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    Daily Digest 4/4 – Stock Market Pain Bleeds Into Junk Bonds, Oil Trade War Looms

    by saxplayer00o1

    Wednesday, April 4, 2018, 1:57 PM


Stock Market Pain Bleeds Into Junk Bonds

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.

‘Winnerless’ global trade war expected to push gold to $1,400

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.

For the first time ever, young Americans have less consumer confidence than their parents

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.

Inflation Could Help Ease the U.S.'s Debt Burden

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.

China's Xi Turns Deleveraging Sights on Local Governments, SOEs

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.

5 Plants and Animals Utterly Confused by Climate Change (jdargis)

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.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/3/18

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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  • Wed, Apr 04, 2018 - 6:51am



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    Getting down on the mountain

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  • Thu, Apr 05, 2018 - 5:13am



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    It's so bad in Illinois its bonds pay like a reviled Jersey mall

    It's so bad in Illinois its bonds pay like a reviled Jersey mall

    Chicago Tribune-18 hours ago
    Despite the close yields, the state's debt is still the better bet, according to AllianceBernstein, which oversees about $41 billion of municipal fixed income securities. No state has defaulted since the Great Depression, after all, while the shopping mall industry is being challenged by the growth of internet retailing.

    Amid Kentucky Teacher Protests, Worries About State Pensions And ...

    WKU Public Radio-17 hours ago
    Matt Bevin have said some pension reform is necessary: the state has a $41 billion unfunded pension liability. That's the amount of money needed to pay retirement benefits over the next 30 years. But the recent pension bill was passed without an actuarial analysis, and bill sponsor Rep. Bam Carney said it would only save ...


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