Daily Digest

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Daily Digest 2/21 - LA’s $1B Giveaway, Credit Card Debt Can Be Bad For Your Health

Wednesday, February 21, 2018, 10:41 AM

Economy

Outside Audit Warns Santa Monica City Might Not Be Able to “Absorb” Coming Recessions

In 2016-2017, the City’s unfunded pension liability totaled $387 million, or 76 percent of the entire $507.9 million operating budget (the unfunded liability has since reached $461 million.) ("City of Santa Monica's Unfunded Pension Costs Jump 20 Percent," January 16, 20018).

Student loan borrowers with high debts aren’t making progress repaying them

The share of student loan borrowers owing more than $50,000 jumped from just 2% in 1990 to 17% by 2014, according to a new paper published by The Brookings Institution. The paper, authored by Adam Looney, a former Treasury Department official and Constantine Yannelis, a finance professor at New York University’s Stern Business School, also found that borrowers are having trouble repaying the debt.

LA’s $1 Billion Giveaway

The City’s Structural Deficit means we are looking at a river of red ink for years to come as our Elected Elite are unwilling to hold the growth in personnel expense to levels that do not exceed the growth in revenues. And this perennial shortfall does not include any additional funding to address the City’s $10 billion deferred maintenance backlog or the $15 billion unfunded pension liability.

Treasury $258 Billion Bond Auction Is Hogging All the Attention

Two-year Treasuries led the selloff, while the eurodollar curve -- which is used to extrapolate Federal Reserve expectations -- steepened too. The Treasury sells three-month bills worth $51 billion and six-month bills for $45 billion, both unprecedented in their size. Total issuance this week is expected at $258 billion.

Illinois Still Has $9-Billion in Overdue Bills

State Owes $946-Million in Late Payment Interest Penalties Alone

Canadians Have $230 Billion In Home Equity Loans – Raising Red Flags In Ottawa

Canadians are borrowing money against their homes in record amounts – a situation that is raising red flags among politicians and policy setters in Ottawa.

Chaos in Traverse City, as county government wrestles with pension debt

A task force reported to Gov. Rick Snyder last summer that Michigan’s roughly 600 municipalities had incurred $7.6 billion in unfunded pension debt and over $10 billion in unfunded retiree health-care liability. In county governments, pensions are the bigger nut – accounting for $5 billion in unfunded liabilities.

Junk-Bond Exodus by `Tourists' Seen When Bunds Hit 1 Percent

Even though the ECB itself doesn’t buy speculative-grade debt, 745 billion euros ($923 billion) of corporate bond purchases since June 2016 have crowded out investors like pension funds and insurers from their usual high-grade realm, pushing them further down the risk spectrum into junk bonds.

How Japan's Central Bank Policy Is Driving Speculation About Stimulus

With the central bank owning more than 40 percent of sovereign debt, there is also concern that the BOJ will crowd private investors out of the market.

Why credit card debt can be bad for your health

Still, the average American has about three credit cards and a total balance of $6,375, up nearly 3% from last year, according to Experian's annual study on the state of credit and debt in America.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/20/18

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

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4118
US short-term borrowing costs rise to highest since 2008

US Pays Up to Auction $179 Billion of Debt in a Span of Hours

Bloomberg-21 hours ago

Concerns about the U.S. borrowing cap had forced the Treasury to trim the total amount of bills it had outstanding, but with the latest debt-ceiling drama over, the government is now busy ramping up issuance. Financing estimates from January show that the Treasury expects to issue $441 billion in net marketable debt in the ..

US short-term borrowing costs rise to highest since 2008

Reuters-18 hours ago

Tuesday's auctions made up more than half of the $258 billion in Treasury debt supply scheduled for sale this week, which is projected to raise nearly $48 billion in ... Concerns about an expected surge in federal borrowing have escalated after a major tax overhaul late last year which is estimated to add up $1.5 trillion to ..

Italian election: Italy faces debt crisis WHOEVER wins vote - analyst ...

Express.co.uk-3 hours ago
Scrutiny of the Italian parties' election manifestos shows the cost of carrying out their pledges will dwarf current spending and make sovereign debt soar, making Italy's financial crisis more “explosive” than ever. A study by Italian newspaper la Repubblica shows Matteo Renzi's Partito Democratico (PD), for example, ...

A $295 Billion Fund Says Central Banks May Top Inflation Targets

Bloomberg-8 hours ago
“We are now in a transition from an environment in which inflation clearly was not meeting central bank targets to one in which inflation will meet those targets -- but ... With inflation still under control and well below targets at central banks in the U.S., Japan and Europe, there are now reasons to indicate its return isn't far off ...

