Daily Digest

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Daily Digest 11/29 - IL Court Ruling Will Cost Retirees, SS Faces 23% Cut

Wednesday, November 29, 2017, 10:49 AM

Economy

Diabetes hits hard as California spends billions on treatment, little on prevention

Treating diabetes costs government, private insurers and patients about $27.6 billion a year in California for such expenses as doctor visits, testing, medication, surgery and hospital costs, according to the American Diabetes Association. The state and federal governments shoulder most of that expense through Medi-Cal, which is California’s health program for those living in poverty, and the national Medicare system that covers seniors.

Illinois Supreme Court’s health care ruling will cost city retirees

Last week’s ruling is particularly costly to roughly 10,000 city employees who started working for the city before April 1, 1986, and therefore did not qualify for Medicare.
They have been forced to choose between exorbitant premiums that, in some cases, are double their retirement checks or go without health insurance coverage at a time when they need it the most due to their age and declining health.

State insists KPERS pension fund still in solid shape, despite unfunded liabilities growing to more than $9 billion (Kansas)

Several things happened over the last several months that affected the fund, including the elimination of a $97.4 million payment that the state was supposed to make in 2016. Lawmakers this year also delayed another $64 million payment, and they plan to delay another $194 million in payments next year, although those are scheduled to be repaid with interest over 20 years.

Crunch looms as house correction puts some Canadians under water

A drop in Canadian home prices has put some recent buyers under water, particularly in Toronto, the nation’s largest market, just as rising interest rates and record levels of household debt have put the squeeze on borrowers.

China Bond Rout Is `Early Warning Signal' to Global Debt Market

Yields on China’s sovereign and top-rated local notes climbed to the highest level in three years last week, while a measure of the nation’s core inflation -- which excludes food and energy prices -- has risen to a six-year high of 2.3 percent.
This normalization in bond yields is going to happen globally, said Darby. “China’s been the early warning signal for the rest of the world.”

Dallas Fed president: Stock market 'excesses' pose potential threat to economy

In an essay released Monday, Dallas Fed President Robert Kaplan warned about "excesses" in the economy, pointing specifically to stocks and the government debt. The S&P 500 market cap is at 135 percent of GDP, the highest since 1999-2000, just as the dot-com bubble was about to pop, the central banker said.

Opinion: Warning: Social Security faces a 23% cut

The news media’s been so busy covering President Trump 24/7 that a really big story slipped through the cracks this summer: Social Security will begin paying out more than it takes in by 2021 — just three years from now, and come 2034 or so — just 16 years away — payouts could be slashed by about 23%, unless tough steps are taken to bolster the rickety program.

Even sex is in crisis in Venezuela, where contraceptives are growing scarce (cmartenson)

In Venezuela, a collapse in oil prices­, along with nearly two decades of socialist policies, has sparked a severe recession and one of the world’s highest inflation rates. People often wait hours in line to buy bread. Prices for staples jump almost by the day. Medical short­ages range from antibiotics to cancer drugs.

Feds Ask State to Explain Cracks in New Oroville Spillway Concrete (Suzie G.)

The letter said the agency found “the hairline cracks are a result of some of the design elements included to restrain the slabs and produce a robust and durable structure.”

The letter added that the cracking “was anticipated and is not expected to affect the integrity of the slabs.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/28/17

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

DennisC's picture
DennisC
Status: Gold Member (Offline)
Joined: Mar 19 2011
Posts: 342
"Design Elements"

That's rich!  Kind of like "feature" when trying to explain away the funky operation of one's latest and most innovative product e v e r.

sebastian's picture
sebastian
Status: Member (Offline)
Joined: Feb 9 2010
Posts: 14
Sharing our journey

Hello fellow PP  folk :)

I remember a while back reading a post about people sharing their personal stories of enacting change in a more sustainable manner. Currently our family of 5 is about to begin a homesteading journey on 9 acres of  wooded paradise in Lund BC :)

I would like to share more of our process but in an appropriate area. If anyone could direct me in the right direction I would greatly appreciate it.

Stay Happy,

Seb.

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5975
Sharing your journey
sebastian wrote:

Hello fellow PP  folk :)

I remember a while back reading a post about people sharing their personal stories of enacting change in a more sustainable manner. Currently our family of 5 is about to begin a homesteading journey on 9 acres of  wooded paradise in Lund BC :)

I would like to share more of our process but in an appropriate area. If anyone could direct me in the right direction I would greatly appreciate it.

Stay Happy,

Seb.

Congratulations and of course we'd love to hear all about your journey!

There's a spot for that here at Peak Prosperity.

The best place would be in our Featured Discussions area where people will take the time to write up something and the post it for everyone to read and react to.  

Found here:  https://www.peakprosperity.com/featureddiscussion

The process would be that you'd write something up and send it to us here at PP and we'll format and load it.

You can continue to update your progress over time in the comments below, or, if more appropriate we can update the original piece.

You'd probably be interested in the most recent featured discussion where Suzie Gruber shared her process for picking a new location in which to settle.

https://www.peakprosperity.com/discussion/113490/time-make-move

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4239
Negative interest rates and abololish paper currency

Marvin Goodfriend Is Nominated to Be a Fed Governor

Bloomberg-15 hours ago
Instead he made a case for an even more unorthodox idea: negative interest rates. He conceded, however, that a sustained policy of negative rates might require abolishing paper currency, a step that would likely prove unpopular. If Goodfriend is confirmed, two additional vacancies will remain on the Fed board. Yellen has ...

 

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5975
OFFS
saxplayer00o1 wrote:

Marvin Goodfriend Is Nominated to Be a Fed Governor

Bloomberg-15 hours ago
Instead he made a case for an even more unorthodox idea: negative interest rates. He conceded, however, that a sustained policy of negative rates might require abolishing paper currency, a step that would likely prove unpopular. If Goodfriend is confirmed, two additional vacancies will remain on the Fed board. Yellen has ...

"Require"?

What an absolute IYI (intellecutal yet idiot).  Trump just proved that he's another tool of the deep state, same as Obama.

He could have nominated someone wiht actual business experience, or even market experience.  Instead an egghead who used to run a Fed research division.

Here's how negative interest rates work out here in the real world:

And while the Fed clings to the fiction that it is “data dependent,” its response function – cowering in the face of every market “tantrum” – reveals monetary policy to be what it really is: a put on financial prices. But can the Fed, Canute-like, hold back the future tides of de-leveraging?

No, though we expect that they, like their comrades in arms at the ECB and BOJ, will keep trying. Indeed, negative rates can be best understood as merely the latest attempt to forestall the failures of policies past.

But, is anyone helped by establishing negative “hurdle” rates to incentivize “investment?” If a commitment of capital requires a negative opportunity cost, then whatever activity that might be launched will assuredly be productivity destroying. Negative rates have all the economic “logic” of destroying the village so as to rebuild it.

(Source)

The entirely inappropriately monikered Goodfriend is anything but.  He will continue the wealth destroying and middle-class destroying policies of the Fed.  he is merely another lackey for the status quo.  Here to provide a (thin) veneer of academic credentials to polices that are unabashedly destructive to the vast majority of the victims citizens of the US and the rest of the world.

He's no friend of yours, let alone a good friend.

More of the same coming out of the DC swamp.  Drained?  Nope, it's expanding.

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