en Explaining "Real" Money To Your Children <p><a href=""><em>Submitted by The Dissident Dad via Mike Krieger&#39;s Liberty Blitzkrieg blog</em></a>,</p> <p>Money is a very important part of all our lives. <strong>The understanding of money, how it works, and how we treat it can dramatically improve or diminish our quality of life.</strong></p> <p>Based on my writings and videos on YouTube, you might think my definition of money is gold and silver, but it&rsquo;s not. <strong>Money is simply a medium of exchange. It can be represented by everything from gold to horse manure</strong>. Okay, maybe not horse manure, but it&rsquo;s not a far stretch with the most popular form of money today being central bank notes loaned out into existence.</p> <p><strong>The state would love to have you believe that money can only originate&nbsp;from itself,</strong> yet&nbsp;people have organically started&nbsp;to use bitcoins and other crypto-currencies as a medium of exchange. Nevertheless, our&nbsp;culture&nbsp;continues to worship fiat currency as if it is the only type of money. I can&rsquo;t change the fact that at this moment in time the U.S. dollar is the measuring stick for goods and services when it comes to prices. <strong>Trying to disprove and dispute&nbsp;this fact was something I struggled with early on when I used to teach my children that only gold and silver were money.</strong></p> <p>Today, I simply teach them about money as&nbsp;a medium of exchange.</p> <p><strong>Everyone loves making money. </strong>Just a few hours ago, my 3-year-old daughter brought me a cup of coffee with her mom. I thought it would be fun (since she helped make it) to hand her some change sitting on my desk, kind of like a tip. I told her &ldquo;thank you&rdquo; and handed it to her. Her little face lit up, smiling and giggling. She was so happy to run off to her piggy bank and make some new deposits.</p> <p>In my house, while we&nbsp;refer to dollars as&nbsp;money, we also like to barter. I usually trade them their favorite fruit, pomegranate seeds, for kisses. We also enjoy going to the local coin store to buy some silver bullion.</p> <p>While gold and silver are undoubtedly honest money, bitcoin represents a really cool medium of exchange as well. It helps us realize that money is just an idea. It&rsquo;s whatever proves most useful and stable to trade with over time.</p> <p><strong>There is so much to teach children when it comes to&nbsp;money, but to start, I think a good step in the right direction is to not simply philosophically and intellectually capitulate&nbsp;by framing money solely in terms of state-sponsored currency.</strong></p> <p>Central banks and fascist governments control humanity&nbsp;through a virtual monopoly on money issuance and distribution, <strong>which is why I am doing my best as a father to make it clear that money can be anything.</strong>&nbsp;No one truly gets any added value from holding a stack of paper. It&rsquo;s our time that is of value, and the things we own that make our lives better. But money itself is just a means to an end.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="379" height="304" alt="" src="" /> </div> </div> </div> Bitcoin Central Banks Tue, 23 Dec 2014 03:50:37 +0000 Tyler Durden 499461 at The Doom Boom: US Families Increasingly Prepared For "Modern Day Apocalypse" <p>From the outside America may seem to be a land of endless optimism and confidence. But, <a href="">as Sky News reports,</a> an increasing number of Americans seem to think it is danger of falling apart, and they&#39;re preparing for the end. <em>&quot;We&#39;re not talking about folks walking around wearing tin foil on their heads,; we&#39;re not talking about conspiracy theorists. I&#39;m talking about professionals: doctors and lawyers and law enforcement and military. <strong>Normal, everyday people. They can&#39;t necessarily put their finger on it. But there&#39;s something about the uncertainty of our times. They know something isn&#39;t quite right</strong>.