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Daily Digest 11/27 - A Most Convenient Massacre, Does It Pay To Be Kind To Strangers?

Chris Martenson - 1 hour 30 min ago
  • Getting My Money’s Worth
  • The Human Error Behind the Kunduz Hospital Strike
  • Maps from Russia and Turkey tell very different stories about the downed jet
  • Turkish president warns Russia not to 'play with fire' after Putin suggested Su-24 jet was shot down after America passed on details of its flight path
  • Meet The Man Who Funds ISIS: Bilal Erdogan, The Son Of Turkey's President
  • Does It Pay To Be Kind To Strangers?
  • Why No One Will Implement the Best Solution to Economic Stagnation
  • A Most Convenient Massacre
  • Tomgram: Rebecca Gordon, Corruption U.S.A.
  • U.S. Failing To Harness Hydro Power Potential

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Categories: Economics

Daily Digest 11/26 - How Walmart Watches Its Workforce, One Worker's Insane Holiday Schedule

Chris Martenson - November 26, 2015 - 08:19
  • Why do American cops kill so many compared to European cops?
  • How Chicago tried to cover up a police execution
  • NATO Is Harboring ISIS, And Here's The Evidence
  • Reputation In An Information Age
  • Rick Rule: Absolutely Manic Bull Market In Gold Coming Soon
  • Company with Obama ties presses to stage events at parks
  • How Walmart Keeps an Eye on Its Massive Workforce
  • Kohls Worker Details Her Insane Schedule Through Black Friday
  • Let's talk, Turkey: Downing of Russian SU-24 bomber just doesn't add up 
  • Saudi Arabia’s Wells Are Running Dry
  • Will Low Oil Prices Increase Internal Instability In Conflict Countries?
  • Whale Fall

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Categories: Economics

How Much Higher Can The U.S. Dollar Go?

Chris Martenson - November 25, 2015 - 09:11

Our first observation is that trends in the USD tend to last for some time, so if this rally follows the pattern of previous rallies, it’s unlikely to have run its course in one year.

Secondly, previous rallies paused for a multi-month consolidation period before launching upward for the second leg of the long-term rally.

Thirdly, the USD rose sharply to previous peaks and then round-tripped back to the 80 level.

This raises the question: How high could the dollar rise in this rally?

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Categories: Economics

Why The Coming Currency Crisis Will Push The USD Higher

Chris Martenson - November 25, 2015 - 09:11
Executive Summary
  • Other currencies are inflating faster than the USD
  • The USD is still backed by a preponderance of the world's assets
  • The potential for a global currency crisis is rising
  • Why USD will be the (initial) safe haven when it arrives

If you have not yet read Part 1: How Much Higher Can The U.S. Dollar Go?, available free to all readers, please click here to read it first.

In Part 1, we reviewed the technical evidence in support of a second move higher in a multi-year U.S. dollar rally. Here in Part 2, we ask: What conditions might drive such a move higher?

To answer this question, let’s start with another question: What’s scarce in the world of foreign exchange (FX)?

We ask this because capital, profits and gains flow to what’s scarce and in demand. This boils down to supply and demand: gains go to whatever is in high demand and scarce, and whatever is not in demand and over-supplied will lose value.

Supply and Demand

Like every other commodity, currencies respond to supply and demand: whatever currency is scarce and in demand will rise, while currencies that are in oversupply and not in demand will decline.

Though many presume the world is awash in dollars as a result of Federal Reserve quantitative easing, the reality is that expansion of USD via bank loans (credit) and Fed money-creation is modest compared to the expansion of other global currencies such as China’s renminbi (RMB), a.k.a. yuan.

Consider this chart of bank credit expansion in the U.S. and in China since the onset of the “Great Recovery” in early 2009: China’s bank credit has soared by 260%, a sum that is roughly 140% of China’s entire Gross Domestic Product (GDP), while U.S. bank credit rose by a modest 12% of U.S. GDP.

If we compare M2 money supply, we find...

