Daily Digest

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Daily Digest 10/3 - UK Hooked On Debt, Beef And Poultry Lead Food Price Increases

Tuesday, October 2, 2012, 6:30 PM


Spanish Banks Need More Capital Than Tests Find, Moody’s Says

Spain’s banks face a capital shortfall that could climb to 105 billion euros ($135 billion), almost double the estimate the government provided last week, according to Moody’s Investors Service.

Greece pushes for austerity deal as time runs short

Greece held a new round of talks with foreign lenders to bridge differences over 2 billion euros of disputed austerity cuts yesterday, with time running short to clinch a deal before a key meeting of euro zone ministers next week.

EU nuclear reactors need 10-25 billion euros safety spend

Europe's nuclear reactors need investment of 10-25 billion euros, a draft European Commission report said, following a safety review designed to ensure a disaster like Japan's Fukushima cannot happen.

Iran rial: Mahmoud Ahmadinejad blames slide on 'enemies'

The central bank has placed a $5,000 (£3,100) limit on the amount of foreign currency travellers can take in or out of Iran.

The rial has reportedly lost more than 80% of its value since 2011 because of US-led trade sanctions.
Reports from Tehran suggest the rial plunged 18% in Monday's trading and then another 9% on Tuesday.

Damages (William H. Gross)

What they’re saying is that when it comes to debt and to the prospects for future debt, the U.S. is no “clean dirty shirt.” The U.S., in fact, is a serial offender, an addict whose habit extends beyond weed or cocaine and who frequently pleasures itself with budgetary crystal meth. Uncle Sam’s habit, say these respected agencies, will be a hard (and dangerous) one to break.

UK hooked on debt, PIMCO boss warns

Britain is part of a debtor nation “ring of fire” where bondholders are at risk of being “burned to a crisp”, the head of the worlds biggest bond house has warned.

1 in 3 young workers taking low-skilled job after graduation: Report (Canada)

Canada's youth are facing challenges when it comes to employment, according to a report by the Community Foundations of Canada.

"The linear path from school to career, home ownership and family has disappeared," said Ian Bird, president and CEO ofCommunity Foundations of Canada. "We want communities to recognize that this is 'the new normal.' We need to work with youth to find better ways of preparing and supporting them for a journey that is less certain and more fragmented."
The national quality-of-life report, Canada's Vital Signs 2012 — Vital Youth, pulls together research conducted by many organizations to paint a picture of the economic, educational and societal factors affecting youth as they enter adulthood.

Illinois' state debt climbs to $21,607 per person

Illinois' pension woes have earned it fifth place among states with the highest debt-per-capita, according to a new report.

The liabilities -- mostly pension related -- would cost every person in the state $21,067 to pay it off, says State Budget Solutions, a nonpartisan advocate for budget reform. Only Alaska, New Jersey, Connecticut and New Mexico rank higher in terms of debt-per-capita.
Additionally, Illinois has the fourth-highest debt in the nation, with liabilities totaling $271 billion. Only California, New York and Texas are carrying more debt, according to the report.

More college students defaulting on student loans

Student loan defaults have risen for the sixth straight year, as students from traditional non-profit universities have an increasingly difficult time paying off their college debt.

Numbers released by the Department of Education Friday show that of the 4.1 million borrowers who began making payments in late 2009 and early 2010, 9.1% defaulted within two years, up from 8.8% the year before.

Eurozone Jobless Soars to Record 18.2 Million

The grim 18,196,000 headline jobless figure for August released by Eurostat was the highest since records began in 1995 and equated to a massive jump of 2,144,000 in the last 12 months.

Camden plans council tax hike on empty second homes

A north London council has revealed it plans to charge people 150% council tax for leaving their second homes empty for more than two years.
Labour-run Camden Council said the move would tackle the one in 16 homes left vacant by owners.

Can Riots Be Predicted? Experts Watch Food Prices

High food prices have often been cited as a factor behind mass protest movements. But a group of researchers say food prices can actually be used to predict when social unrest will occur. And according to their mathematical modeling, we've hit the threshold for more waves of riots.

Arla Foods Sees Soaring Egg Prices On The Horizon

Arla Foods Ingredients, a leading developer and supplier of nutritional and functional milk-based ingredients to the global food industry, recently reported that a wave of unprecedented pressure in the world market for eggs has left the North American market facing tightening supplies and rising prices.

Dairy prices expected to rise at the grocery store

Dairy prices are the latest grocery item predicted to skyrocket in the near future.
"It goes back to not only the energy price that were starting to rise, but it's a double hit in that now we have the drought compounding those prices," said John Jenkinson, KSN Ag expert.
The most dramatic rise in food prices will be at the end of the fourth quarter or at the start of the new year. It is expected to be a 15 percent increase.

Beef, poultry lead food-price increases

The index for all food increased 2 percent from August 2011 through August 2012, and ERS projects the index to be up 2.5 to 3.5 percent for the year. During 2011, the index for all foods increased by 3.7 percent.

In contrast, the index for beef and veal increased by 5.8 percent between August 2011 and August 2012. During that same period, steak prices were up 5.4 percent and ground beef prices increased 6.8 percent ERS projects an annual increase of 3.5 to 4.5 percent in the beef and veal index for 2012 and another jump of 4 to 5 percent in 2013.

Deep California Budget Cuts Force Litigants To Pay For Court Reporters

Civil cases could be getting more expensive across the state. Budget cuts are forcing many litigants, including in Santa Clara County, to pay for their own court reporters.

California courts have seen their budgets cut $350 million this fiscal year, resulting in many court reporters being laid off.

Industry seeks 30% increase in homeowners insurance premiums for inland, beaches (N.C.)

