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    Daily Digest 12/12 – The Truth About Pensions, Are You Ready for the Financial Crisis of 2019?

    by saxplayer00o1

    Wednesday, December 12, 2018, 3:12 PM


Goodbye to Illinois’ $130 billion pension hole. Now it’s $133 billion. And getting deeper.

First, the awful numbers: For several years we’ve cited the figure of $130 billion to represent Illinois’ estimated unfunded pension liability. Never mind that number, it was $133 billion as of June 2018 — and it’s getting worse — according to a new state report. The Commission on Government Forecasting and Accountability estimates the shortfall in commitments to future retirees will deepen to nearly $137 billion in the current July-to-June year, and to $139 billion in fiscal 2020.

More parents struggle to repay loans they borrowed for their children’s education

Today, at least 3.4 million people hold so-called parent PLUS loans and they owe nearly $90 billion, according to a new report by the Brookings Institution, a public policy research group. (Those numbers don’t capture parents who have consolidated their debt, in which a loan is rolled into a new one.)

The truth about pensions: they aren’t dead, but some are barely holding on

Some states have failed to fund their workers’ pension plans. There is a $1.4 trillion gap between state pension assets and what employees had been promised, according to 2016 data from Pew Charitable Trusts.

Former Fed Chair Yellen says excessive corporate debt could prolong a downturn

Corporate indebtedness has ballooned in recent years, with companies now carrying a $9.1 trillion debt load compared to just $4.9 trillion in 2007.

ECB wins court’s backing for buying government debt

The Court of Justice of the European Union rejected arguments that the ECB was effectively bankrolling governments with its 2.1 trillion-euro ($2.39 trillion) Public-Sector Purchase Programme (PSPP), which is expected to stop at the end of this month.

Central bank slashes French fourth-quarter growth estimate on protests

The “yellow vest” revolt was inspired by planned fuel tax hikes – now scrapped – that protestors said would add to the cost of living at a time of weak wage growth.
Named after the fluorescent safety vests that all French motorists must carry in their cars, the movement’s protests have triggered some of the worst unrest seen in the capital since the 1968 student riots.

Are You Ready for the Financial Crisis of 2019?

Then fast-forward to 2018, where bad mortgages may not be the problem. Consider, instead, the mountain of student debt out there, which is basically a $1.5 trillion bet that a generation of underemployed young people will ever be able pay off a hundred grand in tuition loans in an economy where even hedge funders are getting creamed. Already, a lot of them aren’t paying and can’t pay.

Venezuela annual inflation tops 1 million pct in November: Congress

Socialist President Nicolas Maduro late last month increased the monthly minimum wage by 150 percent to 4,500 bolivars, fewer than $10 at the black market exchange rate. Citizens had complained that they could not afford basic items despite a previous 60-fold minimum wage increase in August.

Real estate slowdown to cost Toronto nearly $100-million

To recoup a $100-million hole created by the land-transfer tax decline with property taxes alone, with no other cuts or new revenue, residential rates would have to rise by close to 4 per cent next year.

State takeover looms if LAUSD can’t get money issues worked out by December deadline (Los Angeles)

That means two years from now, L.A. Unified will end its school year $4 million short, according to Price’s letter, because its reserves will be exhausted and can no longer be used to plug the estimated $500 million each year that the district says it is spending above what it takes in. L.A. Unified’s total annual budget is about $7.5 billion.

Has Peak Diesel Arrived? The Data Doesn’t Look Good (yogmonster)

Before starting, I would like to thank Rafael Fernández Díez for having the patience to download the JODI data, for having elaborated the graphs I show here, slightly retouched, and for having made me notice the problem that is being raised with the refining of heavy oils (We’ll see more below). He hasn’t had time to finish this post and that’s why I’m the one who wrote it, but what follows is actually his work.

Global Market Turbulence Caps Oil Prices (Michael S.)

On Monday, there was no shortage of concerns. British Prime Minister Theresa May delayed a vote on her Brexit deal, as she realized she did not have the votes in the parliament. The political disaster pushed the British pound down to its lowest point in 18 months. The legal troubles surrounding President Trump also raise uncertainty.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/11/18

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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One Comment

  • Wed, Dec 12, 2018 - 7:40am



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    Joined: Jun 08 2011

    Posts: 2397


    Debt Rattle for Wednesday, 12/12

    • Tory MPs Trigger Vote Of No Confidence In Theresa May Today (G.)
    • 1000s Remain In Custody In France After Preventive Arrests (RT)
    • Macron’s Multi-Billion Giveaways Could Cost France Dearly (CNBC)
    • Yellen Warns Of Another Financial Crisis: Gigantic Holes In The System (CNBC)
    • IMF Warns Storm Clouds Are Gathering For Next Financial Crisis (G.)
    • Trump Says Fed Shouldn’t Hike Rates, But Calls Powell ‘A Good Man’ (R.)
    • Greece Scraps Pension Cuts (R.)
    • ‘Forced Tech Transfer’ Must Stop Or Be Regulated – EU Envoy To China (CNBC)
    • Ocasio-Cortez Already Reveals The Inner Workings Of Congress (CNBC)
    • Faking Moon Landing More Difficult Than Doing It (RT)
    Joseph Mallord William Turner Sunrise over Plain, with Figures 1830


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