• Tag Archives Ukraine
  • The Integrated Non-USD Platforms

    The many new integrated non-USD platforms devised and constructed by China finally have critical mass. They threaten the King Dollar as global currency reserve. Clearly, the USDollar cannot be displaced in trade and banking without a viable replacement for widespread daily usage. Two years ago, critics could not point to a viable integrated system outside the USD realm. Now they can. The integration of commercial, construction, financial, transaction, investment, and even security systems can finally be described as having critical mass in displacing the USDollar. The King Dollar faces competition of a very real nature. The Jackass has promoted a major theme in the last several months, that of the Dual Universe. At first the USGovt will admit that it cannot fight the non-USD movement globally. To do so with forceful means would involve sanctions against multiple nations, and a war with both Russia & China. Their value together is formidable in halting the financial battles from becoming a global war. The United States prefers to invade and destroy indefensible nations like Libya, Iraq, Ukraine, Syria, and by proxy Yemen. The USMilitary appears formidable against undeveloped nations, seeking to destroy their infra-structure and their entire economies, in pursuit of the common Langley theme of destabilization. In the process, the USMilitary since the Korean War has killed 25 million civilians, a figure receiving increased publicity. The Eastern nations and the opponents to US financial hegemony will not tolerate the abuse any longer. They have been organizing on a massive scale in the last several years. Ironically, the absent stability can be seen in the United States after coming full circle. The deep division of good versus evil, of honest versus corrupt, of renewed development versus endless war, has come to light front and center within numerous important USGovt offices and agencies.
    The shape of the US nation will change with the loss of the USDollar’s status as global currency reserve. The starting point for the global resistance against the King Dollar was 9/11 and the onset of the War on Terror. It has been more aptly described as a war of terror waged by the USGovt as a smokescreen for global narcotics monopoly and tighter control of USD movements. Then later, following the Lehman failure (killjob by JPMorgan and Goldman Sachs) and the installation of the Zero Interest Rate Policy and Quantitative Easing as fixed monetary policies, the community of nations has been objecting fiercely. The zero bound on rates greatly distorted all asset valuations and financial markets. The hyper monetary inflation works to destroy capital in recognized steps. These (ZIRP & QE) are last ditch desperation policies designed to enable much larger liquidity for the insolvent banking structures. Without them, the big US banks would suffer failure. They also provide cover for the amplified relief efforts directed at the multi-$trillion derivative mountain. In no way, can the global tolerate unbridled monetary inflation which undermines the global banking reserves.

    This post was published at GoldSeek on 26 December 2017.


  • Federal Prosecutors Are Running Amok

    It is hard to know where to begin regarding the charges against Paul Manafort, the former campaign director for Donald Trump’s successful presidential bid, but having read the indictments and knowing some background about both the case and the investigation, I cannot say it is exactly a high point of American justice. In fact, when former FBI chief Robert Mueller first was appointed as a special prosecutor to look into the allegations that the Trump campaign conspired with Russia the tilt the election to Trump’s favor, I feared his investigation would turn out to be an assault on the Constitution – and Mueller has done nothing to dispel those fears.
    I have included a link to the actual indictment, and while federal indictments can be a bit mind-numbing to read, nonetheless I have found nothing in it that relates to the original reason the Mueller probe was created: alleged Russian collusion with the Trump campaign. Instead, it is clear that Mueller engaged in a legal ‘fishing expedition’ against Manafort and found evidence of tax evasion involving income that Manafort made while serving as a lobbyist for the government of Ukraine.
    The criminal charges themselves clearly don’t match up to the original purpose of the investigation. Writes Judge Andrew Napolitano:
    Both were accused of working as foreign agents and failing to report that status to the federal government, using shell corporations to launder income and obstruction of justice by lying to the federal government.

    This post was published at Ludwig von Mises Institute on November 13, 2017.


