Daily Digest

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Daily Digest 4/6 - Pothole Season Arrives Amid Little Funding, Flint Mayor Presents Bleak Financial Picture

Wednesday, April 6, 2016, 10:11 AM

Economy

Wastewater Associated with Fracking Cited in New USGS Earthquake Report

New maps released by the U.S. Geological Survey reveal that seven million people are now living in areas at high risk for earthquakes. Not naturally occurring earthquakes but man-made – induced by oil and gas operations that pump wastewater deep underneath the ground.

Hedge funds sue to freeze Puerto Rico bank’s assets

“Once GDB spends its last remaining funds — and it is only a matter of time — many essential services in Puerto Rico may come to a halt,” the hedge funds said in their complaint. By then, they said, there would be nothing left for the bank’s creditors, who “will suffer substantial losses.”

Flint mayor presents budget, bleak financial picture

While general fund revenue is down slightly over the past two years, the city's water and sewer fund could face a $35 million deficit. "These deficits have occurred from residents not using their water," Scott Kincaid said. "And you can't blame them. You can't drink it, so you really can't use it." Weaver said while the state is providing some water bill relief, residents still have to pay.

Russian Fiscal Aim Seen Out of Reach as Putin Spares Defense

Not even the prospect of leaving Russia’s budget in the red until 2018 will force reductions in social or defense spending, the two items that dominate government expenditure, a Bloomberg survey of economists showed.

Pothole season brings little new funding to fix them

The cost of fixing the nation's roadways, on the other hand, can be measured in the billions. The Federal Highway Administration estimates it will cost $170 billion a year to make a dent in the backlog of bridge and highway overhaul projects.

Italy banks expect ECB to force pace of bad loan sales

Running at 360 billion euros ($410 billion) after a three-year recession, problem loans account for 18 percent of Italy’s bank loans against a euro zone average of 6 percent.

Atlantic City Rating Cut to Puerto Rico's Level by Moody's

Without state help, Mayor Don Guardian said the city will run out of money this month until the next round of tax payments come in.

As Water Infrastructure Crumbles, Cities Like Woodbury, N.J., Seek Private Help

Maintaining, operating, replacing and upgrading the nation’s water infrastructure could cost $2.8 trillion to $4.8 trillion through 2028.

Global funds drawn to India's record $120 bln sour debt

Bad loans at Indian banks jumped by nearly a third to around 4 trillion rupees ($60.3 billion) late last year as the central bank drives a national clean-up of banks' balance sheets. That figure doubles to a record amount when restructured, or rolled over, loans are included - amounting to 11.3 percent of all loans, the government says.

S. Korea's national debt up 53.5 trillion won in 2015

South Korea's national debt rose by 53.5 trillion won ($46.7 billion) in 2015 from a year earlier as the government managed an expansionary fiscal policy to pump-prime the sluggish economy, the finance ministry said Tuesday.

Fed's Evans says needs to be aggressive to get up to inflation targets

The U.S. central bank has to be proactive and aggressive to get up to the Federal Reserve's inflation targets, Chicago Fed President Charles Evans said in Hong Kong on Tuesday.

Zimbabwe: Cash Crisis Deepens, Helpless Central Bank Urges Use of Cards

Mangudya also hit out at business persons who don't bank their money, opting to keep daily takings at home as a recent order for tobacco farmers to be paid through banks failed to alleviate the liquidity crisis.

The ECB Explains Why Central Banks Can't Go Bankrupt in a Footnote

"Central banks are protected from insolvency due to their ability to create money and can therefore operate with negative equity."

Australia's central bank warns on rising currency

Australia's central bank warned that a rising currency could interfere with a transition to a broader based economy Tuesday, fueling expectations of interest rate cuts to come later in the year after the bank kept its powder dry at its latest policy meeting.

India’s Central Bank Slashes Key Rate To Five-Year Low To Boost Growth Amid Easing Inflation

Additionally, in moves aimed at increasing liquidity in the financial markets, the RBI raised the reverse repo rate — the rate lenders charge the central bank — by 25 basis points, and reduced the minimum daily cash reserve ratio requirement to 90 percent from 95 percent.

Negative Interest Rates Benefit the Global Economy, Says IMF Chief Christine Lagarde

Subzero interest rates in Europe and Japan are “net positives” for the global economy, International Monetary Fund chief Christine Lagarde said Tuesday, though she warned that the side effects of unorthodox central-bank policies should be closely monitored.

SNB's Jordan Says Negative Rate Key, Further Easing Possible

The Swiss National Bank is able to ease policy further as its negative interest rate is “indispensable” for taking pressure off the franc, President Thomas Jordan said.

IMF director urges governments to ‘pick up the growth baton’

The global outlook had weakened over the last six months, made worse by China’s slowdown, lower commodity prices and the prospect of financial tightening for many countries, she said. “Emerging markets have largely driven the recovery and the expectation was that the advanced economies would pick up the growth baton. That has not happened.”

