Daily Digest

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Daily Digest 7/5 - 'Tidal Wave Of Expenses' In CA Schools, The Age Americans Pay Off Their Student Loans

Wednesday, July 5, 2017, 8:37 AM

Economy

Congress Moves to Stop I.R.S. From Enforcing Health Law Mandate

The penalty for failing to maintain coverage is either a flat dollar amount or a specified percentage of household income, whichever is greater. For an individual with annual income of $40,000 and no coverage during the year, the penalty would be $741, according to a calculator on the I.R.S. website. For a couple with annual income of $90,000 and no insurance, the penalty would be $1,732.

K-12: ‘Tidal wave of expenses’ in looming California school budget crisis

With a currently healthy state budget, the biggest threat to balanced school budgets is the growing bite taken by public retirement systems — CalSTRS for teachers and CalPERS for support staff. Next school year, those taxes will be about 15 percent of employer payroll. In four years, the CalPERS payroll tax will exceed one-quarter of salaries and is scheduled to continue growing in an effort to enable it to better cover its projected retirement payouts. CalSTRS also will also grow.

After tax hike and budget votes, Illinois avoids credit downgrade to junk for now

It calls for raising the personal income tax rate from the current 3.75 percent to 4.95 percent, which would generate roughly $4.3 billion. An increase in the corporate income tax rate from 5.25 percent to 7 percent would bring in another $460 million. The surplus revenue could be used to cover the cost of borrowing to pay down unpaid bills, Democrats said.

This is the age most Americans pay off their student loans

The Federal Reserve reports that there are that there are 6.8 million student loan borrowers between the ages of 40 and 49 and that together, these graduates hold a collective $229.6 billion in debt. That means that Americans in their 40s with student loan debt each have an average balance of $33,765.

EXCLUSIVE: Documents expose how Hollywood promotes war on behalf of the Pentagon, CIA and NSA (Afridev)

When we first looked at the relationship between politics, film and television at the turn of the 21st century, we accepted the consensus opinion that a small office at the Pentagon had, on request, assisted the production of around 200 movies throughout the history of modern media, with minimal input on the scripts.

UN to Meet on North Korea After U.S. Confirms Rocket Was ICBM (jdargis)

With Secretary of State Rex Tillerson calling North Korea’s actions a “new escalation of the threat” to the U.S. and its allies, the UN is set to issue a condemnation of the missile test, which comes in defiance of international sanctions. Still, with China and South Korea also calling for caution, and urging fresh efforts to entice North Korea to talks, the prospects for strong action appear limited.

Migrants in Libya are being rounded up and sold into slavery, UN says (Uncletommy)

Some, he said, are held as hostages by smugglers hoping to secure money from their families back home.

If that doesn't pan out, they are sold for between $100 to $200 US per person, often as day labourers in construction or agriculture.

The Global Oil Demand Driver That Is Being Ignored (Michael K.)

Since 2000, heavy trucks have accounted for 40 percent of the total growth in oil demand, on par with the share for passenger vehicles. Trucks burn about 17 million barrels of oil per day (mb/d), or about one-fifth of total global demand.

Crucially, demand is still growing…rapidly. By 2040, road freight will be responsible for 5 mb/d of demand growth, or about 40 percent of total additional demand over that timeframe. If that occurs, any chance at putting a dent in global greenhouse gas emissions would be significantly undercut by the large increase in emissions from trucking.

Gold & Silver

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

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."

9 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4009
Keep Eye on Sovereign Debt for Next Minsky Moment

Keep Eye on Sovereign Debt for Next Minsky Moment

Bloomberg-7 hours ago
Unlike in 2008, the culprit isn't low-quality subprime mortgage debt, but sovereign bond markets. Central bank purchases of government paper reduce yields ...

Japan 2016/17 corporate tax revenue down in blow to Abenomics

Reuters-7 hours ago
TOKYO (Reuters) - Japan's corporate tax revenue fell to 10.3 trillion yen ($90 ... Half of the excess cash must be spent to pay off debt under Japan's budget rules.

France 'dancing on a volcano' on state spending and debt warns ...

Telegraph.co.uk-21 hours ago

France is "dancing on a volcano" of chronic state overspending and debt, its new ... Last week France's independent auditor revealed a more than €8 billion ..

Almost eight in ten graduates will never pay back their full student ...

Telegraph.co.uk-8 hours ago

The number of graduates who fail to clear their debt before it is written off has ... the Government will foot the bill for £5.9 billion per year of unpaid student loans,

Argentina 2017 inflation seen at 21.6 percent, above central bank ...

Reuters-16 hours ago
Argentina 2017 inflation seen at 21.6 percent, above central bank target ... to 17 percent, a poll of 54 economists published by the bank showed on Tuesday.

S. Korea's national debt exceeds 950 tln won

Yonhap News-12 hours ago
SEOUL, July 5 (Yonhap) -- South Korea's national debt as measured in outstanding state bonds issued exceeded 950 trillion won (US$826.2 billion) last month, ...

Iowa's public pension funds owe billions: Lawmakers plan to study ...

DesMoinesRegister.com-14 hours ago
Iowa's public employees' pension funds face billions of dollars in long-term unfunded liabilities and state lawmakers are planning to review whether they are still ...