N.C. insurance companies are proposing to raise homeowner insurance rates by an average of 30 percent for both beaches and inland areas in New Hanover, Pender and Brunswick counties.

The figures were contained in a filing Tuesday by the N.C. Rate Bureau, an industry organization that serves as insurance companies’ collective bargainer with the N.C. Department of Insurance.
The average statewide increase is 17.7 percent, according to the filing.

AAA: 2012 average gas prices on track to set record high

As of Tuesday, AAA South Dakota said the average price of gasoline in the state is $3.87—nine cents more than the national average.
AAA South Dakota says the national average price of regular gasoline is $3.78, which is three cents less than last week ago but 36 cents more expensive than a year ago.

"Motorists are frustrated because gas prices are still quite a bit more than they were during June and July," said Marilyn Buskohl, AAA South Dakota spokeswoman, said in a news release. "Even with the end of the summer driving season, drivers can't seem to catch a break."

Local Shelter Faces Food Shortage (Lansing)

It's not just homeless people eating there though; it's a type of "new homeless," as City Rescue Mission Communications Manager Laura Grimwood describes it. People who are working but can't afford anything else, or recently lost their home or job. With more and more of them using the services, the food supply is running low, even after generous donations from the community.

"We're at 48 pounds of ground beef left, and so, it looks pretty scarce," Program Coordinator Bryan McGruder said.

D.C. Rakes In $65+ Million On Speed & Red Light Cameras in ’12

By comparison, D.C.’s neighboring counties have not hauled in nearly the windfall. Since 2009, Montgomery County has earned approximately $30 million from camera fines, while Prince George’s County has made a more modest $8 million from the same practice in 2012.

Spokesman for Mayor Gray, Pedro Ribeiro clarifies that the city doesn’t balance its budget on speed cameras.

Japan says too early to decide on fiscal stimulus

Officials have warned Japan's government could grind to a halt if parliament does not pass legislation allowing it to borrow more money.
But Prime Minister Yoshihiko Noda's political opponents are threatening to hold up bills until they have a timetable for a general election.

"It is important to look carefully at the condition of the economy, but it is too early to decide if any new fiscal stimulus is required," Finance Minister Koriki Jojima said on his first full day in the job.

Bernanke Seeks Gains for Equities in Push for Jobs: Economy

Bernanke, setting the stage for a third round of quantitative easing in an Aug. 31 speech in Jackson Hole, Wyoming, said the strategy works in part by boosting the prices of assets such as equities. In a speech yesterday in Indianapolis he said higher stock and home prices would provide further impetus to spending by businesses and households.

“It’s pretty clear that the stock market is the most important transmission mechanism of monetary policy right now,” said Peter Hooper, chief economist at Deutsche Bank AG in New York. “That’s where you’re getting most of the action in terms of lift to the economy. It’s the stock market that’s going to have to be carrying the load.”

Euro-Zone Factory-Price Inflation Accelerates

The prices charged by euro-zone factories for their goods rose sharply in August, mainly due to higher energy costs, a development that could raise concern at the European Central Bank whose governing board meets Thursday to announce its latest decision on interest rates.

Rising factory prices could add to the upward pressure on consumer price inflation, the ECB's targeted measure. An official estimate last week showed annual growth in consumer prices accelerated to 2.7% in September from 2.6% in August, significantly higher than the ECB's target of a little under 2%.

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."


saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4192
saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4192
$155 billion in new debt in 3 busisness days

Treasury Direct link


The Daily History of the Debt Results

Historical returns from 09/26/2012 through 10/02/2012

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )


Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
09/26/2012 11,253,922,532,438.69 4,761,914,765,193.68 16,015,837,297,632.37
09/27/2012 11,255,558,023,360.29 4,759,573,001,202.25 16,015,131,024,562.54
09/28/2012 11,269,585,800,039.32 4,796,655,607,346.57 16,066,241,407,385.89
10/01/2012 11,310,911,679,511.83 4,848,575,333,788.52 16,159,487,013,300.35
10/02/2012 11,311,627,814,953.92 4,859,409,528,454.65 16,171,037,343,408.57


rjs's picture
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
milk prices to rise above $6 per gallon

Milk and Dairy Prices Set to Rise as Farm Bill Expires - The farm bill expired today, reverting some programs back to a 1949 level and totally eliminating others. The other day I looked at the consequences of expiration, and while many elements didn’t have much of an impact until the end of the year, in particular milk and dairy farmers were likely to feel the pinch right away. And Democrats, in blaming the House GOP for not taking up their version of the farm bill, have wasted no time highlighting that. Sen. Charles Schumer says the nation will start to revert to 1940s era agriculture policy if a new Farm Bill isn’t passed soon. The National Milk Producers Federation says government purchases of dairy products under the outdated law could cause milk prices to rise above $6 per gallon. My understanding is that the farm bill that expires in 2012 still covers all crops or commodities planted and harvested in 2012. But dairy farmers have other issues, in particular the loss of the Milk Income Loss Contract Program, which supports them. That will hit farmers in November in their checks from the government. And dairy and livestock farmers already felt the worst effects of the drought, as the price of their feed skyrocketed. Dairy farms are going broke, particularly in California, due to a separate milk pricing issue.

rjs's picture
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
government "debt" is not really debt...
saxplayer00o1 wrote:

Treasury Direct link


The Daily History of the Debt Results

Historical returns from 09/26/2012 through 10/02/2012

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )


referencing the Fed's Z1, Rebecca Wilder shows that households and businesses each have more "debt held by the public" than the federal government: Who has the most debt in the US?

in a follow up, she explains why federal govt debt is not really debt at all: Follow-Up: Who Has the Most Debt in the US? 

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