Gold & Silver

Click to read the PM Daily Market Commentary: 4/5/16

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

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4163
Default Tsunami Brewing

Default Tsunami Brewing

Bloomberg-7 hours ago
The amount of defaulted debt in emerging markets is unprecedented. ... as high as 22 percent in the five years following severe banking and sovereign crises.

The Coming Default Wave Is Shaping Up to Be Among Most Painful

Bloomberg-14 hours ago
"We've had more corporate debt than ever, and more leverage than ever, which increases ... Newfleet had $11 billion under management as of December 31.

Entitlements eat up almost two-thirds of US taxpayer money

KFDA-5 hours ago
Federal employee and military retirement costs taxpayers $168 billion in FY 2015. ... debt ate up the remainder of the overall budget, 6 percent or $229 billion in ...

Global Bond Yield Plunges to Record-Low 1.3% in Warning Sign

Bloomberg-11 hours ago
A third of the world's developed-market sovereign debt now has negative yields, based on Bloomberg bond indexes, after Europe and Japan cut interest rates ...

'An Odd Time' as Many Government Bonds Trade Below Zero Yields

Wall Street Journal-18 hours ago
“This has been the conundrum for central banks,'' said Nick Gartside, international chief investment officer of global fixed income at J.P. Morgan Asset ...

World Bank says Russia crisis to send poverty to highest in decade

Reuters UK-9 minutes ago
... out of a population of over 140 million, the World Bank said, the largest increase in poverty since the 1998-99 crisis that included a sovereign debt default.

The global liquidity trap turns more treacherous

Financial Times - ‎8 hours ago‎
The unintended consequence of many central banks pushing negative interest rate policy is conjuring deflationary headwinds, stronger currencies, and slower growth — the exact opposite of what struggling economies need. But when monetary policy is the ...

Germany's Auction of Negative-Yielding Notes Highlights Gloom

Bloomberg-4 hours ago
... European Central Bank cut its main interest rates and increased the monthly size of ... Negative yields have proved to be no major deterrent in auctions so far.

Japan to print more high-denomination banknotes

Inside Japan Tours-2 hours ago
Changes to taxation laws in Japan have left people keen not to put their cash into banks, where they will receive negative nominal interest rates anyway.

Japan bond market 'exhausted' as central bank chief's stimulus ...

Gulf Times-21 hours ago
Yields have tumbled below zero on maturities up to a decade following the central bank's surprise decision this year to implement negative interest rates, after ...

Venezuela's second exchange rate weakens 30 pct since March

Reuters-17 hours ago
Its value, on the central bank's website under its old name of SIMADI, is currently 299.9898 bolivars per dollar. (goo.gl/LTkixe). President Nicolas Maduro blames ...

Currency Traders Brace for Wild Ride as Volatility Curves Invert

Bloomberg-15 hours ago
... before Chair Janet Yellen reiterated that the central bank should “proceed cautiously” in raising rates. Global developments -- particularly regarding China and ...

South Korea's Total Liabilities Close to 5500 Trillion Won

BusinessKorea - ‎12 hours ago‎
As of the end of last year, the household liabilities reached 1,207 trillion won or so, breaking the 1,200 trillion won mark for the first time ever. Besides, South Korean enterprises' total debts hit 2,347 trillion won at the end of the first quarter ...

Puerto Rico's Senate Declares Debt Moratorium

New York Times-15 hours ago
The Old San Juan cemetery in Puerto Rico. The island's Senate on Tuesday voted to stop repaying the government's $72 billion debt. Credit Victor J. Blue for ...

University, vocational training debts to skyrocket costing budget ...

ABC Online-15 hours ago
The Federal Government is preparing to write off billions of dollars of higher education loans as the number of bad debts soar.

Fitch downgrades Louisiana state debt amid budget turmoil

Reuters-17 hours ago
Fitch downgraded the state of Louisiana debt on Tuesday, citing persistent fiscal ... starting in July, which is down from $2 billion identified earlier this year.

Illinois marked 14th straight budget deficit in FY 2015: audit

Reuters-20 hours ago
The nation's fifth-largest state ended fiscal 2015 on June 30 with a general fund deficit that grew to $6.9 billion from $6.7 billion in fiscal 2014, the comprehensive ...

 

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
Microbes in soil not very adaptable to changing conditions

Implications for warming weather in agricultural areas

"A 17-year study into the effect of global warming on microbes – the tiny bacteria, fungi and other micro-organisms that determine soil health – reveals them to be far less adaptable to changing conditions than expected. It raises concerns the microbes will not be able to carry out essential functions, such as breaking down leaves and other organic matter in a process which converts them into nitrogen and other nutrients that plants need to grow."

http://www.independent.co.uk/environment/climate-change/soil-crisis-brou...

