Daily Digest

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Daily Digest 2/7 - China’s Aging Population Creating New Debt Crisis, This Bond Market Could Get Uglier

Wednesday, February 7, 2018, 11:20 AM

Economy

Once-rich Venezuelans live as beggars in Colombia, but they don’t want to go back

The once wealthy nation — which used to provide billions of dollars in aid to its allies — is caught in a hyperinflation spiral. Around four million people — of the country’s population of 30 million — might already have left the country, according to local polling firms.

Brazil's pension bill short on votes, running out of time

Economists said Brazil’s deficit is unsustainable and mainly driven up by pensions. In GDP terms it has more than doubled between 2014 and 2017. Official figures released last month showed that the social security deficit grew by 18.7% in real terms in 2017, to a record 268.8 billion reais ($82.49 billion).

China’s ageing population is creating a new debt crisis for Beijing as pension shortfall widens

Gap between workers’ contributions and benefits paid out set to reach 600 billion yuan this year and 890 billion yuan in 2020, analyst says

Venezuela announces 99.6 percent devaluation of official forex rate

Venezuela is undergoing a major crisis, with quadruple-digit inflation and shortages of food and medicine. Economists consistently describe the 15-year-old currency control system as the principal obstacle to functioning commerce and industry.

Central banks were behind the complacency in markets, now investors are spooked: Economist

Central banks created an artificial environment that took out "all the volatility, all the uncertainty" from markets, said Karsten Junius, chief economist at Bank J. Safra Sarasin.

ECB increases buying of company debt despite criticism

Aimed at lowering borrowing costs for companies, the ECB’s purchases of corporate bonds have been criticized by some European lawmakers for being too risky.
But with the ECB’s 2.55 trillion euros ($3.2 trillion) bond-buying scheme due to run at least until September, Frankfurt was expected to delve more heavily into credit to avoid hitting a cap on how much sovereign debt it can own in Germany.

This Bond Market Could Get Uglier

A little more than a week into the New Year, billionaire bond guru Bill Gross proclaimed the start of a bond bear market, after an extraordinary bullish run spanning more than three decades. Two weeks later, another billionaire, Ray Dalio of hedge fund firm Bridgewater Associates LP, piled on with a forecast of the worst bear market since the early 1980s.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/6/18

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."

4 Comments

Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 4 2014
Posts: 510
Gotta love technology!

"Maybe discovered by some future alien race, thinking what were you guys doing? Did they worship this car? Why did they have a little car? That will really confuse them," Musk said.

Gosh; it even confuses me. Wonder what it gets for mileage?

https://www.popularmechanics.com/space/moon-mars/a16571489/elon-musk-space-tesla-mars/

 

 

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1810
Who funds the anti-Russia movement?

Guide to the Top Anti-Russia Think Tanks and Who Funds Them

Those of us who don't want to have our lives, homes and families destroyed in nuclear war will want to know who so much wants conflict with Russia. 

Who promotes the Russia-is-evil story?

Countering Russia has become a lucrative industry in Washington. In recent years, the think tank business has exploded. ... From the start, let’s be clear, the term "think tank" essentially amounts to a more polite way of saying "lobby group." ...



However, particularly in the United States, the field has become increasingly shady and disingenuous, with lobbyists being given faux academic titles like "Senior Non-Resident Fellow" and "Junior Adjunct Fellow" and the like. 

The Atlantic Council

What is it? Essentially the academic wing of NATO. The Atlantic Council serves to link people useful to the organization’s agenda across Europe and North America. However, in recent years, its recruitment has increasingly focused on employees who directly attack Russia, especially on social media. ...



What does it do? Promotes the idea of Russia being an existential threat to Europe and the US, in order to justify NATO’s reason for being.

The Center for European Policy Analysis

Institute for the Study of War

This lobby group could as easily be titled "The Institute for the Promotion of War." Unlike the others, it doesn’t consider Russia its primary target, instead preferring to push for more conflict in the Middle East. However, Moscow’s increased influence in that region has brought the Kremlin into its crosshairs.

German Marshall Fund of the United States

Following the election of US President Donald Trump (ironically a German-American), the lobby group launched the Alliance for Securing Democracy (ASD) project. Its centerpiece is the ‘Hamilton 68 Dashboard’, which seems to classify social media users which reject the US liberal elite’s consensus as “Russian trolls. 

davefairtex's picture
davefairtex
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5262
immigration in Italy

Berlusconi, even though he can't hold office, is taking a page from Trump's book on immigration, and is promising to deport 600,000 illegal immigrants if his party is elected. 

https://www.theguardian.com/world/2018/feb/05/berlusconi-pledges-to-deport-600000-illegal-immigrants-italy-election

The Italian economy has gone nowhere for 20 years - probably because the strong Euro makes it difficult for Italian manufacturing to compete with the Germans.  So with a sucky economy, an influx of migrants from Africa - who will happily take any low end work - is bound to cause discord.

Armstrong suggests that when the economy does poorly, immigration is always a front-and-center issue.

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4097
Illinois Is Awash in Debt Even Before 2019 Budget Pitch

Illinois Is Awash in Debt Even Before 2019 Budget Pitch

Bloomberg-17 hours ago
Illinois also is struggling with $129 billion of unfunded pension liabilities as of June 30 across the state's five retirement systems, according to the Commission on Government Forecasting and Accountability. Illinois had $26.3 billion of general-obligation bonds outstanding as of July, according to Moody's Investors Service, ...

BOK warns of slow recovery of consumption due to household debt

Yonhap News-11 hours ago
At the end of last September, South Korea's household debt stood at 1,419.1 trillion won (US$1,306 billion). Although there is little risk that household debt could spark a financial crisis, household debt is growing faster than household income, choking off private consumption. Last month, the BOK raised its economic growth ...

BOJ Kuroda: Need to stick with QE for price stability

Reuters-7 hours ago
TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Thursday he intended to stick with the central bank's strong quantitative easing program to ... Haruhiko Kuroda, Governor of the Bank of Japan, looks on as he attends the World Economic Forum (WEF) annual meeting in Davos, Switzerland January 26, ...
 

South Korea to Keep Rates Accommodative, Says Debt Dragging on ...

U.S. News & World Report-11 hours ago
"Having said that, consumption recovery may be slower than it was in the past due to the growing debt repayment burden among other reasons." ... At 1,419.1 trillion won ($1.31 trillion), South Korea's household debt is at about 190 percent of GDP, forcing consumers to spend less on items such as food and clothes ...

CBO Reports January 2018 $174 Billion Federal Budget Deficit ...

Sierra Sun Times-1 hour ago
February 8, 2018 - The federal budget deficit was $174 billion for the first four months of fiscal year 2018, the Congressional Budget Office estimates, $16 billion more than the shortfall recorded during the same period last year. Revenues and outlays congressional budget office logo were higher, by 4 percent and 5 percent, ...

Dan Walters: Surging pension costs push more California cities ...

Napa Valley Register-11 hours ago
From one end of California to the other, hundreds of cities are facing a tsunami of pension costs that officials say is forcing them to reduce vital services and could drive some—perhaps many—into functional insolvency or even bankruptcy.The system that manages pension plans for the state government and thousands of ...

Retired teachers sickened by increase in healthcare costs

WOAI-15 hours ago
That's what retired principal Trace Mahbubani paid in January for premiums, doctors visits, and Tamilflu to treat her husband and herself. Mahbubani and nearly 250,000 other retired educators, custodians, cafeteria workers, and bus drivers are dealing with soaring health care costs in their state-run health plan.

 

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