Daily Digest

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Daily Digest 10/13 - Green Light For Silver, Is The World Addicted To Debt?

Tuesday, October 13, 2015, 10:23 AM

Economy

The world economic order is collapsing and this time there seems no way out (jdargis)

The IMF is profoundly concerned, warning at last week’s annual meeting in Peru of $3tn (£1.95tn) of excess credit globally and weakening global economic growth. But while it knows there needs to be an international co-ordinated response, no progress is likely. The grip of libertarian, anti-state philosophies on the dominant Anglo-Saxon political right in the US and UK makes such intervention as probable as a Middle East settlement. Order is crumbling all around and the forces that might save it are politically weak and intellectually ineffective.

Is the world addicted to debt? (Afridev)

Nigeria's President Muhammadu Buhari is trying to tackle widespread corruption in the country's oil industry.

He appointed himself oil minister, and there were reports that the former oil minister Diezani Alison-Madueke was arrested in London.

Protests Erupt In Turkey As Government Accused Of False Flag In Weekend Suicide Blast (richcabot)

For Erdogan, the idea was to stir up fear amongst the populace in an effort to boost support for AKP. Once that plan was put into motion, he then moved to stymie the coalition building process. Once he had sabotaged that completely, the path was clear for him to call for new elections.

The Big FATCA Failure (Tiffany B.)

The infamous Foreign Account Tax Compliance Act (FATCA) requires foreign banks to report certain accounts held by U.S. taxpayers to the IRS, under penalty of extreme sanctions. To implement it, the U.S. Treasury Department negotiated a series of intergovernmental agreements (IGAs). These IGAs oblige foreign governments to report U.S. taxpayer banking information to the IRS, and for the U.S. to report foreigners’ banking information to their respective governments.

Green Light For Silver (Taki T.)

The U.S. national debt is huge, moving higher, and has effectively zero chance of stabilizing or decreasing in the next decade. A poorly built mobile home is more likely to survive a Category 5 Hurricane than the US national debt will decrease. Examine the chart of national debt and silver prices for the past 15 years. Silver prices will “catch up” with the drastic increase in national debt.

The Endgame Takes Shape: "Banning Capitalism And Bypassing Capital Markets" (David B.)

Although “QE forever” and no tightening has been our base case for at least the last 12-18 months, we also tend to emphasize the diminishing impact of conventional QE policies. As the latest Fed paper (San Francisco) highlighted, “There is no work, to my knowledge, that establishes a link from QE to the ultimate goals of the Fed-inflation and real economic activity. Indeed, casual evidence suggests that QE has been ineffective in increasing inflation”.

How Trump Is Beating the Koch Brothers (richcabot)

The parallels to Trump are eerie. Trump’s campaign trades regularly in false and misleading claims, including lies about immigrants, lies about vaccines, a defense of entitlement spending, and a demand for trade protectionism. Taken together, this racist, nativist, anti-science package would bring America closer to fascism than any time in its history. Incidentally, it would also cripple the U.S. budget and economy, as well as the global economy.

Iranian parliament passes bill approving nuclear deal (jdargis)

Under the agreement, Iran is expected to start work on rolling back its nuclear programme from 18 October – labelled as adoption day – which includes taking out thousands of centrifuges at its enrichment facilities and pulling out its heavy-water reactor and filling it with concrete.

House GOP: Don't Give In to Far-Right Bullies (jdargis)

Boehner chose a different path, allowing the inmates to run wild in the asylum while trying to contain the havoc they wreaked. He let them learn the hard way that a government shutdown would hurt Republican poll numbers. He shelved the immigration reform package he said he wanted, shifting the blame to President Obama. He prevented an automatic yet politically suicidal cut in Medicare doctor reimbursements – opposed by right-wing fiscal scolds – by sneaking it through the House on a hastily called voice vote.

How Do Consumers Respond To Lower Gasoline Prices? (Evan K.)

