Daily Digest

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Daily Digest 8/2 - New Nuclear Plants Scrapped, LA’s ‘Virtual Bankruptcy’ Equals ‘Service Insolvency'

Wednesday, August 2, 2017, 9:36 AM

Economy

Delta Air Lines To Suspend Flights To Venezuela, Amid Unrest

According to the International Air Transport Association, the Venezuelan government owes airlines $3.8 billion. These airlines have been prevented from converting their earnings from bolivars, the currency in Venezuela, into dollars, because of a hold by the government.

Idaho Health Plan Rates Set To Increase In 2018

Health insurance premiums in Idaho will go up in 2018, between 6 and 81 percent depending on the plan you choose. That's according to proposed increases to the price of your health care plan.

California 2018 health insurance rates come out Tuesday, and they'll likely be higher

Californians will learn Tuesday how much health insurance will cost in 2018. And for the 9 percent of Californians who buy health insurance through Covered California, rates could be to be up to 17 percent higher, according to officials with the state exchange.

Health-care costs for typical Canadian family will eclipse $12,000 this year; up nearly 70% since 1997

“Health care in Canada isn’t free—Canadians actually pay a substantial amount for health care through their taxes, even if they don’t pay directly for medical services,” said Bacchus Barua, senior economist with the Fraser Institute’s Centre for Health Policy Studies and co-author of The Price of Public Health Care Insurance, 2017.

LA’s ‘Virtual Bankruptcy’ Equals ‘Service Insolvency’

A key factor which limits how much can be budgeted is the city’s share of pension costs. They consume 20% of the general fund budget, up from 5% in 2002. In 2008, the beginning of the great recession, it was 15%. So, despite a robust recovery, the slice has increased in size.


Chicago Pension Bills Soar as City Pays Up to Keep Funds Solvent

Despite the changes, the city’s pension debt is still rising. Chicago’s pensions are struggling with $35.8 billion of unfunded liabilities as of Dec. 31, up from $33.8 billion a year earlier. The shortfall comes after years of not paying enough into the funds.

Brazil faces lost generation of young workers after recession

Recent graduates are struggling to pay student loans and gain work experience, turning a demographic boom once considered an engine of future growth into a drag on the Brazilian economy, which may be saddled with a lost generation of young workers.

Government vows to halt oil production if cost remains high (Nigeria)

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, says there is no way the country can keep producing, while the prices of crude remain low.
The minister said that the oil sector has suffered infrastructural deficit of over $15 billion (N4.59 trillion) as many investment has been put on hold due to the low oil prices.

Billions down the drain as new nuclear plants scrapped

Billions of dollars spent on two new nuclear reactors in South Carolina went up in smoke Monday when the owners nixed plans to finish them after years of delays and cost overruns, dealing a severe blow to the industry's future.

British consumers grappling with heavier debt loads: Moody's

British households are increasingly grappling with debt at a time the U.K. economy is showing signs of slowing, Moody's Investors Service warned Monday. "Household debt is high and still growing, leaving consumers vulnerable to an economic downturn, while higher inflation, weaker wage growth and levels of indebtedness leaves those in lower-income brackets the most exposed,"

U.S. Treasury expects to borrow $96 billion in third-quarter, $501 billion in fourth-quarter

It also expects to issue $501 billion in net marketable debt in the fourth quarter. That estimate "is a massive projected borrowing figure, the likes of which have not been seen since Q4 2008," investment bank Jefferies said in a note to clients.


China Inc.'s Next Debt Headache Is $580 Billion of Put Options Coming Due

The nation’s businesses sold about 65 percent of all corporate bonds with put options worldwide, at 3.9 trillion yuan ($580 billion). Creditors holding some 2 trillion yuan of mainland notes will be able to exercise those options in the next two years, forcing issuers to either increase interest payments or redeem the debt early.

This Is an Outrage, Junk-Bond Market Says. Everyone Buys Anyway

It’s another sign of exuberance in high-yield markets that has veterans like Oaktree Capital Group LLC co-chairman Howard Marks sounding the alarm. Investors are “at it again,” Marks said, funding risky deals and driving valuations so high that prospective returns in most asset classes are “just about the lowest they’ve ever been.”

No Bubble in Stocks But Look Out When Bonds Pop, Greenspan Says

“By any measure, real long-term interest rates are much too low and therefore unsustainable,” the former Federal Reserve chairman said in an interview. “When they move higher they are likely to move reasonably fast. We are experiencing a bubble, not in stock prices but in bond prices. This is not discounted in the marketplace.”

Gold & Silver

Click to read the PM Daily Market Commentary: 8/1/17

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."

