Daily Digest 6/18 - Italian PM Seeks Austerity Relief, Young Americans ‘Living Paycheck To Paycheck’
- U.S. Postal Service: ‘The Financial Hole We’re In Is So Deep’
- Japan continues to count cost of idled reactors
- Montreal city employees stop work to protest pension bill
- IMF says Italy's recovery fragile, needs 'bold, quick' reforms
- Italian PM seeks austerity relief in return for Juncker backing
- France's State Auditor Warns on Deficit Target
- Survey: 56 Percent Of Young Americans ‘Living Paycheck To Paycheck’
- Savings cuts may be wild card in Detroit bankruptcy vote
- Portugal to be monitored until 2045 despite bailout exit
- American Airlines cutting flights to Venezuela
Cooperatives represent a growing segment of the economy with an estimated 30,000 enterprises and 100 million members in the U.S. alone. A great way to bring democracy into the workplace, coops can be built from scratch, but they can also be created by converting existing businesses into worker-owned cooperatives. For retiring business owners as well as entrepreneurs, selling a business to employees is a way to strengthen the business while getting a return on investment.
- Moody’s cuts outlook for Canadian bank debt to negative over ‘bail-in’ regime
- Students Show Common Compound Breaks Down Air Pollution
- Facebook Helps Car Sharing Catch On
- Silver Chart And Sentiment Show Potentially Very Sharp Rally
- The Real, Forgotten Meaning Of 'The Wizard Of Oz'
- U.S. Education Secretary Arne Duncan says politics led to Gov. Mary Fallin's repeal of Common Core academic standards
- Thirsty West: Why Californians Will Soon Be Drinking Their Own Pee
- LNG: The Long, Strategic Play for Europe: Interview with Robert Bensh
With Summer Solstice right around the corner for those of us in the Northern Hemisphere, this is the peak time to be outside, among friends, enjoying all that the season has to offer. And what better way to celebrate than by doing a whole lot of sharing?
What happens after the crypto-revolution? | Matslats - Community currency engineer
Bitcoin may disintermediate banks, but that will not change the economy, save the environment or make society fairer. One peaceful way to prevent our governments driving us to collective suicide is to get behind a new generation of P2P credit projects.
The situation in Iraq is serious, and is probably going to get worse before it gets better. The potential for this recent action to morph into a regional conflict is very high. That that means that oil could go a lot higher, and if it does, we can expect the odds of a global economic recession and an attendant financial crisis to go up considerably from here.
- Why this Iraq crisis comes at a very vulnerable time for world oil markets
- The three mostly likely outcomes to the current crisis, and the resulting oil price of each
- ISIS remains contained from here
- ISIS takes Bagdad and points south
- A more widespread Middle East conflict erupts
- The growing risk to the global economy & financial markets
- What concerned individuals should do now
The biggest risk to the world economy from the developing Iraq situation is that the price of oil could spike higher, killing the sputtering economic 'recovery' and triggering both a new global Recession and financial crisis.
Now, here's the truly interesting part of where we are in this story.
The IEA (International Energy Agency) has recently called for OPEC to deliver more oil by year end, which I wrote about here, and especially called upon Saudi Arabia to do so because world oil supplies are incredibly tight right now. OPEC is the only entity in the world with any identifiable 'swing production', as all of the non-OPEC nations are alrady producing at maximum capacity. At least, the hope is that OPEC has additional production capacity.
In the prior piece mentioned, I wrote that of the 12 OPEC members, 8 are in a sustained decline trend for a variety of geological or political reasons. Only 4 are not. Only 1 actually has shown a significant increase in oil production over the past few years -- and that was Iraq, which had added 1.5 mbd recently:
Here's what's at risk if the ISIS rebels push further south:
The IEA is already calling on OPEC to deliver 1.2 mbd more by year end 2014. If Iraq's production is lost, then we can just add that amount to the 'needed total' that the IEA has requested be brought on line by Saudi Arabia, an amount that I already sincerely doubt they can meet. If even a portion of Iraq's production is lost, then we can just kiss $110 barrel good-bye and say hello to $150 per barrel oil. War is messy and it's never easy to predict what might happen, but we'd be foolish to not consider what might happen here.
The true game-changer for the world will come when...
Dancing Rabbit’s Exchange Local Money System: The Promise of Local Currencies and Interest-Free...
Place-specific currencies can provide critical financing to the small businesses that keep local communities connected and thriving.
- Andy Hoffman: Negative Interest Rates Signal Final Currency War
- There are not enough resources to support the world's population
- FOR SALE: 29,656.51306529 bitcoins
- Starbucks to Provide Free College Education to Thousands of Workers
- Supreme Court Denies Appeal by Argentina in Debt Case
- Hey Canada, Why Don’t You Have Food Stamps?
- Thirsty West: The No-Water Way
- 'Suspicious device' explodes at Nogales power plant
On Friday, 140 San Franciscans gathered to brainstorm affordable housing solutions at Hack the Housing Crisis, a one-day event hosted by the San Francisco Public Press and Shareable. The gathering of housing professionals, public officials, attorneys, activists and citizens challenged common assumptions about housing, connected people and organizations, and brought innovative solutions to the table.
