Daily Digest

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Daily Digest 10/8 - German Recession Fears Grow, China Economy To Continue Slowdown

Wednesday, October 8, 2014, 8:44 AM

Economy

Retirees go to court against city for health care (Memphis)

Retirees who testified Monday say when they were hired, they were told they would be entitled to insurance for life.
Swayne Merrill was one of the retirees who told the judge that the city's new plan would increase his premiums by $1,600.

"If the city goes through with what they plan, it would break me," Merrill said.

Pennsylvania: Health Costs Imposed on Teachers

Philadelphia teachers vowed to fight a sudden move by the district Monday that cancels their union contract and requires them to start paying health premiums of $55 to $140 a month. District leaders said there was nothing else to cut after years of funding woes that have prompted nearly $1 billion in cuts that include the loss of 5,000 positions and the closing of 30 schools.

L.A.-area restaurants adding healthcare surcharge to cover workers

Diners are discovering an unfamiliar new item when the bill comes for the truffled lobster Bolognese at Melisse and for the crunchy Spanish fried chicken and waffles at AOC — a 3% surcharge for employees' medical insurance.

Wal-Mart to End Health Insurance for Some Part-Time Employees

Wal-Mart Stores Inc. WMT +0.37% said Tuesday it is cutting health insurance for more of its part-time workers, as the nation’s largest private employer takes steps to rein in rising health-care costs. The move will affect about 30,000 Wal-Mart employees who work fewer than 30 hours a week.

French finance minister says not in EU's powers to reject budget

The European Commision has already granted France two extensions on its deficit-cutting targets with the target date most recently reset at 2015. The country said over the summer that it would not bring its deficit down to 3 percent of economic growth before 2017.


German recession fears grow with latest industry data

Concerns that it could have entered technical recession – defined by two consecutive quarters of contraction – were fanned by news on Tuesday that industrial output in August slumped 4%. That was more than twice the decline of 1.5% that had been forecast by economists in a Reuters poll.

Japanese data suggest recession may be near

The decline and assessment downgrade will likely add to calls for Prime Minister Shinzo Abe's administration and the Bank of Japan to come to the aid of Japan's sluggish economy, as the government weighs another sales-tax increase in 2015. Some economists have already suggested the economy may be on the verge of a recession.

China economy to continue slowdown into ’16 – World Bank

China’s economy is projected to continue slowing down into 2016, with annual expansion hitting below the country’s official target of 7.5% starting this year, the World Bank said on Monday.

IMF says economic growth may never return to pre-crisis levels

The International Monetary Fund (IMF) has cut its global growth forecasts for 2014 and 2015 and warned that the world economy may never return to the pace of expansion seen before the financial crisis.

Dutch Central Bank Warns ECB Over Policy Risks

The European Central Bank’s current policy measures appear to be creating financial market bubbles that could result in instability, the Dutch Central Bank said Tuesday in its semi-annual financial stability report.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/7/14

Provided daily by the Peak Prosperity Gold & Silver Group

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5 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
CBO projects lowest deficit of Obama presidency

"The federal government will run a budget deficit of $486 billion in fiscal 2014, the Congressional Budget Office estimated Wednesday. That would be $195 billion less than fiscal 2013, and the smallest shortfall since 2008."

=========================================================

From Treasury Direct (Use "Find History"):

 

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
10/04/2013 11,937,274,295,632.01 4,810,184,233,321.04 16,747,458,528,953.05
10/06/2014 12,770,376,115,302.12 5,092,628,882,770.91 17,863,004,998,073.03

 

Mike Dill's picture
Mike Dill
Status: Bronze Member (Offline)
Joined: Nov 8 2009
Posts: 28
funny money budget deficit how do they get these numbers?

More Smoke from the CBO, as the difference in the debt is still 1100 billion higher than last year. If the budget deficit is only 500 billion, is the other 600 billion of deficit 'off book"?

cmartenson's picture
cmartenson
Status: Diamond Member (Online)
Joined: Jun 7 2007
Posts: 5570
Yep - its shenanigans
Mike Dill wrote:

More Smoke from the CBO, as the difference in the debt is still 1100 billion higher than last year. If the budget deficit is only 500 billion, is the other 600 billion of deficit 'off book"?

The US government reports a cash based deficit, but even with that there has to be shenanigans because I fail to see how your public debt (excluding intragovernmental holdings) can increase by $840 billion while the reported cash deficit is only $500 billion.

Something is seriously wrong there.

Why?

Because the bond sales and redemptions are cash transactions.  How is it possible to increase you cash-based obligations by $840 billion, end the year with no cash in the kitty, and then report your cash deficit at $500b?

I submit it's not possible without violating a few accounting rules.

For the record, the increase in the public debt and the reported deficit used to match reasonably well, as in within a few percent.

davefairtex's picture
davefairtex
Status: Diamond Member (Online)
Joined: Sep 3 2008
Posts: 5067
debt ceiling issues

The debt ceiling caused some troubles last year with our current debt increase numbers year over year.  Here's a chart that shows this (data from Treasury Direct).

On October 17 2013, the debt jumped by about 330 billion in one day.  I recommend you check back with the annual comparison data in about one week's time, and then you might notice a pretty big drop in the numbers.

FWIW, I believe they still won't match - Chris is right there is something funny happening there, but I don't think the gap will be nearly as dramatic as it is today.

 

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