Daily Digest

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Daily Digest 7/21 - GOP Finds Unity Against Clinton, How Rigged Is The Market?

Thursday, July 21, 2016, 8:47 AM


The question isn't whether the market is rigged, but how much (lambertad)

According to one Federal Reserve study, the Fed doesn't even have to spend actual money to drive up stock prices. Holding its regular FOMC meetings is enough. This Fed study shows that the FOMC drove the S&P 55% above fair value.

Apparently, the Fed and its global central bank buddies are at it again.

Turkey post-coup purge: Licenses of 21,000 teachers revoked, 1,577 deans ordered to resign (lambertad)

The newest sackings and calls for resignation are the latest in a movement that Prime Minister Binali Yildirim says is aimed at removing the influence of Gulen “by its roots.” A total of 49,337 public sector workers – including military and police personnel – have lost their jobs since Friday, according to Hurriyet.

The Financial System is Breaking Down at an Unimaginable Pace (Aaron M.)

Instead of paying subprime home buyers to borrow money, investors are now paying subprime governments.

And just like the build-up to the 2008 subprime crisis, investors are snapping up today’s subprime bonds with frightening enthusiasm.

Republican Factions Find a Unifying Force: Hillary Clinton (jdargis)

Attorney General Loretta E. Lynch declined to charge Mrs. Clinton over the emails on the recommendation of the F.B.I. director, James Comey, though Mr. Comey criticized Mrs. Clinton’s conduct as “extremely careless.”

Leading up to the convention, Mr. Trump himself cast his Democratic opponent as nothing less than a criminal. Earlier this week, as Buzzfeed first reported on Wednesday, an adviser to Mr. Trump on veterans’ issues suggested Mrs. Clinton should face a firing squad to be shot for treason.

Vicious attacks on Hillary Clinton are for sale on buttons and T-shirts (Uncletommy)

Another button mentions Hillary's body parts and connects them to Kentucky Fried Chicken. "KFC Hillary Special. 2 fat thighs. 2 small breasts. … left wing."

"They buy 'em, " says Steve Scanlon, a large man who sells his wares from the comfort of a chair parked beside his souvenir stand. He says the Clinton-bashing buttons are hot sellers, even with women.

U.S. & Clinton Beyond the Law: Catherine Austin Fitts (pinecarr)

On the economy crashing this year, Fitts says, “Could we turn into a bear market? I think given the commitment to equity markets and given the willingness to debase the currency, I think the chances of that are relatively small this year. Next year, depending on what happens in the election, the gloves are going to come off globally about what’s been going on in the U.S. Anything could happen. That’s the danger if you are an investment advisor or an investor. The swings here is we could be up 30%, or we could be down 50%. A black swan could happen, so if you are an investor, you need to be prepared for very, very wide swings both up and down in prices in the equity markets. Here’s the important thing to remember.

We now have $12 trillion sitting in negative interest rates. Where’s all that money going to go? It can’t sit there getting nothing. It will have to go into real estate. It’s going to have to go into equity. It’s going to have to go to precious metals because it can’t sit there getting no or negative yields forever... The debt game is over.”

EIA Predicts Slump in Shale Outputs By August (Josh O.)

The report concludes that U.S. shale companies have managed to cut costs by as much as 40 percent since 2014. Much of that comes from lower costs from equipment suppliers and oilfield services firms. But it also comes from improved productivity from the average shale well. Instead of drilling anywhere and everywhere, U.S. shale companies are getting better at finding the “sweet spots.”

Musk: Tesla to become a sustainable energy company (jdargis)

In the future he outlines, any excess power that doesn't go into the home battery will be put into a car. Or a compact SUV or pickup truck, which are in the planning stages. We'll also see the announcement of a Tesla Semi next year, and Musk said the company is working on a completely redesigned city bus that's smaller, has denser seating, and takes passengers directly to their destination, rather than the nearest bus stop. What Tesla doesn't plan on making is a low-cost vehicle for reasons we'll get back to below.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/20/16

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."


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Yen Collapse Seen by Kuroda Critic Pitching Perpetual Bond Plan

Yen Collapse Seen by Kuroda Critic Pitching Perpetual Bond Plan

Bloomberg-5 hours ago
A Bank of Japan veteran-turned-critic says there's only one way policy makers can avoid a collapse in the yen and bonds -- sovereign debt with no maturity date ...

Japan's $190 billion stimulus: 'double your money' but less than meets the eye

Reuters - ‎6 hours ago‎
Prime Minister Shinzo Abe, fresh off a big election win, last week ordered his government to create a stimulus plan to revive an economy dogged by sluggish consumption and investment, despite three years of his "Abenomics" mix of hyper-easy monetary ...

Debt Issuance Can't Keep Up With the ECB's Hunger for Bonds

Bloomberg-10 hours ago

As worries that the European Central Bank will soon run out of sovereign debt to buy for its quantitative-easing program persist, Europe's over-leveraged ..


Draghi Signals ECB May Boost Stimulus Later This Year

Bloomberg-1 hour ago
Mario Draghi said the European Central Bank won't hesitate to add fresh stimulus if needed once it has a clearer picture of the economic impact from the U.K.'s ...

Poll: China 2016 economic growth seen slowing to 6.5 percent ...

Reuters-9 hours ago

Any policy stimulus on investment would not be indefinite and economic growth will eventually resume its downtrend," Nomura economists said in a recent .

Negative Yields Infecting Credit Markets as Investors Capitulate

Bloomberg-15 hours ago
The dilemma facing investors is down to the European Central Bank's asset-purchase stimulus program that's pushed yields so low that buying some ...


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Treasury to Sell $172 billion of Debt

Treasury to Sell $172 billion of Debt

Wall Street Journal-1 hour ago
The U.S. Treasury Department will auction $172 billion in securities next week, comprising $135 billion in new debt and $37 billion in previously sold debt.

Africa may face unsustainable debt: report

Deutsche Welle-42 minutes ago
In those years, Africa's debt ballooned to $230 billion (209 billion euros), at a time where the continent's annual export earnings represented about a third of that.

The Emerging-Markets Debt Time Bomb

Bloomberg-2 hours ago

Investors allocated $6.5 billion to developing equity and debt funds in the seven days through July 15, the most since a $7.4 billion weekly inflow in September

Risk of Losing Renzi May Sway Merkel to Relent on Italian Banks

Bloomberg-4 hours ago
Italian lenders have about 59 billion euros of subordinated debt outstanding which could be in line for losses. About half of that is owned by retail investors.

Zimbabwe to pay army, police late as cash crisis deepens

Reuters UK-3 hours ago
Finance minister Patrick Chinamasa flew to London this month to try to patch up relations as part of a plan to re-arrange Zimbabwe's foreign debt of $8.3 billion, ...

Venezuela top court says central bank can borrow without Congress ...

The Fiscal Times-4 hours ago
Local media has reported that Venezuela is seeking a $1 billion loan from the group ... Heavy debt payments have forced Venezuela to imports of basic goods, ...

McDonald's Stops Selling Big Mac in Venezuela due to Bread ...

Bloomberg-2 hours ago

“McDonald's Venezuela is working to resolve this temporary situation,” Daniel Schleiniger, a spokesman for Arcos Dorados, said in an e-mailed response to

IMF predicts 700% inflation, 10% GDP contraction in Venezuela this year

RT - ‎20 hours ago‎
Venezuela's economic condition continues to deteriorate, as policy distortions and fiscal imbalances remain unaddressed,” Alejandro Werner, chief Latin America economist, said in the report titled “In Transition: The Outlook for Latin America and the ...

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