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    Daily Digest 9/23 – China’s Workers In Trouble, 2016 Canada Growth Forecast Looks Gloomy

    by saxplayer00o1

    Wednesday, September 23, 2015, 2:47 PM

Economy

China government think tank says economy may grow 6.9 percent this year: state media

China's economic growth will likely slow to 6.9 percent this year amid gloomy short-term macroeconomic trends and the threat of deflation, state media quoted an annual report from a top government think tank as saying.

Crisis-hit Puerto Rico takes up VAT route to shore up revenues

The debt-ridden Island Puerto Rico has opted for value-added tax (VAT) as a measure to enhance revenues for the government. The new VAT structure will come into force starting1 April 2016.

Forecast for economic growth in 2016 gets gloomier (Canada)

For the third month in a row, economists are lowering their expectations for growth in 2016, adding pressure on federal finances at a time when party leaders are crisscrossing the country promising billions in new spending and tax cuts.

Russian Options Narrow as Putin Looks to Exporters' Windfall

The budget debate is putting the spotlight on an economy cratered by a selloff in oil, which has paralyzed investment and plunged millions into poverty amid the biggest collapse in living standards during Putin’s 15 years in power. With Russia at threat of the longest recession in two decades, the government is struggling to find the right policy mix after responding this year with budget cutbacks and a stimulus program for banks and industry.

China’s Workers Stumble as Factories Stall

Now, many migrant workers struggle to find their footing in a downshifting economy. As factories run out of money and construction projects turn idle across China, there has been a rise in the last thing Beijing wants to see: unrest.

Bad-Loan Hiatus Ending for Canada Banks as Oil and Economy Slump

Soured loans from slumping oil prices and a weakened economy are likely to push Canada’s banks next year to set aside the most money since 2009.

Mutual Funds Face New U.S. Rules for Preventing Investor Runs

Under the proposal, funds would have to maintain a minimum cushion of cash or cash-like investments that can be sold within three days. Funds also could charge investors who pull their money on days of elevated withdrawals.

Britain's £1.5 TRILLION debt pile keeps growing as Government borrowing sees shock rise

Public sector net debt stood at a staggering £1.505trillion in August, an increase of £68.9 billion over the past year, data from the Office for National Statistics (ONS) today revealed.

Vermont’s debt hits $3.2 billion

When divided among the state’s taxpayers, the shortfall amounts to $14,300 of debt per person.

Chicago Faces Record Tax Increase as Pensions Compound Deficit

Emanuel, a Democrat, on Tuesday will propose raising property taxes by $588 million over the next four years. That would inject cash into the city as it faces a $426 million deficit and a pension-plan debt that’s grown to $20 billion, more than $7,000 for each resident.

Large manufacturers' revenue in S. Korea posts biggest decline in 12 years

Revenue of large manufacturing companies in South Korea posted the largest decline in 12 years during the second quarter due to lower commodity prices and the slump in the shipbuilding industry, central bank data showed Tuesday.

Australia house-price inflation accelerates in Q2

The central bank has said for some time now that it is monitoring the risks associated with the housing market. Some economists are concerned that once demand for housing tapers off there could be a sharp correction in house price, which could cause financial instability.

Brazil Treasury fails to sell fixed-rated notes at auction

Brazil's Treasury bought back fixed-rate notes but failed to sell new ones at two extraordinary auctions on Monday as government bond yields soared amid a growing political and economic crisis.

Asia Development Bank cuts growth forecasts for China, Asia

In an update to its flagship Asian Development Outlook released in March, the Bank said growth in the region would hit 5.8 per cent this year and 6.0 per cent in 2016. March’s forecast was for 6.3 per cent for both years.

Germany's Five-Year Yields Drop Below Zero as Equities Tumble

peculation of extended stimulus from the European Central Bank increased after Executive Board member Peter Praet said on Monday that policy makers would “forcefully react” to defend their inflation objective. Since the ECB started its 1.1 trillion-euro ($1.2 trillion) bond-buying program in March, inflation in the currency bloc has slowed to a near standstill, compared with the ECB’s goal of just below 2 percent.

China injects 50 billion yuan into market

China’s central bank pumped 50 billion yuan ($7.85 billion) into the money market via reverse re-purchase agreement (repo) on Tuesday, the first cash injection this week. The yield for the seven-day reverse repo stood at 2.35 percent, Xinhua news agency quoted the Bank of China’s (PBOC) statement as saying.

