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    Daily Digest 11/16 – Trouble Brewing in Commercial Real Estate, College Debt Impacts Millions

    by saxplayer00o1

    Wednesday, November 16, 2016, 2:39 PM

Economy

City is Cooking the Books, Covering Up Severity of Our Pension Crisis (Los Angeles)

Smoothing was designed to even out the City’s pension contributions so they would not bounce around in an unpredictable manner based on the ups and downs of the stock market. But this has resulted in an understatement of the unfunded pension liability of $750 million as the cooked up actuarial value of its assets exceeds their market value by the same $750 million.

Trouble Brewing in Commercial Real Estate

Now defaults are on the rise as well. More than 5.6% of some $390 billion worth of commercial property mortgages that have been packaged into securities was more than 60 days late in payment in September, according to Moody’s Investors Service. That was up from a 4.6% delinquency rate earlier this year.

U.K. to Borrow Extra $125 Billion as Growth Slows, PwC Says

The budget deficit is on course to reach 67 billion pounds in the current fiscal year, almost 12 billion pounds more than officials estimated in March, it said in a report published Tuesday. Britain will still have a shortfall of 18 billion pounds in 2019-20, the year it was meant to have a 10 billion-pound surplus.

Chicago Public Schools delays sale of $426 million in bonds

Word of the delayed sale came as financial analysts at Standard & Poor’s said familiar financial concerns prompted the agency to drop the school system’s credit rating deeper into junk territory last week.

Ontario using reserve fund to help balance the book

An accounting dispute with the auditor general over how pension assets should appear on the books is adding $2.2 billion to the deficit this fiscal year, but the government insists it will reach balance by its self-imposed deadline of 2017-18.

New Jersey’s Bonds Downgraded for 10th Time Under Christie

New Jersey’s pension system had about $136 billion less than it needs to cover all the benefits due when workers retire, the result of the state’s more than decade-long failure to put enough money into the fund each year. Those annual payments are now soaring as the government is under pressure to pay down that debt, exerting a strain on New Jersey’s budget.

Obama visits Greece amid hopes he will argue for debt relief

Greece signed up to a third economic bailout package of up to 86 billion euros ($93 billion) in mid-2015 but says that it needs a long-term debt restructuring to emerge from the worst economic downturn in generations.

Monte Paschi Taps Bondholders for Swap as Rescue Deadline Nears (Italy)

While the CEO has pledged to raise 5 billion euros in capital, the deal is under threat from an Italian referendum on Dec. 4 that could topple the government of Prime Minister Matteo Renzi and further undermine investor confidence in the country’s troubled lenders.

Degree of debt impacting millions with college loans

At 30 years old, Alluto’s trip on the road of life has a big pothole: $104,000 in college debt. She says this six-figure detour has derailed her plans – her picture-perfect life erased. “I’ll never get married or buy a house or buy a new car or any of that stuff, no,” she says. “It’s out, out of the picture – kids, all of that. Why would I do that to my children?“

Abe ponders whether to follow Trump’s lead on fiscal stimulus (Japan)

Yet tax revenue for the 12 months ending March 31 is likely to be lower than originally expected, as economic growth has been weaker than initially forecast, and government debt is already about 2.5 times the size of the economy.

China Unveils New Rules to Cope with Massive Local Government Debt

Asset sales, restructuring, cancelled subsidies and layoffs are all on the table as Beijing struggles with mounting outstanding local government debt

Negative-Yielding Bonds Plummet to $8.7 Trillion After Trump Win

The market value of the world’s negative-yielding bonds plunged 14 percent last week to $8.7 trillion as investors dumped government debt at a record clip after Donald Trump’s upset win stoked speculation that his ambitious fiscal plan would flood the market with new Treasuries and boost inflation.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/15/16

Provided daily by the Peak Prosperity Gold & Silver Group

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."

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18 Comments

  • Wed, Nov 16, 2016 - 3:05pm

    #1

    Time2help

    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2225

    Reclamation Project

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  • Wed, Nov 16, 2016 - 3:43pm

    #2

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2932

    New Japan real estate loans hit record, eclipse bubble economy p

    New Japan real estate loans hit record, eclipse bubble economy peak

    Reuters6 hours ago
    … since 2013 when the BOJ began quantitative easing, has accelerated even further after the central bank said in January it would adopt negative interest rates.

    Laws not on the side of students drowning in college loan debt

    WAVE 317 hours ago
    LOUISVILLE, KY (WAVE) – Student loan debt is making the future seem bleak … The United States has racked up a staggering $1.4 trillion in student loan debt.

