Thursday, October 19, 2017

Tag: Devaluation

China’s Army of Global Homebuyers Is Suddenly Short on Cash

China's escalating crackdown on capital outflows is sending shudders through property markets around the world. In London, Chinese citizens who clamored to purchase flats at the city’s tallest apartment tower three months ago are now struggling to transfer their down payments. In Silicon Valley, Keller Williams Realty says inquiries from...

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...

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,...

UN fears third leg of the global financial crisis – with prospect of epic...

The third leg of the world's intractable depression is yet to come. If trade economists at the United Nations are right, the next traumatic episode may entail the greatest debt jubilee in history. It may also prove to be the definitive crisis of globalized capitalism, the demise of the liberal...

IMF admits disastrous love affair with the euro and apologises for the immolation of...

The International Monetary Fund’s top staff misled their own board, made a series of calamitous misjudgments in Greece, became euphoric cheerleaders for the euro project, ignored warning signs of impending crisis, and collectively failed to grasp an elemental concept of currency theory. This is the lacerating verdict of the IMF's...

China to stick to stable yuan against currency basket, says central bank chief

Zhou Xiaochuan underscores Beijing’s ongoing commitment to keeping currency's value steady. The value of the yuan would remain stable against a basket of currencies, central bank chief Zhou Xiaochuan said on Sunday on the sidelines of the G20 meeting of finance ministers and central bankers in Chengdu. Speaking to the South...

Brexit Accelerates the British Pound’s 100 Years of Debasement

In 1967, U.K. Prime Minister Harold Wilson declared devaluation wouldn’t diminish the “pound in your pocket.” Chancellor of the Exchequer Norman Lamont admitted he was heard “singing in the bath” after sterling’s link to the deutsche mark was severed in 1992, sending the currency tumbling. If history is any guide,...

Britain’s Plummeting Pound Is Bad News for America

Fallout from Britain's decision to leave the European Union continued Tuesday, with the once-powerful pound falling to its lowest levels against the U.S. dollar in three decades. This is bad news for Britons, who have seen the value of their currency drop to  $1.30 vs. the dollar — on June...

China Bank Bailout Calls Grow Louder as Markets Seen Vulnerable

Predictions of a Chinese banking system bailout are going mainstream. What was once the fringe view of permabears and short sellers is now increasingly being adopted by economists at some of the world’s biggest banks and brokerages. Nine of 15 respondents in a Bloomberg survey at the end of last month,...
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Alan Greenspan on Brexit, U.S. Economy, and Inflation

Former Federal Reserve Chairman Alan Greenspan discusses fallout the U.K.'s Brexit referendum, U.S. economic growth, wage and economic stagnation, central banks, low productivity, and his call for inflation in the U.S. economy. He speaks with Bloomberg's Michael McKee and Tom Keene on Bloomberg. U.K. policy makers miscalculated and made a...

China’s exports tumble again in May as global demand stays weak

May's soggy Chinese trade data offered the latest sign that the world's second-largest economy was still a long way off from full health. Exports in dollar-denominated terms tanked 4.1 percent on-year, more than double April's 1.8 percent fall and slightly worse than estimates for a 3.6 percent decline, Reuters said...

U.S. to Press China to Curb Industrial Output

BEIJING — The Obama administration plans to use annual talks with leaders in Beijing to push for cuts in excess Chinese industrial output, which has inundated foreign markets with discounted steel, aluminum and other products, Treasury Secretary Jacob J. Lew said in Beijing on Sunday ahead of the meeting. The...
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James Rickards Reveals IMF World Currency Crash Conspiracy, We Need Gold Standard to Save...

Former CIA Advisor Jim Rickards Calculated a Conservative Gold Price Target of $10,000 Per Ounce Based on the Current Cash Supply of the United States... Including All Currency, the Number is Too Shocking to Even Mention. James Rickards is the Editor of Strategic Intelligence, a financial newsletter, and Director of...

Central Banks are Pushing Monetary Heroin to Addicted Economies

We hear a lot about the role of central banks in the world’s economies. But what exactly have they been doing over the last few years, and what has the actual impact been? Central banks have the authority over the interest rates and the quantity of a nation’s currency. Their...

Never Mind the Euro: Here’s the New Test of ECB Success

Corporate bonds will be a vital indicator of ECB progress from now on. Time to switch focus. Until now, the euro’s exchange rate has been closely tracked as an indicator of the effectiveness of the European Central Bank’s stimulus programs. Now eurozone corporate bonds are the crucial barometer investors need to...

