Daily Digest

Image by Tax Credits, Flickr Creative Commons

Daily Digest 6/24 - Housing Bubble Yields Billions, Americans Teetering On Edge Of Financial Ruin

Wednesday, June 24, 2015, 6:49 AM

Economy

Kentucky Lawmakers Still Considering $3.3 Billion Bond For Teacher Pensions

Kentucky teacher pension officials are still asking for a $3.3 billion bailout of the system, saying it would increase the plan’s funded ratio from 53 percent to 66 percent and reduce the amount the state has to contribute.

Emanuel asks state lawmakers to delay CPS teacher pension payment (Chicago)

The request for a delay comes after a series of internal Chicago Public Schools reports indicated that even if the school district drained its checking account, maxed out its credit card and burned cash set aside for other debts, it still would not be able to make the pension payment of more than $600 million, cover payroll and pay all the other due bills.

Cash-strapped Chicago Public Schools set to borrow hundreds of millions

Jesse Ruiz, the school district's interim CEO and board member, issued a statement Monday repeating assertions that CPS' projected $1.1 billion budget deficit was "the result of shamefully low state education funding and a broken pension system that penalizes Chicago taxpayers and our city's children."

Negative T-Bill Rates Persist as Supply Shortage Seen Worsening

Regulations enacted since the global financial to make banks sound and prevent an implosion of the money market mutual fund industry have left less short-term debt instruments, such as bills and repurchase agreements, available. The shift has come while the U.S. Treasury reduces the amount of bills sold in favor of longer-maturity debt as part of plan to lock in lower borrowing costs with interest rates lingering close to historic lows.

China’s Plan for Local Debt Amounts to a Bailout

Beijing is permitting provinces to issue at least 2.6 trillion yuan ($419 billion) in bonds in 2015, the first local-government issuances in more than 20 years, to stave off a debt crunch. Local administrations have accumulated some 18 trillion yuan in bank loans and bonds to fund risky land and property deals—equivalent to a third of China’s economy. As the real-estate market slows, state-owned banks that did much of the lending are on the hook.

Americans households have the highest credit card debt since recession

On average, American households are $7,177 in debt, according to a CardHub study. That's a lot of debt, but not necessarily an unconquerable amount. Now's a good time to start digging your way out of it.

Housing bubble yields billions in profits (Australia)

Those who sold property during that period made an average of $230,633 and more than a third of sellers doubled their money. Only 9 per cent of those selling properties recorded a loss, thus more than 90 per cent made a profit, CoreLogic RP Data shows.

ECB's balance sheet rises to 2.452 trillion euros, gold steady

The ECB's balance sheet is steadily increasing as it rolls out a roughly 1 trillion euro scheme to buy government bonds and other assets known as "quantitative easing".

Abe government to continue efforts to curb rise in social security spending (Japan)

The government’s fiscal health is the worst among major industrialized economies, with public debt at more than 200 percent of nominal GDP due mainly to swelling social security costs amid the aging society.

70 million Americans teetering on edge of financial ruin

According to a survey of 1,000 adults released by Bankrate.com on Tuesday, nearly one in three (29%) American adults (that’s roughly 70 million) have no emergency savings at all — the highest percentage since Bankrate began doing this survey five years ago.

Fed’s Powell eyes two 2015 hikes as he dismisses bubble fears

“I am not particularly troubled by the level of equity values overall. They are certainly higher than normal but in a world where financial market assets are expected to give low returns, P/Es should be high,” he said.

Drought May Prompt Californians to Let Personal Hygiene Slide

Consumers changing their cleaning patterns in response to a drought isn’t unheard of. Unilever Chief Executive Officer Paul Polman recently told analysts and investors that Brazilians are showering 15 percent less because of water shortages. Meanwhile, the company’s products that are geared toward helping consumers use fewer resources are growing twice as fast as its other brands, and they’re more profitable, Polman said at a conference this month.

Brazil loan defaults rise in May, central bank says

Loan delinquencies at Brazilian banks rose in May for a second straight month, the latest sign that companies and individuals are struggling to remain current on their credit as Latin America's largest economy deteriorates.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/23/15

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."

