• Tag Archives Sanctions
  • Russia May Turn To Oil-Backed Cryptocurrency To Challenge Sanctions & The Petrodollar

    The gradual acceptance of digital currencies, with major exchanges about to launch bitcoin futures trading, may prompt some oil producing nations to ditch the US dollar in crude trade in favor of cryptocurrencies, an oil analyst says.
    ***
    As RT reports, Russia, Iran and Venezuela have more than one thing in common.
    All three are major oil producing nations dependent on the dollar since the global crude market is traditionally dominated by contracts denominated in US currency.
    Moscow, Tehran and Caracas are also facing US sanctions; penalties which are proving effective since the sanctioned countries are dependent on the US dollar to sell their crude.

    This post was published at Zero Hedge on Dec 11, 2017.


  • Maduro Unveils “The Petro”: Venezuela’s Official Cryptocurrency To “Overcome Financial Blockade”

    You sure he didn't say 'KLEPTO-currency'? — Wild Goose (@TrueSinews) December 3, 2017

    Three months ago, in a not entirely surprising move meant to circumvent US economic sanctions on Venezuela, president Nicolas Maduro announced that his nation would stop accepting dollars as payment for oil imports, followed just days later by the announcement that in a dramatic shift away from the Petrodollar and toward Beijing, Venezuela would begin publishing its oil basket price in Chinese yuan. The strategic shift away from the USD did not work quite as expect, because a little over two months later, both Venezuela and its state-owned energy company, PDVSA were declared in default on their debt obligations by ISDA, which triggered the respective CDS contracts as the country’s long-expected insolvency became fact.
    Fast forward to today when seemingly impressed by the global crypto craze, Maduro on Sunday announced the creation of the “Petro“, Venezuela’s official cryptocurrency “to advance in the matter of monetary sovereignty, to make financial transactions and to overcome the financial blockade”.
    “Venezuela announces the creation of its cryptocurrency, the Petro; this will allow us to move towards new forms of international financing for the economic and social development of the country,” Maduro said during his weekly television program, broadcast on the state channel VTV.

    This post was published at Zero Hedge on Dec 3, 2017.


  • After Slamming Bitcoin As A Money Laundering Tool, JPMorgan Busted For Money Laundering

    Score one for the poetic irony pages.
    Two months after JPMorgan CEO Jamie Dimon lashed out at bitcoin, calling it a “fraud” which is “worse than tulip bulbs, warning it won’t end well”, will “blow up” and “someone is going to get killed” and threatened that “any trader trading bitcoin” will be “fired for being stupid” as it was merely a tool for money-laundering, today Swiss daily Handelszeitung reported that the Swiss subsidiary of JPMorgan was sanctioned by the Swiss regulator, FINMA, over money laundering and “seriously violating supervision laws.”
    As the newspaper adds, the Swiss sanctions relate to breaches of due diligence in connection with money laundering standards. In other words, JPMorgan was actively aiding and abeting criminal money laundering.

    This post was published at Zero Hedge on Nov 17, 2017.


  • Nobody Is Going to Bail Out Venezuela

    Henkel Garcia U, Andres Bello Catholic University (UCAB)
    Venezuela, the South American country convulsed by economic and humanitarian catastrophe, has defaulted on some of its debt after missing an interest payment due in October.
    Even as investors meet in Caracas to discuss restructuring US$60 billion in foreign debt, the country is in urgent need of international financial assistance.
    Yet few nations are rushing in to offer financial assistance to the ailing country. Under the authoritarian regime of Nicols Maduro, Venezuela is isolated in Latin America, and the United States, Canada, and the European Union have all imposed sanctions against Venezuelan officials. Maduro has at times suggested he would not even accept humanitarian aid.
    Still, no indebted nation is totally alone in this world. As a financial analyst, I know there are always international players who see opportunity in the problems of others. And for Venezuela, my home country, all hope of a bailout rests with China, Russia, and the International Monetary Fund.
    Will they do anything to help?

    This post was published at FinancialSense on THE CONVERSATION /1/15/2017.


