INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

**Carol** Tue Jan 26, 2016 10:40 am

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Post n°51

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Tue Jan 26, 2016 10:40 am

China's state media warns Soros on betting against yuan, HK dollar
http://www.reuters.com/article/us-china-economy-speculation-idUSKCN0V40CR

China's state media has warned billionaire investor George Soros against betting on falls in the value of the Chinese yuan CNY=CFXS and Hong Kong dollar HKD=, amid widespread worries over the health of world's second-largest economy.

China's fourth-quarter economic growth slowed to the weakest since the global financial crisis, increasing pressure on a government struggling to regain investors' confidence after perceived policy missteps jolted global markets.

"Soros' challenge against the renminbi (yuan) and Hong Kong dollar is unlikely to succeed, there is no doubt about that," the People's Daily overseas edition said in a front-page opinion piece on Tuesday.

China's economic fundamentals remain sound, despite slower growth, volatility in its stock market and the yuan's depreciation against the U.S. dollar, said the opinion piece, written by a researcher at the commerce ministry.

Soros told Bloomberg TV on Thursday he sees a hard landing for China's economy contributing to global deflation.

In his comments to Bloomberg, Soros said he had been betting against the S&P 500, commodity-producing countries and Asian currencies, while buying U.S. government bonds. He did not specifically mention the yuan and Hong Kong dollar.

China's economic growth slowed to 6.8 percent in the fourth quarter, bringing the full-year growth to 6.9 percent in 2015 - the poorest showing in 25 years.

The Xinhua news agency also warned against speculation on China's stocks and currency, saying that smart, far-sighted investors should seize the opportunities from China's economic restructuring.

"Some people believe that the Chinese capital market is experiencing a major crisis, of which they try to take advantage with speculative actions and even vicious shorting activities," Xinhua said in a commentary published on Saturday.

Read more at link above.

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Tue Jan 26, 2016 10:52 am

Carol

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Post n°52

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Tue Jan 26, 2016 10:52 am

From mudra:

Bank Runs have begun in Italy!

MILAN — A "run" has begun on Italian Banks, with Depositors taking out money in a PANIC, fearing they will lose everything if they leave their money deposited.

Banca Monte dei Paschi di Siena SpA’s shares shed one fifth of their value after plunging for a third consecutive day Wednesday, as the bank scrambled to reassure investors its finances are solid.

The bank said that it had suffered outflow of deposits as a result of market jitters and that its accounts had improved in the last quarter.

The bank’s Chief Executive Fabrizio Viola said in a statement that deposit outflows were limited and lower than those that had taken place in 2013.

In February 2013, it emerged the bank was entangled in a legal scandal involving loss-making complex financial transactions, something that spooked investors and caused a deposit-outflow of “some billions,” the bank said in April that year.

But Mr. Viola’s words didn’t stop the massive selloff.

Trading in the bank’s shares was suspended for most of Wednesday’s session and shares ended up shedding 22.2%. Since Monday, the bank’s shares have lost 46% of their value, plunging to €0.51 ($0.56) per share. Since the beginning of the year, the bank’s share price has declined 58%.

The bank is now capitalized at roughly €1.6 billion, despite having tapped investors for €8 billion in the last two years to pay back a €4 billion government loan and shore up its capital position, amid mounting bad loans and a chronic lack of profitability.

“It’s pure panic, we are going beyond the prospects of the bank’s low profitability,” said Vincenzo Longo, a strategist at IG Markets in Milan.

The bank will post fourth-quarter earnings on Feb. 5.

In 2012, the bank started to implement a drastic restructuring plan, aimed at bringing it into the black and to pay back a €4 billion government loan. For the first half of last year, the bank posted a net profit of €194 million, after having accumulated losses of over €10 billion in earnings periods since the second quarter of 2012.

But it posted a €109 million loss for the third quarter, mainly due to a one-off hit caused by the unwinding in September of a complex structured-product transaction.

It also tapped investors for €8 billion in the last two years to pay back a €4 billion government loan and shore up its capital position, amid mounting bad loans and a chronic lack of profitability.

Meanwhile, UniCredit SpA’s Chief Executive Federico Ghizzoni ruled out any intervention to support Monte dei Paschi, adding that he had received no requests from the Italian government to do so.

Sources in the financial markets throughout Europe have confirmed to SuperStation95 that "These bank runs will spread" to other countries, with one analyst saying "This is the beginning of the end for all of Europe."

In fact, it is likely to spread to Germany next. Just this week, Germany's largest bank, Deutsch Bank, revealed they will post a loss of 6.7 BILLION Euros for last year; the worst loss in that bank's entire history! Investors were stunned by this news and there is now open and public worry that Deutsch Bank may not be solvent.

Elsewhere in Europe, banks admitted last week they are sitting on . . . . . . ONE TRILLION IN BAD LOANS . . . . . and may have to be "re-capitalized." Therein lies the problem: Under the new banking laws, governments will no longer "bail-out" banks. Instead, the banks must be "bailed-IN" by taking money from DEPOSITORS and replacing that with newly-issued stock in each bank! Average citizens would lose a major portion of all accounts in each bank (Checking, Savings, Certificates of Deposit, IRA/401-K Retirement plans, etc.) and would be given shares in the bank as compensation. The trouble is, depositors cannot pay their bills or eat with stocks.

read on: Arrow https://www.superstation95.com/index.php/world/796

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Tue Jan 26, 2016 1:58 pm

Carol

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Post n°53

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Tue Jan 26, 2016 1:58 pm

China Set To Launch Own Online Virtual Currency
http://www.iexpats.com/china-set-to-launch-own-online-virtual-currency/?

China has decided to kick online currency Bitcoin while it’s down by proposing the launch of an official virtual money system.

The people’s Bank of China banned Bitcoin from China in 2013, citing concerns about keeping track of users and money laundering.

Now, the bank has announced that since then a specialist team has developed an online currency strategy.

When the banning notice was issued stopping Chinese domestic banks from trading in Bitcoin, China was the virtual currency’s largest market.

The move does not bode well for Bitcoin, as the Chinese are likely to keep the door closed on the currency in favour of their own system.

Controlling money supply

The People’s Bank said: “Our research team has developed a framework for a new virtual currency and is now pushing on to set up objectives for a launch and overcome the technical barriers.”

The bank is collaborating with foreign banks to work out how a virtual currency can sit alongside card and cash based systems.

Officials also explained that switching to an online currency helped the government to control money supply and cut the costs of managing paper money.

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Tue Jan 26, 2016 2:03 pm

Carol

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Post n°54

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Tue Jan 26, 2016 2:03 pm

The Chinese Elders, the European Sovereigns and the Global Reset
http://goldenageofgaia.com/2016/01/26/chinese-elders-european-sovereigns-global-reset/
January 26, 2016 by Steve Beckow

Reset 223
Here’s another unattributed gloss on the Reval, which requires discernment but may provide valuable information on who’s behind the Reval, how it’s being paid for, etc.

It addressed my concern over the thought that the Chinese Government was in control of important and sensitive fiscal agencies. This report says it’s the Chinese Elders who control them.

Some of the information here conflicts with that of channeled sources, but I have no idea who is actually correct. For instance, the Company of Heaven has said that the Federal Reserve will not be closed but reformed and this report says it’ll be closed. The difference may be attributable to changes made in the plans at different stages of the process.

Again we don’t hold with the article’s assessment of President Obama.

If this paper is credible, it contains more information on the Chinese Elders and European Sovereigns than we’ve seen in some time. Thanks to Sitara and Dick.

GLOBAL RESET

Ancient Chinese Families (Elders), along with ancient European Sovereigns, have long pooled and still control the vast majority of physical assets on Planet Earth, and have for many centuries.

