Daily Digest

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Daily Digest 6/27 - Economic Cycles Point Downward, The New Indian Middle Class

Thursday, June 27, 2013, 10:43 AM

Economy

Death By Leverage (Ilene)

“The U.S. national debt comes out to about $16 trillion today [Nov., 2012]. That’s something. But it’s nothing compared to the extra $87 trillion in unfunded liabilities to Social Security, Medicare, and federal pensions. Here’s how that works. If you add up all of the U.S. government’s promises to pay retirement and health care benefits for the next 75 years and subtract the projected tax revenue dedicated to those programs over the next 75 years, there is a gap. A $87 trillion gap — in addition to a $16 billion hole.

Portugal Posts Wider Budget Budget Deficit as Spending Increases

The deficit of the central administration and social security agency was 1.91 billion euros ($2.5 billion) compared with a deficit of 1.72 billion euros in the same period of 2012, the Finance Ministry’s budget office said in a report on its website.

$1.2 Million Disappears From a Passenger-Jet Shipment of U.S. Currency (VeganD)

The last time the money was seen was before it was loaded onto the plane in Zurich, according to a law enforcement official who insisted on anonymity because the investigation was continuing.

The cash that was stolen — 12 packets of $100 bills, each totaling $100,000 — had been placed in a secure container that was then placed inside a larger container, the official said.

Going Dark! Economic Cycles Point Downward. (GE Christenson)

The remainder of this decade is likely to be quite problematic for most of the world’s population, particularly the poor. People who have the majority of their assets in stocks, bonds, and paper debt may also be hurt as the currencies are inflated and purchasing power declines sharply.

Remembering Piper: The Night That Changed Our World (ScubaRoo)

The legacy of Piper Alpha affects every offshore worker even today. By screening this short film to potentially the entire offshore workforce, we are attempting to reach a very wide audience in a way that has never been done before. The purpose of doing this is to remind people that Piper Alpha isn't just history and we still have to guard against complacency. The same hazards and the same challenges that existed back then still exist today and how we manage them -- through strong leadership and engaging the workforce in safety -- is crucial in preventing a repeat of that tragedy"

European Council Meeting: Are Young People as Important as the Banks? (westcoastjan)

In the EU budget for 2014-2020, EUR 6 billion will be earmarked for action to combat youth unemployment. This is a positive sign, but, in practice, how much can be achieved with 6 billion spread out over seven years and 27 countries? Very little. So the European Parliament is proposing that the money should be front-loaded (i.e. brought to bear at the start of the period) so that it will have an immediate effect, following which additional funding could be provided if and when necessary.

Trans-Pacific Partnership: 11 Things Harper Doesn't Want To Reveal About Uber-Secretive Trade Pact (westcoastjan)

The most recent round of talks on this trade deal took place in Vancouver last week, and was met with some minor protests. But, again, you might not know it, from all the attention it’s been getting.

Gold Has Had 34% Correction (Thomas C.)

I do think that such corrections represent 'asset stripping' by powerful and lightly regulated insiders and traders who have a free hand to obtain assets on the cheap after manipulating prices lower, and then allowing them to rise again. But who can say, except for someone like a regulator with access to the relevant information.

I do think that a turn, if it occurs, will coincide with the end of quarter mark to market. Perhaps that is too cynical. It is hard to imagine that one can be cynical enough after the serial frauds in market rigging we have seen in the past fifteen years.

The SINGLE Most Important Step to Protect Yourself from Government Spying (Arthur Robey)

“The FBI can access cell phones and modify them remotely without ever having to physically handle them,” James Atkinson, a counterintelligence security consultant, told ABC News. “Any recently manufactured cell phone has a built-in tracking device, which can allow eavesdroppers to pinpoint someone’s location to within just a few feet,” he added.

Detroit EM's office: Police association, AFSCME contracts ending (Phil H.)

Young estimates that between 70 and 80 members have retired since March, driven out of the department over fear that the emergency manager will dismantle their pensions. He expects those numbers will only accelerate following news of the expiring contract.

About 200 of the association’s 467 members have had at least 25 years on the job and would be eligible for retirement.

Susan Tompor: Pension safety net won't help City of Detroit retirees (Phil H.)

Sad to say, the PBGC is nearly as well known as the EPA in many Michigan households after many companies over the years ran into the financial skids and turned pension obligations over to the PBGC.

Private company pensions can be protected up to certain limits by the PBGC.

The New Middle Class (westcoastjan)

By 2027, India is projected to have the biggest middle class population in the world. In a society fragmented by caste, there has been much debate about whether recent economic growth has reached the country's most disadvantaged groups.

Toronto to become a yuan trading hub? (westcoastjan)

As it stands, the major centres outside Mainland China where the currency is traded include Hong Kong, Singapore, London and Taiwan, with Hong Kong holding the biggest market share.

Average 30-year mortgage rate up to 4.46% (Thetallestmanonearth)

A buyer taking out a $200,000 mortgage at a 3.35% rate would pay $881 a month, according to Bankrate.com. The monthly mortgage payment jumps to $1,008 a month at a rate of 4.46%. That's an increase of $127 a month, which over 30 years adds $45,720 to the cost of the loan. The figures don't include taxes and insurance.

Patrick Newport, an economist at IHS Global Insight, doesn't see the rise in mortgage rates dampening the housing market over the long term.

You have no idea how much we rely on honeybees and how much their collapse could cost us (westcoastjan)

Over the last six years, American beekeepers have lost 30% of their hives each winter on average. More specifically, 10 million beehives have been lost at a cost of $200 a hive since 2006, according to the latest report on honeybee health from the United States Department of Agriculture (USDA) and the Environmental Protection Agency. The cost to replace all of those dead hives — a total of $2 billion — falls on the beekeepers.

Gold & Silver

Click to read the Gold & Silver Digest: 6/26/13

Provided daily by the Peak Prosperity Gold & Silver Group

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saxplayer00o1
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saxplayer00o1
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