    Trump Allies Urge Fed to Cut Balance Sheet and Revive Credit

    Bloomberg7 hours ago
    They argue that the Fed's debt portfolio has damaged the economy by channeling … has also called on the central bank to reduce its $4.5 trillion balance sheet.

    State of Illinois' pension debt jumps to $130 billion

    Illinois Policy12 hours ago
    Illinois' pension debt has jumped to $130 billion in 2016, up from $111 billion in 2015, according to the Commission on Government Forecasting and …

    State Workers' Pensions, Retiree Health Care Fuel $1.3 Billion Budget Shortfall

    Hartford Courant – ‎15 hours ago‎
    Two reports on Connecticut's finances show that a surge of fixed costs, including debt payments and pension payments, are behind the estimated $1.3 billion shortfall that lawmakers will have to settle next year. Fixed costs are expected to rise nearly

    Germany rejects debt relief for Greece after Obama offers support

    Reuters38 minutes ago
    Athens signed up to a third economic bailout package of up to 86 billion euros last year but wants long-term debt restructuring to exit its crisis. Germany, which …

    Preckwinkle wins approval of $4.9 billion budget balanced with new …

    Chicago Tribune16 hours ago

    15, 2016, to approve Board President Toni Preckwinke's $4.9 billion spending … increasing debt payments set in motion before Preckwinkle took office six years ..

    Pennsylvania's structural deficit at $2B, Independent Fiscal Office says

    abc27 – ‎16 hours ago‎
    Translation: the state is spending more than it's taking in – by a lot. The office estimates the structural deficit to be $1.7 billion for next fiscal year and $3 billion by 2021-22. That deficit is despite the current fiscal year which added $1

    Wyoming schools face $1.8 billion projected shortfall, report shows

    Casper Star-Tribune Online13 hours ago
    When the school operations and capital construction are added together, the Legislative Service Office estimates the total will be a $1.79 billion deficit by 2022.

    EU says Italy is at risk of breaking budget rules

    The Local Italy3 hours ago
    But the European Commission has ordered Madrid to lower the deficit down to 3.1 percent, which will require roughly 5.5 billion euros ($6.1 billion) in budget …

     

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  • Wed, Nov 16, 2016 - 6:13pm

    #3

    Time2help

    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2225

    Thanks Monsanto

    Gross.

    (Source)

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  • Wed, Nov 16, 2016 - 8:19pm

    #4

    Jim H

    Status Diamond Member (Offline)

    Joined: Jun 08 2009

    Posts: 1798

    India ahead of the US in banning banknotes...

    And it's not going so well…

    When future generations look back, they will see the current demonetization as the worst event in the history of post-colonial India.

    http://www.zerohedge.com/news/2016-11-16/stunning-scenes-panic-gold-price-skyrockets-india-after-currency-ban

    I you don't think this is coming to a Western nation near you.. you are not paying attention.  

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  • Wed, Nov 16, 2016 - 8:21pm

    #5

    sand_puppy

    Status Platinum Member (Offline)

    Joined: Apr 13 2011

    Posts: 1837

    Soros and the manufactured civil war

    What are you guys and gals thinking about Martin Armstrong's impression that Soros, et al. are creating a civil war / color revolution in the US?

    The New American Communist Revolution?

    John Michael Greer explores this same theme in his novel, Twilight's Last Gleaming, where fictitious operatives in China stage a classic "regime change" operation to fracture the USA into ineffective states.  Basically they fund the domestic factions that seek to bring down the established government.

    Lord know the US and its proxies have induced revolution and regime change all over the world using these similar techniques.

     

     

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  • Wed, Nov 16, 2016 - 8:37pm

    #6
    Uncletommy

    Uncletommy

    Status Bronze Member (Offline)

    Joined: May 03 2014

    Posts: 514

    Voter's remorse followed by Indigestion?

    Hey, T2H:

    What happens to the cost of fruits and vegetables when Donald sends all the illegals home? Are all those new college graduates going to be spending their summers getting a nice tan in the Imperial Valley? They'll probably have less exposure to Roundup there than in the super market . 

    http://www.eater.com/2016/11/11/13594012/donate-food-bank-hunger-relief-charities

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  • Wed, Nov 16, 2016 - 9:12pm

    Reply to #6

    Time2help

    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2225

    Meh

    [quote=Uncletommy]

    Hey, T2H:

    What happens to the cost of fruits and vegetables when Donald sends all the illegals home? Are all those new college graduates going to be spending their summers getting a nice tan in the Imperial Valley? They'll probably have less exposure to Roundup there than in the super market . 

    http://www.eater.com/2016/11/11/13594012/donate-food-bank-hunger-relief-charities

    [/quote]

    My (purely/utterly) symbolic vote for Pres/VP went to Castle/Bradley. For the 24 elected offices in my district it was "Ron Paul" as a write-in. Down vote on all new taxes/projects.