This epic wealth exists in a variety of holding areas, in a variety of trusts, and [is] dispersed strategically throughout the world, with little to nothing known about them for security reasons. Cumulatively they are generally understood as the “Global Collateral Accounts.”

These Global Collateral Accounts have devout keepers who watch over them and protect them as humanity’s assets, not their own. These “keepers” exist all over the world, and go unknown to the general public, again for obvious security reasons.

These Global Collateral Accounts underwrite every sovereign bond, currency, debt instrument in our modern banking system–without exception regardless of the amount of debt instruments produced, as they can cover any man made debt.

These Global Collateral Accounts have an advanced control system which has been under constant attack since the late 1700’s.

The current Western Banking Elite (Eastern Europe, USA, Japan, Saudi Arabia, Ukraine, Turkey, Israel, etc. — aka “Cabal Governments”) have attempted to both steal and replace the Global Collateral Accounts system through means of war, treachery, murder and corruption. In fact, a 400+ year coordinated attempt to usurp the control mechanism of the Global Collateral Accounts has been endured.

What we are witnessing now is the public rejection of that failed but continuous assault, with the vast majority of sovereign nations now fully united in unwinding their fiat-based debt banking system and replacing it with a permanent gold-backed system of sustainable value.

These truly United Nations have accepted through signature a single monetary authority (located in China) to be under the control of both the Chinese Elders and European Sovereign Families.

The Western Fiat Banking System is collapsing under the weight of its own lie, and quietly being dismantled via a painful process of margin calls. This includes the Bank of International Settlements, World Bank, International Monetary Fund, Central Banking System, Federal Reserve Bank, Bank of England, Metals Trading Markets, USA Inc, Cabal Governments, etc..

Be advised that the Asian Investment and Infrastructure Bank (AIIB) is a Chinese Elder creation, with exclusive oversight privileges separate from any government, including the China and Russia.

However, the BRICS alliance was also created to publicly acknowledge the collection of sovereign nation states committed to following the financial principals of the Chinese Elders and European Sovereigns, who in return for this pledge, get to leverage generations of social benefit loans/funds against the hard-asset base of the Global Collateral Accounts.

Any sovereign nation not abiding by these Chinese Elder/European Sovereign financial principles simply is not allowed to join the AIIB, and is thus excluded from accessing Global Collateral Asset wealth.

No sovereign nation may trade or commence in banking activities with any nation not a good standing member of the AIIB. Nations are either in with the Chinese Elders or they’re out. There are no more in-between games being played after what’s gone on these last 70 years.

This global financial structure was originally introduced by the Chinese Elders and agreed to during the 1944 Bretton Woods Conference in New Hampshire, post WW2. But that system has deteriorated into what the current Western Banking System has become–and the world is now getting a tow out of the usury ditch.

All sovereign nations may join at any time if they agree to abide by Chinese Elder/European Sovereign financial principles. None are excluded.

Based on the above facts, no sovereign nation in good standing with the AIIB/BRICS alliance is recognizing the USA, Inc. (figure-headed by corporate spokesman Barack Hussein Obama) as of 1/1/16.

[The Golden Age of Gaia does not regard Barack Obama as “corporate spokesman” for the United States, Inc.]

Also, no sovereign nation associated with the AIIB/BRICS is allowed to recognize the USA, Inc.’s fiat currency (USD) as being valid starting also on 1/1/16.

No sovereign nation associated with the AIIB/BRICS is allowed to recognize Pentagon Dark Hat-controlled military operations as being representative of the free will of the Republic of the United States citizenry as of 1/1/16.

Japan has secretly joined AIIB, and this fact is set to be announced at the next AIIB conference, January 16-18 in Beijing.

All 2008, 2015 and 2016 turbulent market crashes were attempts by existing Western Banking System families to retain the illusion of financial dominance, which they technically never had. That effort has failed.

All 2001, 2003, 2005, 2009, 2012, 2014, 2015 military conflicts were also attempts by non-Global Collateral Account families to retain the illusion of military dominance, which no government can successfully achieve without the support of the Chinese Elders/European Sovereigns/Global Collateral Accounts by design. Those efforts have failed as well.

Thus all conflicts, be them financial or military, are now being publicly resolved by the Chinese Elders/European Sovereigns as to reset humanity and all cultures, back onto a moral fundamental platform backed in tangible assets, still underwritten by the Global Collateral Accounts.

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Tue Jan 26, 2016 2:05 pm

Carol

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Post n°55

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Tue Jan 26, 2016 2:05 pm

First Came Fed Rate Hike, Then the Fall: Decision Day Guide
http://www.bloomberg.com/news/articles/2016-01-26/first-came-fed-rate-hike-then-the-fall-decision-day-guide

Federal Reserve Chair Janet Yellen and her colleagues have an unenviable task this week. They need to recognize that the economic landscape has changed without taking another interest-rate hike completely off the table at their March meeting.

While the U.S. central bank is widely expected to leave the target for the federal funds rate unchanged at 0.25 percent to 0.5 percent after a two-day gathering of the Federal Open Market Committee in Washington, here’s what else to look for when the FOMC releases its statement at 2 p.m. Wednesday:

Since the Fed announced on Dec. 16 that it was raising the benchmark interest rate for the first time since 2006, the S&P 500 stock index has fallen 9.5 percent, with oil prices down 16 percent over the same period. Morgan Stanley economists estimate that financial conditions have tightened by the equivalent of four additional hikes.

Fed officials “may try to acknowledge the market behavior and the possible negative impacts that could have on the economy, but at the same time still come across as optimistic enough on growth” to support their December projections for multiple rate increases this year, said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York.

Read more at link above.

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Tue Jan 26, 2016 2:09 pm

Carol

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Post n°56

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Tue Jan 26, 2016 2:09 pm

Oil price slump sends U.S. distress ratio to heights not seen since Great Recession
http://www.marketwatch.com/story/oil-price-slump-sends-us-distress-ratio-to-heights-not-seen-since-great-recession-2016-01-26?link=MW_home_latest_news

High-yield bonds are showing more and more signs of stress

The oil and gas sector’s prolonged price slump has pushed the U.S. distress ratio to heights not seen since the peak of the last recession, Standard & Poor’s said Tuesday.

The U.S. distress ratio, a measurement of the amount of risk that has been priced into the high-yield — or “junk bond” — market, started the year at 29.6%, a level last seen in July 2009, according to S&P. The ratio moved from 14.6% that year to a peak of 70%.

Don’t miss: 10 fascinating facts about this troubled stock market

Credit is determined to be distressed when it’s trading at an option-adjusted spread of more than 1,000 points over a comparable Treasury. At that point, the market is pricing in a high level of risk — and demanding extra compensation for it. A rising ratio suggests issuers may need capital and is usually a precursor to defaults, particularly when accompanied by severe market disruption.

The oil and gas sector accounted for 156 of the 524 issues in the distress ratio, said Diane Vazza, head of global fixed income research at S&P.

“Drops in oil prices affected oil and gas companies’ profitability, where spreads widened considerably, and that spread expansion had a spillover effect to the broader speculative-grade spectrum,” she said.

The oil and gas sector accounted for 31% of total distressed debt and had the second highest sector distress ratio, at 72.6%, she said. The highest sector distress ratio went to metals, mining and steel at 81.3%.

Oil is one of a range of commodities that have plunged in value in the past year, battered by oversupply and lower demand from China, a major consumer. Crude futures were trading above $31 a barrel Tuesday, bouncing back from more than 12-year lows hit last week.

See: Kuwait hints OPEC ready to ‘cooperate’ to stabilize oil market: reports

Separately, Moody’s Investors Service said the number of companies rated at B3 and lower with negative outlooks has climbed to a six-year high. The B3 rating is a full six notches into junk territory, and a negative outlook means the issuer could be downgraded in the medium term. Credit in the C category is considered to be at high risk of default.

