BACKDOC: SEVERAL WEEKS AGO I MENTIONED I THOUGHT WE COULD SEE THE POUND DEVALUE AND SINCE I TOLD YOU IT HAS DONE JUST THAT.
NOW YOU HAVE INK ON IT! THE REAL ISSUE HERE IS WHAT WILL HAPPEN TO THE EUROZONE IF THE BRITS LEAVE?
OF COURSE THEY WILL PAY DEARLY AS THIS ARTICLE SAYS BUT WHAT WILL HAPPEN TO THE EURO? IT SEEMS THE AGREEMENT THAT HOLDS THE EUROZONE TOGETHER IS UNDER ATTACK IN SO MANY DIRECTIONS IT SEEMS POSSIBLE THERE COULD BE A BANKING ACCIDENT!
THE EUROZONE BANKS ARE GETTING CLOSE TO FAILURE SINCE THEY ARE STRUGGLING TO MAKE PROFITS AS EVIDENCED BY DEUTCH BANK SUFFERING LOSSES!
IT SEEMS AS IF IT WAS DONE ALMOST ON PURPOSE! MMM
Mountainman: So Doc if The Pound Is “Potentially” heading for a CRASH COURSE/Along W/some other Foreigners…So to Speak….
Then WHAT and WHEN might The DOLLAR Take A Spill IYO???…ALL this “Petro Slick” Lying AROUND IMO….Could cause a….POTENTIALLY SERIOUS ACCIDENT…..Don’t You THINK???……Steer Clear from HERE!!!
BACKDOC: I HAVE A FEELING THEIR ATTEMPT WILL BE TO LET THE DOLLAR GRADUALLY FADE AWAY LIKE A LOYAL SOLDIER “MCARTHER”
THE EURO ON THE OTHER HAND I THINK COULD CRASH COMPLETELY TO RID THE WORLDS BANKING SYSTEM OF TOXIC DEBT! REGARDLESS, THERE WILL AT LEAST BE BANKING FAILURES COMING!
Thunderhawk: Backdoc Alert
The pound could fall as much as 20 percent if Britain quits the European Union, according to Goldman Sachs Group Inc.
The U.S. investment bank doesn’t expect U.K. citizens to vote to leave the EU in the referendum that may be held as soon as June. But if they did, it predicts sterling could drop to $1.15-$1.20 — levels last since in 1985. It was at $1.4638 as of 9:25 a.m. London time on Thursday.
A “Brexit” would lead to an “abrupt and total interruption” of incoming capital flows, analysts led by chief currency strategist Robin Brooks wrote in a note.
With traders pushing back the timing of a Bank of England rate increase into 2018, and some economists starting to talk about a cut to borrowing costs, sterling has weakened 5 percent versus the dollar since October. Britain’s current-account deficit leaves the pound particularly vulnerable to a drying up of investment flows should the nation leave the EU, the Goldman Sachs analysts wrote.
Concern that a “Brexit” would jeopardize London’s role as a global financial center has prompted the banking industry to rally against that outcome, with Goldman Sachs donating hundreds of thousands of pounds to the campaign to keep Britain inside the EU.
Sterling may also weaken to about 90 to 95 pence per euro if the worst happened, Goldman Sachs analysts predict, from 76.20 pence on Thursday.
http://www.bloomberg.com/news/articles/ … -on-brexit
IF S.A.(Saudi Arabia) CHANGES OVER TO SETTLE THEIR CURRENCY IN YUAN THEY CAN REPAIR THE NOTE COUNT VERY QUICKLY DUE TO THE AMOUNT OF YUAN DOLLARS THAT THEY COULD SETTLE IN.
THEY COULD DO LIKE VIETNAM DID WHERE THE THEY ARE DOING 80 PERCENT OF THEIR CONTRACTS IN DOLLARS AND 20% IN OTHER CURRENCIES.
VERY SIMPLY IF YOU WANT TO REDUCE YOUR NOTE COUNT YOU SELL IN DONG OR RIAL BUT BUY IN DOLLARS OR YUAN DEPENDING WHETHER YOUR IN VIETNAM OR S.A..
IF YOU GET PAID IN YOUR OWN CURRENCY YOU CAN REDUCE THE NOTE COUNT TO RAISE THE CURRENCY VALUE! DOC IMO
Oil retreated as the highest U.S. crude supplies in more than 80 years outweighed a weakening U.S. dollar.
