Thunderhawk: DOCTOR WHERE’S TH RV
BACKDOC: FIRST THINGS FIRST MY FRIEND!!
WE LOOK FOR THE ECONOMIC HORSE TO JUMP OUT OF THE STARTING GATE. ONCE THAT IS ACCOMPLISHED WE WILL SEE THE CHINA ANNOUNCEMENT IN THE SDR. THIS WILL BEGIN THE ECONOMIC TRANSITION TO THE NEW GLOBAL REALITY!
ONCE THIS IS FIRMLY IN PLACE THE OLD SYSTEM WILL BE ALLOWED TO BE REPLACED. LOOK FOR THIS WEEK TO SEE OIL DROP IN TO THE 30 DOLLAR A BARREL PRICE RANGE.
THE CONTINUED GLUT OF BLACK GOLD SITTING IN TANKERS AND STORAGE FACILITIES WITH NO WHERE TO GO WILL CREATE A CRISIS THAT I TALKED ABOUT AS AN ECONOMIC BOMB!
IF YOU SEE YOUR RATE SOONER THAN LATER BE CAREFUL MY FRIENDS BECAUSE THE G 20 IS NOW GOING TO ALLOW BAIL INS TO PROTECT THE BIGGEST 30 BANKS.
YOU NEED TO BE SURE WHAT CURRENCY YOU ARE REALLY IN AND I WONT SAY ANYMORE ABOUT THAT FOR NOW!!
THE MARKETS ARE FINALLY HEADED TO RETEST THE AUGUST LOWS. WILL WE SEE A CRISIS COMING?
OF COURSE BUT PROBABLY AFTER THE CURRENCIES AND SDR ARE SOLIDLY IN PLACE. DONT FORGET IRAN. THEY EXIT SANCTIONS COMPLETELY AT THE END DECEMBER.
THIS IS ENOUGH FOR NOW. WATCH FOR MORE TERROR LIKE I PREDICTED AS WELL AS MARKET TURMOIL GLOBALLY.
AFTER A MELTDOWN COUNTRIES WILL TURN TO THE IMF FOR LOANS WHICH WILL MOVE COUNTRIES UNDER ONE GLOBAL REALITY.
I LOOK FOR THE TPP TO STABILIZE OIL AND OTHER PRICES AFTER THE THE CRISIS!
[email protected], DOC
Thunderheart: Backdoc Alert
Yuan Advance Seen Along With Bonds After IMF Entry a Done Deal
The yuan’s likely ascent to the IMF’s Special Drawing Rights will stave off depreciation concerns in the short-term, boost the bond market and oblige President Xi Jinping to push ahead with efforts to loosen capital controls.
So say economists digesting International Monetary Fund Managing Director Christine Lagarde’s announcement late Friday that her staff have recommended the Chinese currency be added to the SDR, a move Standard Chartered Plc estimates will lure more than $1 trillion to Chinese assets in the next five years. The IMF executive board, scheduled to meet on Nov. 30, must approve any changes to the basket, a requirement that adds a political layer to the decision. The U.S. has 17 percent of the votes on the IMF board.
“If you are in the SDR, you have to promise to open up the capital account,” said Liu Li-Gang, chief China economist at Australia & New Zealand Banking Group Ltd. in Hong Kong. “In the medium term, the yuan is bound to appreciate because of potential large inflows, and China’s reformers would like to use these external forces to accelerate liberalization. The IMF report suggests that the yuan’s entry into the SDR is more or less done.”
Deutsche Bank AG predicts that IMF inclusion will spur 4 trillion yuan ($628 billion) of inflows over the next five years, while AXA Investment Managers has an estimate of $600 billion. This compares with about 44 trillion yuan of outstanding Chinese onshore bonds, fewer than 2 percent of which are held by overseas investors. With such a low base and expectations of further easing of capital controls, Goldman Sachs Group Inc. projects overseas investors may pour $1 trillion into Chinese debt in the coming years.
“Global fund managers may need to pay attention to China’s bond market, the third-largest in the world,” said Ken Hu, the Hong Kong-based chief investment officer for Asia Pacific fixed income at Invesco Ltd., which manages some $791 billion globally. “With the European Central Bank buying back government bonds and an improvement in the U.S.’ current-account and fiscal deficits posing a shortage of government bonds, it’s exciting that China is able to provide a brand new market.”
