Daily Digest

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Daily Digest 4/12 - Pensions Problems Multiply, Venezuelan Debts Coming Due Amid Crisis

Wednesday, April 12, 2017, 10:34 AM

Economy

Mayor Rawlings' proposals would threaten pension fund and public safety (Dallas)

Under HB 3158, contributions from pension fund members would increase by 91 percent on average, or $1.2 billion over 30 years. The members' benefits would also be cut by $1.4 billion, making the total proposed burden on first responders approximately $2.6 billion. In addition, the mayor wants to claw back $700 million of previously earned benefits from police and firefighter retirees.

Property Tax Bills May Spike Due To School Pension Underfunding (Michigan)

The Hartland districts’ annual payments to the state-run retirement system have risen from $2.76 million in 2011 to $7.23 million in 2016. That increase represents $4.47 million per year that is no longer available to pay for textbooks, teacher raises or perhaps local property tax reductions instead of increases.

California Cities' Pension Tab Seen Almost Doubling in 5 Years

The increase reflects Calpers’ decision in December to roll back the expected rate of return on its investments. That means the system’s 3,000 cities, counties, school districts and other public agencies will have to put more taxpayer money into the fund because they can’t count as heavily on anticipated investment income to cover future benefit checks.

As $18 million deficit looms over budget, Syracuse mayor says cities need more funding

But it comes at price. The budget dips $18.5 million into the city's rainy day fund balance, which would leave only $27 million left. Miner said she believes it will be the most taken from the fund balance during her administration. She attributed that to things like higher pension and healthcare costs.

Asian Nations Swimming in Debt at Risk From Fed Rate Hikes

Twenty years after the Asian financial crisis and a decade since the global credit crunch, the region is swimming in debt. The debt binge is spread across companies, banks, governments and households and is inflating bubbles in everything from the price of steel rebar in Shanghai to property prices in Sydney. As the Federal Reserve raises borrowing costs, that means debt is again a concern.

Consumer debt growth can't outpace wages forever: James Saft

U.S. consumers have run up over $1 trillion on credit cards, hitting a level not seen since January 2009 and up 6.2 percent from a year ago. For comparison, wages are up less than 3 percent and the economy is growing just under 2 percent a year. Borrowers can only take on debt at twice the rate they increase the ability to service it for so long.

Venezuelan debts coming due amid crisis

Venezuela's government and national oil company are expected to make nearly $3 billion in debt payments on Wednesday, literally taking food from the mouths of an increasingly restive public.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/11/17

Provided daily by the Peak Prosperity Gold & Silver Group

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2 Comments

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2533
Mind sniffing Japan as well?

"Captain, we're picking up a massive radiation signature!" - Chief Science Officer somewhere over central Japan

Hope they can figure out how to tune out the background noise.

US Deploys "Nuclear Sniffer" Plane To Japan As North Korea Tensions Come To A Boil (ZeroHedge)

ejhr's picture
ejhr
Status: Member (Offline)
Joined: Jun 28 2014
Posts: 21
pensions

Please everybody, know that the Federal government is able to pay for all pensions without cost to taxpayers or anyone else.The Federal government is Monetary Sovereign. Under the Constitution the government has 100% control of the money supply. So it can never unwillingly go bankrupt in its currency

Since corporations and the individual states have to raise their money by taxes and charges, they can go bankrupt. This problem applies to their pension schemes. They will all go broke since the economy is not well enough off to pay for future pensions, the only solution is for the Fed to take them over. It doesn't cost the Fed anything to write a cheque to keep the pensions afloat.

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