Daily Digest

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Daily Digest 1/4 - Russia Rearms For A New Era, The World's Groundwater Crisis

Monday, January 4, 2016, 10:15 AM


Russia Rearms For A New Era (jdargis)

Russia has made big increases to its military budget, including a jump of nearly $11 billion from 2014 to 2015. According to Moscow, it is making up for years of disinvestment after the collapse of the Soviet Union. But sanctions from the Ukrainian conflict, dropping oil prices and other financial problems have weakened the Russian economy, and analysts expect military spending to slow.

Obama plans curbs on guns (jdargis)

One of the main proposals Obama is poised to adopt would require some unlicensed gun dealers to get licenses and conduct background checks on potential buyers. The change is aimed at occasional dealers, including some who sell online frequently or rent tables at gun shows but do not have a storefront.

Economists Take Aim At Wealth Inequality (jdargis)

Like those of many of his peers who are presenting new research at the annual meeting of the American Economic Association, which began here on Sunday and ends on Tuesday, Mr. Bloom’s findings are bringing to light fresh perspectives on why income inequality is growing and how it is reshaping the national and global economy.

‘Frightening’ Shell gas pipeline flares spook Ireland (richcabot)

On New Year’s Eve, Shell reportedly had warned residents via a text alert to expect intermittent flaring – a way in which excess gas is burned off.

The company said the practice is “part of normal start-up activities”.

Belgian nuclear plant’s reactor shuts down days after reboot (richcabot)

“Doel 1 automatically shut down at 6:00 pm,” AFP reported a spokeswoman for Electrabel as saying. “Everything went according to procedure. There was no impact on safety, and no impact on staff, local residents and the environment.”

Electrabel added that the reactor went offline due to “normal safety mechanism,” so it can restart safely.

Solar's Demise In The UK (Tom K.)

The level of critique by companies and environmental experts might lead one to think that the UK was the only country considering these moves, but that is far from true. Germany, Spain, and the Czech Republic have all been looking to cut back on subsidies while even the U.S. is closely considering whether continued tax subsidies make sense in the current economic climate.

The Forgotten Students, and Eroding School Districts, of California's Drought (jdargis)

Enrollment in his tiny district is down 14 percent from four years ago, to 230 students, which translates into hundreds of thousands of dollars in lost state aid — on top of years of funding cutbacks statewide. Similar double-digit enrollment declines can be found in other small, rural school districts throughout the valley, including the Pleasant View school district in Tulare County, where more than half the migrant student population has left in only three years. Overall enrollment is down at least 17 percent since 2011.

Pumped Dry: The Global Crisis Of Vanishing Groundwater (jdargis)

Climate change is projected to increase the stresses on water supplies, and heated disputes are erupting in places where those with deep wells can keep pumping and leave others with dry wells. Even as satellite measurements have revealed the problem’s severity on a global scale, many regions have failed to adequately address the problem. Aquifers largely remain unmanaged and unregulated, and water that seeped underground over tens of thousands of years is being gradually used up.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/31/15

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."


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Milk shortages after tragic animal loss with monster storm

Dairy Cow Death Toll to Surpass 30,000 in Texas, New Mexico Due to Winter Storm Goliath


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Brazil 10 Year Government Bond


Brazil 10 Year Government Bond (Yield at 17.58%)

Brazil's Shrinking Investment-Grade Club Set to Dwindle Further

Bloomberg-8 hours ago
The average yield on all of Brazil's corporate debt, including junk and investment grade, ... Vale SA's $2.25 billion of notes due in 2022 lost 22 percent last year, ...


Employees pay 130% more for health care than a decade ago

Health expenses surging in Mass.

The Boston Globe-15 hours ago
The rise in health care costs for insurers — and subsequently consumers — comes after prices moderated in recent years. With the enactment of the Affordable ...

Millions choose IRS fines as more affordable than health coverage

The Seattle Times - ‎15 hours ago‎
Murphy, an engineer in Sulphur Springs, Texas, estimates that under the Affordable Care Act, he will face a fine of $1,800 for going uninsured in 2016. But in his view, that penalty is worth it if he can avoid buying an insurance policy that costs $2 ...

More People Turn to Faith-Based Groups for Health Coverage

Wall Street Journal-16 hours ago
Most ministries don't always share bills for certain pre-existing conditions, whereas ... Separate lawsuits were filed in Montana, Illinois and Oklahoma by ministry ...