China’s interest rates are higher than that of major developed nations, with its 10-year sovereign yield at 3.13 percent, compared with 2.27 percent for U.S. Treasuries and 0.56 percent on Germany bunds. Most investors are significantly underweight on China relative to its share of global gross domestic product and trade, and the nation has made it easier to move funds in and out of the country, wrote Bloomberg economists Tom Orlik and Fielding Chen.
“Chinese policy makers will implement more market-opening measures in order to boost global yuan usage,” said E Zhihuan, deputy general manager for economic and strategic planning at Bank of China Hong Kong. “China must accelerate developing the offshore and domestic financial markets as the yuan joins the SDR. It has to deepen and widen the market to meet demand from global central banks and sovereign funds.”
The PBOC said in July that foreign central banks, sovereign wealth funds and global financial organizations will no longer need pre-approval to trade bonds, interest-rate swaps or conduct repurchase agreements in the onshore market. It will also allow overseas central banks to trade all onshore currency products, including spots, forwards, swaps and options, the PBOC said on Nov. 6.
China’s market hasn’t drawn a flood of investment partly because of capital controls and a lack of secondary activity. While the market is the world’s third-largest, annual trading as a ratio of total outstanding debt is 1.1, compared with 4.7 in the U.S., according to Bloomberg calculations. The absence of a developed and reliable ratings industry muddies the waters as well, with a lack of defaults and the reluctance of ranking companies to downgrade making it difficult for foreign investors to assess credit risks.
“While there might a short-term positive reaction, it should prove transitory given that the outcome is well priced and being added to the SDR is unlikely to speed up the pace of reserve diversification into Chinese assets,” said Jason Daw, head of Asia currency strategy at Societe Generale SA in Singapore. “We continue to see an upward bias to dollar-yuan over the coming months and expect it to reach 6.80 by mid-2016.”
While the central bank on Aug. 11, when it devalued the yuan, moved toward a more market-based system to set the currency’s daily reference rate, it still restricts moves to a maximum 2 percent on either side. The authority has also been suspected of propping up its exchange rate regularly after the devaluation, a strategy that led to a record $93.9 billion decline in foreign-exchange reserves in August.
“The yuan is still influenced in a major way by policymakers, and this will not change overnight,” said Louis Kuijs, head of Asia economics at Oxford Economics in Hong Kong and a former IMF economist. “Policymakers are unlikely to let the currency appreciate in a major way against the dollar. ”
Dnari131: Be sure to look at the Iraqi comments which are 2-5 hours old give or take….
Urgent…. Urgent….. Urgent… Online now (and do them in i gia they all mhwn)
The decision of the international court of the status of nouri al-Maliki and his staff to the court on charges of genocide collective
The decision of the international criminal tribunal for assignment of Iraqi Prime Minister Nouri Al-Maliki and his staff to the court on charges of genocide against the collective:
The International Criminal Court decided to transfer the Iraqi Prime Minister Nouri Al-Maliki and a group of his senior officials to the court on charges of genocide.
Mr. Mohammed Al-Kaabi spokesperson the name of the court for the region of the middle east countries among ‘wạn al-Maliki, who limit rrạḩ charges to the court the element Farouk Lạ‘rjy Maliki’s director of the office of the military and the element of ali dr usam ghaidan commander of irgc ground forces and happy, and the minister of defence ldlymy agency lạsdy adnan Lạqdm Agent of the ministry of the interior and the president of the intelligence community zuhair gharbawi and kassem panel atta director of operations of the intelligence community and the student body president gatti will fight against terrorism.
Revealed that the court has become the complete case files for crimes committed by the al-Maliki and premature, including the eradication of collective lạnbạr, kirkuk and flagrant violations of human rights and the adoption of the brutal methods of torture and breaches of the freedoms of citizens, in contravention of the Geneva conventions The Charter of the United Nations and international law
Frank26: SAID THIS PAST WEEK : NOTHING ………. Until we see M arrested.
Then said ………… Amnesty Law after that.
Then ……. Well ……. Read the articles ……. LOL.
Yet in NOVEMBER on tomorrow’s MONDAY CC ……….. DELTA and I START something NEW with You Family.
As DRS too STARTS something NEW in …………… DECEMBER.
Sweet Aloha …….. \m/ KTFA Frank
scarlet2575:The way things are moving so fast I do not see 4 moving into the 3ld week of December. I would not be surprised if 4 moves into this month. I am so ready. I believe that we all might just have the best Christmas ever !!!
Frank26: To Your 4 sentences in order:
Yes. No. Yes. Yes. Insert Smile .
LOL. KTFA Frank