Daily Digest

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Daily Digest 4/10 - Americans Skipping Meds To Save Money, Italians' Spending Power Crumbles

Wednesday, April 10, 2013, 11:14 AM

Economy

Blue Angels Grounded by Budget Cuts for Rest of 2013

Facing major budget cuts in federal spending, the Navy has canceled the remaining 2013 performances of the Blue Angels.

In a statement, the Navy says the famous flight demonstration squadron will continue to train in Pensacola, Fla. but resources will make performance for the rest of the year impossible.

Cyprus Faces Risk of Payments Freeeze, Budget Shortfall Looms

Finance Minister Harris Georgiadis said the eastern Mediterranean island must rush through parliament in coming weeks laws increasing taxes or cutting spending in a bid to seal the EUR10 billion loan deal from euro zone peers and the International Monetary Fund.

"We are currently at a borderline point," he told reporters after addressing a parliamentary economics committee. "We cannot hold on with this situation for much more without the lending agreement."

Arizona gold bill moving forward (News video)

A bill that would make gold and silver legal tender in Arizona has passed both the Arizona Senate and the Arizona House of Representatives.

Five million households in debt to energy firms (UK)

The number of people who owe money to their energy supplier has risen by over one million in a year, with around one in five households now in debt, according to a study.

Ann Robinson, director of consumer policy at uSwitch, said: "The soaring number of households in debt to energy suppliers is a clear indication of the pressure people are coming under just to meet the cost of their basic bills."

Fitch Cuts China Yuan Debt Rating on Local Government Borrowing

Chinese local governments may have had 12.85 trillion yuan ($2 trillion) in debt at the end of last year, or about 25 percent of GDP, up from 23.4 percent at end-2011, Fitch said. Former Finance Minister Xiang Huaicheng said April 6 that the country’s local-government debt may have exceeded 20 trillion yuan, almost double the figure given in a 2011 report by the National Audit Office.

French economy stalls as budget deficit grows

The Bank of France estimated on Tuesday that the economy posted growth of 0.1 percent in the first quarter of 2013, in line with its estimates, meaning that the euro zone's second-largest economy will have narrowly averted recession after its economy contracted by 0.3 percent in the last quarter of 2012.

Stately Detroit Homes Rot As Appraisals Stall Sales

The city now has 8 people per acre, down from 21 per acre in 1950, and 65,000 vacant homes, many slated for eventual demolition. With the city teetering on the brink of bankruptcy after running up a budget deficit of almost $327 million last year and facing $14 billion of long-term obligations, the state appointed Kevyn Orr, a bankruptcy lawyer who helped save carmaker Chrysler Group LLC, as the city’s emergency manager.

US homeless numbers expected to rise as spending cuts deepen

More than 630,000 Americans, equivalent to a city the size of Boston, are homeless, according the latest national estimate.

Federal stimulus funding helped keep the figure flat year-on-year, but the National Alliance to End Homelessness, which published the report, said it expected a steep rise as a result of the current squeeze on government spending and growth in poverty.

Italians' spending power crumbles in recession

National statistics agency Istat released a series of alarming figures about the state of Italy's recession-hit economy on Tuesday, including data that showed Italians' spending power crumbled by almost 5% last year. Istat said households' spending power fell 4.8% in 2012 with respect to 2011, adding that the decline was even worse in the last quarter, when it was down 5.4% on the same period in the previous year.

Bass Says Japan Bondholders’ Reaction to Stimulus Telling

Kyle Bass, whose Dallas-based hedge- fund firm Hayman Advisors LP made $500 million in 2007 betting against U.S. subprime mortgages, said Japanese government bondholders’ recent reaction to the central bank’s unprecedented stimulus is an early sign of a market collapse.

Interest on government student loans set to double this summer

The interest rate on government-subsidized Stafford loans is set to double on July 1 – to 6.8 percent from 3.4 percent – unless Congress acts to stop it. And there’s no guarantee it will.

Christian Walker, an economics and political science major at Northern Arizona University, needs Stafford loans to stay in school next year. He already expects to graduate with $50,000 in debt.

“Raising the interest rate on those loans just compounds the problem and increases the amount of money I’ll have to pay back after I graduate,” he said.

Americans Skipping Prescription Meds To Save Money

The Centers for Disease Control and Prevention, CDC, released a study Tuesday indicating that more Americans cannot afford to pay for all of their prescribed medications, even as they spent $45 billion out-of-pocket for pharmaceuticals in 2011.

Gold & Silver

Click to read the Gold & Silver Digest: 4/9/13

Provided daily by the Peak Prosperity Gold & Silver Group

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