&quot;</em></p> <p>&nbsp;</p> <p><em><strong>A now-privately-held ex-nuclear-missile base in Kansas has been turned into luxury &quot;post-apocalyptic refuge for the very rich&quot;</strong></em></p> <p><a href=""><img alt="" src="" style="width: 600px; height: 444px;" /></a></p> <p><a href=""><img alt="" src="" style="width: 600px; height: 400px;" /></a></p> <p><em><u><strong>&quot;It&#39;s an undergorund complex straight out of a bond flick&quot;</strong></u></em></p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="//" width="560"></iframe></p> <p>&nbsp;</p> <p><a href=""><em>As Sky News reports</em></a>,</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>They call themselves preppers. <strong>Mainstream suburban Americans hoarding supplies and weapons while leading otherwise perfectly normal lives.</strong></p> <p>&nbsp;</p> <p>...</p> <p>&nbsp;</p> <p>[they are] afraid of some impending catastrophe but also what that will do to American society.</p> <p>&nbsp;</p> <p>&quot;I think that is what I&#39;m scared of the most,&quot; he told Sky News, <strong>&quot;Not the actual events. I&#39;ve already prepared for that. It&#39;s the aftermath, when there are no police, there are no military to protect us, we&#39;re going to be protecting ourselves.&quot;</strong></p> <p>&nbsp;</p> <p>The trigger could be a terrorist attack, a monetary collapse, cataclysmic failure in power generation, or a natural disaster. Preppers fear what comes next and<strong> have no faith in either their government or human nature.</strong></p> <p>&nbsp;</p> <p>&quot;Once people use up all their resources,<strong> they&#39;re going to come after the people that prepared and had more resources. So basically we have to take care of ourselves.</strong>&quot;</p> <p>&nbsp;</p> <p>...</p> <p>&nbsp;</p> <p><u><strong>&quot;We&#39;re not talking about folks walking around wearing tin foil on their heads,&quot; Jay tells Sky News. &quot;We&#39;re not talking about conspiracy theorists.</strong></u></p> <p>&nbsp;</p> <p><u><strong>&quot;I&#39;m talking about professionals: doctors and lawyers and law enforcement and military. Normal, everyday people. They can&#39;t necessarily put their finger on it. But there&#39;s something about the uncertainty of our times. They know something isn&#39;t quite right.&quot;</strong></u></p> <p>&nbsp;</p> <p>Jay is a celebrity in the strange but increasingly mainstream world of preppers, writing prepper books and touring America, speaking at prepper expos where a bewildering range of survival supplies and techniques are on offer.</p> <p>&nbsp;</p> <p>...</p> <p>&nbsp;</p> <p><u><strong>But it&#39;s also arguably a sign of a country coping with economic decline. The end of the American Dream has left people more uncertain about their future, and their country&#39;s.</strong></u></p> <p>&nbsp;</p> <p>Katy Bryson is in Jay&#39;s prepper network. Prepping, she says, puts Americans back in charge of their destiny.</p> <p>&nbsp;</p> <p><strong>&quot;They&#39;re not in control of whether they lose their job or not but they are in control of whether they are prepared. So I feel like that&#39;s why the industry is just booming right now for preparedness,&quot;</strong> Katy added.</p> </blockquote> <p>*&nbsp; *&nbsp; *<br /><a href=""><em>Read and watch more here...</em></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="477" height="318" alt="" src="" /> </div> </div> </div> Bond Tue, 23 Dec 2014 03:30:37 +0000 Tyler Durden 499451 at The Many Phases Of Silver (Part 1) <p>Since the early days of civilization, the ancients connected the brilliance of silver to the moon. Artemis, the Greek goddess of the moon, wore silver sandals and shot from a silver bow and arrow. This lunar comparison might be fitting because like the moon, silver also has many phases. <strong>The properties of silver make it the most dynamic of precious metals.</strong></p> <p><strong>Evidence shows that silver was first separated from lead as far back in 3,000 BC.</strong> Many ancient civilizations used silver as money, including the Greeks, Romans, and Ottomans. This was because of silver&rsquo;s natural properties which make it malleable, divisible, durable, consistent, and rare.</p> <p><strong>Throughout history, people have used silver to prevent and combat illness. </strong>We now know today that silver has unique and impressive antibacterial properties that help it break down the cell walls of harmful bacteria. Silver also is the most conductive metal, and one of the three most reflective metals (along with gold and aluminum, and depending on the wavelength of light). These properties help make silver one of the most important industrial metals, with uses from photography to solar cells.