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Categories: Economics

Daily Digest 11/25 - Global Debt Defaults Near Milestone, Household Debt Rises At Record Rate

Chris Martenson - November 25, 2015 - 08:12
  • Puerto Rico Bond Payment Overshadows Debt Exchange Optimism
  • Singapore oil borrowers seeking more slack to avoid bond defaults
  • Global debt defaults near milestone
  • TVA racks up $6 billion shortfall in its employee pension fund
  • Quarter of adults struggling to cover healthcare costs, high deductibles, Commonwealth Fund says
  • Gov. Tom Wolf: Deal to end budget stalemate 'in deep peril'
  • U.S. GDP growth raised for third quarter
  • Chinese fertiliser firm says may not be able to make bond payment
  • Chicago pension ruling seen a loss as retirement costs climb
  • S&P revises outlook on Mass. debt to ‘negative’
  • Japan’s government urged to cut doctor fees, drug costs
  • California launches DebtWatch open data site
  • Household debt rises at fastest rate on record
  • National debt spikes $578 billion in three weeks
  • ‘Bad Bank’ Sees More Chinese Debt Souring as Economy Slows
  • Deflation, then versus now: Is Singapore in crisis as consumer prices fall?
  • CalSTRS, CalPERS okay risk reduction
  • Australian economic forecasts cut as Treasury predicts slower growth for longer
  • Stung by Oil, Distressed-Debt Traders See Worst Losses Since '08
  • Number of people served by food bank rising
  • Russia says recession over but economic pain goes on
  • More Young Adults Live With Their Parents Now Than During the Recession
  • Japan to raise minimum wage by three percent to boost consumption
  • Four nations risk breaking EU budget rules in 2016: euro zone finmins warn
  • Turkey prices hit record highs — but you should still be thankful

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Categories: Economics

5 Apps for the Sharing Economy (and Other News to Chew On)

FDA approves genetically engineered salmon, gun control debates overlook the biggest group of gun violence victims—black men—and apps that might help you put old stuff to new use.
Categories: Economics

8 Things to Know About Natural Navigation

Chris Martenson - November 24, 2015 - 10:44

Learn about how to use your surroundings and nature's signs to guide your way and rely less on electronic tools.

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Categories: Economics

Russian Jet Shot Down By NATO Member

Chris Martenson - November 24, 2015 - 10:35

This morning two Turkish F-16 fighters shot down a Russian jet, claiming that it was in Turkey’s airspace after it had ignored repeated warnings.

There are two problems with this story. The first is that Russia claims to have evidence that the Russian jet never left Syrian airspace.  The second is that even if the Russian jet had strayed into Turkish airspace, Turkey knew there was zero threat to its security from a single Russian jet. Everybody and their uncle knows what Russian jets are doing in the area.

This means that NATO, of which Turkey is a member, had given a greenlight to the idea of shooting down Russian planes.

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Categories: Economics

16 Creative Ways to Market Your Coworking Space

Shareable Magazine - November 24, 2015 - 07:36

GCUC 2015's unconference schedule. Events are a great way to market a coworking space. Photo by author.

***Share with Shareable! Give generously today to support our coverage of the real sharing economy and keep this article commercial free.***

Categories: Economics

Daily Digest 11/24 - Alberta To Reduce Emissions Drastically, There's Hope For Argentina

Chris Martenson - November 24, 2015 - 07:16
  • Canada Pension Plan Investment Board consortium agrees to US$4.6-billion deal to acquire PetCo
  • Now the truth emerges: how the U.S. fuelled the rise of Isis in Syria and Iraq
  • Home Of The Not-So-Brave
  • Putin: Downing of Russian jet over Syria stab in the back by terrorist accomplices
  • There's Hope For Argentina
  • The chilling aftershock of a brush with death
  • Why I Chose A Gun
  • Gold Price About To Bounce. Watch 1250 USD For A Trend Reversal
  • Tangled Threads Of U.S. False Narratives
  • Alberta Takes Drastic Measures To Reduce Carbon Emissions
  • Pollution from Brazil dam burst enters the sea, killing marine life

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Categories: Economics

REI Will #OptOutside on Black Friday. Can It Change Retail (and the Economy)?

All 143 REI stores will be closed on Black Friday. But what more can the co-op do to live up to its values and transform the conversation in the United States?
Categories: Economics

How Soil Health Impacts All Wealth

Chris Martenson - November 23, 2015 - 18:13

In today’s complex economy how do we progress financially from where we are today and the life of abundance we seek? This is the first question a financial advisor will ask us. It is seldom an easy question to answer because the quality of our life isn’t measured purely in financial terms. There are multiple factors including our work, our family and, fundamentally, our values. How does our quest for financial wealth balance with the people and planet upon whom we depend? Surprisingly, it all begins with soil.