  • Turkey & USA Relations Turn Bad

    The relations between the USA and Turkey have turned for the worst. The USA has now restored the need for a visa after audio recordings have surfaced indicating that the evasion of Iran sanctions was approved by the Turkish President Erdogan. The US arrested Turkish-Iranian gold trader Reza Zarrab in the case of money laundering when he was acting as a middleman between the Turkish government and Iran for years. Since there is now a possibility of the involvement of Turkey in helping Iran circumvent the sanctions, relations have taken a turn for the worse.

    This post was published at Armstrong Economics on Nov 8, 2017.


  • Rising Gold Prices Lag Crude Oil as Saudis Accuse Iran of War, Equities Rise With Bitcoin

    Gold prices held most of yesterday’s 1.0% jump against the Dollar and touched new 3-week highs for Euro investors on Tuesday, trading higher as crude oil rose and Saudi Arabia accused Iran of “direct military aggression” tantamount to a declaration of war.
    Wall Street’s S&P500 index of US stocks ended Monday with its 11th new record closing high in a month.
    Crypto-currency Bitcoin today rallied to regain half of Monday’s 6% drop, trading back above $7000 after hitting 5 new daily all-time highs in succession last week.
    Listen to Tom McClellan on Stocks and Real Estate; Keith Barron on Peak Gold
    Crude oil spiked Tuesday to new 2.5-year highs, while Arabian stock markets fell hard – down over 3% – as news broke of further detentions and sanctions against senior Saudi figures by new crown prince Mohammed Bin Salman.
    “We expected to some interest in gold following the close above $1280,” says one Asian trading desk in a gold price note, “[but] Chinese selling appears to be capping the market.”
    “Stocks are at record highs, so you don’t need gold,” says George Gero at the wealth management division of Canada’s RBC.

    This post was published at FinancialSense on 11/07/2017.


  • Hunger Game: Venezuela’s Behind on Its Debt and Facing Two Huge Payments

    (Bloomberg) Ever since the price of oil collapsed in mid-2014, there’s been a broad consensus among the bond-market crowd that Venezuela was going to default. Not immediately, they said, but at some point down the road.
    Three years on, that time may have arrived. On Friday, the government-run oil giant PDVSA owes $985 million. Six days later, it’s on the hook for another $1.2 billion. Not only is that a daunting sum for a country whose foreign-currencyreserves recently dipped below $10 billion for the first time in 15 years, but it figures to be a logistical nightmare too.
    Increasingly isolated by U. S. financial sanctions that have spooked banks and other intermediaries in the bond payment chain, Venezuela has alreadyfallen behind on interest payments worth $350 million that were due earlier this month. Those payments had a grace period – a buffer of sorts that gives the country an additional 30 days to work out the technical glitches and deliver the cash. The principal portions of the payments owed over the next two weeks contain no such language. Miss the due date and bondholders can cry default. Prices on the notes due Nov. 2 acutely reflect those risks: They’re at just 92 cents on the dollar.

    This post was published at Wall Street Examiner on October 23, 2017.


  • What a Gold-Backed Yuan and Cryptocurrencies May Mean for the Dollar

    Amoungst all the crypto news this, and crypto news that, was a tiny item appearing in the Nikkei Asian Review on September 1st. Reporting from Denpasar, Indonesia, Damon Evans wrote, ‘China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.’
    Not bitcoin backed, not ethereum backed, g-o-l-d backed. How low tech of the Chinese. For the moment, oil is priced in dollars, whether it’s Brent or West Texas Intermediate.
    Evans explained,
    China’s move will allow exporters such as Russia and Iran to circumvent U. S. sanctions by trading in yuan. To further entice trade, China (the world’s largest oil importer) says the yuan will be fully convertible into gold on exchanges in Shanghai and Hong Kong.
    This will be China’s first commodities futures contract open to foreign companies such as investment funds, trading houses and petroleum companies.

    This post was published at Ludwig von Mises Institute on October 20, 2017.