</p> <p>&nbsp;</p> <div style="clear:both"><a href=""><img border="0" src="" /></a></div> <div>Courtesy of: <a href="">Visual Capitalist</a></div> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="806" height="694" alt="" src="" /> </div> </div> </div> Precious Metals Tue, 23 Dec 2014 03:25:48 +0000 Tyler Durden 499460 at Welcome To The Recovery: US Box Office Spend Plunges To Lowest Since 2000 <p>While the cancellation of 'The Interview' wiped billions off the US Box Office take in 2014 (&lt;/sarc&gt;), <strong>ticket sales in North America will total roughly $10.5 billion, according to <a href=";smid=nytcore-iphone-share&amp;_r=1">The NY Times</a>, the lowest since 2000</strong> (after inflation). Regal Cinemas and AMX Theatres have seen profits collapse and Carmike Cinemas has plunged to a loss as major movie delays (from Pixar and Universal), "pirating" of several movies (The Expendables 3 and Annie) before their release, and studios suffering one dud after another (Warner Bros.) the <strong>4% YoY decline</strong> - for what is ultimately an affordable luxury - suggests the <em><strong>gas-price-savings are going anywhere but discretionary spending</strong></em> <a href=""><em>(just as we noted previously)</em></a>.</p> <p>&nbsp;</p> <p>Not a pretty picture of recovery...</p> <p><a href=""><img src="" width="290" height="659" /></a></p> <p>&nbsp;</p> <p>Ticket sales at North American theaters gave studios <strong>mixed messages about consumer confidence</strong>, <a href=";smid=nytcore-iphone-share&amp;_r=1">as The NY Times reports</a>, </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The delay of major movies from Pixar and Universal. The pirating of “The Expendables 3” and “Annie” before their release. Warner Bros. suffering one dud after another. Hackers forcing the cancellation of a big Sony comedy.</p> <p>&nbsp;</p> <p>Hollywood does not want a sequel to 2014.</p> <p>&nbsp;</p> <p><strong>For the year, ticket sales at North American theaters will total roughly $10.5 billion, a 4 percent decline from a year earlier,</strong> according to projections by the box-office data firm Rentrak. Attendance will drop by about the same percentage.</p> <p>&nbsp;</p> <p>Annual fluctuations of that size are not uncommon at the domestic box office, which rises and falls based on the strength of the movie lineup. <span style="text-decoration: underline;"><strong>Still, that total would give the movie business its lowest tally since 2000, after accounting for inflation.</strong></span></p> </blockquote> <p>Cyclical or Structural decline...</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Whenever ticket sales take a tumble, Hollywood pulls the <strong>assertion of cyclicality out of its hip pocket</strong>: Just wait until next year — next year will be our best ever.</p> <p>&nbsp;</p> <p><strong>Hollywood’s primary worry is that moviegoing in North America is changing along generational lines.</strong> In particular, young ticket buyers traditionally turned out weekend after weekend — with the quality of the films mattering less than the opportunity to fraternize. But this group is staying home more often.</p> <p>&nbsp;</p> <p>The Nielsen Company said this month that <span style="text-decoration: underline;"><strong>the moviegoing of Americans age 12 to 24 dropped 15 percent in the first nine months of 2014</strong></span>, compared with the same period a year earlier.</p> </blockquote> <p>And then there's this...</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><span style="text-decoration: underline;"><strong>“It’s been a rather sluggish market since Thanksgiving,” </strong></span>said Chris Aronson, president of domestic distribution for 20th Century Fox.</p> </blockquote> <p>But but but the gas-price savings...and discretionary spending... what about the narrative!!!