Daily Digest

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Daily Digest 6/12 - Bond Market Doomsayers Sound Alarm, UK Feels Pinch As Brexit Looms

Monday, June 12, 2017, 11:02 AM

Economy

Bond Market Doomsayers Sound Alarm as Margin of Safety Vanishes (jdargis)

Chadha, the chief global strategist at Deutsche Bank’s U.S. securities unit, is part of a group of die-hard bond bears who say Treasuries have become unhinged from reality and yields have nowhere to go but up. Like many before him, he points to all the obvious signs investors seem to be ignoring: higher benchmark interest rates, wage pressures that will lead to faster inflation, worsening budget deficits that will result in more debt issuance.

Preparing for ‘Brexit,’ Britons Face Economic Pinch at Home (jdargis)

In a tumultuous period of political uncertainty, Britain’s economy is markedly slowing and consumers are grappling with rising prices.

Britain's PM May to face her party's anger amid post-election tumult (jdargis)

She mocked Labour leader Jeremy Corbyn, a socialist, as incompetent and unrealistic, but his electoral campaign energised the youth vote and wiped out the Conservatives' majority in parliament.

May plans a clean break from the EU, involving withdrawal from Europe's single market and customs union and limits on immigration from the EU.

This Tech Trend Is Inescapable (Tiffany D.)

That’s not only in the physical sense, with the continuing construction of new roadways across the world that are cutting travel times by half in remote regions.

No, the big unifier — the key equalizer — of our age is the Internet. More specifically, it’s the Internet of Things, the moniker for the network of smart machines that are able to “talk” to one another.

Automakers Prioritize Climate Despite Trump’s Decision (Michael K.)

Automakers are taking China’s electric vehicle market very seriously, with companies such as Tesla, Volkswagen, BMW, Daimler, GM, and Ford preparing to launch several new EVs there. That’s typically done with Chinese joint venture partners.

There are more than 2 million electric vehicles on the road around the world (jdargis)

The report showed that China leapfrogged the US in 2016 to become the country with the most electric passenger vehicles. Although EVs only made up 1.5 percent of the country's national fleet, more than 40 percent of the EVs sold in the world in 2016 were sold in China (twice as many as were sold in the US). The country also has 200 million electric two-wheelers, 3 million to 4 million low-speed electric vehicles, and more than 300,000 electric buses, none of which were counted in the IEA’s official EV numbers.

For Climate Cause, Trump’s Withdrawal from Paris Accord Just One Hurdle Among Many (jdargis)

China, while curbing domestic construction of coal-powered plants, has become a leading lender financing the construction of new coal-burning power plants in developing countries, according to a 2016 study by researchers at Boston University and the Institute for World Economics and Politics at the Chinese Academy of Social Science.

New threats to public lands endanger America's unique wildlife corridors (jdargis)

This Red Desert to Hoback migration is the longest in the contiguous US and, despite occurring for thousands of years, was only fully discovered by researchers in 2011. Its epic length is rivaled only by the “path of the pronghorn”, a journey that takes America’s fastest land mammal on a biannual trudge to and from Grand Teton national park in search of water.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/9/17

Provided daily by the Peak Prosperity Gold & Silver Group

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2 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3941
Illinois is 'America's failed state,' and other Chicago news

 

As troubled Dallas pension fund gets help, issues loom in other states

Austin American-Statesman-17 hours ago
Greg Abbott recently signed two bills aimed at fixing troubled pensions in Dallas and Houston. Both are projected to have billions of dollars in unfunded liabilities ...

Rising costs eat into Ohio's public-employee pension systems

The Columbus Dispatch-17 hours ago
“Ohio's four largest public pension plans are severely underfunded based on traditional metrics of pension solvency, and they are only guaranteed to be able to ...

Debt fears over new car deals that only need a £300 deposit ...

Daily Mail-16 hours ago
Fears of a dangerous debt bubble are growing as motorists drive off in new cars after paying a deposit of just £319. Britons spent £3.6billion on car loan deals in ...

Americans Paying Billions in Credit Card Debt

550 KTSA - ‎3 hours ago‎
Americans paid back more than 31 billion in credit card debt in the first 3 months of the year but the amount of new debt makes that amount seem minuscule. Sure, that 31 billion is a big improvement over the amount of credit card debt that was paid ...

Puerto Rico Finds Going Bust Isn't Cheap as Consultant Fees Rise

Bloomberg-4 hours ago
The power company's deal struck this year, which amended an earlier one, promises to cut its debt-service costs by about $2.2 billion from 2018 to 2022 if it's ...

Increase Rate of Korean Household Debt-to GDP Ratio Ranks Third ...

BusinessKorea-13 hours ago
South Korea's household debt-to-GDP ratio amounted to 92.8% at the end of last ... only US$141.4 billion less than its nominal GDP for 2016 estimated by the ...

S. Korea unlikely to achieve 3-pct growth this year

Yonhap News-14 hours ago
... to analysts and foreign brokerages on Monday, as mounting household debt ... The government unveiled a US$10 billion extra budget last week to create jobs ...

Politico: Illinois is 'America's failed state,' and other Chicago news

Chicago Reader - ‎1 hour ago‎
The state has $14.6 billion worth of unpaid bills, a $6 billion deficit, a $130 billion pension liability and a bond rating near junk. Politico explains how the crisis started as "ego-laden brawl" between Rauner and Democratic house speaker Michael ...
ejhr's picture
ejhr
Status: Bronze Member (Offline)
Joined: Jun 28 2014
Posts: 33
Illinois

Illinois can ONLY become a failed state if it is decided so by politicians. Economics might show bad figures but they can be rectified quite simply.  The Federal Government steps in and buys the outstanding debt.

It bailed out the GFC banks, to the tune, over 2 years, of $28Trillion, [yes $Trillion!]  No one is paying back a dime of that $28 Trillion.  I

t can be repeated for Illinois, Puerto Rico and any other state in financial trouble.

Rest assured, it is the answer for all non sovereign entities. As collapse gathers speed, the calls will go out and the government will have to act, everywhere.

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