    I'm growing a garden. Stay off my lawn.

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  • Wed, Nov 16, 2016 - 9:22pm

    #7

    Time2help

    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2225

    Double-Meh

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  • Wed, Nov 16, 2016 - 9:32pm

    Reply to #6
    TechGuy

    TechGuy

    Status Bronze Member (Offline)

    Joined: Oct 13 2008

    Posts: 295

    Re: Fruit & Vegetable pickers

    "What happens to the cost of fruits and vegetables when Donald sends all the illegals home? Are all those new college graduates going to be spending their summers getting a nice tan in the Imperial Valley? "

    No, Machines will be doing the majority of work. The days for the majority of farm labor jobs is limited as new technology replaces workers:

    Robots Step Into New Planting, Harvesting Roles
    Labor shortage spurs farmers to use robots for handling delicate tasks in the fresh-produce industry

    http://www.wsj.com/articles/robots-step-into-new-planting-harvesting-roles-1429781404

     

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  • Wed, Nov 16, 2016 - 11:23pm

    Reply to #6

    Time2help

    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2225

    Assuming supply chain holds

    [quote=TechGuy]

    No, Machines will be doing the majority of work. The days for the majority of farm labor jobs is limited as new technology replaces workers:

    Robots Step Into New Planting, Harvesting Roles
    Labor shortage spurs farmers to use robots for handling delicate tasks in the fresh-produce industry

    http://www.wsj.com/articles/robots-step-into-new-planting-harvesting-roles-1429781404

    [/quote]

    Assuming the supply chain for robot replacement parts stays whole. Don't we need oil for that?

    Hopefully the risk of EMP has diminished somewhat.

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  • Thu, Nov 17, 2016 - 12:58am

    #8

    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    Stephan Molyneux gets it completely wrong.

    He blames socialism for our predicament? (Starts at 7min)

    Mmmm. Was socialism to blame for the money printing? Or did empty political promises and a false sense of entitlement and la dolce vita  to blame for the printing press and its enforcer the MIC to blame?

    The absent comments section is a red flag.

    But he is right, the economy has ground to a halt. It is nothing like the old economy. 

    http://www.fdrpodcasts.com/#/3500/making-america-great-again-bill-whittle-and-stefan-molyneux

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  • Thu, Nov 17, 2016 - 2:07am

    Reply to #3

    pinecarr

    Status Gold Member (Offline)

    Joined: Apr 13 2008

    Posts: 1085

    Full report on Glyphosate in our food

    The full report that T2H's post came from is at https://s3.amazonaws.com/media.fooddemocracynow.org/images/FDN_Glyphosate_FoodTesting_Report_p2016.pdf 

    Caution: It's not for the faint of heart.

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  • Thu, Nov 17, 2016 - 3:28am

    #9

    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    Australia wants to ban big notes.

    I wrote this missive off to the Money Show.

    The courts have decided that money in a bank account is a Loan to the bank.
    It is a contract.
    If we are forced to go cashless then we are forced to lend our money to a bank.
    It is not a mutual agreement.
    Therefore it is illegal.
     
    If an employer lends your wages to a bank and it refuses to give your money to you then your action is against your employer.
    They lent your money to the bank. They did not give it to you.
     
    These thoughts are not a hypothetical nicety. The seizure of bank deposits was betta tested in Cyprus, and subsequently written into law in all Western Countries.
     
    Do not be confused. The object of the exercise is to force everybody to lend their money to the banks and then seize it all.

    This is a risk that is being forced onto you, the citizen 

    http://www.abc.net.au/radionational/programs/themoney/contact/

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  • Thu, Nov 17, 2016 - 4:51am

    Reply to #6
    TechGuy

    TechGuy

    Status Bronze Member (Offline)

    Joined: Oct 13 2008

    Posts: 295

    T2H asked:"Assuming the

    T2H asked:

    "Assuming the supply chain for robot replacement parts stays whole. Don't we need oil for that?"

    Consider that if we run out of oil to running farming equipment, there will be much bigger problems, such as getting food from the farms to the cities.Most of the pickers will be less energy intensive that other traditional AG equipment, such as tractors & harvestors. 

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  • Thu, Nov 17, 2016 - 4:52am

    #10

    Time2help

    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2225

    Re: Glyphosate

    Depopulation.

