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Daily Digest 9/21 - U.S. Building Up To Pension Crisis, Chinese Debt "Above Danger Zone"

Wednesday, September 21, 2016, 8:10 AM

Economy

RETIREMENT CRISIS: Millions have NO IDEA how they will pay bills in old age (UK)

“Unlike previous generations, we have become a nation that’s unwilling to save toward the future cost of retirement or to pay for the advice that most of us will need in order to build a successful retirement portfolio.”

CalPERS forecasts funding gap could grow to $9.2 bln in 15 years

The funding gap is projected to widen from about $1.2 billion this year, according to CalPERS....Such warnings have been echoed by public pension funds across the nation, where the costs of aging baby boomers and expensive retirement benefits are growing faster than contributions from current public workers and municipal governments.

US building up to pension crisis

The numbers are severe. According to the National Institute on Retirement Security, nearly 40m working-age households — 45 per cent of the total — had no retirement savings whatsoever in 2013, whether an employer-sponsored 401(k) plan or an individual retirement account (IRA).

Gulf budget deficits to peak this year

The combined deficit of the six Gulf Cooperation Council (GCC) states is forecast to hit $153 billion in 2016, up from $119 billion last year, Kuwait's investment firm KAMCO Research said.

Monte dei Paschi's shares, bonds hit by worries on emergency plan

But to cut the amount of capital to be raised on the market, Monte dei Paschi is considering converting some subordinated debt into equity, sources have told Reuters.

Nigeria Plans N4.72 Trillion Stimulus for Troubled Economy

Following the National Bureau of Statistics (NBS) recent official confirmation that Nigeria's economy had slipped into one of the worst recessions in its history, the government convened a ministerial retreat last week to rally economists' opinions on possible way out of the doldrums.

Is China Building a Road to Ruin?

Few dispute that debt has become the Achilles’ heel of the Chinese economy as the government builds frantically to boost growth at all costs, even as it seeks to rebalance the economy toward services and consumption. McKinsey calculates that between 2000 and 2014 China added $26.1 trillion to its debt, a figure greater than the GDP of the U.S., Japan and Germany combined.

Deutsche Bank Goes to Crisis-Era Well

What's a bank to do when regulators want it to offload risk to prevent a repeat of the last financial crisis? Why turn to a complicated derivative transaction commonly associated with that same crisis, of course.

Chinese debt "three time above danger zone"

Video

The big question of Kenya's piling debt

Commentators would soon swallow their soothing sentiments when ambitious infrastructure plans blew government expenditures beyond the ceiling and Kenya went on a borrowing spree almost doubling the debt to GDP ratio in under four years.

Comptroller: NY student loan debt hits $82B

Student loan debt more than doubled in New York over the last decade from $39 billion to $82 billion, according to a new report from state Comptroller Thomas P. DiNapoli. The growing debt load is likely the result of rising college costs and a steady increase in the number of individuals taking out student loans, the report finds.

New Report Outlines Higher Education’s $2.7 Billion ‘Debt Bomb’

A detailed case study of 19 major institutions, ranging from Ivy League schools like Harvard and Columbia, to state universities like the University of Michigan, to a variety of smaller state schools local community colleges, found that these institutions were involved in risky swaps deals that had already cost schools $2.7 billion in unnecessary fees—enough to pay tuition and school fees for 108,000 students in the sample group.

Debt and Death Bind Chicago as Emanuel Seeks to Bolster Cops

Every man, woman and child in Chicago is already on the hook for $12,600 to rescue wobbly public pensions. This week, residents will learn from Mayor Rahm Emanuel how he plans to add more police to stem a wave of more than 500 killings and 2,500 shootings, mostly in black and Hispanic neighborhoods. The body count outstrips that of New York and Los Angeles combined.

China's first debt-to-equity swap plan approved - report

Policymakers hope the swap plan will help clean up a bad debt problem that is increasingly worrying global investors amid warnings that a banking crisis is looming.

China Risks $375 Billion of Shadow Banking Losses, CLSA Says

“Shadow financing is banking reform gone wrong given that the key driver of growth has been the banks circumventing regulations to protect their margins,” analyst Francis Cheung wrote in the report. “Shadow financing has grown rapidly, benefiting from implicit government guarantees despite being a channel for credit to higher-risk industries.”

Buyers keep faith in Chinese province seen as test of debt tolerance

The country's debt has soared to 250 percent of GDP and the Bank for International Settlements (BIS) warned in a report published on Sunday that a banking crisis was looming in the next three years.

Canadian household debt bigger than national output

Statistics Canada reports that nationwide household debt reached unprecedented heights in the second quarter of 2016, surpassing the country’s gross domestic product (GDP) for the first time. The main reason was greater borrowing due to historically low interest rates, according to the agency.

