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    Daily Digest 12/2 – What To Know About Oregon’s Pension Problem, America’s Poor Still Heavily In Debt

    by saxplayer00o1

    Wednesday, December 2, 2015, 2:46 PM

Economy

GLOBAL ECONOMY-Asia’s factories still struggling as U.S. rate hike looms

“Asia’s economy looks decidedly wobbly going into year-end. Exports continue to struggle amid sluggish demand in the West and other emerging markets,” said HSBC economist Frederic Neumann.

China’s economic woes continue as manufacturing enters recession

The latest snapshot showed manufacturing activity slipping for the fourth month in a row, falling further below the 50 no-change mark to 49.6 in November from 49.8 the previous month.

Indonesia’s tax chief resigns after failing to achieve revenue target: Media

Southeast Asia’s largest economy is facing a potential budget crisis as its deficit drifts towards its legal limit with government revenue failing to meet expectations.

PERS: Five things to know about Oregon’s pension problem

Oregon’s public pension funding problem is back with a vengeance. The state’s public pension deficit doubled this year, and public employers – as well as taxpayers – will see the bill come due starting in 2017.

More Michigan schools may face higher borrowing costs

Additionally, the report noted that districts are paying a higher percentage of their budgets to the Michigan Public School Employees Retirement System (MPSERS). It said from 2007 through Sept. 30, 2013, the reported funded status of the MPSERS plan declined from 88.7% to 59.6%. Meanwhile, the unfunded liability rose from $5.8 billion to $25.8 billion.

Plunging oil, potash prices pushing Saskatchewan deficit to $262M

Q: How does a resource-rich province, like Saskatchewan, go from a projected $107-million surplus in March to a $262-million deficit nine months later? A: When your resource revenues decline by nearly $400 million.

Canada’s Budget Deficit To Be Billions Bigger Than ‘Optimistic’ Liberal Forecasts: PBO

Parliamentary budget officer Jean-Denis Frechette projects a 2016-17 deficit that’s $900 million smaller than Ottawa’s forecast, but shortfalls between 2017-18 and 2020-21 that are $2.3 billion, $3.6 billion, $6.3 billion and $10.8 billion higher than current projections.

U.S. oil companies’ restructuring plans founder as prices plunge

American Eagle Energy, which explores for energy in North Dakota, issued $175 million in bonds in August 2014. The company filed for bankruptcy in May, estimating its assets were worth $211 million. It sold them in October for under $37 million.

Spain’s Renewable Energy Powerhouse Abengoa Teeters Toward Bankruptcy

The U.S. Department of Energy provided a federal loan guarantee of $1.45 billion for Abengoa’s 280 megawatt (MW) Solana project in Arizona, the largest parabolic trough plant in the world.

UK households owe record £2.1bn in water bills

More than 2.5 million customers struggling to pay water and sewerage bills with single people hit hardest, says regulator

Global defaults climb to six-year peak of $78b so far this year

Without a rebound in oil and commodity prices, and the Federal Reserve seen lifting its policy rate higher for the first time in nine years, strategists predict a further rise in corporate defaults for 2016.

Japan pension whale stands by stocks after $64 billion loss

The loss will test the resolve of the fund’s stewards and of Prime Minister Shinzo Abe, who called for the shift out of bonds to riskier assets such as equities as the government tries to spur inflation.

U.S. Junk Bonds See Highest Distressed Ratio Since ’09, S&P Says

Plummeting oil and gas prices pushed the percentage of junk bonds trading at distressed levels to the highest since the markets were recovering from the financial crisis, according to Standard & Poor’s.

America’s poor are still heavily in debt

About 1 in 5 American families who make $41,200 or less have what’s considered a hefty debt burden — defined as more than 40% debt-to-income load.

Sen Blumenthal: Puerto Rico ‘narrowly avoided a complete default’ on debt

Even though Puerto Rico averted a default on Tuesday, it still faces about $1 billion due on Jan. 1, when multiple bonds — including more than $300 million on general obligation debt, with payments constitutionally backed by Puerto Rico — come due.

European Central Bank May Surprise With Size of New Stimulus

Christmas is coming — and some investors are already convinced they will unwrap an early present Thursday in the form of more economic stimulus from the European Central Bank.

Swiss economy grinds to standstill in third quarter

Switzerland’s economy ground to a halt in the third quarter of this year, according to figures released from Bern on Tuesday.

ECB to Test the Limits of Its Bond-Buying Program

Some €618.5 billion of eurozone bonds currently yield less than minus 0.2%, according to Rabobank. That is just over 12% of the more than €5 trillion of bonds potentially available for purchase under the quantitative easing program.

Manufacturers suffer worst performance since 2009, ISM finds

American manufacturers of goods such as electronics, chemicals and heavy machinery saw their businesses contract in November at the sharpest pace since the end of the Great Recession, reflecting the damage caused by a strong dollar, cheap energy prices and a soft global economy.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/1/15

Provided daily by the Peak Prosperity Gold & Silver Group

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