Arizona taxpayers could pay more as pension costs continue to rise

AZFamily-9 minutes ago
Rep. Noel Campbell, R-Prescott, wants these meetings with the committee he is chairing to educate the public on the pension issue. However, most of those ...

Why is health care so expensive in the first place?

CBS News-5 hours ago
Meanwhile, health care costs were outpacing the general rate of inflation long before the the ACA or Obamacare became law, and are projected to continue to ...

 

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5436
I don't understand...
saxplayer00o1 wrote:

Argentina 2017 inflation seen at 21.6 percent, above central bank ...

Reuters-16 hours ago
Argentina 2017 inflation seen at 21.6 percent, above central bank target ... to 17 percent, a poll of 54 economists published by the bank showed on Tuesday.

According to Janet Yellen, Argentina should be rolling in prosperity because they have inflation 10x higher than her own difficult to achieve 2% target.

If inflation made things better, Argentina would be rolling in awesomeness.

However, after just coming back from a month there, I can assure you that Argentina is anything but increasing prosperity for its people.

The scuttlebutt was that the top note, a 500 peso unit, was going to be superseded by a 1000 peso note and that worried everyone...because they know that a 2,000 peso note and then a 5,000 and then a 10,000 are what happens next...and they all get to practice their dumpster diving because, unlike central bank dogma, the real experience of real people is that inflation ruins your life.

Why Janet and Draghi get away with spouting their savings ruining mantras is beyond me.  Maybe all the journalists went through the same school system?

pyranablade's picture
pyranablade
Status: Silver Member (Offline)
Joined: Nov 8 2010
Posts: 203
rolling in awesomeness

That was too good to pass up.

Next time somebody asks me how I'm doing, I will tell them that I'm

rolling in awesomeness

cool

DennisC's picture
DennisC
Status: Silver Member (Offline)
Joined: Mar 19 2011
Posts: 226
Double Secret Probation?

http://www.zerohedge.com/news/2017-07-05/terrible-news-illinois-moodys-p...

Ha, ha – still at "investment" grade (for now).

AKGrannyWGrit's picture
AKGrannyWGrit
Status: Gold Member (Offline)
Joined: Feb 6 2011
Posts: 390
Rolling In Awsomeness

Haha that's a good one.  Our dog just "rolled in awesomeness" and she was overjoyed.  The rest of us however found her smell to be disgusting.  Since we don't have skunks in Alaska it had to be a dead carcus or bear poop, not that it matters it's just a perfect analogy!

AKGrannyWGrit

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1411
Cali CALPERS

"In four years, the CalPERS payroll tax will exceed one-quarter of salaries and is scheduled to continue growing in an effort to enable it to better cover its projected retirement payouts. CalSTRS also will also grow."

Anyone see the problem?   Exodus!

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4009
Illinois at the brink: Parallel should give Californians pause

Moody's Places Illinois' GO and Related Ratings Under Review for ...

Moodys.com (press release) (subscription)-17 hours ago
Illinois has outstanding debt of about $32 billion, of which 82% is general obligation. ... The decision to place the state's ratings under review for downgrade ...

Illinois may get downgraded to junk despite budget deal

WSLS-8 hours ago
The fact that Moody's is considering a downgrade despite a possible budget deal ... In other words, Illinois will have to take on yet more debt to pay its debt.

'Illinois math' has led to chronic underfunding of teacher pensions

Chicago Tribune-21 hours ago
Concerning public pensions for teachers and government employees, she ... the major reason the system carries an unfunded liability of $71 billion — one of the ...

Illinois at the brink: Parallel should give Californians pause

The San Diego Union-Tribune-1 hour ago
In 2016-17, the state had $32 billion in revenue but still ran a deficit of nearly $6 ... “To say Illinois faces a hole in funding its public employee pension systems is ...

Retired Teachers Face Huge Health Care Cost Increases

Texas Public Radio-10 hours ago
For years, Texas lawmakers have been trying to stem the bleeding of the state's health care plan for retired teachers. The plan has been at risk of going ...

Argentina Losing Luster as Debt Glut Weighs With Election Risks

Bloomberg-2 hours ago
“It was a lot of supply, which folks weren't expecting,” said Edwin Gutierrez, the London-based head of emerging-market sovereign debt at Aberdeen Asset ...

China could export a recession to everyone else, says ex-IMF chief ...

CNBC-11 hours ago
Soaring debt levels in China were a serious concern as the fallout of any crisis ... outstanding non-financial sector debt hit 191.3 trillion yuan ($27.96 trillion), ...

Indebted households spending more income to repay loans

The Korea Herald-13 hours ago
Households with loans use about a third of their disposable income on debt ... Household debts had nearly doubled from 700 trillion won in 2009 to 1,300 trillion ...

 

QQQBall's picture
QQQBall
Status: Member (Offline)
Joined: Mar 3 2011
Posts: 7
The CALI/CALPERS article

Cali just slushed $6 billion to CALPERS... and they are right back at the trough highlighting the chillrens.

QQQBall's picture
QQQBall
Status: Member (Offline)
Joined: Mar 3 2011
Posts: 7
Investment Grade?

They will have to rollout more debt... if they downgrade it now, less bond buyers and higher rates... look for the downgrade after the next tranche of debt is sold.

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