Daily Digest

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Daily Digest 2/24 - 1 In 5 Americans Have More CC Debt Than Savings, California’s Recurring Nightmare

Saturday, February 24, 2018, 2:16 PM

Economy

1 in 5 Americans have more credit-card debt than savings (Adam)

Consumers trying to build an emergency fund should set up an automatic savings plan, he said. That will put a certain percentage of their paycheck into a savings account. After determining the amount they can put in that fund for each paycheck, they can then pay debt with whatever funds they can spare in their budget.

Silver: 2018 and Beyond (GE Christenson)

Governments and central banks inevitably inflate the supply of currency units (devaluation) more rapidly than the underlying economy grows. They add to the unpayable debt load, pretend $230 trillion in global debt is normal, reduce the value of existing dollars, (euros, yen, pounds) as they create more currency units, and support the narrative that “all is well.”

Four Ex-Deutsche Bank Traders Evade U.K. Euribor Case (Adam)

The SFO obtained European arrest warrants in March 2016 against five of the men who didn’t appear at a London court to face the charges. The German prosecutors made a final decision on three of the traders this week, but had previously ruled out extraditing the fourth man last year.

The SFO declined to comment Friday.

Me, rich? Here’s what Palo Altans think about themselves (Adam)

“Income alone does not determine who is in the middle,” the Weekly points out. “Palo Alto residents say educational attainment, culture and spending choices, for example, also factor into the self-identification. One respondent with a household income between $250,000 and $300,000 for a family of four wrote that his family is upper-middle class because they don’t spend more than $500 in a single purchase — except for four weeks of travel each year, housing, their children’s activities and $1,700 each month on farmers market food.”

Venezuela's New Cryptocurrency: Just Another Form of Control Fraud (pinecarr)

For context, here is a chart of the black market (i.e. real-world) value of the Venezuela's fiat currency, the bolivar: a 100,000 bolivar note is worth somewhere around 40 cents USD (US dollar), i.e. near zero. (Venezuela maintains a fantasy-official USD/bolivar exchange rate that has no relation to the actual purchasing-power value of Venezuela's fiat currency.)

What's Actually Behind Cape Town's Water Crisis (blackeagle)

Today, Cape Town faces two catastrophic, extinction-level botherations. First, the rains that once fell so reliably during the winter months have tailed off. For the past three years, they have barely fallen at all—a phenomenon one meteorologist calls a once-in-628-years weather event. Second, Cape Town is one of the more unequal cities on earth, with the wealthy, mostly white, population living in toney coastal and inland suburbs, and the poor, mostly black, inhabitants shunted onto the flatlands, an hours-long commute from the city’s economic hub.

California’s Recurring Nightmare: Nearly Half the State is Back in Drought (Adam)

The stage is certainly being set for some sort of drought. This week as the State Water Resources Control Board considered permanent statewide restrictions on a list of wasteful water uses, members were told that, measured by a key collection of gauges in the northern Sierra Nevada, the December-through-February period has been California’s third driest on record (exceeded only by 1977 and 1991, when a “March Miracle” saved the wet season). In the central Sierra, this December through February was measured as the driest on record.

If Climage Change Wrecks Your City, Can It Sue Exxon? (blackeagle)

There are several reasons why this wave of litigation is happening now. Frustration with the Trump administration’s opposition to climate action has led states and cities to take matters into their own hands. Recent floods, storms, and fires have also created a sense of urgency. Because of climate change, such events will only get more severe, and if cities are going to be prepared, they need to begin the expensive process of adapting their infrastructure now.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/23/18

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."

2 Comments

DennisC's picture
DennisC
Status: Gold Member (Offline)
Joined: Mar 19 2011
Posts: 300
CalPERS Is Near Insolvency; It Needs A Bailout Soon

As Walters suggests, one way out would be to modify benefits in some way.

City officials, for instance, have suggested reducing automatic cost-of-living escalators in pensions over a certain mark, such as $100,000 a year.

However, the CalPERS board, dominated by public employee organizations and sympathetic politicians, has spurned such pleas: it is almost as if, once promised generous retirement benefits, public workers would rather take the entire system down, than see their own pensions reduced, even modestly.

“Our members have expressed frustration that you keep coming to them asking for more while at the same time not providing a lot of other options and assistance for them,” Dillon Gibbons of the California Special Districts Association told the board.

Alas, the options boild down to either taxpayers get the shaft, or public employees see their pensions reduced.

In the end, it will likely be the worst of both worlds, as taxpayers are dragged in to bailout CalPERS and other retirement funds, while retirees see huge cuts to their benefits. 

And the next market crash will likely catalyze it.

https://www.zerohedge.com/news/2018-02-24/former-calpers-board-members-s...

Time to get serious.  Perhaps, H.R. 4444 (Rehabilitation for Multiemployer Pensions Act) will finally get some traction in Congress.  We can only hope, so at least the other 49 states (or is it 52) can get in on the action to save us from ourselves.  Of the 148 cosponsors of the bill, 25 are from CA.  Good odds that this is gonna fly...just my worthless opinion, of course.  Get ready to "reinvest" your new found tax cut in pension obligation bonds.

Oh, this just in too:

https://www.zerohedge.com/news/2018-02-25/california-democrats-refuse-en...

My love was true
Still you threw it all away
But now you’re like the rest
Unworthy of my best
Hasta la vista, baby

- Jody Watley

 

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4118
'Migrate or die': Venezuelans flood into Colombia despite crackd

'Migrate or die': Venezuelans flood into Colombia despite crackdown

Reuters-59 minutes ago
MAICAO/CUCUTA, Colombia (Reuters) - The desert wind whipping their faces, hundreds of Venezuelan migrants lugging heavy suitcases and overstuffed backpacks trudge along the road to the Colombian border town of Maicao beneath the blazing sun.

Problem with rising rates: Corporate America has binged on debt

CNNMoney-2 hours ago
"As earnings decline in a downturn, the new tax rules will exacerbate any reduction in cash flow and could lead to a higher default rate," Moody's wrote in a recent report. The credit ratings firm estimates that high-leverage companies have $424 billion of debt coming due between 2018 and 2022. "The torrid pace of new ...

Alaska Legislature considers borrowing $1B to pay oil debt

San Francisco Chronicle-6 hours ago
JUNEAU, Alaska (AP) — The Alaska Legislature is considering a proposal to borrow up to $1 billion from global markets to cover a debt it owes to oil and gas companies. The Juneau Empire ... The state promised billions of dollars in tax credits to smaller oil and gas companies between 2003 and 2017. But when petroleum ...

New York's ticking pension bomb

New York Post-11 hours ago
Add in rising life expectancies and much higher base pay, and the pension costs to taxpayers continue to mushroom by billions of dollars — a spiral that has pensions consuming ever-larger shares of state and local budgets. The latest revision, Tier 6, gives non-union employees earning above $75,000 a year the option of ...

 

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