Daily Digest

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Daily Digest 1/11 - "Plague" Of Million-Dollar Homes Haunting Real Estate, The Year Of Living Dangerously

Thursday, January 11, 2018, 11:48 AM

Economy

Retirement crisis: 37% of Gen X say they won't be able to afford to retire (Adam)

Gen Xers aren't alone in their financial angst. The finances of the younger Millennial generation have been hurt by the Great Recession in 2008-09 and high college costs. Older Boomers, according to the TD Ameritrade survey, are also uncertain about their preparedness, with just 47% saying they expect to be "very secure" in retirement. The oldest of the roughly 65 million Gen X Americans — those now 39 to 53 — will be the next generation to retire.

Losing Faith in the State, Some Mexican Towns Quietly Break Away (blackeagle)

Monterrey’s experiment began over a lunch. Mr. Tello was dining with the governor, who received a call from José Antonio Fernández, the head of Femsa, one of Mexico’s largest companies. Femsa’s private security guards, while ferrying employees’ children to school, had been attacked by cartel gunmen, he said. Two had died repelling what was most likely a kidnapping attempt.

The governor put the call on speaker. It was the first of many conversations, joined by other corporate heads who faced similar threats.

The Fed, worrying about the next recession, considers changes (thc0655)

Former Treasury Secretary Larry Summers, speaking at a Brookings Institution conference this week on the Fed's inflation target problem, urged the Fed to get moving on a fix. He noted that the Fed typically has lowered interest rates by 5 percentage points over time to stimulate the economy in recessions. The Fed doesn't have 5 points now, so the next recession will find the central bank less able to kick-start growth, possibly enabling a longer, deeper downturn.

Party While You Can - Central Bank Ready To Pop The 'Everything' Bubble (thc0655)

As I warned before Trump won the election in 2016, a Trump presidency would inevitably be followed by economic crisis, and this would be facilitated by the Federal Reserve pulling the plug on fiat life support measures which kept the illusion of recovery going for the past several years. It is important to note that the mainstream media is consistently referring to Jerome Powell as "Trump's candidate" for the Fed, or "Trump's pick" (as if the president really has much of a choice in the roster of candidates for the Fed chair). The public is being subtly conditioned to view Powell as if he is an extension of the Trump administration.

2018: The Year of Living Dangerously (thc0655)

To understand why 2018 may unfold catastrophically, we can begin with a simple metaphor. Imagine a magnificent mansion built with the finest materials and craftsmanship and furnished with the most expensive couches and carpets and decorated with fine art.

Many happy returns: new data reveal long-term investment trends (blackeagle)

Rates of return both influence and are influenced by the way firms and households expect the future to unfold. They therefore find their way into all sorts of economic models. Yet data on asset returns are incomplete. The new research, published as an NBER working paper in December 2017, fills in quite a few gaps. It is the work of five economists: Òscar Jordà of the San Francisco Fed, Katharina Knoll of the Bundesbank, Alan Taylor of the University of California, Davis, and Dmitry Kuvshinov and Moritz Schularick, both of the University of Bonn. (Messrs Jordà, Schularick and Taylor have spent years building a massive collection of historical macroeconomic and financial data.) For each of the 16 economies, they craft long-term series showing annual real rates of return—taking into account both investment income, such as dividends, and capital gains, all net of inflation—for government bonds and short-term bills, equities and housing. Theirs is the first such data set to gather all of that information for so many countries over so long a period.

A plague of million-dollar homes haunts real estate (Adam)

Rising real estate values, tight inventory and a lack of new construction are contributing to the surge in million-dollar homes. Yet another factor may be at play: rising income inequality, which has benefited the bank accounts of America's richest families.

What's The Difference Between Children's Books In China And The U.S.? (blackeagle)

The book celebrates perseverance, of course — but also another value Cheung and her collaborators tracked: steering clear of bad influences. As Cheung puts it, "avoiding a negative person and staying on track and not being distracted by things that would derail you from achieving your goals."