  • Wells Fargo Gets Clocked in California

    Why is Tim Sloan still CEO, asks California Treasurer. In a letter so brutally scathing it’s practically funny, California Treasurer John Chiang skewers Wells Fargo, its Board of Directors, and its new CEO Tim Sloan. And he extended the sanctions on Wells Fargo, first imposed in September last year, by ‘at least’ another year.
    The Treasurer’s office oversees ‘nearly $2 trillion in annual banking transactions, manages a $75 billion investment pool, and is the nation’s largest issuer of municipal debt,’ Chiang pointed out last year when he imposed the sanctions on Wells Fargo’s ‘most highly profitable business relationships with the State of California.’ Those sanctions include:
    Suspension of investments by the Treasurer’s Office in all Wells Fargo securities. Suspension of the use of Wells Fargo as a broker-dealer for purchasing of investments by his office. Suspension of Wells Fargo as a managing underwriter on negotiated sales of California state bonds where the Treasurer appoints the underwriter.

    This post was published at Wolf Street on Oct 17, 2017.


  • California Treasurer Skewers Wells Fargo, Wonders Why Tim Sloan is Still CEO, Extends Sanctions

    ‘The cockroaches infiltrated’ the bank, as ‘systemic corruption and venal abuse of customers’ have become ‘part of Wells Fargo’s brand.’
    In a letter so brutally scathing it’s practically funny, California Treasurer John Chiang skewers Wells Fargo, its Board of Directors, and its new CEO Tim Sloan. And he extended the sanctions on Wells Fargo, first imposed in September last year, by ‘at least’ another year.
    The Treasurer’s office oversees ‘nearly $2 trillion in annual banking transactions, manages a $75 billion investment pool, and is the nation’s largest issuer of municipal debt,’ Chiang pointed out last year when he imposed the sanctions on Wells Fargo’s ‘most highly profitable business relationships with the State of California.’ Those sanctions include:
    Suspension of investments by the Treasurer’s Office in all Wells Fargo securities. Suspension of the use of Wells Fargo as a broker-dealer for purchasing of investments by his office. Suspension of Wells Fargo as a managing underwriter on negotiated sales of California state bonds where the Treasurer appoints the underwriter. With these sanctions, Chiang sought ‘real accountability and lasting reforms.’ But it’s a long and complex relationship that dates back to the Gold Rush era:
    Wells Fargo has evolved to become the nation’s second largest bank by total assets. California is set to become the world’s fifth largest economy. What we each do, therefore, matters and effects the public interest.

    This post was published at Wolf Street on Oct 17, 2017.


  • Washington Is Destroying American Power

    Readers at home and around the world want to know what to make of the announcement that China henceforth will conduct oil purchases and sales in gold-backed Chinese currency.
    Is this an attack by Russia and China on the US dollar? Will the dollar weaken and collapse from being discarded as the currency in which oil is transacted? These and other questions are on readers’ minds.
    Below is my opinion:
    The US dollar’s value depends on whether central banks, corporations, and individuals are content to hold their assets or wealth in dollars. If they are, it does not matter what currency is used to transact oil. If they are not, it does not matter if all oil is transacted in dollars. Why?
    Because if they don’t want to hold dollars, they will dump the dollars as soon as the transaction is completed and move into other currencies or gold. What China is doing is creating a currency that might be a more attractive currency to hold.
    It is possible that the gold-backed Chinese currency is a move against US power, but I see it differently. I see it as a protection against US power. China and Russia are disassociating from the dollar system, because Washington, in its abuse of the world currency role, uses the dollar payments mechanism to impose sanctions on other countries and to threaten them with exclusion from the payments clearing system.

    This post was published at Paul Craig Roberts on October 16, 2017.


  • Maduro Visits Putin, Proposes Global Oil Trade In Rubles, Yuan

    Three weeks after the US imposed financial sanctions on Venezuela in an effort to cripple its economy and choke the Maduro regime, which in turn prompted Caracas to announce it would no longer receive or send payments in dollars, and that those who wished to trade Venezuelan crude would have to do so in Chinese Yuan, today during an energy summit held in Moscow, Venezuela’s president Nicolas Maduro proposed to expand his own personal blockade of the US, by proposing that all oil producing countries discuss creating a currency basket for trading crude and refined products. One which is no longer reliant on the (petro)dollar.
    ‘Developing a new mechanism of controlling the oil market is necessary,’ Maduro said on Wednesday at the Russian Energy Forum, being held in Moscow this week.
    Quoted by RT, Maduro also blamed trade in crude oil paper futures as having an adverse impact on the oil market, which has undermined attempts by OPEC to stabilize prices. To counteract such “speculation”, Maduro proposed an alternative currency basket, one which is based not on the world’s reserve currency but includes the yuan, ruble, and other currencies, and which will mitigate the alleged adverse impact of futures trading.

