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Daily Digest 5/27 - Pensioners Threatened With Further Cuts, Venezuelans Stash Dollars

Wednesday, May 27, 2015, 9:42 AM

Economy

Pensioners threatened with further cuts (Portugal)

Portugal’s finance minister, Maria Luís Albuquerque, has said that the process to ensure the sustainability of the country’s social security system may mean pensions have to be cut further if that leads to a better redistribution of effort.

Japan Inc backs ’17 sales tax hike to fix debt woes

A sales tax rise in 1997 has been blamed for helping to create a long-lasting deflationary mindset, while last year’s increase to 8% from 5% triggered a recession despite coming on the heels of bold stimulus measures. The fallout from the last hike prompted Prime Minister Shinzo Abe to delay the next increase to 10% by 18 months to April 2017.

Japan’s public debt is, however, by far the highest in the developed world at more than twice the size of GDP.

Italy central bank warns growth held back by credit crunch

Governor Ignazio Visco said that by the end of 2014, Italian banks were saddled with 350 billion euros‘ (381 billion dollars) worth of non-performing loans, equal to about 18 per cent of total credit, up from 6 per cent in 2008.

Spain leader blames austerity, scandals for election result

Rajoy, who is also the Popular Party's leader, said economic recovery and job creation are priorities before Spain's general election this fall. A nearly eight-year economic crisis has left the country with a 24 percent unemployment rate.

Bolivar Plunges in Black Market as Venezuelans Stash Dollars

The bolivar fell 25 percent on the black market last week to 423 per dollar before strengthening to 413 today, according to dolartoday.com, a website that tracks the rate on the Colombian border. That’s 66 times the primary official rate of 6.3 bolivars per dollar, and means the 100-bolivar bill fetches about 24 U.S. cents from illegal street dealers.

It’s Deja Vu for Bond Traders as Argentina CPI Is Deemed Unreal

Economy Minister Axel Kicillof said inflation this year may be as low as 15 percent while 14 economists surveyed by Bloomberg estimate consumer prices will increase 19.7 percent.

IL Democrats proposing budget with $3 billion worth of debt

That budget is at least $3 billion short. Madigan says he would work with Governor Bruce Rauner to find new money.

Portuguese public debt reaches 226.276 billion euros in first quarter

Portugal’s public debt rose to 226.276 billion euros at the end of the first quarter of this year, or 130.3 percent of gross domestic product (GDP), according to figures released recently by the Bank of Portugal in Lisbon.

Puerto Rico Senate Passes Sales-Tax Bill With Amendments

Governor Alejandro Garcia Padilla and lawmakers from his ruling Popular Democratic Party agreed on a framework for the tax boost May 14. The bill would raise the levy to 11.5 percent from 7 percent through March, after which it would transition into a value-added tax.

BOJ Debt Purchases Can’t Offset Tumbling Demand at Bond Auctions

The BOJ is buying as much as 12 trillion yen ($99 billion) of Japanese government bonds a month to spur the economy, yet the nation’s debt market has been a losing investment as the outlook for inflation rises. Treasuries have returned 0.2 percent in 2015, according to Bloomberg-compiled data calculating price changes plus interest payments.

In Central Coast cattle region, drought continues to shrink the herds

Canyon Ranch, started near San Luis Obispo by Sinton's great-grandfather 150 years ago, is withering from lack of rain, as are most other ranches in this once-thriving cattle region. Roughly 75% of the cattle in San Luis Obispo County have been sold or taken out of state over the last four years to escape conditions in the most drought-stricken region in California.

Hungary Cuts Interest Rate to Record Low to Combat Deflation

Hungary’s central bank reduced its benchmark interest rate to a record on Tuesday to end eight months of deflation and lift consumer price growth to its target.

Greece mulls bank ATM levy, tax to legalise undeclared income abroad

Greece may impose a small levy on bank ATM withdrawals to encourage use of credit cards, as part of a package of measures aimed at fighting tax evasion, the finance minister said on Tuesday.

Gold & Silver

Click to read the PM Daily Market Commentary: 5/26/15

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."

9 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1517
DOJ watchdogs snag FIFA officials

You have to laugh to keep from crying!  It seems the DOJ has found the right size fraud that can be jailed: billions and trillions of dollars was WAAAAY to big to jail, but "millions of dollars" seems to be just the right size.  In a long, ongoing investigation, the DOJ is charging soccer officials with bribes and fraud.  Imagine that.  And they had Swiss officials conduct massive, lightning raids to round up all the evil doers.  I assume the accused persons will NOT be let off with a token $10,000 fine and a promise not to ever do it again.

http://www.nationaljournal.com/domesticpolicy/fifa-indictment-lynch-soccer-world-cup-052715

MF Global! Jon Corzine!!  MF Global!!  Jon Corzine!!!  MF Global!!!!  Jon Corzine!!!!!

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
Sad reality of the 'green divide'

How to overcome monetary premium of healthy, sustainable and organic?  I don't see an answer unless we all fall to subsistence levels of existence.

http://grist.org/cities/can-the-whitest-city-in-america-deliver-green-living-for-all/

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2768
QE4

Trial balloon (err, drone)?

QE4 Arrives: Mystery Drone Rains Money On People In Michigan, Cash-Grabbing Frenzy Ensues

Quote:

Sergeant Terry Dixon, from Grand Rapids Police Department, told Fox 17: 'In a situation like this, this looks fun - fun for everyone involved - especially the kids that are out there. There's money dropping from the sky and how often does that happen?

'The problem is that it could become a safety hazard for the kids or the youths that are running to get to the money - they could be crossing the roadway and inadvertently be struck by a car or something like that.'

Mark Cochrane's picture
Mark Cochrane
Status: Diamond Member (Offline)
Joined: May 24 2011
Posts: 1216
That's rich...

Following on thc0655' post about DOJ and FIFA I found this quote.

"This really is the World Cup of fraud and today we are issuing Fifa a red card," said Richard Weber, from the Internal Revenue Service (IRS).

While not insignificant, this is the Little Leagues when compared to the un-prosecutable bank fraud. The lesson learned seems to be to think really BIG (as in $billions) when perpetrating fraud, else it might actually cost you something.

Interesting that it is the IRS making the quote. Not sure anyone really cares about the fraud, the US Gov just wants its cut and are pissed they didn't get it.

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3125
I have to wonder...

...why the US Justice Dept. is interested in soccer.  Although it is the No. 1 worldwide sport, in the US it is a 2nd perhaps 3rd tier sport.  And, why has no other country where soccer is huge decided to take on FIFA corruption that is obvious, over-the-top and long standing?  What is the political agenda?  Are we again serving as the world's policeman?  Why pick a fight that is nearly meaningless in the US when, even if we limit it to sports, there are big issues like steroids in football and basketball where gigantism is the rule and obviously drug related?  Again, I am bewildered why tptb make the choices they do.  Bread and circuses?

Mark Cochrane's picture
Mark Cochrane
Status: Diamond Member (Offline)
Joined: May 24 2011
Posts: 1216
Appearance is everything...

Why?

DOJ gets to look like they are doing something while not bothering anyone who 'matters' here in the US. Dog and pony show.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
An Excellent American Orator.

I picked this video out of Mike's blog

https://damnthematrix.wordpress.com/2015/05/28/as-capitalisms-crisis-dee...

Professor Richard Wolff

It is long but very entertaining. 

Global Capitalism:  May 2015 Monthly Update:

 

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2237
Thanks Arthur

...for the link to DamntheMatrix' site.  I didn't realize he had his own site, and am glad to learn of it!  I've missed his "voice".

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