It was just last month when we profiled Canada’s “other problem”: record high household debt.
Canada is struggling to cope with falling crude prices which have put enormous amounts of pressure on some parts of the country, most notably Alberta, where suicide rates are on the rise, as is property crime and foodbank usage.
In addition to being a hyperinflating, socialist banana republic with a devastated economy Venezuela has another problem: debt, of which it has some $70 billion with $9.5 billion due this year. It also has $15.4 billion in foreign reserves, of which two-thirds or around $10 billion, are held in gold bars, which as we said last week, "limits President Nicolas Maduro's government's ability to quickly mobilize hard currency for imports or debt service."
There has been much speculation whether foreign official institutions (central banks, SWFs, reserve managers and so on) are selling Treasurys or equities, or both as part of the Quantitative Tightening phenomenon.
Moments ago, courtesy of the latest TIC data we have an answer: based on the monthly flow report breaking down Treasury transactions between foreign official and private entities, in December the far more important, former, group sold $48.1 billion in US Treasurys: the highest single monthly outflow on record.
US Marshals in Houston have begun arresting students who have failed to pay back their student loans. Former student Paul Aker has confirmed that he was arrested last week in his home for failing to pay back a $1500 federal student loan he received in 1987. Fox26houston.com reports: He says seven deputy US Marshals showed up at his home with guns and took him to federal court where he had to sign a payment plan for the 29-year-old school loan. Congressman Gene Green says the federal government is now using private debt collectors to go after those who owe student loans.
Presented with no comment.. but a big sigh...
h/t The Burning Platform