Thursday, April 27, 2017

Swamp or no swamp, Goldman swims on

The investment bank’s network reaches the White House, again. Consider just this very partial list: Henry Fowler, Robert Rubin, and Hank Paulson, former US Treasury secretaries. Mark Carney, governor of the Bank of England. Mario Draghi, European Central Bank president. Malcolm Turnbull, prime minister of Australia. Bill Dudley, president of...

Lagarde Says Globalization Needs to Have a More Inclusive Face

Supporters of globalization need to develop a new way to promote open markets that relies on smaller trade deals and helps people who are feeling left out, International Monetary Fund Managing Director Christine Lagarde said. “I certainly hope there is not a move toward deglobalization,” Lagarde said Friday in an...

Apple in line of fire if trade wars start

Trump's decision to scrap Trans-Pacific Partnership is a lost opportunity for tech. There aren’t many politicians in the US right now who are prepared to shed public tears over abandoned trade deals. So when president-elect Donald Trump declared this week that the US, under his administration, would drop its support for...
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Mark Blyth: Global Trumpism and The Revolt Against The Creditor Class

Mark Blyth is a Scottish political scientist and a professor of international political economy at Brown University. At an event on November 9 at Brown's Watson Institute for International and Public Affairs, he spoke about "Global Trumpism" -- a worldwide working-class backlash against harmful macroeconomic trends. "What we have everywhere...
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Michael Hudson on the Orwellian Turn in Contemporary Economics

Michael Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of Killing the Host (2015), The Bubble and Beyond (2012), Super-Imperialism: The Economic Strategy of American Empire...

Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $375 Billion In US...

One month ago, when we last looked at the Fed's update of Treasuries held in custody, we noted something troubling: the number had dropped sharply, declining by over $22 billion in one week, one of the the biggest weekly declines since January 2015, pushing the total amount of custodial...

Trump Allies Urge Fed to Cut Balance Sheet and Revive Credit

Bond investors may have another reason to worry after Donald Trump's election last week: Some of his allies are not fans of the Federal Reserve’s big balance sheet of bonds and want the central bank to shrink it. They argue that the Fed's debt portfolio has damaged the economy by...

The Nation’s Biggest Banks Have Gotten a $130 Billion Boost from Trump Win

Biggest winner: Bank of America. Donald Trump and the big banks appears to be this year’s biggest story of unrequited love. While Trump has accused Wall Street of trying to ruin the country on the election trail, investors banking on the fact that the next president will be good for nation’s...

Bonds bloodied as Trump spending plans spur dollar

Routs in global bonds and emerging markets intensified, while the dollar climbed with base metals as investors positioned for the wave of fiscal stimulus that Donald Trump has pledged to unleash. The yield on 30-year Treasuries rose to the highest since January, with last week’s record debt selloff bleeding into...

Obama Administration Gives Up on Pacific Trade Deal

Congressional GOP leaders indicated they wouldn’t consider Trans-Pacific Partnership in lame-duck session. A sweeping Pacific trade pact meant to bind the U.S.and Asia effectively died Friday, as Republican and Democratic leaders in Congress told the White House they won’t advance it in the election’s aftermath, and Obama administration officials acknowledged...

Copper Price Climbs to One-Year High

Gains based on rise in U.S. infrastructure spending after Trump triumph and optimism over China demand. Copper rose to a fresh one-year high on Wednesday, boosted by bets on a rise in infrastructure spending and continued optimism over China demand. Copper for December delivery settled up 2.9% at $2.4480 a pound...

James Rickards: The Petro Dollar Is Dead, Dollar Devaluation, Pensions Lost, World Currency

James Rickards is the Editor of Strategic Intelligence, a financial newsletter, and Director of The James Rickards Project, an inquiry into the complex dynamics of geopolitics + global capital. He is the author of The New Case for Gold (April 2016), and two New York Times best sellers, The...
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Meet the Renegades: Michael Hudson

With every major financial recovery since the second World War beginning in a place of greater debt than the one before it, how could we not have foreseen the financial crisis of 2008? In this episode of Meet the Renegades, economics professor and author, Michael Hudson argues we did. How could...

Five Reasons You Should Blame The Economics Discipline For Today’s Problems

This ended up being a pretty long piece so, for the “tl;dr” people, here is a quick summary: We are experiencing deep economic problems and it is the fault of the economics discipline. Their macro theories suck. But, there is no mechanism forcing it to alter its models when they...

Japanese companies in UK already receiving offers from EU

Haruki Hayashi, president of Japanese chambers of commerce in UK, said firms needed more than ‘general reassurances’. Japanese companies based in Britain have already started to receive offers from other European countries and could postpone investment decisions if Theresa May’s government fails to negotiate a close economic relationship with the...

Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $346 Billion In US...