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  • Thu, Nov 17, 2016 - 5:04am

    Reply to #8
    TechGuy

    TechGuy

    Status Bronze Member (Offline)

    Joined: Oct 13 2008

    Posts: 295

    AR wrote:"Mmmm. Was

    AR wrote:

    "Mmmm. Was socialism to blame for the money printing? Or did empty political promises and a false sense of entitlement and la dolce vita to blame for the printing press and its enforcer the MIC to blame?"

    Yes, The debt was largely created to support socialism via gov't spending. Gov't also enacted laws that tried to take the risk out loans (ie Freddie & Fanny) so that people could get affordable loans. This is a form of socialism. Of course there is the famous quote about banks and other large scale financial institutions: "Privatize the profits, socialize the losses".if there was no socialism, and the US had to balance its budget, there would never been a need for bailouts and QE. 90% of all the economic problems can be attributed to  gov't meddling, in a vain attempt to take the risk out of the ecomony and to buy votes.All gov't meddleing does is increase the risk taking, and make the crisises worse.

    MIC is also a form of socialism, as it hands over money from the taxpayer to Defense contractors. Imagine what the US military budget would be if taxpayers: (A) had to pay for the cost directly, no borrowing. (B) taxpayers voted to approve/deny the yearly military budget. MIC is socialism for a selected group of people and businesses.

     

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  • Thu, Nov 17, 2016 - 5:36am

    Reply to #10
    TechGuy

    TechGuy

    Status Bronze Member (Offline)

    Joined: Oct 13 2008

    Posts: 295

    Re: Glyphosate

    "Depopulation."

    Not likely, but probably will  increase risks to dieseases and cancer. So far, I cannot see any direct intention to depopulate the population. If TPTB wanted to depopulate the world, releasing an airborne infectious killer diease like a bird flu, would do the trick and pretty quickly. Frankly I am amazed that the world has managed to avoid a siginificant pandemic and there have been plenty of near panademics in Asia (Sars, several bird flus, creation of disease restrant strains by feeding livestock antibiotics) in the past two decades. At some point, our luck is probably going to run out.

    Poisons like Glyphosate and GMO foods can be attributed to trying to support an unsustable population level. Farm yields need to increase into order to sweeze out the most production to keep up. Big Agra is pulling every trick in the book just to keep up. Of course there is also a lot of greed, but that is not just limited to the Big Agra businesses. 

    We also see that the West is trying to solve its low birth problems by imporing refugess in regiions that have high birth rates. For the most part, European & Asian populations have birth rates below replacement. Gov't want permit higher immigration so that retiring workers get replaced in order to support the Pay as you go gov't Entitlements.. But they fail to understand that western economy have no need for low skill workers which will only serve as a economic drag because most of them will end up on welfare. Business are replaceing retiring workers with automation. All of the low skill jobs are getting eliminated. The only people that will be employable are very high skill techincal workers that install, upgrade, and maintain automation systems. Even in developing contries (ie China, India) factories are swtiching to automation. The automation systems are becoming cheaper to operate than the cheapest laborers.

    We are in the simular stage like it was during the beginning on the 20th Century. When horses and steam trains were replaced with cars and trucks. Just like the demand for buggy whps and horses vanished, so will the demand for low skill workers. But its not just going to be limited to low skill workers its going to also effect many white collar jobs, Just like in the 1980s when PC revolution ended the need for typing pools and file clerks. 

     

     

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  • Thu, Nov 17, 2016 - 7:56am

    #11

    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    Happy, Happy, Joy, Joy.

    Techguy said.

    Yes, The debt was largely created to support socialism via gov't spending.

    I, being the little ray of sunshine that I am, agree with this guy.

    As I have documented for years, the elites openly call for the ultimate eradication of national sovereignty and the formation of a single world economy, a single world currency and, eventually, a single world government.  In order to make this omelet, they intend to break a few eggs (and collapse a few economies).  By blaming "national sovereignty" (and the people that defend it) for this crisis, they hope to convince the masses that the only practical solution is total centralization.  You can read my in-depth analysis and evidence of this in my article “The Economic End Game Explained.

    http://www.zerohedge.com/news/2016-11-16/world-suffers-trump-shell-shock-heres-what-will-happen-next

    This explains why Europe has been so easily flooded with Uitlanders. The Globalists intend to obliterate the very notion of what it means to be European. (So all you people who swallowed Trotsky's "Racism Bad" Communist propaganda can go eat crow.)

    This particular cake has been a long time in the baking. Now I see why Hitler's National Socialism was hit on the head with a hammer. (More Communist Propaganda "Hitler Bad") 

    My subjective evidence is that as soon as you begin to approach the truth you get stepped on like a bug. Congratulations, Patsies, your masters will be pleased with you.

     

     

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