ECB's Nowotny Says Dangerous to Raise Rates Too Soon

"The most dangerous thing that can occur is if a central bank raises short-term interest rates too soon," said Ewald Nowotny. "That's a horror scenario."

Nigeria central bank governor under fire over currency controls

Godwin Emefiele has introduced a range of currency controls in recent months to try to halt the decline of the naira, which has lost about 22 per cent of its value since the oil price collapse began in July 2014.

Mexican Central Bank Holds Rates After Fed Inaction

The bank’s decision also benefits the country’s public finances as government borrowing costs in pesos will remain cheap, at a time when oil prices are constraining revenues and forcing the government to cut spending. For years, oil financed the bulk of Mexico’s budget.

Hungary Central Bank Sees Main Rate Staying at Record Low Longer

Hungary’s central bank said it will probably keep borrowing costs at a record low longer than policy makers had expected as economic growth is set to slow and inflation pressure remains low.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/21/15

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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9 Comments

  • Wed, Sep 23, 2015 - 4:32pm

    #1

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2963

    Central Banks Will Try to Monetize Government Debt When the Next

     

    Citigroup Strategist: Central Banks Will Try to Monetize Government

    Bloomberg5 hours ago
    The financial crisis was a hundred years' storm: an event so cataclysmic that it forced major central banks to flood the system with unprecedented liquidity and …

    Dour China Sept flash factory PMI casts pall over global markets

    Reuters9 hours ago
    The preliminary Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) fell to 47.0 in … 24., as investors sought refuge in U.S. Treasuries.

    China manufacturing contracts at fastest pace in more than 6 years

    Financial Times12 hours ago
    China's crucial manufacturing sector is having its worst month since the depths of the global financial crisis in early 2009, according to a preliminary reading of a …

    Export slump may nudge Taiwan to first rate cut since 2011

    CNBC13 hours ago
    With faltering external demand stifling growth prospects, Taiwan's central bank may finally give in to a rate cut at its quarterly meeting on Thursday, after having …

    German bond auction "fails" shine light on bank rules, yield funk

    Reuters3 hours ago
    Years of zero interest rate policy and large-scale quantitative easing from the U.S. and UK central banks, policies which the European Central Bank has latterly …
     

    Pimco: Fed 'may find it impossible' to escape lower bound of rates

    Reuters22 hours ago
    Clarida and Balls said although more than 40 central banks have eased monetary policy thus far in 2015, the odds of additional monetary easing by the …

     

    At 4-Per-Dollar, Brazil's Currency and Reputation Are in Tatters

    Bloomberg – ‎6 hours ago‎
    With Brazil's new-found wealth, Lula boosted government spending and subsidies to the poor, measures that helped push unemployment to a record low and lift 35 million Brazilians out of poverty over the past decade. Rousseff sought to build on those
     

    Portugal's 2014 budget deficit rises sharply after loan to troubled

    U.S. News & World Report4 hours ago
    LISBON, Portugal (AP) — Portugal's statistics agency has revised sharply upward the country's 2014 budget deficit, from 4.5 percent to 7.2 …

    Debt limit fight, not government shutdown, called credit rating risk

    Los Angeles Times3 minutes ago
    A federal government shutdown would not pose an immediate risk to the nation's AAA credit rating, but could endanger it if the fight spills over into a debt limit …

    Korea's Central Government Debt Exceeds 544 Trillion Won

    BusinessKorea13 hours ago
    The Ministry of Strategy & Finance announced on Sept. 22 that Korea's central government debt reached 544.3 trillion won (US$458.2 billion) as of the end of …

    China Debt Surge Echoes Japan Slowdown Pattern, Chanos Says

    Bloomberg1 hour ago
    Japan's total debt swelled to 176 percent of GDP in 1990 from 127 percent in 1980, … The government spent 1.5 trillion yuan ($236 billion) from the start of the …

    Europe's Negative Yields Abound as ECB Pressure to Ease Mounts

    Bloomberg1 hour ago
    Short-dated notes outperformed other euro-zone government debt amid … While the ECB's 1.1 trillion-euro bond-buying program pushed the average …

    Catalan leader intends to negotiate an 'amicable separation' from

    The Local.es5 hours ago
    "If there is no agreement, we will have no obligation to pay Spanish debt," he said, … debt is nearly equal to its own total gross domestic product, around a trillion …

    Study: Pennsylvania hides $53 billion in debt

    Pennsylvania Independent7 hours ago
    Pennsylvania fails to list $53 billion in debt on its balance sheet, giving it the third-most hidden debt among 10 Northeast states. Maybe it's no surprise then that …

