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Daily Digest 10/31 - IL Public Pensions Costing Taxpayers, Australian Debt Levels Rated Riskiest In The World

Wednesday, October 31, 2018, 9:17 AM

Economy

More California cops and firefighters are paying for their pensions. Is it too late?

Sacramento, for example, has $908 million in unfunded pension liabilities. Its public safety pension plan has 68.4 percent of the assets it would need to pay the benefits it owes, according to CalPERS.

Reports: Growing number of $100,000-plus public pensions in Illinois cost taxpayers

Illinois has more than $130 billion in unfunded pension debt for its five state-run pension systems. Adding in other post employment benefits, that number climbs to more than $200 billion. Municipal governments in Illinois also are struggling with unfunded pension liability. Some report using most, if not all, of their share of property taxes to pay pension costs.

India considers IL&FS sale among options to end debt crunch -source

The defaults triggered sharp falls in Indian stock and debt markets amid fears about risk in the rest of the country’s financial sector. The Indian government took control of the company and replaced its board with six nominees.

Italy's debt costs rise further at auction

Italy's debt costs rose to their highest level in more than four years at auction on Tuesday, piling pressure on the Rome government after data showed the euro zone's third-largest economy stopped growing in the third quarter.

Australians face $700b wealth wipe-out as debt levels rated riskiest in the world: Morgan Stanley

Australia's predicament is made worse by the need to cut debt occurring during a period of falling house prices and at a time when the household savings rate is a wafer-thin 1 per cent of disposable income.

Treasury Sees 2018 Borrowing Needs Surging to $1.34 Trillion

The U.S. Treasury Department said government borrowing this year will more than double from 2017 to $1.34 trillion as the Trump administration finances a rising budget deficit.

UK budget doesn't alter view of high public debt: Moody's

“Today’s budget confirms our expectation that we won’t see a material reversal in the UK’s high public debt levels for some time and that elevated debt levels will continue to be a credit challenge for the UK for the foreseeable future,” Sarah Carlson, Moody’s lead sovereign analyst for the UK, said in a statement.

Whopping 62 percent of jobs don't support middle-class life after accounting for cost of living (Adam)

The Third Way study more starkly assesses the jobs in each metro area and the opportunities they’re providing to live a good life. By those measures, the study found that Trenton, New Jersey, and Durham, North Carolina, rank highest among the nation’s 204 largest metro areas in share of middle-class or better jobs. Honolulu and Myrtle Beach, South Carolina, on the other hand, are near the bottom.

Debt Alarm Ringing (thc0655)

As noted, debt can be appropriate—even government debt, in some (rare) circumstances. I am glad FDR issued war bonds to help defeat the Nazis, for instance. Now, however, governments go into debt not because they face existential threats, but simply to keep their citizens and benefactors comfortable.

Similarly, central banks enable debt because they think it will generate economic growth. Sometimes it does, too. The problem is they create debt with little regard for how it will be used. That’s how we get artificial booms and subsequent busts.

Treasury Sees 2018 Borrowing Needs Surging to $1.34 Trillion (Adam)

The Treasury is boosting sales of bills, notes and bonds in part to help finance a budget gap that’s widening after President Donald Trump signed $1.5 trillion in tax cuts late last year and the Republican-controlled Congress approved a roughly $300 billion spending increase. Meanwhile, the Federal Reserve is shrinking its balance sheet and choosing not to replace its holdings of some Treasuries as they mature, and an aging population is boosting costs of federal programs such as Medicare.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/30/18

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

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2874
Jewish Voice for Peace and IfNotNow "Anti-Semitic"

White nationalism and Jewish groups JVP and IfNotNow are ‘both sides’ of anti-Semitism, ADL’s Greenblatt said (Mondoweiss)

Quote:

In all his appearances, Greenblatt has emphasized the anti-semitic threat from rightwing nationalists, but he has also quietly cited anti-Zionism as part of the problem, pointing to anti-Semitism on college campuses.

Greenblatt has a history of accusing leftwing critics of Israel of supposed anti-Semitism. Last January, Greenblatt spoke at a forum in Israel and repeatedly lumped leftwing anti-Zionism in with rightwing nationalism as threats to American Jews.

The two currents were rising together, and the Jewish community was divided, Greenblatt argued, about which threat was the real anti-Semitism. And which president was more of a threat to Jewish interests, Obama or Trump.

As you read my transcript of his comments, note that Greenblatt throws his former boss President Obama under the bus, as hostile to Israel. And he characterizes progressive Jewish groups Jewish Voice for Peace and IfNotNow as extreme anti-Semitic organizations.

New Poll Shows Support for Israel Plummeting Among U.S. Liberals, Millennials and Women (Haaretz)

Quote:

A new poll released this week highlights the growing imbalance in U.S. public opinion’s support for Israel and the stark demographic similarities between Israel’s strongest supporters and the profile of the average Donald Trump voter. The poll reveals a generally positive view of Israel, but one that is in constant decline and increasingly split along partisan lines.

