• Tag Archives Sanctions
  • 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.


  • Government Nearing Default on Debt to Russia

    The government in question is that of Venezuela, which is nearing default as it is running out of resources to pay back the money it owes to its Russian creditors according to the terms it accepted when it chose to borrow money from them.
    MOSCOW, Sept 8 (Reuters) – Russian Finance Minister Anton Siluanov told reporters on Friday that Venezuela is having problems with fulfilling its obligations on its debt to Russia.
    ‘We have a request from our colleagues in Venezuela to do a restructuring,’ Siluanov said.
    Venezuela owed Russia $2.84 billion as of September last year.
    The Venezuelan government is now scrambling to restructure its foreign-held liabilities following sanctions put on the country’s President Nicolas Maduro and 20 other individuals, and also the Venezuelan government-owned oil company by the US Treasury Department after Maduro rigged an election to select representatives to rewrite the country’s constitution in his favor.

    This post was published at FinancialSense on 09/15/2017.


  • Bill Blain: Have We Reached Missile Fatigue?

    Submitted by Bill Blain of Mint Partners
    Mint – Blain’s Morning Porridge – September 15th 2017
    ‘And if I claim to be a wise man, it surely means that I don’t know..’
    Did I blink and the North Koreans launched another missile? Did I miss it? What’s happened to the headless chicken panic? Missile Fatigue? Provocation or escalation? An expected reaction to new sanctions? Hasn’t even made the front page of the FT. Hmm.. lets see what happens next….
    A couple of key events will stick in my mind from this week. The significant financial ones are all about the weight of money driving financial asset markets higher, and how the effects of money desperately chasing returns are clearly spilling across to the ‘real’ asset sector.
    Its most obvious in the bond markets where new deals are being bid up to unfeasibly tight spreads, yet we’re still seeing massive demand with deals heavily oversubscribed. I must thank Bloomberg for a story this morning that references the Ukrainian Chicken Farm Moment rule of the new issue market.
    But asset price inflation is spreading outside the conventional stock and share markets.

    This post was published at Zero Hedge on Sep 15, 2017.


  • Venezuela Has Officially Abandoned The Petrodollar – Does This Make War With Venezuela More Likely?

    Venezuela is the 11th largest oil producing country in the entire world, and it has just announced that it is going to stop using the petrodollar. Most Americans don’t even know what the petrodollar is, but for those of you that do understand what I am talking about, this should send a chill up your spine. The petrodollar is one of the key pillars of the global financial system, and it allows us to live a far higher standard of living than we actually deserve. The dominance of the petrodollar has been very jealously guarded by our government in the past, and that is why many are now concerned that this move by Venezuela could potentially lead us to war.
    I don’t know why this isn’t headline news all over the country, but it should be. One of the few major media outlets that is reporting on this is the Wall Street Journal…
    The government of this oil-rich but struggling country, looking for ways to circumvent U. S. sanctions, is telling oil traders that it will no longer receive or send payments in dollars, people familiar with the new policy have told The Wall Street Journal.
    Before we go any further, we should discuss what we mean by the ‘petrodollar’ for those that are not familiar with the concept. The following comes from an excellent article by Christopher Doran…

    This post was published at The Economic Collapse Blog on September 14th, 2017.


  • Gold Up, Markets Fatigued As War Talk Boils Over

    North Korea threatens to reduce the U. S. to ‘ashes and darkness’ Markets becoming used to ongoing provocations from North Korea Russia and China continue to support watered down versions of sanctions on Kim’s regime Both NATO and Russia running war games on one another’s borders Putin says Russia will ‘give a suitable response’ to NATOs threatening behaviour Gold set to climb as fears over economy and war will drive safe haven demand This year North Korea has launched a dozen missiles. With the latest one it has threatened the U. S. with ‘ashes and darkness’ as Kim believes it ‘should be beaten to death like a rabid dog.’
    Russia and China continue to support watered down sanctions on the isolated country. Both have made it clear that they will not tolerate a war on their borders.

    This post was published at Gold Core on September 15, 2017.


  • Asian Metals Market Update: September-12-2017

    Physical buyers of gold and silver will be looking for signs of a bottom formation. Premiums will rise with every fall. This is just profit taking before the Bank of England meeting on Thursday and the FOMC meet next week. I do not expect surprises in either of the meetings but investors are cautious. Quarter end profit taking is also seen in bullion and currency markets. German elections after the FOMC meeting will also keep everyone on their toes.
    The first step towards an attack on North Korea has been started with the beginning of trade sanctions.

    This post was published at GoldSeek on 12 September 2017.


  • Risk Appetite Remains Robust As World Stock Markets Higher

    This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.
    (Kitco News) – World stock markets were mostly firmer again overnight. Early this week has seen trader and investor risk appetite return to the world marketplace. U. S. stock indexes are pointed toward firmer openings when the New York day session begins. The U. S. stock indexes are at or near record highs. The world stock markets are so far ‘thumbing their noses’ at what have been historically troublesome months of September and October.
    News the United Nations Security Council late Monday imposed new sanctions on North Korea that were not as harsh as the U. S. wanted is being perceived as somewhat de-escalating the tensions between the U. S. and North Korea.
    Gold prices are lower in pre-U. S.-session trading, on more profit taking and on the ‘risk-on’ trader mentality in the marketplace early this week.
    ***
    The key outside markets on Tuesday morning see the U. S. dollar index slightly lower. Meantime, Nymex crude oil futures are also slightly lower this morning.

    This post was published at Wall Street Examiner on September 12, 2017.


  • Gold-Backed, Yuan-Denominated Oil Futures Could Dethrone US Petrodollar

    A recent move by China could take a big step toward dethroning the US petrodollar.
    The Chinese have announced the launch of a gold-backed, yuan-denominated oil futures contract. The move potentially creates a way for oil exporters to circumvent US dollar denominated benchmarks by trading in yuan. The contracts will be priced in yuan, but convertible to gold. An article in the Nikki Asian Review explains the significance of the move.
    The contract could become the most important Asia-based crude oil benchmark, given that China is the world’s biggest oil importer. Crude oil is usually priced in relation to Brent or West Texas Intermediate futures, both denominated in US dollars. China’s move will allow exporters such as Russia and Iran to circumvent US sanctions by trading in yuan. To further entice trade, China says the yuan will be fully convertible into gold on exchanges in Shanghai and Hong Kong.’
    The stability of gold is the key to China’s drive to dethrone the petrodollar

    This post was published at Schiffgold on SEPTEMBER 11, 2017.