    This post was published at Zero Hedge on Oct 4, 2017.


  • Trump’s China-Sanctions Madness Imperils the Dollar

    Earlier this month, US Treasury Secretary Steven Mnuchin threatened China, saying the US would ‘put additional sanctions on them and prevent them from accessing the US and international dollar system’ if they don’t go along with the most recent round of sanctions slapped on North Korea. We argued that the threat may be meaningful, but it also might be empty.
    In a recent article published on the Mises Wire, Ryan McMaken added another layer of analysis, arguing that if the US were to follow through on the threat, it would imperil the US dollar. McMaken’s reasoning dovetails with a point we’ve made more generally about Trump’s penchant for tariffs – that they will undermine the dollar. Of course, that’s good for gold.

    US Treasury Secretary Steve Mnuchin warned the US will impose new sanctions on China if it doesn’t conform to UN sanctions on North Korea:
    ‘If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the U. S. and international dollar system, and that’s quite meaningful.’

    This post was published at Schiffgold on OCTOBER 2, 2017.


  • UK Slams Tariffs On Bombardier: “This Is Not What We Expect From A Long-Term Partner”

    It appears the Commerce Department’s preliminary ruling, issued late last night, to slap a 220% tariff on Canadian aircraft manufacturer Bombardier could trigger an all-out trade war between the UK and Canada (on one side) and the US (on the other) as public officials in the UK and Canada blasted the ruling and threatened retaliation should the sanctions, which still need to be approved by the US International Trade Commission, become permanent.
    Earlier today, the Commerce Department ruled that Bombardier’s jets should face the levy because the company received anticompetitive government subsidies. The ruling comes after Boeing said the Bombardier C-Series jet would not exist without hundreds of millions of dollars in launch funding from the governments of Canada and Britain, or a $2.5 billion equity infusion from the province of Quebec and its largest pension fund in 2015. Boeing brought the complaint after Delta Air Lines agreed in April 2016 to purchase 75 C-Series jets, an order worth some $5 billion.

    This post was published at Zero Hedge on Sep 27, 2017.


  • SWOT Analysis: Opportunities Across the Gold Mining Space

    Strengths
    Typical of FOMC meeting weeks, we tend to see the precious metals take a hit. The best performing precious metal for the week was palladium, off 0.43 percent on little market moving news. Ford announced that it will add more downtime to five North American automobile plants due to a decrease in demand as inventories rise on dealer lots. The gold price could soon recover, says Jason Schenker, president and founder of Prestige Economics, the reason being that the Federal Reserve might raise rates less rapidly because of low U. S. inflation. ‘The fact that the Fed members lowered their forecast for their own future Fed funds rate indicates that the Fed may again kind of undershoot what they’re predicting they’re going to do for rates,’ Schenker told Bloomberg. This could end up being neutral to bearish for the dollar, which would help support the gold price. Gold has begun to climb back toward $1,300 an ounce on safe-haven demand now that tensions between Washington and Pyongyang are steeply escalating. Following new U. S. sanctions against North Korea, the rogue Asian country’s leader Kim Jong-un threatened to detonate a hydrogen bomb in the middle of the Pacific Ocean. With the back-and-forth rhetoric intensifying, investors’ interest in safe havens, gold included, has been renewed. Weaknesses
    The worst performing precious metal for the week was platinum, off 3.77 percent. Platinum prices has been out of favor for the last couple of years, recently prompting Impala Platinum, the world’s second largest producer, to propose some job cuts in South Africa that could lead to supply disruptions if labor is not on the same page. Earlier this week, gold dropped below $1,300 an ounce as risks receded of another hurricane striking the mainland U. S. and as major stock market averages continued to hit record highs on a near-daily basis. In addition, a diplomatic resolution to the nuclear standoff with North Korea appeared likely, with Secretary of State Rex Tillerson saying the U. S. is seeking a peaceful conclusion.

    This post was published at GoldSeek on Monday, 25 September 2017.


