Daily Digest

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Daily Digest 10/12 - Alaska Risks Another Downgrade, Japan Passes $32B In Economic Stimulus

Wednesday, October 12, 2016, 9:25 AM

Economy

Alaska Risks Another Downgrade With Record Bond Sale

Governor Bill Walker is using money from next week’s $2.4 billion sale -- the equivalent of $3,186 for every resident -- to pay down the state’s debt to public-employee retirement funds, wagering it can earn more on stocks, bonds and other investments than it will cost to borrow.

Japan Passes $32 Billion in Extra Economic Stimulus, but Some Seek More

Japan’s continual spending since the 1990s has brought government debt to nearly 250% of annual economic output, the worst ratio in the world, without generating sustained growth.

A $1 Trillion Paradigm Shift Changes Funding Markets Forever

After years of wrangling with regulators, the $2.7 trillion industry will give up its rock-solid, dollar-for-dollar guarantee for institutional funds that invest mainly in riskier, non-government debt.

China banks may need $1.7 trillion injection as credit quality worsens: S&P

Debt has emerged as one of China's biggest challenges, with the country's debt load rising to 250 percent of gross domestic product (GDP). Excessive credit growth is signaling an increasing risk of a banking crisis in the next three years, the Bank of International Settlements (BIS) warned recently.

Citi CEO Promotes Version of 'People's QE' for the U.S.

"The probably more effective mode of QE going forward is going to be some type of infrastructure projects, here in the U.S.," Corbat said in his remarks.

It would be wrong to abandon the policy of negative rates (Kenneth Rogoff)

Some people argue that negative interest rates are unnatural and unprecedented. This is certainly an emotive topic but we should at least get the facts straight. Negative rates are not unprecedented in any meaningful sense. Before paper currency, monarchs routinely debased money, for example by introducing coins with a lower silver content and using these to repay debts.

With soaring demand come weaker assurances for U.S. municipal investors

The deal, rated just above junk status, is emblematic of a fever that has swept the $3.7 trillion U.S. municipal bond market: yield-chasing investors not only piling into riskier debt, but also increasingly willing to accept less protection in the event of a default.

Negative-Yield Debt Falls to $10.7 Trillion After September Rise

The market value of negative-yielding sovereign, government-related, corporate and securitized debt in the Bloomberg Barclays Global Aggregate Index hit $12.2 trillion in June. That was the highest month-end total since the figure began its unprecedented climb in August 2014, when the total was $476 billion, up from less than $7 billion a year before that.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/11/16

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."

5 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4236
More Americans Falling Behind on Car Loan Payments, S&P Says

BOJ ready to act if global downturn threatens inflation goal: board member

The Japan Times - ‎5 hours ago‎
... modify the framework of its bond-buying program to keep the yield of bellwether 10-year government debt at around zero percent, while leaving its negative policy rate unchanged at minus 0.1 percent. Kuroda has said deepening a key negative interest ...

More Chinese firms unveil debt swaps as Beijing struggles to reduce ...

Reuters-1 hour ago
Construction Bank will conduct a debt-to-equity swap with Yunnan Tin Group, ... Less leverage almost always means slower economic growth in the short run, ...

China Cities Face End of Fairy Tale as Default Risks Rise

Bloomberg-12 hours ago
... to support the 5.3 trillion yuan ($789 billion) of outstanding onshore notes from ... “The debt swap program for local governments allows local governments to ...

Australia Sells A$7.6 Billion of 30-Year Bonds in Record Deal

Bloomberg-10 hours ago
The face value of the government debt pile at the end of last week was A$443 billion and budget estimates have it climbing to almost A$500 billion by the end of ...

Nigeria: Report - Govt May Be Approaching Debt Trap

AllAfrica.com-3 hours ago
It, however, stated that Nigeria is still within the healthy debt stock ratios. ... showed that the federal government debt as at June 2016 was N13.79 trillion.

More Americans Falling Behind on Car Loan Payments, S&P Says

Bloomberg-17 hours ago
The ratings firm said it may have to downgrade some subprime auto loan ... verify that applicants can repay their debt, but car lenders do not have that obligation.

Europe Worries Portugal Is Prone to a Debt-Crisis Relapse

Wall Street Journal-18 hours ago
The International Monetary Fund warned in September that while the debt is ... where Prime Minister António Costa brushed aside concerns of a debt default.

Charleston police, fire pension plan deficit spikes

Charleston Gazette-Mail (subscription)-17 hours ago
The unfunded liability in Charleston's older pension plan for firefighters and police officers jumped more than $40 million over one year, but the city's treasurer ...

Health costs could eat up most of your Social Security benefits

CNBC-52 minutes ago

Health care costs could drain your Social Security benefits in retirement, ... could spend an estimated 70 percent of her retirement check on health care costs,

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3200
grading presidential candidates on scientific knowledge

https://www.scientificamerican.com/article/grading-the-presidential-cand...

With the recent interest on PP in the Presidential election, this info may be of interest to voters.

Quote:

Two weeks ago, Scientific American asked for your help in grading the presidential candidates on their answers to 20 questions about various aspects of scientific endeavor. The questions were refined by a group of scientific institutions representing more than 10 million scientists and engineers, with nonprofit organization ScienceDebate.org as the facilitator.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Asgard

It would appear that there are others of like mind.

Of cause there will be nay sayers.There always are. History does not recall their names, nor do they cover themselves in Glory

A team of scientists, engineers and lawyers have unveiled a proposal for an independent "space nation" named Asgardia, comprised of satellites to create a "independent platform free from the constraint of a land-based country's laws".

