially strong enough to survive are hunkered down.

"We're going through a historic downturn," said David J. Spigelmyer, president of the Marcellus Shale Coalition, an industry trade group. "We lost maybe $10 billion in capital spending in 2015, and are heading the same way in 2016 with the rig count."

Wow! $100 Million Contract Signed For LENR (Arthur Robey)

Okay, so here’s the story: Andrea Rossi created an LENR device
called an E-Cat which, according to independent third party validators from the University of Bologna, produced up to 3 times the amount of energy it took to actually run the device. Tom Darden, the CEO of Cherokee Investments, created a new company, Industrial Heat, for the purposes of entering negotiations with Leonardo in order to invest in their IP portfolio.

A recipe for global cooling—put seafloor on dry land near the equator (jdargis)

A second study—published in the Proceedings of the National Academy of Sciences and led by MIT’s Oliver Jagoutz—looks at the flip side of the equation: the ability of plate tectonics to strengthen the weathering feedback that eats CO2. Although climate change can increase or decrease the rate of weathering, the amount of exposed and easily weatherable rock makes a huge difference. The igneous rocks that make up oceanic crust, for example, make excellent CO2 sponges—or at least they would, if they weren’t at the bottom of the sea.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/22/16

Provided daily by the Peak Prosperity Gold & Silver Group

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7 Comments

Luke Moffat's picture
Luke Moffat
Status: Gold Member (Offline)
Joined: Jan 25 2014
Posts: 364
Peak Oil Article

There is a recent article over at Peakoil.com that I thought was worth sharing;

http://peakoil.com/generalideas/we-could-be-witnessing-the-death-of-the-fossil-fuel-industry-will-it-take-the-rest-of-the-economy-down-with-it

It nicely (or grimly) sums up the problems that the oil industry faces as we head towards a post-carbon world along with the financial sector that is exposed through the decline in oil price. It goes through most of the issues discussed here at PP and ties them altogether; peak oil, climate change, bad debt, renewable energy, post-capitalism and carbon sequestration/regenerative farming.

They'll be no surprises to anyone here in the conclusions that the author draws;

 

Economic activity in this global society will of necessity be very different to the endless growth juggernaut we have experienced since the industrial revolution. In this post-carbon future, material production and consumption, and technological innovation, will only be sustainable through a participatory ‘circular economy’ in which scarce minerals and raw materials are carefully managed.

The fast-paced consumerism that we take for granted today simply won’t work in these circumstances.

Large top-down national and transnational structures will begin to become obsolete due to the large costs of maintenance, the unsustainability of the energy inputs needed for their survival, and the shift in power to new decentralized producers of energy and food.

In the place of such top-down structures, smaller-scale, networked forms of political, social and economic organization, connected through revolutionary information technologies, will be most likely to succeed. For communities to not just survive, but thrive, they will need to work together, sharing technology, expertise and knowledge on the basis of a new culture of human parity and cooperation.

Of course, before we get to this point, there will be upheaval. Today’s fossil fuel incumbency remains in denial, and is unlikely to accept the reality of its inevitable demise until it really does drop dead.

The escalation of resource wars, domestic unrest, xenophobia, state-militarism, and corporate totalitarianism is to be expected. These are the death throes of a system that has run its course.

 

 

Mots's picture
Mots
Status: Silver Member (Offline)
Joined: Jun 18 2012
Posts: 187
Wow! $100 Million Contract Signed For LENR

This is a funny science fiction story, I had my laugh after looking at some of the documents in the lawsuit that are on line.  By the way, it is very common for rich investors (very few of whom know anything about engineering, in my opinion) to blow millions of dollars chasing a possible technology.  In this case, a rich investor group parted with 11 million and refused to pay the remaining 4 million due to fraud.  The main guy who did the "test" was a close business partner-fraudster of Rossi.  I surmise from the records that the fraudsters probably got their fish in part, by getting the name NASA involved by offering to pay NASA 50k to test their system, and then when NASA got interested/serious, demanded 15 million from NASA to test it, which NASA naturally refused. I dont know why this fraud is continuously brought up at PP but is symptomatic of our times.  Again, it is very common for rich investor groups to blow millions to fast talking new technology promisers.  You should see what is going on in silicon valley.  

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4060
It's Dangerous Out There in the Bond Market

It's Dangerous Out There in the Bond Market

Bloomberg-4 hours ago
... are looking for higher returns in corporate bonds and infrastructure lending in the year ahead, as central bank stimulus clouds the outlook for sovereign debt at ...

 

Edwardelinski's picture
Edwardelinski
Status: Gold Member (Offline)
Joined: Dec 23 2012
Posts: 309
Government Bond Yields:

5 year yields                                                                                                                                                         Switzerland -0.70                                                                                                                                             Germany-0.32                                                                                                                                                      Japan-0.200                                                                                                                                                       France-.20                                                                                                                                                           US+1.36                                                                                                                                                               The 3 month t bill yield is the same as German 10 year Bund yield, 23 basis points.Insanity...                                

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2379
More Insanity - Japan central bank buying stocks

As we approach the end game of this debt-backed fiat money era, we see more and more clear insanity predicated on the (bankers) need for the system to continuously expand.  BOJ is already buying all the bonds.. but because that ultimately becomes limiting in terms of the amount of money the central bank can pump.. they need to buy stocks too!  There is really no reason to call the Japanese Bond or Stock markets markets anymore.. they are simply captured playthings of the money creator.. the central bank of Japan.  In a world not gone insane, the Yen would have lost most of it's value already.. but in the hall of mirrors that is Western central banking today, the Yen can still stand tall.  

Debt based fiat is an idea.. a concept.  Best to understand what it is, how it works.. and why it needs to expand to survive if you want to get your mind right for what's to come.         

    http://www.zerohedge.com/news/2016-04-25/stunning-finding-bank-japan-now...

What many had forgotten is that by directly buying and holdings ETFs, the BOJ also becomes a holder of the underlying stocks. It was just unclear to what extent.

Now we know.

But that's just the start. If the BOJ accelerates its ETF purchases this week to an annual rate of 7 trillion yen, as Goldman predicted last week, the central bank could become the No. 1 shareholder in about 40 of the Nikkei 225’s companies by the end of 2017, according to Bloomberg calculations that assume other major stakeholders keep their positions unchanged. It could hold the top ranking in about 90 firms using HSBC Holdings Plc’s estimate of 13 trillion yen.

This is simply unprecedented, and confirms that some time over the next several years, the Bank of Japan will not only own a majority of the Japanese bond market, but will be the outright owner of virtually all Japanese stocks!

davefairtex's picture
davefairtex
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5059
not unprecedented

So it turns out that when the government owns all the outstanding equity of all the companies, it isn't unprecedented at all.  This has happened before, in several places, and it has a name: Communism.  State owns the means of production.

Seriously.  This is basically just a slow-motion total nationalization of Japanese industry by government.

Can you imagine - a BOJ rep could be elected to the BOD of every single company - and if the ownership gets high enough, would be able to hire and fire the CEO, receive all dividends, and so on.

Edwardelinski's picture
Edwardelinski
Status: Gold Member (Offline)
Joined: Dec 23 2012
Posts: 309
There is no impossible

Six years ago Italian 2 year yields peaked at 7.6%.Today -0.0059.Spain is worse.You couldn't make this up.

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