Daily Digest

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Daily Digest 6/9 - Retailers Are The Big Job Killers, The Money Cult

Thursday, June 9, 2016, 9:49 AM

Economy

Layoffs in aisle 4! Retailers are big job killers (Adam)

Much of the pain in retail is due to the upheaval in the apparel industry.

According to data from the U.S. government, nearly 13,000 jobs have been lost at clothing and clothing accessories stores in the past three months. Fast fashion upstarts are making life more difficult for some of the older mall-based stalwarts.

Millions of sensitive services exposed on the internet reveal most hackable countries (blackeagle)

The table on the left shows the top regions that have devices listening on all of the 30 most prevalent TCP services. There was no “double dipping,” as a node in the “30 ports exposed” category had all 30 scanned ports exposed and was not in any other port-count category.

The table on the right shows a small portion of the national exposure index, the most exposed nations with insecure services—the most hackable countries.

The Money Cult (Joe M.)

Australia has amassed a huge pile of debt—over 120% of GDP—and most of it is mortgage debt on overvalued real estate. Now that Australia’s economy, which was driven by commodity exports to China, has tanked, a lot of this debt is being turned into interest-only loans, because Australians no longer have the money to repay any of the principal. But what if they can’t make the interest payments either? The obvious solution is to refinance their mortgages as interest-only at zero percent; problem solved! Of course, as conditions deteriorate further, the Australians will become unable to afford taxes and utilities. Negative interest rates to the rescue! Refinance them again at a negative rate of interest, and now the banks will pay them to live in their overpriced houses.

Nearly Half of D.C. Employers Said They Have Laid Off Workers, Reduced Hours Due to Minimum Wage Hikes (Adam)

According to the report, just over half of the businesses surveyed said they planned to raise prices in order to offset the cost of a minimum wage hike. Thirty-five percent said they would likely reduce staffing levels and 37 percent said they would reduce employees’ hours or reduce the number of hours they were open for business. Thirty-one percent of businesses said they were very likely to hire more skilled workers in the future to offset the higher wage.

Don't Jump Into MLPs With Tepper Just Yet (Alex)

Energy Transfer Partners (ETP) is an MLP that started with natural gas pipelines, but later expanded into natural gas liquids (NGLs), refined products, and also crude oil. It currently has a dividend yield of 11.49% — exactly the type of yield investors would love to earn.

Williams Partners (WPZ) is another MLP that’s focused on dry gas pipeline transport. It’s dividend yield is 10.82%, also pretty juicy.

Jobs Report Changes the Landscape for Gold (Kevin J.)

The decline in job creation, as marked by not only the May number but also the downward revisions to the previous two months, completely changes the outlook for the U.S. economy going forward. It's a different world than what we were expecting just last week, and we need to be ready for it by owning gold, silver and well-positioned junior mining/exploration stocks.

U.S. Economy Priced in Gold (Taki T.)

National debt has increased exponentially for the past 50 years. Expect the exponential increase to continue and accelerate, even with historically low interest rates.

What if we priced national debt in “real money” – actual gold instead of the digital and paper stuff that can be created at the whim of a central banker?

London appetite for gold bars, coins rises on Brexit nerves (Adam)

UK gold dealer The Pure Gold Company said it had seen a 19 percent increase in enquiries to buy gold bars over the weekend, compared to last week.

Those looking to hedge against Brexit risk with gold can choose from a range of small investment products, from 1 gram bars for less than 50 pounds to kilobars priced at more than 28,000 pounds, bought over the counter or online.

Something Big That Always Happens Right Before The Official Start Of A Recession Has Just Happened (Aaron M.)

In this chart, you can see that the number of temporary workers peaked and started to decline rapidly before we even got to the recession of 2001. And you will notice that the number of temporary workers also peaked and started to decline rapidly before we even got to the recession of 2008. This shows why the temporary workforce is considered to be a “leading indicator” for the U.S. economy as a whole. When the number of temporary workers peaks and then starts to fall steadily, that is a major red flag. And that is why it is so incredibly alarming that the number of temporary workers peaked in December 2015 and has fallen quite a bit since then…

San Francisco Is Bracing for Life After This Tech Bubble (Adam)

A tech boom spurred by companies like Twitter Inc., Uber Technologies Inc. and Airbnb Inc. has transformed San Francisco into one of the hottest economies in the U.S. The unemployment rate was 3.1 percent in April, the lowest since 2000, and home values are at a median of $1.1 million, the largest among the 50 biggest U.S. cities. Mayor Edwin Lee on May 31 released a record $9.6 billion budget proposal.

Brexit camp threatens legal action over EU vote extension (Adam)

The "Remain" camp got another boost when Conservative MP Sarah Wollaston announced she was switching sides from the "Leave" camp, telling the BBC late Wednesday she was "uncomfortable" about the credibility of their claims about the cost of EU membership.

Former Conservative prime minister John Major and his erstwhile political rival in the 1990s Tony Blair -- were also set to put party politics to one side later on Thursday for a pro-EU rally in Northern Ireland.

After 350,000 Layoffs Oil Companies Now Face Worker Shortages (Josh O.)

Despite thousands of layoffs in the oil sector, U.S. drilling companies may soon be facing a shortage of skilled workers as oil prices rebound and operations begin to come back online

FOWL ADVICE Keep CHICKENS if you want a better life, billionaire Bill Gates tells poor people (Adam)

“I’ve met many people in poor countries who raise chickens, and I have learned a lot about the ins and outs of owning these birds,” he wrote.

“It’s pretty clear to me that just about anyone who’s living in extreme poverty is better off if they have chickens.”

Gold & Silver

Click to read the PM Daily Market Commentary: 6/7/16

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

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1758
Keep Paper Maps of Your Area

FAA Warns That Mystery Military Tests May Lead To Widespread West Coast GPS Disruptions

Starting today (posted on June 7, 2016), and continuing for the next month, the FAA has warned airplane pilots that GPS signals on on the West Coast, and especially over California and Nevada, may be impacted.

The reason why is not exactly clear, but as Gizmodo notes, the US military will be testing a device or devices that will potentially jam GPS signals for six hours each day. Officially the tests were announced by the FAA but are centered near the US Navy’s largest installation in the Mojave Desert, China Lake, located "just down the road" from Area 51. The Navy has kept silent about the nature of the tests.

We are reminded that kinetic, EMP and cyberwarfare attack scenarios all include knocking out the GPS satellite system as the opening move.

I have become so used to navigating with my hand held GPS device that I no longer have low tech paper maps. 

davefairtex's picture
davefairtex
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5064
map-reading & navigation = hard

So if you no longer have streets - you're off road - and even if you have have one of those paper maps and a compass, you may find it difficult to sort out where you should be going.  It turns out, navigation is a real skill.  Being off by a few hundred yards means you could end up going up the wrong hill into a horrid patch of very difficult rocks rather than the gentle open plain that your survival instructor had prepared you for.  What made matters worse was the gentle open plain was very visible all the while we were climbing over said rocks...

Sigh.

I suppose the only thing worse than having to rely on a paper map & a compass (and a bad navigator) is no paper map and no compass at all...

We really are spoiled by google maps.

For those of you who haven't been to China yet - no google maps.  In fact, no google, unless you have a VPN - and even that is problematic because the GFoC knocks down your VPN connection after a few minutes.

Can you imagine the fun - navigating a new city with no google maps?  I finally had to resort to offline maps, which worked after a fashion as long as you didn't mind not changing the resolution level.

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