3 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3984
Insurers want to hike Obamacare rates in Illinois up to 43 perce

With sales falling, car makers throw in zero-percent deals

MarketWatch-20 hours ago
The auto industry rolled out zero-interest financing in July, trying to entice buyers to their showrooms amid falling domestic sales. Efforts to jump-start sales also ...
 

BOJ's Funo says bank no longer setting deadline for inflation target

Reuters-6 hours ago
SAPPORO, Japan (Reuters) - Bank of Japan board member Yukitoshi Funo said the central bank no longer has a binding timeframe for meeting its ambitious ...

Can Xi Jinping Defuse China's Debt Bomb?

Bloomberg-17 hours ago
Overall government, household, and corporate debt clocks in at more than $28.8 trillion, or 258 percent of gross domestic product. The biggest share, some $17 ...

Student loan debt continues to skyrocket as borrowers struggle to pay

KMBZ-2 hours ago
About 44 million American borrowers owe more than $1.3 trillion in student loan debt, which is $620 billion more than the total U.S. credit card debt. The average ...

Portugal's public debt close to 250 billion euros

Macauhub-5 hours ago
Portugal's public debt reached 249.1 billion euros at the end of June 2017, a figure that represents a monthly increase of 1.8 billion euros, according to figures ...

Health Care Costs for Prison Inmates Up 37% Since 2009

Washington Free Beacon-5 hours ago
Health care costs for prison inmates has increased roughly 37 percent from 2009 to 2016, according to an audit from the Government Accountability Office.

 

Covered California premiums will rise 12.5%, and Anthem Blue ...

Los Angeles Times-19 hours ago
Amid uncertainty over the future of the Affordable Care Act, California officials announced Tuesday that monthly premiums for health plans sold on the state's ...
 

Insurers want to hike Obamacare rates in Illinois up to 43 percent

Chicago Sun-Times 14h ago

Insurers want to increase premiums by 30 percent or more

New York Post-12 minutes ago
Insurers are looking at increasing premiums by 30 percent or more next year as they ... to insurance companies that help low-income people afford health care.

Proposed health insurance rates skyrocket in Idaho
KTVB-14 hours ago

 

NEBRASKA HEALTH CARE PREMIUMS MAY RISE BY 17 TO 50 ...

KSCJ-17 hours ago
Nebraska's only provider of individual health insurance plans under the Affordable Care Act wants to raise its monthly rates by an average of nearly 17 percent, ...

Obamacare rate hikes confirmed at 44 percent or higher

The Union Leader-6 hours ago
CONCORD — The federal government on Tuesday confirmed what many in New Hampshire have feared for months — premiums for individual health insurance ...

'World of Warcraft' money worth more than Venezuelan currency

Washington Times 21h ago

Venezuela Bondholders Spooked as Sanctions Spur Default Fears

Bloomberg-2 hours ago

U.S. sanctions against key government officials and a power grab by President Nicolas Maduro threaten to disrupt financial flows and leave the socialist .

 

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1623
Where are the Central European Migrants Coming from?

It looks like UNICEF is the source of this graphic.

My imaginings

Keeping with the 3E principles as the drivers--

1.  Overpopulation, resource depletion, and environmental degradation drive the process.

2.  Social and economic collapse starts at the least resilient areas, the "outside."

3.  Migrations as people flee the collapsed areas for a better life in the not-yet-collapsed area.

4.  The immigrants bring population stress and social fracturing stresses as peoples of very different social customs and beliefs fail to mix and integrate. Ethnic enclaves / ghettos form. 

5.  Conflict results.  The conflict hastens the collapse of the "inside" by destroying infrastructure and creating a lawless environment where trade and commerce are impossible. (As an example:  the video of armed motorcyclist robbing a sugar delivery truck in Venezuela posted here a few weeks ago causes food delivery companies to cease transporting their goods.)

6.  People fight for a greater slice of the pie, destroying the pie.

YELLOW and TURQUOIS thinkers can see the dynamics of this destructive process and wish to step out of the downward spiral of destruction.  But BLUE, ORANGE and GREEN cannot.  These less insightful and less flexible Memes continue to passionately play their roles that keep the destruction process barreling ahead full steam.

“The whole problem with the world is that fools and fanatics are always so certain of themselves, and wise people so full of doubts.”  -Bertrand Russell

YELLOW and TURQUOIS struggle with hopelessness and despair watching the train speed towards the ravine, fully aware that the bridge is out. 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 3984
Gold in Bolivars...2,440 at end of 2009....12,849 now

Live Gold Spot Price - Venezuelan Bolívar (VEF)

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