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    Daily Digest 9/28 – VT’s Debt At $3.9B, Chicago Schools’ Credit Rating Sinks Deeper

    by saxplayer00o1

    Wednesday, September 28, 2016, 1:01 PM

Economy

Wisconsin Cities Face Billions Of Dollars In Underfunded Retiree Benefits

An investigation published this week by the Milwaukee Journal Sentinel found these local retirement obligations total $6.5 billion over the coming generation, with $4.7 billion of that in Milwaukee County alone.

Canada's lagging growth pressures policymakers to add stimulus

Historically low interest rates have encouraged Canadians to take on more debt, with household debt as a share of income reaching a record high 167.6 percent in the second quarter.

Moody's drops Chicago schools' credit rating deeper into junk

The nation's third-largest public school system has $6.8 billion of general obligation bonds outstanding. The Chicago Public Schools (CPS) is struggling with escalating pension payments that will jump to about $720 million this fiscal year from $676 million in fiscal 2016, as well as drained reserves and debt dependency.

U.S. Commercial, Multifamily Mortgage Debt Hits $2.9 Trillion in Mid 2016

"The amount of commercial and multifamily mortgage debt outstanding grew to a new record during the second quarter, despite a record drop in the balance of CMBS loans outstanding," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research.

Accounting group puts Vermont’s debt at $3.9 billion

While states have about $2.4 trillion in debt, they also have about $1 trillion to pay towards that amount, leaving about $1.3 trillion owed. When divided up among U.S. taxpayers, the debt shouldered by each is taxpayer is $13,514.

Emerging markets corp debt issuance hits $26 trillion in H1-survey

Global debt, across the household, government, financial and non-financial corporate sectors, rose by more than $10 trillion in the first half of 2016, surpassing $216 trillion, or 327 percent of global GDP.

Carney Enters Corporate Bond Market in Post-Brexit Stimulus Push (UK)

The central bank will seek to buy notes issued by companies including General Electric Co., United Utilities Group Plc and Rio Tinto Plc, according to a list distributed last week. Purchases will be made through reverse auctions starting at 11 a.m. in London.

ECB's Mario Draghi savaged by MEPs over negative interest rates and 'debt economy'

Mr Draghi told MEPs: "We have to accept the fact that low interest rates are a symptom of low growth." He added: "it's true that savers are being penalised by the current system and we are fully aware of that.. But whoever borrows money is benefitting."

Gulf States Continue Bumper Debt Issuance, Bahrain Next in Line

Persian Gulf states have been issuing bonds at their fastest pace ever this year, raising cash to replace lost oil revenues

Gold & Silver

Click to read the PM Daily Market Commentary: 9/27/16

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to dd@peakprosperity.com. 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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8 Comments

  • Wed, Sep 28, 2016 - 3:03pm

    #1

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2923

    Central banks loosen purse strings 200 times in less than two ye

     

     

    Central banks loosen purse strings 200 times in less than two years

    Reuters46 minutes ago

    Fifty seven central banks have cut rates or pumped stimulus into their economies since January 1, 2015, to boost growth, raise inflation or both, highlighting the ..

    According to Bank of America Merrill Lynch, the total number of interest rate cuts around the world since the collapse of U.S. investment bank Lehman Brothers in September 2008 unleashed the global crisis now stands at 669.

    IMF calls for action to defeat 'deflation trap'

    The Australian – ‎Sep 27, 2016‎
    “A deflation cycle would then emerge, with weak demand and deflation reinforcing each other, and the economy could end up in a deflation trap.” Even if this fate is avoided, persistent low inflation will lead people to expect prices to stagnate and

     

    Billionaire: Chinese real estate is 'biggest bubble in history'

    WJXT Jacksonville1 hour ago
    It's the "biggest bubble in history," he told CNNMoney in an exclusive interview … is slowing at the same time as high debt levels continue to increase rapidly.

    Italy cuts growth outlook, hikes deficit, reverses debt pledge

    Reuters – ‎16 hours ago‎
    The European Commission says Italy was already granted "unprecedented" flexibility, worth about 19 billion euros ($21.37 billion) in its 2016 budget. The government's latest growth projections remain more upbeat than those of most independent forecasters.

    BRIEF-Fitch says first US presidential debate did little to alter view …

    Reuters22 hours ago
    … first U.S. presidential debate did little to alter view that U.S. govt debt ratio will … NEW YORK, Sept 27 Royal Bank of Scotland Group Plc will pay $1.1 billion to …

     

    Deutsche Bank Credit-Swap Trading Surges to Six-Month High

    Bloomberg – ‎3 hours ago‎
    The U.S. fine, related to mortgage-backed securities, has ratcheted up pressure on Deutsche Bank, as it struggles with volatile markets, negative interest rates and tougher regulations. Chief Executive Officer John Cryan is seeking to turn the bank
     
     

    Deutsche Bank sells UK asset and battles bailout rumors

    Deutsche Welle – ‎4 hours ago‎
    Deutsche Bank announced on Wednesday it had sold Abbey Life Assurance company for 935 million pounds (1.1 billion euros, $1.22 billion) under efforts to restructure its business amid increasing regulation, negative interest rates and a competitive home …

    Rising pension costs hurting SC employees

    Spartanburg Herald Journal13 hours ago

    COLUMBIA — South Carolina's 32,442 state employees are contributing more of their paychecks than ever to the state's pension system, yet a deficit of $16.8

    Expert: Unfunded pensions in 7 Mich. cities total $1.7B

    The Detroit News20 hours ago
    Grand Rapids — Michigan has “a real problem” with the unfunded government retirement costs in its cities that has caused a mortgaging of “the future for far too …

    Dallas police seeing exodus as era of low returns costs pension

    Chicago Tribune20 hours ago
    Dallas's police and firefighters are quitting in droves, wagering that financial-market losses are about to render their promised pensions too good to be true.

