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Daily Digest 4/30 - Russia's Nuclear Nightmare, Advanced Economies Must Still Make Things

Saturday, April 30, 2016, 11:20 AM


Advanced Economies Must Still Make Things (richcabot)

The top four economies remain the top four manufacturing powers, accounting for about 55 percent of the world’s manufacturing output in 2015. China is at the top of the list, followed by the United States (whose gross national product is still nominally No. 1), Japan, and Germany. But these countries differ markedly in the relative importance of manufacturing to their economies. The sector contributed about 28 percent of China’s GDP in 2014, second only to South Korea, with 30 percent. In the same year, manufacturing’s share came to about 23 percent in Germany, 19 percent in Japan, and only 12 percent in the United States total.

A New Option For Gold Buillion (Tiffany D.)

New Zealand Vault has been operating since 1931. New Zealand Vault is an independently owned company that runs safety-deposit vaults located in Auckland and Wellington, New Zealand. New Zealand Vault is independent of the banking system and government. We are also authorized distributors for some of the world’s most respected mints and bullion wholesales. We have clients from all over the world and across New Zealand who have opened safe-deposit boxes and purchased bullion from us.

Scandal-plagued Rome is becoming a 'do it yourself' city (thc0655)

Rome's last mayor, who failed in the Herculean task of cleaning up Rome literally and morally, was virtually forced to quit halfway through his term in 2015. Until mayoral elections this June, the Italian capital is being administered by a government-appointed commissioner, under a formula similar to what happens when Italian City Halls are under the grip of organized-crime syndicates.

Jim Bianco Warns "The Risk Of An 'Accident' Is Very High" (Kevin J.)

They calculated that if the Fed Funds Rate ever got below -35 basis points, the banks would be better off by stacking in the volume of their vault space with $100 bills yielding zero as opposed to taking a Funds Rate at -35. There is no such study for European banks. But Bernanke believes that their break-even would be even closer to zero, something like -20 or -15 basis points because they have a 500 Euro note which is six times the monetary value of a $100 bill and roughly the same size. Yet, we’re seeing no movement out of the European banks to stack 500 Euro notes in their vaults. That means they’re acting irrationally. They’re not acting that way because they don’t believe it or they don’t understand it. So we’re still all trying to feel around in the dark as to what this means. And that means that the chance of an accident is very high.

New discovery means more U.S. states will face a risk from Zika (jdargis)

During the summer months when U.S. mosquito populations are at their peak, albopictus are more ubiquitous than the Aedes aegypti that have been the primary vector of the spread of Zika elsewhere in the Americas. Unlike the aegypti mosquito, which is mostly present in southern United States and along the Gulf Coast, the albopictus has a range as far north as New England and the lower Great Lakes.

South Florida's Tourist Season From Hell (Michael W.)

Some Everglades advocates took out a full-page ad in The New York Times calling out U.S. Sugar Corp. and its owner, the Charles Stewart Mott Foundation, for the pollution that runs off of sugar fields into Lake Okeechobee. Additionally, an article in the Huffington Post compared Florida’s water pollution to the poisoned water in Flint, Michigan, where the Mott Foundation is headquartered.

Russia’s nuclear nightmare flows down radioactive river (Tall)

Thousands already have been resettled by Russia’s Rosatom State Atomic Energy Corp. to new homes two kilometers (a mile) inland from the river, leaving Dambaev’s village of Muslyumovo in a state of steady decay as shops close and abandoned homes are bulldozed. The evacuations began in 2008, two decades after Russia started to admit disasters past and present stretching from Mayak’s earliest days in the late 1940s as the maker of plutonium for the first Soviet atomic bombs.

Scientists say there’s basically no way the Great Barrier Reef was bleached naturally (Tall)

King and his four colleagues freely confess that their analysis has not yet been peer-reviewed — science doesn’t move that fast — and admit to adopting the “unusual approach of releasing the results before publication.” But they defend the move in light of the situation.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/29/16

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."



sand_puppy's picture
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Pulp Fiction: "Once Upon An Apocalypse"

Just wanted to mention a rousing good action tale of a couple trying to make it home after an EMP takes down the nation's infrastructure.  Our heroic protagonist has a GHB (get home bag) packed in his auto, and precedes cross country filtering water from streams, scavenging, fending off bad guys, rescuing damsels in distress and generally philosophizing about the merits of preparing for a system collapse.