China economy: Workers of the world’s factory protest against wage cuts and layoffs

In China's industrial heartland, the Communist Party controls the unions – but workers who feel mistreated refuse to be silenced. In the “world’s factory”, the workers are angry and disillusioned. Strikes and other labour protests have spiked across the country as Chinese manufacturing plants lay off workers and reduce wages in...

China assures U.S. no devaluation, pushing reforms forward

BEIJING - China’s premier told visiting U.S. Treasury Secretary Jacob Lew on Monday his government is pressing ahead with painful reforms to shrink bloated coal and steel industries that are a drag on its slowing economy and ruled out devaluing its currency as a short-cut to boosting exports. Premier Li...

China bank chief says speculators caused yuan fall

Chinese central bank governor Zhou Xiaochuan has accused "speculative forces" of targeting the country's currency, the yuan. He said there was no reason for the yuan to keep depreciating in value and that China would not let international speculators dominate market sentiment. Mr Zhou's remarks come as Chinese markets prepare to...

Betting against China’s currency

The Chinese economy has experienced a bumpy start in 2016. Trading on the country's stock market had been suspended twice to prevent markets from panicking, and the value of the national currency, the yuan (also called renminbi), dropped to a five-year low against the US dollar. Earlier this week,...

An American hedge fund investor Kyle Bass declares to bet against the China RMB

Recently, the well-known American hedge-fund investor Kyle Bass has disclosed to The Wall Street Journal that the Hayman Capital Management under him will bet 85% assets on the devaluation transactions of the RMB and Hong Kong dollars in the next three years, it involving billions of dollars in funding...

BlackRock’s Larry Fink Sees Buying Opportunity as Soros Cautions

Laurence D. Fink, who runs the world’s largest asset manager, said the recent stock market decline presents a buying opportunity because markets are poised to gain over the course of the next year. "You can’t walk away from these movements,” Fink, chief executive officer of BlackRock Inc., said Friday in...

Fears grow of repeat of 2008 financial crash as investors run for cover

Fears that the global economy could be heading for a repeat of the 2008 financial crash have sent shockwaves through financial markets – prompting a rush to safe havens by investors. Oil prices fell to a fresh 12-year low on Wednesday and metal prices tumbled in response to warnings that...

World faces wave of epic debt defaults, fears central bank veteran

Exclusive: Situation worse than it was in 2007, says chairman of the OECD's review committee. The global financial system has become dangerously unstable and faces an avalanche of bankruptcies that will test social and political stability, a leading monetary theorist has warned. "The situation is worse than it was in 2007....

Russian oligarchs lose $11bn in just 10 days during oil price crash

The gilded generation of Russia's richest men have suffered drastic losses during the market turmoil this year, hastening the end of an era of world dominance. They rose from nothing to accumulate wealth on an unimaginable scale. But the era of the Russian oligarch is now drawing to a close,...

Capital flight pushes China to the brink of devaluation

Beijing cannot keep burning through reserves at a record pace to defend the yuan and at the same time loosen monetary policy. It has to choose. China is perilously close to a devaluation crisis as the yuan threatens to break through the floor of its currency basket, despite massive intervention...

Saudi Devaluation Odds Highest In 20 Years, Kingdom Now More Likely To Default Than...

On Monday, we brought you “Saudi Default, Devaluation Odds Spike As Mid-East Careens Into Chaos,” in which we outlined the jump in riyal forwards and widening of CDS spreads that Riyadh witnessed in the aftermath of the kingdom’s move to cut diplomatic ties with Iran. In short: the market is...

George Soros Sees Crisis in Global Markets That Echoes 2008

Global markets are facing a crisis and investors need to be very cautious, billionaire George Soros told an economic forum in Sri Lanka on Thursday. China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world, Soros said in...

Wall Street Slides After Chinese Stocks Plunge

On the first trading day of the new year, investors’ old worries flooded back. Global stock markets tumbled on Monday, as further fears about a slowdown in China’s economy reignited concerns about global growth. The selling on Monday started after China released a weak manufacturing report, and continued after the United...
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Jim Rickards on the FED, Helicopter Money, and Chinese Devaluation

Boom Bust’s Edward Harrison interviews Jim Rickards, editor of Strategic Intelligence and author of “The Death of Money.” Jim offers his analysis of the IMF’s decision to classify Russia’s $3 billion loan to Ukraine as ‘intergovernmental,’ and why the Federal Reserve should have raised interest rates years ago instead...

How Will a U.S. Fed Interest Rate Hike Impact Oil Prices?

Update: The Federal Reserve raised rates on December 16th from 0 to .25 percent, suggesting that while the era of zero interest rates has ended, the era of low interest rates will continue for some time. The rate hike, however small, adds another mildly bearish element to the global crude...

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