Daily Digest

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Daily digest 7/25 - Public Pension Well Running Dry, America’s Middle Class Slowly Being ‘Wiped Out’

Wednesday, July 25, 2018, 10:43 AM

Economy

America’s middle class is slowly being ‘wiped out’

In one of her book’s many striking findings, Quart writes that according to a Pew study, “Before the 2008 crash, only one-quarter of Americans viewed themselves as lower class or lower-middle class. No longer. After the recession of 2008 ...a full 40% of Americans viewed themselves as being at the bottom of the pyramid.”

Public Pension Well Running Dry

In 1940, we had 160 workers for every retiree. In 1950, it dropped to 16.5. In 1960, it was 5. And in 2030, it will be 2.3 workers for every retiree.
The math simply doesn’t work.

Tensions Build as Looming Metro Strike Threatens to Derail D.C.

Employee pay and benefits take up a whopping 71 percent of Metro’s operating budget, and that doesn't include the $2.8 billion in unfunded liabilities for union employees' retirement and health care.

Union retirees fear deep cuts to their pensions

The PBGC is projecting that its insurance program that offers some relief for those covered by insolvent multemployer plans will itself be insolvent by 2024 or 2025. The likelihood the PBGC program for those plans will have enough money after fiscal year 2026 is now less than 1 percent, according to a PBGC report in May.

China's Downgrade-Free Defaults Put Focus on Rating Firms

China's record-pacing defaults this year have exposed more than just which borrowers took on too much debt. It's also putting a spotlight on the nation's sluggish credit raters.

Connecticut is drowning in debt. Should the rest of us have to pay?

In Illinois, vendors wait months to be paid by a state government that is $30 billion in debt and one notch above junk bond status. And in terms of per capita state debt, Connecticut ranks among the worst in the nation, with unfunded liabilities amounting to $22,700 per citizen.

INN investigation: Pension spiking still prevalent despite massive debt (Illinois)

Illinois faces a growing pension problem. It has the worst-funded public sector pensions in the country. Illinois’ five pension systems have combined unfunded liability of more than $130 billion, although Moody’s Investors Service places the total debt at more than $200 billion. TRS alone had an unfunded liability of $73.4 billion at the end of fiscal 2017, according to its website.

Sears retirees ask court for retailer's remaining funds for pension deficit (Canada)

Some 18,000 Sears retirees will receive smaller pension benefits than they earned due to a roughly $260 million shortfall in the plan, according to a motion filed in the Ontario Superior Court of Justice on Friday.
Retirees will receive 30 per cent less than their promised monthly pension benefits beginning August 1, the motions reads.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/24/18

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."

7 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4191
Bernanke, Geithner and Paulson 'have invented alternative histor

(Australia) 'Perfect storm' for major banks as pressure mounts to raise interest rates

ABC News-17 hours ago
... of Japan may be considering ending a decades-long policy of holding interest rates at very low levels, and in some cases employing negative interest rates.

Bernanke, Geithner and Paulson 'have invented alternative history' of ...

MarketWatch-13 minutes ago
People have told a story in which there were these big mistakes made involving the real-estate bubble and too much debt and risky behavior on Wall Street and ...

US 2-year debt cost hits decade high after Trump's remarks

Nasdaq-19 hours ago
The Treasury Department sold $35 billion of two-year government notes at a yield of 2.657 percent, the highest at an auction of this maturity since July 2008, ...

Chicagoans Owe More Public Debt Than New Yorkers

Alton Daily News-5 hours ago
Chicagoans are on the hook for more public debt than residents of any of the ... burden, estimated at anywhere from $140 billion to as much as $250 billion.

 

DennisC's picture
DennisC
Status: Gold Member (Offline)
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Posts: 324
Starting to sound like Greece to me

See second and third paragraphs.  Regarding the first paragraph, perhaps "yet" or "at this time" should go in parentheses at the end.  Quite the coinkydink!  Oh, and favorite oxymoron of the day: "Pension Sustainability Commission".  Do they do this to make us laugh?

Rep. Jonathan Steinberg, D-Westport, chairman of the Pension Sustainability Commission, made clear Wednesday at the group’s introductory meeting that this would not entail proposals to lease or sell state parks or other assets that are amenities or otherwise receive regular use from the general public.