Very well written.  Lots of practical information to be gleaned.  Decent drama and dialog.  A realistic view of the responses of different personality types to this kind of event.

Once Upon An Apocalypse:  The Journey Home

pinecarr's picture
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A Hint Of NIRP: Schwab ...Forcing Cash Out Of Money Market Funds

Interesting article on ZH, "A Hint Of NIRP: Schwab Is Quietly Forcing Cash Out Of Money Market Funds", @


While perhaps not quite as dramatic (or confusing) as last week's announcement by Scottrade that the discount online broker would no longer allow Canadian citizens to hold accounts, in a new surprising development, another online broker, Charles Schwab has started informing some of its clients that "between June and October 2016, Schwab will update the cash feature on your account(s) from the current retail prime or municipal money market fund sweep to the Schwab Government Money Fund" or the SWGXX, which "will invest at least 99.5% of its total assets in cash, U.S. government securities and/or repurchase agreements that are collateralized fully by cash and/or U.S. government securities; under normal circumstances, at least 80% of the fund's net assets will be invested solely in U.S. government securities including repurchase agreements. "

In other words Schwab is telegraphing that brokerages have begun permanently unwinding hundreds of billions if not trillions in money market-funds, and rotating it almost entirely into government securities.


Recall that according to the punditry, one of the biggest hindrances to NIRP in the US is the trillions of dollars held in money market accounts. Well, one way of overcoming this "problem" is to preemptive begin a mandatory sweep pushing all money market-parked cash into government-linked securities. In other words, instead of roughly $2 trillion of inert cash held at money market funds (as per the latest H.6 statement), not only will a substantial portion of that cash "rotate" into Treasury holdings in the coming months (resulting in yet another key driver of demand for Treasury paper) but will also eliminate the money market overhang risk if and when the Fed decided to join the global negative interest rate scramble, and unleash NIRP. [bold mine]

Schwab automatically assumes that all clients affected by this change will accept: "if you are in agreement with this change in your cash feature, no response is required from you. Schwab will consider a non-response to this notice as your authorization and instruction to change your cash feature." Those who disagree have the "option" of either sweeping their cash into th corporate bank (thus being exposed to Schwab corporate counterparty risk), or, as Schwab conveniently adds, "you also have the right to close your brokerage account(s) without penalty at any time."

What was that about can you feel a tipping point, Chris?! :p

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Puerto Rico declares moratorium on Government Development Bank'

Puerto Rico declares moratorium on Government Development Bank's debt

Reuters - ‎15 hours ago‎
"The government has known the GDB was a ticking time-bomb and yet nothing constructive was done to forestall a default," said Arturo Porzecanski, economist and sovereign debt expert at American University in Washington, adding that "the approach is ...

Atlantic City may default on its debts today

Philadelphia Business Journal-1 hour ago
That's the time when Mayor Don Guardian will announce whether the city — which seems to exist in a perpetual gloom — will default on its debt.

Banks' bad loans surge to 15-year high in 2015

The Korea Herald - ‎8 hours ago‎
Smaller firms, on the other hand, increased their total borrowing by over 50 trillion won in 2015 alone, but the amount of non-performing loans shrank 886 billion won from the previous year. Household debt also spiked by over 44.6 trillion won, but the ...

Buffett: I'd consider taking money out of banks if they charge for deposits

CNBC - ‎1 hour ago‎
With persistently low interest rates around the globe, billionaire investor Warren Buffett told CNBC on Monday he'd consider taking money out of banks, especially if negative interest rates result in customers being charged to park their money in accounts.

273000 union workers and retirees brace for pension cuts

CNNMoney-13 minutes ago
... cuts proposed by a multi-employer, private fund as a way to head off insolvency. ... Bill and his wife rely mostly on his pension and their Social Security checks.