 

http://www.abc.net.au/news/2016-10-13/asgardia:-scientists-unveil-proposal-for-'space-nation'/7928094?section=science

Pagans Rock.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4236
Health-care costs eat up record 8% of household budgets in wake

 

Health-care costs eat up record 8% of household budgets in wake of Obamacare

Ottawa's deficit will be $16.5B wider than forecast over next 5 years ...

BNN-23 minutes ago
Canada's federal fiscal deficit over the next five years will be $16.5 billion more than what the government forecast in its March budget, according to a TD ...

ECB to keep policy steady in October; extend, tweak QE in December

Reuters-1 hour ago
But a steep-fall in global bond yields this year has meant the ECB is running out of sovereign debt to buy and it needs to tweak its own rules to ensure its QE ...

One Japanese Bank's Reach for Yield: $1 Billion in US Mortgage ...

Wall Street Journal-5 hours ago
“The Bank of Japan 8301 -0.14 % 's negative interest rates policy in January was a decisive blow to our conventional investment approach,” said Ichiro Yamane, ...

Nigeria central bank on edge as 500-per-dollar looms on naira black market

Reuters - ‎12 minutes ago‎
A central bank spokesman denied that there had been an actual media gag, but no major newspaper reported the protest after a meeting with the bank. "We will not get blackmailed. Mr Emefiele is working his arse off," he told reporters. In June, Nigeria ...

 

Why China's banks may eventually need a nearly $2 trillion capital ...

MarketWatch-18 hours ago

In the worst case scenario, bad debt could surge to as much as 17% of total loans, requiring $1.7 trillion in new capital, equival

Household Debts Increased by 6 Trillion Won in a Month

BusinessKorea-10 hours ago
The increase in September was smaller than that of August, which was 8.6 trillion won (US$7.62 billion). However, it is hard to think that household debts show a ...

BOK cuts 2017 growth forecast to 2.8%

The Korea Herald - ‎6 hours ago‎
Korea's top conglomerate Samsung's proportion in Korean exports is not small. According to data from the Korea International Trade Association, the company's mobile shipments took up 8.6 percent of total exports worth 593 trillion won ($522 billion) in ...

Daewoo Shipbuilding to Cut Workforce 24% Amid Mounting Losses

Bloomberg - ‎Oct 12, 2016‎
Korea Development Bank and Export-Import Bank of Korea, two key creditor banks of Daewoo Shipbuilding, pledged in October last year to provide 4.2 trillion won ($3.7 billion) in loans and equity. Korea Development Bank is also the shipbuilder's biggest ...

Incoming governor of Mexican state Veracruz says bailout needed

Reuters-15 minutes ago

Between 2010, when Duarte took office, and the end of last year, the debt of Veracruz more than doubled to 45.9 billion pesos, according to finance ministry

Exclusive: Deutsche Bank 'hiding risk as it takes stealth underworld ...

Express.co.uk-22 hours ago
The bank also went back to the US high-grade bond market yesterday to sell an additional £1.22 billion worth of debt, offering more than double the yield it paid ...

Preckwinkle to propose Cook County tax on pop, lemonade, sports ...

Chicago Tribune-15 hours ago
... a penny-an-ounce tax across the U.S. would result in $17 billion in health care ... The rest is going toward construction projects and to make payments on debt ...

Saudi Arabia, Where Even Milk Depends on Oil, Struggles to Remake Its Economy

New York Times - ‎5 hours ago‎
The budget deficit was nearly $100 billion last year. The country's foreign reserves have dropped by a quarter since oil prices started falling in 2014. The government has taken loans from foreign banks and will try to borrow more from the global bond ...

Inflation in Venezuela seen hitting 1500% in 2017 as crisis goes ...

CNBC-33 minutes ago

"Regardless of whether the government is able to avoid a debt default in the near term, an inevitable macroeconomic reckoning is approaching which will have ..

Illinois warns bondholders about possible pension payment delay

Reuters-17 hours ago
Illinois already has the lowest credit ratings among the 50 states. A budget impasse, along with a $111 billion unfunded pension liability and a growing pile of ...

 

Grover's picture
Grover
Status: Platinum Member (Offline)
Joined: Feb 16 2011
Posts: 878
Grading and Degrading
Doug wrote:

https://www.scientificamerican.com/article/grading-the-presidential-cand... With the recent interest on PP in the Presidential election, this info may be of interest to voters.

Quote:

Two weeks ago, Scientific American asked for your help in grading the presidential candidates on their answers to 20 questions about various aspects of scientific endeavor. The questions were refined by a group of scientific institutions representing more than 10 million scientists and engineers, with nonprofit organization ScienceDebate.org as the facilitator.

Doug,

Just for reference, you wrote that on 10/12/2016. Hillary may be the smartest candidate according to Scientific American, but I bet she tops the list on corruption as well. Here is a listing (this is only 1 of 13 separate pages ... more links at the bottom of the linked "vaskal" page) of e-mails listed by category from Wikileaks: http://www.vaskal.ca/podestafiles.

In case you are poo-poohing Wikileaks, here are some quotes noted near the bottom of the linked page:

 

WikiLeaks has a perfect decade long record for accurate vetting. That is why no one challeges the #PodestaFiles, including the White House.

 

— Wikileaks, #PodestaFiles publisher

Not one person has identified even a single email or document released by WikiLeaks of questionable authenticity.

— The Intercept

The authenticity of the new WikiLeaks docs has been confirmed by Hillary Clinton herself. Anyone still casting doubt is just spreading disinformation.

— Michael Tracey, journalist for VICE

Concocting Putin-Trump-WikiLeaks collusion conspiracy theories and making large leaps in logic without any direct evidence, like Clinton-aligned journalist Kurt Eichenwald recklessly has, does a disservice to actual journalism.

— The Guardian

Given her smarts and shady actions, do you really believe she has your best interests in mind?

Grover

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