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Daily Digest 10/16 - U.S. AAA Rating On Watch, Debt Ceiling FAQs

Wednesday, October 16, 2013, 8:22 AM

Economy

Bodies Double as Cash Machines With U.S. Income Lagging

The mother of two posted pictures of her 18-inch auburn mane on http://www.buyandsellhair.com/, asking at least $1,000 and receiving responses within hours. Hare, who also considered selling her breast milk, joins others exploring unconventional ways to make ends meet as the four-year-old economic expansion struggles to invigorate the labor market and stimulate incomes.

Officials to demolish 1,600 vacant homes in Flint

The Flint-area “blight blitz” will raze about 25 percent of the city's 5,600 abandoned homes. Demolitions will take place in batches of 50 to 100 houses.

Fewer snowplows on King County roads this winter (Washington)

King County has 100 drivers and equipment operators available, down from 171 in 2009, and Bauer said that is due to revenue. In particular, the maintenance crew staffing levels are down by between 40 and 50 percent.
Only 253,000 of the county's 1.98 million people live in unincorporated areas. Bauer said those people can expect to be without utilities for longer periods of time.

Bailed-out Portugal to make new cuts in 2014 budget

Bailed-out Portugal will put forward new spending cuts demanded by its creditors in a draft budget for 2014 on Tuesday which risks deepening discontent over austerity measures.

U.S. has defaulted twice, historians point out

Once, the young nation had a dramatic excuse: The Treasury was empty, the White House and Capitol were charred ruins, and even the troops fighting the War of 1812 weren't getting paid.
A second time, in 1979, was a back-office glitch that ended up costing taxpayers billions of dollars. The Treasury Department blamed the mishap on a crush of paperwork partly caused by lawmakers who — this will sound familiar — bickered too long before raising the nation's debt limit.

Record Number Of Oklahomans On Food Stamps

Approximately 637,434 Oklahomans received SNAP benefits in September, which is nearly 8,500 more than the previous record set in August.
That means 16.7% of Oklahomans are on food stamps – 1 out of every 6 people.

State sees record number of homeless families sheltered in hotels (Massachusetts)

At a forum in Boston last week, Undersecretary of Housing and Community Development Aaron Gornstein discussed a "huge increase in homelessness" among Massachusetts families that spiked over the summer as the number of families being sheltered in hotels and motels jumped from 1,230 in April to 1,710 in August.
"We're really working every day to try and reduce the numbers of families in the motels, but it's become very difficult over the summer.

Gold premiums hit record in India

Gold premiums in India, the world's biggest buyer of the precious metal, hit a record $100 an ounce, about 8 per cent over London prices, on a shortage of supplies to meet festival demand, traders said on Tuesday.

Poll: Half of older workers delay retirement plans

Some 82 percent of workers 50 and older say it is at least somewhat likely they will work for pay in retirement. And 47 percent of them now expect to retire later than they previously thought — on average nearly three years beyond their estimate when they were 40. Men, racial minorities, parents of minor children, those earning less than $50,000 a year and those without health insurance were more likely to put off their plans.

Red-light cameras generate revenue, controversy (Florida)

Florida drivers who were caught by red-light cameras paid more than $100 million in traffic fines last year. But whether the cameras made Florida's roads safer — or just swelled state and city coffers — is an open question.

Venezuela Inflation Rises above 49%

Venezuela's Central Bank reported the latest inflation figures that reveal the official rate of inflation is 49.4%.
Monthly inflation for September rose to 4.4% meaning that the accumulated rate of inflation for just the 9 months since January 1 is 38.7%.

Frequently asked questions on what happens on Oct. 17 if Congress doesn’t lift the debt ceiling

The clock is clicking toward the Oct. 17 deadline at which point the Treasury Department says the debt ceiling will be reached. Here’s a few answers to frequently asked questions.

Bad loans at Italy's banks rose to almost 142 bln euros in August

Bad loans at Italian banks rose again in August, nearing 142 billion euros, data showed on Tuesday, as the country's lenders continued to suffer from the fallout of Italy's longest recession since World War II.

Fitch: U.S. AAA rating on watch over debt debate

Fitch Ratings put its AAA credit rating of the U.S. on negative watch Tuesday, citing the prolonged congressional negotiations over a hike to the borrowing limit. The U.S. is set to hit its debt ceiling on Thursday without a deal to increase its ability to borrow. "The prolonged negotiations over raising the debt ceiling (following the episode in August 2011) risks undermining confidence in the role of the U.S.dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S," the agency said in a statement. Senate Majority Leader Harry Reid had warned that a rating downgrade could come as soon as Tuesday.

