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Daily Digest 5/18 - Japan Sucked Into Deflation Again, U.S. Debt Dump Deepens

Wednesday, May 18, 2016, 9:19 AM

Economy

Sucked into deflation again - Japan's $2 cup noodle binge is sign of the times

When Abe launched his administration with bold promises to shake Japan from its deflationary torpor, consumer sentiment surged and shoppers splashed out on big-ticket items. But now, opinion polls show a majority of voters are losing faith in "Abenomics", as well as in the BOJ's radical monetary stimulus, and consumer sentiment is weakening.

Hungry Venezuelans Hunt Dogs, Cats, Pigeons as Food Runs Out

The crisis in Venezuela is worsening everyday due in part to shortages reaching 70 percent. This to go along with the world’s highest level of inflation.

Aldermen on board with Emanuel borrowing another $600 million (Chicago)

Bond rating agencies are keeping an eye on the city's precarious finances. Specifically, they want to see whether Gov. Bruce Rauner signs a bill that would stretch out the required contributions to police and fire pension funds, Brown said. If the governor doesn't, the city would have to come up with $220 million before the year is out and more than $1 billion over the next four years.

IMF Proposes Eurozone Debt Relief for Greece Until 2040

The IMF’s push to lock in low interest rates for Greece for decades to come is hard for the eurozone to digest. The bloc’s bailout vehicles, such as the European Stability Mechanism, would then need subsidies from national budgets to cover a part of their own funding costs. IMF staff “like solutions that imply budgetary transfers,” said a European official.

D.C. Metro fare increases cause anger, apprehension

Today, with Metro facing an $18 billion capital deficit, almost daily track fires and threats of federal funding cuts, subway riders are expressing a variety of opinions about possible fare hikes.

Italy 50-year bond: a sign of investors’ confidence or despair?

In spite of aggressive monetary easing policies, eurozone inflation forecasts have been downgraded to 0.2 per cent this year, far from the near 2 per cent target of the European Central Bank. The reduction has in turn helped to push yields down across European bonds, leaving Italian 30-year bonds yielding just 2.65 per cent.

U.S. debt dump deepens in 2016

It’s the fastest pace for a U.S. debt selloff by global central banks since at least 1978, according to Treasury Department data published Monday afternoon. Treasuries are considered one of the safest assets in the world, but some experts say a sense of panic about the global economy drove the selloff.

Gold & Silver

Click to read the PM Daily Market Commentary: 5/17/16

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Online)
Joined: Jul 30 2009
Posts: 4237
Venezuela Braces for Protests as Maduro Warns of Coup

BOJ to expand stimulus by July, yen too strong for economy - Reuters poll

Reuters UK - ‎10 hours ago‎
Asked what steps it would take next, 80 percent of analysts surveyed May 11-17 picked a combination of cutting negative interest rates further and boosting its purchases of government bonds, exchange-traded funds and corporate bonds. Japan's economy ...

Spain's Debt Jumps Most in Century, Topping 100% of GDP: Chart

Bloomberg - ‎1 hour ago‎
The nation's debt has nearly tripled since 2007 as a decade-long housing bubble came to an abrupt end, putting pressure on Spain's public finances in the worst economic crisis in modern history. The country owed 1.1 trillion euros ($1.24 trillion) as ...

US states' unfunded pension costs near $1 trillion in 2013: Pew

The Fiscal Times - ‎19 hours ago‎
Unfunded pension obligations increased from 2.5 percent of personal income in 2003 to 6.9 percent in 2013, the report said. The increase was due to underfunding, lower-than-expected investment returns, and, in some cases, expanded but unfinanced ...

California had nation's 11th highest state debt burden in 2013

Sacramento Bee-20 hours ago
As of 2013, Pew says, California's long-term debt for unfunded pension and health care ... was $344.7 billion, or 18.6 percent of $1.85 trillion in personal income.

Venezuela Braces for Protests as Maduro Warns of Coup

Bloomberg-16 hours ago
... costs, even as the nation sacrifices imports to meet its debt obligations. ... second- and third-biggest economies, each own more than $1 trillion of Treasuries.

Brazil's Petrobras Raises $6.75 Billion From Bond Issue; Pays High Price

Wall Street Journal - ‎4 hours ago‎
SÃO PAULO—Brazilian state-run oil company Petróleo Brasileiro SA, or Petrobras, raised a total $6.75 billion from an overseas bond issue, but it was obligated to pay a high yield to investors, due to its elevated debt. The company issued its bonds via ...

Indian State Banks Post $2 Billion in Losses as Bad Loans Surge

Bloomberg-2 hours ago
The latest was Punjab National Bank, which lost 53.7 billion rupees ... Bad-debt ratio at Punjab National widened to 12.9 percent from 8.47 percent in the ...

BREAKING: New Jersey Now Has $1.1B Budget Hole As Debt ...

Patch.com-1 hour ago
New Jersey has a $1.1 billion budget gap as the debt and pension crisis appears to be worsening, according to officials.

Ontario financial accountability officer warns of more deficits ...

The Province-1 hour ago
LeClair also warns the accumulated deficits and the Liberals' "large infrastructure plans" will add $54 billion over the next five years to the province's net debt, ...