  • An Insider’s View Of The Bitcoinization Of Venezuela

    With Venezuela ‘almost’ defaulting on their government debt this week, Daniel Osorio, of Andean Capital Advisors, has had a front-row seat in the collapse of the socialist utopia, spending at least a week every month in the almost-failed state.
    In a brief but fascinating interview on CNBC, Osorio discussed the fact that as Washington unleashes ever tougher sanctions on Maduro, China and Russia are all that’s left for the country with the largest proven oil reserves in the world.
    Then exposed the realities of living under Maduro’s crazed policies:
    “Venezuela was one of the richest per-capita nations in the world… but now, hyperinflation is a very difficult thing to understand until you have to buy lunch…“

    This post was published at Zero Hedge on Sep 24, 2017.


  • SEPT 21/USA YIELD CURVE FLATTENS INDICATING RECESSION: GOES AGAINST THE WISHES OF THE FED/GOLD AND SILVER RAID CONTINUES BY OUR BANKERS WITH GOLD DOWN $19.95 AND SILVER DOWN 29 CENTS/HUGE SANCTIO…

    GOLD: $1292.75 DOWN $19.95
    Silver: $17.00 DOWN 29 CENT(S)
    Closing access prices:
    Gold $1291.60
    silver: $16.97
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1303.97 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1299.20
    PREMIUM FIRST FIX: $4.77
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1302.97
    NY GOLD PRICE AT THE EXACT SAME TIME: $1298.20
    Premium of Shanghai 2nd fix/NY:$4.77
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1297.35
    NY PRICING AT THE EXACT SAME TIME: $12.96.08
    LONDON SECOND GOLD FIX 10 AM: $1291.80
    NY PRICING AT THE EXACT SAME TIME. 1291.80
    For comex gold:
    SEPTEMBER/
    NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 29 NOTICE(S) FOR 2900 OZ.
    TOTAL NOTICES SO FAR: 83 FOR 8300 OZ (0.2581 TONNES)
    For silver:
    SEPTEMBER
    225 NOTICES FILED TODAY FOR
    1,125,000 OZ/
    Total number of notices filed so far this month: 6,106 for 30,530,000 oz

    This post was published at Harvey Organ Blog on September 21, 2017.


  • US Threat to Cut China Off from the International Dollar May Be Empty

    Earlier this month, the US threatened to lock China out of the dollar system if it doesn’t follow UN sanctions on North Korea. Treasury Secretary Steven Mnuchin threatened this economic nuclear option during a conference broadcast on CNBC.
    If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the US and international dollar system, and that’s quite meaningful.’
    The threat may be meaningful, but it also might be empty.
    Mnuchin was talking about locking the Chinese out of SWIFT – Society for Worldwide Interbank Financial Telecommunication. The system enables financial institutions to send and receive information about financial transactions in a secure, standardized environment. Since the dollar is the world reserve currency, SWIFT facilitates the international dollar system.

    This post was published at Schiffgold on SEPTEMBER 21, 2017.


  • Asian Metals Market Update: September-18-2017

    Yen as well as gold can be affected on speculation that Japanese prime minister may called a snap general election next month. But first we have the FOMC meet this week and thereafter the German general elections and later US September nonfarm payrolls on 6th October. Over the next three weeks there are market moving news and events which can change direction of metals, energies and currency markets. Just remember to have a key technical support in hand and key resistance in hand and trade accordingly. Do not drain your brain by over analyzing news and events. Life is never complicated. It is through our perception that we make life complicated. Trading and investment is also like life.
    Gold and silver fell after the USA said that it will try peaceful pressure on North Korea. In my view they are just out of solutions as the USA knows that trade sanctions will be useless without the support of Russia and China. Except Japan, none of North Korea’s neighbour’s want an armed conflict.

    This post was published at GoldSeek on 18 September 2017.


  • North Korea – The Crazy Boast Nobody Takes Seriously Anymore

    Gold has now declined with the constant threats from North Korea. The lastest missile was fired over Japan and reached an altitude of about 770km (478 miles), travelling 3,700km past the northernmost island of Hokkaido before landing in the sea, according to South Korea’s military. The UN Security Council convened an emergency meeting, and unanimously condemned the missile launch as ‘highly provocative’but did not add new sanctions which do not seem to do anything anyway.

    This post was published at Armstrong Economics on Sep 16, 2017.