Daily Digest

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Daily Digest 3/2 - European Central Banks Feel Pressure, Scaling a $9.5 Trillion Debt Wall

Wednesday, March 2, 2016, 8:33 AM

Economy

Peabody Energy Says It Has Held Talks With First Lien Lender

Peabody is meeting with debt holders as it faces the coal market’s worst downturn in decades. Challenged by cheap natural gas, mounting environmental regulations and weak demand overseas, rivals including Alpha Natural Resources Inc. and Arch Coal Inc. have already filed for bankruptcy.

U.S. Distressed-Debt Ratio Rises for Ninth Straight Month: Chart

That’s the highest level for this measure of high-yield debt since July 2009. The ratio is based on debt trading at an option-adjusted spread of 1,000 basis points relative to U.S. Treasuries. "Drops in oil prices affected the profitability of oil and gas companies, where spreads have widened considerably, and had a spillover effect on the speculative-grade spectrum as a whole," S&P said in its report.

Puerto Rico Governor Reiterates Warning of Debt Moratorium

Puerto Rico Governor Alejandro Garcia Padilla reiterated that his government may stop making payments as soon as in May on $70 billion in debt if U.S. lawmakers fail to assist commonwealth’s efforts to restructure the island’s obligations.

Global government debt to keep rising in 2016: S&P

The rating agency released a new report saying the stock of global government debt was expected to rise 2 percent to $42.4 trillion, with new borrowing of $6.7 trillion set to continue to outstrip the amounts being repaid.

Australia's net foreign debt tips over $1 trillion as second widest current account deficit recorded

Australia's net foreign debt has expanded beyond $1 trillion for the first time on record.

Scaling a $9.5 Trillion Debt Wall

Companies still have a little time before they must pay down the bulk of $9.5 trillion of debt maturing in the next five years. That’s the good news.

Japan PM Abe to form panel to debate extra stimulus budget: sources

Japanese Prime Minister Shinzo Abe will pull together a new advisory panel to debate the need for a supplementary budget for the coming fiscal year from April to stimulate the flagging economy, sources told Reuters on Tuesday.

Euro sinks as weak data piles pressure on European Central Bank

The euro hit its lowest in almost three years against the yen while European shares extended their strongest run of the year on Tuesday as data from around the region bolstered the case for more ECB stimulus next week.

Asian shares rise after China stimulus step

Asian shares shrugged off their early doldrums on Tuesday and extended gains, boosted by China's monetary easing and downbeat manufacturing and service surveys that raised hopes of additional stimulus measures.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/12/16

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."

5 Comments

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
Syria- refugees from war and drought
The relentless flow of refugees from the Middle East into Europe continues to raise tensions across the region.
 
This weekend, fires ignited at a refugee camp in Calais, France, and countries are beginning to tighten their borders as more than 1 million people have streamed into Europe in the past year. The 1 million refugees represent just a portion of the 4.2 million that have fled Syria in all directions. And that’s on top of the 7.6 million people internally displaced in Syria who are trapped in limbo in their home country.
 
War has been the direct driver of the refugee flux and behind that is a complex mix of social and political factors both inside and outside the region. One fiercely studied and debated driver has been a recent dip into a series of severe droughts starting in the late 1990s.
 
Previous work has prescribed some of the drought — and its impact on the socioeconomic fabric in the Middle East — to climate change. New findings published in the Journal of Geophysical Research-Atmospheres put it in even starker context, showing that the drought is likely the worst to affect the region in 900 years.

http://www.climatecentral.org/news/syrias-drought-worst-900-years-20087

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saxplayer00o1
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Posts: 4066
China eyes 13 pct money supply growth to buffer economy in 2016

China eyes 13 pct money supply growth to buffer economy in 2016 ...

Reuters-4 hours ago
"A 13 percent rise in M2 is sufficient for keeping liquidity flush in the near term, but we may see faster rises later this year as the central bank is likely to loosen ...

China's Other Growth Figure Is Flashing a Warning

Bloomberg-47 minutes ago
Just two years before, China added $1.1 trillion to the global economy, expanding 13 ... Weakening nominal growth makes debt servicing harder, forming the ...

Debts rise at China's big steel mills, consumption falls

Reuters-9 hours ago
The debt ratio of major steel mills rose 1.6 percentage points to 70.1 percent from a year ago, taking the big mills' debt to 3.27 trillion yuan ($499 billion), ...

Rating agency Moody's downgrades its outlook on China's debt

euronews - ‎3 hours ago‎
Chinese government debt is causing concern to Moody's. The rating agency has downgraded its outlook on that debt to 'negative' from 'stable'. The reason is uncertainty over Beijing's' capacity to carry out economic reforms, coupled with rising ...

