Why OPEC Production Freeze Could Pave The Way For Actual Cuts
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More indoctrination of our kids. “Ultimate Banking” Monopoly Edition Goes Completely Cashless – L.P.
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Items from Professor Preponomics:
US News
Why Negative Interest Rates Will Fail (Mises) Excerpt: “…there is an old adage: you can bring a horse to water but you cannot make him drink! With the world economy sinking into recession, few banks have credit-worthy customers and many banks are having difficulties collecting on existing loans.”
Percent of Total Wealth Owned in the United States: Bottom 40% Control -0.9% Meaning Close to Half the County Has a Negative Net Worth (My Budget 360) Excerpt: “This is what happens when wage growth disappears and inflation continues to expand. To keep up the pretense that the middle class was thriving debt products allowed people to spend money they don’t have. This is how the bottom 40 percent of Americans actually own negative wealth. They simply have more debt than assets. The story of the last financial crisis was one of too much debt. As it happens, we have now surpassed that point once again….”
Health Insurers Going Broke, Thanks to Obamacare (The New American) Excerpt: “According to one of ObamaCare’s primary architects, former Senate Majority Leader Harry Reid, that is exactly what the monstrosity was designed to do: fail, leaving the path open to a single-pay, government-run health insurance system.”
Civic Federation: Illinois Needs $9.4B in New Taxes by 2019 to Survive (WTTW) Excerpt: ““The state has basically spent the entire $32 billion of revenue that it had available,” he said. “We still have five months left in the fiscal year. We’re not going to close a $4.7 billion deficit just by cutting spending. There’s not enough time.”
Puerto Rico Government Has “Substantial Doubt” about It’s Solvency (The World Post) Excerpt: “Puerto Rico said it expects to miss at least some of its July 1 general obligation (GO) debt payment – about $800 million, according to a debt schedule obtained by Reuters – even with the benefit of so-called “clawbacks” wherein revenues earmarked for other debt are redirected to pay GO debt.”
International News
Hungary Central Bank Stockpiles Guns, Bullets: Cites Terror Risk (Bloomberg) Excerpt: “Hungary’s central bank, already facing criticism for a spending spree ranging from real estate to fine art, is now beefing up its security force, citing Europe’s migrant crisis and potential bomb threats among the reasons.”
Rome Looks to the ECB to Resolve Its Banking Crisis (New Europe) Excerpt: “For the moment, Italy’s BBB- just-about investment grade rating is essential, not least an important part of this ECB scheme is to have Rome “guarantee” NPLs, with everybody knowing that is a promise that cannot be met. Italy does not have the money and does not have the fiscal space to make such promises. But, this is a lie one can agree to believe, if it serves a purpose.”
Personal Economics and Household Finance
How to Prepare for a Recession (USA Today) Excerpt: “If I’m correct, and the economy is about to enter a recession, how should I prepare my finances so I don’t repeat history? I feel like the economy could get ugly this coming fall.”
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