Daily Digest

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Daily Digest 3/8 - Italy's Liabilities Hit New Record High, WI School Districts' Debt Soars

Wednesday, March 8, 2017, 9:59 AM

Economy

Wisconsin school districts' debt soars after $1.35 billion in new borrowing

In per-pupil terms, the report says, borrowing has more than tripled from $2,313 in 2010 to $9,733 last year. And it shows no signs of abating. This spring, 23 districts have asked or will ask voters to approve nearly $708 million in new debt.

State, Local Officials Push $6 Billion Infrastructure Bill (California)

A state Senate bill that promises to fix California's battered roads and bridges with $6 billion a year from gas tax and vehicle registration fee increases is set to go before the Governance and Finance Committee on Wednesday.

Trouble Brewing in High-Yield Debt, Commodity Investor Warns

The market for high-yield mining and energy debt is suffering from the some of the same issues that sparked the 2008 crisis as investors turn a blind eye to poor credit in their desperation for fatter returns, according to an executive with one of Canada’s largest hedge funds.

Interest on Illinois’ pension debt is $9.1B per year

Illinois has about $78 billion in assets on hand to pay for pensions. But the present value of the state’s accrued liability is $208 billion. That leaves a difference of $130 billion, which is money the state owes – but doesn’t have.

China’s finance minister sees ‘relatively large’ room to increase govt debt

Xiao’s comments came as the immediate risk of defaults in local government debt, once regarded as a potential source of a financial crisis in the country, have been reined in after Beijing has so far swapped over 8 trillion yuan (US$1.1 trillion) of local government debt with low-interest, long-term bonds.

National debt nears $20 trillion; Kasich has long warned of troubles

• It's almost $159,000 for each of the 125.8 million U.S. households.
• It's as if each child immediately inherits a $62,000 mortgage at birth from Uncle Sam, without the house.
• If you lined up 20 trillion dollar bills end to end, they would stretch to the moon and back — 4,056 times.

Italy's Target 2 liabilities hit new record high in February

The Bank of Italy has said the widening seen last year was driven instead by Italians diversifying, moving away from government bonds and putting a larger share of their savings into foreign assets, as well as by the bond purchases carried out by the European Central Bank as an extraordinary monetary policy measure.

IMF raises jitters over NZ's high debt levels, recommends cenbank toolkit upgrade

New Zealand household debt was over NZ$260 billion ($182.21 billion) in 2016, at a record high of 168 percent of household income, according to central bank statistics. Almost 90 percent of that is caught up in property loans.

Reserve Bank of Australia holds rates at record low, signals steady view

TheReserve Bank of Australiaheld rates at a record low 1.50 percent as expected on Tuesday and signaled economic conditions were in line with its inflation and growth targets.

Brazil's worst-ever recession unexpectedly deepens in late 2016

Brazil's gross domestic product contracted by 3.6 percent in 2016, statistics agency IBGE said, following a 3.8 percent drop in 2015. The nation's two-year downturn is the longest and deepest on record for Latin America's biggest country.

Rising European Bank Deposits Wind Up at ECB as Lending Sputters

Banks in the euro zone, flush with new deposits, have turned few of them into loans to companies and consumers. Instead they’ve parked most of the money at the European Central Bank, where they’re paying billions of euros for the privilege of keeping it there.

Global negative-yielding sovereign debt fell to $8.6 trln - Fitch

This compared with $9.1 trillion of negative-yielding sovereign debt on Dec. 29, 2016. The amount of negative-yielding European and Japanese government debt peaked at about $11.7 trillion last June, according to the rating agency.

ECB buying of Portuguese debt hit new low as limit looms

Euro zone central banks are buying 80 billion euros ($85 billion) worth of mostly sovereign debt every month, pumping money into the economy to revive euro zone inflation.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/7/17

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."

6 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3917
CalPERS set to slash pensions for nearly 200 workers

Report shows Illinois now $126.7 billion in debt

OurQuadCities-18 hours ago

Among the findings, Illinois is now nearly $127 billion in debt. That's almost $6 billion further in the red than the year before. Illinois' pension shortfall makes up ..

 

Illinois' deficit grows to $9.6 billion in fiscal 2016 -audit

Reuters-21 hours ago
The fiscal 2016 gap surpassed a $9.1 billion deficit reached in fiscal 2012. Illinois, the only state to lack a complete budget for two consecutive fiscal years, ...

