Friday, April 28, 2017

Tag: US Dollar

China Reserves Hover Above $3 Trillion on Government Support

China's foreign currency holdings remained above $3 trillion in December even as the yuan capped its steepest annual decline in more than two decades. Reserves fell $41.08 billion to $3.01 trillion, the People’s Bank of China said in a statement Saturday. That matched a $3.01 trillion estimate in a Bloomberg survey...

China Considers Options to Back Yuan, Curb Outflows

China has studied possible scenarios for the yuan and capital outflows this year and is preparing contingency plans, according to people familiar with the matter. The offshore yuan surged the most in a year. The authorities have used stress tests, models and field research, said the people who asked not...

Trump And Iran: What The Next Administration Can Do

The United States’ relationship with Iran tops the list of foreign policy issues that will confront President-elect Donald Trump when he takes office in January. Like many of the other Republican presidential candidates, Trump was an early and staunch opponent of the Joint Comprehensive Plan of Action (JCPOA), the...

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...

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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Michael Hudson on Hillary Clinton and the US Elections

In this clip from our extended interview, Prof. Michael Hudson, economist and author of ‘Killing the Host – How Financial Parasites and Debt Destroy the Global Economy‘, speaks to Ross Ashcroft about the difficult choice faced by Americans in the upcoming US elections. If Hillary Clinton is more capable than...

Wikileaks Provides An Update On The Assange Internet Outage

It seems that the Obama administration's efforts to save the presidential candidacy of Hillary Clinton is finally starting to yield tangible results as WikiLeaks just provided the following update that Julian Assange was cut off from using the Internet at the Ecuadorian embassy in London effective Saturday evening. We can...

The Run Begins: Deutsche Bank Hedge Fund Clients Withdraw Excess Cash

Deutsche Bank concerns just went to '11' as Bloomberg reports a number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn some excess cash and positions held at the lender, a sign of counterparties’ mounting concerns about doing business with Europe’s largest investment bank. While the vast...

The Effects Of Money On Trade

There can be little doubt now outside of orthodox economics that the global economy is actually slowing, not accelerating as has been predicted. Economists themselves, however, continue to claim that things are getting better when the data strongly suggests otherwise. The latest depressing figures are from a pair of...

Profit Slump for S&P 500 Heads for a Sixth Straight Quarter

Analysts have been cutting estimates for U.S. earnings, after earlier projecting a return to growth during the third quarter. The third quarter was supposed to be when earnings growth returned to U.S. companies. Not anymore. Companies in the S&P 500 are now expected to report an earnings decline for the sixth...

The Coming Bond Bubble Collapse

In this week’s podcast, Michael Pento, fund manager and author of The Coming Bond Bubble Collapse, explains how the United States is fast approaching the end stage of the biggest asset bubble in history. He describes how the bursting of this bubble will cause a massive interest rate shock that...

Deutsche Bank: The US May Now Be In A Recession

Three months ago, we presented an analysis which showed something disturbing: according to Deutsche, the "current business cycle is already the fourth longest in the post- WWII period, and the corporate debt-to-GDP ratio suggests that imbalances are building", and that worse, as a result of soaring corporate debt and...

China to lead way with landmark SDR bond offerings

HONG KONG/SINGAPORE, (IFR) - China is pushing for a landmark offering of bonds denominated in Special Drawing Rights, the International Monetary Fund's synthetic reserve currency, ahead of the renminbi's official entry into the SDR basket in October. The World Bank and China Development Bank are actively preparing to issue SDR...

Yen Debate Is Stirred Up by Fed’s Hawkish Talk at Jackson Hole

Japanese currency has slid since gathering of Fed bankers last week, but major investors are still betting on yen to rise. Japanese policy makers eager to see the yen weaken may be thankful for the latest bout of hawkishness on U.S. interest rates from top Federal Reserve officials. For many market...

Song Xin: Increase Gold Reserves And Join SDR

The Chairman of the China Gold Association and General Manager and Party Committee Secretary of China National Gold Group Corporation, the latter being China's largest gold mining enterprise, is Song Xin and happens to be one of my favorite commentators in China. This gentleman made waves in July 2014...

