Daily Digest

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Daily Digest 11/21 - Bitcoin-Rigging Criminal Probe Launched, Who’s Going to Pay for LA’s Pension Plans?

Wednesday, November 21, 2018, 10:04 AM

Economy

Parks chief warns of 'massive cuts, huge layoffs' as soon as 2020 (Chicago)

On top of stubbornly high murder rates and city fiscal woes, Chicago's new mayor will inherit another problem: a Chicago Park District budget that could implode as soon as 2020, due to pension costs.

No more excuses. Fix Pa. pension funds | Editorial

What happens when an alarm goes off and everyone ignores the sound for years? Look to the pension funds for state and school workers of Pennsylvania: The cost for both funds have been of concern for years. Those pension payments have increased from $1.2 billion in 2014 to $3.2 billion just four years later. That's why lawmakers should pay attention to an upcoming report on pension reform.

Who’s Going to Pay for LA’s Unsustainable Pension Plans?

This $1.35 billion contribution is a low-ball estimate because it is based on the overly optimistic target rate of 7.25%. If the target rate is lowered to a more reasonable rate of 6.25%, the unfunded pension liability jumps $6 billion. This would require an additional contribution of at least $500 million, if not more, chewing up close to 30% of General Fund revenues.

ECB Official Warns QE Exit Could Spell Trouble for Italy's Debt

Speaking in Vienna on Tuesday, Governing Council member Ewald Nowotny noted that the central bank, under the ECB’s guidance, is the largest buyer of the country’s debt. He said that raises the question of who will purchase the roughly 275 billion euros ($310 billion) of government securities Italy is expected to issue next year.

U.S. recession chances edge up, risk Fed delivers fewer hikes: Reuters poll

“The economy is facing a growing number of headwinds, including the lagged effects of previous interest rate rises and dollar strength, the uncertainty of trade protectionism at a time when external demand is slowing, and a sense that the support from the fiscal stimulus will gradually fade,” said James Knightley, chief international economist at ING.

BOJ's Kuroda rules out early end of negative rate policy (Japan)

The BOJ introduced negative rates in 2016. It now guides short-term rates at minus 0.1 percent and long-term rates around zero percent to achieve its elusive 2 percent inflation target.

Unthinkable! (GE Christenson)

Hyper-inflation destroys more than savings, businesses, retirements and hope. People abandon morality and look for strong leaders or dictators. Governments adapt to survive. They increase taxes, forfeitures, surveillance and police state tactics. Hyper-inflation has occurred many times in the past hundred years in Europe, Asia, Africa and South America. Hyper-inflation creates ugly consequences for the bottom 99%!

Bitcoin-Rigging Criminal Probe Focused on Tie to Tether (Alex M.)

It couldn’t be determined whether government officials are solely investigating activity that occurred on Bitfinex or if exchange executives are suspected of illegal behavior. Neither the Justice Department nor the CFTC has accused anyone of wrongdoing, and authorities may ultimately conclude that nothing illicit occurred.

NY BitLicense Approval, Blockchain for Energy Commodities, CFTC Enforcement, Advertising Use Cases and More (newsbuoy)

Stablecoins – cryptocurrencies that are designed to remain at the same price – continued to make news this week. Binance, the second-largest crypto exchange in the world by 24-hour trade volume, recently announced that it was listing Circle’s USD-pegged stablecoin, USD Coin (USDC), starting on Nov. 15, 2018. Carbon announced last Friday that its USD-pegged stablecoin, which has been on Ethereum for two months, is the first to operate on the EOS platform. In South Korea, the popular messaging app KakaoTalk has partnered with Terra, a stablecoin project funded by four major crypto exchanges, to create a blockchain-based payment system using Kakao’s blockchain platform Klaytn.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/20/18

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."

1 Comment

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4236
A $9 trillion corporate debt bomb is 'bubbling' in the US econom

A $9 trillion corporate debt bomb is 'bubbling' in the US economy

CNBC-2 hours ago
At first glance, it looks like a $9 trillion time bomb is ready to detonate, a corporate debt load that has escalated thanks to easy borrowing terms and a seemingly ...

Norridge to hike property tax by 35 percent to cover police pension costs

Chicago Tribune-19 hours ago
Unfunded liability represents dollars we expect to be in the pension fund already for the fund members based on funding policy,” stated the report. “To the extent ...

Boston pension liability grows as stock values take a slide

Boston Herald-6 hours ago
Boston's pension obligations have increased, and, as Wall Street suffered ... of the Beacon Hill Institute said if pensions were to become much more unfunded, ...

 

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