Daily Digest

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Daily Digest 7/12 - The Case For Absolute Return, Oligarchs of the Treasure Islands

Tuesday, July 12, 2016, 11:14 AM

Economy

The Case for Absolute Return (Axel M.)

Whereas volatility in commodities may be obvious, there may a lot of what one might call latent volatility in other investments. In today's environment, this may apply to stocks and bonds as much as to alternatives. That's because we believe central banks have ‘compressed risk premia', i.e. taken perceived risk out of the market. Markets are, of course, still risky, but you wouldn't know it if you look at what has been generally low volatility in stocks and bonds in recent years. When volatility does flare up, it can come back with a vengeance, as we have sporadically seen. In this context, we have referred to ‘taper tantrums' akin to the Fed trying to gently take the lid off a pressure cooker, which - surprise, surprise, doesn't work so well.

Say Goodbye to the Fourth Amendment (Tiffany D.)

The Fourth Amendment was a response to general warrants, issued secretly in London. They permitted British soldiers and agents in America to search wherever they wished and seize whatever they found. General warrants weren’t based upon suspicion of individual wrongdoing, much less probable cause.

David Cameron to Resign Wednesday, Theresa May to Be Next U.K. Prime Minister (jdargis)

"The referendum result demonstrated a clear desire for change - strong leadership is needed urgently to begin the work of withdrawing from the European Union," Leadsom told reporters Monday morning. "A nine-week leadership campaign at such a critical moment for our country is highly undesirable ... I am therefore withdrawing from the leadership election and I wish Theresa May the very greatest success. I assure her of my full support. Thank you very much."

Pokémon Go Is a Government Surveillance Psyop Conspiracy (jdargis)

As TechCrunch explained, Pokémon-loving millennials are far less likely to object to a few extra permissions when its Squirtle staring them in the face as they abandon their every god-given freedom than they do when Google reads their email.

Oligarchs of the Treasure Islands (jdargis)

Rozvany is writing a series of books on corporate tax ethics. “This is not a victimless crime,” he says. “While Western governments have been cutting back their aid to the most underprivileged in society, from the homeless to orphaned children in Africa, multinational companies have been diverting ever larger profits into tax havens”.

Reduced Viability? Banks, Insurance Companies, and Low Interest Rates (jdargis)

The Fed recently released a paper entitled “‘Low-for-Long’: Interest Rates and Net Interest Margins of Banks in Advanced Foreign Economies” that considers precisely this question. The study looked at bank profitability in advanced financial economies during low- and high-rate environments between 2005 and 2013.

A low-rate environment was defined as a time when a country’s three-month sovereign bond yield was 1.25% or below, while a high-rate period was when that yield was above 1.25%.

Amid Grim Economic Forecasts, Cubans Fear a Return to Darker Times (jdargis)

Weak oil and nickel prices and a poor sugar harvest have contributed to Cuba’s woes, officials said. Venezuela’s economic agony has led many Cubans to wonder how much longer their oil-rich ally will continue to supply the island with crucial oil — especially if the government of President Nicolás Maduro falls.

Those fears grew last week after Mr. Murillo warned of blackouts and state workers were asked to cut their hours and sharply reduce energy use.

Earth's Relentless Warming Just Hit a Terrible New Threshold (jdargis)

Perhaps even more remarkable is the magnitude of the new records. The extremes of recent months are such that we're only four months into 2016 and already there's a greater than 99 percent likelihood that this year will be the hottest on record, according to Gavin Schmidt, who directs NASA's Goddard Institute for Space Studies.

The chart below shows earth's warming climate, measured by land and sea, dating back to 1880.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/11/16

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."

6 Comments

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
1800 UAP (UFOs) tracked on average every year.

Bottom of page.

https://drive.google.com/file/d/0B9Ha0yLRWqIJbkRTZ2psOEM5V2M/view?pref=2...

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4169
CBO projects return of massive federal deficits

CBO: Federal debt to pass historic high in 2035

The Hill-1 hour ago
The current federal debt is worth 75 percent of the country's GDP. ... The CBO projected in January that the deficit would rise by $544 billion, $105 billion more ...
Debt to top World War II peak within 20 years
WPTZ-3 hours ago
Explore in depth (9 more articles)

CBO projects return of massive federal deficits

Washington Times - ‎4 hours ago‎
To get back to normal — which means a debt rate of about 40 percent of the economy — the government would have to cut $560 billion out of next year's budget, and growing every year thereafter. Even to maintain the current level of already excessive ...

 

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1449
Re: CBO: Federal debt to pass historic high in 2035

GDP figures are a lie.  Remove 30% of the published figure then what do we have?

Mike Dill's picture
Mike Dill
Status: Bronze Member (Offline)
Joined: Nov 8 2009
Posts: 28
GDP going up?

Since the costs of healthcare have been going up, according to the Bureau of Lies and Statistics, that is an increase in the GDP.

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

Deutsche bank looks bad because it has been inspected. Unlike American Banks.

Silver is the thing, says Rob. 

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
GDP is not costs, it's quantity
Mike Dill wrote:

Since the costs of healthcare have been going up, according to the Bureau of Lies and Statistics, that is an increase in the GDP.

 

GDP is not costs, it's quantity...

health care spending is adjusted by the BEA with the change in the cost of each item to give the quantity of healthcare delivered...if the health care component of GDP is going up (it is) that's because spending for healthcare is rising faster than the cost of it...

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