Goldilocks

Goldilocks’ Comments and Global Economic News for Saturday evening, August 26, 2023

Good evening Dinar Recaps,

Goldilocks posted comments and news links on the global financial system:

Japan blockchain startup seeks to build Asian digital payment network | KrASIA
https://kr-asia.com/japan-blockchain-startup-seeks-to-build-asian-digital-payment-network

Russia’s presidency of BRICS+ starts next year. Let’s see how the agenda changes under Putin’s control…

https://twitter.com/MacleodFinance/status/1695343356040167781?t=FdXGxkftEYLRbxgCv3xiZQ&s=19

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The Securities and Exchange Commission proposed new rules and amendments under the Investment Advisers Act
of 1940 (Advisers Act) to enhance the regulation of private fund advisers. The proposed new rules would:

Require private fund advisers registered with the Commission to provide investors with quarterly statements
detailing information about private fund performance, fees, and expenses;
Require registered private fund advisers to obtain an annual audit for each private fund and cause the private fund’s auditor to notify the SEC upon certain events;
Require registered private fund advisers, in connection with an adviser-led secondary transaction, to distribute to investors a fairness opinion and a written summary of certain material business relationships between the adviser and the opinion provider;
Prohibit all private fund advisers, including those that are not registered, from engaging in certain activities and practices that are contrary to the public interest and the protection of investors; and
Prohibit all private fund advisers from providing certain types of preferential treatment that have a material negative effect on other investors, while also prohibiting all other types of preferential treatment unless disclosed to current and prospective investors.

Additionally, the SEC is proposing to require all registered advisers, including those that do not advise private funds, to document the annual review of their compliance policies and procedures in writing.

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The Investment Advisers Act of 1940, codified at 15 U.S.C. § 80b-1 through 15 U.S.C. § 80b-21, is a United States federal law that was created to monitor and regulate the activities of investment advisers as defined by the law. Wikipedia

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In financial services, a broker-dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at the heart of the securities and derivatives trading process.[1]

https://en.m.wikipedia.org/wiki/Broker-dealer

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In the United States, a financial adviser carries a Series 7 and Series 66 or Series 65 qualification examination. According to the U.S. Financial Industry Regulatory Authority (FINRA), qualification designations and compliance issues must be reported for public view.[1] Details of formal compliance issues can be found on the Investment Adviser Public Disclosure (IAPD) website and details of non-formal issues can be found on Onesta.

FINRA specifies the following groups who may use the term financial advisor: brokers, investment advisers, private bankers, accountants, lawyers, insurance agents, and financial planners.[2] Financial advisors need to be able to take the full picture of the client’s financial situation into account.[3]

https://en.m.wikipedia.org/wiki/Financial_adviser

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Jerome Powell’s speech at the Jackson Hole symposium has made no significant changes to the markets yet, but he remains hawkish on interest rates until we get a firm control on inflation.

We have seen in the banking system many changes behind the scenes. Interest rates will take a toll on many of our banks going forward. We have more and more Banks being bought out because they do not have enough money to get in compliance with Basel 3 reforms. You can call this failures or you can call it consolidation. It depends on your point of view.

The truth is we have a lot going on in the markets. Real numbers are out of sight and away from public view. How this gets resolved is anybody’s guess, but we will be here to lay it out the best we can in this room as we proceed further down the road.

Over the past two years, we have shared with you new statistical mechanisms designed to read our markets in new innovative ways. Innovation does not come to a market without changes about to take place to complement these new readings.

Because of these new mechanisms, we can say that the reset in the marketplace has been going on for some time. Let’s see where it goes next.

https://www.kitco.com/news/2023-08-25/Powell-leans-hawkish-as-expected-markets-show-no-significant-reactions.html

https://www.occ.gov/topics/charters-and-licensing/weekly-bulletin/2023/index-weekly-bulletin-2023.html

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The BRICS System is a payment system that utilizes local currencies. This was one of the main characteristics that clearly came out during their conference.

And yes, Saudi Arabia was one of the six new additions to the BRICS System. Payments on oil production is expected to change in the next few months creating more price pressures on the dollar to come into alignment with a real value.

These new changes come into effect on January 1st 2024 along with Putin assuming the annual Presidency of the BRICS Nations. His preference towards gold supporting an economy is well known.

You can almost feel those changes coming as the BRICS Nations represent a quarter of the world’s wealth and 42% of the global population.

Atlantic Council Link

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BRICS Member India Ditches US Dollar, Purchases 1,000,000,000 Barrels of Oil With Rupees for First Time Ever: Report – The Daily Hodl
https://dailyhodl.com/2023/08/25/brics-member-india-ditches-us-dollar-purchases-1000000000-barrels-of-oil-with-rupees-for-first-time-ever-report/

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What is the CFTC?

The CFTC is a market regulator like the SEC. Only instead of stocks and bonds, we regulate derivatives of commodities like wheat, oil, and copper, as well as of interest rates and other financial products. The risk management functions of these markets are integral to the global response to climate change.

[2] These markets help discover prices for commodities like a megawatt hour of solar power generation or the lithium used in electric vehicles and batteries. They can be used to hedge interest rate risk for long-term investments under the IRA or to hedge the risk that severe climate events pose to row crops.

https://www.cftc.gov/PressRoom/SpeechesTestimony/oparomero10

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Banking Announcement:

Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand will strengthen cooperation to promote the use of local currencies in bilateral transactions.

https://www.pattayamail.com/thailandnews/indonesia-malaysia-and-thailand-promote-use-of-local-currencies-in-bilateral-transactions-439186

Mortgage Rates Adjust to New Era, Jump to Highest since 2001. Long-Term Treasury Market Slowly Coming out of Denial | Wolf Street
https://wolfstreet.com/2023/08/24/mortgage-rates-adjust-to-new-era-jump-to-highest-since-2001-long-term-treasury-market-slowly-coming-out-of-denial/

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The Global Gold Market is undergoing several changes. One of which is who has control.

Statistical data is showing that the gold market is moving in favor of our Eastern countries because of their movement back and forth with gold and utilizing it for trade.

“The East has been driving up the gold price, predominantly in late 2022 and the first months of 2023, breaking the West’s long-standing pricing power.”

As the West begins to lose some of its gold pricing power, it becomes more advantageous for Global Markets to utilize local currencies over a World Reserve Currency. These new demands will raise the value of local currencies going forward.

Central Banks in the East have been buying up gold to support their economies. These new changes will put global pressures on the price of gold releasing some of the stronghold on gold for it to rise to a real value.

https://www.gainesvillecoins.com/blog/the-west-is-losing-control-over-gold-price

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💥 XLM HUGE NEWS UPDATE 💥 PAY ATTENTION TO THIS CRYPTO 💥 STELLAR EXPANSION INCOMING!

https://youtu.be/dts1OEM9hXQ?feature=shared

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G20: India hopeful of reaching consensus on key trade areas

EconomicTimes Link

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4 takeaways from Powell’s Jackson Hole speech

The Fed isn’t done with restrictive monetary policy.

Inflation is down, but not by enough.

2% remains the inflation target.