• Daily Digest

    Daily Digest 8/21 – Germany Likely To Head Into Recession, New Money Flees Negative Rates for American Credit

    by Daily Digest

    Wednesday, August 21, 2019, 8:01 AM



‘Everyone’s health insurance is more expensive’ as more Americans manage chronic diseases (Saxplayer00o1)

U.S. health care spending grew 3.9% in 2017, reaching $3.5 trillion or $10,739 per person, according to the Centers for Medicaid and Medicare Services (CMS). That accounts for about 17.9% of the nation’s GDP.

Wall of New Money’ Flees Negative Rates for American Credit (Saxplayer00o1)

The average yield on about $27.8 trillion of global non-dollar denominated high-grade debt has plunged to just 11 basis points, while non-dollar sovereign yields are now negative on average for the first time, paying -3 basis points, according to the report.

More eurozone stimulus expected after inflation revised down (Saxplayer00o1)

Inflation across the 19-country eurozone was revised down for July, official figures showed Monday, bolstering expectations that the European Central Bank will provide another shot of stimulus to the single currency bloc next month.

Germany likely to head into recession, central bank warns (Saxplayer00o1)

The Bundesbank said a downturn in orders for cars and industrial equipment in the second quarter of the year was likely to continue in the third quarter, leaving the economy on the brink of a technical recession, defined as two consecutive quarters of negative GDP growth.

Australia’s central bank board discussed unconventional policy at August meeting (Saxplayer00o1)

Australia’s central bank discussed unconventional monetary policies, including negative interest rates, at its August board meeting as it left the door ajar for further easing having already cut rates twice to 1%.

Zero is good for Spain, Portugal, and Ireland (Saxplayer00o1)

For Ireland, Spain, and Portugal less than a decade ago, investors could barely be compensated enough to hold their bonds for fear they could be severed from the eurozone.

Now, investors are a hair’s breadth away from having to pay for the privilege.

Argentina’s opposition candidate says the country cannot pay IMF loan back, wants renegotiation (Saxplayer00o1)

The peso ended last week more than 17.5% weaker than the dollar, rising to 55 pesos versus the greenback by Friday, despite support by the country’s central bank. On the same day, Fitch Ratings and S&P Global downgraded Argentina’s debt further, raising fear levels over a sovereign debt default.

Germany prepares to sell 30-year bond with no coupon (Saxplayer00o1)

Germany has a new test of investors’ voracious appetite for bonds with very low or even negative yields: a 30-year bond that offers no interest payments at all.

Wednesday’s auction of a new €2bn bond maturing in 2050 marks the first time that Berlin has issued 30-year debt with a zero per cent coupon — a step it has already taken with 10-year bonds.

Denmark’s Jyske Bank imposes negative interest rates (Saxplayer00o1)

Jyske Bank has become the first Danish lender to impose negative interest rates on customer deposits and has warned that sub-zero rates were looking “rather permanent”.

Zeppelins stopped flying after the Hindenburg disaster. Now scientists want to bring them back. (Adam)

Hunt said the new generation of airships would get around by riding the jet stream, a powerful air current that circles the globe. He and his collaborators calculate that an airship a mile and half long could circle the globe in 16 days, hauling more than 20,000 tons of cargo while expending little energy.

Thousands of autonomous delivery robots are about to descend on US college campuses (Thomas R.)

The company is working closely with the administrations of each college where it intends to launch. It started at George Mason University and the University of Northern Arizona, and it will be followed in September by the University of Pittsburgh and the Purdue University in Indiana. Starship plans to deploy 25–50 robots at each campus over the next 24 months, which means there could be upwards of 5,000 robots puttering around these schools by 2021.

Scientists discover stardust in Antarctic snow (Thomas R.)

Outer space objects ranging from dust to meteors regularly fall to Earth, but they are generally made of the same materials as our planet, since everything in the solar system, including the sun itself, assembled from the same building blocks billions of years ago. Because iron-60 is not among those common materials, it must have arrived from somewhere beyond the solar system.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/19/19

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, Aug 21, 2019 - 8:17pm



    Status: Bronze Member

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    Posts: 128


    File Under Daugh! Labor Numbers Downsized

    Job Gains Were Weaker Than Reported, by Half a Million

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  • Wed, Aug 21, 2019 - 8:38pm



    Status: Bronze Member

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    Posts: 128


    Yanis: In A Nutshell

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  • Thu, Aug 22, 2019 - 6:28am



    Status: Platinum Member

    Joined: Apr 13 2011

    Posts: 2365


    Thanks to DaveF ...

    ... who just last week, pointed out that the falling US10Y bond yield (rising price) was big European money fleeing the negative rate bonds of Europe for the positive rates bonds of the US.  As posted above.

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