Daily Digest

Image by reynermedia, Flickr Creative Commons

Daily Digest 8/15 - Turkey Default Wagers Soar, U.S. Household Debt Rises To $13.3T

Wednesday, August 15, 2018, 8:14 AM

Economy

Turkey Default Wagers Soar to Highest Since 2008 Crisis

Turkish credit risk climbed to the highest since the 2008 global financial crisis as President Recep Tayyip Erdogan lashed out at the U.S.

Indonesia slaps tariffs on consumer goods to curb imports as rupiah slides

After plunging by more than 1 percent on Monday, the rupiah on Tuesday hit its weakest level since October 2015, at 14,630 a dollar, before recovering slightly.

U.S. household debt rises to $13.3 trln in Q2

The level of U.S. consumer debt was $618 billion higher than the previous peak of $12.68 trillion in the third quarter of 2008. It was 19.2 percent above a post global credit crisis low set in the second quarter of 2013, the New York Fed said.

IRS seeking nearly $500B in back taxes

The IRS says so far, it's in the process of sending more than 360,000 names of individuals who owe $51,000 or more in delinquent taxes. The program, part of the Fixing America's Surface Transportation Act from 2015, requires the State Department to deny new or renewal passport applications, and in some cases, revoke current passports.

More than 1 million people default on their student loans each year

Outstanding education debt in the U.S. has tripled over the last decade and now exceeds $1.5 trillion, posing a greater burden to Americans than auto or credit card debt.
For many, the payments are proving unmanageable. By 2023, nearly 40 percent of borrowers are expected to default on their student loans.

Indian rupee falls to all-time low against dollar

The Indian rupee fell to an all-time low Tuesday against the U.S. dollar amid worries that Turkey's growing financial crisis could spread to other developing-world economies.

Italy's League sees euro collapse without ECB bond guarantee

The extra yield that investors demand for holding Italian bonds over top-rated German ones rose to its highest since late May earlier on Monday, briefly rising above 280 basis points before easing back to around 275.

Argentina peso falls to record low on Cristina Fernandez corruption scandal

Argentina's currency has lost almost as much as Turkey's, with its peso down 37.8 against the greenback in 2018. The government has cut its full-year 2018 economic growth forecast to zero from 0.5 per cent, treasury ministry official Guido Sandleris told reporters on Monday.

Nebraska Set to Use Drug Cocktail That Includes Fentanyl in Execution Tuesday (Thomas R.)

Nebraska on Tuesday morning is scheduled to carry out the state’s first lethal injection and the first execution in more than 20 years, deploying an untested, four-drug cocktail that includes the powerful synthetic opioid, fentanyl.

FDA expands recall of blood pressure drugs over cancer-causing risks (Thomas R.)

"Camber Pharmaceuticals is recalling certain valsartan tablets because they contain the impurity N-nitrosodimethylamine in the active pharmaceutical ingredient (API)," the FDA reports. "Test results from Hetero Labs show the amount of NDMA found in its valsartan API exceeds acceptable levels; although it is generally lower than the amount discovered in the API manufactured by Zhejiang.

The FDA Has Cleared Its First Digital Birth Control App (Thomas R.)

The process of ovulation, when a women’s egg becomes ready to be fertilized, causes a women’s average body temperature to rise less than one degree. So in order for the app to calculate a women’s likelihood of being fertile, users need to input readings from a digital thermometer that measure temperature past the two digits after the decimal.

Caught In The Crossfire: The Unintended Victim Of Iran Sanctions (Michael S.)

India announced back in July that it would halt purchases of Iranian oil and gas in November. However, on Tuesday, Bloomberg reported that India was preparing to cut its imports of Iranian oil by half, in order to earn a waiver from U.S. sanctions. India plans to argue that it can’t obtain energy products from any other producer at competitive rates.

The Sleepwalkers (James W.)

The media, with the odd exception, have failed to “connect the dots” on these interconnected crises, which can be summarised as the rising tide of system failures and collapses caused by the bigger forces of the inexorable decline in the supply of readily available fossil fuels and the global impact caused by climate change.

Fox With Virus that Can Kill Humans, Pets Found in Hudson Valley (Thomas R.)

Everyone should use caution while approaching any wild animal, particularly any animal, wild or domestic, which exhibits signs of being ill. Some signs are a tame or dazed look, excessive drooling or foaming of the mouth, difficulty swallowing, dragging hind legs and mobility problems.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/14/18

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."

3 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4223
Older Americans are filing for bankruptcy more than ever before

Older Americans are filing for bankruptcy more than ever before

KREM.com-2 hours ago
... social problem that has been getting worse for more than two decades as debt and medical costs go up, and seniors' savings and pension benefits go down.

 

Nate's picture
Nate
Status: Platinum Member (Offline)
Joined: May 5 2009
Posts: 604
Rubino podcast

 

Financial writer John Rubino says the currency crisis happening in Turkey is a stark reason for owning something a government can’t print more of at will. Rubino points out, “The function of gold and silver is to protect you against government mismanagement of your currency.   The emerging market countries (including Turkey) have screwed up their money. They borrowed a lot of U.S. dollars at low interest rates when the dollar was falling. They expected the dollar to keep falling and pay back their loans in ever cheaper dollars, but the dollar went the other way. So, now their loans are unpayable. Their currencies are blowing up, and you are seeing gold and silver rise in local currency terms. In other words, precious metals are protecting the citizens of those countries against financial mismanagement.”

Rubino warns, “The crisis eventually works its way all the way to the middle, which is what happened after the housing bubble burst in 2007. It was just sub-prime mortgagees to begin with, which was not really a big deal, but eventually it became a near death experience for the entire global banking system. Since that time, instead of getting our financial houses in order around the world, we basically kept on borrowing money. Now, we have almost twice as much debt globally as we had in that debt driven global financial crisis. So, you can expect the next one . . . to be bigger, scarier and more dangerous. There are a lot of reasons to believe we are getting close, and one of those reasons is the emerging markets are starting to blow up.”

Rubino also points out, “The “Crack-Up Boom” is the point at which everybody figures out it is the explicit policy of their government to make their currency worth less year after year after year, and they don’t want to hold the currency anymore. So, as soon as they get paid, they turn that money into real stuff. You see the price of real things spike because everybody is buying real stuff at whatever price they have to pay. That manifests as accelerating inflation, but it is really a loss of faith in the currency. I think that is the end game of this system. The central banks are bailing out so many different players with so much new currency that people figure out that is a bad deal for the holders of that currency. They start front-running the process, and the system breaks down. This could be the time that it happens because the amount of debt that would have to be bailed out by the central banks is immense. It was much bigger than the bailouts . . . in 2008, and that was multi-trillions of dollars. . . . The numbers could be so immense this time people might see it for what it is. People will figure it out, and that is the systematic destruction of these fiat currencies, and then all hell breaks loose.”

According to Rubino, the long predicted so-called “debt reset” is getting much closer. How’s that going to work? Rubino explains, “It’s not clear that a currency reset (devaluation) will work unless it is coordinated. It’s not just the U.S. It could also be the European Central Bank, Bank of Japan and The Peoples Bank of China all making the announcement about their currency at the same time. If that happened, it would be really disruptive for a short time, but we would come out of it in reasonably good shape. That’s what we should be hoping for because there is no pain free option when you borrow too much money.”

https://usawatchdog.com/scarier-more-dangerous-market-crisis-blowing-up-...

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1698
Our debt-drunk system...

... is staggering on the edge of disaster. Will the Turkish crisis be the spark that lights the whole thing on fire and burns it to the ground? Who knows, but we can be sure that disaster is unavoidable.

 

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