Daily Digest

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Daily Digest 4/19 - Belgian Banks Paying Interest to Mortgage Borrowers, 2016 Already Showing Record Temps

Tuesday, April 19, 2016, 11:48 AM

Economy

An 11 on the Nutty Scale: Belgium Banks are Paying Interest to Mortgage Borrowers (Aaron M.)

The IMF’s Jose Vinals – in the background it says “financial stability”, so this is presumably a snapshot from his second career as a stand-up comedian. Meanwhile, in his main career, he apparently isn’t even able to get his facts straight. We are used to the IMF’s well-documented utter inability to forecast the future, but now they apparently can’t even forecast the past anymore…

Goldman First-Quarter Profit Plunges 60% as Revenue Drops (Adam)

Blankfein is trying to ride out a years-long bond-trading slump that’s been compounded by market swings and stiffer regulations -- challenges that forced many competitors to scale back. He’s embarked on the biggest cost-cutting push in years, following his largest competitors who have turned to expenses as the only lever to pull in an environment of deteriorating revenue.

Did The New York Primary Campaign Change Anything? (jdargis)

Two weeks ago, according to the survey data, Trump had a huge advantage in New York over his Republican rivals, and Clinton was leading Sanders by double digits. Today, the picture is virtually the same. According to the RealClearPolitics poll average, Trump is currently leading Kasich by about thirty percentage points, and Clinton is ahead of Sanders by twelve points. As the following charts demonstrate, this situation hasn’t changed much over the past few weeks: the lines showing the candidates’ poll numbers are basically flat.

Cancer Research Is Broken (jdargis)

Many science funders share Parker’s antsiness over all the waste of time and money. In February, the White House announced its plan to put $1 billion toward a similar objective—a “Cancer Moonshot” aimed at making research more techy and efficient. But recent studies of the research enterprise reveal a more confounding issue, and one that won’t be solved with bigger grants and increasingly disruptive attitudes. The deeper problem is that much of cancer research in the lab—maybe even most of it—simply can’t be trusted. The data are corrupt. The findings are unstable. The science doesn’t work.

The most unexpected hospital billing development ever: Refunds (jdargis)

One 49-year-old patient received a $210 refund in February after an appointment left her in tears. “It felt like they didn’t care and did not have her best interest at heart. Pt. stated she came to Geisinger b/c she trusted us, she has no trust now,” according to the financial authorization for the refund.

Gold, Silver And COMEX Outlook For 2016 And Beyond (Taki T.)

Apart from the silver chart setup, another bullish driver for precious metals is the price of the US dollar. As we will see below, the US dollar is looking quite bearish. How comes? A bearish US dollar is visible in the bullish chart setups of the major currency pairs: Australian dolllar, Canadian dollar, British Pound. More fundamentally, however, is the fact that the world is awash in US dollar, so at some point that has to reflect in precious metals and commodities.

ISIS Tries To Sow Chaos In Libya To Scare Oil Workers Away (Josh O.)

So far, ISIS—which claims to have established at least three caliphate provinces in Wilayat Fizzan, Barqa and Tarabulus—has not yet taken control of a Libyan oil field. This has led to speculation over whether the group is seeking control or destruction. Destruction, however, is unlikely to be on the books. Militarily, ISIS does not have the capabilities in Libya to launch all-out offensives on these oil fields to gain control. Instead, the group is relying on scare tactics—and there is every indication that it’s working.

2016 Already Shows Record Global Temperatures (jdargis)

But the effects of the current El Niño have been exacerbated by global warming, a result of emissions of greenhouse gases by humans, said Jessica Blunden, a climate scientist with NOAA and lead author of the report.

El Niño is currently on its way out, and ocean temperatures in the tropical Pacific peaked in November, said Kevin Trenberth, a senior scientist at the National Center for Atmospheric Research.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/18/16

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."

12 Comments

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1712
One American manufacturing sector is booming

http://www.infowars.com/boom-surging-gun-sales-create-thousands-of-high-paying-jobs/

Record-breaking gun sales under Obama’s watch have created tens of thousands of jobs with good wages.

Jobs related to the manufacturing and sale of guns increased 73% since 2008 to a nationwide total of 287,986, the National Shooting Sports Foundation revealed.

“These are good jobs, paying an average of $50,180 in wages and benefits, and today every job is important,” the foundation reported. “Not only does the manufacture and sale of firearms and hunting supplies create good jobs in the United States but the industry also contributes to the economy as a whole.”

“In fact, in 2015 the firearms and ammunition industry was responsible for as much as $49.29 billion in total economic activity in the country.”

Ironically, California is second only to Texas in firearm job growth, and another anti-gun state, Illinois, is also in the top 10.

And considering that the surge in gun sales resulted from President Obama’s war on the Second Amendment, the president can finally claim he has indirectly created jobs in the U.S. – although that wasn’t his intent.