    Gross Tells Fed to `Get Off Zero Now!' as Economies Run on Empty

    Bloomberg3 hours ago
    The Fed last week decided to keep its benchmark rate near zero, showing reluctance to end an era of record monetary stimulus in a time of market turmoil, rising …

    UPDATE 1-Thailand plans measures to help property sector – minister

    Reuters3 hours ago
    In its latest efforts to lift the economy, the junta this month announced stimulus packages worth 342 billion baht ($9.47 billion), including soft loans, to help small …

     

    Australia's housing boom has peaked at an 'awkward time': Morgan Stanley

    NEWS.com.au – ‎17 hours ago‎
    The investment bank believes Australia has about $80 billion of headroom under its triple-A credit rating and could allocate a good part of that to an infrastructure stimulus. It also argues the RBA will need to cut rates by another 50 basis points by

    MBTA report cites 'unsustainable' structural deficits

    Boston Business Journal – ‎20 hours ago‎
    The MBTA would need to contribute $472 million a year to its maintenance budget to maintain the existing backlog of $7.3 billion in needed repairs. To eliminate that backlog over a 25-year span, the MBTA would need to increase that annual budget to

    Rising unease to spark social tsunami

    Moneyweb.co.za14 hours ago
    … of R689.4 billion on deposit in South African banks, according to data compiled … also speaks to the trust deficit between the government/public sector and the …

    Russians Feel Pain as Sinking Ruble Pushes Up Medical Costs

    Wall Street Journal6 hours ago
    Imports across the board have become more expensive in Russia as … Over the past year, the ruble has weakened by about 45% against the dollar, and the …
     

    Russian Imports Plunge 39 Percent as Recession Takes Hold

    The Moscow Times (registration)22 hours ago
    The decline comes as the low price of oil, Russia's key export, shrinks the country's income and worsens an economic slowdown. Russia's ruble has weakened …
     

    Why Millions of Americans Are Raiding Their Retirement Savings

    TIME5 hours ago
    One in five can be called a post-crash skeptic—a person that experienced at least six different kinds of financial setback during the recession, like a job loss or …

    Health care costs rise again, and the burden shifts again to workers

    Ames Tribune – ‎12 hours ago‎
    The annual increase, though lower than in previous years, far outpaced wage growth and overall inflation and marked the continuation of a trend that in just a few years has dramatically shifted health care costs to workers. Over the past decade, the

    Employer Health Coverage for Family Tops $17000

    Wall Street Journal – ‎Sep 22, 2015‎
    Other surveys have shown that the move toward higher deductibles may be accelerating because of the Affordable Care Act's 2018 tax on relatively high-cost coverage. Early results of an employer poll by Marsh & McLennan Cos.' Mercer, released last week, …

    More households entering retirement with debt

    MarketWatch7 hours ago
    To get a sense of how recent the change in debt loads has been, I compare … In the case of credit card debt for households age 65+, both the percentage of …

    More resources companies 'teetering' on edge of default – report

    Reuters2 hours ago
    … and metals and mining companies will likely default on their debt in the near term … The companies are facing weak prices for oil, natural gas, coal, gold and …

     

    Treasury Yields at Zero Highlight Concerns Over Risk

    Wall Street Journal17 hours ago
    The reading was the lowest since March 2009, when China was grappling with the global financial crisis. Slowing manufacturing is bad news for copper, which …

     

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  • Wed, Sep 23, 2015 - 7:13pm

    #2

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2963

    McAlvany...Is a Cashless Society Inevitable?

    Listen starting at about 22 minutes:

    Is a Cashless Society Inevitable?

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  • Wed, Sep 23, 2015 - 7:32pm

    #3

    Taz Alloway

    Status Bronze Member (Offline)

    Joined: Feb 18 2010

    Posts: 461

    Koyaanisqatsi: Life Out of Balance

    Humpbacks swimming up Columbia River in search of food.

    http://www.opb.org/news/article/humpback-whales-oregon-washington-columbia-river/

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  • Wed, Sep 23, 2015 - 7:39pm

    Reply to #1
    DennisC

    DennisC

    Status Bronze Member (Offline)

    Joined: Mar 19 2011

    Posts: 101

    Thanks for the TIA

    Not necessarily for a Transient Ischemic Attack (it was close though) but for the Truth in Accounting organization link and report.  Glad to see that my locale is still in the top (or bottom) 10 along with a new monicker, i.e. "sinkhole" state.  Looks like Chris (the other Chris), Dannel, and Bruce are going to be busy keeping the bagholders from bailing too soon. Going to be so freaking awesome, don't you think?  And, everyone gets a trophy too!