  • Manafort, Gates Under House Arrest After Pleading “Not Guilty” To Mueller Charges

    Update: Manafort and Gates have been released to house arrest while they scramble to gather money for their bail, set at $10 million and $5 million, respectively, after pleading not guilty to a 12-count indictment charging them with making tens of millions of dollars while secretly working for the Ukrainian government and then hiding the money from the U. S. government.
    The special counsel’s office considers Manafort a flight risk, and lawyers in Mueller’s office argued before Judge Deborah Robinson on Monday afternoon, citing the seriousness of the charges and the extent of Manafort’s ties abroad. The FBI took possession of Manafort’s passport yesterday. In a statement to reporters following the hearing, Manafort’s lawyer, Kevin Downing, called the charges against his client “ridiculous.”
    ‘There is no evidence that Mr. Manafort or the Trump campaign colluded with the Russian government,’ Downing told reporters after Manafort’s court appearance.
    ‘Mr. Manafort represented pro-European Union campaigns for the Ukranians. And in that, he was seeking to further democracy, and to help the Ukraine come closer to the United States and the EU.’

    This post was published at Zero Hedge on Oct 30, 2017.


  • The Curious Case Of Missing The Market Boom

    Authored by Raul Ilargi Meijer via The Automatic Earth blog,
    ‘The Cost of Missing the Market Boom is Skyrocketing’, says a Bloomberg headline today. That must be the scariest headline I’ve seen in quite a while. For starters, it’s misleading, because people who ‘missed’ the boom haven’t lost anything other than virtual wealth, which is also the only thing those who haven’t ‘missed’ it, have acquired.
    Well, sure, unless they sell their stocks. But a large majority of them won’t, because then they would ‘miss’ out on the market boom… Some aspects of psychology don’t require years of study. Is that what behavioral economics is all about?
    And it’s not just the headline, the entire article is scary as all hell. It reads way more like a piece of pure and undiluted stockbroker propaganda that it does resemble actual objective journalism, which Bloomberg would like to tell you it delivers. And it makes its point using some pretty dubious claims to boot: The Cost of Missing the Market Boom Is Skyrocketing
    Skepticism in global equity markets is getting expensive. From Japan to Brazil and the U. S. as well as places like Greece and Ukraine, an epic year in equities is defying naysayers and rewarding anyone who staked a claim on corporate ownership. Records are falling, with about a quarter of national equity benchmarks at or within 2% of an all-time high.

    This post was published at Zero Hedge on Oct 14, 2017.


  • SWOT Analysis: Macroeconomic Backdrop Remains Positive for Precious Metals, says Metals Focus

    Strengths
    The best performing precious metal for the week was silver up 1.07 percent. Precious metals rallied to mid-day highs on Friday as it was rumored North Korea will test a missile this weekend that is capable of reaching the U. S. West Coast. Gold traders and analysts surveyed by Bloomberg on Thursday were equally split between bulls and bears this week, reports Bloomberg, after saying gold prices will go down three weeks in a row. According to data released by the Perth Mint this week, gold coin and minted bar sales increased to 46,415 ounces in September. This is up from sales of 23,130 ounces in August. In the week ended September 28, inflows into U. S.-listed commodity ETFs totaled $644 million, reports Bloomberg, a 27-percent expansion. Precious-metals funds had $782 million of gains, the article continues, compared with $589 million the week prior. Since Vladimir Putin went on a geopolitical offensive in the Ukraine in 2014, gold had its first annual gain in four years in 2016, writes Bloomberg, and is now on track for another gain in 2017. In addition, the Bank of Russia has more than doubled the pace of gold purchases, accounting for 38 percent of all gold purchased by central banks in the second quarter alone. According to the World Gold Council, this brings the share of bullion in Russia’s international reserves to the highest of Putin’s 17 years in power, the article continues.

    This post was published at GoldSeek on Monday, 9 October 2017.