 

LesPhelps's picture
LesPhelps
Status: Platinum Member (Offline)
Joined: Apr 30 2009
Posts: 797
[quote=Christine Lagarde]The
Quote:

The world economy would be worse off without negative interest rates, according to International Monetary Fund Managing Director Christine Lagarde.

Talk about "throw granny under the bus!"

Not to mention me and everyone else who lives on their savings.

Perhaps we are up to a Fargo, chop granny up and throw her in the wood chipper.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2839
Fargo...
LesPhelps wrote:

Perhaps we are up to a Fargo, chop granny up and throw her in the wood chipper.

Best not be wasteful...

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4163
Helicopter money is closer than you think

Helicopter money is closer than you think

The Guardian (blog)-1 hour ago
At this point, politicians opt for the helicopter money approach. That's where central banks print money so that finance ministries can hand it out to citizens in the ...

Moody's: U.S. pension liabilities moderate in relation to Social ...

Pensions & Investments-19 hours ago
The securities held by the funds are excluded from the public debt held by the ... estimate by $1.8 trillion because of certain adjustments adopted by Moody's.

ECB Could Launch New Stimulus, Says Bank's Chief Economist -- Update

Nasdaq - ‎5 hours ago‎
He also stressed that the ECB's 25-member governing council isn't discussing helicopter money, a possible policy move touted by some economists as an answer to ultralow inflation. The policy gets its name from an essay by Milton Friedman in 1969 that ...

ECB underlines readiness to act as Draghi says no surrender

Chicago Tribune-50 minutes ago
Since the ECB last month cut rates to record lows and added corporate debt to the ... Even with more than 1.7 trillion euros ($1.9 trillion) in quantitative easing ...

Spain Bonds in Longest Slump Since Draghi's `Whatever It Takes'

Bloomberg-2 hours ago
The losses in peripheral debt are coming even as the ECB recently expanded ... Spain's sovereign securities lost 0.4 percent in the week through Wednesday, ...

Yen Intervention Looks Futile for JPMorgan After Picking Rally

Bloomberg - ‎7 hours ago‎
The yen's rally picked up momentum in April, undermining Kuroda's attempts to stoke inflation and thwarting his expectations that introducing negative interest rates in January would weaken the exchange rate. The currency's surge has put traders on ...

Japan to print additional ¥10000 bills as more people stash their ...

The Japan Times-8 hours ago
... rather than in banks, because interest rates on deposits have fallen to almost zero after the Bank of Japan introduced a negative interest rate in February.

Japan's low rates raise corporate pension burdens, cut valuations

Reuters-6 hours ago
Record low debt yields increase corporate pension liabilities ... for example, in March cut is operating profit target for fiscal year 2018 to 6 billion yen ($55 million) ...

China's debt is growing faster than its economy and analysts said there's no quick fix

South China Morning Post - ‎6 hours ago‎
Analysts said there is “no quick fix in sight” for China's total debt which is estimated to be US$25 trillion (HK$194 trillion) and that slower economic growth means that growing debt will continue to exceed economic expansion. That's despite having ...

Hong Kong Faces Ghosts of the Asian Financial Crisis, Daiwa Says

Bloomberg - ‎9 hours ago‎
In a bearish take on the financial hub, Daiwa forecasts "enormous stress" ahead as money heads out amid a global U.S. dollar debt deleveraging, China's economy slows and currency weakens, U.S. interest rates increase, and domestic property prices slump ...

Drillers Go Rigless as Gas Price Collapse Heralds Austerity Era

Bloomberg-3 hours ago
Some are eyeing asset sales to help pay down debt, with Chesapeake announcing in February that it plans to offload another $500 million to $1 billion in ...

Deficit-laden Illinois' infrastructure is crumbling

Chicago Tribune-17 hours ago
... half its license plate fees and more than double its motor fuel tax to finance $43 billion worth of repairs and improvements. (Anthony Souffle / Chicago Tribune).

US cities facing issues over pension packages

Marketplace.org-2 hours ago
A task force aimed at preventing Philadelphia from going bankrupt has urged the city's mayor to figure out how to deal with its almost $6 billion pension deficit.

State Treasurer Calls Increase in Taxes Inevitable Without Benefits Reforms

NJ Spotlight - ‎10 hours ago‎
To address employee-benefit costs, Christie has called for a new round of benefits changes in the wake of a bipartisan reform law passed in 2011. He wants to freeze enrollment in the current pension system and force employees to accept less generous ...

SPECIAL REPORT-Puerto Rico's other crisis: impoverished pensions

Reuters-11 minutes ago

Today, TRS and the other main pension fund, the Employees Retirement .... Puerto Rico's pensions carried big unfunded liabilities nearly from the outset, ..

 

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