Daily Digest 2/8 - U.S. Pensions Slashing Forecasts, ECB to Trump: ‘We Are Not Currency Manipulators’
The political discord has also prevented Illinois from coming up with a plan to shore up its retirement system after a previous overhaul was struck down by the state’s Supreme Court. Illinois owes about $130 billion to its workers’ pension plans, which last year had only about 38 percent of what’s needed to cover promised benefits, according to the state’s Commission on Government Forecasting and Accountability.
If they protect their portfolios by moving assets into safer, lower-return investments, he said, "they will have to drastically increase the cost for local governments. They are reluctant to do that."
The cost of insuring against a Greek default has also spiked. Those contracts imply nearly a 50 percent probability of default over the next five years.
For the seventh year in a row, state officials did not make at least the minimum payment that the state’s own accountants say is needed to start filling a massive $26.7 billion hole in the school pension fund.
Gov. Tom Wolf asked lawmakers Tuesday to help fill a $3 billion projected deficit by imposing a tax on Marcellus Shale natural gas production and signing off on potentially touchy cuts in spending, including transportation aid to schools.
The Bank of Italy's liabilities towards other euro zone central banks rose to 364.7 billion euros ($388.7 billion) in January, marking a new record high, according to data published by the central bank on Tuesday.
Erasing the deficit no later than 2024-25, years beyond the goal set by Hammond’s predecessor George Osborne, will still require spending cuts and tax increases of as much as 34 billion pounds ($42 billion), the research group said in its annual Green Budget, published in London Tuesday.
Wall said a scenario being considered to help balance the budget this year includes some tax increases, cuts of 4,900 jobs in health care, layoffs in education and reduced support for vulnerable people.
At the same time, Malloy has proposed that cities and towns pay more than $400 million per year as a one-third share of the $1.2 billion that the state now pays each year for local teachers' pensions. The towns currently pay nothing for the pensions.
But following the election, when the Liberals presented their first budget in March, 2016, Trudeau almost tripled his projected 2016-17 deficit to $29.4 billion, followed by $29 billion in 2017-18, $22.8 billion in 2018-19, $17.7 billion in 2019-20 and $14.3 billion in 2020-21.
So OK, both STDs and debt are American epidemics. The Centers for Disease Control and Prevention announced late last year that STDs were at an "unprecedented high" in 2015. So is student loan debt, SoFi's bread and butter. Total student loan debt stood at $1.4 trillion as of September, double the amount in 2009. It makes sense that a potential partner's debt would play a bigger part in relationships today.
Japan will stick to a G7/G20 agreement against competitive currency devaluation and continue to use monetary policy to achieve its inflation goal, without targeting currencies, Finance Minister Taro Aso said on Tuesday.
"First and foremost: we are not currency manipulators." Draghi said. "Second, our monetary policies reflect the diverse state of the (economic) cycle of the euro zone and the United States." "The single market would not survive with continuous competitive devaluations," Draghi said.
The report cited data from the country's Ministry of Finance, showing the federal government deficit increasing to 2.9 percent of GDP in 2016, up from 2.8 percent in 2015.
“L’euro e’ irrevocabile, the euro is irrevocable,” the European Central Bank president said at the European Parliament on Monday, using both his native Italian and English. “Questo e’ il trattato, this is the treaty.”
China’s foreign-currency reserves edged just below $3 trillion in January, falling to the lowest since early 2011 after the yuan capped its steepest annual decline in two decades.
Gold & Silver
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