Puerto Rico declares state of emergency for highway authority

Reuters-1 hour ago
Puerto Rico, hamstrung by a surge in emigration and a 45 percent poverty rate, faces $70 billion in total debt. Garcia Padilla previously declared a state of ...

Eurozone Slides Back Into Deflation

Wall Street Journal-6 hours ago

... and an acceleration of its bond purchases to €80 billion ($91 billion) a month. ... as well as the modest pace of the eurozone's recovery from its debt crisis, now ..

Spain and Portugal likely to face fines over deficit

EUobserver - ‎8 hours ago‎
In their letter, Dombrovskis and Moscovici say the commission "supports Italy's ambitious programme of structural reforms" and acknowledges that "reducing the public debt-to-GDP ratio is one of the [Italian] government's key economic policy goals ...
 
 

EU cuts Italy 'unprecedented' slack on budget rules

Yahoo News - ‎21 hours ago‎
The letter confirms that Brussels has granted Italy's demand for spending equivalent to 0.85 percent of its GDP to be effectively stripped out of the calculation of whether Rome is acting fast enough to cut its huge national debt. The Commission said ...

Brazil's new gov't sees primary deficit around 160 bln reais

Reuters-1 hour ago
RIO DE JANEIRO May 18 Brazil's new interim government estimates that its primary budget deficit could hit 160 billion reais ($45 billion) this year, including ...

 

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1712
Change is coming

Change is coming. It must come, because the status quo is unsustainable, and has been so for some time.



How many times will our 'very serious people' with access to the public information channels continue to miss the obvious dissonance of the common reality from the official story that they tell each other about everything from the economy to politics?



At the root of this inequality, hidden as it is in the fog of fine sounding theories and economic models, is simple injustice. 



The longer that change is delayed, the longer that the professional class continues to insulate itself, looking down on the broader public with smug contempt from privileged perches, blinding themselves with hypocritical arguments that deny what is happening all around them, the more disruptive that change will finally be.



And, as always, 'no one,' or at least no one who matters in their world, will have ever been able to see it coming.   Because by definition no one who is an insider can ever publicly admit that the insiders have blown it completely, once again.

 

"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage. Intellectual myopia, often called stupidity, is no doubt a reason.  But the privileged also feel that their privileges, however egregious they may seem to others, are a solemn, basic, God-given right. The sensitivity of the poor to injustice is a trivial thing compared with that of the rich."

John Kenneth Galbraith

http://jessescrossroadscafe.blogspot.com/2016/05/thomas-frank-what-happened-to-party-of.html

Sterling Cornaby's picture
Sterling Cornaby
Status: Silver Member (Offline)
Joined: Sep 5 2012
Posts: 152
locking information on phones

I thought this was an interesting video on the topic of digital locks worth watching

 

 

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Online)
Joined: Jul 30 2009
Posts: 4237
China's Communist Party goes way of Qing Dynasty as debt hits li

Shale debt defaults set to reach scale of telecoms crash, Fitch says

FuelFix (blog) - ‎10 hours ago‎
HOUSTON – The U.S. oil industry is facing a financial crisis on the scale of the telecom crash of 2001, with domestic drillers expected to default on more than one-third of the junk-rated debt they ran up in the last oil boom. Fitch Ratings says the ...
 

Fitch: Another Wave of E&P Bankruptcies Hits Default Rate

Business Wire (press release) - ‎13 hours ago‎
NEW YORK--(BUSINESS WIRE)--The exploration and production (E&P) trailing 12-month (TTM) U.S. high yield bond default rate is at a record 27% due to bankruptcy filings during the past week by four E&P companies: SandRidge Energy, Breitburn Energy, ...
 

MarketsEnergy junk bonds: record defaults, romping returns

Financial Times - ‎12 hours ago‎
This has pushed the overall US high yield default rate up to 4.5 per cent in May, the first time it has topped 4 per cent since July 2010, Fitch notes. So far in 2016, US high yield energy groups have defaulted on debt of $26bn, already smashing the ...

Mozambique Bond Yield Jumps to Record on Debt-Payment Default

Bloomberg-12 hours ago
The southeast African country holds total public debt of $11.64 billion, of which ... is negotiating with lenders to restructure the $535 million loan, Maleiane said ...

China's Communist Party goes way of Qing Dynasty as debt hits limit

Telegraph.co.uk-7 hours ago
Moody's warned this month that China's state-owned entities (SOEs) have alone racked up debts of 115pc of GDP, and a fifth may require restructuring.

Unrest continues to grip Venezuela as president threatens to make opposition-controlled legislature 'disappear'

Los Angeles Times - ‎5 hours ago‎
Venezuela, already reeling from shortages of basic goods and electricity, plunged further into chaos Wednesday as police and opponents of President Nicolas Maduro clashed on the streets of the capital Caracas after Maduro threatened to make the ...

Venezuela hospital that will make you so grateful for the NHS

Metro - ‎18 hours ago‎
These shocking images show the devastating impact Venezuela's financial crisis has had on the country's hospitals. Bleeding patients lay on filthy hospital beds, in squalid wards. Pictures captured by New York Times photographer Meredith Kohut provide ...

5 Year Gold Prices in Venezuelan Bolivars (price per ounce)

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