Daily Digest

Image by frankieleon, Flickr Creative Commons

Daily Digest 1/31 - 2/3 UK Pension Schemes In The Red, Cape Town Water Crisis Credit-Negative

Wednesday, January 31, 2018, 9:46 AM


Two out of three UK pension schemes are in the red to the tune of £210bn

Some 3,710 schemes are in deficit according to the Pension Protection Fund watchdog, putting a serious question mark over the retirement plans of millions of workers.

S&P Global Ratings says China to see first bond default by a local government financing vehicle in 2018

A JP Morgan report recently said that China’s debts at the end of last year’s second quarter represented 268 per cent of the country’s gross domestic product.

California’s other drought: A major earthquake is overdue

Reflecting this deficit, the Uniform California Earthquake Rupture Forecast estimates that there is a 93 percent probability of a 7.0 or larger earthquake occurring in the Golden State region by 2045, with the highest probabilities occurring along the San Andreas Fault system.

Saudi Arabia has arranged to seize more than $100 billion in financial settlements related to its corruption purge

The huge sum, if it is successfully recovered, would be a major financial boost for the government, which has seen its finances strained by low oil prices. The state budget deficit this year is projected at 195 billion riyals.

Treasury expects to borrow $441 billion in first quarter

The U.S. Treasury expects to borrow $441 billion in the first quarter, $71 billion lower than previously estimated, according to a statement Monday.

Chinese provinces with GDP of six Australias cut 2018 growth targets

Economists expect China’s overall GDP to grow at a slower pace this year after accelerating for the first time in six years in 2017 as Beijing extends its effort to curb financial risks, cut corporate debt and contain the liabilities of local governments.

U.S. budget deficit to top $1-trillion in 2019: budget experts

The Committee for a Responsible Federal Budget, a Washington fiscal watchdog, said the red ink may rise in fiscal 2019 to $1.12 trillion. If current policies continue, it said, the deficit could top a record-setting $2 trillion by 2027.

Cape Town water crisis is credit-negative: Moody’s

Cape Town is in the throes of the worst drought on record, and water levels in its six main supply dams have plummeted to an average of 27.2%, from more than 90% four years ago. With the winter rainy season still about four months away, residents may find themselves lining up for a daily allocation of 25 litres (6.6 gallons) each from April 12 unless water usage declines sharply.

System Failure (Cornelius999)

In the UK, successive governments have also curtailed their ability to respond to crises. One of David Cameron’s first acts on taking office was to shut down the government’s early warning systems: the Royal Commission on Environmental Pollution and the Sustainable Development Commission. He did not want to hear what they were telling him. Sack the impartial advisers and replace them with toadies: this has preceded the fall of empires many times before. Now, as we detach ourselves from the European Union, we degrade our capacity to solve the problems that transcend our borders.

China unveils its Arctic ambitions, declaring it’s a “near Arctic state” (Uncletommy)

You can already see that desire for a role in resource development in the recent announcement of Chinese company’s investment in Sabina Gold and Silver Corp’s Back River gold mine in western Nunavut and China’s many overtures to Nunavut’s resource-rich neighbour, Greenland, whose leaders visited China last October, and where China has increasing mining interests and even proposed using unused naval base as an operations facility.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/30/18

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."


saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4279
QE set for a $2.7 trillion last hurrah T

QE set for a $2.7 trillion last hurrah

Telegraph.co.uk-22 hours ago
Quantitative easing (QE) will pump almost $3 trillion extra into markets this year, analysts at State Street believe, before more central banks follow the US ... “From a long-term demographic standpoint, there are going to be more and more buyers of debt securities to lower the volatility of their portfolio and look for more stable ...

ECB's Knot Says QE Could End With Short Taper After September

BloombergQuint-20 hours ago
Purchases are scheduled to run until September at a pace of 30 billion euros ($37 billion) a month, taking the program to 2.55 trillion euros. The Governing Council reiterated after last week's policy decision that the program could be extended again if the inflation outlook is too weak to achieve its price-stability goal.

Riverside County pension costs to steadily escalate over next decade

The Desert Sun-15 hours ago
Riverside County's pension costs will steadily escalate over the next decade, without any certainty as to whether the nearly $3 billion in unfunded liabilities now darkening the financial landscape can be pared down, according to a report that the Board of Supervisors will review Tuesday. The board requested that the ...

This chart of surging US health-care costs explains why these titans ...