</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="227" height="185" alt="" src="" /> </div> </div> </div> Consumer Confidence Cyclicality Nielsen recovery Tue, 23 Dec 2014 02:50:37 +0000 Tyler Durden 499458 at The Austrian Case Against Economic Intervention <p><a href=""><em>Submitted by Patrick Barron via Mises Canada</em></a>,</p> <p><strong>The basic unit of all economic activity is the un-coerced, free exchange of one economic good for another based upon the ordinally ranked subjective preferences of each party to the exchange. </strong>To achieve maximum satisfaction from the exchange each party must have full ownership and control of the good that he wishes to exchange and may dispose of his property without interference from a third party, such as government. The exchange will take place when each party values the good to be received higher than the good that he gives up. The expected, but by no means guaranteed, result is a total higher satisfaction for both parties. Any subsequent satisfaction or dissatisfaction with the exchange must accrue completely to the parties involved. The expected higher satisfaction that one or each expects may not be dependent upon harming a third party in the process.</p> <p><strong>Several observations can be deduced from the above explanation. </strong>It is not possible for a third party to direct this exchange in order to create a more satisfactory outcome. No third party has ownership of the goods to be exchanged; therefore, no third party can hold a legitimate subjective preference upon which to base an evaluation as to the higher satisfaction to be gained. Furthermore, the higher satisfaction of any exchange cannot be quantified in any cardinal way, for each party&rsquo;s subjective preference is ordinal only.<strong> This rules out all utilitarian measurements of satisfaction upon which interventions may be based. </strong>Each exchange is an economic world unto itself. Compiling statistics of the number and dollar amounts of many exchanges is meaningless for other than historical purposes, both because the dollars involved are not representative of the preferences and satisfactions of others not involved in the exchange and because the volume and dollar amounts of future exchanges are independent of past exchanges.</p> <p><strong>Let us examine a recent, typical exchange that violates our definition of a true exchange yet is justified by government interventionists today&ndash;subsidized, protected, and mandated use of ethanol. </strong>Number one, the use of ethanol is coerced; i.e., the government requires its mixture into gasoline. Government does not own the ethanol, so it cannot possibly hold a valid subjective preference. The parties forced to buy ethanol actually receive some dissatisfaction. Had they desired to purchase ethanol, no mandate would have been required. Therefore, including the dollar value of ethanol sales in statistics purporting to measure the societal value of goods exchanged in our economy is meaningless. This is just one egregious example of many such measurements that are included in our GDP statistics purporting to convince us that we have &ldquo;never had it so good&rdquo;.</p> <p><strong>Our flawed view that governments can improve satisfaction caused us to misjudge the military threat of the Soviet Union for decades. </strong>Our CIA placed western dollar values on Soviet production data to arrive at the conclusion that its economy was growing faster than that of the US and would surpass US GDP at some point in the not too distant future. Except for very small exceptions, all economic production resources in the Soviet Union were owned by the state. This does not necessarily mean that it was possible for the state to hold a valid subjective preferences, for those who occupied important offices in the state held them at the sufferance of what can only be described as gang lords, who themselves held office very tentatively. State ownership is not real ownership. Those in positions of power with responsibility over resources hold their offices for a given period of time and have little or no ability to pass their office on to their heirs. Thus, the resources eventually succumb to the law of the tragedy of the commons and are plundered to extinction. Nevertheless the squandering of the Soviet Union&rsquo;s commonly held resources was tallied by our CIA as meeting legitimate demand.</p> <p><strong>Professor Yuri Maltsev saw first-hand the total destruction of the Soviet economy. In <a href=""><em>Requiem for Marx</em></a> he gives a heartbreaking portrayal of the suffering of the Russian populace through state directed, irrational central planning that did not come close to meeting the people&rsquo;s legitimate needs, while our CIA continued to crank out bogus statistics of the supposed strength of the Soviet economy upon which the Reagan administration based its unprecedented peacetime military expansion.