  • Russia Gold Rush Sees Record Reserves For Putin Era

    Russia Gold Rush Sees Record Reserves For Putin Era
    by Yuliya Fedorinova of Bloomberg via Irish Indepedent
    Vladimir Putin is doing his part to keep the upswing in gold alive.
    Since the Russian president went on a geopolitical offensive in Ukraine in 2014, the haven asset had its first annual gain in four years in 2016 and is on track for another in 2017.
    ***
    A beneficiary of economic and political perils from North Korea to Brexit, it’s among the top-performing commodities this year.
    Meanwhile, the Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Mr Putin’s 17 years in power, according to World Gold Council data.
    In the second quarter alone, it accounted for 38pc of all gold purchased by central banks.

    This post was published at Gold Core on October 2, 2017.


  • Bill Blain: “One Fund I Met Is Convinced Bond Markets Are On The Edge Of A Precipice”

    Blain’s Morning Porridge – September 19th 2017
    ‘I had to phone someone so I picked on you. Hey, that far out so you heard him too..’
    There is a veritable hurricane of new issues hitting the market. Like the new Ukraine deal they are being priced to sell – perhaps racing to get down before the rains come. There is the sure and certain knowledge this feeding frenzy is going to stop. With a thumping great crunch.
    But the new issue bond market is always feast/famine. There is bigger stuff happening. I managed to spend some time yesterday in the West End of London, speaking with a number of clients about where they think markets are going. Three big themes emerged:
    Much of the current ‘noise’ is utter distraction – including what’s really going on in Washington, the nuances of the Brexit negotiations, Korea and all the other political rumour and sigh hitting markets. Some of stories emanating from Whitehall, Brussels, Berlin and Washington are tremendous – I’d love to share them, but… Strip out the political flummery and noise, and the prospects for global stock markets should be positive. Every major economy that matters is now in positive growth, after 10-years we finally seem to have shaken off the Global Financial Crisis, and stock markets (which high) are not impossibly overvalued. The reflation trade is on. The fly in the ointment is the bond market. One fund I met is convinced Global bond markets and credit are on the edge of precipice and about to take that terminal step forward. Others fear the unintended consequences of taper and the ‘End of QE’ triggering a reset across global financial asset values – especially across the bond markets.

    This post was published at Zero Hedge on Sep 19, 2017.


  • AUGUST 14/3RD CONSECUTIVE RAID ATTEMPT BY OUR BANKERS FAILED WITH RESPECT TO GOLD AND SILVER/OPEN INTEREST IN SILVER CONTINUES TO FALL DESPITE THE RISE IN PRICE WHICH INDICATES BANKER CAPITULATIO…

    GOLD: $1284.70 DOWN $3.10
    Silver: $17.14 up 6 cent(s)
    Closing access prices:
    Gold $1282.20
    silver: $17.08
    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: $1292.87 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1287.85
    PREMIUM FIRST FIX: $5.02
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1290.15
    NY GOLD PRICE AT THE EXACT SAME TIME: $1285.70
    Premium of Shanghai 2nd fix/NY:$4.45
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1281.10
    NY PRICING AT THE EXACT SAME TIME: $1281.95
    LONDON SECOND GOLD FIX 10 AM: $1282.30
    NY PRICING AT THE EXACT SAME TIME. $1282.30
    For comex gold:
    AUGUST/
    NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 34 NOTICE(S) FOR 3400 OZ.
    TOTAL NOTICES SO FAR: 4521 FOR 452,100 OZ (14.062 TONNES)
    For silver:
    AUGUST
    20 NOTICES FILED TODAY FOR
    100,000 OZ/
    Total number of notices filed so far this month: 830 for 4,150,000 oz

    This post was published at Harvey Organ Blog on August 14, 2017.


