Daily Digest

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Daily Digest 1/30 - USPS Stamp Prices Go Up, Americans’ Surging Contempt for Billionaires

Wednesday, January 30, 2019, 11:50 AM

Economy

Stamp prices go up but USPS is still hemorrhaging massive amounts of money

“In fiscal year 2018 the Postal Service recorded a net loss of $3 9 billion. Revenues continue to be pressured by the ongoing erosion of First-Class Mail volumes,” according to a statement from the USPS. Also contributing to the losses are payments to employees health and pension plans.

Skelton: The LA teachers’ strike the first of many for California

Unfunded pension and healthcare liabilities are steadily draining school district treasuries. There’s a $107-billion hole between pensions promised and money in the pipeline to pay for them. Trying to catch up, the California State Teachers’ Retirement System has ordered the districts to substantially increase their contributions.

America's Largest Cities Are Practically Broke

The 75 most populous cities’ total unfunded debt is approximately $330 billion. Most of this debt comes from unfunded retiree benefit promises, such as retiree healthcare debt and pensions. Unfortunately, one of the ways the cities help make their budgets look balanced is by shortchanging public pension funds.

U.S. Treasury bill issuance plans in focus as debt ceiling looms

A congressional deal was reached last February to increase the debt limit - the amount of debt the federal government can hold at any given time - through March 2019, after which the Treasury will need to adopt extraordinary measures to fund itself until it runs out of cash, which many analysts expect will occur in the late summer, absent a permanent agreement.

Baltimore's debt shakes out to $14K per taxpayer, study finds

According to the report, "Baltimore's financial problems stem mostly from unfunded retirement obligations that have accumulated over many years." For example, the report says the city has promised $7.5 billion in retirement benefits, but has failed to fully fund that amount. There are $1.9 billion in pension and $885 million in retiree health care benefits still unfunded, the report says.

U.S. on track to add $12 trillion to national debt by 2029 unless Washington changes course

The U.S. is likely to add $12 trillion in public debt from 2020 to 2029 through a combination of higher government spending and slower economic growth, according to the Congressional Budget Office. That’s on top of the $16.6 trillion the government is expected to owe to the public at the end of 2019.

China prepares $370bn package to fire up cooling economy

State-owned enterprises, local governments and individuals remain mired deep in debt as a result of the post-crisis stimulus. China's debt-to-GDP ratio surged to 253% last year from 144% in 2007.

Fruit sold in Walmart, Costco and Aldi recalled in multiple states due to listeria concern (Thomas R.)

According to the FDA, the recall was a result of a routine sampling which revealed that products contained the bacteria.

The peaches and nectarines are sold as a bulk retail produce item with a PLU sticker (PLU# 4044, 3035, 4378) showing the country of origin of Chile.

Lessons From the Past (thc0655)

In the United States, as the minimum wage rate specified in the law began to be raised, beginning in the 1950s, so as to catch up with inflation and then keep up with inflation, the minimum wage law became effective in practice once again -- and a racial gap in unemployment rates opened up and expanded.

As a black teenager, I was lucky enough to be looking for jobs when the minimum wage law was rendered ineffective by inflation. I was also lucky enough to have gone through New York schools at a time when they still had high educational standards.

Americans’ Surging Contempt for Billionaires (Afridev)

Consequently, did Tucker Carlson, in his January 2nd commentary, open the way, finally, toward a New America emerging — a compassionate country, which blames no masses (such as ‘the failures’, or ‘the poor’, or ‘the Hispanics’, or ‘the Blacks’ — or any foreign country — not Russia, and not Iran, and not China, not any at all) for America’s decline, but which instead blames America’s billionaires — the people who actually control America — for the serious problems in America?

Who Wins and Who Loses From PG&E’s Bankruptcy (Thomas R.)

That fundamental disagreement about the company’s financial health is one of the main reasons the utility’s bankruptcy case could drag on for months. The filing will create uncertainty for the company’s creditors and people who have lost homes and loved ones to fires that were started by PG&E’s equipment and are seeking compensation from the company. The case could also cost the company hundreds of millions of dollars in fees, to Wall Street and white-shoe law firms.

Game retailer GameStop says it can’t sell itself, sees stock dive 27% (Thomas R.)

The gaming retailer, which emerged from the squished-together remains of Babbage's, Software Etc., and FuncoLand in 2000, became a publicly traded company two years later. When it swallowed up EB Games in 2005, GameStop become arguably the biggest gaming retailer in the world. In the years since, the company has been bullish about creative solutions to plummeting used-game sales, mostly in the form of retail-chain acquisitions. But one of its biggest attempts—becoming its own game publisher—has fizzled with the low-performing likes of Has-Been Heroes and Song of the Deep.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/29/19

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

Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 4 2014
Posts: 694
$12 Trillion more; robbing Peter to pay Paul?

Amidst the government shut downs and a slowing economy, I'm curious how long it can continue to quell the obvious shortfalls it plans to create through their "bread and circus" policies. Perhaps the food banks should become government agencies. It would be a SNAP to implement!

https://www.statista.com/statistics/223066/percentage-of-us-state-population-receiving-snap-benefits/

Nate's picture
Nate
Status: Platinum Member (Offline)
Joined: May 6 2009
Posts: 624
Chris podcast with Greg Hunter

Futurist and economic researcher Chris Martenson says a collapse is “a process, not an event.” Martenson contends the long awaited global collapse, on many fronts, has not only started, but is picking up speed. Martenson says, “Our prediction at PeakProsperity.com is these collapse trends, we have been following for 10 years now, are accelerating and continuing. None of them are reversing at this point in time. These will impact people’s future in a huge way. Environmentally, we see these signs, but we also have $245 trillion of debt in the global economy. We have been accelerating that debt cycle as if we could just keep that trend going forever—we can’t. So, what we see are all these unsustainable trends converging. They are going to happen . . . and people need to be ready.”

Martenson lays out the case to blame central banks for much of the geopolitical and economic friction in the world today. Martenson says, “The economic pie is not expanding anymore. It’s kind of stagnant. So, if you have one tiny group taking their fair share and the pie isn’t growing, it means they are taking from somebody else. This is the essence of central banking. They don’t create wealth, they redistribute wealth. When the Federal Reserve crams rates to zero, the savers lose out, but lose to who? The winners and losers are being picked by the central banks, and they have decided that the .01% should be the winners in this story and everybody else should be the losers. . . . Central bank policies have really benefited the elites at the expense of everybody else. This brings up the most important point and that is central banks are not our friends. They are redistributive organizations.”

Martenson also says, “Our view is if we get into a war that it will be so devastating, there really won’t be a recovery from it.” As for the elite, Martenson says, “It’s time to panic. . . . They have thrown in the towel, they have caved and are ready to go back to the print-a-thon thing. That is concerning because the financial world can’t even manage stopping their bond purchases, let alone reversing them without them panicking . . . . When a central bank can’t even flatten out their balance sheet purchases, you should be panicking.”

Central banks cannot stop the money printing without the whole system blowing up. Maybe that is why gold is going up? Martenson says, “I believe it is. . . . I buy gold because gold is the only form of money that is not simultaneously someone else’s liability. We are talking about a world so saddled with debt, I am not sure where all the liabilities lie. I don’t trust . . . the accounting of major corporations. I don’t trust what derivatives will do in a crisis. . . . This is the ‘Everything Bubble.’ What happens when it bursts? We don’t know. So, gold, to me, is the thing I want to own and hold when you have a systemic crisis.”

https://usawatchdog.com/global-collapse-accelerating-buy-gold-now-chris-martenson/

 

 

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