CNBC-21 hours ago
Warren Buffett, Jeff Bezos and Jamie Dimon are launching their new health care initiative because health care costs are soaring for millions of their employees and Americans overall. The average American spends nearly $4,000 toward health care each year, a number expected to balloon to more than $5,000 in 2023, ...


sand_puppy's picture
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 2087
Washington Insanity: The "Kremlin Report"

Paul Craig Roberts:

In an act of insane escalation of provocations against Russia, Washington has produced a list of 210 top Russian government officials and important business executives who are “gangsters,” “members of Putin’s gang,” “threats.”  ... The absurd list includes the Prime Minister of Russia, the Foreign Minister, the Defense Minister, and executives of Gazprom, Rosneft, and Bank Rossiya. In other words, the suggestion is that the entirety of Russian political and business leadership is corrupt.

Washington’s list has three purposes:

1) To undercut Russian diplomacy by presenting the top echelons of Russia as gangsters.
2) To present Russia as a military threat ...
3) To shift American and European attention away from the coming release of the House Intelligence Committee’s report that proves Russiagate is a conspiracy between the FBI, the Obama Department of Justice and the Democratic National Committee against President Trump. ...

There is likely a fourth reason for the list. Israel wants Washington’s pressure on Russia, because Russia has so far prevented Israel’s use of the US military to create the same chaos in Syria and Iran as has been created in Iraq and Libya. Israel wants Syria and Iran destabilized because they support Hezbollah, which prevents Israel from occupying the water resources of southern Lebanon. The Countering America’s Adversaries Through Sanctions Act, which requires the list, passed the House and Senate by a vote of 517-5. Normally, such unanimous foreign policy votes are associated with demands from the Israel Lobby.

The Russian government and the Russian people need to understand that Washington considers Russia to be a threat because Russia is not under Washington’s thumb. The Zionist neoconservatives control US foreign policy. Their ideology is world hegemony. They do not use diplomacy. They rely on disinformation, threats, and violence. Therefore, there is no American diplomacy with which Putin and Lavrov can engage.


The Russian government faces a difficult situation. ... At some point Russian passivity might convince the neoconservatives that they can successfully attack Russia. Alternatively, the continual provocations might convince Russia that the country is targeted for attack, thereby causing a Russian pre-emptive action.


sand_puppy's picture
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 2087
Feels to me like it is about to blow

I am seeing great angst, agitation and rage in a wide number of people about out political situation.  Both the right and the left.  Left-leaning friends want to hurl objects at their TV sets during the SOTU address.  Personally, I am enraged with the certainty that officials and newspapers are lying to me. 

If anyone has information that any of these items is not correct, please explain.  Please expand items that I am not understanding fully.  I am coming mostly from memory. (Please use the numbers in any responses.)

1.  HRC supporters take over the DNC and shuts out Sanders from getting the Democratic nomination.  Vote counting fraud is used.  DNC then argues that it is NOT obligated to follow the popular vote in selecting its candidate and "fixing" the vote is within its prerogative.  

2.  DNC hires Fusion GPS, an opposition research group, to generate material to degrade the public image of Trump.

3.  Christopher Steele is hired by Fusion GPS to find dirt on Trump and returns stories of Trump enjoying being urinated on by prostitutes (Golden Showers).  He writes it up in a "Dossier."

4.  The FBI/DOJ uses this unverified / questionable / probably-fictitious "dossier" to get a FISA warrant to wire-tap the Trump campaign.  The FBI/DOJ functions as a political weapon. 

5.  The FBI/DOJ stonewalls for 1 year.

6.  Now it looks like "the memo" is about to be released.

Trey Gowdy:  "My Democratic colleagues didn’t want us to find this [contained in the memo] information. They did everything they could to keep us from finding this information.  I mean, going to court to help Fusion GPS so we can’t find out they paid for the dossier, and that they were working for the DNC. ... So, if it were up to Adam Schiff, you wouldn’t know about Hillary Clinton’s email. You wouldn’t know about the server. You wouldn’t know about the dossier."

7.  The FBI/DOJ is framing the release of the memo as an "attack on justice" and intended to interfere with the "Russian collusion" investigation.


8.  Meanwhile, a character assassination effort is made to convince the public that Trump is a puppet of Putin and that Russia influenced the election by purchasing $100,000 worth of social media ads, half of which were purchased after the election. (David Collum, p 136).  This is a "special kind of stupid."

9.  The "Russian Meddling" story is a long standing, coordinated, and covert PR project involving a unified voice from the major MSM.  No firm evidence is offered over a year-long timeframe.  Political advocacy groups like The Alliance for Securing Democracy (including Chertoff, Kristol and Mike Morrell) take the lead in distributing and feeding this story.  This is the neocons.