ECB corporate bond buying hits record pace

That’s the highest weekly purchase since the ECB started buying corporate bonds at the start of June. It brings the ECB’s total corporate bond purchases to €25.6bn.

Markets Have Become More Dependent on Central Banks, Says BIS

The BIS has for years warned that the global economy is too dependent on its central banks, whose money-printing power allows for a rapid response to crises. The result is that central bank money boosts asset prices even if underlying economic conditions haven’t changed.

Calstrs to Miss 7.5% Return Goal for Third Straight Year

Ailman said Calstrs is reducing its exposure to fixed-income investments to increase returns in the current low- and negative-interest rate environment. He said Calstrs is looking at long-short equity funds to reduce losses when markets turn down.

German savings banks expect 500 mln euro hit from negative ECB rates -sources

The ECB began charging banks to deposit excess funds with it in 2014 as part of its effort to spur higher bank lending and economic growth but demand for credit in Germany has remained subdued. The deposit rate is currently -0.4 percent.

Gold & Silver

Click to read the PM Daily Market Commentary: 9/20/16

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."

8 Comments

saxplayer00o1's picture
saxplayer00o1
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Posts: 4239
Reckoning Comes for U.S. Pension Funds as Investment Returns Lag

Reckoning Comes for U.S. Pension Funds as Investment Returns Lag

Bloomberg-5 hours ago
The $1.9 trillion shortfall in U.S. state and local pension funds is poised to grow ... The unfunded liabilities of U.S. public pensions -- which measures how much ...

Global negative-yielding debt shrinks to $10.9 trln -Fitch

Reuters - ‎30 minutes ago‎
12 from its recent peak of about $11.7 trillion in late June after Japanese debt yields rose in recent months, Fitch Ratings said on Wednesday. Japan still accounted for 63 percent of the total sovereign debt in negative yield territory, but the amount ...
 

Brazil's Rio de Janeiro Goes Into Default after Failing to Pay Inter ...

Latin American Herald Tribune-22 hours ago
If and when the state cures the payment default on this debt (or when the sovereign pays the guarantee), if it remains current on its other debt service payments ...

OECD: Negative rates threaten financial stability

MarketWatch - ‎5 hours ago‎
Failure to confront a "backlash" against globalization would condemn the global economy to a "low growth trap," the Organization for Economic Cooperation and Development said Wednesday, as it also warned that very low and negative interest rates are ...

OECD cuts outlook for global economy, and Canada's too

CBC.ca - ‎1 hour ago‎
"Exceptionally low – and in some cases negative – interest rates are distorting financial markets and raising risks across the financial system," the OECD said. "While weak demand is surely playing a role in the trade slowdown, a lack of political ...

Helicopters Circle Over Bank of Japan With Kuroda Running Out of ...

Bloomberg-14 hours ago
That's putting pressure on Haruhiko Kuroda, the governor of the Bank of Japan, to move beyond his existing program of negative interest rates and quantitative ...

Sell your long-term bonds, billionaire Paul Singer warns

CNBC-1 hour ago

But central bank policies since, from zero-percent rates to bond and equity-buying programs to talk of even "helicopter money … to fund infrastructure spending" ..

BOE's Saunders: Central Bank Isn't 'Out of Ammunition' to Support UK Economy

Wall Street Journal - ‎25 minutes ago‎
LONDON—The Bank of England has the scope to loosen policy further if the British economy weakens, the central bank's newest policy maker was quoted as saying Wednesday, although he added he may consider the need for higher borrowing costs if ...

China chalks up $667-billion debt pile over toll roads

Reuters-6 hours ago
SHANGHAI China's toll roads have stacked up a debt pile of 4.45 trillion yuan ($666.96 billion), with almost 80 percent of their annual income last year going to ...

Mississippi's unfunded debt would cost each citizen $11800

Watchdog.org-20 hours ago
DEEP IN DEBT: According to the reform group Truth in Accounting, each Mississippian owes $11,800 to cover the state's $8.4 billion in unfunded debt.

US state, local govt tax revenues down 0.6 pct to $338 bln in Q2

Reuters-Sep 20, 2016
Property taxes collected grew 4.2 percent to $99.4 billion. ... Petróleo Brasileiro SA is seeking to reduce the largest debt burden among global petroleum firms ...

Pressure Mounting on U.K. Budget Deficit as Growth Slows

Bloomberg-6 hours ago

The U.K. fiscal deficit is declining more slowly than the government forecast as ... The deficit for August alone was 10.5 billion pounds, slightly higher than ..

thc0655's picture
thc0655
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Are racist cops a big problem killing innocent black men?

https://www.prageru.com/courses/race-relations/are-police-racist

I read MacDonald's book The War on Cops back in August.  (This video touches on just a few of the data points from the book.  I'd recommend it for anyone wanting data on racism amongst police, especially how it relates to cops shooting black males.  Anyone wanting to wrap their head around the dramatic spikes in violence in places like Chicago would have their eyes opened.  

