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.
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.)
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.
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.
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.
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.
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.
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.
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.
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
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