I and others have tried to infer the effects of lower gasoline prices on consumer spending by looking at aggregate consumption spending. But, using their detailed data set, the Chase researchers were able to come up with a more satisfying answer. The basic idea is to compare how much spending on other items changed between the high gas price and low gas price periods for those who had been spending a large amount on gasoline with those who had been spending a low amount on gasoline. Economists refer to this as inference based on difference in differences. The Chase researchers found 73 cents in extra spending on other items for every dollar saved at the gasoline pump. Restaurants and groceries were the two biggest areas where spending was observed to increase.

Is recycling as awful as the New York Times claims? Not remotely (Michael W.)

However a mineral mine’s neighbors might feel, the adverse impacts of extracting natural resources aren’t limited to the surrounding community. Water pollution, for example, can extend far and wide. According to the Environmental Protection Agency, “Throughout the western United States there are thousands of miles of mining impacted streams and rivers caused by active and historic mining of metallic ores (e.g., iron, copper, lead, zinc, molybdenum, tungsten) and precious metals (gold, platinum, and silver).”

Gold & Silver

Click to read the PM Daily Market Commentary: 10/12/15

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."

7 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
Treasury Won't Let Investors Pay It to Keep Their Cash Safe

Greek State Debt to Individuals Rises to €5.1 Billion

Greek Reporter-3 hours ago
proypologismos The debts of the Greek State to suppliers, service providers, security funds and individuals continue to mount and they have reached 5.1 billion ...
 

Treasury Won't Let Investors Pay It to Keep Their Cash Safe

Bloomberg-3 hours ago
Yet Treasury rules don't permit auctioning new debt at negative rates, ... Treasury sold $20 billion of three-month bills Tuesday at a rate of zero percent, after it ...
 

RPT-Deep-pocketed institutional funds scaling back emerging markets

Reuters-8 hours ago
Separate data from JPMorgan shows strategic investors -- as the bank terms long-term institutions -- have committed $17.4 billion to emerging debt in 2015, ...
 

Emanuel owns up to hiring Byrd-Bennett, denies enabling alleged bribery plot

WLS-TV - ‎18 hours ago‎
Since Emanuel's 2011 inauguration, the CPS deficit swelled to a half billion dollars, its credit was downgraded to junk, and two appointees -- Jean-Claude Brizard and Byrd-Bennett -- resigned the district's top job. "Barbara Byrd-Bennett's reputation ...
 

What Moody's Is Watching as Malaysian Credit-Default Swaps Soar

Bloomberg-14 hours ago
1MDB will reduce its debt by 16 billion ringgit after Abu Dhabi-based International ... product this year from 3.5 percent in 2014 after running deficits since 1998.

CalPERS officers propose lower investment targets

CNBC-5 hours ago
... deficit to last for 15 years. Nearly all public pension funds have a negative cash flow, according to the National Association of State Retirement Administrators.

Main Chicago-area police training unit to shut down in November

Chicago Tribune-17 hours ago
He predicts the closure will be temporary, lasting only until the budget stalemate ... The Northern Illinois unit provides about 750 classes each year for 20,000 ...

 

Time2help's picture
Time2help
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Joined: Jun 9 2011
Posts: 2833
Bernanke says student debt no threat to U.S. financial system

Bernanke says student debt no threat to U.S. financial system (Reuters)

Mark Cochrane's picture
Mark Cochrane
Status: Diamond Member (Offline)
Joined: May 24 2011
Posts: 1222
Is that supposed to be comforting?

T2H,

Definitely humorous coming from a man with demonstrated 'bubble-blindness'....

 

thc0655's picture
thc0655
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Joined: Apr 27 2010
Posts: 1617
Bernanke: contrarian indicator

You can never be sure if something is true until it's been officially denied.  Now Bernanke has finally confirmed for anyone who doubted that student debt is about to bring down the economy.  Just like 2005:

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Secret Space Program, Austin

There is a conference on the UFO thingy in Austin Tx.atthe endof this month for any who Take an interest in an alternate view of why there is so much debt. 

Spoiler: It's all going to plan. 

http://www.secretspaceprogram.org/

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
More of the same

Singapore Central Bank Eases Policy by Adjusting Currency Band

Bloomberg - ‎14 hours ago‎
Singapore's central bank eased monetary policy for the second time in 2015 in an effort to revive growth. The local dollar advanced to the strongest in almost a month. The Monetary Authority of Singapore, which uses the currency rather than interest ...