Don’t miss: Moody’s may downgrade 120 oil and gas companies, 55 mining companies

Moody’s said 248 of the companies in its coverage are now trading in the B3 negative and lower category, up 26% from a year ago and up 11% from the fourth quarter.

Read more at link above.

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Tue Jan 26, 2016 2:16 pm

Carol

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Post n°57

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Tue Jan 26, 2016 2:16 pm

https://www.youtube.com/watch?v=8WakvogLqDg
China And Russia Are Preparing For A Bankrupt US Financial System - Episode 876a

The tech sectors is now getting hit with layoffs. The Dallas Fed survey is at a 6 year low and crashing. Manufacturing in a decline which is signalling a major depression coming soon. The East know the West is now bankrupt and they are preparing and waiting patiently for it to be complete. Norway’s biggest bank is now pushing a cashless society. The house of Saud will most likely contribute to the collapse of the global economy.

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Tue Jan 26, 2016 3:58 pm

Carol

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Post n°58

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Tue Jan 26, 2016 3:58 pm

Iceland has jailed 26 bankers.
http://usuncut.com/world/iceland-sentences-26-bankers-to-a-combined-74-years-in-prison/

Unlike the Department of Justice, Iceland is focusing on prosecuting the CEOs rather than low-level traders.

In a move that would make many capitalists’ head explode if it ever happened here, Iceland just sentenced their 26th banker to prison for their part in the 2008 financial collapse.

In two separate Icelandic Supreme Court and Reykjavik District Court rulings, five top bankers from Landsbankinn and Kaupping — the two largest banks in the country — were found guilty of market manipulation, embezzlement, and breach of fiduciary duties. Most of those convicted have been sentenced to prison for two to five years. The maximum penalty for financial crimes in Iceland is six years, although their Supreme Court is currently hearing arguments to consider expanding sentences beyond the six year maximum.

After the crash in 2008, while congress was giving American banks a $700 billion TARP bailout courtesy of taxpayers, Iceland decided to go in a different direction and enabled their government with financial supervisory authority to take control of the banks as the chaos resulting from the crash unraveled.

Back in 2001, Iceland deregulated their financial sector, following in the path of former President Bill Clinton. In less than a decade, Iceland was bogged down in so much foreign debt they couldn’t refinance it before the system crashed.

Almost eight years later, the government of Iceland is still prosecuting and jailing those responsible for the market manipulation that crippled their economy. Even now, Iceland is still paying back loans to the IMF and other countries which were needed just to keep the country operating.

When Iceland’s President, Olafur Ragnar Grimmson was asked how the country managed to recover from the global financial disaster, he famously replied,

“We were wise enough not to follow the traditional prevailing orthodoxies of the Western financial world in the last 30 years. We introduced currency controls, we let the banks fail, we provided support for the poor, and we didn’t introduce austerity measures like you’re seeing in Europe.”

Meanwhile, in America, not one single banking executive has been charged with a crime related to the 2008 crash and U.S. banks are raking in more than $160 billion in annual profits with little to no regulation in place to avoid another financial catastrophe.

~~~~~~~~
Iceland ... has just sentenced five senior bankers and one prominent investor to prison for crimes relating to the economic meltdown in 2008.

The nation that gambled so heavily on the markets and lost so disastrously in the consequent crash has [now] sent 26 financiers to jail for combined sentences of 74 years. The authorities pursued bank bosses, chief executives, civil servants and corporate raiders for crimes ranging from insider trading to fraud, money laundering, misleading markets, breach of duties and lying to the authorities.

Meanwhile the economy that collapsed so spectacularly has rebounded after letting banks go bust, imposing capital controls and protecting its own citizens over all other losers.

This determination to hold people to account for actions that caused intense financial misery contrasts strongly with Britain, most of the rest of Europe and the United States. Britain never bothered holding a proper inquiry into the financial meltdown that still heavily impacts on public finances.

In New York, a couple of minor British bankers have just been convicted of manipulating inter-bank lending rates. In London, the massive HSBC is playing political games ... to stave off regulatory pressures. This is the bank, remember, fined £1.2bn after a US investigation found it was laundering money for gangsters and rogue nations, then discovered to be helping wealthy clients evade tax in dozens of countries. Its former boss became a government minister and then chairman of the British Museum.

So this one small nation that jailed its big bankers and let banks go bust is doing very well now. Why are so exceedingly few bankers in other countries being jailed for crimes involving trillions of dollars and bankrupting millions of citizens?

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Wed Jan 27, 2016 10:26 am

Carol

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Post n°59

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Wed Jan 27, 2016 10:26 am

The world’s favorite new tax haven is the United States
http://www.msn.com/en-us/money/markets/the-world%e2%80%99s-favorite-new-tax-haven-is-the-united-states/ar-BBoKw7Q?li=BBnbfcL

Rothschild’s Trust North America LLC on 12th floor of Porsche’s former North American Head quarters building. The US attorney’s office is on the 6th floor in Reno Nevada. Visitors must go to 10 floor, the offices of McDonald Carano Wilson LLP, a politically connected law firm. Tax lobbyist Robert Armstrong, viewed as the state’s top trusts and estates attorney is the manager of Rothschild Trust North America. The trust caters to international families. Do not offer legal structures clients unless their tax affairs are in order and independent tax lawyers must actively confirm this. Managing director of the Nevada trust company is Scott Cripps, Calif tax attorney.

~~~~~~~~~~~~~~~~~~

Cayman was slammed in December, closing things that people were withdrawing,” said Alice Rokahr, the president of Trident in South Dakota, one of several states promoting low taxes and confidentiality in their trust laws. “I was surprised at how many were coming across that were formerly Swiss bank accounts, but they want out of Switzerland.”

http://www.bloomberg.com/news/articles/2016-01-27/the-world-s-favorite-new-tax-haven-is-the-united-states

Last edited by Carol on Wed Jan 27, 2016 10:38 am; edited 1 time in total

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Wed Jan 27, 2016 10:29 am

Carol

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Post n°60

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Wed Jan 27, 2016 10:29 am

Iranian President Bids for US Investment - ABC News
http://abcnews.go.com/International/wireStory/iranian-president-free-speech-include-insulting-faith-36542061

Snip

After years of tensions over Iran's nuclear ambitions, Europe is ushering in a new era of relations with the once-pariah state, welcoming Iranian President Hassan Rouhani to Italy and France with high expectations that he can set in motion lucrative business deals and regional peacemaking.

But there's also a note of caution, notably about Iran's human rights record and geopolitical goals.

The end of economic sanctions after six nations struck a deal to curb Iran's nuclear activities means the country of 80 million will soon be flush with funds, allowing Tehran to spend and, some Europeans hope, end its isolation from the West.

The visits to Italy and France are also part of efforts by Iran to reach out to its old partners to balance its diplomatic reach with eastern partners like China and Russia.

Iran signed billions of euros in deals during Rouhani's first stop in Italy — which also prompted controversy when officials covered up naked statues in a Rome museum in an apparent effort to avoid offending the Iranian leader. Italy's culture minister called the move "incomprehensible."

At a press conference Wednesday in Rome, Rouhani invited American businessmen to join their European counterparts in investing in Iran and taking advantage of the new era of "win-win" collaboration after years of mutual losses.

"It's possible, but the key is in Washington, not in Tehran," he said. "At the same time today, if American investors and the heads of the American economy want to come to Iran and invest in my country, there are no problems from our point of view."

Rouhani, a relative moderate elected in 2013, flew to France later Wednesday and was meeting with Economy Minister Emmanuel Macron and a group of French business leaders.