  • The Secret History Of The Banking Crisis

    Accounts of the financial crisis leave out the story of the secretive deals between banks that kept the show on the road. How long can the system be propped up for?
    ***
    It is a decade since the first tremors of what would become the Great Financial Crisis began to convulse global markets. Across the world from China and South Korea, to Ukraine, Greece, Brexit Britain and Trump’s America it has shaken our economy, our society and latterly our politics. Indeed, it has thrown into question who ‘we’ are. It has triggered both a remarkable wave of nationalism and a deep questioning of social and economic inequalities. Politicians promise their voters that they will ‘take back control.’ But the basic framework of globalisation remains intact, so far at least. And to keep the show on the road, networks of financial and monetary co-operation have been pulled tighter than ever before.
    In Britain the beginning of the crisis was straight out of economic history’s cabinet of horrors. Early in the morning of Monday 14th September 2007, queues of panicked savers gathered outside branches of the mortgage lender Northern Rock on high streets across Britain. It was – or at least so it seemed – a classic bank run. Within the year the crisis had circled the world. Wall Street was shaking, as was the City of London. The banks of South Korea, Russia, Germany, France, Belgium, the Netherlands, Ireland and Iceland were all in trouble. We had seen nothing like it since 1929. Soon enough Ben Bernanke, then chairman of the US Federal Reserve and an expert on the Great Depression, said that this time it was worse.

    This post was published at Zero Hedge on Aug 9, 2017.


  • What Keeps Bank of America Up At Night

    It has been a painful, bruising intellectual exercise for BofA’s HY credit strategist Michael Contopoulos, who after starting off 2016 uber-bearish, was – together with every other money manager and advisor – taken to the woodshed, and forced to flip bullish, kicking and screaming, and advising BofA clients to buy the same junk bonds he told them to sell just a few months prior. Now, thanks to Trump, he may be finally seeing a glimmer of the bearish light returning, and in a note published this morning, Contopoulos asks whether the US is looking at a replay of 2014 and 2015, when as a reminder, a false dawn turned out to be an ugly dusk, and forced first the BOJ, then the ECB to intervene aggressively with even more QEasing.
    As BofA admits, “the last two weeks have further underpinned our belief that the market has had misplaced optimism in the new administration’s reform agenda, while we find more and more evidence that suggests the macro environment echoes that of 2014 and 2015. Meanwhile, the market environment has closely tracked that of late 2013 and early 2014, when expectations for higher rates, low defaults and strong fundamentals caused a bid for risk that sent yields to sub-5% until geopolitical risks shocked investors (a plane being shot down over Ukraine). Once cracks were exposed in 2014, and illiquidity concerns replaced a FOMO (fear of missing out) attitude, the ensuing collapse in crude left investors woefully unprepared for the troubles of the next year and a half.”

    This post was published at Zero Hedge on May 25, 2017.


  • Key Events In The Coming Week: FOMC Minutes, GDP, BOC, OPEC And More

    The key highlights in the coming week are the Fed minutes, the Eurogroup meeting on Greece, the OPEC meeting and Bank of Canada rate decision. We also get GDP releases in the US, Eurozone, and UK, while a murder (or gaggle) of Fed speaker will highlight virtually every single day, starting with 4 today. Also there will be monetary policy meetings in Colombia, South Africa, Korea, Hungary, Thailand and Ukraine. Ratings in Kuwait&Qatar
    In the US, key economic releases this week are the durable goods report and Q1 GDP revision on Friday. The minutes of the May FOMC statement will be released on Wednesday at 2PM. In addition, there are several scheduled speaking engagements by Fed officials this week
    Detailed event breakdown:
    Looking for dovish signs in the Fed minutes? The minutes on the May statement will be closely watched as the market tries to assess the potential of a communication tweak. The last statement dismissed the impact of weak 1Q GDP and March consumer inflation. With recent data being on the weak side, a dovish sign in the minutes may put emphasis on downside risks. Also watch for Eurogroup meeting on Greece and OPEC: A Eurogroup meeting is scheduled for 22 May. All eyes will be on the outcome because of Greece. Markets are optimistic that a compromise can be reached on Greece – we remain sceptical. Red lines around debt relief and IMF participation are the same and there is potential for complications in the run-up to the summer redemptions. Our commodity strategists cover the likely outcome at next week’s OPEC meeting. We think that Saudi, Russia, and most OPEC members will try sending the oil price forward curve in backwardation/ensuring no further drops in spot oil prices. Staying the course with ongoing cuts remains the most likely course of action as OPEC meets.