The above video and the book have nothing to say about incompetent display of police work in Tulsa being discussed on yesterday's Daily Digest.

reflector's picture
reflector
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Posts: 279
year round fruit trees

 

5 fruit trees that will have you eating for the whole year:

thc0655's picture
thc0655
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Posts: 1714
New information on the Charlotte, NC police shooting

http://bearingarms.com/bob-o/2016/09/21/black-lies-matter-keith-scotts-family-apparently-made-story-died/

It really should have been obvious from the very beginning yesterday afternoon, if we had been paying attention, and journalists were doing their jobs as skeptics looking for facts, instead of a click-bait-driving narrative.

After Keith Lamont Scott was shot and killed by a Charlotte-Mecklenburg Police Department (CMPD) team attempting to serve a warrant on another person yesterday, his family concocted a tale of a man who was unjustly executed by police for no reason at all.

They said he only had a book.

They claimed he didn’t have a gun.

They claimed that he was tased, then shot four times by plainclothes officers who ran up on him with guns drawn, and that they yelled “Gun!”and murdered him.

Then they claimed all white people were devils, and responsible for his death.

But Keith Lamont Scott was not shot by a white officer.

He was shot and killed by an African-American CMPD officer.

There was no book nearby.

And there was a gun, which other witnesses in the apartment complex admit seeing in Scott’s hands as officers warned him repeatedly to put it down.

Scott’s family apparently made up their story about how he died as they went along.

Keith Lamont Scott was not approached by a solitary officer in plainclothes, or even a group of plainclothes officers.

Scott was approached by three uniformed CMPD officers, and a fourth officer wearing street clothes and a CMPD-issued vest emblazoned with the word “POLICE” in bold letters...

Not only were there four officers in this warrant team who were in uniform or displaying badges and police issue armor and who identified themselves in front of witnesses, they reportedly gave him numerous warnings to drop the gun.

Charlotte police warned 43-year-old Keith Lamont Scott again and again to drop his handgun before an officer shot and killed him, the police chief announced Wednesday morning, after riots damaged patrol cars and injured at least 16 officers, one of whom was hit in the face with a rock.

Police Chief Kerr Putney said during a news conference that officers were searching for a suspect Tuesday when they saw Scott exit a vehicle with a handgun at an apartment complex on the city’s northeast side. “The officers gave loud, clear verbal commands which were also heard by many of the witnesses. They were instructing the subject, once he got out of the vehicle, to drop the weapon… Mr. Scott exited his vehicle armed with a handgun as the officers continued to yell at him to drop it.”

Putney said Officer Brentley Vinson shot Scott because the man posed a threat. Vinson is black, as was Scott.

“It’s time to change the narrative, because I can tell you from the facts that the story’s a little bit different as to how it’s been portrayed so far, especially through social media,” Putney said.

Because of the lies of Keith Lamont Scott’s racist, dishonest, and vicious family on social media there were more than a dozen people injured in riots last night. Vehicles were stopped on highways, their innocent occupants terrorized, and their cargoes looted.

Arson was committed.

A city was held hostage.

All because Keith Lamont Scott wouldn’t put his hands up, and police were forced to shoot, and his family simply could not be honest about what really occurred.

Perhaps they should shift their focus to Tulsa, and let this one go.

 
cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
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Posts: 5975
Thank you tom
thc0655 wrote:

Perhaps they should shift their focus to Tulsa, and let this one go.

Tom, first thank you for your excellent and complete responses in the DD thread from yesterday.  

Second, I agree with you on this one in Charlotte...plenty of consistent stories out and about that the man who was shot and killed got out of his car with a gun in hand, refused to drop it upon several increasing commands, and was shot and killed by police.  Hopefully everyone here can agree that exiting a car with gun in hand in the presence of police who are telling you to drop it is a very bad idea, if your plan is to not be shot by police.

This event is in no way comparable to Tulsa.  My deepest concern, actually, was how primed and ready the family was to falsely spin the tale into something more sinister, presumably to whip up attention and anger.  Seems to me that inciting a riot is a bad thing to do, especially on falsified information.

My vote here is actually for the possibility of charges against one or more of his family members.

Time2help's picture
Time2help
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Posts: 2890
Could swing either way...

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
A Very important analysis by PCR.

You are being played again.

This time we all lose. Not just Germany.

 

Here are his views on Powers.

http://www.paulcraigroberts.org/2016/09/19/deconstructing-samantha-power...

And here is her husband.

https://en.m.wikipedia.org/wiki/Cass_Sunstein

I note that he is a Professor of Jurisprudence. I don't think he was at the meeting between the Clintons and the Law on the tarmac. Can you get a sense of where this is going?

So what's it to be boys and girls? Armageddon or RAGNAROK.? You don't get to choose.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
What it looks like

Spot the looters. 

 

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