He's expected to oversee the signing Thursday of a bevy of contracts, including a possible deal with Airbus to renew Iran's fleet of passenger jets as Tehran looks to push tourism. Iran's aviation industry has suffered due to sanctions over the past three decades. Out of Iran's 250 commercial planes, only about 150 are flying.

Oil giant Total, engineering group Alstom and carmakers PSA Peugeot-Citroen and Renault-Nissan, with a past presence in Iran, are among companies that could clinch deals, too.

In Italy, the government and private companies inked more than a dozen accords with Iran covering the metals industry, oil services, rail transport and shipbuilding.

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Wed Jan 27, 2016 10:33 am

Carol

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Post n°61

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Wed Jan 27, 2016 10:33 am

In China Everyone Can Buy Gold At The SG

Buy Gold bars and coins at SDBullion
The Shanghai Gold Exchange has launched a smartphone app for customers to trade gold.

http://www.silverdoctors.com/in-china-everyone-can-buy-gold-at-the-sge/

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Wed Jan 27, 2016 10:49 am

Carol

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Post n°62

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Wed Jan 27, 2016 10:49 am

"This unfolding strategy was just announced in the official Communique between China and Saudi Arabia.

If Saudi Arabia ended the peg to the dollar and began selling crude priced in renminbi on the Shanghai International Energy Exchange (INE) then China would feel comfortable ending their own peg to the dollar and allowing the renminbi to become more market oriented, as renminbi demand would accelerate.

This would also mean the USD would begin to depreciate at the same time as the renminbi begins to appreciate. This is likely the missing piece for those who felt that infrastructure development loans denominated in RMB through the AIIB and NDB would not be enough to appreciate the yuan against the dollar.

To bring home the point of a Petro-Renminbi type arrangement between China and Saudi Arabia, the official Communique clearly states “…the Chinese side confirms its support for the Saudi side’s efforts to preserve the security and stability of its country…”, which is basically usurping the American roll of protector to the Kingdom.

In the post The Coming Islamic Revolution in Saudi Arabia, I wrote the following:

The agreement between the United States and Iran, and the lifting of sanctions, which could come as early as this Monday, are tell-tale signs that the strategic balance in the region is shifting. The only reason the relationship of convenience existed between the US and Saudi Arabia was because of the large petroleum reserves.

We also reviewed how Saudi Arabia acted as a buffer for Israel and that the collapse of the House of Saud would create a vacuum which would threaten Israel. Some new pieces are starting to fit into place.

With this latest agreement between China and Saudi Arabia, and some of the ancillary events which are beginning to take place, such as agreements on production cuts, we can assume that Saudi Arabia has been able to strike a deal which will ensure its survival. That fact that the Israeli Defense Minister is openly undermining Turkey’s position in funding ISIS would also strongly suggest that the Kingdom has the support of both China and Israel to survive for another period of time.

Iran and Russia will begrudgingly go along with the wishes of China as the end goal of USD reserve diversification and a reduction of US reserve currency influence will serve a larger purpose. Watch for both Saudi Arabia and China to move away from their USD pegs, which will correspond with the start of China’s crude index." – JC

Adam
JANUARY 26, 2016 AT 10:56 PM
I suspect that we are either going to a petroRMB or a petroEuro, and I have seen good arguments for both. How certain are you that it won’t be a petroEuro, and why do you think that?

REPLY
JC Collins
JANUARY 27, 2016 AT 1:11 AM
There could be a place for a petroeuro. The rebalancing of the monetary system will see a diversification of reserves from the dominate USD now to more euro and renminbi. So there could be both a petroeuro and petrorenminbi. But these will exist alongside the petrodollar. Remember, the dollar is not going away.

Adam
JANUARY 26, 2016 AT 10:57 PM
Also, it seems like it will be an earth shaking event, not a gradual event, when the world learns that the Saudis will start selling their oil in a different currency. How/when is this communicated? And how does this fit with your gradual USD depreciation thesis?

REPLY
JC Collins
JANUARY 27, 2016 AT 1:13 AM
The announcement will be quick, but the depreciation will happen gradually, with spurts spattered throughout. Saudi could also use both the dollar and renminbi for awhile. Call it geopolitical hedging. (I like that – geopolitical hedging.)

neal poole
JANUARY 27, 2016 AT 1:45 AM
Just re-read this post. Wow!

REPLY
JC Collins
JANUARY 27, 2016 AT 2:03 AM
I find that communique to have the wow factor. It just slipped right out there into the world with hardly a notice.

neal poole
JANUARY 27, 2016 AT 3:40 AM
Could this be in part what was meant when the US urged China to take a greater role in governing the global economy?

REPLY
JC Collins
JANUARY 27, 2016 AT 3:54 AM
I would suspect so. The US needs the dollar to depreciate. This will facilitate that process.

SNIP

"Not to mention that Chinese President Xi Jinping and King Salman of Saudi Arabia also met and released a communique titled “Comprehensive Strategic Relationship”, along with another “senior Chinese official” affirming that it is the intention of the People’s Bank of China to “decouple” the renminbi from the US dollar."

"Over the last few days a list of interesting things has taken place on the geopolitical front.

First, Saudi Arabia came out and stated its willingness to work with Iraq and Russia on making cuts to crude production.

Second, Israel is throwing Turkey under the bus and openly stating that ISIS has benefited from oil sales to Istanbul.

Third and fourth are the above mentioned Communique, and statement by a senior Chinese official in Davos, regarding the exchange rate arrangement with the US dollar.

The first real evidence which supports the creation of the so-called “Petro-Yuan” or “Petro-Renminbi” was released last week in the form of a Communique based on the meeting between China and Saudi Arabia."

JC, how would you interpret the announcement of support for Lagardes second term? Misdirection, did something shift in geopolitics or has she always be the woman to steers the world to and through the great debt restructuring?

http://mobile.reuters.com/article/idUSKCN0V20T6?feedType=RSS&feedName=businessNews

REPLY
JC Collins
JANUARY 27, 2016 AT 10:36 AM
Our own personal and private goals are still relevant. Lagarde obviously has a support base which she has used to keep her position. Good for her. Since no other candidates were put forward, it’s clear everyone is happy with the direction things are going, including China. It would appear many things have been put to rest in Davos.

To bring home the point of a Petro-Renminbi type arrangement between China and Saudi Arabia, the official Communique clearly states “…the Chinese side confirms its support for the Saudi side’s efforts to preserve the security and stability of its country…”, which is basically usurping the American roll of protector to the Kingdom.

Last edited by Carol on Wed Jan 27, 2016 12:11 pm; edited 1 time in total

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With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Wed Jan 27, 2016 11:10 am

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Post n°63

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Wed Jan 27, 2016 11:10 am

China's trade and infrastructure deals don't look like desperation
http://www.cnbc.com/2016/01/24/chinas-trade-and-infrastructure-deals-dont-look-like-desperation.html

Think of a small European country where China currently manages a $3.5 billion portfolio of direct investment projects.

And while the hapless Europeans were stirring up more trouble for Greece, last week China completed a $368.5 million deal for a 67 percent stake in the Piraeus Port Authority, with another $350 million slated for investments to create China's largest maritime hub in the Mediterranean.

Piraeus will be the seafaring endpoint of China's 21st Century Maritime Silk Road from East Asia to Africa, Middle East and Europe.

The sea route will connect with an overland trading network called the Silk Road Economic Belt from China and Central Asia to Europe's major centers of commerce and finance.

On the North African shores of the Mediterranean, China is building infrastructure facilities in the energy-rich Algeria and a strategically positioned Egypt, which could become one of the key logistics, commercial and industrial centers on the Belt and Road project.