Comparisons between the new poll and previous Economist/YouGov polls that posed identical questions also corroborate the notion of steady erosion in the number of Americans who are willing to express strong support for Israel. In 2015, 47 percent of Americans described Israel as “an ally.” In 2017, the number was down to 41 percent. In the most recent poll, the figure is even lower, at 37 percent alone

saxplayer00o1's picture
saxplayer00o1
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Posts: 4225
Yellen says rising deficit is unsustainable: 'If I had a magic w

Yellen says rising deficit is unsustainable: 'If I had a magic wand, I ...

CNBC-17 hours ago
The U.S. fiscal deficit rose to $779 billion in fiscal 2018, up 17 percent from the previous fiscal year. This happened after President Donald Trump signed a bill ...

Italy's central bank chief warns on rising borrowing costs, GDP slowdown

Reuters-1 hour ago
ROME (Reuters) - Bank of Italy Governor Ignazio Visco said on Wednesday that families and firms would suffer if borrowing costs stayed high, and called on the ...

Treasury sets record $83 billion quarterly debt refunding

MarketWatch-2 hours ago
The Treasury Department announced it will sell a record $83 billion in notes and bonds next week at its quarterly refunding auction. This is $5 billion larger than ...

Yields Over 13% and a Boss Chipping in $1 Billion: China Stress ...

Wall Street Journal-3 hours ago
Investors are becoming increasingly nervous about the potential for corporate debt defaults in China, as the country's economic growth slows and credit ...

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2874
Increase Taxes

Quote:

Yellen says rising deficit is unsustainable: 'If I had a magic wand, I ...

CNBC-17 hours ago
The U.S. fiscal deficit rose to $779 billion in fiscal 2018, up 17 percent from the previous fiscal year. This happened after President Donald Trump signed a bill ...
 
So the Fed has spent the past 100+ years looting the American public by almost completely devaluing the currency (stealth taxation), and now that the dollar is worthless/worth less...jack up the tax rates?
 
Does this not seem just a tad bit sociopathic?

 

Snydeman's picture
Snydeman
Status: Platinum Member (Offline)
Joined: Feb 6 2013
Posts: 576
Headlines

Well, all these headlines totally explain why almost every stawk ""market"" is in the green.

 

/boggles

 

Humans.

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 2016
Would they be willing to precipitate atrocity photos-ops?

If the Weapon of Mass Migration is, in fact, a deliberately deployed *weapon* to shift American political power with this caravan the week before an election, as some report, then I can imagine that atrocity photos will be needed to drive the wedge into the divided American publics heart.  To be delivered on TV to every home.

The caravan is pictured in photographs as walking.  But it seems that it is crossing the 1,600 miles between the Guatemala/Mexico boarder and the US quite quickly--at much more than a walking pace.

Several reports of commercial charter busses have emerged.  Who hires these busses?  The answer is the source of the pre-election migrant caravan weapon fired into American politics.  It would be very important to know who did this.

A low key US response would be to keep the migrants arriving at the US border in tents with adequate water and food and let them fester in "red tape" and bordom for a few months until the momentum and enthusiasm wanes and the public attention wanders.  A slow bureaucratic obstruction without drama-- "just following procedure."  This would difuse the migrant weapon.

The worst outcome is to have US military, under official orders from a "racist president," shoot the "innocent," "unarmed," "women and children" migrants who are "just seeking a better life" and have heart wrenching pictures shown in every home.  Public sentiment and voting is pulled by these kinds of photos. I would predict that a couple of these photos would swing the election way to the left.

 

I can imagine, even worse would be, "racist" "hateful," "out-of-control," "redneck" Armed US Citizens shoot the "innocent" new comers.  Look for dead chilren photos for the final tap into he heart of the body politic.

 

Or even better, Antifa could show up to "defend the migrants" ("for love") by shooting the "racist, ignorant, nazi, redneck" Amiercan militia members who would then shoot back.....  (Watch for a group that provides busses to Antifa.)

How many days until the election?

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 453
Re: Yellen Tax Hike

Time2help Wrote:

"So the Fed has spent the past 100+ years looting the American public by almost completely devaluing the currency (stealth taxation), and now that the dollar is worthless/worth less...jack up the tax rates?

Does this not seem just a tad bit sociopathic?"
 
Raising taxes never solves debt problems, usually tax hikes accelerate debt growth as the politicans just spend it all & increase borrowing. Recall that the Spanish Empire (15th & 16th Centuries) had the most gov't revenue in the world, having plundered Latin America, yet defaulted on its debt.
 
Generally gov't with tight budgets have no debt. The US federal gov't does not have a tax revenue problem. It has a huge spending problem. Until it can reduce spending, the debt growth will continue to grow.
 
Yellen also appears to be senile considering Trumps huge tarriff that have increase gov't revenue. For 2018, Tax revenue has increased and it is at an all time high.
 
"Feds Collect Record Individual Income Taxes Through July; Still Run $683.9B Deficit"
https://www.cnsnews.com/news/article/terence-p-jeffrey/feds-collect-record-individual-income-taxes-through-july-still-run
Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 3 2014
Posts: 623
Taxation without representation?

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