Daily Digest

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Daily Digest 5/24 - Fear the U.S. Dollar Kill Switch, Indoor Farms Could Revolutionize Agriculture

Tuesday, May 24, 2016, 11:22 AM

Economy

House to Consider I.R.S. Commissioner’s Impeachment (jdargis)

Mr. Koskinen was not even in government when the I.R.S. admitted to singling out the tax-exemption applications of Tea Party groups for scrutiny. Organizations on the I.R.S.’s “lookout lists” went beyond conservative groups to include groups like Palestinian rights activists and open-software developers, but the scrutiny of hundreds of Tea Party applicants infuriated congressional Republicans.

Fear the U.S. Dollar Kill Switch (Tiffany D.)

The total stock of cash is known as M0. It includes the bills and coins in people’s pockets and mattresses, money stored in bank vaults and all bank deposits in the Federal Reserve System. There’s $1.45 trillion in M0 right now — $1.4 trillion in actual notes and coins, the rest in Fed deposits. Additionally, at any given time, between one-half and two-thirds of U.S. dollars in the M0 money stock are held overseas.

The rest of the U.S. money supply, called M1 and M2, resides in bank accounts of various types. M1 represents M0 plus all of the “virtual” money in checking and other transaction accounts. The current M1 money supply for U.S. dollars is about $3.2 trillion. M2 is M1 plus all of the “virtual” money on long-term deposit. It’s about $12.6 trillion.

New Political Earthquake in Brazil: Is It Now Time for Media Outlets to Call This a “Coup”? (jdargis)

The transcripts contain two extraordinary revelations that should lead all media outlets to seriously consider whether they should call what took place in Brazil a “coup”: a term Dilma and her supporters have used for months. When discussing the plot to remove Dilma as a means of ending the Car Wash investigation, Jucá said the Brazilian military is supporting the plot: “I am talking to the generals, the military commanders. They are fine with this, they said they will guarantee it.” He also said the military is “monitoring the Landless Workers Movement” (Movimento dos Trabalhadores Rurais Sem Terra, or MST), the social movement of rural workers that supports PT’s efforts of land reform and inequality reduction and has led the protests against impeachment.

If Citizens United Falls, Will Progressives Notice? (jdargis)

By the late 1990s, the Buckley compromise had begun to fray. In a string of divided decisions, from 2000 through 2003, the Court deferred to legislative regulation of political contributions and spending. Though those decisions purported to follow Buckley, conservatives believed that they strayed far from Buckley’s rationale. The appointment of Chief Justice John Roberts and Justice Samuel Alito to the Court, however, flipped the majority. Since then, major cases striking down campaign-finance laws have included McCutcheon v. Federal Election Commission, holding aggregate caps on contributions to candidates unconstitutional; Arizona Free Enterprise Club v. Bennett, striking down government financing systems that award funds unequally based on private fundraising and outside spending; and finally Citizens United, which overruled Austin and struck down limits on corporate political spending.

Students Boost Food Production With Simple Technologies (richcabot)

The organization is designing biointensive garden beds for the grounds of the Paulo XII school. Such gardens, which use no chemical fertilizer, rely on raised aerated beds to achieve high crop yields from a minimal amount of land. The soil has greater drainage and aeration because of the beds’ design and their organic material. The roots grow deeper and reach more nutrients in the ground. Water is used efficiently, with less of it lost to evaporation.

The War On Cash Is A War On Your Freedom To Opt Out (Don R.)

The official answer is to limit money-laundering by drug traffickers and criminals. But laundering money through official banking channels is not that difficult, so cash is not necessary for laundering.

Another official reason is tax evasion. But tax evasion is now so easy, once again cash is not required: The World’s Favorite New Tax Haven Is the United States: Moving money out of the usual offshore secrecy havens and into the U.S. is a brisk new business.

What Caused The Great Depression? (Arthur Robey)

In the aftermath of the Stock Market Crash of October 1929, financial panic gripped the United States of America. The Great Depression (1929-1941) was the longest-lasting sustained economic downturn in the history of the Western industrialized world.

Oil Heads Lower As Supply Concerns Abate (Josh O.)

Chinese customs data show that Russian crude imports in April reached a record high at 1.17 million barrels per day. We can see in our ClipperData that waterborne Russian imports reached a record high last month, and volumes are continuing to arrive at the same pace so far in May; independent teapot refiners are likely continuing to fill their boots with crude locked in at lower prices earlier in the year. As the chart below illustrates, Chinese waterborne imports continue to rip higher...

Indoor Farms Could Revolutionize Agriculture (richcabot)

AeroFarms plans to open facilities on four continents in the next five years. However, it’s one of several popping up around the globe. In Miyagi Prefecture, Japan, for example, the indoor farm Mirai was created in response to a food shortage after the 2011 Tōhoku earthquake and tsunami. Mirai now produces 10,000 heads of lettuce per day.

Gold & Silver

Click to read the PM Daily Market Commentary: 5/23/16

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."

1 Comment

Grover's picture
Grover
Status: Platinum Member (Offline)
Joined: Feb 16 2011
Posts: 840
Art Berman's Analysis on Oil

http://www.artberman.com/wp-content/uploads/LGS_Returning-To-Market-Bala...

Nothing really new for PP readers, but some interesting charts and analysis. Fits with Gail Tverberg's view that consumer's will not be able to afford higher prices, but higher prices are necessary to promote exploration for more supplies. [emphasis mine] Here's the summary of the article:

  • The current price rally seems to have substance although inventories are a concern.
  • The global market appears to be moving quickly toward balance with higher consumption growth.
  • Recent outages underscore fragility of supply.
  • Under-investment during 2015 and 2016 means much higher oil prices in a few years.
  • Anticipation of future supply deficits are moving prices higher.
  • Expect similar high price volatility and price cycling with several upward-trending 4-5 month cycles.
  • Prices must eventually reach the $70 to $80 per barrel range to restore balance sheets enough that investment may resume. Difficult to imagine in 2016 or 2017 without supply interruptions or an OPEC production cut.
  • A weak global economy and weaker demand at higher oil prices are the biggest risks to oil-price recovery.
  • A return to market balance does not necessarily mean that prices will return to the $70-80 range.
  • If a weak economy cannot support those prices, we may see price spikes that cannot be absorbed. That may bring a traumatic end to the Age of Oil.
  • People will have to learn to get by with less in a future based on lower energy-density fuels and lower economic growth potential than oil has provided.

 

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