Daily Digest

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Daily Digest 6/28 - LA Has a Pension Contribution Crisis, Bubble Forming On Wall Street

Wednesday, June 28, 2017, 8:55 AM

Economy

State pension means testing will be necessary, says report (UK)

The ageing population is putting pressure on this system. The growing number of retired people relative to those in work supporting state pension payments through their taxes has also led the government to consider speeding up the current timetable of pension age rises.

LA Has a Pension Contribution Crisis, Continued ‘Managerial Ignorance’ Won’t Fix It

The largest pension plan in the country, CalPERS (California Public Employees Retirement System) expects to earn 6.2% over the next ten years and intends to lower its investment rate assumption to 6½% over time.
If the City were to earn 6.2%, its unfunded pension liability would soar to an estimated $20 billion, double the $9.6 billion (77% funded) as of June 30, 2016.

Talks over boosting Illinois Medicaid payments fail

A U.S. judge should order Illinois to pay Medicaid providers about $1 billion a month to ensure medical care continues for the three million recipients of the health program after talks with the state reached an impasse, according to a court filing on Monday.
The move would cause a huge problem for the cash-strapped state, which has accumulated a $15 billion bill backlog due to a budget stalemate between its Republican governor and Democrats who control the legislature. It could force Illinois to stop making full payments on other state-mandated or court-ordered spending such as pensions and payroll.

$70,000 a day in interest — the cost of another short-term CPS budget solution (Chicago)

Two expensive loans that Chicago Public Schools secured over the last week will cost roughly $70,000 a day in interest for the cash-strapped district under the terms of the deals.

California lawmakers advance pension borrowing plan

CalPERS' $325 billion investment fund, the largest public-employee pension fund in the country, has enough money to cover only about two-thirds of the benefits promised to retired public employees. The CalPERS board has steadily increased mandatory contribution rates for the state, cities, counties and school districts to make up for the shortfall. The state's share of the unfunded liability is estimated to be $59 billion, with its minimum payment forecast to increase from $5.8 billion this year to $11.2 billion in 2031.

China’s Pension Gap Is Growing as Aging Becomes Economic Risk

It's an increasingly urgent question, as nearly a third of the inhabitants of the world's most populous country will be over 60 years old by 2050, according to United Nations data. By 2015, the pension of each retired resident was borne by the contributions of fewer than three wage-earners, government estimates show.

BOJ Keeps Snapping Up Bonds as Foreigners Grab T-Bills

The central bank owned 39.5 percent of Japan’s bonds and treasury bills, up from 13.1 percent when Haruhiko Kuroda took over as governor in March 2013, according to its quarterly Flow of Funds statistics released Tuesday.

Europe's Banking Union Fails Its Latest Test

Intesa Sanpaolo, a rival, bought the banks' good assets for one euro, and was promised another 4.8 billion euros in state aid to deal with restructuring costs and bolster its capital ratio. Italy's taxpayers get to keep the bad loans, which could end up costing them another 12 billion euros (though the government believes it will be much less).

Sure looks like a bubble forming on Wall Street

Investors are valuing stocks these days at levels -- measured by the S&P 500's price-earnings ratio -- that were higher only during the 1929 and 2000 market bubbles. But is today's market also in a bubble?

Gold & Silver

Click to read the PM Daily Market Commentary: 6/27/17

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."

5 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
borrowing spree lifts global debt to record $217 trillion -IIF

China's debt surpasses 300 percent of GDP, IIF says, raising doubts ...

CNBC-1 hour ago
Data from the Institute of International Finance showed that global debt reached $217 trillion in the first quarter of this year, or 327 percent of gross domestic ...

Emerging market borrowing spree lifts global debt to record $217 ...
Reuters-5 hours ago

"Global debt levels have surged to a record $217 trillion, driven by a $3 trillion borrowing spree in the developing world, the Institute of International Finance said, warning of risks to emerging markets from short-term debt repayments.

The IIF, one of the most authoritative trackers of capital flows, said in a note late on Tuesday that global debt amounted to 327 percent of the world's annual economic output (GDP) by the first quarter of 2017 and the rise was driven principally by emerging market borrowing."

 

Japan banks slash JGB holdings to record lows

Nikkei Asian Review-18 hours ago
TOKYO -- Japanese banks have sold off domestic government bonds to their lowest holding levels on record, scrambling for near-term profit as negative interest ...

China's huge debt bubble risk to Britain's stability, warns Bank of ...

Express.co.uk-Jun 27, 2017
BRITAIN could be dragged into a financial crisis if China's huge debt bubble collapses, the Bank of England has warned. By Lana Clements. PUBLISHED: 15:47 ...

 

Uncletommy's picture
Uncletommy
Status: Gold Member (Offline)
Joined: May 3 2014
Posts: 476
From whom are you borrowing?

And consider what and where you are investing

http://www.fao.org/news/story/en/item/277488/icode/

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5570
Ruler straight

Here's another example of a rigged market.

Yesterday there was some stock market selling.  That, as we know, is unacceptable to the central banks and their main clients the big banks and HFT outfits.

So last night, at 3 in the morning a decision was made.  "This thing has to go up again!"

The clue is in the ruler straight advance (which requires periodic jams to accomplish).

 

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1517
The Fed is a financial suicide bomber

http://www.alt-market.com/articles/3221-the-federal-reserve-is-a-saboteur-and-the-qexpertsq-are-oblivious

I have written on the subject of the Federal Reserve's deliberate sabotage of the U.S. economy many times in the past. In fact, I even once referred to the Fed as an "economic suicide bomber." I still believe the label fits perfectly, and the Fed's recent actions I think directly confirm my accusations...

 

It is important to understand what the Fed actually is — the Fed is a weapon. It is a weapon used by globalists to destroy the American system at a given point in time in order to clear the way for a new single world economy controlled by a single managerial entity (most likely the IMF or BIS). This is the Fed's purpose. The central bank is not here to save the U.S. from harm, it is here to make sure the U.S. falls in a particular manner — a controlled demolition of our fiscal structure.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Illinois Tells Court It Can't Pay Much More for Medicaid

Greeks need to work 203 days in 2017 to pay taxes, social security ...

Xinhua-17 hours ago
According to the statistics, over the past three years, the average rate of accumulating debt is about one billion euros (1 euro = 1.1 U.S. dollars) per month.

Budget hopes dim as Illinois House property tax freeze fails

Northwest Herald-11 hours ago
... to pay long-term debt and make contributions to police and fire pension accounts. ... With an annual deficit of $6.2 billion and a $14.6 billion heap of past-due ...

Illinois Tells Court It Can't Pay Much More for Medicaid

U.S. News & World Report-22 hours ago

A lawyer has told a federal judge in a civil case surrounding billions of dollars in unpaid Medicaid bills that trying to squeeze money out of Illinois as it heads into ..

France must find new cuts to tackle deficit -auditor

Reuters-2 hours ago
France must find new cuts to tackle deficit -auditor ... spending by billions of euros in coming months to live up to its deficit-cutting promises, the public audit office ...

France 'far off course' in efforts to hit deficit targets
The Local France-43 minutes ago

 

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