    This post was published at Zero Hedge on May 22, 2017.


  • Key Events In The Holiday-Shortened Wee

    In this holiday-shortened week (markets closed for Good Friday), focus turns to several inflation prints in G10 in the week ahead, with US and UK inflation data likely to get the most attention. In addition, there are a few scheduled speaking engagements by Fed officials, including a speech by Fed Chair Yellen on Monday.
    Away from the US, the street expects the Bank of Canada to remain on hold, keeping the overnight rate target at 0.5%. Despite recent improvement in some economic data, slack remains in the economy and there is no evidence of demand pressure on prices. More interesting for the markets will be the message that the BoC chooses to send through the combination of the interest rate announcement, the monetary policy report and the press conference.
    In Emerging Markets there will be monetary policy meetings in Brazil, Chile, Korea, Kazakhstan and Ukraine. Brazils BCB is expected to cut the selic rate 100bp. Chiles BCCH will likely cut the monetary policy rate by 25bp.

    This post was published at Zero Hedge on Apr 10, 2017.


  • Moscow And Beijing Join Forces To Bypass US Dollar In Global Markets, Shift To Gold Trade

    The Russian central bank opened its first overseas office in Beijing on March 14, marking a step forward in forging a Beijing-Moscow alliance to bypass the US dollar in the global monetary system, and to phase-in a gold-backed standard of trade.
    According to the South China Morning Post the new office was part of agreements made between the two neighbours “to seek stronger economic ties” since the West brought in sanctions against Russia over the Ukraine crisis and the oil-price slump hit the Russian economy.
    According to Dmitry Skobelkin, the deputy governor of the Central Bank of Russia, the opening of a Beijing representative office by the Central Bank of Russia was a ‘very timely’ move to aid specific cooperation, including bond issuance, anti-money laundering and anti-terrorism measures between China and Russia.
    The new central bank office was opened at a time when Russia is preparing to issue its first federal loan bonds denominated in Chinese yuan. Officials from China’s central bank and financial regulatory commissions attended the ceremony at the Russian embassy in Beijing, which was set up in October 1959 in the heyday of Sino-Soviet relations. Financial regulators from the two countries agreed last May to issue home currency-denominated bonds in each other’s markets, a move that was widely viewed as intended to eventually test the global reserve status of the US dollar.
    Speaking on future ties with Russia, Chinese Premier Li Keqiang said in mid-March that Sino-Russian trade ties were affected by falling oil prices, but he added that he saw great potential in cooperation. Vladimir Shapovalov, a senior official at the Russian central bank, said the two central banks were drafting a memorandum of understanding to solve technical issues around China’s gold imports from Russia, and that details would be released soon.

    This post was published at Zero Hedge on Apr 1, 2017.


  • MARCH 3/GOLD AND SILVER RISE SHARPLY ON JANET YELLEN’S SPEECH/A MUST READ FROM TED BUTLER/DEUTSCHE BANK TUMBLES ON A NEW 10 BILLION EURO STOCK OFFERING/UKRAINE ULTRA NATIONALISTS BLOCKADE COAL FR…

    Gold at (1:30 am est) $1225.50 down $6.40
    silver was : $17.70: down 0 CENTS (unchanged)
    Access market prices:
    Gold: $1235.00
    Silver: $17.98
    For comex gold:
    MARCH/
    NOTICES FILINGS TODAY FOR MARCH CONTRACT MONTH: 5 NOTICE(S) FOR 500 OZ. TOTAL NOTICES SO FAR: 44 FOR 3900 OZ (0.1368 TONNES)
    For silver:
    For silver: MARCH
    302 NOTICES FILED TODAY FOR 1,510,000 OZ/
    Total number of notices filed so far this month: 1420 for 7,100,000
    FEDERAL RESERVE BANK OF NEW YORK/GOLD MOVEMENT REPORT
    In January reported that the total amount gold inventory at the FRBNY was 7,841 million dollars worth of gold valued at 42.21 dollars per oz.
    In February: the total amount of gold inventory at the FRBNY remains at 7,841 million dollars valued at 42.21 dollar per oz
    Thus movement is zero.

