Daily Digest

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Daily Digest 4/26 - Teachers Sue For Pensions, Greek Food Prices On The Rise

Wednesday, April 26, 2017, 9:25 AM

Economy

Teachers Continue Lawsuit Against State For Underfunded Pensions (Kentucky)

According to a recent Pew Charitable Trusts study, in 2015 KTRS had about 51 percent of the money it needed to write checks to retirees in the future. The fund for most state workers — Kentucky Retirement Systems non-hazardous — only had 23 percent.

New warning: Schools face ‘mini-recession’ tied to pension costs (California)

Susan Henry, president of the California School Boards Association, said the situation is not far different in Southern California, where she serves as an elected trustee in Orange County. “What we’ve been talking about is a perfect storm” for districts as pension contributions ratchet higher through 2024, she said.

Weak cooperatives and high input costs hike Greek food prices

At the beginning of the crisis in 2008, 11.2% of Greeks reported shortages in basic goods but, seven years later, this figure rose to 22.2%. According to the latest Eurostat data, Greece is the third poorest member of the EU followed by Bulgaria (34.2%) and Romania (22.7%).


Italy hikes taxes to rein in 2017 budget deficit

The Treasury’s new economic forecasts, approved with the mini-budget of April 11, see the public debt, which hit a record high of 132.6 percent of GDP in 2016, virtually stable this year at 132.5 percent before easing to 131.0 percent in 2018.

China's Hidden Debt Stirs Investor Angst as Defaults Rise

“If companies in the same region offer a huge amount of guarantees for each other’s debt, it would form a guarantee web and deepen interconnections among the companies,” said Gang Meng, director of rating at Golden Credit Rating International Co. in Beijing. “If one company has to repay debt for its guaranteed company, risks would quickly ripple to other companies in the web, which will result in a butterfly effect.”

Poorest Households Pay More In Taxes Than The Richest 10%, New Figures Reveal (UK)

The latest release from the Office for National Statistics shows the poorest 10% of households fork out 42% of their income in taxes – including VAT and council tax.
Conversely, the richest 10% pay 34.3% - according to analysis by the Equality Trust.

2 graphics show why Illinois’ social services and taxpayers are getting stiffed

No money left for social services and tax relief. Illinois’ unfunded debts come with substantial interest costs. Illinois social services are being drowned out by debt service. Between the mountains of debt and the interest cost on the debts, there’s no money left for social services or tax relief.

Central Banks Ponder What to Do With All Their Assets

The Federal Reserve’s balance sheet has roughly quintupled to $4.5 trillion, or around a quarter of U.S. gross domestic product, from about 7% before the crisis. The Bank of England’s balance sheet has undergone a similar expansion. The value of assets held by the European Central Bank has more than doubled to around 36% of GDP. For the Bank of Japan, the balance sheet and the size of the nation’s economy are roughly equal.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/25/17

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."

1 Comment

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
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40% of Americans spend half of their income servicing debt

Japan's central bank keeps monetary policy unchanged, lowers inflation forecast

Xinhua - ‎6 hours ago‎
But the bank will not automatically raise its yield target just because this happens, the BOJ chief has stated. The bank plans to keep intact its negative interest rate at minus 0.1 percent, as part of its massive stimulus program and ultra-loose ...

ECB holds rate steady ahead of French election

CNBC - ‎53 minutes ago‎
The European Central Bank (ECB) held its benchmark interest rate at zero percent on Thursday and left monetary policy unchanged as inflation appeared to show limited signs of recovery. Investors will be eagerly anticipating any change in tone from ECB ...

Millennials at risk for loan defaults in next 12 months: UBS

Reuters-18 hours ago
Millennials, people who are 21 to 34 years old, hold $1.1 trillion of $3.6 trillion in U.S. consumer debt outstanding. They account for 45 percent student loans ...

Record-level student debt contributing to Canada's debt crisis: report

The Southern Gazette-19 hours ago
Massive student debt is having major negative repercussions on Canada's economy, ... income and exceeded the size of the Canadian economy at $1.6 trillion.

EU Eyes Taxpayer Cash to Help Struggling Banks Offload Bad Loans

Bloomberg-21 hours ago
European Union banks awash in bad debt may be allowed to tap public funds to ... to tackle a 1.1 trillion-euro ($1.2 trillion) soured-loan mountain they blame for ...

40% of Americans spend half of their income servicing debt

MarketWatch-4 minutes ago
Some 40% of Americans with debt are spending up to half of their monthly ... are $367 billion higher since then and student loans are $671 billion higher, the ...

PERS rate change could bring more pension pain

OregonLive.com-12 hours ago
PERS' $71 billion investment portfolio is set up to deliver that rate of return ... The required increase in employers' contributions to dig out of the deficit is limited ...

Mayor: up to 2200 Layoffs if Houston Pension Reforms Denied

U.S. News & World Report-19 hours ago
Turner attributes the $95 million deficit to the continued growth of the city's pension ... An audit late last year put pension underfunding in Houston at $7.7 billion, ...

City of Auburn pension concerns loom as retiree unfunded liabilities ...

Auburn Journal-22 hours ago
The City of Auburn's $13 million in unfunded pension debts reared its ugly head ... as a result of lower fuel prices, the city will end the year in a $114,000 deficit.

UK should axe state pension for rich people, says OECD

The Guardian-6 hours ago
The OECD said the UK should consider whether the state pension should be paid ... the UK faced the rising costs of an ageing population, with more pensioners ...

 

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