Read more at link

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With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Wed Jan 27, 2016 1:59 pm

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Post n°64

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Wed Jan 27, 2016 1:59 pm

A world divided: Elites descend on Swiss Alps amid rising inequality
http://www.reuters.com/article/us-davos-meeting-divisions-idUSKCN0UW007

Tue Jan 19, 2016 5:24am EST

(snip)

The Oxfam report suggests that global inequality has reached levels not seen in over a century.

Last year, the organisation has calculated, 62 individuals had the same wealth as 3.5 billion people, or the bottom half of humanity. The wealth of those 62 people has risen 44 percent, or more than half a trillion dollars, over the past five years, while the wealth of the bottom half has fallen by over a trillion.

"Far from trickling down, income and wealth are instead being sucked upwards at an alarming rate," the report says.

It points to a "global spider's web" of tax havens that ensures wealth stays out of reach of ordinary citizens and governments, citing a recent estimate that $7.6 trillion of individual wealth - more than the combined economies of Germany and the UK - is currently held offshore.

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**Carol** Wed Jan 27, 2016 2:38 pm

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Post n°65

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Wed Jan 27, 2016 2:38 pm

Forget Oil Stocks … Banks are Getting Battered Now
http://www.moneyandmarkets.com/forget-oil-stocks-banks-getting-battered-now-75651#.VqkqCDaev_1
Mike Larson | Tuesday, January 26, 2016 at 4:19 pm

Market Roundup
Dow 16,167.23 (+282.01)

S&P 1,903.63 (+26.55)

NASDAQ 4,567.67 (+49.18)
10-YR Yield
1.99% (-0.03)

Gold $1,121.90 (+$16.60)

Oil $31.26 (+$0.92)

You’ve probably heard the refrain on CNBC, or read it in the mainstream business press: It’s all about oil.

I’m here to tell you that’s a bunch of bull. The carnage in the credit markets started spreading well beyond the oil and gas sector last year, and now the same thing is happening in equities. One sector I follow the closest is really getting battered now — banks.

Just look at this chart of the SPDR S&P Regional Banking ETF (KRE). This $1.7 billion benchmark fund owns 91 regional and super-regional banks, including PNC Financial Services Group (PNC), KeyCorp (KEY), BB&T (BBT) and SunTrust Banks (STI) …

The ailing financial sector.
You can see that KRE knifed through an uptrend line that dated back to 2011. Then it took out horizontal support this week. That means every penny of gains bank investors racked up since the summer of 2013 has now gone out the window.

What’s going on? A couple of things …

First up are collapsing interest-rate spreads. Many investors thought the difference between short-term interest rates and long-term rates would increase in late 2015 and 2016. That helps support bank income by making the core business of deposit-taking and lending more profitable.

But instead, rate spreads are collapsing amid increased concern over deflation and economic weakness. For example, the crucial 2-10 Treasury yield spread just collapsed to its lowest since 2007. That’s putting pressure on industry-wide profit margins.

Second are worries about rising credit losses. If corporate borrowers can’t pay back their loans and credit lines, particularly in the energy sector, it’s going to take a major chunk out of bank profits. JPMorgan Chase (JPM) just added to its loan-loss reserves for the first time since the end of the last credit crisis, and other banks are following suit.

The financial sector is feeling the heat now.
But it’s not just energy. The major bank regulatory agencies warned in December that banks were overly exposed to aggressive commercial real estate lending. I’m very concerned about overly aggressive auto lending as well.

It’s also worth pointing out that shares of the major mortgage insurers are collapsing. To just give you one example, Radian Group (RDN) has lost roughly half its value since last summer. It’s now trading for the lowest in 34 months. Could investors be anticipating more problems in the housing market going forward, perhaps because of a weakening domestic economy? You bet.

So what does this mean for stocks? Well, the deterioration in credit markets last year foretold the equity turmoil this year. It was a key reason I told my subscribers last spring and summer to pare their stockholdings dramatically, raise a large amount of cash, and hedge against — or target gains from — deterioration in vulnerable companies.

Going forward in 2016, I don’t see how the broader market can mount a lasting rally unless and until financials stabilize. That’s because the financials are the glue that holds the capital markets (and the economy) together.

Just consider: Banks have already started tightening credit standards on new loans because of worries about old loans going bad. That’s starting to choke off the flow of credit to the economy, and it’s only going to get worse if delinquencies and defaults jump.

Credit-reliant sectors like autos, housing, and commercial real estate are particularly vulnerable. That’s because activity in those industries was turbocharged by excessively cheap and easy money over the past few years.

In other words, keep an eye on ETFs like KRE — and the health of the underlying banking sector. I believe they hold the key to the broader markets.

Other Developments of the Day

- Chinese stocks tanked overnight, with the Shanghai Composite Index falling more than 6% to a 13-month low of 2,749. Several industry groups lost ground, helped along by reports that capital outflows jumped in December. That pushed outflows to an estimated $1 trillion in 2015, a record high.

- Vague chatter about non-OPEC and OPEC countries working together to cut oil production kept the overnight trading session from being a bloodbath for U.S. stock futures. But that still seems to be pie-in-the-sky talk, given the fact the Saudis aren’t playing along.

What’s more, U.S. production isn’t under the purview of government officials like production overseas. So OPEC is reluctant to cut its own production in a move that would just cede market share to U.S. shale oil producers.

- The financial conglomerate American International Group (AIG) attempted to placate dissident shareholders like Carl Icahn by announcing restructuring plans. It plans to sell its broker-dealer network, attempt to IPO its mortgage insurance business, re-organize into nine business units, and cut more costs. But considering the pressure on financials — and the fact mortgage insurance stocks are collapsing — that plan could be tough to execute.

- President Obama is pushing for changes to retirement plans. He wants to offer tax credits to small businesses that auto-enroll workers in 401(k)s and to allow multiple businesses to pool their plans in an effort to bring down costs. We’ll have to see if Congress acts on the suggestions in the months ahead.

Read more at link above

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**Carol** Thu Jan 28, 2016 9:05 am

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Post n°66

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Thu Jan 28, 2016 9:05 am

Christine Lagarde Activates The 2010 Reforms, Today 1-27-16 Video
https://vimeo.com/153304425

"I commend our members for ratifying these truly historic reforms,” IMF Managing Director Christine Lagarde said. “These reforms will ensure that the Fund is able to better meet and represent the needs of its members in a rapidly changing global environment. Today marks a crucial step forward and it is not the end of change as our efforts to strengthen the IMF’s governance will continue.”

Historic Reforms Double Quota Resources and Enhance Voice of Emerging and Developing Economies IMF Survey

Historic Reforms Double Quota Resources and Enhance Voice of Emerging and Developing Economies
IMF Survey January 27, 2016

- Quota and governance reforms agreed in 2010 are approved

- Package strengthens influence of emerging markets

- Approval paves the way for 15th review

The 2010 IMF quota and governance reforms that took effect yesterday will strengthen the voice and representation of emerging and developing economies in the institution; reinforce the legitimacy of its decision-making process; and equip it with more permanent resources to better respond to future crises.

“I commend our members for ratifying these truly historic reforms,” IMF Managing Director Christine Lagarde said. She noted that a more representative, modern IMF will ensure that the institution is able to better meet the needs of its members in a rapidly changing global environment.

“Today marks a crucial step forward and it is not the end of change as our efforts to strengthen the IMF’s governance will continue,” Lagarde added.

-Significance of quota and governance reforms

- This historic change marks an important step forward for the IMF.

First, the reforms significantly increase the IMF’s quota resources and its ability to respond to crises more effectively. The combined quotas (or the capital countries contribute) of the IMF’s 188 members will increase to a combined SDR 477 billion (about US$659 billion) from about SDR 238.5 billion (about US$329 billion).

