Daily Digest

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Daily Digest 11/19 - France's Flailing Economy, Student Loan Debt Rises

Wednesday, November 19, 2014, 10:43 AM


France's flailing economy

Since 2008, the budget deficit has grown steadily and now lies above the three-percent ceiling stipulated by the EU. In 2013, the deficit rate was significantly above that level, at 4.3 percent of GDP. For 2015, experts are predicting it will climb to 4.7 percent. According to Pijnenburgís estimates, France will only come back in line with Maastricht debt standards in 2017 ñ much to the annoyance of officials in Brussels.

Bank of Japan meets as economic slump, tax delay cast doubt over outlook

Having stunned markets with a surprise monetary easing on Oct. 31, the BOJ now gobbles up almost the same amount of government bonds issued each month, a move critics describe as tantamount to debt monetisation.

Japan recession, Europe stagnation cast pall over global economic outlook

“Six years on from the financial crash that brought the world to its knees, red warning lights are once again flashing on the dashboard of the global economy,” Cameron wrote Monday in Britain’s Guardian newspaper.

Average Student Loan Debt Rises

Student loan debt continues to rise nationwide as new data shows a 2 percent spike in average debt for 2013 grads over their 2012 counterparts.

More than credit card balances and credit card loans, Americans owe upwards of $1.2 trillion in student loans. Nationally, the increasing cost of education means 2013 graduates amassed an average of $28,400 in debt, according to the just-released Project on Student Debt by nonprofit The Institute For College Access and Success.

UCSD students to protest proposed tuition hike (California)

The Day of Action Against the UC Tuition Plan comes one day before the Board of Regents will vote on a tuition hike of five-percent increments over each of the next five years. If approved annual tuition could jump to more than $15,000 by 2019.

The regents argue that the hike is needed to offset higher pensions and salary costs and recruit more in-state students.

Americans put health insurers on the hate list

Employees now contribute about $4,823 annually for family coverage, a jump of more than 80 percent since 2004, when they contributed $2,661. Over the same period, employers' contributions rose only 69 percent.

Deductibles have reached an average of $1,217, a rise of 47 percent from 2009, the Kaiser study found.

Russia Adds More Gold as Sanctions Weaken Ruble to Record Low

The purchases helped send gold to a two-week high today. Russia has tripled its gold reserves since 2005 and is now hoarding about 1,185 tons, according to Bloomberg calculations based on the most recent IMF data. Policy makers increased interest rates last month for a fourth time since March to shore up sentiment in the currency and curb capital outflows.

Frankfurt begins first European direct settlements in Chinese yuan

The yuan is “gaining traction as a trade currency and has in my opinion already reached the level of an investment currency,” Joachim Nagel, a board member at the Bundesbank, said Monday in a speech in Frankfurt. “It is only a matter of time before the renminbi [yuan-Ed] becomes an international reserve currency,” he added.

Interest rates may stay low for years: RBA (Australia)

In a speech that suggests the central bank is moderating its outlook for 2015, Mr Stevens suggested faltering jobs and wages growth meant it would be “a couple of years” before inflation triggered rate hikes.

That meant it was likely monetary policy would stay stimulatory “for some time yet”, he said.

Another rude Obamacare surprise awaits

One of the biggest remaining tests for Obamacare will come in early 2015 as people without coverage cope with the penalty fees. There are exemptions for low-income workers and others who would have to pay more than 8% of their income for a health insurance policy, which is considered prohibitively expensive. About 60% of the uninsured are poor and likely to qualify for an exemption. But they have to know how to claim it, and for all the attention Obamacare has generated, a surprisingly large portion of the population knows little or nothing about the law.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/18/14

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."


HughK's picture
Status: Platinum Member (Offline)
Joined: Mar 6 2012
Posts: 764
Is bullshi talk increasing?

Whooops, I meant to write bullish talk...

This little clip just played in a window I had open.  While the headline might sound bearish, the story is anything but:  Last Time This Happened, Stocks Tanked

Note: it might be helpful for Ari Wald to superimpose his chart on the left side of a peak oil curve.

I am wondering if others have any sense as to whether the amount of bullish talk is increasing, as one would expect in bubble territory.  

I also happened to hear Jim Cramer talking about the danger of skepticism in this market.  Here's his quote:

"I want to be more questioning, more critical of this market. But then again, that's like being skeptical of the damage that an 18-wheeler going 70 miles an hour can do to you as you stand in the middle of I-95," Cramer said.

While the manic Cramer is by no means the best indicator of whether the media as a whole is printing more bullish stories, his demagoguery is certainly awe-inspiring.  Chris, have you ever considered doing video clips in a decked out studio, waving your arms around, and superimposing giant text on the screen? (KNOW THIS...WE LOVE WARREN...I LIKE...TRANSLATION? NO!) It would certainly bring another demographic to Peak Prosperity!

saxplayer00o1's picture
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Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Food Inflation

Boots on the ground report from Adelaide, South Australia.

I have noticed a halving in the portions of food that one gets at the eateries around Adelaide from the same time last year. The price is the same but the quantity is half. Beer, on the other hand has taken the opposite attack, The quantity is the same but the price has increased.


Locksmithuk's picture
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Joined: Dec 19 2011
Posts: 146
Boots on the ground
Arthur Robey wrote:

Boots on the ground report from Adelaide, South Australia.

I have noticed a halving in the portions of food that one gets at the eateries around Adelaide from the same time last year. The price is the same but the quantity is half. Beer, on the other hand has taken the opposite attack, The quantity is the same but the price has increased.



Arthur, were you frequenting those nouvelle cuisine places again?


I mentioned to someone else yesterday on PP that the scarcity of eggs here in Brisbane increased during the recent G20 summit. Apparently the popularity of eggs among the militantly-minded population traditionally spikes around G20 time. The financial fortunes on the ground also perfectly reflected reality: during the summit lockdown period the small restaurants and cafes could barely raise enough revenue to pay their light bills, while the big, expensive hotels and commercial caterers milked it. The powerful trample on the minnows: perfect theme for a G20 environment.


Re beer inflation: it seems Adelaide trends are consistent with Brisbane's: $35 (~USD 30) for a small 330ml bottle of craft beer. The price premium apparently applies whenever an obscurely-named beer is served by a dude sporting a hipster beard and wearing low-slung "bog catcher" trousers. I think it's the law or something. As recently opined on this site, the definition of 'value' can differ greatly between Gen Y and Gen X.

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