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Categories: Economics

Daily Digest 11/23 - Americans Buying Tons Of Gold, Magical Thinking About ISIS

Chris Martenson - November 23, 2015 - 08:13
  • When Wall Street Gets DeFANGed: Look Out Below! 
  • Putin Tells Everyone Exactly Who Created ISIS
  • Obama Orders Inquiry Into Intelligence on ISIS
  • Magical Thinking About ISIS
  • Americans are buying tons of gold
  • PBS NewsHour Uses Russian Airstrike Footage While Claiming U.S. Airstrike Successes
  • Why SEIU Backed Hillary
  • To Save African Penguins, Humans Run a Dating Service

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Categories: Economics

Is money like energy?

Matslats - November 22, 2015 - 17:21

I am often told that money is like energy; that it flows around the community creating economic activity remaining essentially the same, never being destroyed. But this metaphor doesn't satisfy me. it works quite well for cash whether fiat or backed, but most of our money is not cash and in fact behaves very differently.

It is tempting when exploring the True nature of money, as theologians study the bread in the Eucharist, to study the tokens and the exchanges. One popular approach is to posit a substance called 'value' which resides in the tokens, either intrinsically because the tokens are made of some valuable stuff (use value), or by government decree (exchange value). This is a bit like the theory of transubstantiation in which the bread 'changes' into into the body of Christ.

But this whole approach assumes that money is some kind of stuff which moves from hand to hand. Even fiat money is a commodity insofar as I value it more than what it can buy.

When we look at the different ways of issuing money, we see clearly that 97% of modern money is NOT a commodity. It comes from nothing and exists only on bank balance sheets. This is accounting money, the kind used in mutual credit systems. And it has some other interesting properties:

  1. For every unit of money created as a liability, there is a corresponding asset created with equal and opposite value
  2. The money flows into circulation and at the appointed time some money - not necessarily the same money is pulled out of circulation and cancelled out against the asset, leaving nothing.
  3. When we look at cash we might imagine each piece moves around the economy independently of other money, like a ball bouncing randomly around a pinball machine. But with accounting money you can't mark the bills and track one piece of money just like you can't pinpoint an electron. A better analogy is a field
Suddenly I see clearly just how money is (supposed to be) like energy. By studying the substance we miss the wood for the trees. The paradox of money-as-a-commodity and money-as-a-promise ceases to be an issue once money is regarded as a circuit. Money is better understood as a wave acting in a field. It is created when no-value splits into assets and liabilities, just like when a neutral photon breaks in to a positron and an electron which go spinning off in different directions and times. It moves like a wave in a field, pushing waves before it and pulling waves behind it. Like electrons around a circuit, leaping from atom to atom. But what matters is not the atoms or the leaping, but the circuit. Peaks and troughs, credit and debt, savers and borrowers in an eternally balanced dance.

At least, that's when it works.

When we treat money as a commodity, the flows get out of sync. When we hoard money and relend the same money twice we prevent it from returning to source. When we just read the peaks and not the troughs, we miss the coming tsunami.

When, for cultural reasons, borrowers take all the responsibility and risk, while lenders charge rent on their absent 'property' the two parties will never dance well together, leading to gluts and dearths and arhythmia.

So I think that credit money, accounting money is very much like electricity, and the conceptual leap we need to make if we want master it is as big as from Newtonian mechanics to Quantum mechanics.

Categories: Blogs

Mike Maloney: The Rollercoaster Crash

Chris Martenson - November 22, 2015 - 08:53

Precious metals sank to 5-year lows during this past week. The long painful price decline that began at the end of 2011 still continues unabated. Holders of gold & silver are understandably wondering if their faith in precious metals has been misplaced.

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Categories: Economics

Daily Digest 11/22 - Paris Climate March Canceled, Migrant Crisis 'Only A Warm-Up'

Chris Martenson - November 22, 2015 - 07:47
  • Obama Says He Won’t Relent in Fight Against ISIS Amid Questions About Intelligence Reports
  • To France from a Post-9/11 America: Lessons We Learned Too Late
  • ISIS Women and Enforcers in Syria Recount Collaboration, Anguish and Escape
  • Gwynne Dyer: This migrant crisis is only a warm-up for the main act
  • Weekend Edition: Doug Casey on Education
  • Israeli Prime Minister pushes for control of Golan after oil discovery
  • In California, Stingy Water Users Are Fined in Drought, While the Rich Soak
  • Paris Climate March Is Canceled Over Security Concerns

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Categories: Economics