A measure of credit risk for U.S. high-yield bonds reached the highest levels since December 2016, as jittery investors cut risk amid a stock market plunge. The cost to protect a basket of junk bonds against default rose as much as 12.7 basis points to more than 373 basis points on Monday afternoon in New York, according to data provider CMA.
The aggregate federal, state and local debt in the US, both on balance sheet and entitlements, relative to levels of savings and investments in the economy, will contribute to worries over the longer-term purchasing power of the dollar, particularly in view of low current yields, Rule said. Rising income and savings in Asia, a region with a disposition for gold buying, could also lead to more demand, he said. Sprott US Holdings is a subsidiary of Toronto-based Sprott Inc., which had C$11.5 billion ($8.9 billion) under management as of December 31.
Millennials shoulder more student loan debt than any other generation and face house prices that are far higher than their parents did at their age. Student loan debt has reached $1.4 trillion as the cost of college has soared. And spending no more than 30% of their income on rent or a mortgage, a golden rule for decades, is near-impossible for many young Americans.
Look at the experience from high inflation in the 1970s and early 1980s. 6 Since 1970, the U.S. has issued $134 trillion of Treasuries to the public 7 and repaid $119 trillion, leaving $15 trillion outstanding. Converting to 2017 dollars, the U.S. issued $184 trillion, repaid $163 trillion and so has net borrowings of $21 trillion 2017 dollars. Since it only owes $15 trillion of 2017 dollars, it saved $6 trillion due to inflation.
Debt of state-owned firms has continued to climb, up 9.3 percent to 106.7 trillion yuan ($17 trillion) in the year to the end of February, according to data from China’s finance ministry.
History of France is History of Europe (Jesper A.)
The book Hot and Cool (Stearn ed. New York 1967) is about Marshall McLuhan, he states on page xiii of the foreword; ”Anybody in our culture is regarded as invited as long as he stays in one fixed position. … The explorer is totally inconsistent. He never knows at what moment he will make some startling discovery. And inconsistency is a meaningless term to apply to an explorer. If he wanted to be consistent, he would stay home.”
Trade War Looms Over Oil Markets (Michael S.)
Fears of a global trade war are again on the rise. The worrying thing is that China’s tariff measures on Monday were somewhat narrow, and only came as retaliation to the steel/aluminum tariffs, not the $60 billion in tariffs the Trump administration announced more recently, which specifically targeted China.
Scientists who study the changes in plants and animals triggered by seasons have a term for this: phenological mismatch. And they’re still trying to understand exactly how such mismatches — like the blooming of a flower before its pollinator emerges — might affect ecosystems.
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