Daily Digest

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Daily Digest 2/8 - U.S. Pensions Slashing Forecasts, ECB to Trump: ‘We Are Not Currency Manipulators’

Wednesday, February 8, 2017, 9:37 AM

Economy

Illinois Faces Further Downgrades If Budget Deal Not Reached

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.

US pension funds are slashing their forecasts...and some don't even think they'll meet those

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."

Investors fear "accident" as Greek debt repayment nears

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.

Officials Shortchange School Pension Fund 7th Year In Row (Michigan)

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.

Pennsylvania Gov. Wolf seeks cuts, revenues to plug $3B budget gap

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.

Italy's Target2 deficit rises to new record high in January

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.

U.K. Faces Austerity as Brexit Weighs on Deficit, IFS Says

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.

Premier Brad Wall says Saskatchewan deficit has climbed to $1.2 billion

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.

Malloy To Unveil Budget As State Tries To Tackle $1.7 Billion Deficit (Connecticut)

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.

Justin Trudeau following his dad's bad fiscal planning (Canada)

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.

Young Americans Would Rather Disclose Their STDs Than Their Debt

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 finmin reiterates pledge against competitive FX devaluation

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.

European Central Bank to Trump: ‘We Are Not Currency Manipulators’

"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.

Moody''s warns growing debt weighs on Mexico''s rating

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.

Draghi Says Euro Is Irreversible as Le Pen Urges French Exit

“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 Reserves Edge Below $3 Trillion as Yuan Pressure Increases

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

Click to read the PM Daily Market Commentary: 2/7/17

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."

7 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4023
Former Fed Staffer Says Central Bank Is Under the Thumb of acade

Former Fed Staffer Says Central Bank Is Under the Thumb of ...

Wall Street Journal-5 hours ago
Danielle DiMartino Booth, an adviser to Richard Fisher when he was Dallas Fed president, says the economists who control most of the central bank's seats of ...

European crisis: The markets are already there, says analyst

CNBC - ‎2 hours ago‎
Concerns over the future of the European Union have increased as several key elections approach and issues surrounding sovereign debt remain. Italian, French and Greek government bond yield spreads over the German bund have reached new highs ...

Fed, BOE Join Pimco's Cold Currency War With Covert Depreciation

Bloomberg-22 hours ago
The Federal Reserve and Bank of England are the latest central banks to step into what Pacific Investment Management Co. says is a new “cold currency war.”.

Why is the eurozone back in crisis over Greece?

Financial Times-7 hours ago
Yields on Greek sovereign debt are sharply up, reflecting concerns about splits between the eurozone and International Monetary Fund over the future of the ...

Bonds Face Worst Loss Since 2013 as India Signals End to Easing

Bloomberg-6 hours ago
By signaling an end to the easing cycle, policy makers may also be calling time on emerging Asia's best-performing sovereign-debt market and may herald ...

Kenya's public debt doubles as government goes into loan frenzy

Daily Nation-18 hours ago
The rebasing of GDP in 2014 gave the Jubilee coalition headroom to increase sovereign borrowing in a bid to cut reliance on the local debt market where the ...

Britons face smaller pay rises, buttressing central bank's slowdown forecast

Reuters UK - ‎2 hours ago‎
LONDON British employers plan to offer the least generous pay deals since 2012 this year, the Bank of England said on Wednesday, underscoring its view that the economy is set to suffer from the effects of the Brexit vote. The economy surprised ...

Bank of England sees inflation spreading beyond food and fuel

BBC News - ‎2 hours ago‎
The report from the central bank makes use of data gathered from its business contacts between late November 2016 and mid-January 2017. The Bank has 12 Agents based around the UK who gather economic and financial conditions affecting businesses in ...

Le Pen Aide Briefed French Central Banker on Plan to Print Money

Bloomberg - ‎35 minutes ago‎
Presidential candidate Marine Le Pen's chief economic adviser Bernard Monot met with Bank of France Governor Francois Villeroy de Galhau in September and set out her party's plans to take control of the central bank and use it to finance government ...

Germany Abandons Push for G-20 Monetary Policy Restraint

Bloomberg-2 hours ago
German officials wanted the G-20 to sign up to a paper on the need to enhance the world's economic resilience, which would encourage central banks to build ...

Easing Creeps In as Poland's Real Rates Set to Turn Negative

Bloomberg-7 hours ago
Now that a surge in price growth probably sent inflation above the 1.5 percent lower end of the central bank's target range last month, its stance is becoming ...

Cracks Are Appearing in Australia's Trillion-Dollar Debt Pile

Bloomberg-21 hours ago
The Reserve Bank of Australia frequently seeks feedback on the health of the economy. It might want to call the debt counselors soon. Homeowners, consumers ...

Russia's public debt amounts to 11 trillion: Time to panic?

Pravda-21 hours ago
Russia's public debt amounted to 11.1 trillion rubles or 13.2% of GDP as of 2016. The Finance Ministry expects that the national debt will reach 14.7% of GDP by ...

Facing $3B deficit, governor proposes shale tax

Williamsport Sun-Gazette - ‎11 hours ago‎
He called his proposal a “responsible solution to our deficit challenge and a different approach from the way things have been done in Harrisburg for almost a generation.” All told, Wolf's $32.3 billion spending plan for the fiscal year that starts ...

Michigan School Pension Costs Almost Quadrupled

Michigan Capitol Confidential-3 hours ago
The amount of money the state of Michigan pays out to public school employees in pension payments has almost quadrupled over the past 20 years. That's in ...

 

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1688
Video of Homs, Syria

A couple of these before shots are from Aleppo and Damascus, as well as Homs.

---------------------

Contrast this with the 2 minute drone video of modern Homs. (Thanks T2H)

 

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5468
As luck would have it...

The woman who is the subject of this article, Danielle DiMartino Booth, is on the schedule as my podcast guest this week:

Former Fed Staffer Says Central Bank Is Under the Thumb of ...

Wall Street Journal-5 hours ago
Danielle DiMartino Booth, an adviser to Richard Fisher when he was Dallas Fed president, says the economists who control most of the central bank's seats of ...
I'm very much looking forward to gathering her insider views...providing they completely confirm my pre-existing biases, of course.  :O)
 
Just kidding...I'm kidding, of course!  
 
Sort of...
 
:)
 
TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 352
Biases

Chris wrote: "providing they completely confirm my pre-existing biases, of course. "

There are good biases and bad biases. To bias on the side of caution and uncertainty is better than to dismiss risks. I have more trust in your bias, than the Fed's!

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2728
Scratch that

.

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1482
Interview of Matt Drudge

Drudge has some interesting observations of how media is trying to corral people and their thinking as part of TPTB's plans global domination.   The interview is about 1.5 years old, but things continue to develop in the ways he discussed.

Uncletommy's picture
Uncletommy
Status: Gold Member (Offline)
Joined: May 3 2014
Posts: 433
Start small and work your way up.

Follow these easy simple steps to a world of new beginnings:

https://www.facebook.com/help/214376678584711?helpref=faq_content

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