Gold & Silver

Click to read the Gold & Silver Digest: 10/15/13

Provided daily by the Peak Prosperity Gold & Silver Group

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7 Comments

Denny Johnson's picture
Denny Johnson
Status: Gold Member (Offline)
Joined: Aug 13 2008
Posts: 348
HiddenSecretsOfMoney

Looks like Episode 4 of Mike Maloney's video series came out yesterday.

http://hiddensecretsofmoney.com/videos/episode-4

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
Thetallestmanonearth's picture
Thetallestmanonearth
Status: Gold Member (Offline)
Joined: Feb 28 2013
Posts: 323
Mike Maloney

I wish Mike Maloney would drop the greased up sales-man-like presentation with dramatic music and flashy graphics.  I very much appreciate the concise way that he presents critical information, but I'm already sold.  I worry that anyone who hasn't yet figured out our system is rigged would respond guardedly to his videos because it feels like he's trying to sell you something the whole time which reduces credibility. I think he would be better served posting a couple of poorly taped lectures held at a community college somewhere backed up by some power point slides.  After a lifetime spent getting fleeced by the banks, the last thing people want is financial advise from someone better dressed then them.

Otherwise, great video for the already convinced.  I really enjoyed it!

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
A Perversion Worthy of Satan.

 The delivery is slick but that is because it has to expose a very dry topic palatably.

However I do not think that any monetary system will solve Real World exponential growth problems. That is because "money" is a model of the economy. It is a Left Brain representation of the Real world. It cannot be emphasised enough that the map is not the terrain.

Asimov used to write that the only truly free societies that have ever existed have been slave owning ones. This is why he wrote so much about Robots. Only robots can set us free and do it ethically. If robots do the work of people then they will be our unpaid slaves. We will send them out to work in our stead.

Yes. It is lucidly clear to me that we do not have such machines, yet. And Yes it is lucidly clear to me also that robots will not be a panacea. However they are a necessary but not sufficient prerequisite for our continued prosperity.

Most will see them as rivals, not the liberators that they are. It offends the Puritanical soul to imagine a life of freedom and enjoyment. If you are not suffering, then you are not alive. Suffering has been elevated to a virtue. This is a perversion worthy of Satan.

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2246
Banks deal boosts UK bid to be leading China finance hub

http://uk.reuters.com/article/2013/10/15/uk-china-uk-rqfii-idUKBRE99E06Y20131015

Tuesday's announcement of China's agreement to open up its markets for British-based investors represents its latest move to establish the yuan as one of the world's heavyweight currencies and underscores Britain's determination to win a large share of the potentially massive Chinese market.

China's carefully managed programme for foreign investors will be expanded beyond Hong Kong for the first time, giving London-based investors the right to buy up to 80 billion yuan ($13.1 billion) of stocks, bonds and money market instruments.

Britain, meanwhile, will allow Chinese banks to set up wholesale banking branches in London, easing regulations imposed after the financial crisis. Wholesale banks cater to other financial institutions and large corporations.

London and Beijing will also allow the yuan to be traded against sterling directly, rather than through the dollar, thereby reducing transaction costs.

The moves were announced during a visit to China by Britain's chancellor George Osborne, who is seeking to help London retain its leading role as a financial centre in the face of competition from Singapore, Frankfurt and other cities vying to be approved by Beijing as a designated centre for clearing yuan trades outside of China.

"The Chinese currency, the renminbi, is not terribly well known in Britain at the moment. But over my lifetime I think it's going to become almost as familiar as the dollar, and I want British businesses involved in trading it, in investing it," Osborne told BBC television in China.

 

[bold mine]

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2237
Another sellout...

So, the best Congress money can buy kicked the can another couple months down the road.  According to some posts over at ZH, the bill provides for automatic debt ceiling increases, unless Congress votes against them.  Of course, the pres can then veto such, and nobody's got enough votes to get the 2/3s to override.  Which essentially gives the executive control of the purse strings.  Unconstitutional?  Yep.

In other news, we now have (probably) at least until April before the next "X Date"...This means for me a winter spent considering an early "retirement" to the family farm in the Midwest, and laying groundwork for same.  

Sorry I've been so absent, gang.  My life has been demolished 3 times in the last 2 years, and therefore I have been up to my neck in meatspace scrambles.  Good news is:  other than my small biz, I haven't anything left to lose.  And let's not forget I have evidently convinced a magnificent woman that I am worth her loving attention...and she's an RN to boot.  And lastly I have as of this past month finished severing all ties to my Ex (buying her out of the biz was the last step).  Now to the business of Living!

Alright, to work I go.  Hope I can be more present in these precincts going forward...

viva -- Sager

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2385
Nice to hear from you Sager!

You are right to point out this unique little feature of this particular can kicking - the fact that Congress has actually, in their infinite legislative creativity, managed to build into this bill the stealth abrogation of their fiscal responsibilities.  The President's veto can now become the winning "vote" for increasing the debt ceiling, at least this time.  Amazing stuff.   

      

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