West Texas Intermediate oil slipped 1.7 percent. Crude stockpiles climbed 7.79 million barrels to 502.7 million last week, the highest since the 1930s, according to weekly and monthly data from the Energy Information Administration. Futures climbed as much as 4.1 percent earlier as the Bloomberg Dollar Spot Index, which tracks the currency against major peers, declined on signs of a slowing U.S. economy.
“There’s only so much the dollar can do in the face of these overwhelming fundamentals,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “It looks like we’ve priced in the dollar’s weakness.”
Oil is down 14 percent this year as the market focuses on an expected boost in Iranian exports after the removal of sanctions and brimming U.S. crude stockpiles. Venezuela said six OPEC members and two non-members would attend an extraordinary meeting if one is called. Commerzbank AG said it’s skeptical that any output cuts will result from the effort. Royal Dutch Shell Plc said fourth-quarter profit fell 44 percent.
Brent for April settlement fell 58 cents, or 1.7 percent, to $34.46 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude closed at an $1.08 premium to April WTI.
“The low is in,” T. Boone Pickens, the founder and chairman of BP Capital LLC, said Thursday in an interview on “Bloomberg Go.”“The market is going to be volatile. It’s not going to go straight up, so there will be good entry points.”
Signs of a slowing U.S economy have hurt the dollar by derailing wagers that the Federal Reserve would continue raising interest rates while other central banks increased stimulus. Currency traders are catching up to the bond market, where 10-year yields sank to the lowest in a year on Wednesday and futures sent the strongest signal yet that traders expect the Federal Reserve to stand pat on rates in 2016.
Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI at the nation’s biggest storage site, rose by 747,000 barrels to 64.2 million last week, 24,000 barrels short of a record, EIA data show. Gasoline stockpiles climbed 5.94 million barrels to 254.4 million, the highest in weekly records going back to 1990.
“There’s a lot of skepticism that the Venezuelans will get anything accomplished,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The market keeps switching its focus from the glut we have now and the tighter supplies we should have in a few months. The massive cuts in capital expenditures we’re hearing in earnings calls guarantee that supplies will be tighter down the road.”
Statoil ASA, Norway’s biggest oil company, deepened investment cuts and offered to pay dividends in stock. Royal Dutch Shell said it depleted its oil and gas reserves much faster than it replenished them with new resources in 2015, its worst performance since 12 years ago.
http://www.bloomberg.com/news/articles/ … stockpiles
BACKDOC: REMEMBER, THE ONLY MONEY CREATION WILL COME FROM THE SDR’S IN THE IMF! ULTIMATELY THEY ALL WILL ANSWER TO THAT TUNE!
Thunderhawk: LOOKS LIKE WE’RE PLAYING MUSICAL CHAIRS HERE
Choehuinam former Secretary of the World Bank executive directors elected … ‘AIIB members including advanced Performance’
Choehuinam former Ministry of Strategy and Finance International Economics Officer (Secretary, photograph) 3 (Reuters) – World Bank headquarters in Washington, DC (World Bank Group) was elected to the Executive Director.
Choi new directors in the past World Bank Director chamber advisers, the base unit foreign currency funds Director, International Monetary Fund (IMF) deputy director, major 20 countries (G20) Planning Director, G20 Seoul Summit Preparatory Committee Agenda Executive Director, International Financial Policy Bureau, etc. is a leading international finance throughout my rough through the government.
Substrate section official “best new director has got a wide network and extensive experience in international banking and financial sectors of Korea in the international development sector is expected to play a leading role,” he said. Korea Investment Corporation Jeddah last month term unexpired term on October 31 of this year, the former director eunseongsu moved into place (KIC) President.
The World Bank Group consists of a International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), the International Investment Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), the International Center of Investment Disputes (ICSID)
https://translate.google.com/translate? … rev=search
BACKDOC: IT DOESN’T TAKE A MENTAL GIANT TO FIGURE OUT THAT DEFLATION IS KILLING THE BANKS.
ITS OBVIOUS THE SYSTEM IS ABOUT TO COLLAPSE WITHOUT SOME SORT OF BAILOUT!: DOC IMO
ThunderHawk » February 5th, 2016
Over a Fifth of Global GDP is Now Covered by a Central Bank With Negative Rates
The world’s economies are going negative.
On Friday, the Bank of Japan 8301.TO -1.03% became the latest to join, cutting the rate it charges banks on new excess reserves to minus 0.1%. The rate on reserves is currently 0.1%, and existing holdings at the central bank will still carry that rate of interest.
In the middle of 2012, the Danish central bank, the Danmarks Nationalbank, moved its deposit rate into negative territory.
