Daily Digest

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Daily Digest 1/4 - CalPERS Makes Debt Difficult To See, Silver Prices And The Russian Connection

Wednesday, January 4, 2017, 9:31 AM

Economy

This city had the biggest increase in house prices in 2016

The total value of the U.S. housing stock grew to a $29.6 trillion in 2016, an increase of nearly 6% and $1.6 trillion over the previous year and a new record, according to an analysis by real-estate website Zillow. Portland, Ore. had the biggest increase in value among the largest housing markets, growing more than 13% in 2016, while Los Angeles is the most valuable metro, worth a cumulative $2.5 trillion.

“Alarm bells” raised: PERA stability again under scrutiny (Colorado)

As of its most recent financial reports at the end of 2015, the Colorado Public Employees’ Retirement Association has dropped to 62.1 percent funded with a $26.8 billion unfunded liability — nearly seven percentage points less than the 68.9 percent funding ratio it sported before lawmakers enacted reforms in 2010.

CalPERS makes debt, cost difficult to see

For many employers, the current CalPERS rate for the unfunded liability is higher than the rate for the normal cost. The need to pay down the unfunded liability, which grew to $139 billion this year, is the reason for the new round of CalPERS rate increases.

Illinois ends 2016 with $11 billion in unpaid bills

Illinois state government has left the people of the Prairie State quite the stocking stuffer this holiday season: an $11 billion bill backlog that is expected to hit $14 billion by summer 2017. However, with money from a June stopgap funding agreement set to run out by the new year, nonprofit service providers and students receiving state grants may view it more as a lump of coal.

Biggest Economies Face $7.7 Trillion Bond Tab as Bull Run Fades

Governments of the world’s leading economies have about $7.7 trillion of debt maturing in 2017, with most facing higher borrowing costs as a three-decade bull market for bonds shows signs of running out of steam.

The Feds Are Inside Your Home (Tiffany D.)

Naturally, Alexa has become part of the current zeitgeist. For example, a recent episode of the brilliant hacker series Mr. Robot has a world-weary FBI agent asking Alexa philosophical bedtime questions and predictions. Alexa can only respond that “I’m working on that one, ask me a little later.”

Silver Prices And The Russian Connection (GE Christenson)

Silver prices reached a generational high in 2011 and will collapse even further in coming years. Why? Supposedly the crushing deflation will rule the world for several years and prices for stocks, bonds, real estate, gold and silver will crash to unbelievable lows. We have heard this before. Some prices will probably crash, but silver and gold should rise because they are real money and independent of (surging) counter-party risk.

Old lady denied exchanging life savings in old banknotes for new issue; could not prove innocence of money; dies (Aaron M.)

Of course, the rules weren’t in place when Mrs. Hülst started her life savings, so how could she possibly know she would have needed receipts from the time in question, twenty or forty or fifty years down the road? That was absolutely inconceivable at the time, that the government would not honor its own cash. (Something that, for one reason or other, has always been inconceivable — despite ample data points to the contrary.)

Gold & Silver

Click to read the PM Daily Market Commentary: 1/3/17

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
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
FTSE 350 pension deficits widen threefold in 2016

 

Pension Problems: Breaking down state pension liabilities

Marquette Mining Journal-22 hours ago
MARQUETTE — A perfect storm has converged around public pension plans, putting .... This caused pension costs to rise, which hit state and local governments ...

China Said to Consider Options to Back Yuan, Curb Outflows

Bloomberg - ‎4 hours ago‎
China may also further sell U.S. Treasuries in 2017 if needed to keep the yuan's exchange rate stable, the people said, adding that the size of the reduction will depend on capital outflows and market intervention. The nation's holdings of Treasuries ...

US national debt soars by $100 billion. . . in just 8 hours

ValueWalk-1 hour ago
But what's even more astounding is that, according to the Treasury Department's own figures, they STARTED the day with a debt level of 'just' $19.879 trillion.

UK's Burgeoning Consumer Debt Raises Concerns Over Growth ...

Wall Street Journal-1 hour ago
LONDON—British households are increasingly turning to debt, keeping the ... U.K. consumer credit grew by £1.9 billion ($2.3 billion) in November, Bank of ...

FTSE 350 pension deficits widen threefold in 2016 - Mercer

Reuters UK-5 hours ago
The accounting deficit of the schemes rose to 137 billion pounds at the end of December, 2016 from 39 billion pounds a year earlier, Mercer said in a statement.

