Daily Digest

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Daily Digest 6/16 - NZ Is A 'Nation Of Debt', AZ Could Be Out of Water in Six Years

Thursday, June 16, 2016, 10:18 AM


Nation of Debt: New Zealand sitting on half-trillion-dollar debt bomb (richcabot)

Reserve Bank figures show household debt, excluding investment property, has risen 23 per cent in the past five years to $163.4 billion. Incomes have risen only 11.5 per cent.

Households are now carrying a debt level that is equivalent to 162 per cent of their annual disposable income - higher than the level reached before the global financial crisis.

Investors hold biggest cash pile since 2001 as world gloom deepens (lambertad)

Risk appetite fell to its lowest level in four years, consistent with recession, although growth and profit expectations hit a six-month high and inflation expectations a one-year high, BAML's global fund manager survey showed.

Libyan Fund Claims Goldman Sachs Exploited Its Financial Naïveté (richcabot)

On Monday, Roger Masefield, a lawyer for the Libyan Investment Authority, argued that Goldman used training programs; gifts; trips to Dubai, London and Morocco; and an internship for the younger brother of the fund’s deputy executive officer to win favor and convince the fund to engage in the investments.

The biggest questions about gun violence that researchers would still like to see answered (jdargis)

This ignorance is partly by design. Since the 1990s, Congress has prevented various federal agencies from gathering more detailed data on gun violence. The Centers for Disease Control and Prevention (CDC), which has elaborate data gathering and monitoring programs for other public health crises like Ebola or heart disease, has been dissuaded from researching gun violence. The Bureau of Alcohol, Tobacco, Firearms, and Explosives can't distribute much of its trace data for research purposes. Obamacare limits doctors' ability to gather data on patients' gun use.

Malcolm Gladwell: Why mass shootings, like Orlando's club attack, keep happening (thc0655)

"These shootings feed on each other. And each time someone commits an act, an atrocity like this, it makes it easier for the next person to do it," Gladwell told CNBC's "Squawk Box" on Tuesday.

"This is kind of a well-known theory in psychology, which is the threshold theory," he explained. "[It] says each of us have a different threshold for doing something unusual or heinous. The more these events happen, the lower the threshold gets."

Gold Bull Or Bear Market: Why June 2016 Is The Most Important Month Of The Decade (Taki T.)

Although the long term chart (above) clearly shows the bear market resistance trend line, it becomes much clearer on the shorter term chart (below). The trend channel which represents the bear market since 2013 is shown on the chart. So far, we have seen several attempts to structurally break through that resistance line, but those attempts have failed. This is similar to the pattern we saw last November and December (red arrow on the chart), where gold showed a number of breakdown attempts which were also false. June 2016, however, seems to become decisive for gold.

A Whiff of Sulphur (Bob W.)

Still more encouraging is an evolving set of tax rules introduced in 2010 with incentives for improvements to existing stores and restaurants. These expenses can be claimed as depreciation on a 15-year schedule, yielding deductions even more generous than those allowed on new construction during the 1960s-70s.

The same rules apply to new restaurant construction and to improvements in leased property (such as the build-out required to open a store in a shopping mall.) An unrelated rule allows theme parks to be depreciated over 12.5 years.

Arizona Could Be Out of Water in Six Years (richcabot)

If upstream states continue to be unable to make up the shortage, Lake Mead, whose surface is now about 1,085 feet above sea level, will drop to 1,000 feet by 2020. Under present conditions, that would cut off most of Las Vegas’s water supply and much of Arizona’s. Phoenix gets about half its water from Lake Mead, and Tucson nearly all of its.

'Biblical' moth influx threatens to devastate crops (richcabot)

The Twitter feed @migrantmothUK reported a two mile cloud of moths on Saturday night near Leominster. One subscriber to the feed reported that it was like "driving through rain".

Steve Nash, who administers the feed, said much worse was yet to come.

Wall Street Journal accepts environmentalist ad but charges extra (Michael W.)

The Partnership for Responsible Growth, based in Washington, approached the Journal last month with plans to run 12 ads, in print and digital form, promoting a proposed fee on carbon-fuel producers. It sought to place its print ads on the newspaper’s op-ed page, where columns blasting environmentalists in general and climate-change activism in particular are standard fare.

May marks one more record hot month for the world (Michael W.)

So far this year every month has been record warm. February and March actually set consecutive records for the most anomalously warm month, according to data from the National Oceanic and Atmospheric Administration (NOAA). February retained that record by NASA’s reckoning.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/15/16

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."


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Traders play $10 trillion musical chairs

End Is Nigh for Japan Yield as Investors Chase 40-Year Toward 0%

Bloomberg-14 hours ago
Japan's sovereign debt rally will push yields on the nation's 40-year bonds, its longest maturity, below zero in about two months if it keeps up at the current pace.

Fed's Bullard: Only one rate hike needed through 2018

CNBC-2 hours ago
"An older narrative that the bank has been using since the financial crisis ... rate is eroding the central bank's credibility and causing distortions in the market.

Traders play $10 trillion musical chairs game as bond yields plunge

The Sydney Morning Herald - ‎6 hours ago‎
To make money in today's bond market, keep finding the greater fool. That's the strategy driving traders to bid up global sovereign debt even as yields fall to record lows and as over $US8 trillion ($10.8 trillion) of government securities yield less ...

ECB Bubble Means Sovereign Bonds Aren't Worth It, Swiss Re Says

Bloomberg-1 hour ago
The global pile of negative-yielding debt has swelled to $8.8 trillion, according to the Bloomberg Global Developed Sovereign Bond Index. Rates on ...

Treasury Will Sell $183 Billion in Debt

Wall Street Journal-16 hours ago
The Treasury Department will auction $183 billion in securities next week, comprising $134 billion in new debt and $49 billion in previously auctioned debt.

Illinois budget impasse hits $550 million bond sale

Reuters-19 hours ago
... and huge $111 billion unfunded pension liability in the fifth-biggest U.S. state. ... in recent days, driven by cash-heavy investors chasing low supply of debt.

Corporate default picture gets no help from vulnerable oil bounce

MarketWatch-21 hours ago
Fitch forecasts the large majority — $70 billion — will come from the energy and ... Fitch and rival debt ratings agency Moody's agreed that an uptick in crude oil ...

Brazil Expected to Register Negative Fiscal Results in 2017

The Rio Times-2 hours ago

Economists say Brazil's deficit problem is hindered by the drastic decrease in ... Officials estimate that the primary budget deficit will reach R$170.5 billion in

No Food, No Teachers, Violence in Failing Venezuela Schools

ABC News-1 hour ago
The soaring crime and economic chaos stalking Venezuela is ripping apart a once-up-and-coming school system, robbing poor students such as Maria of any ...

Venezuelan asylum claims in the US soar as economic crisis deepens

The Guardian - ‎21 hours ago‎
Venezuela first cracked the top 10 asylum-seeking nations in February 2014 when a bloody, months-long street protest movement seeking to oust the socialist administration kicked off. But back then, amid the widespread jailing and harassment of ...
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Global Temps in ‘New Neighborhood’
The last 13 months, including May, have all been record warm, according to the National Oceanic and Atmospheric Administration, an unprecedented streak in the record book.
The May record came despite an easing in global temperatures from their El Niño-fueled peak, and it increases the likelihood that 2016 will surpass 2015 as the hottest year in the books.


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