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  • Wed, Sep 23, 2015 - 9:43pm

    #4

    Mark Cochrane

    Status Platinum Member (Offline)

    Joined: May 24 2011

    Posts: 828

    In case you didn't notice...

    Another part of that giant sucking sound coming from your wallet if you live in the United States. Our medical system is better in what possible way other than wasting money?

    Wages Can’t Keep Up With Rising Health Insurance Costs

    "Wages have increased by just 10% since 2010. Deductibles, meanwhile, have risen 67% over the same time span. Higher deductibles are supposed to help keep insurance premiums low, but they’ve been increasing too, up 24% since 2010."

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  • Thu, Sep 24, 2015 - 12:23am

    #5
    Uncletommy

    Uncletommy

    Status Bronze Member (Offline)

    Joined: May 03 2014

    Posts: 529

    That sucking sound can be heard across the border

    The medical system up here has done an okay job, up to now. But, with the privatization of drug patents and price increases of 2000% on old scarfed up drugs, it is just a matter of time. It's the oil and gas sector loans that will up the decibel levels:

     "At least 250 North American oil-and-gas producers and energy services firms borrowed $39.5 billion from lending syndicates involving Canada’s biggest banks, according to data compiled by Bloomberg. About a third of that outstanding amount, or $13.7 billion, is tied to at least 29 energy firms whose corporate bonds are trading at distressed levels, the data show.

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  • Thu, Sep 24, 2015 - 12:23am

    #6

    Mark Cochrane

    Status Platinum Member (Offline)

    Joined: May 24 2011

    Posts: 828

    Math and migration

    With reason, there is much being made about the great ongoing Syrian (and others) migration to Europe. With great fanfare, the moral arguments apparently swayed European sentiment to take in the wastrels and downtrodden masses showing up on their shores.

    None too surprisingly, the fault lines of European unity began soon after when the costs and quotas started being allocated.

    Migrant crisis: EU splits exposed as talks take place

    Splits within the EU on the relocation of 120,000 migrants have been further exposed as leaders hold an emergency meeting in Brussels.

    Slovakia is launching a legal challenge to mandatory quotas that were passed in a majority vote on Tuesday.

    What boggles my mind is not the understandable angst of the Balkan countries but the absolute inability of anyone at the BBC or apparently in Europe to do basic math. From the same article above we learn that :

    1. 6,000 migrants are now arriving on European shores each day.

    2. 7,000 migrants arrived in Austria from Hungary on Wednesday

    3. 8,750 migrants arrived in Croatia from Hungary on Tuesday (44,000 since last week when the Hungarian fence was completed)

    4. The aforementioned European agreement dropped the proposal to take in 54,000 migrants from Hungary though 'thousands' will be taken in from Italy and Greece).

    Now, even if we limit calculations to the probably low count of 6,000 people arriving per day, that pencils out, as Chris would say, to 20 days worth of migrants that the EU is currently arguing over how to allocate amongst themselves. They probably have more than that number of people already piled up at the border. What do they do for an encore in three weeks?

    I do not envy the EU the task that they are facing but they must have deployed economists to do their math. They are currently engaged in window dressing, not solutions.

    We had all better be prepared to see frequent images like this in the coming years because mass migrations are going to be a common feature of future decades because as water, oil and disposable incomes become increasingly limited we will find out just how many people are living unsustainably across the planet. What would any of us do if there were no water, food, or way to make a living?

    Winter is coming….

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  • Thu, Sep 24, 2015 - 1:35am

    Reply to #6

    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    Jack Frost.

    And to add to their predicament it's going to be a harsh winter in Europe. The Gulf Stream is not behaving itself.

    On the Bright side there won't be too many riots on the streets.  Just too cold to go outside.

    Any Inuit refugees will be OK as long as they can get sufficient fats. But I don't expect them to riot. Not their style.

    That's not to count out b0mbs though. I'll wager that some immigrants have only one tool in their tool box,  and it isn't a hammer. 

     

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  • Thu, Sep 24, 2015 - 3:09am

    #7
    pat the rat

    pat the rat

    Status Member (Offline)

    Joined: Nov 01 2011

    Posts: 115

    middle east

    Why all the migrants now , war in the middle east must be getting worst; who is failing?

       

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