Health care costs are going to sting more

Yahoo Finance-20 hours ago

Health care costs are likely to put more stress on the family budget during the next decade. The amount of money Americans spend on health care is likely to rise by about 5.5% per year for the next several years, according to new government projections on health spending through 2026. Spending on health will most likely ..

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1841
Russian nothing burger

From Vox on the Mueller indictements.

Special Counsel Robert Mueller’s team has filed its first charges against Russians. On Friday afternoon, the Justice Department indicted 13 Russian people and 3 Russian companies, accusing them of conspiring to interfere with “US political and electoral processes, including the presidential election of 2016.”

The indictment focuses primarily on propaganda efforts of one Russian group in particular: the Internet Research Agency. The group’s operations — social media posts, online ads, and rallies in the US — were “primarily intended to communicate derogatory information about Hillary Clinton, to denigrate other candidates such as Ted Cruz and Marco Rubio, and to support Bernie Sanders and then-candidate Donald Trump,” the indictment claims.

Importantly, the indictment does not allege that the outcome of the election was changed, and it does not allege that any Americans or anyone on the Trump campaign was aware of or involved in this Russian effort. It does allege that some of the defendants posed as US persons and “communicated with unwitting individuals associated with the Trump Campaign.” (Mueller’s investigation has so far resulted in charges against four Trump associates on separate matters.)

However, this "nothing-burger" held the front page headlines in the national news.

We are in the middle of a massive and coordinated PR campaign that crosses multiple media corporations with a unified theme.

Why?

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1841
The Saker on "Globalism"

Globalism from a Russian Perspective posted at TheSaker.is

 

Recently, the words ‘globalism’ and ‘globalisation’ sound more and more often from the most varied platforms. It will not be long that children will be using these terms without breaking a sweat. 

Once can say endlessly that globalisation is the creation of a “single economic and informational space”, an “open society”, a “world market”, but all of these terms are but euphemisms, a smokescreen. Actually, globalisation is about the creation of a world government with a single administration and a single army, common financial structures, laws, and a common culture.

[All of which will be under the control of an "elite class" of leaders--SP addition.]

--------------

 

 

The final notes of a long essay

The new plan was to destabilise the remaining Middle Eastern regimes that were friendly to Russia and China, primarily Libya and Syria. Thus, the US and co launched expensive, highly complex destabilising operations in the countries under the codename of the Arab Spring. Libya, Syria, Yemen, and Iraq were plunged into devastating civil wars with horrendous civilian and military casualties. It seemed that the globalists’ plan had worked. However, the powers that be had not accounted for one small thing: that the world can only take so much hypocrisy before it snaps. The US’ and EU’s actions in the Middle-East had finally shown how untrustworthy and ruthless these globalist pawns were, and the more or less sovereign nations of the world (Russia, China, Iran, Turkey, and several others) began to settle their own affairs. And this is where the eagle started to choke.

It choked on Crimea, which it couldn’t start a war to reclaim. It choked in the South China Sea, as it couldn’t directly assault China and avoid crippling trade damage. It choked on the Philippines, were a president said no to the American fuelled drug wars. It choked on Venezuela, which started to untangle itself from US interests. It choked on Brexit, as it couldn’t stop the UK’s departure from the sinking EU, no matter how many stories of economic and political chaos it threw against the Brits. It choked on Syria, as Russia launched an intervention of its own and crushed ISIS. It choked on Iran, which, when it came under threat of renewed US imperialism, rejected the propaganda package that was the nuclear deal. It choked on the populist movements in Europe, which blamed America for many of the troubles that Europeans are facing today. It choked on North Korea, which decided to make overtures to its long estranged southern brother without US mediation. Lastly, the eagle choked on something else entirely: domestic opposition and a non-globalist leader, despite the insane, multi-billion-dollar efforts of the globalist political establishment, the country’s economic sector, universities, and the media. Although Trump has shown himself to be far weaker on many issues, he remains an important wrench in the gears of globalist planning.

Although the eagle might be choking on the massive bone that is the emergent multipolar world order, it is far from dead. ... The thing about globalists is that they are truly international: no matter where they end up, they always manage to twist the local population to fit their needs, make local inhabitants dance to their tunes. This is the result of their being utterly divorced from all reality, but also from all philosophies and religions. These intellectual chameleons do not care what puppets they control one moment, for they will just as easily change colours and drift over to another group. [He describes Machiavelli's "philosopher elites" who care only about power for its own sake--SP].  This is not to say that they are invincible, far from us. Globalists still remain flesh and blood (at least, for the time being), and everyone can bleed. Everyone can die. Everyone can be conquered. 

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 386
Re: Health care costs are going to sting more

"Health care costs are likely to put more stress on the family budget during the next decade. The amount of money Americans spend on health care is likely to rise by about 5.5% per year for the next several years"

5.5%? more like 25% per year. 

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