Daily Digest - July 29

• U.S. Debt Not Sustainable
• Now Let Us Stress-Test The Central Banks
• Daily Growth Index Surpasses 3% Contraction Rate
• Jim Rickards Compares The Collapse Of The Roman Empire To The US, Concludes That We Are Far Worse Off
• Job Subsidies Also Provide Help to Private Sector
• Gold Weekly
• California's Building Bust Choking Off Jobs
• Europe's €30 Trillion Headache
• Lloyd's 360° Risk Insight Sustainable Energy Security Newsletter
• Unable To Store, FCI Wants Food Grain Exported

Economy

U.S. Debt Not Sustainable (woodman)

Niall Ferguson: There is a fundamental imbalance between what we expect the federal government to spend on Medicare and Social Security and national security and what we're prepared to pay in taxation. And that is really the core of the issue. The Greeks found that out this year. My fear is that Americans may find this out next year or the year after.

Now Let Us Stress-Test The Central Banks (SolidSwede)

The European Central Bank, Federal Reserve and Bank of England have the advantage of denominating the bulk of their assets and liabilities in the same currencies. With combined balance sheets of 20 per cent of their collective GDP, however, their credit and interest rate exposures are no less worrisome than the foreign currency translation risks faced by their Swiss and Asian counterparts.

Daily Growth Index Surpasses 3% Contraction Rate (cmartenson)

"Bringing the measurements of critical economic activities into the twenty-first century by mining tracking data for an understanding of what American consumers were doing yesterday."

Jim Rickards Compares The Collapse Of The Roman Empire To The US, Concludes That We Are Far Worse Off (Davos, pinecarr)

In the latest two-part interview with Jim Rickards by Eric King, the former LTCM General Counsel goes on a lengthy compare and contrast between the Roman Empire (and especially the critical part where it collapses) and the U.S. in it current form.

And while we say contrast, there are few actual contrasts to observe: alas, the similarities are just far too many, starting with the debasement of the currencies, whereby Rome's silver dinarius started out pure and eventually barely had a 5% content, and the ever increasing taxation of the population, and especially the most productive segment - the farmers, by the emperors, to the point where the downfall of empire was actually greeted by the bulk of the people as the barbarians were welcomed at the gate with open arms.

Job Subsidies Also Provide Help to Private Sector (jdargis)

The opportunity to simultaneously benefit struggling workers and small businesses has helped these job subsidies gain support from liberals and conservatives. Congress is now considering whether to extend the subsidy, which would expire in September, for an additional year. A House vote is expected on Thursday or Friday.

Gold Weekly (Davos)

Chart on page.

California's Building Bust Choking Off Jobs (TR, WSJ subscription required)

Amid the tepid economic recovery, California's construction industry continues to hemorrhage jobs, helping to explain why unemployment across the state remains so much worse than elsewhere in the country.

Of the nation's 12 metropolitan areas with jobless rates of 15% or higher in June, 10 were in California, the Labor Department reported Wednesday.

Europe's €30 Trillion Headache

European banks have amassed €30 trillion in liabilities and face a serious funding threat over the next two years as authorities withdraw emergency support, according to a new report by Standard & Poor's.

Energy

Lloyd's 360° Risk Insight Sustainable Energy Security Newsletter (Doug A.)

"Peak Oil presents the world with a risk management problem of tremendous complexity."

Environment

Unable To Store, FCI Wants Food Grain Exported (Deepak)

According to an FCI note accessed by CNN-IBN, it suggests the government to export wheat to Bangladesh and Nepal at cheaper prices. It also wants more wheat and rice to be distributed through Public Distribution System in the country's 150 poorest districts.

Article suggestions for the Daily Digest can be sent to dd@chrismartenson.com. 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."