</strong> Maltsev, an Austrian economist, was unable to convince Gorbachev&rsquo;s government to allow private ownership of the nation&rsquo;s resources. Without private ownership of production resources, there could be no true ordinally held subjective preferences for their rational allocation. Gorbachev&rsquo;s other reforms were half-hearted and mis-implemented. They were insufficient to prevent the imminent collapse of the Soviet economy.</p> <p>With the proviso that no exchange may harm another, as explained so well in Dr. Thomas Patrick Burke&rsquo;s book <a href=";ie=UTF8&amp;qid=1416854377&amp;sr=1-1&amp;keywords=No+Harm+by+Patrick+Burke"><em>No Harm: Ethical Principles for a Free Market</em></a>, we are led to the conclusion that<strong> no outside agency can create greater economic satisfaction than can a free and un-coerced exchange</strong>. The statistics that support such interventions are meaningless, because they cannot reflect the satisfaction obtained from true ordinally held subjective preferences. Once this understanding is acknowledged and embraced, the consequences for the improvement of our total satisfaction are tremendous.<strong> Our economy can be unshackled from government directed economic exchanges and regulations.</strong> The &ldquo;no harm&rdquo; principle can be enforced by normal commercial and criminal law. <em>For example, since one may not pollute the waters that are used by others, normal tort law, which is based primarily upon precedence, would replace costly EPA compliance regulations, which are based primarily upon statute law and bureaucratic regulation. All labor laws can be scrapped, which would reduce the cost that businesses must bear to support extensive human resources departments, which have become little more than arms of government agencies. Freedom to engage in any economic exchange that causes &ldquo;no harm&rdquo; would extend internationally, too. All trade restrictions would be seen to be illogical and unnecessary. Satisfaction increases with greater opportunities for un-coerced exchanges; therefore, international trade restrictions are counter-productive. The revival of the free trade movement would benefit world peace and result in fewer scarce resources directed to national defense.</em></p> <p>In conclusion we see the consequences that can accrue from a better understanding of the true nature of economic exchange. <em><strong>Be on your guard for those who claim to be able to improve our satisfaction and protect us from harm through expansion of government coercion in the market.</strong></em></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="663" height="522" alt="" src="" /> </div> </div> </div> Tue, 23 Dec 2014 02:15:37 +0000 Tyler Durden 499457 at Meet The Future Of Trading: A 25-Year-Old... Math PhD <p><em>Forget the middle-aged belt-and braces stockbroker who 'knows' a good stock. Ignore the 5-star tech analysts who never saw a startup he didn't like (with your money). </em>Meet 25-year-old math PhD Sam Barnett, CEO of SBB Research - a quant hedge fund - who, instead of wild extrapolations and Keynesian hockey-sticks, <strong>trades the market by "using data to mine information before it is encoded into the markets."</strong> </p> <p><a href=""><img src="" width="309" height="271" /></a></p> <p>&nbsp;</p> <p>While several of the CNBC team flounders to show why their commissions are worth it, and why a 25-year-old could not possibly 'know' anything, we for once agree with their premise - <strong>this IS the future of trading - 25-year-old math PhDs mining data faster than a fat finger can press buy.</strong></p> <p><iframe src=";size=530_298" width="530" height="298"></iframe></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="309" height="271" alt="" src="" /> </div> </div> </div> Tue, 23 Dec 2014 01:40:37 +0000 Tyler Durden 499456 at Name The Exponential Chart <p>It's not just the exponential rise in US debt that threatens the future 'freedom' of Americans...</p> <p>&nbsp;</p> <p><a href=""><img src="" width="600" height="428" /></a></p> <p><em>Source: Goldman Sachs</em></p> <p>&nbsp;</p> <p><a href=""><span style="text-decoration: underline;"><strong>Answer here (guess first!!)