Kiwi Drops Most in 3 Weeks as Central Bank Says Easing Is Likely

Bloomberg - ‎17 hours ago‎
The New Zealand dollar fell by the most in three weeks on signals the nation's central bank will further ease monetary policy. The kiwi dropped as much as 1.1 percent, the biggest decline since Sept. 21, after Reserve Bank Governor Graeme Wheeler said ...

Aussie Falls as Westpac Loan Rate Rise Spurs RBA Easing Chances

Bloomberg - ‎15 hours ago‎
Westpac Banking Corp. said it will increase its variable home-loan rates from Nov. 20, as it announced capital raising on Wednesday in Sydney. New Zealand's dollar extended declines after central bank Governor Graeme Wheeler said in a speech further ...

China Consumer Inflation Eases, Pressuring Beijing for More Stimulus

Wall Street Journal-11 hours ago
According to the People's Bank of China, loan demand in the manufacturing ... it has been below 50 since the central bank started releasing the data in 2004.

Serbian Central Bank Unexpectedly Cuts Rate to Record Low

Bloomberg-4 hours ago
With its seventh rate cut this year, the central bank is trying to spur growth in the biggest economy to emerge from the former Yugoslavia, which has suffered ...

India's Wholesale Prices Decline for 11 Straight Months

Bloomberg-7 hours ago
India's wholesale prices fell for the 11th straight month as central bank Governor Raghuram Rajan kept monetary policy accommodative. The wholesale price ...

Germany Sells Notes at Sub-Zero Yields as Mizuho Eyes ECB Limits

Bloomberg-1 hour ago
Euro-area central banks bought more than 340 billion euros of public-sector debt under their QE plan through the end of September, ECB data released on Oct.

Japan producer prices fall most in almost 6 years

MarketWatch-6 hours ago
The trends at factory gates could eventually feed into the price tags on store shelves, putting an even greater distance between the central bank and its inflation ...

Japan govt cuts economic assessment as output sags

CNBC - ‎8 hours ago‎
An unexpected fall in August industrial production prompted some economists to suggest Japan's economy could contract in July-September, which would put it in a technical recession after the previous quarter's contraction. In addition to the decline in ...
 

Japan to exempt some food from sales tax hike, sparks worries about debt

Reuters - ‎5 hours ago‎
The government will raise the nationwide sales tax to 10 percent from 8 percent in April 2017 to pay for rising welfare spending, but politicians are worried about the economic impact after a sales tax hike last year helped trigger a recession. Low ...

European Factors to Watch-Equity futures fall on China deflation ...

Reuters UK-8 hours ago
European Factors to Watch-Equity futures fall on China deflation worries ... on Wall Street weakness, China worries > TREASURIES-Prices rise on growth fears, ...
 
Industrial output in the eurozone fell in August, an indication that slower growth in China and downturns in other large developing economies are beginning to weaken the currency area's recovery.
 
U.S. stocks opened mostly lower Wednesday after the producer-price index, an important inflation indicator, declined in September and retail sales matched economists' forecasts.
 
In an interview with CNBC, Tarullo said it would be better to look for tangible signs of rising inflation and improving wages, than to rely on historical relationships like the Phillips Curve that link declining unemployment to future rises in inflation.

Billionaire Singer Lauds Gold as Central Banks Aid Recovery

Bloomberg-43 minutes ago
As central bankers prop up bond and stock markets with near-zero interest rates and bond purchases, gold is being overlooked, according to Elliott ...

UBS Sees Sovereign Assets Shrinking by $1.2 Trillion

Bloomberg-5 hours ago
Central bank and sovereign wealth fund assets will shrink by $1.2 trillion, or almost 7 percent, by the end of the year as China and petrostates including Russia ...

Brazil August Retail Sales Fall More Than Economists Forecast

Bloomberg-2 hours ago
Working to slow consumer price increases to the official target of 4.5 percent by the end of 2016, the central bank raised the benchmark Selic in seven ...