KugsCheese's picture
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Re: Puerto Rico Declares Moratorium On Government Development...

Does anyone know how much GS made selling PR bonds then shorting them like they did with housing?

TechGuy's picture
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Posts: 457
Re: Schwab Money Market Accts

My Though is Schwab actions may not be linked to NIRP, but perhaps growing risks in the MM fund investments. MM funds usually invest in AAA bonds, but I suspect that as more companies lose their AAA rating (ie Exxon-Mobile losing its AAA rated last week) risks are increasing for losses. Perhaps Schwab is just trying to exit before the stampeed.

FWIW: I closed all my MM accounts. The yeilds are so low it doesn't really make any difference, and the risks are higher. I have my cash, in either cash, savings accounts or checking  at low risk banks (texas-ratio) I am more interested in the return of my money, not the return on my money (groucho Marx reference)

Also I don't believe MM are covered under FDIC insurance anymore or the amounts covered is lower. Athough the risks are bigger wit SEPIC insurance as SIPC is a private insurance organization with zero cash reserves for bailouts. If a Brokerages goes under. all assets held in brokerage are subject to bailout, even if your investments are in cash and they can claw back your holding as far as 5 to 7 years. Another words if you withdraw all of your capital from a brokage today, and in two years the brokage fails, SIPC will send you a bill for your share of the bailout. All it takes is one Rogue/Fat Finger trader to bring down the best run, low risk brokage.


The Huge SIPC Risk Your Broker Isn't Disclosing:




sand_puppy's picture
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Sandy Hook, Again

Things have been a bit too quiet around here these last weeks.  Time to throw more controversial stuff into the air.

Bernie Suarez , at the Sleuth Journal, asks whether Sandy Hook will be the 9/11 Truth event of the next generation.  The event that provides a keyhole through which they first glimpse that the stories laid out for us are not always true.

No proof is offered.  Only indicators. Indicators in the form of details that do not fit or seem improbable.  Story elements that are verbally reported to us but are unbacked by evidence.   And of course, lots of evidence that is not available for public review.  These are the kinds of holes-in-the-story that would cause a jury to not convict.

He links a couple of Video's and source documents.


Time2help's picture
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sand_puppy wrote: Things have
sand_puppy wrote:

Things have been a bit too quiet around here these last weeks.  Time to throw more controversial stuff into the air

Love ya man ;-)

thc0655's picture
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Stirring the pot

Maybe the David Wheeler guy allegedly in those videos from Sandy Hook is actually FBI special agent William Aldenberg.  I don't know, but the two of them might qualify for one of those websites that finds "twins" for anyone in the world (by finding a totally unrelated stranger who looks strikingly like the subject).

Anyway, if that IS Special Agent Aldenberg of the FBI and I was in his chain of command, I'd be embarrassed by him.  (Maybe that's why he appears to make repeated efforts to turn his face away from cameras: he didn't want any higher-ups at the FBI to notice his Sad Sack appearance.)  When he is at the car getting geared up to enter the scene, he seems a bit unfamiliar with his equipment, where it all is, and how he puts it on.  He seems to have considerable difficulty with his ballistic helmet.  He definitely looks like he doesn't do this kind of "field work" very often.  Maybe he is a forensic accountant for the FBI pressed into service for this event. Secondly, Aldenberg is out of uniform and would be subject to discipline in my police department.  He has no identifying badge, ID, or even an FBI patch to indicate who he is and what agency he works with.  The worst thing about that is that no one challenges him as he enters the protected scene of the crime closed to all but essential first responders.  He could've been David Wheeler for all anybody knew.  Third, and worst of all, Aldenberg (or whoever he is) demonstrates very sloppy weapons handling skills on a scene where one errant round fired negligently would have a good chance of hitting someone.  The sloppy and dangerous weapon handling skills would be grounds for further discipline and re-training.  As sloppy as he appears in the videos, it's frightening to think he's carrying the sniper rifle.  He doesn't strike me as the type to be trusted with a disciplined, highly precise kill shot, if necessary.

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