10.  VIPS analysis of the "Russian hack of the DNC emails" reported at Consortium News says no, the emails were downloaded via a physical connection to the DNC server not over an internet connection (time stamp on each file gives the file transfer rate which was too fast for internet) and then copied and pasted into a Microsoft Office document with Russian language settings.

11.  Craig Murray, Kim Dotcom and Julian Assange say the emails were an insider leak, not a hack.

12.  Podesta email say "we should make an example" out of a leaker, even if not sure who it is.

13.  Seth Rich is murdered.  He is a DNC IT guy who supported Sanders and would be aware that HRC was winning the elections even in districts with Sanders majority.  Seth Rich is the classic disgruntled DNC IT employee.

14.  Sanctions Bill is passed and a list of 210 Russian leaders are named to be targeted.

The Countering America’s Adversaries Through Sanctions Act, which requires the list, passed the House and Senate by a vote of 517-5. Normally, such unanimous foreign policy votes are associated with demands from the Israel Lobby.

15.  Sanctions are deliberate acts to harm another party.  This is a type of warfare against Russia.

16.  So my facebook feed is full of indignant outrage from my spiritual and very GREEN family and friends determined not to let Trump *destroy the Russian investigation* or *intimidate the DOJ from doing its job.*  The deception is complete.

Snydeman's picture
Status: Platinum Member (Offline)
Joined: Feb 6 2013
Posts: 672
I wonder

I wonder if what this represents most is the elite beginning to war on one another.


If so, hold onto your hats people.

saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4279
California's debt for retiree health care nears $92 billion

California's debt for retiree health care nears $92 billion

Seattle Times-11 hours ago
SACRAMENTO, Calif. (AP) — California's debt for health benefits for retired state workers has surged to $92 billion. The figure released Wednesday is $15 billion higher than a year ago. That's due in large part to higher expected health care costs and new accounting standards. State Controller Betty Yee says retiree health ...

Subprime US car lenders fall on bad debts

Financial Times-18 hours ago
Shares in two of the biggest US subprime car lenders tumbled on Wednesday after they set aside larger-than-expected sums for bad loans, intensifying jitters about the financial health of blue-collar America. Credit Acceptance, a Michigan-based auto finance company with a $6.4bn market capitalisation, was down 9 per ...


davefairtex's picture
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5786
cognitive dissonance

To add to your list:

1) the CIA and the FBI were the great enemy of the left back during the 1970s - reactionary forces in a system where the left wanted change.

2) Russia was seen as a nation with whom we should dialog rather than confront by the left; this was the thing that differentiated Republican approaches vs Democrat approaches to foreign policy.

3) The left felt that Big Business was the enemy - anything that Big Business wanted was instantly suspect.

Today, the CIA and the FBI - because they were anti-Trump due to 8 years of Obama (who put the nicest face ever on Endless War) are now the darlings of the left, "champions of democracy" who should be let free to do their good work for the country.

Russia is the dreaded enemy who should be feared, surrounded, and attacked.

Big Business is the source for all those campaign contributions - especially the tech giants.  Facebook Google should be trusted to be the arbiter of truth and fact on the Internet, to prevent Russia and Trump from twisting our minds.

Its just bizarre.  I used to think "1984" was just silly - why would anyone with a memory ever fall for stuff like "we were always at war with Eastasia", but here I am, confronted with pro-CIA pro-FBI pro-big-business Russia-is-the-Evil-Empire Democrats.  And I'm a Democrat!  Well, at least I was before all this crap went down.

OMG.  How did I get here?

cmartenson's picture
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 6060
Brute force manipulation of ""markets"" today

In their desire to jam the ""markets"" higher today, to prevent the appearance of weakness anywhere at anytime, the VIX is being just smashed and smashed again.  Over and over.

And that drags up the cash ""market.""

My strongest suspect is Citadel, with Bernanke grinning as their "short volatility trade" continues to work and bear fruit.

Of course it's all fun and games until it breaks.  And then it's pretty much game over.  Years of fraud and crass manipulation bought a lot of things - time, rising wealth inequality,e tc - but one thing it did not buy was a larger planet with more room to run.

Today's ""market"" action is a grotesque display of a self-interested racket running the show.  Of course the people running it almost certainly think of themselves as saviors, heroes with the Courage to Act.  But really they are just defenders of the status quo with access to unlimited funds courtesy of our unaudited Federal Reserve.

If the CFTC would like to prove me wrong, then open up today's trading tape.  Who exactly has been the buyer of all those highly leveraged market-moving products today?  Perhaps one (or more) of the central banks that comprise the Preferred Buyers Program y'all are running?



Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments