Economics and Investing:

‘Cash has run out’: Debt-ridden Puerto Rico heads toward New Year’s default – RBS

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Reader GP sent in a link to this map showing which states are in the red: Is Your State Busted Or Busting Loose?

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Items from Professor Preponomics:

US News

The Formlessness of Progressivism (Mises Institute) Excerpt: “As vague and misty as most modern leftist ideals can be, they do share one solid, bedrock principle: the need for continuous expansion of the government’s role in our lives. The government’s heavy handed regulation of our industries has imposed unbelievable barriers and costs to the supply of goods and services.”

Now Comes the Great Unwind: How Evaporating Commodity Wealth Will Slam the Casino (Contra Corner) Excerpt: “But the point here is that China is not some kind of one-off aberration. In fact, the less visible aspects of the credit ponzi exist throughout the global economy and they are becoming more visible by the day as the Great Deflation gathers force.”

Oil Prices Become a Problem for US Steelmakers (Bloomberg) Excerpt: “…makers battered by plunging prices have been quick to blame a flood of cheap Chinese shipments. But with imports nearing four-year lows, another culprit is emerging: the energy collapse.”

International News

China’s Unprecedented Real-Estate Bubble is Collapsing (Business Insider) Excerpt: “Guess what happens when the bubble wealth in real estate that has built up in China finally collapses?”

Saudi Arabia Says It’s Ready to Meet Any Additional Oil Demand (Market Watch) Excerpt: “We will satisfy the demand of our customers. We no longer limit production. If there is demand, we will respond. We have the capacity to respond…”

IMF’s Christine Lagarde Warns: Economic Growth Will Disappoint Again in 2016 (The Telegraph) Excerpt: “Rising U.S. interest rates, a Chinese slowdown and disappointing world trade will all weigh on growth prospects in 2016…”

Personal Economics and Household Finance

21 Ways to Deal with Your Post-Holiday Financial Hangover (Living on the Cheap) Excerpt: “This year’s hangover may be the last straw for you. If you’re tired of going through this every year, use this as a catalyst for permanent change. It can only make your life better in the long run. There are more important things in life than having a lot of stuff.”