Two years later, the European Central Bank and Swiss National Bank SNBN.EB +1.98% moved into negative territory and Sweden joined the club in early 2015.
The ECB and BOJ together are responsible for around 21% of global GDP. Swiss, Swedish and Danish GDP add up to less than 2.5% of the global total.
So far the moves to negative interest rates have been relatively shallow, with almost all set at less than minus 1%.
But even if the size of the move isn’t dramatic, the fact that banks are willing to do this is. Never before have so many central banks explored sub-zero territory at the same time. That’s leading analysts to predict that negative rates could be an important tool in any future crises.
Correction: The share of global GDP covered by central banks with negative rates is 23.1%, not 23.3%.
Thunderhawk: Are global markets losing faith in central banks?
There’s never been a shortage of criticism—much of it wildly misplaced—when it comes to quantitative easing and other extraordinary measures launched by central banks in the wake of the financial crisis. But recent events have market watchers worrying that central bankers are starting to lose their ability to steer markets.
While the Bank of Japan’s surprise decision Friday to push interest rates into negative territory had the desired effect of sending the yen USDJPY, +0.07% and bond yields TMUBMUSD10Y, +0.02% lower and allowed the Nikkei index NIK, -1.32% to ultimately end higher, the market volatility that followed the move didn’t reflect the kind of market confidence the central bank undoubtedly wanted to see, said Michala Marcussen, global head of economics at Société Générale, in a Sunday note.
The wildest predictions of central bank critics never came to pass (remember how QE was going to lead to the collapse of the dollar DXY, +0.05% and turn the U.S. into Zimbabwe?). Marcussen’s critique isn’t along those lines.
She notes, instead, that “solid central bank credibility was long taken as a given.” What’s changed is that with many central banks continually undershooting their inflation targets despite extremely accommodative monetary-policy measures, there is a growing worry that the ability of monetary policy to affect the real economy is somehow impaired.
There are a number of potential causes running from stubbornly high levels of debt, financial regulation, a “race to the bottom” in foreign exchange rates and weak global growth, she notes, adding that the collapse of an emerging-markets and commodity-credit bubble have added another obstacle.
Marcussen is hardly alone in worrying whether central banks are running out of road. In his new book, “The Only Game In Town: Central Banks, Instability and Avoiding the Next Collapse,” economist Mohamed El-Erian credits central banks with averting a global economic catastrophe in the wake of the financial crisis but lack the tools to engineer a return to high inclusive growth and financial stability.
What’s worrying, she says, is that recently, “the market response to renewed central bank action no longer seems to carry quite the same punch. The weeks ahead will bring an important test hereof.”
http://www.marketwatch.com/story/are-gl … 2016-01-31
BACKDOC: THE GREATEST BOND INVESTOR IS WARNING TO GET OUT!
RIGHT! ASSET BACKED CURRENCIES OR BONDS!
TIME MAY BE SHORT SO STEP RIGHT UP AND CALL 1800 FRANKIE FRANKIE FOR ALL YOUR DIVERSE CURRENCY NEEDS! YOU WON’T REGRET IT, HE MAY EVEN SEND YOU WARM COOKIES WITH YOUR ORDER! HEE HEE
THIS COMMERCIAL IS BROUGHT TO YOU BY DING DONG DOC WISHING YOU ALL TO BE FREE!
Negative rates are all the talk again after the Bank of Japan last week surprised investors by announcing it would charge banks to park a portion of their excess reserves. Now, some see the potential for some European corporate bonds to join the negative-yield party.
See: What you need to know about the Bank of Japan and negative interest rates.
Deutsche Bank DB, +1.86% strategist Jim Reid, in a Tuesday note, observed that such a phenomenon would go against the widely held perception that investors won’t buy corporate bonds with a negative yield.
Investors typically use government securities as the reference point when it comes to corporate yields. The spread, measured in basis points, is the yield premium demanded by investors to hold corporate debt over government debt, which are typically perceived as safer.
Recent evidence, however, doesn’t support the case, Reid said, noting that 1-3 year and 3-5 year euro AA spreads have remained range bound over the last six months while 2- and 4-year yields on German government bonds, or bunds TMBMKDE-10Y, -4.25% have pushed deep into negative territory.
“Our central view is that zero might be a temporary resistance point if government yields rally further but that at some point the dam will break and corporates will trade on a spread basis and go sub-zero,” Reid wrote.
As the chart from Deutsche Bank below shows, a significant proportion of shorter-maturity corporates are already flirting with zero.