</strong></span></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="670" height="478" alt="" src="" /> </div> </div> </div> Goldman Sachs goldman sachs Tue, 23 Dec 2014 01:05:37 +0000 Tyler Durden 499455 at Former Airline CEO Claims US Military Shot Down MH370 Near Diego Garcia <p><strong>A second senior airline industry source has revealed his belief that there is some sort of conspiracy behind the disappearance of Malaysia Airlines flight MH370.</strong> <a href=";google_editors_picks=true&amp;nk=6f03489e59bf485fe41d019d5b0061db">As The Herald Sun reports, </a>Emirates president and CEO Sir Tim Clark made world headlines in October when he revealed his doubts about the fate of the missing plane, which disappeared early in the morning of March 8 this year. Now a second senior airline industry source has voiced his doubts about the fate of the plane, with the even wilder <strong>claim that the Boeing 777 may have been shot down by US military personnel who were fearing a September 11-style attack on the US Navy base on Diego Garcia</strong>.</p> <p>&nbsp;</p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="//" width="560"></iframe></p> <p><a href=";google_editors_picks=true&amp;nk=6f03489e59bf485fe41d019d5b0061db"><em>As The Herald Sun reports,</em></a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Now a second senior airline industry source has voiced his doubts about the fate of the plane, with the even wilder claim that the Boeing 777 may have been shot down by US military personnel who were fearing a September 11-style attack on the US Navy base on Diego Garcia.</p> <p>&nbsp;</p> <p><strong>The former boss of Proteus Airlines, Marc Dugain, put forward his theory that the Malaysia Airlines plane crashed near the remote Indian Ocean island in a recent edition of Paris Match.</strong></p> <p>&nbsp;</p> <p>Dugain speculated that the plane&rsquo;s computers may have been subject to a remote hacking, or an on-board fire, which prompted a diversion from its flight path.</p> <p>&nbsp;</p> <p><strong>Diego Garcia is a British territory but has been used as a significant US military base and refuelling stop since the 1970s.</strong> It is currently home to 1700 military personnel and 1500 civilian contractors.</p> <p><a href=""><img alt="" src="" style="width: 600px; height: 461px;" /></a></p> <p><strong>Many conspiracy theories about the island have been aired since the disappearance of MH370,</strong> but the US government has repeatedly denied that the plane came anywhere near the remote territory, which is 3600km from Africa&rsquo;s east coast and 4700km northwest of Australia.</p> <p>&nbsp;</p> <p><strong><u>Dugain said the downing of the plane may have come about for a range of different reasons, including the possibility that it may have been shot out of the sky by the US military, who were fearing a September 11-style attack on the base.</u></strong></p> <p>&nbsp;</p> <p>He pointed to the testimony of residents of the Maldives, who reported seeing an airliner travelling towards Diego Garcia on March 8, but whose claims were largely dismissed.</p> <p>&nbsp;</p> <p><strong>Dugain said a fisherman on Kudahuvadhoo island told him a &ldquo;huge plane ... with red and blue stripes on a white background&rdquo; had flown overhead at a low altitude.</strong></p> <p>&nbsp;</p> <p>The former airline boss claimed he <strong><u>had also been shown pictures of a strange object that had washed up on a beach of neighbouring Baraah island.</u></strong></p> <p>&nbsp;</p> <p>According to Dugain, two aviation experts and a military officer believed the object was an <strong><u>empty Boeing fire extinguisher, </u></strong>but the mystery object was subsequently seized by the Maldives military.</p> <p>&nbsp;</p> <p>In the Paris Match story, <strong><u>Dugain also appeared to dismiss the &ldquo;handshake technology&rdquo; evidence supplied by the UK company Inmarsat, saying that such organisations were &ldquo;very close to intelligence agencies&rdquo;.</u></strong></p> <p>&nbsp;</p> <p><strong>The wild claims come as grieving family members of MH370 passengers accused the Chinese government of failing to provide them with regular updates on the search for the aircraft, which was carrying 239 people at the time that it disappeared.