It’s Gone – Why Foreign Demand For US Treasuries Has Disappeared

Last week's TIC data confirmed something the Fed's Treasury custody account has indicated for the past several months: foreign demand for US government bonds has not only tumbled, but there has been aggressive selling. So much so, in fact, that in the past 12 months foreign central banks have sold...

Lord Rothschild: This Is The Greatest Experiment In Monetary Policy In The History Of...

Two months ago, the bond manager of what was once the world's biggest bond fund had a dire prediction about how "all of this" will end (spoiler: not well). Gross: Global yields lowest in 500 years of recorded history. $10 trillion of neg. rate bonds. This is a supernova that...

What China’s SDR Bond Issue Really Means

This is the first step toward one world currency. They promised, they delivered. The World Bank will issue a $2.8 billion SDR bond, or Special Drawing Rights bond, in China in August. Separately, the China Development Bank will also issue between $300 million and $800 million of SDR notes. China, the...

Erdogan Threatens To Abandon US Dollar In Trade With Russia

The unexpectedly sharp antagonism between Turkey and the west accelerated today, and one day after NATO preemptively reminded Turkey that it is still a NATO alliance member and advising Ankara that "Turkey’s NATO membership is not in question", Turkey had some more choice words for its military allies. Cited...

Bank of England shuts the door on a Fed rate hike this year

Any chance the Federal Reserve had of raising rates this year may have been quashed Thursday, with the impetus coming not from home but from the other side of the Atlantic. The Bank of England's decision to not only cut interest rates but to restart its money-printing program makes the...

China and Russia continues to buy into bullion

The strength of the U.S. dollar is boosting gold sales in China and Russia as the two countries bulk up their official reserves with bullion. Returns on European currencies have continued to creep lower, with the Euro causing particular concern for global investors. With weaker than expected economic data...

SDR bonds are China’s next step to take yuan global

SHANGHAI -- With the yuan set to enter the Special Drawing Rights currency basket in October, China looks to create a market for SDR-denominated bonds as a step toward internationalizing the country's currency. The government-linked China Development Bank as early as this month will issue $300 million to $800 million...

Morgan Stanley Warns Currency Traders Worst to Come for Dollar

The dollar is set to fall 5 percent in the next few months, the Federal Reserve isn’t raising interest rates anytime soon and U.S. economic data is only going to get worse. That’s what Morgan Stanley chief global currency strategist Hans Redeker told clients in a note published Thursday, citing...

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...

How China’s Currency Manipulation Enhances the Global Role of the U.S. Dollar

But it's not quite that simple. In fact, Beijing benefits from the dollar’s dominance. On April 16, Zhou Xiaochuan, the governor of China’s central bank, the People’s Bank of China, once again set off alarm bells during a speech at the International Monetary Fund (IMF). “Starting from this April,” he...

Why is the gold price rising? Five forces driving the precious metal

Hoarding gold is a centuries-old reaction to times of crisis, and the aftermath of the EU referendum vote is no different. The yellow metal has soared in value since Britain voted to leave the European Union as investors shoot towards traditional "safe haven" assets. Prices have reached a three-year high as Brexit worries intensify. An ounce of gold is now worth...

The Role of Sanctions in U.S.-Russian Relations

Sanctions are a critical tool in persuading Russia to change its Ukraine policy. But the West’s overreliance on them risks undercutting their long-term effectiveness. Sanctions have been a central element of U.S. Russia policy following Moscow’s annexation of Crimea and the beginning of the undeclared war in eastern Ukraine. They...

Pound sterling could slide below $1.20 because of Brexit, Goldman Sachs warns

Analysts have said the pound still has further to slide. The pound fell as low as $1.28 against the dollar in overnight trading after warnings about the financial stability of the UK after Brexit spooked investors. Sterling was trading at $1.29 in mid-morning trading on Tuesday, down 0.63 per cent on...

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...

Why Gold Is Now In A New Bull Market

Investors’ interest in gold peaked in September 2011, when it was generally agreed upon that the endless rounds of quantitative easing policies by the world’s central banks will result in rising inflationary pressures, while concerns over a potential Euro Zone break-up ran rampant, as government finances in countries such...

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