Daily Digest

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Daily Digest 5/25 - Health Care Costs Rise For Families, Crude Debt Cripples Poorer Oil Producers

Wednesday, May 25, 2016, 10:09 AM

Economy

Price of corn flour in Venezuela up 900%

Venezuelans on Tuesday, May 24, woke up to discover that the government-controlled price of corn flour – used to make corn patty arepas, a staple of local cuisine – has risen 900%.

Some rates in Georgia insurance exchange could soar in 2017

Blue Cross and Blue Shield of Georgia, whose proposed increases average from 9.1 percent to 14.8 percent, will offer health plans statewide. Aetna, through its Coventry unit, will have plans across almost all of the state.

Health-care costs for families top $25,000 — triple 2001

The $25,826 in health-care costs for a typical family of four covered by a employer-sponsored "preferred provider plan" is $1,155 higher than last year, and triple what it cost to provide health care for the same family in 2001, the first year that Milliman Medical Index analysis was done.

Debt repayments in crude cripple poorer oil producers

Poorer oil-producing countries which took out loans to be repaid in oil when the price was higher are having to send three times as much to respect repayment schedules now prices have fallen. This has crippled the finances of countries such as Angola, Venezuela, Nigeria and Iraq and created a further division within the Organization of the Petroleum Exporting Countries.

Puerto Rico Governor Says Budget Will Omit Bond Payments

“Paying the debt in its totality would have meant taking health benefits away from more than a million people, or having to fire countless police officers and closing the Centro Medico” health facility, Garcia Padilla said during a televised address. Or, he said, “going without school transportation and garbage collection.”

Pension debt for Chicago city-worker pensions doubles to more than $21 billion

According to the 2015 actuarial reports of Chicago’s municipal-workers and laborers pension funds, over the last year Chicagoans have become saddled with an additional $13.2 billion in pension debt. The two city-run funds now owe more than $21 billion in unfunded liabilities – or $20,500 per city household. The laborers pension system is now only 33 percent funded

PDVSA Offers Debt Exchange to Service Providers (Venezuela)

The bond issue would raise the financial burden for a government already struggling to meet its international obligations. The Venezuelan government and PDVSA are due to make about $6 billion worth of bond payments through the end of the year, obligations which consultancy Sintesis Financiera believes can only be met by cutting imports of basic goods to the lowest per capita levels since the 1950s.

Report: Illinois continues to hide billions in hidden pension debt

While the Illinois comptroller’s Comprehensive Annual Financial Report for fiscal year 2015 puts the state’s net pension liability at $108.6 billion, Truth in Accounting’s analysts say that figure is underreported by about $8.1 billion, meaning Illinois’ unfunded pension liabilities are actually $116.7 billion.

Yet ANOTHER Greek bailout! Angela Merkel approves £9 BILLION fund for debt-ridden Greece

ANGELA Merkel has assured Greece it can expect to receive around £9 billion in emergency loans today - after the debt-addled country's government promised to tighten its belt with a series of new austerity measures last weekend.

Chancellor suffers double blow as Government borrows more than expected (UK)

Public sector net debt, excluding public sector banks, now stands at almost £1.6 trillion, or 83.3pc of gross domestic product (GDP).

Why U.S. companies aren't as rich as you think

Talk about being cash rich but debt poor. U.S. companies only hold 28 cents in cash for every dollar they must repay in debt, the lowest cash-to-debt ratio since the financial crisis wound down in 2009. It's even uglier situation if you exclude the 1% richest companies, The other 99% of the less fortunate companies only have 15 cents in cash for every $1 in debt they owe.

‘Massive Bailout’ Needed in China, Banking Analyst Chu Says

While Chu is on the bearish side of the debate about the outlook for China, she’s not alone. In a report on Monday, Societe Generale SA analysts said that Chinese banks may ultimately face 8 trillion yuan ($1.2 trillion) in losses and a bailout from the government, citing the scale of soured credit within state-owned enterprises.

Chinese banks sitting on $1.7 trillion debt time bomb

Put another way, 60 per cent of capital in China's banks is at risk as authorities start the delicate and dangerous process of reining in the debt-bloated and unprofitable state-owned enterprise (SOE) sector.

Japan, Canada agree on need for fiscal stimulus to boost economy

The agreement comes as Abe seeks to strike an accord with his G-7 peers, including Canada, on coordinated fiscal action toward spurring world economic growth at the summit, though he may face opposition from Germany, which insists on fiscal discipline.

Negative Rates Prompt Japan Banks to Opt Out Via Derivatives

The BOJ’s radical stimulus has already dragged yields on more than 70 percent of Japanese government bonds to below zero, meaning that investors will have to effectively pay a fee to hold such debt to maturity.