School districts use federal funds to offset state pension costs

Peoria Journal Star-1 hour ago
PEORIA HEIGHTS — Jenny Darrow prepares the second-graders in her small reading group for a set of new words. “Trick words, or sight words,” she says as ...

CalPERS set to slash pensions for nearly 200 workers

Sacramento Bee-15 hours ago
... mayor is concerned about swelling pension charges. San Luis Obispo also this month reported a projected deficit that its leaders attributed partly to pensions.

Why California cities and counties should act scared by pension ...

Sacramento Bee-16 hours ago
There's a very good reason: Higher pension costs are on the way because CalPERS lowered its expected investment returns. Sacramento's additional payments ...

West Columbia has $16.7 million unfunded liability because of State ...

ColaDaily.com-5 hours ago
CPA Bill Hancock informed West Columbia City Council that the unfunded liability ... He also said that because projections for pension fund investments are not ...

Pension fix could hit SC taxpayers, cut services

Greenville News - ‎16 hours ago‎
Many Upstate residents and businesses could see a triple-whammy of tax increases to help cities, counties and school districts shore up the troubled state pension system that provides retirement income to their former employees, according to experts ...

In Puerto Rico, Teachers' Pension Fund Works Like a Ponzi Scheme

New York Times-5 hours ago
The teachers' pension fund in Puerto Rico looks very much like a legalized Ponzi ... New Jersey and Pennsylvania: As teachers' pension costs keep rising, ...

 

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1514
Jim Quinn notices "recessionistic" numbers.....

https://www.theburningplatform.com/2017/03/07/what-the-hell-is-going-on/

Jim Quinn at The Burning Platform starts with expressions of fury and frustration at the lies coming out of the MSM and the willingness of the public to accept them without critical thought.  He offers quite a few quotes on these topics that will be familiar to the PP.com crowd.   (ht Time2Help)

About 1/3 of the way down the page he goes into the details indicating economic downturn.

1.  The numbers of cars on the road in his daily commute into Philly are much less.

2.   Gasoline sales have dropped in the last months.

3.   Yet vehicle sales are up (using 5 and 6 year 0% loan enticements)

4.   Unemployment numbers look good, yet the labor market participation rate is low.

5.   Commercial real estate (esp. shopping malls) are in distress.

Despite government reports about expanding retail sales and strong holiday sales, real info from real retailers tells the true story. Major retailers have announced 1,500 store closings in the first two months of 2017, including:

  • JC Penney – 140 stores
  • Sears – 150 stores
  • Macy’s – 68 stores
  • HHGregg – 88 stores
  • The Limited – 250 stores
  • Abercrombie & Fitch – 60 stores
  • Wet Seal – 171 stores
  • CVS – 70 stores

Kohl’s, Target, Macy’s, Sears, and dozens of other retailers reported awful holiday sales. Wal-Mart was lauded for generating a 1% comparable store sales increase. There is virtually no store expansion by large retail chains.

6.   Restaurants are struggling

7.  Real income is flat

9.  Personal monthly spending is down.

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 444
does Medicaid lead to drug abuse?
you all may want to take a close look at this:
 
 
http://politicalcalculations.blogspot.com/2017/03/is-medicaid-contributing-to-americas.html
 
 
ironman seems to be showing that the states that expanded their state's Medicaid programs have almost twice the drug overdose death rate of those that didn't...he's got very detailed stats...
Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2605
Better update your privacy settings

VeganDB12's picture
VeganDB12
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 711
maybe...

you know the old adage "correlation is not causation"

does downward drift, mental illness, (unemployment?), and drug use lead to medicaid enrollment where medicaid is more available?

Not sure of direction of causality. Still a valid query.

MarkM's picture
MarkM
Status: Platinum Member (Offline)
Joined: Jul 22 2008
Posts: 836
VeganDB12 wrote: you know the
VeganDB12 wrote:

you know the old adage "correlation is not causation"

does downward drift, mental illness, (unemployment?), and drug use lead to medicaid enrollment where medicaid is more available?

Not sure of direction of causality. Still a valid query.

Good question. However, you still have to find a doc willing to write the script. Maybe we should be looking there?

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