“He’s been the world’s best gun salesman,” said Michael Cargill, owner of Central Texas Gun Works. “Everything’s up compared to last year due to the threats of executive actions President Obama has made.”

“When he steps up to the microphone to talk about gun control and the legislation he thinks Congress should approve, gun sales actually soar.”

Cargill also pointed out there’s been an increase in the sizes of his CHL and other gun safety classes, indicating an exploding interest in self-defense overall.

States are also benefitting: business taxes related to gun sales have increase 96% since 2008.

“The broader economic impact flows throughout the economy, generating business for firms seemingly unrelated to firearms,” the NSSF added. “Real people, with real jobs, working in industries as varied as banking, retail, accounting, metal working, even in printing, all depend on the firearms and ammunition industry for their livelihood.”

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
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Posts: 4237
China is one step closer to global gold-price domination

China is one step closer to global gold-price domination

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
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Posts: 2888
Saudi Arabia takes out $10bn in bank loans

Saudi Arabia takes out $10bn in bank loans (Financial Times)

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4237
When the Recession Comes, We Can Always Drop Money Out of Heli

When the Recession Comes, We Can Always Drop Money Out of ...

Bloomberg-4 hours ago
Proving that he has a thick skin, the former Federal Reserve chairman brought up the concept of helicopter money again in a post on his Brookings Institution ...
(Refers to the article below)

What tools does the Fed have left? Part 3: Helicopter money

Default Risk Increases for European Junk Borrowers, Moody's Says

Bloomberg-15 hours ago

The yen rose for the first time this week and U.S. Treasuries gained. ... 11 months, comes as the People's Bank of China signals a reduced appetite for monetary .

Negative Interest Rates Confront Growing Chorus of CEO Critics

Bloomberg-18 hours ago
The chorus of global financial leaders warning about the fallout from negative interest rates is getting bigger. Nobuyuki Hirano, president of Mitsubishi UFJ ...

Japanese yields move further below zero

Financial Times-7 minutes ago
... dipped further into record low territory on Wednesday as the quest for returns intensifies against the backdrop of the central bank's negative interest rate policy.

BOJ's Kuroda signals readiness to top up ETF purchases

Yahoo News-7 hours ago
It held about 7.8 trillion yen (50 billion pounds) of ETFs as of September 2015, ... under which the central bank would underwrite government debt indefinitely so ...

Some 9 percent of top 500 firms found to be 'zombies'

Korea Times-14 hours ago
... costs, measures the company's ability to pay interest on outstanding debt. ... the combined operating loss of the 33 zombie companies reached 5.1 trillion won ...

The steady draining of China's cash reserves

gulfnews.com-15 hours ago
Foreign debt obligations grew rapidly in late 2014 and the first half of 2015, then shrunk ... Chinese customs officials reported $1.68 trillion in imports last year.

China Default Chain Reaction Looms Amid 192 Day Cash Turnaround

Bloomberg-13 hours ago
Spooked by the debt failures, investors in yuan company notes have driven up yields ... At least 70 Chinese issuers have canceled a combined 68.5 billion yuan ...

Emerging market debt mountain grows too large for comfort

Reuters-15 hours ago
The first quarter of 2016 has been prolific for emerging market sovereign issuers with countries and quasi-sovereign names selling $44 billion of debt, the ...

Rio Warns of Fiscal Collapse as Brazil States Seek Debt Relief

Bloomberg - ‎18 hours ago‎
... than compound interest on debts owed to the federal government. The court will rule on the matter April 27, Justice Luiz Edson Fachin said. The change would cost the Treasury 313 billion reais ($88 billion) in lost revenue, according to the Finance ...

Saudi Arabia forced to BORROW $10billion as tumbling oil prices continue

Daily Mail - ‎6 hours ago‎
Saudi Arabia is being forced to borrow $10 billion as the world's top oil exporter seeks to fill a record budget deficit caused by low crude prices. The kingdom had initally been seeking to raise between $6billion and $8billion through a loan lasting ...

South Africa's credit rating to be cut to junk this year: Reuters poll

Reuters-2 hours ago
"A downgrade has been somewhat priced in. Government bond yields are in line with junk status already," said Rajiev Rajkumar, analyst at 4CAST in London.

U.S. junk bond default rate seen rising to near 6 percent -Moody's

Yahoo News-24 minutes ago
As of April 1, the number of bond issuers that Moody's assigns a long-term debt rating of B3 negative and lower matched its all-time peak of 291, which was last ...

Pemex CEO Races to Bring In Partners as Financial Woes Deepen

Bloomberg-1 hour ago
... to oil service providers and absorb some of the company's pension liabilities. ... Asked if he will be able to deliver on a financial deficit target for the year set at ...

 

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
Humans have caused all the global warming since 1950

A new study published in Climate Dynamics has found that humans are responsible for virtually all of the observed global warming since the mid-20th century. It’s not a novel result – in fact, most global warming attribution studies have arrived at the same general result – but this study uses a new approach.

http://www.theguardian.com/environment/climate-consensus-97-per-cent/201...