China lacks urgency about its debt problem, IMF says from Hong Kong

“We are now looking at a long-term decline in productivity capacity for China. We are not just looking at a decline from 10 per cent growth to 6.8 per cent right now but potentially a much lower figure going forward,” said Sally Chen, resident representative at the IMF’s office in Hong Kong who arrived in the eye of the storm of yuan-led global market turmoil in January. She said the current decline in growth in China is not just cyclical but also structural.

Gold & Silver

Click to read the PM Daily Market Commentary: 5/24/16

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."

7 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Venezuela Gold Holdings Shrink 16% as Maduro Battles Crisis

Venezuela Gold Holdings Shrink 16% as Maduro Battles Crisis

Bloomberg-11 hours ago
In February, Trade Minister Jesus Faria said every debt payment this year was guaranteed, including those near term, as well as in October and November.
 

Loan defaults spike at Gulf banks after oil slump

CNBC-6 hours ago
The regulations were expected to have significant impact on banks' operations and possibly raise impairment requirements, according to a UAE central bank ...

US Credit Card Debt To Reach $1 Trillion This Year

NPR-19 hours ago

U.S. credit card debt is about to tip over the $1 trillion mark. NPR's Audie Cornish talks to Mike Calhoun, president of the Center for Responsible Lending, about .

Draghi in QE Quandary After Draining Bond Market by $800 Billion

Bloomberg - ‎15 hours ago‎
The biggest buyer of European government bonds may have to start spreading its money around a bit more widely. QuickTake Europe's QE Quandary. The European Central Bank expanded the size of its debt-buying program in April by a third to 80 billion ...

Brazil's Congress Approves Revised Budget With A Fiscal Deficit

Wall Street Journal - ‎4 hours ago‎
SÃO PAULO—Brazil's congress approved on Wednesday a revised budget plan for the rest of this year, allowing a government deficit worth 170.5 billion reais ($48 billion), marking a political victory for acting President Michel Temer. After a session of ...

Connecticut pays more to borrow following downgrades

Reuters-19 hours ago
Fitch Ratings and Standard & Poor's cut Connecticut's debt rating one notch to 'AA-' ... The firm manages $464 billion of assets, including $24 billion in municipal ...

Burned Indian Bankers Turn Scrooges After Bad Loans Swell Losses

Bloomberg-10 hours ago
Twelve Indian state-run banks reported combined losses of 206 billion rupees ($3.1 billion) for the March quarter, hurt by surging bad debts. That's made banks ...

NYC faces $3.8B budget gap by 2019, bigger than mayor's claim

New York Daily News-16 hours ago
The city will face a $3.8 billion budget gap by 2019 — bigger than Mayor de Blasio ... the rest is automatic savings on items like lower interest payments on debt.

Illinois's lost year about to become two as budget cliff nears

Chicago Tribune-1 hour ago
Without any agreement to close the deficit, Illinois has been spending about $500 million ... That tab is projected to grow to $10 billion by July if nothing is done.

As housing costs rise, homeowners struggle to keep up with bills

Business in Vancouver-May 24, 2016
In Vancouver, the average mortgage debt was $259,000, which was the highest ... had planned and having to downgrade their standard of living, Manulife said.

China's small banks report big jump in bad loans

Financial Times-6 hours ago
Debt levels in China's $29tn banking system has been described by some ... more than 20 per cent of their loan books were at risk of missed payment or default.

Baby Boomers Will Become Sicker Seniors Than Earlier Generations

NPR-12 hours ago
The report looks at the current health status of people ages 50 to 64 and ... Health care costs for people with diabetes are about 2.5 times higher than for those ...

Arkansas' largest health insurer seeks 14.7% uptick in premiums

Arkansas Online-7 hours ago
QualChoice Health Insurance and St. Louis-based Centene Corp. also have requested premium increases: an average of more than 23 percent for QualChoice ...

Avalere: 2017 ACA Premium Requests Up 16 Percent in 9 States

Bloomberg BNA-2 hours ago
May 24 — Average premium requests for 2017 for the most popular type of ACA ... care plans, such as those offered by Centene Corp. and Molina Healthcare ...

Houston pension fund's leader ousted without explanation

Houston Chronicle-15 hours ago
Houston's municipal pension board has pushed the fund's director out of her post without ... The city's unfunded pension liability has reached $5.6 billion.

 

newsbuoy's picture
newsbuoy
Status: Silver Member (Offline)
Joined: Dec 10 2013
Posts: 228
Healthcare costs but what about access?