</strong></p> <p>&nbsp;</p> <p>About 30 people, many of them elderly, took part in a recent protest in Beijing in which they demanded to speak to government officials.</p> <p>&nbsp;</p> <p><strong>&ldquo;My son is alive and I want to know what the government is doing to find him,&rdquo;</strong> said Liu Dianyun, the mother of one of the passengers.</p> <p>&nbsp;</p> <p>Australia&rsquo;s Joint Agency Coordination Centre recently announced that <strong>it had scoured 20 per cent of the search area where MH370 is thought to have gone down.</strong></p> <p>&nbsp;</p> <p>On Sunday investigators said they could finish scouring the priority zone search area by May if there were no delays with vessels, equipment or weather.</p> <p>&nbsp;</p> <p>Search efforts will continue during the festive period.</p> <p>&nbsp;</p> <p>The Fugro Equator is scheduled to depart for Fremantle on Wednesday after finishing its current survey, and the GO Phoenix continues its underwater search.</p> <p>&nbsp;</p> <p>More than 200,000 sq km has been surveyed and 11,000 sqkm of the sea floor has been searched.</p> </blockquote> <p>*&nbsp; *&nbsp; *</p> <p>Will we ever learn the truth?</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="626" height="481" alt="" src="" /> </div> </div> </div> Australia Boeing headlines Testimony Tue, 23 Dec 2014 00:30:37 +0000 Tyler Durden 499454 at How Japan Bankrupted Itself - Lessons For Europe <p><a href=""><em>Submitted by Daniel Stelter via The Globalist blog</em></a>,</p> <p>Following the start of Abenomics in 2012, Japan moved back to the center of attention of global financial markets. After two and a half decades of economic stagnation, hopes were high that Japan would escape its long stagnation and deflation.</p> <p><strong>Plenty of economists around the globe hoped that, in so doing, Japan would show the western world, mainly the Eurozone, the way to do the same and avoid a similar long period of low growth and stagnating incomes.</strong></p> <p>Conversely, the failure of Abe&rsquo;s plan for Japan&rsquo;s recovery would not only be a disaster for the country of the rising sun.</p> <p>It would also be very bad news for central bankers and politicians in the west as well. <strong>It would prove that Keynesian policies don&rsquo;t work in a world of too much debt and shrinking populations.</strong></p> <p>To assess the probabilities of these scenarios, it is worthwhile to have a deeper look on how Japan ended up in the current economic malaise.</p> <h4><u>The erstwhile poster child</u></h4> <p><strong>Japan served globally as a role model for economic development in the 1980s. </strong>After an economic miracle following the Second World War, Japanese companies started to dominate in leading industries like machinery and equipment, automotive and consumer electronics.</p> <p>Similar to today&rsquo;s views on China, back then books explaining the Japanese miracle and describing the unstoppable rise of the nation to the leading economic powerhouse of the world were highly popular around the globe.</p> <p>Japanese corporations also began to invest in prestigious artwork and trophy real estate assets around the world. When the Japanese bubble &ndash; like all bubbles &ndash; deflated from 1990 onwards, asset prices collapsed. However, credit levels in Japan remained high.</p> <p><strong>Japan acted just as the Keynesian textbook prescribes.</strong> It compensated a deep drop in domestic demand with higher government expenditures. As a result, many companies, which in reality were insolvent, were not restructured &ndash; but kept alive with low interest rates and bridge financing.</p> <p><strong>What happened over the past 25 years is simple</strong>: <em><u>Japan&rsquo;s corporate sector was a net saver and reduced its leverage. Private households also reduced their savings significantly, from levels of 20% to 3% today. Finally, the Japanese government built up a huge debt load, rising from about 50% of GDP at the end of the 1980s to close to 250% today.</u></em></p> <h4><u>Shrinking workforce and debt service</u></h4> <p><strong>Despite all of this, the efforts to reignite growth in Japan failed.</strong> The only results were a significant increase in the overall debt burden of the country and a change of the principal debtor. That debtor is now the Japanese government &mdash; instead of Japanese corporations as before.