    This post was published at Harvey Organ Blog on March 3, 2017.


  • Russia ups gold reserves by another 31.1 tonnes — Lawrie Williams

    After last month’s hiatus when the Russian central bank added no gold into its reserves, it came back again with a vengeance in January 2017. According to figures released yesterday, the country upped its gold reserves last month by a massive 1 million ounces (31.1 tonnes), bringing its total reserve holding to around 1,645 tonnes. This keeps Russia in sixth place among global national gold holders, at least as far as reserve figures as submitted to the IMF tell us, still nearly 200 tonnes behind China in fifth place, but closing the gap.
    Last year, Russia added a total of just short of 200 tonnes of gold into its reserves while China added around 80 tonnes (with nothing at all added in November and December) with the total at end-2016 standing at 1,842.6 tonnes according to the IMF-reported figure. At current rates of purchase by both countries, Russian gold reserves could surpass those of China by early to mid 2018.
    We also learned some other interesting data about the Russian economy in that the country, despite a U.S.-imposed economic war, supposedly to remain in place until Crimea is returned to Ukraine (which we don’t see happening), is probably in a better technical financial state than the U.S.. Unlike the USA which has trillions of dollars of debt, Russia has one of the lowest debt to GDP ratios in Europe and is bringing it down further. Yes, U.S. and European economic sanctions are damaging, but they are also mind-focusing and Russia is taking steps to rather more than just survive under the current sanctions regime. Buying gold and divesting itself of its holdings in U.S. Treasuries is part of its master plan for so doing.

    This post was published at Sharps Pixley


  • Can Trump Fix The Economy In 2017? – Paul Craig Roberts

    In the West Junk Information And Junk Judgment Prevail
    The Western world and that part of the world that partakes of Western explanations live in a fictional world. We see this everywhere we look – in the alleged machinations of Russia to elect Donald Trump president of the US, in claims that Saddam Hussein and his (nonexistent) weapons of mass destruction were a threat to the United States (a mushroom cloud over American cities), that Assad of Syria used chemical weapons against his own people, that Iran has a nuclear weapons program, that a few Saudi Arabians outwitted the entirety of the US, EU, and Israeli intelligence services and delivered the greatest humiliation to the ‘world’s only superpower’ in the history of mankind, that Russia invaded Ukraine and could at any moment invade the Baltics and Poland, that the US rate of unemployment is 4.6%, that China’s trade surplus with the US is due to Chinese currency manipulation, and so on and on.
    Allegedly we live in a scientific era of information, but what good can come from faulty orchestrated information? As long as fake news delivered by presstitutes serves powerful private and governmental interests, how can we know the truth about anything?
    For example, consider the claim found everywhere in US government and US media statements that the massive US trade deficit with China is the result of Chinese currency manipulation, keeping the yuan underpriced relative to the US dollar.

    This post was published at Paul Craig Roberts on January 3, 2017.


  • Turkey’s “Long Arm” In Europe

    Submitted by Burak Begdil via The Gatestone Institute,
    Turkey has finally won the title of having the world’s first spook-imams. Turkey is exporting its political wars and tensions to Europe. That is not a good sign for the Old Continent. Officially, Turkey’s General Directorate for Religious Affairs (Diyanet in Turkish) has a mission about offering institutional religious services independent of all political ideologies. In practice, Diyanet’s understanding of “offering institutional religious services” can be different from what the term should mean. Recently, the office of Istanbul’s mufti, an official of Diyanet, described the location of a mosque as “… it was [in the past] a filthy Jewish and Christian neighbourhood.” After press coverage, the depiction was removed from the web page.
    Diyanet’s “institutional religious services” may sometimes even overlap with what in other countries people call intelligence. In a briefing for a parliamentary commission, Diyanet admitted that it gathered intelligence via imams from 38 countries on the activities of suspected followers of the US-based preacher Fetullah Glen, whom the Turkish government accused of being the mastermind of the attempted coup on July 15. As if it is the most normal thing in the world, Diyanet said its imams gathered intelligence and prepared reports from Abkhazia, Germany, Albania, Australia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Denmark, Estonia, Finland, Georgia, the Netherlands, the United Kingdom, Sweden, Switzerland, Italy, Japan, Montenegro, Kazakhstan, Kenya, Kyrgyzstan, Kosovo, Lithuania, Macedonia, Mongolia, Mauritania, Nigeria, Norway, Poland, Romania, Saudi Arabia, Tajikistan, Tanzania, Turkmenistan and Ukraine.

