Daily Digest

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Daily Digest 7/20 - U.S. Gov't Living Dangerously in Debt, Global Economic Output Lowered Post-Brexit

Wednesday, July 20, 2016, 9:27 AM

Economy

Illinois Shutters Failing 'Obamacare' Insurer

Crippled by a nearly $80 million loss in federal funding, the only nonprofit insurer formed in Illinois under the federal health care law shuttered Thursday. The co-op, short for consumer operated and oriented plan, went operational in 2013 with a $160 million loan from the U.S. government.

Rio’s Olympic Hospitals Unable to Take New Patients, Report Says

With its finances in tatters, the state of Rio de Janeiro has delayed salaries to hospital personnel, and there has been a shortage of basic medical supplies. Its fiscal crisis was so acute that the city of Rio, which enjoys more financial stability, took control of two state-run hospitals this year.

Long-Term Care Insurance Premiums Will Increase An Average of 83 Percent on Nov. 1

Some federal employees and retirees with long-term care insurance could see a triple-digit increase in their new premium rates, which take effect on Nov. 1.

Covered California rates set to increase for 2017

Covered California will release its 2017 premium health insurance prices on Tuesday, which are likely to increase by 8 percent......Californians who don't have insurance will be fined $1,000 when it's time to pay their taxes.

Insurers, Pushing for Higher Rates, Challenge Key Component of Health Law

In Texas, Blue Cross and Blue Shield is requesting rate increases of nearly 60 percent for 2017. In Oklahoma, Blue Cross and Blue Shield has proposed increases that average 49 percent. And in Missouri, Humana has filed for a 34 percent increase. All three carriers say they have lost money on many policies sold to individuals and families under the Affordable Care Act.E

UnitedHealth sees further losses for Obamacare insurance

The company said it expected the program, often called Obamacare, to reduce 2016 earnings by about $850 million, up from $475 million in 2015. Next year, it will exit most of the two dozen states where it sells individual insurance on the exchanges but still has plans to sell in Nevada, New York and Virginia.

Premera individual health insurance rates to rise almost 10 percent, even with $55 million help from Alaska

On Monday, Premera Blue Cross announced an average rate increase request of 9.8 percent come January. That's far less than in either 2014 or 2015, when policy rates jumped nearly 40 percent.

Commentary: CalPERS Sinks Further into Fiscal Insolvency

And if one assumes a more realistic 4% rate of return (a “Treasury” or “risk-free” rate) the funded liability for Calpers alone is now $412 billion, or the equivalent of three state general fund budgets, Nation said. For anybody who knows the numbers, and I do, CalPERS is speeding down the track toward financial catastrophe but none of the state’s leading Democrats will even acknowledge that there is a major problem here.

Vehicle output in crisis-hit Venezuela less than 10 a day

A paltry 1,550 new units were manufactured between January and June - the lowest production on record - compared with 10,922 during the same period last year.

Venezuela Food Crisis: One Photo Shows the Strain on Venezuela's Economy in 2016

On Saturday and Sunday, shortages got so bad that the government reopened its border with neighboring Colombia to allow Venezuelans to cross over and buy medical supplies and food, Reuters reported. Taking advantage of the reprieve, officials estimated at least 100,000 people crossed the border over the course of the weekend

The U.S. Government Is Living Dangerously in Debt

Although the U.S. fiscal deficit has been brought back to its pre-crisis levels, federal government debt is 76 percent as a share of GDP, compared with 39 percent in 2008. Using internationally comparable criteria, general government gross debt is now equivalent to 108 percent of GDP

Investors Seek Liaoning Debt Boycott As Bond Default Battle Heats Up

Bond holders burned by the defaults of a state-owned steel maker in Liaoning province are calling for a boycott of all new bond issuances by the local government and provincial enterprises amid increasing frustration at local officials’ efforts to resolve the company’s debt problem.

Preliminary budget for Cook County indicates possible tax hikes ahead

In the announcement, Preckwinkle said there is a projected operating shortfall for the 2017 fiscal year of $174.3 million, which can be attributed to the stall in Illinois state budget, legacy debts and increased technology spending for old and outdated systems.

Drop in Rates Swells Pension Burdens in U.S.

The combined pension deficit for S&P 1500 companies ballooned to $568 billion at the end of June, a $164 billion increase from the end of 2015, according to Mercer, a benefits consulting firm.

45-Second Drill: Illinois budget deficit swells to nearly $8 billion

When Gov. Bruce Rauner took office, he inherited an Illinois budget deficit of $1.6 billion that had been signed into law by his predecessor, Pat Quinn.

Ontario debt to soar by $50 billion over four years: FAO

In a statement Tuesday, the office of Ontario Financial Accountability Officer Stephen LeClair says the province's net debt will jump by $50 billion to $350 billion by 2020-21

China names and shames debtors on huge billboards

China is shaming debtors by putting their names, faces and addresses on public billboards, as increasing numbers of borrowers struggle to pay back loans amid an economic slowdown.

Middle-income families in UK resemble the poor of years past, says IFS

“In key respects, middle-income families with children now more closely resemble poor families than in the past,” the IFS said. “Half are now renters rather than owner-occupiers and, while poorer families have become less reliant on benefits as employment has risen, middle-income households with children now get 30% of their income from benefits and tax credits, up from 22% 20 years ago.”

