Daily Digest

Daily Digest 1/25 - 2011 Unemployment Ins. Benefits Taxable, States Face Grim Budgets, Most Americans Uninsured In 2011

Wednesday, January 25, 2012, 10:59 AM
  • All 2011 unemployment insurance benefits taxable
  • China Narrows Gap On US As Favored Investment Destination
  • Bloomberg says pension costs stressing NYC budget
  • Rising costs push Kimberly-Clark 4Q profit lower
  • Nixon Budget Cuts Impact Higher Education
  • 'There will be riots on streets of America': George Soros predicts class war in U.S. as euro triggers collapse of global economy
  • SD Unified faces another grim budget
  • IMF Says EU Bailout Fund Financing An Issue After Downgrade
  • IMF calls on ECB to take Greek hit
  • Binding Greek Deal Would Trigger Swap Payments, Millstein Says
  • Graphic: UK debt passes £1 trillion for the first time
  • Students seek food stamps for financial aid
  • Mortgage fees soar 70% to pile pressure on cash-strapped homeowners
  • Tuition to rise at Saint Louis University
  • Number of children living in poverty up in Michigan, Kalamazoo County
  • Gallup: Most Americans were uninsured in 2011

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

All 2011 unemployment insurance benefits taxable

Unless you requested that federal taxes be withheld, you could be in for a big surprise when you calculate taxes owed.

“People tend to believe unemployment benefits are still not taxable,” said Bob Meighan, a vice president at TurboTax. That was the case in 2009, for the first $2,400 in unemployment benefits. But that provision was not renewed by Congress.

China Narrows Gap On US As Favored Investment Destination

The U.S. remained the favored destination for businesses that are expanding internationally in 2011, but China narrowed the gap significantly.

Bloomberg says pension costs stressing NYC budget

New York City Mayor Michael Bloomberg says an $8 billion pension bill is squeezing city finances and wants state legislators to back the governor and create a new lower tier for future municipal and state workers.

Bloomberg says city pension costs have risen 500 percent from $1.5 billion in 2002 when he took office and now comprise 12 percent of the budget, equivalent to combined operations of the police, fire and sanitation departments.

Rising costs push Kimberly-Clark 4Q profit lower

Kimberly-Clark Corp., the maker of Kleenex tissues, Huggies diapers and other household goods, is still waging a battle against rising costs that pushed its fourth-quarter profit down 19 percent.

Like many businesses, Kimberly-Clark is struggling with higher costs for raw materials like oil, wood, pulp and other things it needs to make and transport its products. It has raised prices on some products to help offset some of the expense, but must tread cautiously with price hikes to avoid turning off budget-minded shoppers.

Nixon Budget Cuts Impact Higher Education (Missouri)

Missouri’s budget director expressed frustration with the 2013 reduction in higher education funding. In his 2013 budget recommendation, Gov. Jay Nixon proposed a 15 percent cut in state appropriations to public universities.

'There will be riots on streets of America': George Soros predicts class war in U.S. as euro triggers collapse of global economy

Billionaire investor George Soros has warned the global economic system could collapse and riots on the streets of America are on the way. The 81-year-old said he’d rather survive than stay rich as the world faces an ‘evil’ period and Europe fights a ‘descent into chaos and conflict’.

He has backed the euro, bought $2billion in European bonds and insisted the economic climate is similar to the 1930s Great Depression.....'The best-case scenario is a deflationary environment,’ he told Newsweek. ‘The worst-case scenario is a collapse of the financial system.’

SD Unified faces another grim budget (San Diego)

In a preliminary budget for the 2012-13 school year released Monday, Superintendent Bill Kowba has called for the elimination of 1,169 full-time jobs, including at least 821 teaching positions, to help offset a worse-case deficit of $121.5 million to next year’s $1.057 operating budget.

That could result in more than 1,500 of the district’s 14,000 full- and part-time employees losing their jobs, officials said. Other cost-cutting measures include an increase in class size and cuts to nursing, the arts, campus police, school bus service and other programs.

IMF Says EU Bailout Fund Financing An Issue After Downgrade

Financing for the euro zone's emergency bailout fund is in question following its rating downgrade, the International Monetary Fund said Tuesday.

IMF calls on ECB to take Greek hit

The International Monetary Fund has turned up pressure on European officials to take on more of the burden of filling a widening gap in Greece’s budget by pressing the European Central Bank to take a hit on its €40bn in Greek bond holdings, eurozone officials said.

Binding Greek Deal Would Trigger Swap Payments, Millstein Says

“This will be the largest CDS event we’ve ever seen in the private market,” Millstein said at the Bloomberg Sovereign Debt Crisis Conference hosted by Bloomberg Link in New York today. “And who’s swimming naked when that tide goes out?”