Brazil's Next Big Crisis Is Scaring Bankers and Wiping Out Jobs

Bloomberg-13 hours ago
A 43-year-old steel worker, Santos had loaded up on debt to finance his new ... Total loans in the banking sector climbed five-fold over that time to 3.1 trillion ...

As early October optimism fades, equities rely on risk premium

Reuters-1 hour ago
The Bank of Japan is also seen injecting more stimulus into its faltering economy. Some say ECB and BOJ quantitative easing could continue for years. Japan's ...

China expected to post worst growth since 2009

WPTZ The Champlain Valley - ‎13 hours ago‎
"Even as growth has come down, the government has abstained from high profile stimulus efforts," said Louis Kuijs of Oxford Economics. "That is because ... policymakers have so far not felt that the deceleration of growth has been severe enough to ...

The biggest American debt selloff in 15 years

KSPR-11 minutes ago
Just in the first seven months of the year, foreign governments sold off $103 billion of U.S. debt, according to CNNMoney's analysis of Treasury Department data.

Chicagoans' Cost to Exit Swap Agreements Approaches $300 Million

Bloomberg-3 hours ago
Moody's downgrade of Chicago's general-obligation debt in May forced the city to ... Since then issuers have paid at least $5 billion to unwind the agreements.

Civic Federation: $588M property tax hike won't be enough to shore up finances

Chicago Sun-Times - ‎10 hours ago‎
The Civic Federation will get behind Mayor Rahm Emanuel's bad-news $7.8 billion budget on Wednesday with a giant caveat: a $588 million property tax increase for police and fire pensions and school construction is “not enough to stabilize” Chicago's ...

Key payments could be at risk in Illinois cash crunch

Reuters - ‎16 hours ago‎
Illinois' debt service payments on bonds total $3.4 billion in fiscal 2016, while payments to its five retirement systems total $6.8 billion, according to a May budget analysis by the Chicago-based Civic Federation. A monthly breakdown of those amounts ...

Interest rate hike could cripple auto sales, increase loan risk

Chicago Tribune-19 hours ago
Interest rate hike could derail U.S. auto boom fueled by cheap debt, longer term loans. ... U.S. consumers took out $101 billion in car loans over the 12 months ...

UPDATE 2-Austria strains to stay within EU structural deficit rules in 2016

Reuters - ‎2 hours ago‎
Schelling, however, has said some of the roughly 1 billion euros ($1.14 billion) allocated for measures related to migrants and refugees, or 0.31 percent of GDP, was excluded from the structural deficit. In parliament, he was more circumspect. "It is ...

U.K. pension funding deficit continued to grow in September

Pensions & Investments-20 hours ago
The total deficit of defined benefit funds covered by the Pension Protection Fund's 7800 index increased 11.2% to £311.7 billion ($472.7 billion) over the month ...

Teamsters face a reduction in pension benefits

KSFY - ‎16 hours ago‎
SIOUX FALLS - More than 400,000 Teamsters across the country face an uncertain financial future, as their pension fund is running out. The financial future of those teamsters is tied to the Central States Pension Fund. After receiving a letter which ...

Wisconsin retirees receive letter on how much their pensions will be cut

WDJT - ‎16 hours ago‎
A group of Wisconsin retirees met to discuss deep cuts to their pensions after receiving a letter detailing exactly how much money they'll lose. This is part of the Multiemployer Pension Reform Act of 2014 that underfunded pension plans. The Wisconsin ...

Cops Retiring in Their 40s While Pension Systems Break Cities' Backs

Michigan Capitol Confidential-5 hours ago
His wife, whose job title was telecommunicator, started collecting pension checks in 2010 at age 51. Since 2009, the city of Ann Arbor has seen 43 individuals ...

Preckwinkle plans to tax cable TV, bowling and golf

Chicago Tribune-37 minutes ago
The sales tax revenue will be spent on increased government worker pension payments, loan repayments and capital projects such as roads, bridges and major ...

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2833
Re: Bernanke: Student Loans

THC -

Yep, I didn't realize how bad the student loan debt problem had gotten until I saw Bernanke's official denial yesterday. 

God help those poor (sic) students.

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