    This post was published at Zero Hedge on Jan 1, 2017.


  • Krugman Snaps, Tweets Trump Will Turn America Into “All Out Kleptocracy Like Russia Or Ukraine”

    So, who could have seen this coming? The man who refused to release his tax returns — getting almost no heat from the media 1/
    — Paul Krugman (@paulkrugman) November 15, 2016

    Just a few days after his latest tweetstorm attacking Donald Trump, the NYT house economist was once again unleashed on Twitter lashing out, only this time he took aim not only at president-elect Donald Trump but also his campaign, contradicting Ray Dalio’s optimistic assessment of America under a Trump administration, instead predicting that Trump would turn the US into an “all-out kleptocracy, along the lines of what happened in Russia or Ukraine.”
    The Keynesian expert took aim at Trump’s still to be finalized public and private infrastructure plan, and suggested that instead of boosting public spending it would “be largely about privatizing public assets.” His allegation is that instead of infrastructure investments, the upcoming spending spree would convert public assets into private projects: “His transition team is basically all lobbyists and his infrastructure plan, such as it is, sounds as if it’s going to be largely about privatizing public assets” Krugman tweeted.
    Krugman also accused Trump that the inclusion of lobbyists within his transition team shows that he “won’t separate himself from his business interests.”

    This post was published at Zero Hedge on Nov 15, 2016.


  • Bond Markets Hit Another ‘Ukrainian Chicken Moment’

    Two European companies — French drug maker Sanofi and German household products maker Henkel — last week became the first firms to persuade investors to pay them to borrow euros. By selling bonds yielding minus 0.05 of a percentage point, they may well have signaled the bond market’s peak, delivering this decade’s equivalent of the “Ukrainian Chicken Farm Moment.”
    That phrase refers to the 2006 sale of $250 million of bonds by Myronivsky Hliboproduct which, according to its description on the Bloomberg terminal, is “a vertically integrated producer of poultry products in Ukraine.” Few investors had ever heard of the Ukrainian chicken breeder, but with an interest rate north of 10 percent, buyers were clamoring for the MHP bonds. Bill Blain, currently at Mint Partners in London, was one of the bankers who brought the deal to market. He recalls the bidding frenzy:
    “It was massively oversubscribed. A few weeks later, bird flu broke out in Hong Kong. The chicken farm was uninsured. The market immediately discounted the notes and the price crashed 30 percent or more. That moment of supreme belief when anything is possible in the new issues market will always be remembered as “The Ukrainian Chicken Farm Moment.“”
    An investor who buys some of Sanofi’s 1 billion ($1.12 billion) of bonds and holds them until they’re repaid in three years is guaranteed to lose money.

    This post was published at bloomberg


  • Russia Further Depletes Reserves to Cover Budget Shortfalls

    The Russian news agency Tass reports that the government has accessed its reserve funds for the third time this year in order to cover a shortfall in the national budget. Tass reports that this time around, the government transferred $6 billion from its reserve fund.
    This latest move to tap the fund brings the amount depleted from the fund to 18 percent in August to $32.22 billion. In April and May, the Russian government pulled a total of $12 billion from the fund to cover budget deficits. In July, the International Monetary Fund stated that it expected Russia to stay in its recession due to the drop in oil prices combined with sanctions from the West over the situation in the Ukraine.
    The IMF expects a moderate recovery for the country in the coming year.

    This post was published at FinancialSense on 09/06/2016.