But it could mean assigning other assets — such as annual proceeds from the Connecticut lottery, or unused state land or buildings — to cash-starved pension funds.

By selling, leasing, transferring or even borrowing against these assets, Connecticut could — through a complicated process — slow the growth of pension costs that already consume about 15 percent of the General Fund.

https://ctmirror.org/2018/07/24/panel-seeks-new-ways-slow-skyrocketing-s...

Nate's picture
Nate
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Posts: 599
Chris with Greg Hunter

Futurist and economic researcher Chris Martenson says we are not at the end of a business cycle but “. . . at the end of a credit cycle.” Martenson warns, “Here’s why people need to be concerned. Credit cycles, when they blow up, are really, really destructive. 2008 to 2009 was very destructive. Instead of realizing the error of their ways, they went for a third. This is the most comprehensive credit cycle that we have seen. Remember, bubbles have two things that they need. Number one, a good story that people can believe in and, of course, it’s a false story. Number two, ample credit. That’s what the Fed and central banks of Japan and Europe have done. They just flooded the world with credit. Now, we have bubbles everywhere. When these burst, it will be the worst bursting in anybody’s lifetime because we have never seen anything like this.”

Martenson says a debt reset is locked in, and somebody is going to pay.   Martenson explains, “When you have as much debt that the United States has . . . the overall debt level in the United States, including auto loans, mortgages, consumer debt, student loans and corporate debt and whatever, we’re sitting at about $60 trillion right now. It’s a huge number, and when you get to this level of indebtedness, plus those unfunded or underfunded liabilities . . . when you get to this level of indebtedness, there is really only one question left to be resolved, and that is who is going to eat the losses. That’s it. So, when you start asking that question, the banks and people writing the laws are pretty sure they are not going to take the losses. The person relying on the pension is the person that is going to eat the losses. . . . There is no way to make this work. Here’s where the social tension comes in. Even as ordinary middle class people are being destroyed in this process, the rich are taking more and more out of the system. That is courtesy of the policies of the Federal Reserve. . . . But the big risk is when these printing sprees, these credit cycles finally burst. They are wildly destructive. They are fast. They are hard. They are sharp and they hurt.”

Martenson says people can protect themselves with real assets as opposed to paper assets. Martenson says, “Real assets are the place you need to be if and when a paper tower comes crumbling down. I am diversified myself. I believe in land. I believe in real estate. I believe in gold. I believe in silver. I believe in other metals. I believe in these hard assets because this is where we are going to have to hide out because if you held hard assets in Turkey, in Venezuela, in Argentina and in places where the currency collapsed and declined, these would have been great places to be hiding out. . . . When this worm turns, it’s going to be a lot faster than it has in the past. There is no free lunch, and if you can see that, there is a wealth transfer coming. The wealth transfer is going to have a bright red line, and people are going to get trapped on the side where they hold paper claims, and the people that are going to preserve their wealth are going to be on the other side of the line with their wealth tied up in real things. That’s the period of history that is about to unfold.”

https://usawatchdog.com/when-credit-cycles-blow-up-theyre-really-destructive-chris-martenson/

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2854
Climate

Have always thought this would be one of the later dominoes to fall in this story. Not so sure anymore.

Intro is good, punchline starts off right about 7:00 in.

newsbuoy's picture
newsbuoy
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Joined: Dec 10 2013
Posts: 274
Pension promises from Wal St managers

newsbuoy's picture
newsbuoy
Status: Gold Member (Offline)
Joined: Dec 10 2013
Posts: 274
Nova Pro-Nuke PBS Documentary

According to PBS's Nova program about Earths Hidden Treasures: Energy, Nukes will save us!

LOL

newsbuoy's picture
newsbuoy
Status: Gold Member (Offline)
Joined: Dec 10 2013
Posts: 274
Primate Brains Fried in Oil

Seasoned with poylmyrs followed by Baked Alaska. See? "Be cheerful while you are alive."  -- Ptah-Hotep, 24th Century B.C.

https://guymcpherson.com/climate-chaos/climate-change-summary-and-update/

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