Second, they also improve the Fund’s governance by better reflecting the increasing role of dynamic emerging and developing countries in the global economy. More than 6 percent of quota shares will shift to dynamic emerging market and developing countries and also from over-represented to under-represented IMF members. As a consequence, four emerging market countries (Brazil, China, India, and Russia) will be among the 10 largest members of the IMF. Other top 10 members include the United States, Japan, and the four largest European countries (France, Germany, Italy, and the United Kingdom).

The 2010 agreement will also enhance the effectiveness of IMF’s decision-making, including in its 24-member Executive Board. For the first time, the IMF’s Board will consist entirely of elected Executive Directors, ending the category of appointed Executive Directors (currently the members with the five largest quotas appoint an Executive Director).

The category of appointed Executive Directors (currently the members with the five largest quotas appoint an Executive Director) will cease to exist. At the same time, the quota shares and voting power of the IMF’s poorest member countries will be protected. Moreover, advanced European countries have committed to reduce their combined Board representation by two chairs by the next regular election of Executive Directors that will take place this fall.

Next Steps

These reforms reflect major shifts in the global economy. The 2010 reforms—which built on reform steps in 2008 and followed extensive consultations involving member governments and outside stakeholders—take into account the changing realities of the global economy, and notably the growing weight and role of dynamic emerging and developing economies. The ratification of the 2010 reforms also clears the way for the Fund to begin the 15th review of its quotas. The 15th review will provide an opportunity to discuss the size and composition of IMF resources and the distribution of quota shares among the Fund’s membership.

Last edited by Carol on Thu Jan 28, 2016 2:37 pm; edited 1 time in total

_________________
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It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Thu Jan 28, 2016 11:29 am

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Post n°67

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Thu Jan 28, 2016 11:29 am

Geopolitics:
US APPROVES YUAN SDR INCLUSION AFTER CHINA ORDERS 300 BOEING PLANES
http://geopolitics.co/2015/09/27/us-approves-yuan-sdr-inclusion-after-china-orders-300-boeing-planes/

After reassuring the United States that its economy will be propped up by China, Obama has given his thumbs up to the inclusion of Renminbi into the IMF’s SDR basket of currencies. Renminbi is the official “people’s currency” of China; Yuan is the primary unit of that currency. This will pave the way for the exclusion of the fiat dollar from the global financial system in the coming days.

Of course, there are other covert arrangements which led us to conclude that the East is only really aiming for a peaceful “win-win” resolution of all conflicts with the West, and that the best they, i.e. the Reformists, could do for the time being is to initiate an “all-inclusive economic system”, and it is up to us to exploit and maximize that scenario where “no one is left behind.”

Earlier, the White House was also trying to raise the stakes using the cybersecurity and hacking issue which both countries are guilty of doing, and to which China has effectively downplayed by talking to the tech companies first before with anybody else.

After extended bargaining, both parties have reached an understanding on cybertheft issue, among others.

Last edited by Carol on Thu Jan 28, 2016 11:34 am; edited 1 time in total

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Thu Jan 28, 2016 11:32 am

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Post n°68

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Thu Jan 28, 2016 11:32 am

Getting Greater Say: Russia Makes It Into Top 10 IMF Member States
Russia, along with three other BRICS countries, has entered the list of the Top 10 IMF Member States, which have the largest quota and voting share of the Fund, meaning more power and a greater say as the lender of last resort.
http://sputniknews.com/politics/20160128/1033840659/imf-reform-russia-quota.html#ixzz3yY8zWPKD

China Sharpens Efforts to Halt Money Outflow
Moves risk undercutting Beijing’s efforts to elevate the yuan’s international profile.
Updated Jan. 27, 2016 11:58 a.m. ET
China is ramping up efforts to halt a flood of money leaving the country in response to an economic slowdown, moves that risk undermining Beijing’s ambition to elevate the yuan’s profile on the world stage.

http://www.wsj.com/articles/china-sharpens-efforts-to-halt-money-outflow-1453898254

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It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Thu Jan 28, 2016 11:50 am

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Post n°69

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Thu Jan 28, 2016 11:50 am

MarketWatch:
China’s central bank makes massive cash infusion. 590-billion yuan injection is most in 3 years, intended to improve liquidityhttp://www.marketwatch.com/story/chinas-central-bank-makes-massive-cash-infusion-2016-01-27?dist=markets

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**Carol** Thu Jan 28, 2016 11:57 am

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Post n°70

http://www.imf.org/external/mmedia/view.aspx?vid=4724940772001

Carol Thu Jan 28, 2016 11:57 am

THE PURSUIT OF A MULTI-CURRENCY SYSTEM
http://philosophyofmetrics.com/the-pursuit-of-a-multi-currency-system/

Christine Lagarde IMF video: http://www.imf.org/external/mmedia/view.aspx?vid=4724940772001

JANUARY 27, 2016 JC COLLINS
A Fear-Free Analysis

Back in 2011 the World Bank published a report titled Global Development Horizons – Multipolarity: The New Global Economy (GDH2011). In that report it laid out three potential scenarios for the future framework of the international monetary system. These three scenarios were:

- Status quo of the USD based framework.
- A multicurrency system which better reflects the realities of the emerging economies.
- An SDR based reserve system.

It was decided that scenario two, a multicurrency system, would offer the best opportunity to rebalance the international monetary system and contribute to global growth. Under this option the USD could remain at the head of a multicurrency system for a longer period of time. This would make such a transitioning multicurrency system stable as wealth incrementally shifts from the developed economies to the developing, or emerging, economies.

Global wealth will rebalance until there is no developed and developing.

As an interesting side note, in order for scenario three to function properly, a rebalancing like is described in scenario two would have to take place first. All three serve as monetary steps.

As the monetary framework shifts into a more multipolar (the term which I like to use is multilateral) functionality, there will be both periods of marginal volatility and periods of increased volatility, as well as periods of no relative peace and prosperity. This volatility may be the norm for a few years as the system attempts to adjust and seek a form of monetary and financial equilibrium.

This fluctuating instability will also transfer over into the geopolitical world, as some borders are realigned and new alliances are constructed. The important part to remember is that all participants in the global monetary system are working towards the same goal of rebalancing. The end result will be that no one country has a dominant position within the global economy.

The forecast period for GDH2011 is from 2011 to 2025. Since starting POM the slow crawl of monetary reform and major policy realignments is beginning to make more sense to me. In the early days I expected that changes would happen faster and with more frequency. Though there are periods, or moments, when it appears like a sudden change or adjustment has taken place, the buildup for those changes and adjustments have taken months to plan and strategize. If not years.

Things change and the schedule and timeline for monetary reform will be updated as required. I will continue to research and write about this transition, as I find it to be the one of the most exciting things taking place in our world.

Also, I remain confident in my conclusions that the SDR basket of currencies will serve the purpose of a global currency unit which is meant to construct the valuations and weights of a world currency, much like the European Currency Unit (a basket of European currencies) was the predecessor to the actual euro currency. The SDR will be the predecessor to the bancor.

Whether this is completed by the year 2025 is debatable. Either way, understanding the complexity of the transition itself is obviously one of the most important things which we can do to facilitate an investment strategy which is sustainable and profitable in such a changing world. JC

_________________
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With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Thu Jan 28, 2016 12:04 pm

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Post n°71

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Thu Jan 28, 2016 12:04 pm

The overview text from the World Bank’s GDH2011
http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/EXTGDH/0,,contentMDK:22914474~menuPK:7933491~pagePK:64167689~piPK:64167673~theSitePK:7933464,00.html

Sweeping changes are afoot in the global economy. As the second decade of the 21st century unfolds and the world exits from the 2008–09 financial crisis, the growing clout of emerging markets is paving the way for a world economy with an increasingly multipolar character. The distribution of global growth will become more diff use, with no single country dominating the global economic scene.