</p> <p><strong>At the same time, the workforce in Japan started to shrink. </strong>Actually, Japan reached the peak in its workforce at the same time as its financial bubble peaked. That suggests that the peak in the workforce became an additional driver for the build-up of the bubble.</p> <p>If so, this would be another disquieting parallel to Europe, where the labor force also peaked in parallel to the credit bubble in 2007.</p> <p><strong>One fact is often overlooked.</strong> Precisely because of the Japanese population&rsquo;s shrinking, on a GDP per capita basis the Japanese economy has been outgrowing the U.S. economy in the quarter century since 1990.</p> <p>That seems to be good news. Why then worry? Unfortunately, GDP and debt are nominal quantities. Debt can only be served out of nominal income. It thus does not help a country if its GDP per capita grows and at the same time the population shrinks.</p> <p><strong>Here again, Europe has reason to worry.</strong> Europe is in the beginning of a similar demographic development &ndash; albeit one that is not as severe in all European countries as it is in Japan, thanks to the European Union&rsquo;s more open immigration policies.</p> <h4><u>A bankrupt nation</u></h4> <p>Japan can therefore be described as a country that has the following features:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>1. Above average per capita productivity growth.</p> <p>&nbsp;</p> <p>2. Shrinking population (from currently 127 million to 87 million inhabitants by 2060).</p> <p>&nbsp;</p> <p>3. Low real economic growth for decades to come (as demographics continue to deteriorate).</p> <p>&nbsp;</p> <p>4. Shrinking savings rate, due to an older population which will start dissaving soon and therefore will not continue to fund the deficits of the government as in the past.</p> <p>&nbsp;</p> <p>5. Corporate sector with a strong balance sheet after 25 years of deleveraging, but with low investments and no inclination to invest in Japan (given demographics). Corporations are thus a net saver.</p> <p>&nbsp;</p> <p>6. A government with record high debt of nearly 250% of GDP.</p> <p>&nbsp;</p> <p>7. Debt service already consumes 43% of the Japanese government&rsquo;s revenues, just to cover interest on the outstanding government debt &ndash; and in spite of interest rates being close to zero.</p> <p>&nbsp;</p> <p>8. A central bank, which adapted quantitative easing already in 2001 and is willing to do everything that is necessary to support its economy.</p> <p>&nbsp;</p> <p>9. A country that has failed to generate inflation until now, but has rather seen a long period of stable consumer prices and slightly falling overall price level as measured by the GDP deflator.</p> </blockquote> <p><strong>Simply put, such a country is bankrupt.</strong> No economy can sustain a total debt level (for the government, households and non-financial corporations) of more than 400% per cent of GDP without having a nominal growth rate that is significantly higher than the level of interest rates.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="905" height="718" alt="" src="" /> </div> </div> </div> Abenomics China Consumer Prices Demographics European Union Eurozone Japan Quantitative Easing Real estate Reality recovery Savings Rate Tue, 23 Dec 2014 00:00:37 +0000 Tyler Durden 499453 at Monday Humor: Now Available With A 30 Year Fixed-Rate FHA Loan <p><em>&quot;Because moar is always betterer...&quot;</em></p> <p>&nbsp;</p> <p><a href=""><img height="488" src="" width="559" /></a></p> <p><em>h/t @Stalingrad_Poor</em></p> <p>&nbsp;</p> <p><strong>It seems the reviewers had more to say...</strong></p> <p><a href=""><img alt="" src="" style="width: 600px; height: 423px;" /></a></p> <p>&nbsp;</p> <p><strong>And the Q&amp;A also provided some insight...</strong></p> <p><a href=""><img alt="" src="" style="width: 600px; height: 666px;" /></a></p> <p>&nbsp;</p> <p>So sure enough - too much demand...</p> <p><a href=""><img alt="" src="" style="width: 600px; height: 72px;" /></a></p> <p>&nbsp;</p> <p><a href=";ie=UTF8&amp;qid=1419277996&amp;sr=1-1&amp;keywords=samsung+105+inch+tv"><em>Source:</em></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="925" height="748" alt="" src="" /> </div> </div> </div> Mon, 22 Dec 2014 23:30:37 +0000 Tyler Durden 499452 at