Russian Consumers Still in Shock as They Cut Back on Food and Medicine

Almost a third of Russians now buy less food than before, while 49 percent admit they save on medicine by ignoring doctor prescriptions if the treatment is too expensive, recent surveys found. Some two-thirds say prices of goods and services bought by their families are rising at double the pace of officially reported inflation if not faster.

More and More Investors Think Central Banks and Governments Will Bring Out the Chopper

Nearly one-third of clients and colleagues surveyed by Citigroup Inc. think that so-called helicopter money could be on its way within a fortnight, as the Bank of Japan meets at the end of July.

PBOC continues to inject liquidity into market (China)

The central bank has adopted repos and other liquidity operations to ease money shortages in the market more frequently this year, rather than cuts in interest rates or the reserve requirement ratio.

Helicopter money 'the obvious solution' to boost moribund economies: Citi's Willem Buiter

Citi's chief global economist Willem Buiter, currently visiting Australia for a series of meetings, said urgent action is needed to short-circuit continued economic stagnation and damaging long-term unemployment.

Helicopter Cash Clues Lie in Life and Death of Japanese Viscount

As former Federal Reserve Chairman Bernanke noted, Takahashi’s money-financed fiscal program worked. Yet turning off the budgetary spigot afterward proved impossible -- with adverse consequences for the nation’s finances and economy.

ECB Fast Exhausting German Bonds for QE Buying as Yields Tumble

The securities that yield less than the ECB’s minus 0.4 deposit rate have grown to more than 60 percent, based on a $1.13 trillion Bloomberg German bond index. That means they’re ineligible for the purchases.

The Hidden Risk to Sovereign Bonds

The Bundesbank dropped something of a bombshell this week. The eurozone's most influential central bank and the guardian of all things sacred to monetarists, suggested that sovereign bonds should contain clauses that would automatically delay repayment to investors for countries in financial difficulty.

IMF lowers global economic outlook after Brexit vote

The IMF cut its U.S. outlook slightly in 2016, to 2.2% this year from 2.4%. That’s still a touch more optimistic than the Federal Reserve’s projection of 2% growth for the U.S. in 2016.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/19/16

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: 4064
Calstrs Investments Gain 1.4% as Pension Fund Misses Goal

Calstrs Investments Gain 1.4% as Pension Fund Misses Goal

Bloomberg - ‎17 hours ago‎
U.S. pension funds have struggled to meet investing goals amid stock volatility, shrinking bond returns and slowing emerging-market growth at a time when retirees are living longer and health-care costs are rising. Long-term unfunded liabilities may ...

Covered California Monthly Premiums to Increase by More Than 13 Percent

NBC Bay Area - ‎18 hours ago‎
Covered California sells health plans to about 1.4 million people who don't get coverage from an employer or from the two large government-funded programs, Medicare and Medi-Cal. The exchange is a central piece of Obama's health insurance overhaul, ...

 

Tall's picture
Tall
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Joined: Feb 18 2010
Posts: 564
Tourists returning from India with multidrug-resistant superbugs

Many tourists returning from India were found colonized with multidrug-resistant «superbugs». Microbiologists at the Institute for Infectious Diseases of the University of Bern, Switzerland, also isolated a strain possessing a gene which can make these life-threatening bacteria resistant to the last active antibiotic option.

http://www.news-medical.net/news/20160719/Tourists-returning-from-India-...

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2766
MSM Hooks

   Media Outlet      Emotional Hook

  • Fox New             Anger
  • CNN                   Fear
  • (MS)NBC            Greed
  • HBO                   Lust/Violence
  • Showtime            Lust/Violence

 

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
Fears over 'catastrophic' spill linger as bolt defects persist

Follow-up to yesterday's "Why do we pretend to clean up oil spills?"

Deep water technology is unreliable:

http://www.houstonchronicle.com/business/energy/article/In-offshore-Gulf...

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
pinecarr's picture
pinecarr
Status: Diamond Member (Online)
Joined: Apr 13 2008
Posts: 2237
Good news Friday came early!!

HSBC Global Head Of FX Cash Trading Arrested At JFK Airport

A historic event took place moments ago when Mark Johnson, the global head of cash FX at HSBC was arrested at JFK airport for his role in a "conspiracy to rig currency benchmarks", and specifically for frontrunning customer orders. He is the first person charged by the US in the ongoing FX rigging probe. [Bold mine]

As Bloomberg reports, a "senior manager at HSBC Holdings Plc was arrested in New York for his role in a conspiracy to rig currency benchmarks, according to two people familiar with the matter, becoming the first person to be charged in the Justice Department’s three-year investigation into foreign-exchange rigging at global banks."

The DOJ adds that Mark Johnson, 50, a U.K. citizen and U.K. and U.S. resident, and Stuart Scott, 43, a U.K. citizen and resident, were charged by complaint with conspiracy to commit wire fraud.  Johnson was arrested last night at JFK International Airport in Queens, New York, and will be arraigned later today before U.S. Magistrate Judge Lois Bloom of the Eastern District of New York

May he be the first, but not the last!!

Reference: http://www.zerohedge.com/news/2016-07-20/hsbc-global-head-fx-cash-trading-arrested-jfk-airport

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2766
Thoughts on election politics

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