One month ago, when we last looked at the Fed's update of Treasuries held in custody, we noted something troubling: the number dropped sharply, declining by over $27.5 billion in one week, the biggest weekly drop since January 2015, pushing the total amount of custodial paper to $2.83 trillion,...

Euro house of cards to collapse, warns ECB prophet

The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned. "One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB's first chief economist and a towering figure in...

Trade in Services Agreement: October 14, 2016 Publication

Today, Friday 14 October 2016, 11:00am CEST, WikiLeaks releases new secret documents from the controversial Trade in Services Agreement (TiSA) currently being negotiated by the US, EU and 22 other countries that account for over 2/3rds of global GDP. The release is just a few days ahead of the next...

As Deadline Looms, WikiLeaks Reveals Corporate Demands from the European Union in the Trade...

Demands by the EU to Lock in Privatization of Public Services in Developing Countries; Financial Services Deregulation; and Antidevelopment Provisions Revealed; Secretive, Antidemocratic Deal Must Not Be Rushed to Conclusion Today, for the first time, WikiLeaks released demands by the EU to lock in a wide list of services sectors...

Posting New Secret Trade Docs, Wikileaks Further Exposes Corporate Plot

Despite its importance both the US Presidential candidates Hillary Clinton and Donald Trump have thus far given no position on the TISA Agreement. Even as it continued to post new batches of emails from Clinton campaign chairman John Podesta, Wikileaks on Friday also published new draft chapters of the Trade...

HSBC: There’s Now a Very High Chance of a Severe Fall In U.S. Stocks

The technicals don't look good. Yesterday's big stocks drop may have just been the beginning. Or so says HSBC Holdings Plc technical analyst Murray Gunn. In a new note, Gunn says he is now on alert for a big dip in U.S. equities. "With the U.S. stock market selling off aggressively...

Part-Time Jobs Soar By 430,000 As Multiple Jobholders Surge To August 2008 Levels

While today's headline jobs print was somewhat disappointing, with the Establishment Survey missing the expected print of 175K, and growing by 156K, it was offset by a far higher 354K jump in the household survey which offset last month's weakness. But while the quantitative headline aspect is open to...

Deutsche Bank Mismarked 37 Deals Like Paschi’s, Audit Says

Deutsche Bank AG, indicted for colluding with Banca Monte dei Paschi di Siena SpA to conceal the Italian lender’s losses, mismarked the transaction and dozens of others on its own books, according to an audit commissioned by Germany’s regulator. Executives at Deutsche Bank arranged 103 similar deals with a total...

Understanding Deutsche Bank’s $47 Trillion Derivatives Book

Size of figure can be misleading, but some of those assets are hard to value, stoking concern among investors. Shares in Deutsche Bank AG have fallen by more than 48% this year amid concerns that the lender faces a hefty fine from the Justice Department and as its core lending...

Some Deutsche Bank Clients Unable To Access Cash Due To IT Outage

While it now seems that Friday's rumor of a substantially reduced Deutsche Bank settlement with the DOJ, which sent the stock price soaring from all time lows, was false following a FAZ report that CEO John Cryan has not yet begun the renegotiation process, and in the "next few...

David Stockman: America Now Lives Under A Perverted Regime

The rise of Trump—and Bernie Sanders too—vastly transcends ordinary politics. In fact, it reaches deep into a ruined national economy that has morphed into rank casino capitalism under the misguided policies and faithless rule of the Washington and Wall Street elites. This epic deformation has delivered historically unprecedented set-backs to...

According To JPMorgan, This Is The Biggest Risk Facing Deutsche Bank At This Point

Deutsche Bank uncertainties were added to concerns about BoJ tapering spooking global equity markets over the past week. Widespread press reports about Deutsche Bank clients and counterparties reducing their financial exposure to the bank, including their derivatives exposures, alarmed market participants. At the same time, JPMorgan warns, the amount borrowed...

Deutsche Bank Charged Over Paschi Accounts as Legal Hits Mount

Deutsche Bank AG was dealt a fresh blow on Saturday when an Italian court charged the company, an employee and five former executives for colluding with Banca Monte dei Paschi di Siena SpA to falsify the Italian lender’s accounts in 2008. Michele Faissola, who oversaw global rates at the time,...

Why is Deutsche Bank now the biggest worry in the financial world?

What’s going on with the banking industry? Since the credit crunch in 2008, banks have been struggling to adapt to their new environment. Low interest rates coupled with meagre yields in the financial markets mean banks can generate fewer profits from the deposits they collect, the loans they dole out,...

The decline of the middle class is causing even more economic damage than we...

I have just come across an International Monetary Fund working paper on income polarization in the United States that makes an important contribution to the secular stagnation debate. The authors — Ali Alichi, Kory Kantenga and Juan Solé — use standard econometric techniques to estimate the impact of declines in middle...

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