European finance ministers pushed Greece’s private creditors to accept bigger losses in talks that seek terms that won’t trigger the swap payments. Standard & Poor’s managing director of sovereign ratings, John Chambers, said today that the “very least” that may happen is a debt exchange that qualifies as a default by his firm’s criteria.

Graphic: UK debt passes £1 trillion for the first time

Public sector net debt, the total financial liabilities of the public sector, has reached £1 trillion for the first time. (Click to see the third graph)

Students seek food stamps for financial aid

With rising education costs, college students are looking for new ways to save. More and more students are turning to food stamps, the government program that provides money to those that cannot afford it....Nearly one in five people rely on food stamps in Georgia, and there has been an 87 percent jump in the program since the recession in 2007, according to the Atlanta Journal-Constitution.

Overall, Americans will pay $65 billion to fund the SNAP program this year, more than double what it cost in 2005.

Mortgage fees soar 70% to pile pressure on cash-strapped homeowners (UK)

The report, from the financial information firm Moneyfacts, said the average arrangement fee was just £889 a year ago. But 12 months later, ruthless banks have increased the average fee to a painful £1,498 just to take out the mortgage, and before a penny of the actual loan has been repaid.

To make matters worse, there are many other fees which banks charge on top of the arrangement fee, such as legal fees and valuation fees. Of the 2,749 which charge an arrangement fee, the average is around £1,500 but some of the worst offenders charge up to £4,000.

Tuition to rise at Saint Louis University

Undergraduate tuition will increase 3.8 percent at Saint Louis University next year, bringing the annual cost of tuition to just under $35,000.

The St. Louis Post-Dispatch reports that the school is also raising graduate tuition by 2 percent to $990 per credit hour. The changes were announced to the university community Tuesday in a letter from university president Lawrence Biondi.

Biondi says Saint Louis University will take measures to control costs in the face of an uncertain economy. Those measures will include a pay freeze for faculty, staff and administration.

Number of children living in poverty up in Michigan, Kalamazoo County

The latest figures on child well being in Michigan show more families in the state and Kalamazoo County living in poverty. The numbers released Tuesday by the Michigan League for Human Services show that the percentage of children living in poverty jumped from 14% to 23% between 2000 and 2009. The percentage in Kalamazoo County was nearly 21% in 2009.

Gallup: Most Americans were uninsured in 2011

A recently released Gallup survey shows more American adults didn’t have health insurance coverage in 2011 than in any other year since Gallup and Healthways began to track this information in 2008.

Researchers asked 1,000 American adults about their health care coverage on a monthly, quarterly and yearly basis. The overall findings were troubling.

The monthly percentage of uninsured adults rose to 17.7 percent in December 2011, which equaled the month of July for the highest on record. The uninsured rate was 17 percent or higher for the majority of the 2011 calendar year.

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."

5 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
wheatgrassfarmer's picture
wheatgrassfarmer (not verified)
Debunking the fracking angst Super-Fracking and the Next Shale G

http://www.canadafreepress.com/index.php/article/44156

Super-fracking

It was innovative American frack production enhancement procedures that ignited the shale bonanza. But the race is now on for the next generation super-fracking techniques able to release further huge quantities of oil and gas at an even more commercially viable cost.........

U.S. domination

Shale gas‚’ contribution to the U.S. GDP in 2010 was over $76.9 billion. By 2015 it is projected to be $111.2 billion, by 2035, $231 billion. According to BP‚‘s latest world energy outlook 2012, America is on course to become “almost totally energy self-sufficient” by 2030, as well as a net natural gas exporter. U.S. gas production has already led to a glut, with domestic gas prices having slumped, leading to a stabilizing effect on global gas prices, and a 50 percent cut in electricity prices for U.S. power industries, with a consequent boost for investments. And real jobs are being created—thousands of them; drilling companies are already struggling to provide sufficient crews. And the still unfolding success story of shale oil looks set to surpass that of shale gas.....

This is a national and global energy game changer.

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
More Americans Uninsured in 2011 (corrected link)

 

I should have looked for the original article on the Gallup Poll for health insurance before sending it in.

Please use this link.

 

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1513
Jesse's response to FOMC statement

http://jessescrossroadscafe.blogspot.com/2012/01/for-immediate-release-information_25.html 

Still no reform.  The actual problems are still being papered over. Predictable, but not good news.

Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
Petrodollar-Iran-Gold

 

 This helped me understand the dollar - oil link and the author assess the impact on gold of losing the petrodollar...

www.financialsense.com/contributors/marin-katusa/petrodollar-iran-gold-what-you-need-to-know

 

 

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