     

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  • Wed, Sep 28, 2016 - 7:11pm

    #2

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2923

    House votes to override Obama veto of bill letting 9/11 families

    House votes to override Obama veto of bill letting 9/11 families sue Saudi Arabia

    The House's vote follows the Senate's, marking the first time Congress has overridden a veto by Obama. Obama has said allowing private lawsuits against foreign countries would be detrimental to U.S. interests. Saudi Arabia has strongly opposed the bill and threatened to liquidate its holdings of U.S. Treasurys if the bill is approved.

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  • Wed, Sep 28, 2016 - 7:21pm

    #3
    Edwardelinski

    Edwardelinski

    Status Bronze Member (Offline)

    Joined: Dec 23 2012

    Posts: 316

    California state Treasurer Punishing Wells Fargo for fraud:

    Wells has been locked out of underwriting municipal bonds and other securities for robbing its California citizens for a year.The 2 largest California pension funds are deciding what they will inflict as well.The Metropolitan Transit Authority of NY just kicked them to the curb as well.Expect more to follow…What will happen if Citi,JP Morgan etc had been up to the same tricks?This time,they are being hit where it hurts the most,so there's that…

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  • Wed, Sep 28, 2016 - 7:49pm

    #4

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2923

    Illinois now up to $8.3 billion in unpaid bills...borrows more

    Illinois sets sale of up to $1.7 billion of bonds for October

    Reuters1 hour ago
    A bipartisan legislative commission in July projected a $7.8 billion deficit. Rauner has said he expects the Democratic-controlled legislature to take up budget …

    In the meantime, Illinois' pile of unpaid bills continues to grow, hitting nearly $8.3 billion on Tuesday.

    Why People Have Been Worrying About Deutsche Bank, in 12 Charts

    Bloomberg5 hours ago

    How do you solve a problem like Deutsche Bank AG? Its share price fell to an all-time low this week amid concerns that the bank may lack the capital to service ..

     

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  • Wed, Sep 28, 2016 - 10:50pm

    #5

    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    An excellent analysis of Political Philosophy

    This thought provoking analysis is too rich to be represented by this one excerpt.

    In fairness, many establishment conservatives aren’t keen on this stuff either — but the alt-right would argue that they’re too afraid of being called “racist” to seriously fight against it. Which is why they haven’t. Certainly, the rise of Donald Trump, perhaps the first truly cultural candidate for President since Buchanan, suggests grassroots appetite for more robust protection of the western European and American way of life.

     

    http://www.breitbart.com/tech/2016/03/29/an-establishment-conservatives-guide-to-the-alt-right/

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  • Thu, Sep 29, 2016 - 4:19am

    #6

    Arthur Robey

    Status Platinum Member (Offline)

    Joined: Feb 03 2010

    Posts: 1814

    Double take.

    Just in case you  think your model is well calibrated.

     

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  • Thu, Sep 29, 2016 - 4:40am

    #7

    Time2help

    Status Platinum Member (Offline)

    Joined: Jun 08 2011

    Posts: 2221

    Dakota Access Pipeline Protest

    Military-Style Raid Ends Native Prayer Against Dakota Pipeline (TeleSur)

    [quote]North Dakota police with military-style equipment surrounded Native Americans gathered in prayer against the construction of the Dakota Access pipeline on Wednesday, disrupting their plan to cross sacred and treaty-protected land in protest of a project they fear will destroy their livelihood.

    “ND authorities deploy armed personnel with shotguns and assault rifles, military vehicles, and aerial spray on peaceful Water Protectors gathered in prayer,” wrote the Sacred Stone Camp, in a Facebook post.

    Officers with military-style armored vehicles and shotguns threatened the protesters, who call themselves “water protectors” for defending the Missouri River from imminent pollution, reported Unicorn Riot. Up to 21 were arrested, the channel reported.

    Witnesses filmed the crackdown but said their access their Facebook was blocked. One participant, Thomas H. Joseph II, posted a chilling video narrating the mobilization and his getaway. Helicopters are heard as he says that tear gas is being dropped, and an officer loads his gun as protesters, some on horseback, chant, "We have no guns."

    In the video, Joseph said that “one guy’s about ready to blast us” but later added that no fires were shot.

    “We gathered in prayer un-armed, prayed, sang songs, and attempted to leave," he later wrote in a Facebook post. "No threats, No vandalism, No violence was taken on our part.”

    Police and private security personnel have been more aggressively cracking down on actions against the pipeline since the governor declared a state of emergency. The state is currently investigating an incident in which contracted private security film Frost Kennels unleashed dogs during a nonviolent direct action, ending with six bitten, including a pregnant woman and a child, according to organizers at the action.[/quote]

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  • Thu, Sep 29, 2016 - 5:09am

    #8

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2923

    California pensions: How a deal went wrong and cost taxpayers b

    This year, state employee pensions will cost taxpayers $5.4 billion, according to the Department of Finance. That’s more than the state will spend on environmental protection, fighting wildfires and the emergency response to the drought combined.

    And it’s more than 30 times what the state paid for retirement benefits in 2000, before the effects of the new pension law, SB 400, had kicked in, according to data from the California Public Employees’ Retirement System…………..

    Today, the difference between what all California government agencies have set aside for pensions and what they will eventually owe amounts to $241 billion, according to the state controller.

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