The seeds of this change were planted some time ago. Over the past two decades, the world has witnessed emerging economies rise to become a powerful force in international production, trade, and finance. Developing countries’ share of international trade flows has risen steadily, from 30 percent in 1995 to an estimated 45 percent in 2010. Much of this rise has been due to an expansion of trade not between developed countries and developing countries, but among developing countries. Similarly, more than one-third of foreign direct investment in developing countries currently originates in other developing countries. Emerging economies have also increased their financial holdings and wealth. Emerging and developing countries now hold two-thirds of all official foreign exchange reserves (a reversal in the pattern of the previous decade, when advanced economies held two-thirds of all reserves), and sovereign wealth funds and other pools of capital in developing countries have become key sources of international investment. At the same time, the risk of investing in emerging economies has declined dramatically. Borrowers such as Brazil, Chile, and Turkey now pay lower interest rates on their sovereign debts than do several European countries.

As investors and multinational companies increase their exposure to fast-growing emerging economies, international demand for emerging-economy currencies will grow, making way for a global monetary system with more than one dominant currency. The growing strength of emerging economies also affects the policy environment, necessitating more inclusive global economic policy making in the future.

This broad evolution under way in the global economy is not without precedent. Throughout the course of history, paradigms of economic power have been drawn and redrawn according to the rise and fall of states with the greatest capability to drive global growth and provide stimulus to other countries through cross-border commercial and financial engagements. In the first half of the second millennium, China and India were the world’s predominant growth poles. The Industrial Revolution brought Western European economies to the forefront. In the post–World War II era, the United States was the predominant force in the global economy, with Germany and Japan also playing leading roles.

In more recent years, the global economy has begun yet another major transition, one in which economic influence has clearly become more dispersed than at any time since the late 1960s. Just as important, developing countries have never been at the forefront of multipolarity in economic affairs. During the forecast period of Global Development Horizons (GDH) 2011—from 2011 to 2025—the rise of emerging economies will inevitably have major implications for the global economic and geopolitical hierarchy, just as similar transformations have had in the past.

Increased diffusion of global growth and economic power raises the imperative of collective management as the most viable mechanism for addressing the challenges of a multipolar world economy. The key differences that the management of a multipolar global economy will present global economic order relate to the distribution of the costs and responsibilities of system maintenance and the mechanisms for sharing the special privileges and benefits associated with being a global growth pole. In the postwar era, the global economic order was built on a complementary set of tacit economic and security arrangements between the United States and its core partners, with developing countries playing a peripheral role in formulating their macroeconomic policies and establishing economic links with an eye toward benefiting from the growth dynamism in developed countries. In exchange for the United States assuming the responsibilities of system maintenance, serving as the open market of last resort, and issuing the most widely used international reserve currency, its key partners, Western European countries and Japan, acquiesced to the special privileges enjoyed by the United States— seigniorage gains, domestic macroeconomic policy autonomy, and balance of payments flexibility.

Broadly, this arrangement still holds, though hints of its erosion became evident some time ago. For example, the end of the postwar gold exchange standard in 1971 heralded a new era of floating currencies (formalized by the Jamaica Agreement in 1976), a trend that has not been limited to developed countries. Particularly since the East Asian financial crisis of 1997–98, developing countries have increasingly floated their currencies. Changes in currency use have also occurred. As Europe has followed a trajectory of ever-increasing economic integration, the euro has come to represent a growing proportion of international transactions and foreign exchange reserve holdings. At the same time, developing economies’ increased trade flows and the gradual opening of their economies to foreign capital have benefited developing economies handsomely, boosting their growth potential and tying their economic and financial stakes to the continuation of a liberal global order. In the unfolding global economic environment, in which a number of dynamic emerging economies are evolving to take their place at the helm of the global economy, the management of multipolarity demands a reappraisal of three pillars of the conventional approach to global economic governance—the link between economic power concentration and stability, the North-South axis of capital flows, and the centrality of the U.S. dollar in the global monetary system. Such a reappraisal offers much in advancing the debate on the future course of international development policy and discourse.

In anticipation of the shape of the future global economy, this first edition of Global Development Horizons aims to map out the emerging policy agenda and challenges that an increasingly multipolar world economy poses for developing countries.
End

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Thu Jan 28, 2016 2:25 pm

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Post n°72

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Thu Jan 28, 2016 2:25 pm

Germany Has Repatriated Over 366 Tonnes Of Gold From New York And Paris -- 01/27/2016
http://www.zerohedge.com/news/2016-01-27/germany-has-repatriated-over-366-tonnes-gold-new-york-and-paris

Update on Bundesbank Gold Repatriation 2015

Deutsche Bundesbank has just released a progress report on its gold bar repatriation programme for 2015 – “Frankfurt becomes Bundesbank’s largest gold storage location“.

During the calendar year to December 2015, the Bundesbank claims to
have transported 210 tonnes of gold back to Frankfurt, moving circa 110
tonnes from Paris to Frankfurt, and just under 100 tonnes from New York
to Frankfurt.

As a reminder, the Bundesbank is engaged in an unusual multi-year
repatriation programme to transport 300 tonnes of gold back to Frankfurt
from the vaults of the Federal Reserve Bank of New York (FRBNY), and
simultaneously to bring back 374 tonnes of gold back to Frankfurt from
the vaults of the Banque de France in Paris. This programme began in
2013 and is scheduled to complete by 2020. I use the word ‘unusual’
because the Bundesbank could technically transport all 674 tonnes of
this gold back to Frankfurt in a few weeks or less if it really wanted
to, so there are undoubtedly some unpublished limitations as to why the
German central bank has not yet done so.

Read more at link above.

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Thu Jan 28, 2016 2:28 pm

Carol

Carol: Admin; Posts : 31798
Join date : 2010-04-07
Location : Hawaii

Post n°73

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Thu Jan 28, 2016 2:28 pm

Stock market slump making execs ex-billionaires... -- 25 Jan 2016 --
http://nypost.com/2016/01/25/stock-market-slump-has-made-these-execs-ex-billionaires/

The 13 percent drop in US stocks from their 2015 highs has not only messed with tens of thousands of working-class 401(k) accounts, but also knocked more than a dozen American executives from the billionaires club.

Twenty US execs, including GoPro Chief Executive Nick Woodman and Valeant boss Michael Pearson, have fallen out of the coveted 10-figure net worth echelon, according to Forbes, which tracks the net worth of the wealthiest in real time. Since May 19, the Dow has fallen 13.2 percent while GoPro shares have slipped 79 percent and Valeant shares are off 49 percent.

Globally, 145 people, or 8 percent of all billionaires, over the past eight months have fallen from the 10-figure level. There were 1,596 billionaires in the world as of Monday, according to Forbes.

The Dow Jones industrial average fell 208.29 on Monday, to 15,885.22, and is now off 8.8 percent this year.

Other US executives demoted from 10-figure status:

Jamie Dimon, chairman and chief executive at JPMorgan Chase. Lloyd Blankfein, chairman and chief executive at Goldman Sachs.
Dimon, whose personal wealth is tied up in large part in JPMorgan shares, first became worth $1 billion last summer, according to Bloomberg, as the bank’s shares hit a high of $70.61.

Since then, JPMorgan shares have been caught in the downdraft and have fallen 21 percent, closing Monday at $55.66. Dimon’s net worth is now $896 million, according to Bloomberg.

Blankfein’s story parallels that of Dimon. His net worth, weighted in Goldman stock, hit $1 billion when the Wall Street bank’s stock reached a high of $218.77 last June.

