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Daily Digest 10/24 - Euro Bailout Faces Court Challenge, Parents Drowning In College Debt

Wednesday, October 24, 2012, 10:36 AM

Economy

Spain's 2012 Social Security to Register Deficit of EUR10.5 Billion

The Spanish public social-security system will register a deficit of 10.5 billion euros ($13.7 billion), or 0.9% of the gross domestic product, in 2012, report Cinco Dias and El Pais in their Tuesday Internet editions, citing a notification from Spain sent to European Union statistics agency Eurostat.
The government presented its 2012 budget in March and said the public social-security system would end the year in balance, the newspapers add.

Australia cuts growth and surplus forecasts

In a midyear economic review, Treasurer Wayne Swan said real GDP growth was forecast at 3 percent this fiscal year — from 3.25 percent predicted in May — while the surplus will shrink to AU$1.1 billion (US$1.13 billion).
“It's pretty obvious to all that ... this mid-year review has been put together amid storm clouds which are hanging over the global economy,” Swan told reporters.

Euro-Area Bailout Fund Faces Challenge at Highest Court

The euro area’s 500 billion-euro ($652 billion) bailout fund faces another test as the European Union’s highest court weighs claims that the firewall violates EU law and should be banned in its current form. A complaint by Thomas Pringle, an independent member of the Irish parliament, today reached the EU Court of Justice, which has the power to topple the European Stability Mechanism, or ESM. A ruling is possible as soon as the end of the year under a fast-track procedure.

Venezuelan liquid reserves drop to USD 1.8 billion

The Central Bank of Venezuela (BCV) monthly balance sheet reveals that by the end of September, liquid reserves dropped to USD 1.8 billion, while in August they amounted to USD 2.1 billion.

France to Back Peugeot With 7 Billion Euros in Credit Guarantees

The French government is preparing to announce that it will provide PSA Peugeot Citroën with credit guarantees worth as much as €7 billion in exchange for sparing some of the 8,000 jobs it was planning to cut, a person with direct knowledge of the matter said Tuesday.

Financial transaction tax will 'raise billions', says EU Commission

The European Commission has backed plans for 10 countries to impose a financial transaction tax (FTT), claiming the controversial levy will “raise billions of euros of much-needed revenue”.

Greek junior gov't partner blocks reforms deal

A junior partner in Greece's governing coalition has refused to lift its opposition to a new package of austerity measures, which bailout creditors have been demanding for months in exchange for more rescue loans.
Fotis Kouvelis, who heads the center-left Democratic Left party, said Tuesday that labor reforms to be included in the austerity package would encourage layoffs and further fuel unemployment, already at a record 25 percent as the country faces a sixth year of recession.

HK acts twice to protect local currency

The authority sold local dollars worth $US603 million ($A586.83 million) on Friday to curb the local unit's rise, which it said had been fuelled by weeks of capital inflows from overseas.
The US Federal Reserve's monetary easing has also weakened the greenback.
Friday's intervention was the first since 2009.

The moves reignited talk of abolishing the local currency's peg to the US dollar, with some leading officials - including the former head of the HKMA Joseph Yam - calling for a review.

Local gold store seeing increased business (Palm Springs)

He says customers tell him they're concerned about the sluggish economy and rather than wait for the outcome of the presidential election, they want to make sure their money is safe.

"You know they're pulling out of their stock markets. They're pulling out of their savings accounts, their 401(k)'s. They don't want it on paper anymore, they want physical," said Baca.

High Fuel Costs Spark Increased Use of Wood for Home Heating (National Geographic)

Many Americans are bracing for high heating bills this year, but the frosty New England winter won't put a chill on Erik Fey and Kathleen Rutty-Fey's energy budget. The Feys are one of many families reducing their costly household oil or gas dependence by turning to a traditional fuel with newfound popularity: wood.

Parents drowning in debt from sending their children to college

What parent doesn't want to be able to send their child to college? It used to be parents would scrimp and save to do so.

Instead parents are now drowning in debt to make it happen. A new study shows one in five households are deep in college debt.

College Students Defaulting On Student Federal Loans

According to the U.S. Department of Education more than 9,500 Minnesota students defaulted on their federal student loans over the past 3 years. Minnesota's default rate may be at nine percent, but that's still significantly lower than the national average at 13.2 percent. Ward says, "My plan is to get a job hopefully using my experience and my degree I plan to have everything paid off in 5 years."

Quantitative easing 'experimental', says top civil servant
(UK)

The Treasury's most senior civil servant has told a committee of MPs that pumping hundreds of billions of pounds worth of cash into the economy as an emergency measure was an "experiment" and the results may not be known for years.
Permanent secretary Sir Nicholas Macpherson told the public accounts committee there was "uncertainty" in Whitehall over whether increasing quantitative easing by £50bn next month to £425bn was the right move.

Richard Bacon, a Conservative member of the committee, said he was "horrified" by Macpherson's assessment of the policy.

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4 Comments

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saxplayer00o1
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saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Greece urged to hire foreign technocrats

Greece urged to hire foreign technocrats

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2840
Fukushima

Any updates on the Fukushima article that was posted in the past few days?  Haven't heard anything from the MSM on a recent explosion, at this point I'm assuming it was a hoax...

AlanDF's picture
AlanDF
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Joined: Dec 14 2009
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