8 Comments

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
10 Ways You Can Help Stop the Sixth Mass Extinction

Mass extinction means three out of every four species you are familiar with would disappear off the face of the Earth, plausibly in time for your grand kids to see it happen, if not before.

Yes, it's true that about a third of species we've evaluated are threatened with extinction, and that we've killed about half of all our wildlife in the past forty years. But it's also true that so far we've only lost less than one percent of the species that have ridden the planet with us for the last twelve thousand years. That doesn't mean species aren't in trouble -- more than 20,000 of them are -- but it does mean that most of what we want to save is still out there to be saved.

http://www.huffingtonpost.com/anthony-d-barnosky/10-ways-you-can-help-stop_b_5968774.html

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
What is warming the world?

A graphical comparison of factors some suspect are associated with warming.

http://www.bloomberg.com/graphics/2015-whats-warming-the-world/

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4060
Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Solar Flare

SEVERE Magnetic Storm, More is Coming | S0 News J…:

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
The TPP explained

Source. http://www.zerohedge.com/news/2015-06-24/senator-slams-obamatrade-they-won-vote-lost-trust-american-people

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Perpetual Motion

Warning: Extreme Cognitive Dissonance Ahead.

永久機関 Perpetual motion machines Part1:

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
5 Reasons Migration Into Europe Is A Problem With No Solution

Five Reasons Migration Into Europe Is A Problem With No Solution (June 24, 2015)
by Branko Milanovic

"First, the migration wave, even if the Europeans manage to control it this summer (which is far from obvious), reflects more deeply seated and permanent factors that are unlikely to abate any time soon. These factors are political chaos in the Middle East and, more importantly, the extraordinarily huge income gaps between Europe and Africa. With globalization, the knowledge of these gaps as well as the practical means to bridge them by migrating to a rich country are more known and affordable than ever. These trends look even more unmanageable for Europe when one takes a longer-term view and realizes that sub-Saharan African population which is currently only slightly greater than that of all of Europe is expected to be almost six times greater by 2100. Thus, economic migration will, if anything, increase."
http://www.socialeurope.eu/2015/06/five-reasons-why-migration-into-europe-is-a-problem-with-no-solution/

Note: I don't agree with all of this article, but the first point (quoted) is especially cogent.

Poet

Michael_Rudmin's picture
Michael_Rudmin
Status: Platinum Member (Offline)
Joined: Jun 25 2014
Posts: 772
Thank you for that wonderful perpetual motion video

Arthur, I really did enjoy that wonderful perpetual motion video.  To put it shortly, no, perpetual motion machines don't work; if they did, we wouldn't bother burning fossil fuels.  We'd just perpetual-motion our planet to heat-death, because every machine generates friction, which generates heat.

But the video doesn't claim to have a working perpetual motion machine.  They build such machines and publish videos of them as an educational effort, so that you know what kind of perpetual motion machines have been proposed.

So is seeing believing?  Not quite.  The first answer is, you may be seeing the slow decay of momentum:  that the perpetual motion machine works for a while, and then slows down to a stop.  But if it does decay to a stop too quickly, a small friction motor on the back can help slow down the decay.  Want to be a little more tricky?  The use of magnets below the stand can help keep things running.

For something such as this, you don't want to actually power the thing, because you don't want it starting on its own:  that would cue the viewer that not everything was as it seems.  All you want is to keep things running long enough that the viewer sees how the thing was designed to work.

Oh....  there's another one, as well.  The train... wasn't a perpetual motion machine, it was an optical illusion.  If you look at the top of the double-cone wheel, you will see that the double-cone wheel is always falling.  As such, it isn't a cyclic machine:  it is more akin to using a zip line in an obstacle course.

So I don't take this as a demonstration that perpetual motion machines work; I take it as a very well-crafted demonstration of *how* the traditional, patented perpetual motion machines were *supposed* to have worked.

I will leave it as an exercise for the reader, to figure out how the first one, the fluid perpetual motion machine, was done.  If worst comes to worst, do as they suggest, and build it yourself, see for yourself.  And look at the video for cues as to how they kept that thing running.

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments