Daily Digest

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Daily Digest 10/5 - Italy Debuts 50-Year Bond, Global Inflation Falls to 7-Year Low

Wednesday, October 5, 2016, 8:51 AM

Economy

Deutsche reawakens systemic fears amid talk of ‘Lehman moment’

By the end of last year, Deutsche reported a total notional credit exposure — a gross measure of all outstanding derivatives positions — of €42tn from derivatives trading.

Spain Increases Advance Tax Payments for Large Companies

Soto said companies aren't pleased with the changes partly because they come just as the tax year is coming to an end, and haven’t had time to prepare for new rules retroactive for the entire 2016 tax year.

Italy set to cut growth forecast, up debt

Brussels is particularly concerned about Italy's public debt, which has risen to more than 132 per cent of gross domestic product, the highest in the eurozone after Greece's.

IMF warns over China's 'dangerous' debt load

China's total debt hit 168.48 trillion yuan ($25 trillion) at the end of last year, equivalent to 249 percent of national GDP, the Chinese Academy of Social Sciences, a top government think tank, has estimated.

Mexico’s Pemex Sells $4 Billion in Bonds, Carries Out Debt Swap

The highly leveraged state company, which has had to slash its budgets as a result of the drop in oil prices, expects to end 2016 with debt of $97 billion, he added.

Bond yields will be no higher in 2021 than they are now -HSBC

But Major at HSBC argues that the huge overhang of global debt depresses growth and therefore keeps real natural interest rates low. Central bank balance sheets will remain bloated, and quantitative easing stimulus will continue, he argues.

Why Japan’s Godzilla-sized stimulus is a threat to investors

At this rate, the BOJ could run out of bonds to buy by the end of 2017 and is on track to becoming the largest shareholder in more than half of all companies in the Nikkei 225

Japan's monetary base hits record high for 10th straight month in September

According to the latest BOJ data, the monetary base at the end of last month, comprising cash in circulation and the balance of current account deposits held by financial institutions at the bank, stood at 412.84 trillion yen (4.04 trillion U.S. dollars), up 22 percent compared to the same time a year earlier.

Global Inflation Falls to Seven-Year Low

Global inflation rates fell for a second straight month in August and to their lowest levels in almost seven years, a period when the world economy was in the throes of a downturn that followed the financial crisis.

Report outlines how ECB could use #HelicopterMoney legally and independently

The QE for People campaign just released a new policy paper entitled Citizens’ Monetary Dividend – Upgrading the ECB’s Toolkit, which aims at demonstrating that the ECB can and should be able to distribute newly created money directly to citizens in case its usual tools do not work.

Bill Gross of Janus warns financial markets have become 'a Vegas casino'

He added: "Our argument is that NIMs (net interest margins) for banks, and the solvency of insurance companies and pension funds with long dated and underfunded liabilities, have been negatively affected and that ultimately, the continuation of current monetary policies will lead to capital destruction as opposed to capital creation."

This ‘bubble blind’ Fed is going to trigger another brutal recession

This corporate debt bubble isn't limited to the United States. Corporate debt in emerging markets has grown to $25 trillion, according to the UN Conference on Trade Development. This is 104 percent of emerging-market GDP, up from 57 percent at the end of 2008.

Italy Markets Debut 50-Year Bond

Italy’s debt sale comes as borrowing costs in developed nations have sunk to historic lows this year amid tepid global growth and inflation and unprecedented central bank bond-buying. Investors reaching for returns have bought bonds as long as a century and from countries with lower credit ratings.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/4/16

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."

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saxplayer00o1's picture
saxplayer00o1
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Posts: 4236
IMF says a third of banks in top countries are too weak to survi

The IMF Is Worried About the World's $152 Trillion Debt Pile

Bloomberg-23 minutes ago
Gross debt in the non-financial sector has more than doubled in nominal terms since the turn of the century, reaching $152 trillion last year, and it's still rising, the ...

Global debt hits all-time high of $152 trillion as IMF warns of world-wide economic stagnation

Telegraph.co.uk - ‎40 minutes ago‎
Global debt has hit a record high of $152 trillion, weighing down economic growth and adding to risks that recovery could turn into stagnation or even recession, the International Monetary Fund has warned. In a worst-case scenario the IMF also fears ...

 

IMF says a third of banks in top countries are too weak to survive

A third of biggest banks in the world’s richest countries are so weak their problems could not be solved even by a recovery and rising interest rates, the International Monetary Fund said in a new report released Wednesday.

Japan ex-economy minister Takenaka says BOJ to cut negative rates further

Reuters - ‎4 hours ago‎
But he said the yen could face downside pressure if the Federal Reserve raises U.S. interest rates this year and the BOJ lowers its negative interest rates. (Reporting by Kaori Kaneko, Yuji Aso and Izumi Nakagawa; Editing by William Mallard and Simon ...

Harvard Borrows Big to Cut Cost of Crisis-Era Derivative Losses

Bloomberg-5 hours ago
The wealthiest U.S. college plans to sell $2.5 billion of bonds this week to refinance debt amassed after the 2008 credit crisis, which led it to pay more than $1.25 ...

Illinois Renegotiates Derivative Deals as Rating Approaches Junk

Bloomberg-19 hours ago
... to refinance derivative-laden debt deals after its rating was downgraded to junk by ... Illinois is straining under a more than $100 billion shortfall in its pension ...

Short on cash, cities and states consider taxing nonprofits>

PBS NewsHour-22 hours ago

Yale, a nonprofit despite its $25 billion endowment and sprawling property (it ... The state's most recent budget had a deficit of $960 million, prompting wide cuts ..

Rising cost of Medicaid expansion is unnerving some states

Bradenton Herald-19 minutes ago
In Kentucky, a state struggling to manage its pension debt, Republican Gov. Matt Bevin is asking for federal authorization to charge Medicaid enrollees up to $15 ...

 

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pinecarr
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Posts: 2259
The USA’s Day Of Reckoning (Hidden Secrets Of Money, Episode 7)

Mike Maloney's "Hidden Secrets Of Money" Episode 7 was released today:

In episode 7 of Hidden Secrets of Money, Mike Maloney glimpses into the near future to show you how fast the U.S. dollar and economy could collapse. You’ll learn about the velocity of currency, a concept economists try to complicate but is actually quite simple when you realize it has more to do with psychology than numbers. You’ll also see all the potential moves the Federal Reserve will attempt to prevent disaster and how they will all fail.

Mike also takes you back to the 1920s to show you the astonishing parallels to today and what life could be like in the years ahead. He is joined by Jim Rickards and Rick Rule who provide further insights into the bond markets, currency creation, and of course precious metals. It’s only a matter of time before USA’s day of reckoning.  It’s only a matter of time before USA’s day of reckoning.

PS Hat-tip to Kenneth Pollinger; I just saw he posted about this in yesterday's DD

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Time2help
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Fake News and False Flags

Fake News and False Flags (Bureau of Investigative Journalism)

Martin Wells worked for Bell Pottinger in Iraq during 2006-8

Quote:

The Pentagon gave a controversial UK PR firm over half a billion dollars to run a top secret propaganda programme in Iraq, the Bureau of Investigative Journalism can reveal.

Bell Pottinger’s output included short TV segments made in the style of Arabic news networks and fake insurgent videos which could be used to track the people who watched them, according to a former employee.

The agency’s staff worked alongside high-ranking US military officers in their Baghdad Camp Victory headquarters as the insurgency raged outside.

Bell Pottinger's former chairman Lord Tim Bell confirmed to the Sunday Times, which worked with the Bureau on this story, that his firm had worked on a “covert” military operation “covered by various secrecy agreements.”

Bell Pottinger reported to the Pentagon, the CIA and the National Security Council on its work in Iraq, he said.

Bell, one of Britain’s most successful public relations executives, is credited with honing Margaret Thatcher’s steely image and helping the Conservative party win three elections. The agency he co-founded has had a roster of clients including repressive regimes and Asma al-Assad, the wife of the Syrian president.

In the first media interview any Bell Pottinger employee has given about the work for the US military in Iraq, video editor Martin Wells – who no longer works for the company – told the Bureau his time in Camp Victory was "shocking, eye-opening, life-changing.”

The firm’s output was signed off by former General David Petraeus – then commander of the coalition forces in Iraq – and on occasion by the White House, Wells said.

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