Daily Digest

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Daily Digest 10/2 - U.S. Faces $110B in Unpaid Debt Ceiling Bills, Italian Public Finances Worsen

Wednesday, October 2, 2013, 10:00 AM

Economy

Canada July budget deficit widens on hit to revenues

The federal budget deficit widened to C$1.98 billion ($1.92 billion) in July, compared with a shortfall of C$1.35 billion in July 2012, the Department of Finance said on Friday in a monthly report.

China to be world's top gold buyer this year: experts

Grubb said he remained bullish about the prospects for the gold market, pointing out that lower prices had triggered an increase in consumption from private buyers to record levels.

"There are traders who clearly think that gold will go lower, actually the consumer all around the world disagrees," he said, adding that the US Federal Reserve's reluctance to reduce stimulus could also see "Western demand improving again".

Slovenia Forecasts Deeper 2014 Contraction as Banks Limit Credit

Non-performing loans overdue for 90 days surged to 7.9 billion euros ($10.7 billion) at the end of July, the central bank said in a report today. That accounts for 17 percent of all outstanding loans, it said.

Payday loans being used to feed desperate families, charity says

Borrowers are turning to payday lenders to pay for essentials like food, energy and housing costs, and are being granted loans even when they are not in a position to pay them back, according to research by a debt charity.

Fitch: U.S. debt ceiling in focus after government shutdown

A formal review of the rating with potentially negative implications would be triggered if the US government has not raised the federal debt ceiling in a timely manner prior to when the Treasury will have exhausted extraordinary measures and cash reserves. According to official comments by the US Treasury secretary, extraordinary measures could be exhausted by 17 October.

White House warns of ‘catastrophic’ consequences if debt ceiling hit

If the shutdown continues to Oct. 17th, when the Treasury says the government will run out of money, White House Press Secretary Jay Carney told MSNBC the consequences would be “catastrophic without question.”

Record Latin Default Looms as Batista’s OGX Misses Payment

OGX Petroleo & Gas Participacoes SA (OGXP3) will miss a $45 million payment on dollar bonds today, moving Eike Batista’s oil and natural gas producer to the brink of the biggest corporate default in Latin America.

Two years after bankruptcy, California city again mired in pension debt (Vallejo)

Less than two years after exiting bankruptcy, the city of Vallejo, California, is again facing a budget crisis as soaring pension costs, which were left untouched in the bankruptcy reorganization, eat up an ever-growing share of tax revenues.

U.S. Faces $110B in Unpaid Debt Ceiling Bills

Bloomberg Industries’ Nela Richardson runs down the payments the U.S. government needs to make following the expiration of the debt ceiling, what happens if the nation goes into default and the options the Treasury has available if it needs to decide on which bills to pay. She speaks on Bloomberg Television’s “Market Makers.”

Detroit council frustrated by huge consultants' fees in bankruptcy

City Council members complained Tuesday that they have little information on what services and results are being produced by consulting firms that have cost the city more than $62 million amid bankruptcy proceedings.

New York's Annual Cost Per Inmate Tops $167,000

New York is indeed an expensive place, but experts say that alone doesn't explain a recent report that found the city's annual cost per inmate was $167,731 last year — nearly as much as it costs to pay for four years of tuition at an Ivy League university.

Suspicious Indian Temples Reject Central Bank's Request to Disclose $84bn Gold Stock Details

A number of wealthy Hindu temples in India are resisting the Reserve Bank of India's (RBI) demand to disclose their gold holdings, hindering the central bank's efforts to cut its gold imports that largely contribute to the country's widening current account deficit.

France Moves Deficit Target for 2017 Again

France will trim its deficit to 1.2% of economic output by 2017, falling short of President Francois Hollande's election pledge to balance the public finances by the end of a five-year term in office, according to a document published by the finance ministry.

Italy public finances worsen in September as budget gap widens

Italy posted a state sector budget deficit of 15.5 billion euros in September, widening sharply from a 11.4-billion-euro shortfall in the same month last year, the Treasury said on Tuesday.

USDA (Food stamp data page)

Due to the lapse in federal government funding, this website is not available.
After funding has been restored, please allow some time for this website to
become available again.

For information about available government services, visit usa.gov

Crisis: Greece; 60% of people under 24 are jobless, Eurostat

Greece's rates of unemployment remain the highest in Europe, GreekReporter writes quoting the latest Eurostat figures released today. More precisely, Greece comes first with unemployment at 27.9% followed by Spain with 26.2% and for one more time the figures show that unemployment mainly hits the young under 24 years old.

Italian Jobless Rate Returned to All-Time High in August

Italy’s unemployment rate rose more than forecast in August, returning to an all-time high reached in May as companies remained concerned that the economy may not exit soon from its longest recession since World War II.

Labor Department: No jobless data during shutdown

The U.S. Labor Department's main statistical agency confirmed on Tuesday that it would not release economic reports during a government shutdown.

The Bureau of Labor Statistics, the main data agency of the Department of Labor, said Tuesday that it would not release reports during the shutdown.

Student Loan Default Rates Skyrocket to the Highest Level in 18 Years

The default rate—representing the first three years borrowers are required to shell out payments—rose from 13.4 percent to 14.7 percent. Defaults are now at the highest level since 1995, a sheer sign recent graduates face a financial future both crippling and dim.

The percentage of borrowers who defaulted on their federal student loans within two years of starting repayment also increased for the sixth year in a row, climbing to 10 percent, up from 9.1 percent the year prior.

Bank of Canada lowering forecast

The Bank of Canada signalled today that it’s lowering the forecasts for economic growth in the second half of 2012 and possibly for next year—citing a more prudent consumer and an export sector that has yet to fully recover.

Brazil trims 2013 GDP growth down to 2.5 percent on economic indicators

Brazil's Central Bank on Monday trimmed its 2013 GDP growth forecast for Latin America's leading economy from 2.7 to 2.5 percent.

How to get a thousand-dollar parking ticket

More than 6 million Californians get traffic tickets every year, and the price is shooting up. Running a red light would have cost Neal $103 in 1993; today, it’s almost five times that price. Driving more than 15 miles per hour over the speed limit will earn a $238 fine. And heaven help you if you park in a space reserved for a handicapped driver — that’s a $1,107 ticket.

Gold & Silver

Click to read the Gold & Silver Digest: 10/1/13

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."

5 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
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saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4147
Pimco Total Return Fund has fifth month of outflow

"Pimco's flagship Total Return Fund /quotes/zigman/132344 PTTRX -0.09% saw $5.4 billion in investor withdrawals in September, marking the fifth consecutive month of outflows for the mutual fund, according to data released by Morningstar, Inc. on Wednesday. Year-to-date outflows for the fund have totaled $28.7 billion, or 10.1% of assets under management at the end of 2012, according to Morningstar. Bond mutual funds like the Total Return Fund have suffered in recent months as yields rose on expectations of a shift in Federal Reserve monetary policy. "

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1447
Re: Pimco Total Return Fund has fifth month of outflow

And now that the FED will continue QE3 the money flows back PTRF.

MarkM's picture
MarkM
Status: Platinum Member (Offline)
Joined: Jul 22 2008
Posts: 845
Oathkeepers

I have been supporting Oathkeepers for a couple of years now and I found this weeks homepage to be quite interesting.

http://oathkeepers.org/oath/2013/10/01/oath-keepers-is-going-operational...

Read through the entire copy.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4147
Easing policy could be extended: Fed’s Rosengren

"The Federal Reserve ‘s easy policy stance, including its bond-buying program, could last for “several years” to make sure that the economy is on track for solid growth and moderate inflation, a Fed official said on Wednesday. "

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