But Goldman shares sank to $151.17 Monday, down 31 percent from last summer.

Blankfein is now worth $914 million, according to the Bloomberg index.

GoPro’s Woodman saw his personal wealth slip to $802 million as of Monday, according to the Bloomberg index.

The action-camera entrepreneur boasted personal wealth in excess of $3 billion in October 2014, just four months after GoPro’s IPO.

But it’s been a long slide since the stock reached a high of nearly $100 back then, as evidenced by its Monday close at $10.59 per share. Similarly reduced is Pearson’s net worth. His 10.1 million shares in pharma company Valeant were worth $2.7 billion when they peaked near $264 in August.

But the stock has fallen 65 percent since then, closing Monday at $92.63, to give him a net worth of $890 million, according to the Bloomberg index.

Also falling from the last Forbes annual billionaires list is Relativity Media’s Ryan Kavanaugh, health care executive Clifford Illig, money manager Charles Brandes, coffee king Robert Stiller and biotech biggie Alan Auerbach.

But just because they’re down doesn’t mean they’re out.

Jack Dorsey, CEO of both Twitter and Square, made headlines last week when Forbes reported his net worth had dipped below $1 billion.

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Thu Jan 28, 2016 6:15 pm

Carol

Carol: Admin; Posts : 31798
Join date : 2010-04-07
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Post n°74

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Thu Jan 28, 2016 6:15 pm

The rise in oil prices after Russia's decision to hold talks with OPEC
http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sl=ar&tl=en&u=http://www.ara.shafaaq.com/53073&usg=ALkJrhiMjifvmwSWKBZhCrkAh25I0lt7Ng

Twilight News / oil prices ended trading Wednesday at high altitude after a Russian surprise "high-caliber" was the disclosure in talks with Saudi Arabia and the Organization of Petroleum Exporting Countries (OPEC) Badv joint cut oil production in order to support the crumbling prices.

Brent and concluded today's session up $ 1.34 to $ 33.14 a barrel at the settlement after he arrived to $ 33.49 during the session, or US crude Rustle propagated settled at $ 32.30 a barrel, up 85 cents (2.7%) after it was reached during the session 32.84 and be so may It achieved an increase of 21% from the lowest levels this month.

Nikolai Tokarev, head of the Russian state-owned company "Transneft" monopoly oil pipelines in Russia today and it was revealed that the Russian energy sector officials have decided that he should hold talks with Saudi Arabia and other OPEC countries about output cuts to support oil prices.

The comments provided the first hint of a possible collaboration between the largest oil producer outside OPEC and between the organization to try to reduce a record glut in the supply of crude.

Tokarev told a meeting of government officials and managers of oil companies in Moscow that he had reached the conclusion that there is a need to talk with OPEC to support oil prices.

Was quoted by RIA news agency Tokarev as saying: "During the meeting were discussed dealt with in particular the price of oil and what steps we should take collectively to change the situation for the better, including negotiations within the framework of OPEC and at the bilateral level ... of course the main initiative led by our partners, the Saudis, they The main negotiators, and that means it is the first party that we need to discuss this with him. "

Tokarev said that the production cuts will be in business for talks with OPEC's agenda, he added: "Yes, that one of the arms or mechanisms that will allow us to make a balance to some extent in the price of oil."

A spokesman for the Russian Energy Ministry and stressed that coordination possible with OPEC was discussed during the meeting hosted by the ministry, while the Kremlin spokesman announced that Russia holds regular discussions with several countries, including oil-producing countries on the situation in the crude markets, but plans do not exist at the moment for action coordinated.

And leave the statement of the Russian Energy Ministry the door open to talks with OPEC moments after the president of "Transneft" statement

Said Andrew Lebo of Lebo Oil Associates "I'm still questioning about what will happen in the end, while producers have seen oil to the other party in order to reduce production while they maintain their production levels ... I think that geography factors-political in the Middle East to play a bigger role in the actual production of oil more of energy ministers who would like to see higher prices statements. "

And it helped hints to a possible agreement between OPEC members and producers competitors in the rise of oil 4% in Tuesday's session.

Read more at link above.

Last edited by Carol on Thu Jan 28, 2016 11:39 pm; edited 1 time in total

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

**Carol** Thu Jan 28, 2016 11:35 pm

Carol

Carol: Admin; Posts : 31798
Join date : 2010-04-07
Location : Hawaii

Post n°75

Re: INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

Carol Thu Jan 28, 2016 11:35 pm

https://www.youtube.com/watch?v=uxhuVXWwNUE

Monetary Meth Coming Soon-Gerald Celente
Date: Thursday, 28-Jan-2016 16:29:34

Top trends forecaster Gerald Celente says the global economy is tanking, but don’t expect central banks to go down without a fight. Celente explains, “So, what happens? The markets are going down, and you hear from people like Ray Dalio (hedge fund manager) from Bridgewater Associates saying that the Federal Reserve needs to consider quantitative easing again and more stimulus. All of a sudden, the markets go up because, what happens, Mario Draghi, former head of the Goldman Sachs gang in Europe. . . . . Now, of course, he’s the head of the European Central Bank (ECB). Davos, Dalio, Draghi, three D’s man. Draghi gave these money junkies over there some monetary meth. All of a sudden, Draghi comes out and promises more stimulus on the horizon, folks. Whether it’s the Fed, ECB, China or the Bank of Japan talking about it again—more stimulus. All they are doing is keeping this money junkie, this Ponzi that is addicted to cheap money, alive. At some point, as we saw, it’s crashing and they keep coming up and give it more life.”

Celente predicts, “It’s a global recession and it’s already on. What they could do to prop up the stock markets, I don’t know, but our forecast is they won’t be able to. It’s also very important to understand that the people will not blame Obama for the declining economy. They are not tuned in enough, and they have been pushed down to I don’t care and I don’t believe in hope and change anymore. It will be neutral as to the party preference.”

On the upcoming 2016 election, Celente says, Conservatives aren’t conservative anymore and liberals aren’t liberals anymore. . . . How about ‘High Crimes and Misdemeanors’? Six banks were convicted of felonies for rigging the LIBOR interest rate and rigging the FOREX or currency markets, which is a $5.3 trillion a day market. Not one head rolled. . . . This is what you call a neo-feudal society. The rich get a slap on the wrist, and we get a whack on the head for committing the most minor crimes because we have to obey the law. . . . We see it as Trump and Clinton, at this point, and Trump is not going to get the woman vote. At this point, I think Clinton can beat Trump.”

On the subject of the stability of the banks, Celente says, “The only money I keep in a bank is money to run our business because here is the deal. If there is a terrorist strike, false flag or real, there will be a bank holiday and . . . bail-ins. The global banking system is in a bear market. China . . . Japan . . . . France, bear market . . . UK is in a bear market. We are told everything is going to be okay. I wouldn’t put my money in the banks, and I’ll tell you why. (They’ll say) We got your money and we’ll give it back if and when we want to. Look what happened in Greece. Look what happened in Cyprus. Look what’s going on as the emerging market currencies are collapsing. Look at commodity prices collapsing. Put your money in the bank? Knock yourself out. Speaking for myself, why should I put it in a bank? They give me nothing back, and now they are even talking about negative interest rates. . . . They will charge you to keep it there.”

Join Greg Hunter as he goes One-on-One with Gerald Celente, Publisher of the Trends Journal.

_________________
What is life?
It is the flash of a firefly in the night, the breath of a buffalo in the wintertime. It is the little shadow which runs across the grass and loses itself in the sunset.
With deepest respect ~ Aloha & Mahalo, Carol

tMoA

INTERNATIONAL FINANCIAL PROGRESS REPORT - part 1

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