The wealth transfer via healthcare insurance and big Phx beneficence (ie costs) is on-going but somewhat less discussed and as important is access to healthcare. Latest news on that in NYC where we are being "transformed" into something wonderful. Into what? you may ask, into something wonderful

Beth Israel Hospital Will Close Over the Next Four Years, Officials Say - Gramercy - DNAinfo New York

Meanwhile, population has already reached the 8.5 million souls predicted for 2020.

https://suburbanstats.org/population/how-many-people-live-in-new-york

So as per the recent podcast, when should we leave?

Where do we go (over 60)?

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2237
Criminal Bankers Threaten Entire World Economy-Helen Chaitman

On USA WatchDog, http://usawatchdog.com/criminal-bankers-threaten-entire-world-economy-helen-chaitman/

Helen Davis Chaitman was the lead attorney representing the victims of the $65 billion Bernie Madoff scam. Madoff had help form JP Morgan Chase Bank, and what she found out was stunning.  Chaitman explains, “JP Morgan Chase was the subject of a criminal complaint . . . it was charged with a criminal violation of the Bank Secrecy Act, which is a felony violation.  JP Morgan Chase disgorged a small percentage of the profits it made on the Madoff relationship, and the government called it quits.  Nobody was fired.  Nobody disgorged bonuses, they just went on doing other crimes.”

Chaitman, who wrote a book called “JP Madoff,” documented that JP Morgan Chase paid nearly $36 billion in fines for various crimes just in the last four years. Chaitman says all the big banks are basically criminal organizations, and “all of them regularly engage in fraud.” Chaitman also says, “I could have written this book about HSBC, Bank of America or Citi Group.  All the banks, and the government encourages them to do this, all of the banks have been operating like criminal enterprises. . . . The bankers have become such criminals it threatens the entire world economy.”

KennethPollinger's picture
KennethPollinger
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 653
Health Resilience

As we constantly need to pay more for health insurance and medication, I believe it's time we take our health into our own hands.  Whether practicing yoga, meditation, walking or just plain old relaxation techniques, there are still other alternatives available.  I hope this post is a start in offering such assistance.

The Health Sciences Institute has published a magnificent book addressing these problems.  Not only are there alternatives available but also there are research papers listed along with WHERE they can be obtained and the PRICE. Having recently received a stint in one artery, I was fascinated to read Part III: Heart, with 9 short chapters concerning heart disease.  Please try the book.

Miracles from THE VAULT: Anthology of Underground Cures, by Jenny Thompson  www. HSIonline.com Good Luck!

 

Edwardelinski's picture
Edwardelinski
Status: Gold Member (Offline)
Joined: Dec 23 2012
Posts: 309
Prime minister Abe confirms our worst fears

In his speech he warns that the world may beheaded for another Lehman event.This time in the energy space.The informed already knew this.When a world leader lays this out,be afraid...

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Brazil's Rio de Janeiro State Misses Debt Payment

Podemos Wants to Talk to Investors About Easing Spain's Debt

Bloomberg-6 hours ago
With 53 percent of sovereign debt held outside the country, Spain is paying almost ... as 1.7 trillion euros into European debt markets in a bid to revive inflation.

Gross Says Central Bank Forgiving Debt Is Only Endgame for Japan

Bloomberg-14 hours ago
Billionaire bond investor Bill Gross said the only way for Japan to eventually cut its debt burden is for the central bank to acquire it and forgo repayment, ...

10000 elderlies' assets seized in lieu of nursing care premiums (Japan)

Asahi Shimbun-10 hours ago
10,000 elderlies' assets seized in lieu of nursing care premiums ... 10,000 since the Ministry of Health, Labor and Welfare began keeping track in fiscal 2012.

China Says It Has Room to Increase Debt to Boost Economic Growth

Bloomberg-44 minutes ago
Overall risks associated with government debt, which amounted to 26.66 trillion yuan ($4.1 trillion) at the end of last year, are under control, the ministry said in a ...

Brazil's Rio de Janeiro State Misses Debt Payment

Wall Street Journal-May 25, 2016
Rio has 72 billion reais in debt with Brazil's federal government and owes another 35 billion reais to public banks and international lenders including the ...

Insurers Seek Big Premium Boosts

Wall Street Journal-15 hours ago
Big health plans stung by losses in the first few years of the U.S. health law's ... such as HealthCare.gov or state equivalents won't feel the full impact of premium ...
 
 
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ejhr's picture
ejhr
Status: Bronze Member (Offline)
Joined: Jun 28 2014
Posts: 33
corn in Venezuela

Simple solution - at no cost to taxpayers.

The government should ration corn supplies and make it free [at least the ration amount free].

It doesn't cost the government of the population, taxpayers etc anything to do this. The government does not need the money and can always pay suppliers whatever the costs. And people need to eat, but cannot afford any such expensive price.

Venezuela could issue coupons for whatever is risking being hoarded or running out.

It will keep the citizens from violence, so it's cheap at 2x the price.

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