China's Default Risk Climbs Above Lower-Rated Philippines: Chart

Bloomberg-10 hours ago
The credit-default swaps market indicates China's creditworthiness is worse ... Moody's lowered the outlook on its China debt rating to negative from stable on ...

Banks Bloated on Sovereign Debt Weaken Italy in Row With Germany

Bloomberg-9 hours ago
A drive to tighten rules over how much sovereign debt banks are allowed to own has raised the alarm in the home of the euro region's largest bond market.

S&P: Large Japan economic stimulus would raise concerns

Reuters - ‎11 hours ago‎
Faced with a flagging economy, Japan is laying the groundwork for new government spending to pre-empt any weakness in household consumption, which would add to its already heavy debt burden. S&P cut its rating on Japan from AA- to A+ in September, ...

Recession will lead to eurozone collapse, warns French bank

Telegraph.co.uk-3 hours ago
He admitted that the ECB's move into negative interest rates could have adverse effects on the continent's lenders, hinting policymakers would mitigate the ...

Sub-zero central banks may just chase inflation expectations lower

Reuters-9 hours ago
The European Central Bank and its peers in Japan, Switzerland, Sweden and ... result, rekindling deflationary fears through a shock to banks' profitability.".

Germany Set to Sell Five-Year Debt With Lowest Yield on Record

Bloomberg-6 hours ago
German sovereign securities fell for a second day along with high-rated peers including Austria and France as European stocks extended gains into a fifth day.
 

80% of Nigeria's revenue goes into debt servicing – IDB

The Eagle Online - ‎21 hours ago‎
The Resident Representatives of IDB in Nigeria, Abdallah Mohammed Kiliaki, who made this known during courtesy visit to the Chairman of the Senate Committee on Local and Foreign Debts, Senator Shehu sani, lamented that the amount is very high when ...
Uncletommy's picture
Uncletommy
Status: Gold Member (Offline)
Joined: May 3 2014
Posts: 476
The next refugee crisis?

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
After the stock market crash, a property bubble in China looms

Negative Rates Strain Financial System

Bloomberg-18 hours ago
For those who doubt that negative interest rates are bad for banks, take a look at what's going on in Japan. The nation's commercial lenders are loading up on ...

Big banks urge Ottawa to spend $20-billion in rapid stimulus

The Globe and Mail-35 minutes ago
“This stimulus would be over and above the deficit resulting from weaker economic conditions, estimated for fiscal 2016-17 at $18-billion by the federal ...

After negative rates, BOJ's Nakaso puts onus on government to boost growth

Reuters - ‎9 hours ago‎
NAHA, Japan Bank of Japan Deputy Governor Hiroshi Nakaso on Thursday put the onus on the government to speed up structural reforms to boost the country's growth potential and maximize the economic impact of the bank's massive monetary stimulus ...

Japan Sales Tax Delay Seen Likely as G-7 Offers Abe Cover

Bloomberg-9 hours ago
Focusing attention on worsening global prospects, and calls from quarters including the International Monetary Fund for stimulus, could help Abe overcome ...

After the stock market crash, a property bubble in China looms

The Straits Times - ‎Mar 2, 2016‎
The boom, fueled by monetary stimulus and a loosening of property curbs in February, shows how government efforts to revive the world's second-largest economy risk fueling asset bubbles instead. In Shanghai, lines of prospective buyers outside property ...

China Expected to Set Lower Growth Target at Legislature

ABC News-4 hours ago
This week, Beijing moved to expand lending by easing bank reserve levels, though Li and other leaders say stronger growth requires reforms, not stimulus.

Euro-Area Companies Cut Prices as Recovery Loses Momentum

Bloomberg-6 hours ago
Deflationary pressures in the euro area intensified in February, raising the pressure on European Central Bank President Mario Draghi to increase stimulus this ...

Chicago schools fast running out of cash as standoff with Illinois ...

Reuters-9 hours ago
CPS already carries a $6.2 billion debt load, and its finances remain ... cuts are not guaranteed and this is a schools' district with a $5.7 billion annual budget.

States Losing Ability to Borrow at Record Lows as Issuance Rises

Bloomberg-2 hours ago
Municipal issuers plan to sell $10.6 billion of long-term fixed-rate debt this week, more than any five-day period since Nov. 16, data compiled by Bloomberg ...

Hong Kong Bourse Revamps Gold Futures Targeting China's Wealth

Bloomberg-7 hours ago

... of 2015 compared with the same period of 2014 -- a gain of $439 billion. ... China's debt-to-GDP ratio surged to 247 percent last year from 166 percent in 2007 ..

Trudeau's Message to World: Let Government Spending Do the Work

Bloomberg - ‎4 hours ago‎
Trudeau, 44, hinted he is considering expanding on pledges that have his country on pace for a deficit of nearly C$30 billion ($22.3 billion) in the fiscal year that begins April 1. Having promised C$10.5 billion in new spending during the campaign ...
 