“Clearly, it’s not as big a market, but the zero bound didn’t hold for corporates here,” he said.
BACKDOC: IF OUR NEW NARRATIVE MEANS SOMETHING AND OIL DOES DECOUPLE BASED ON MY THOUGHTS I SHARED, OIL WILL SOON MAKE A RECOVERY REGARDLESS OF SUPPLY AND DEMAND BECAUSE CONTRACTS WILL DETERMINE PRICES ALONG WITH A HUGE CHANGE IN DOLLAR/YUAN VELOCITY CHANGES! DOC IMO
Thunderwawk: Citi: ‘We Should All Fear Oilmageddon’
Markets are currently in a well-oiled “death spiral,” according to Citigroup Inc. analysts led by Jonathan Stubbs.
“It seems reasonable to assume that another year of extreme moves in U.S. dollar (higher) and oil/commodity prices (lower) would likely continue to drive this negative feedback loop and make it very difficult for policy makers in emerging markets and developing markets to fight disinflationary forces and intercept downside risks,” the analysts add. “Corporate profits and equity markets would also likely suffer further downside risk in this scenario of Oilmageddon.”
Their case is bolstered by a collection of charts showing the linkages between the four factors cited above, including the importance of lofty oil prices to the ready supply of petrodollars circulating in the world economy and flowing to financial assets. Oil exporters have enjoyed more than $6 trillion flowing into their current accounts, according to Citi’s estimates, implying some $4 trillion of capital in sovereign wealth funds (SWFs).
“But, the collapse in oil/commodity prices and sharp fall in the pace of world trade means that these same economies will likely experience an aggregate current account deficit for the first time since 1998,” says Citi. “In turn, this is likely to put pressure on SWF and broader emerging market liquidity as governments and emerging market economies would need to ‘lean’ on reserves in order to maintain economic, political and social stability. This has clear feedback loops across emerging markets.”
Accordingly, the impact of the feedback loop is being felt far and wide in financial markets, extending even to U.S. inflation expectations. Where once 10-year inflation breakevens had little relationship with the price of oil they have for the past two years moved in tandem.
However, a move “the other way would add fuel to a ‘significant and syncronised’ global recession,” the bank warns warns.
“We should all fear Oilmageddon,” Citi concludes. “Global recession, as we define it, would leave nowhere to hide in equities. Cash wins.”
http://www.bloomberg.com/news/articles/ … ilmageddon
BACKDOC: JUST A WORD FOR OUR FUTURE, BUYING STORABLE FOOD IN LARGE QUANTITY WOULD BE SMART IN MY BOOK! BLESSINGS DOC IMO
Zimbabwe’s government plans to declare a national emergency over food shortages as the United Nations warned the situation is worsening at an “alarming” pace and price-spikes for basic commodities are looming.
“We are going to announce to the world the hunger we’re facing,” Vice President Emmerson Mnangagwa told lawmakers in the capital, Harare, on Thursday. “We have drought in this country and it is a pending disaster,” he said. President Robert Mugabe will make the announcement in days, he said.
Zimbabwe is facing the worst drought in almost two decades, which cut agricultural yields and farmers are losing their cattle as watering holes and pastures dry up. The government has earmarked $200 million for food imports and signed agreements to buy at least 100,000 kilograms (100 metric tons) of corn from neighboring Zambia, said Mnangagwa.
About 1.5 million of Zimbabwe’s 12 million people currently need emergency food assistance, and that number may triple this year, said Social Welfare Minister Prisca Mupfumira on Feb. 1.
The drought has also affected South Africa and Zambia, the region’s biggest corn producers respectively.
http://www.bloomberg.com/news/articles/ … -shortages
BACKDOC: GOOD NIGHT FAMILY! IT WAS FUN SHARING SOME GOOD NEWS AND SOME STRATEGIES THAT IMPACT THE GLOBAL MONETARY REFORM!
BOTTOM LINE IS THAT IS WHY WE ARE STUDYING IT SO DILIGENTLY!!!!!!!!
THERE ARE GOING TO BE OPPORTUNITIES FOR MONEY MAKING BUT NOT IF YOU DON’T HAVE A BASIC UNDERSTANDING====== STUDY -STUDY -STUDY!
THE PARABLE OF THE TALENTS ABSOLUTELY APPLIES HERE!!!!!!!!!!
BE A GOOD STEWARD OF GOD’S GIFT’S TO YOU AND THOSE YOU ARE TO MINISTER TO!!!!!!