Daily Digest 10/30 – Deficit Looms For L.A., How Student Debt Is Crushing the Next Generation of Americans

Economy

A deficit looming for L.A., city departments are asked to find a way to save $100 million (Saxplayer00o1)

In a report released last week, the city’s budget chief, Rich Llewellyn, outlined projected deficits of $200 million to $400 million in the coming years, if the city does nothing.

Treasury Prepares Another Debt Deluge as Fed Wades Into Market (Saxplayer00o1)

The U.S. Treasury this week releases the next stage of its strategy to cover a deficit that’s expected to surpass $1 trillion this fiscal year, as the department continues to search for new ways to attract buyers for its record debt issuance.
It needn’t agonize just yet, however. For the next few months the Federal Reserve will be scooping bills out of the market — part of its effort to calm the repo market — about as fast as the government can pour them in.

How the Student Debt Complex Is Crushing the Next Generation of Americans (Saxplayer00o1)

According to research from the Federal Reserve, indebted graduates are less likely than their debt-free peers to buy homes.
They also possess less wealth, save less for retirement, and are less satisfied with their work. Paying back student loans compromises the very middle class aspirations they are supposed to support.

When recession comes, expect central banks to rewrite the rules (Nouriel Roubini) (Saxplayer00o1)

Following this logic, in the UK, the Labour party has proposed a “People’s QE,” whereby the central bank would print money to finance direct fiscal transfers to households rather than to bankers and investors. Others, including mainstream economists such as Adair Turner, the former chairman of the UK Financial Services Authority, have called for “helicopter drops”: direct cash transfers to consumers through central-bank-financed fiscal deficits. Still others, such as former Fed vice-chair Stanley Fischer and his colleagues at BlackRock, have proposed a “standing emergency fiscal facility”, which would allow the central bank to finance large fiscal deficits in the event of a deep recession.

The Fed may have to do more to calm the stress in the short-term lending market (Saxplayer00o1)

The Fed is responding by expanding its balance sheet by more than $400 billion through the purchase of Treasury bills. It also immediately started open market operations and has since expanded them. It increased its overnight operations to $120 billion last week and is doing longer-term 14-day operations to assure the markets are liquid ahead of the end of the month and end of the year.

G.D.P. Grew at 1.9% Rate in Quarter, a New Sign of Slowdown (RS)

Several analysts emphasized that the economy remained rooted in solid ground. “If I saw cracks in the consumer sector, I would be worried, but I don’t see that yet,” said Ben Herzon, executive director of United States economics at Macroeconomic Advisers, a forecasting firm. “The economy is not slowing into a recession.”

Privacy is a collective concern (jdargis)

Just as violations of privacy can be caused individually or collectively, the consequences of the erosion of privacy are also both individual and collective. As an individual, you may suffer identity theft, public humiliation, extortion, or discrimination as a result of others knowing more about you than they should. As a society, a culture of exposure can damage our social fabric, threaten our national security, and even endanger democracy.

Let’s talk about bagging the Big Baghdadi Wolf (Don R.)

Video

16 Tons and A Briefcase (GE Christenson)

The owners paid in script which coal miners used as currency. Script had no intrinsic value and was only good at the company store. The owners increased profits by coercing miners to buy goods at higher prices. Script cost next to nothing to produce.

We use dollar bills (paper and digital) that have no intrinsic value as currency in the U.S. The dollars cost next to nothing to produce and are used because of ‘legal tender’ laws.

The fight to stop Nestlé from taking America’s water to sell in plastic bottles (tmn)

Critics characterize Nestlé as a “predatory” water company that targets struggling communities with sometimes exaggerated job promises while employing a variety of cheap strategies, like donating to local boy scouts, to win over small town officials who hold the keys to valuable springs.

Its spending on lobbying and campaign contributions at the federal and state levels totals in the millions annually, the revolving door between the company and government perpetually turns, and it maintains cozy relationships with federal officials from the Forest Service to Trump administration.

Climate Stalinism (thc0655)

Whatever its failings, twentieth-century socialism was growth-oriented and in principle devoted to expanding working-class wealth. In contrast, the green version of socialism consciously seeks to depress the average family’s prospects, since prosperity will generate more greenhouse gases. Some zealots, such as the Guardian’s George Monbiot, argue in favor of economic recession as a way to reduce carbon emissions, even if it causes people to lose their jobs and homes.

Rising sea levels pose threat to homes of 300m people – study (TS)

Researchers said the magnitude of difference from the previous Nasa study came as a shock. “These assessments show the potential of climate change to reshape cities, economies, coastlines and entire global regions within our lifetimes,” said Scott Kulp, the lead author of the study and a senior scientist at Climate Central.

Jakarta Is Crowded And Sinking, So Indonesia Is Moving Its Capital To Borneo (TS)

The new capital, which has yet to be named, would be in eastern Borneo, hundreds of miles northeast of Jakarta across the Java Sea. While the selected area is close to the cities of Balikpapan and Samarinda, the region is mostly known for its beaches and dense rainforests. Borneo’s lush jungles also form large national parks that are vital habitats for orangutans.

Gold & Silver

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