In this case the man keeps on digging "even as he has to endure criticism from his fellow villagers who call him silly. And in the end he actually removes the mountain."

California's Brown Raises Prospect of Pension Cuts in Downturn (Adam)

That would be a major shift in California, where municipal officials have long believed they couldn’t adjust the benefits even as they struggle to cover the cost. They have raised taxes and dipped into reserves to meet rising contributions. The California Public Employees’ Retirement System, the nation’s largest public pension, has about 68 percent of assets needed to cover its liabilities. For the fiscal year beginning in July, the state’s contribution to Calpers is double what it was in fiscal 2009.

Exercise Alters Our Microbiome. Is That One Reason It’s So Good for Us? (blackeagle)

Exercise also has been associated with variations in the microbiome. Past studies have shown that endurance athletes tend to have a somewhat different collection of microbes within their intestines than sedentary people do, especially if the athletes are lean and the sedentary people are not.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/10/18

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: 4192
The Fed Delivered $80.2 Billion in Profits to the Treasury

The Fed Delivered $80.2 Billion in Profits to the Treasury in 2017

New York Times-20 hours ago
The Fed made an average annual contribution to the Treasury Department of $23 billion during the five years preceding the crisis. Since 2010, the average contribution has been $86 billion. The Fed's bond holdings comprise federal debt and securities issued by the government-owned mortgage finance companies Fannie ...

Report on China slowing US bond purchases may be 'fake ...

CNBC-11 hours ago
According to data from the Treasury Department, the country is the biggest foreign holder of U.S. government debt, with $1.19 trillion in Treasuries as of October 2017. China's foreign exchange reserves, the world's largest, rose $20.2 billion in December to $3.14 trillion, as tight regulations and a strong yuan continued to ...

Yield Spike Just Made RBI's Job Selling Indian Debt Much Harder

Bloomberg-12 hours ago
Yield on the 6.79 percent sovereign debt due 2027, the most-traded paper, climbed 86 basis points in the five months ended December. “RBI is probably not willing to provide a very high yield,” said Gopikrishnan MS, head of foreign exchange, rates and credit trading for South Asia at Standard Chartered. “At an absolute ...

European Central Bank close to revisiting stimulus program

ABC News-1 hour ago
Top officials at the European Central Bank may revise their outlook for their massive monetary stimulus program at the start of this year, according to an account of their last meeting. The report published Thursday showed the officials remained wary at their Dec. 14 meeting of prematurely signaling an expected exit from the ...

 

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1962
Controlling Discourse: Shadow Banning Tweets, FB Posts

Two articles this morning talking about the practice of "shadow banning" a poster or a theme on twitter.  The same is clearly happening on facebook, as well.  Here and here.

Twitter and Facebook appear to be "public" venues, but are actually run by for-profit corporations supervised by people with their own viewpoints of what is right and what causes should be advanced.  By controlling this communication venue, owners are in powerful positions to control the discussions.

"One strategy is to shadow ban so you have ultimate control. The idea of a shadow ban is that you ban someone but they don't know they've been banned, because they keep posting but no one sees their content."

"So they just think that no one is engaging with their content, when in reality, no one is seeing it. I don't know if Twitter does this anymore."

Censorship of certain political views is being automated with "machine learning" (automated).

Several examples of deleted tweets are provided.

 

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 435
Retirement Crisis

"with just 47% saying they expect to be "very secure" in retirement. The oldest of the roughly 65 million Gen X Americans — those now 39 to 53 — will be the next generation to retire."

LOL! 47% are delusional. I doubt even 1% of GenX and perhaps even young boomers of the US population will be able to retire. The day of reckoning for the US will happen before any GenX can retire. With all these Pensions going bust and Older boomers already extracting close to $1.5T in entitlements every year, no way is this sustainable. Even with the fake SS trust fund, it goes bust in 2035. Since we there is no SS trust fund, its going to go bust in less than 10 years. I suspect we see Congress make start increasing the retirement ages, as well as making cuts so that a SS check will only afford recipeints a steady diet of cat food.

 

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