China markets halt trading for day after 7% plunge

CNBC-10 hours ago
Chinese stocks plunged Monday, spurring a trading halt for the rest of the session, and leading stock markets in Asia Pacific lower after feeble manufacturing ...

China, euro zone factories suggest global economy still fragile

Reuters-3 hours ago

"The global economic story is based on weak fundamentals with China slowing ... five years, augurin


Worst stock market start of the CENTURY: Fears for pensions as ...

Express.co.uk-5 hours ago
The FTSE 100 plunged by more than two percent in the opening hours of trading, amid worries over China's economy, wiping up to £36billion off its value and ...

Pension crisis to last for 20 years: 11 million Britons face reduced ...

Express.co.uk-16 hours ago
UP to 11 million Britons face reduced pension payouts because of a funding crisis ... BP are among those to have pension deficits that run into billions of pounds.

UK manufacturing growth slows again in December

BBC News - ‎6 hours ago‎
Manufacturing failed to contribute to economic growth throughout the first three quarters of 2015, with the much larger services industry continuing to drive the UK's economic recovery. New orders came in at the slowest pace in five months, according ...

China cracks down on foreign banks to stem cash flowing out of country

Sydney Morning Herald - ‎17 hours ago‎
Reuters reported on Wednesday that China's central bank had suspended at least three foreign banks from conducting some of their foreign exchange business until the end of March. China's past willingness to tolerate some capital flight has paved the ...

Emerging markets see weakest flows since financial crisis-IIF

Reuters-47 minutes ago
Total non-resident inflows fell to $41 billion in 2015 from an average of $285 billion from 2010 to 2014, with equity flows in 2015 totaling $13 billion and debt ...

Debt payments set to balloon for Detroit Public Schools

The Detroit News-11 hours ago
Lansing — The debt payments of Detroit Public Schools — already the highest of ... could leave state taxpayers on the hook for at least $1.5 billion in DPS debt.

Britain's borrowing reaches £180BILLION as debt jumps ahead of ...

Express.co.uk-39 minutes ago
BRITISH homes are racking up huge levels of debt at a rate not seen since 2008 ... Consumers now owe £178.2billion in unsecured credit, which does not ...

Big oil to cut investment again in 2016

Reuters-9 hours ago
Royal Dutch Shell has also announced a further $5 billion in spending cuts if its ... Exxon Mobil and Chevron benefit from the lowest debt ratios among the oil ...

Global oil, gas investments to fall to $522bn in 2016

Arab News-21 hours ago
... biggest investment and pension funds, for fear investors might take flight. ... Industry-wide, costs will be cut by reducing the size of projects, renegotiating ...

Dwindling Returns and Record Issuance: The Polish Debt Landscape

Bloomberg-6 hours ago
This year's deficit is projected to rise to as much as 54.7 billion zloty from 50 billion zloty seen for 2015. The Finance Ministry is counting on one-off inflows for ...

Puerto Rico to Skip Some Payments, Likely Prompting Turmoil

Wall Street Journal-43 minutes ago
Several analysts said Puerto Rico's ongoing defaults may provoke lawsuits as ... legislation that would allow Puerto Rico to restructure its debt, and proposed ...

Report: Lake Mead dropping 12 feet per year

Glenwood Springs Post Independent-10 hours ago
... the annual shortfall of 1.2 million acre-feet of water in Lake Mead has come to be ... Each year the deficit drops the surface level of Mead by 12 feet, according to ... (the city is currently engaged in a massive construction project to place pipes ...

Could the American economy tank in 2016?

Politico-9 hours ago
Under the burden of a regulatory explosion, ballooning federal debt, poor business investment in the recovery, higher taxes and other sources of slower ...


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Mark Cochrane
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Could the American economy tank in 2016?

That article is interminably long and has little of use but there are a few gems. I personally liked Robert Reich's quip that "Economic forecasters exist to make astrologers look good", which I find to be all too true. However, for those who didn't suffer through the article this one economist summed things up well and might be a good candidate to talk to in a podcast...

‘Big trouble’

Laurence J. Kotlikoff, a William Fairfield Warren professor and professor of economics at Boston University

The country’s greatest economic risk resides in the financial markets as well as the general public A) learning precisely how broke the U.S. government is, B) realizing how much money the Federal Reserve has printed since 2007 to pay the government’s bills, and C) putting A and B together and realizing that the combination of ongoing political stalemate, Enron-type fiscal accounting, fiscal insolvency and a vast ocean of money, sitting in bank reserves and ready to be released into the economy’s blood stream at any moment, spells big trouble—including high inflation (if not hyperinflation) and sky-high interest rates.