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2888
An odd coincidence
Tall wrote:

A new study published in Climate Dynamics has found that humans are responsible for virtually all of the observed global warming since the mid-20th century. It’s not a novel result – in fact, most global warming attribution studies have arrived at the same general result – but this study uses a new approach.

http://www.theguardian.com/environment/climate-consensus-97-per-cent/201...

Edit: it's full-on summer here in Seattle.

Jim H's picture
Jim H
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Posts: 2391
Pension funds

This is going to happen eventually to almost all of us with pensions.  This is a difficult part of the waking up process.. to realize that these things cannot be depended on;

https://www.washingtonpost.com/news/get-there/wp/2016/04/20/one-of-the-n...

.......For many workers, the promise of a guaranteed income stream for life — a benefit now nearly extinct for younger generations — was at times strong enough to convince them to sacrifice pay raises or other job opportunities. But after decades of challenges that left many pension funds in tough financial straits, some people are learning in retirement that the promises made to them may have to be broken.

The Central States Pension Fund, which handles the retirement benefits for current and former Teamster union truck drivers across various states including Texas, Michigan, Wisconsin, Missouri, New York and Minnesota, was the first plan to apply for reductions under the new law.

Consumer advocates watching the case say the move could encourage dozens of other pension plans across the country that are facing financial struggles to make similar cuts......

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1712
That's not global warming T2H

That's friction in the Cascadia subduction zone heating the earth under your feet. But don't worry too much about the overheating earth. I'm predicting you'll get a marvelous cooling effect from a 40' wave of seawater pouring over your landscape before too long. wink

darcieg76's picture
darcieg76
Status: Bronze Member (Offline)
Joined: Jan 3 2016
Posts: 78
It'll be back to spring in a

It'll be back to spring in a few days, just in time for not being at work. :-p

davefairtex's picture
davefairtex
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5686
pensions

Armstrong posted today on negative rates, and how that was destroying pensions.  But the juicy bits come one paragraph in, where he claims that "behind the curtain" the state government pension funds are lobbying the Federal Government to be able to take over existing residents 401k plans, forcing all citizens to contribute in order to rescue the government workers from the underfunded plans.  [emphasis mine]

https://www.armstrongeconomics.com/armstrongeconomics101/basic-concepts/central-banks-are-trapped-higher-interest-rates-the-only-answer/

We will be putting out a very important special report. Behind the curtain, state pensions are lobbying Congress to make it MANDATORY for everyone (not just government employees) to contribute to state pension systems. They want to takeover your 401K, manage everything, and rob your savings to pay for unfunded liabilities to state workers. This is how they are looking to bail themselves out — it will be the dark side post-2017. All of this is going on right now but it is still hush-hush.

If you are no longer a resident of the state, does that fix the problem?

These guys are desperate.  And of course, they want us to pay.  "I'll gladly give you a pension next Tuesday, for a 401k full of cash today."  And here I thought it was going to be the Feds swiping my actual saved retirement cash in exchange for a promise...

I'm sure that won't be deflationary.

darcieg76's picture
darcieg76
Status: Bronze Member (Offline)
Joined: Jan 3 2016
Posts: 78
It'll be back to spring in a

It'll be back to spring in a few days, just in time for not being at work. :-p

MarkM's picture
MarkM
Status: Platinum Member (Offline)
Joined: Jul 22 2008
Posts: 855
Is the stadium half full?
davefairtex wrote:

Armstrong posted today on negative rates, and how that was destroying pensions.  But the juicy bits come one paragraph in, where he claims that "behind the curtain" the state government pension funds are lobbying the Federal Government to be able to take over existing residents 401k plans, forcing all citizens to contribute in order to rescue the government workers from the underfunded plans.  [emphasis mine]

https://www.armstrongeconomics.com/armstrongeconomics101/basic-concepts/central-banks-are-trapped-higher-interest-rates-the-only-answer/

We will be putting out a very important special report. Behind the curtain, state pensions are lobbying Congress to make it MANDATORY for everyone (not just government employees) to contribute to state pension systems. They want to takeover your 401K, manage everything, and rob your savings to pay for unfunded liabilities to state workers. This is how they are looking to bail themselves out — it will be the dark side post-2017. All of this is going on right now but it is still hush-hush.

If you are no longer a resident of the state, does that fix the problem?

These guys are desperate.  And of course, they want us to pay.  "I'll gladly give you a pension next Tuesday, for a 401k full of cash today."  And here I thought it was going to be the Feds swiping my actual saved retirement cash in exchange for a promise...

I'm sure that won't be deflationary.

 

https://www.washingtonpost.com/news/get-there/wp/2016/04/20/one-of-the-nations-largest-pension-funds-could-soon-cut-benefits-for-retirees/

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