Feds headed for $150B in deficits over next 5 years: TD Bank forecast

TheChronicleHerald.ca - ‎Mar 2, 2016‎
OTTAWA — A new analysis by one of Canada's biggest banks says the federal government is on track to run $150 billion in budget deficits over the next five years. The TD Bank report, released Tuesday, also estimates Ottawa's current fiscal path means ...

Saudi Arabia asks banks to discuss major ...

Reuters-22 hours ago
Riyadh ran a record budget deficit of nearly $100 billion last year. Before oil prices began to plunge in mid-2014, Saudi Arabia aggressively paid down its ...
KennethPollinger's picture
KennethPollinger
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 653
3/3/16 ruminations galore

I recently sent out what's below: Titled "WTSHTF" to my group.  Enjoy,  Ken

 

IF it does. And bad.

 
Capital controls: one cannot take monies out of the country
 
ATMs: can't take anything out or just a very small amount periodically
 
Social Security/Pensions: Can't take monies out of the country. Possibly GREATLY reduced amounts, in each category.
 
Possible bail-ins or raids on safe deposit boxes.
 
Your 250,000 guaranteed bank insurance is a total joke.  FDIC!
 
Banks: negative interest rates.  YOU pay to keep money in a bank.
 
Fewer good paying jobs.
 
More Food stamps for more people (controlled by the pols)
 
Health insurance:  What?  How? Where?  How much?
 
No credit cards available.
 
-------------------------------------------------------------------------------------------------------
 
So, if some or all of this happens HERE (it's already happening in countries around the world), what's one to do?
 
1. Have land to escape to , whether in USA or Outside of country, and grow own food as much as possible. Much depends on the local weather, and imagination.
 
2. Water source is crucial
 
3. to retire overseas you have to show that you can support yourself somehow.
 
4.One's monies needed for life overseas, MIGHT need to be exchanged for the local currency BEFORE capital controls come into effect.
 
5. Get out immediately of most stocks, bonds and hoard CASH.  CASH is king.
Especially mutual finds where you have NO IDEA where those bonds are located.
ETFs are very shakey and dangerous.  PAPER  gold/silver accounts may be practically worthless soon.
 
6. If possible, buy some silver (for poorer folks) and/or gold.  Hard Assets Alliance is a good company for this and you can store stuff overseas.  Merits a look!
This is wealth insurance (if you have any wealth--most live from paycheck to paycheck and have no savings)
 
7.Be aware, be conscious--look for warnings, signs, past history, etc. BE PREPARED!!   Follow Peakprosperity.com, with FREE daily Digest
 
HOWEVER, if you are lucky enough to have someone who has prepared and is building "Community, Communes, Co-housing, etc," then you might be able to barter or pay your way in, depending on the group and especially the ownership.
 
Costa Rica offers many advantages:
 
a. Natural year-round beauty
b. great water sources
c. great solar energy for solar situations
d. Moderate temperature, all-year round
e. grow your own food easily (ALL-YEAR ROUND), or take advantage of local famers' markets or connect with local organic farms for your needs.
f. No need for heat, AC, even washers/dryers--hand wash and then out to the strong sun.
g. If close to the ocean, learn fishing to supplement your food.
h. Possibly raise some animals for milk, cheese, grass-fed meat, etc.
i. veggie gardens galore
j. solid local folks, many are farmers, ranchers, with long traditions of how-to.
k.Rent (cheap) or build small sustainable lodging for self and others.
l. internet can be very good--choose what you need.
m.electricity is quite cheap
n.Vacation spots are in your backyard and innumerable
o.Plus the rest of Central America, Costa Rica as home base.
p.One does need a 4x4 car for many dirt roads and mountains
q.PROPERTY TAXES: one 1/4 of 1 percent!!!!!!!!!!!!!!!!!!!!!!
r. Many business opportunities for the creative
s Many farms are for sale: own your own and create your blessed  vision; or, rent          a farm for its pasture for cattle, etc.  GREAT GAINS here
t.T is for time: time to relax and enjoy and get off the rat race!!
u. U is for YOU to think, research, and then DECIDE.  What life-style do you want and can make happen??  Be grounded and REAL, please
v. V is for the ultimate VICTORY over crony capitalism, corrupt politicians, and              Wall street B.S., and especially MATERIALISM (THE dreaded disease)
x. Marks the spot: Costa Rica, with Ken's help and assistance
y. Why not?  Change can be difficult but also a wonderful challenge.
z. Zen is for Zen-Zen, aka. Ken Pollinger who is here to give support in any way possible that's reasonable.
 
THE END, for now.

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