Top photo credit: Yusuke Kawasaki.
- Graduates Cautioned: Don’t Shut Out Opposing Views
- What Happens If You Have No Welfare and No Job?
- Chicago gas prices welcome summer with rising gas prices
- Silver To Gold Ratio as a Timing Indicator
- Jim Grant: Gold is a long-term opportunity
- Study: Chicago home prices up 20% from 1st quarter 2013
- Detroit Reaches Deal With Bondholders in Bankruptcy Talks
- The Energetic Evolution of the US Food System
- Evidence Continues to Mount That a Short-Term Top Is In
- The Fear Factor
- Tapped in: How your phone gives you up to companies and criminals
- Who Earns Minimum Wage?
- U.S. Marshals Are Selling 29,656.51306529 Bitcoin
- Why Tesla Gave Up On Patents
- Oil Industry in Iraq Faces Setback to Revival
- The Energetics of Food Distribution
A simple tutorial on how to make soap using the most basic of ingredients.
- U.S. Economic Recovery Looks Distant as Growth Stalls
- Who Is Middle Class?
- 12 Numbers About The Global Financial Ponzi Scheme That Everyone Should Know
- Easy Money
- Tony Abbott seeks alliance to thwart President Obama on climate change policy
- Voter Fraud Is Rare, but Myth Is Widespread
- Developing The Elusive Home-based Fuel Cell
- Revealed: Asian slave labour producing prawns for supermarkets in US, UK
Today's financial markets make a mockery out of sanity and logic. The difference between what SHOULD happen and what IS happening is perhaps the greatest it has been in our investing lifetimes.
If you're perplexed, flummoxed, frustrated, stymied, enraged, bored, irritated, insulted, discouraged -- any or all of these -- by the ever-higher blind grinding of asset prices over the past several years, despite so many structural reasons for concern, you have good reason to be.
- Planning determinants for:
- Precious Metals
- Bullion: physical
- Bullion: stored & tradable
- Stocks & bonds
- Remaining long
- Strategies for shorting
- Real Estate
- Debt Management
- Income Security
- Local Investing
- Personal Preparations
- Community Preparations
- Precious Metals
Though we strongly advise in Part 1 to move to cash, it's essential to remember that this is largely a transitional maneuver. The goal is to keep your powder dry during the coming deflationary storm, and then deploy it in as intelligently and timely a manner as possible when your dollars can buy quality assets at excellent discounts. In this Part 2, we walk you through the principal components for building your investing action plan for both in advance of, and when, that time arrives.
Also, we understand that for reasons of options and attitude, simply moving your portfolio 100% into cash is unpalatable or unrealistic for a number of people. Some of you will want to, perhaps even need to, have a percentage of your capital remain in the financial markets for the foreseeable future. So we discuss both long and short strategies for you to evaluate and pick whichever best suits your personal situation.
It's important to understand that the solution set contained below is a superset for your consideration and not a one-size-fits-all recipe (i.e. do NOT take it as personal investment advice!). As strongly urged in Part 1, its best use is as a structured guide for you and your financial adviser to use together in discussing and developing an investment plan customized to your goals, needs and risk tolerance.
Suffice it to say, everything discussed in this report (even the % cash component mentioned in Part 1) should be reviewed with your financial adviser before taking any action. Am I being excessively repetitive here in order to drive this point home? Good...Precious Metals
One of the biggest mysteries that continues to perplex Chris and me is: Why is central bank liquidity creating price bubbles in every asset class EXCEPT the one you would expect it to most?
Here we have everything from Facebook stock to Las Vegas houses to junk bonds to Beats headphones catching bids at insane prices. As Chris discussed last week with economist Steen Jakobsen, the data for stocks over the past year shows that the worse the balance sheet, the better a company's stock performance has been.
Why is everything down to pure crap being lifted by the giant pool of money sloshing around the planet, but prices for gold and silver -- arguably the highest-grade assets to own -- are so badly languishing?
I won't rehash all of our speculations for why, as there are dozens of recent articles on this site speculating on the topic. But as this year's mega-report on gold drives home, the actual fundamentals for owning precious metals not only remain intact, but they are expanding materially each year.
Well, the good news here is that the precious metals market is the one place you don't have to wait for the "buy at pennies on the dollar" experience. It's here now.
Prices are not only far below what the fundamentals justify, but...
In this week's Off the Cuff podcast, Chris and Mish discuss:
- Voter Revolt
- Eric Cantor's loss suggests populace is getting fed up
- Iraq Gets Worse
- Now a failed operation of two Presidencies
- Manic Markets
- Priced for 0% risk
- Hazardous Housing Market
- Already nosing over?
- Shrouding China's gold trade, more imports go under radar
- School officials meet again with Council members on funds
- Great Moderation 2.0 Seen Lasting by JPMorgan Until Fed Shifts
- The Mental-Health Consequences of Unemployment
- Doug Casey: US in Eye of ‘Gigantic Financial Hurricane’
- U.S. Researchers Open Door To Plastics Replacing Hot Lithium In Batteries
- IEA Says the Party’s Over
- Jobless Claims in U.S. Increased Last Week to 317,000