This is not hyperbole. The nation’s fiscal gap (the present value difference between Congressional Budget Office-projected future spending and taxes) stands at $200 trillion. This is our nation’s true fiscal debt, not the mere $13.5 trillion in the hands of the public that successive presidential administrations and Congresses have deemed to put on the books. And were we to see a return to the normal monetary conditions of 2007 (for econ geeks, this means the same money multiplier and the same velocity of money), prices would be 300 percent higher than is now the case.

The country’s second greatest risk is from smart machines putting so many people out of jobs or out of good jobs that too few people can afford to buy what those machines make or save enough to maintain, let alone grow, our nation’s capital stock. When the heads of Amazon and Google salivate over drone delivery vehicles and driverless vehicles, they might think about how many of their customers they will be firing.

The third big problem is our nation’s net domestic investment rate. We are saving next to nothing and, as a result, investing next to nothing. The postwar has witnessed a massive increase in household consumption relative to national income, primarily by older generations whose consumption has been financed by a massive off-the-books generational Ponzi scheme. Our low rate of investment helps explain the fact that real weekly earnings, apart from fringe benefits, are no higher today than they were 50 years ago.

The last problem is that we’ve had and can expect to have no real reform of our tax, banking, Social Security, welfare or health care systems, all of which can be quickly fixed. All of these institutions have devolved into making work programs for fatuous bureaucrats.

Economists are called dismal scientists for a reason, and the above is about as dismal a picture as one could paint. Unfortunately, it’s all true. But on the plus side, we are a nation full of hard-working, creative and entrepreneurial people. We have overcome problems far larger than we now face, but we’ve done so by recognizing them and acting together. Whether that can happen when the leading Democratic candidate calls the opposition her enemy and the leading Republican candidate is straight out of kindergarten remains to be seen.

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National Debt Nearly $100 Billion Higher On December 31

The Daily History of the Debt Results

Historical returns from 12/23/2015 through 12/31/2016

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
12/23/2015 13,603,158,968,085.03 5,192,106,478,201.55 18,795,265,446,286.58
12/24/2015 13,608,106,425,390.39 5,194,774,066,145.61 18,802,880,491,536.00
12/28/2015 13,621,291,360,268.39 5,197,399,905,839.72 18,818,691,266,108.11
12/29/2015 13,621,994,782,159.41 5,202,112,051,802.47 18,824,106,833,961.88
12/30/2015 13,622,733,037,489.74 5,202,328,627,046.20 18,825,061,664,535.94
12/31/2015 13,672,522,257,291.59 5,249,656,752,129.30 18,922,179,009,420.89


Mark Cochrane's picture
Mark Cochrane
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Lot of debt suddenly on December 31st!

Total debt goes up constantly but on a day to day basis it went up by roughly

12/24 $7 billion

12/28 $16 billion (4 days)

12/29 $6 billion

12/30 $1 billion

12/31 $97 billion!!! That is a heck of a New Year's celebration with both public (50 billion) and government (47 billion) getting involved.

Normal end of the month or year?

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Mark Cochrane
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Posts: 1227
Terrorism good for the economy?

Distraction news? As fears from terrorism are stoked people stop worrying about the state of the economy. A dangerous correlation...


US set for year of fear


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Posts: 453
Re:Intragovemenr Debt

Interesting to see that Intragov't debt continues to increase despite both SS & Medicare are in the Red. Should Intragov't debt be decreasing as the money from the general fund pays for the  SS & Medicare deficits? 

KugsCheese's picture
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Posts: 1469
Mark Cochrane wrote: Total
Mark Cochrane wrote:

Total debt goes up constantly but on a day to day basis it went up by roughly

12/24 $7 billion

12/28 $16 billion (4 days)

12/29 $6 billion

12/30 $1 billion

12/31 $97 billion!!! That is a heck of a New Year's celebration with both public (50 billion) and government (47 billion) getting involved.

Normal end of the month or year?

It's some of that Enron-style accounting but since the US Government uses Cash Accounting it must bring the off-balance sheet liabilities back onto balance sheet at the end of every year.

Tall's picture
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Posts: 564
The Gov runs on a fiscal year, not a calendar year

" it must bring the off-balance sheet liabilities back onto balance sheet at the end of every year."

Is there the same kind of 1 day jump in total debt the last day of September?

Time2help's picture
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Joined: Jun 9 2011
Posts: 2890

Awesome 3:30 panic buying ramp into the close today.

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