Tax Debts to Greek State Soar at €94 Bln

Greek Reporter-21 hours ago
One in two Greek taxpayers owes money to the debt-ridden state, totaling 94 billion euros, says the Finance Ministry's General Secretariat for Public Revenue.
 
 

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 4066
Total global debt tops 325 pct of GDP as government debt jumps

Total global debt tops 325 pct of GDP as government debt jumps: IIF

Reuters-4 hours ago
The IIF's report found that global debt had risen more than $11 trillion in the first nine months of 2016 to more than $217 trillion. The report also found that ...

Global debt surges in 2016, faces rising interest: IIF

Total US debt rose $2.5 trillion to over $70 trillion in the third quarter, which is more than 335 percent of GDP. Government and consumer debt in the country hit record highs.

Time2help's picture
Time2help
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Posts: 2769
Kyle Bass: "Beginning of a tectonic shift"

Kyle Bass: 'Global markets are at the beginning of a tectonic shift' (Yahoo Finance)

Quote:

Texan hedge fund manager J. Kyle Bass, the founder of Hayman Capital, says that global markets are at the “beginning of a tectonic shift.”

“Today, global markets are at the beginning of a tectonic shift from deflationary expectations to reflationary expectations. What happens to economies at maximum leverage when interest rates begin to rise? Reconciling the potent strengths of the world’s largest economies with their inherent weaknesses has revealed various investable anomalies. The enormity of the apparent disequilibrium is breathtaking, making today a tremendous time to invest,” Bass wrote in a year-end letter to investors seen by Yahoo Finance.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
”making today a tremendous

”making today a tremendous time to invest,"
In what? Love?
People say the most extraordinary things.

Boomer41's picture
Boomer41
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Posts: 132
Old Lady Denied Life Savings

This story illustrates perfectly the utterly heartless nature of bureaucrats, bankers and government generally. We have allowed ourselves to fall into the clutches of unthinking, unemotional automatons who have no common sense and rely for their every decision on some 'book of rules'.

It is inconceivable to me that a person, with any human feelings whatsoever, could refuse to honor the outdated fiat banknotes of a 90 year old lady. I cannot begin to imagine the total lack of empathy which would allow someone to behave with such callous indifference.

Rules be damned. What happened to common humanity? Is it time for the torches and pitchforks yet?

 

 

 

DennisC's picture
DennisC
Status: Gold Member (Offline)
Joined: Mar 19 2011
Posts: 272
Great Picture for today's DD header

It reminded me of a routine (and slightly adjusted) online comment one frequently sees: "move along, nothing (to see) here".

cmartenson's picture
cmartenson
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Posts: 5570
Re: Old Lady Denied Savings
Boomer41 wrote:

This story illustrates perfectly the utterly heartless nature of bureaucrats, bankers and government generally. We have allowed ourselves to fall into the clutches of unthinking, unemotional automatons who have no common sense and rely for their every decision on some 'book of rules'.

I will disagree.  There's plenty of thought involved.

The thought process goes like this:

"Up here at the central bank we all know perfectly well that 'money' is an idea, not a tangible thing.  It is absolutely vital that the plebes, the little people, the slaves and knaves never catch on to that fact.  To them 'money' must be very real.

So while we routinely and actively "look the other way" when our own major banks get caught laundering massive piles of drug money and other grotesquely obvious criminal behaviors, it is vital that every so often we make a very big show of just how impossible it is to overlook or condone even the most defensible use of money by a little person.

This keeps the illusion alive by injecting it with magic sauce."

I will submit to you that "they" actively look for cases to be utterly pathetically small with thei actions around money simply as a means of reinforcing just how real money is.

See also: clawing back reenlistment bonuses for CA veterans.  Etc.

To the alert, these are beyond maddening cases because we know perfectly well that 'they' just print up piles  of money for themselves whenever needed, but create enormous hardship in little people over the most insignificant of sums.  

Boomer41's picture
Boomer41
Status: Silver Member (Offline)
Joined: Nov 30 2008
Posts: 132
Re: Old Lady Denied Savings

Chris,

I hear you and have no doubt you are correct and that just makes it worse. I was appalled that a petty bureaucrat could look a 90 yr. old lady in the face and refuse to hand over the money she had saved.

But if said bureaucrat is following rules designed in cold blood to deliberately victimize such helpless citizens... that makes my blood boil. Anyone who would write such rules to facilitate their larger goals is sub-human.

Which I guess is the real problem. We are up against a truly evil enemy which will stop at nothing.

Maybe its time to start sharpening those pitchforks.

Cheers

Boomer

 

 

 

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