David Chaston is standing in for Bernard Hickey today. He details the key news overnight in 90 seconds at 9 am in association with BNZ, including news the oil price fell again overnight and is now under US$75/bbl after signs that US jobless claims are rising because of the slowing economy.
They rose to over 500,000 in the latest week, more than expected.
The Philadelphia Fed factory data was also weaker than most had expected.
And the Congressional Budget Office reported that they estimate the US 2014 budget deficit will exceed $1.3 trillion, higher than previous estimates
The Dow, and European stockmarkets fell sharply, more than 1.5%.
The debate over the wisdom of extending the Bush-era tax cuts is also growing, with the Obama Administration wanting them to continue in some form to bolster employment and growth. But the level of US debt is now so large, that there are fears that without a start on reducing it very soon, it will overwhelm all future policy decisions. The choice before US policy makers is stark - slightly less pain now, or catasptrophic pain later.
Bond yields for government debt fell, as investors loaded up on what they think may be safer instruments. US 30 year yields fell to 3.64%, while German 30 year yields fell to 2.98% a record low.
In New Zealand, the latest report on mortgage approvals saw the lowest August week ever since records began. The housing market is very quiet.
Dairy prices seem to have stopped falling, with modest rises in US$ terms in some key commodities in the latest week.
Later today, Allied Farmers Nationwide Finance will be reporting their remedial actions following the directive by their trustee to sort out some serious covenant issues. Today is the deadline the trustee gave the company.
6 Comments
The US storm will likely get underway post their elections. The building sector here in Noddy is 'banking' on the Cabinet's decision to underwrite Kiwibank's plan to pump a heap of new cheap mortgage loot into the patient....more debt to save the economy from too much debt...go figure.
That's right Wally.. its how the game is played as you have pointed out many times before... keep the ponzi going as long as possible.
The cheap new money will wash ashore in NZ .. 6 months ? What do you reckon... ?
Dunno exactly MattS...expect the Cabinet of fools to keep the game going up to the election...they have clearly given up on taking steps to divert the economy away from the ponzi position...funny as to see them following the policies of Queen Helen and Cullen.
I think we will see another increase in the welcome home loan scam numbers...and Bolly will have been told to relax the core funny rate rules...
2012 could well be the final curtain call on this sorry story of inept govt and stupid behaviour by greedy bank bosses. Post the election will see this economy back where it was at the end of 09. In the shite and drowning in spin.
Barry is 'banking' on the arrival of aliens in a ship loaded with gold and a burning desire to buy Amercian made stuff.
"The decline of the western economy model will bring about hyperinflation and decades of painful readjustments"
Egon von Greyerz
http://www.cnbc.com/id/15840232?video=1569699046&play1
High time to ask our government about what their long term plans are to reduce our debt.
Re US bonds:
Certificates of Confiscation
"Every time a sovereign, municipal or corporate bond is sold somewhere, every time you hear the national debt going up, that's a piece of you being sold off. There's nothing more to the bond market, nothing less. Human beings are being lined up on the chopping block, sold to the highest bidder, for a price.The future of their children and their hopes and dreams sold at a price determined by a large market for human debt slaves. A modern day global debt gulag if you ask me.
...
Next time you read that the National Debt has gone up by $1,600,000,000,000, that total debt owed by the US internally and externally is $54 trillion, that there are $65-100 trillion in unfunded liabilities, one thing I hope you take from this little rant is that you and your family are on the hook for all this debt owed to Kings and psychopaths, bankster mafia elites and drug lords with Caribbean accounts. I hope you also realize that they've decided to feast on your children with a sprinkling of shattered futures, dreams and hopes."
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