Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-63038 Tue, 26 Sep 2017 01:57:02 GMT Gold as the Monetary Sun http://implode-explode.com/viewnews/2017-09-25_GoldastheMonetarySun.html A major effort has existed to repeatedly knock down the value of gold in relation to the dollar. This is only possible in an environment in which public faith in the banking system and the stock market remain high. As soon as those two confidence bubbles burst, the dollar will decline rapidly in relation to gold, and gold will once more return to its intrinsic value, just as it has done time and time again for over 5,000 years.

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Over the millennia, mankind has used cattle, tobacco, seashells, even tulips as currency, yet each of these has failed at some point. More importantly, all paper currencies that have ever existed, except the current ones, have not only failed, but have gone to zero in worth.

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iehi-feed-63037 Tue, 26 Sep 2017 01:48:04 GMT Wall St. declines on tech selloff, North Korea concern http://implode-explode.com/viewnews/2017-09-25_WallStdeclinesontechselloffNorthKoreaconcern.html Wall Street dipped on Monday, as a selloff in technology shares weighed heavily on the Nasdaq, while the most recent statement from North Korea's to Washington added to a cautious tone.

North Korea's foreign minister said President Donald Trump had declared war on the country and it reserved the right to take countermeasures, including shooting down U.S. bombers even if they are not in its airspace.

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The comments buoyed safe-haven assets, those that are favored by investors in times of crisis, with gold XAU= up 1 percent and the Japanese yen strengthened 0.26 percent versus the greenback at 111.71 per dollar.

"The North Korea narrative is not going away and the longer it remains part of the conversation, the more negative it becomes," said Peter Kenny, senior market strategist at Global Markets Advisory Group, in New York.

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iehi-feed-63035 Tue, 26 Sep 2017 01:42:41 GMT Japan PM Shinzo Abe Parlays N Korea Tensions Into Snap Election http://implode-explode.com/viewnews/2017-09-25_JapanPMShinzoAbeParlaysNKoreaTensionsIntoSnapElection.html iehi-feed-63033 Mon, 25 Sep 2017 18:44:21 GMT AfD mobilized irrational fears of future, especially in the east, say pollsters (Germany) http://implode-explode.com/viewnews/2017-09-25_AfDmobilizedirrationalfearsoffutureespeciallyintheeastsaypollste.html iehi-feed-63030 Mon, 25 Sep 2017 15:50:09 GMT Devastation From Hurricane Maria Set Puerto Rico Back "Nearly 20 to 30 Years" http://implode-explode.com/viewnews/2017-09-25_DevastationFromHurricaneMariaSetPuertoRicoBackNearly20to30Years.html iehi-feed-63029 Mon, 25 Sep 2017 03:55:56 GMT German election results: Disappointing victory for Angela Merkel as CDU sinks, nationalist AfD hits 12.6% http://implode-explode.com/viewnews/2017-09-24_GermanelectionresultsDisappointingvictoryforAngelaMerkelasCDUsin.html iehi-feed-63027 Sun, 24 Sep 2017 13:44:17 GMT Dark Posts And Facebook's Deals With The Devil http://implode-explode.com/viewnews/2017-09-24_DarkPostsAndFacebooksDealsWithTheDevil.html iehi-feed-63026 Sun, 24 Sep 2017 01:07:29 GMT The Great Corporate Cash Shell Game http://implode-explode.com/viewnews/2017-09-23_TheGreatCorporateCashShellGame.html ... the amount of bonds issued by these companies has surged, rising 66 percent from mid-2009 to $5.24 trillion of bonds outstanding as of the end of June, Federal Reserve data show. .. That isn't necessarily a recipe for default because a large chunk of this is an exercise in financial engineering aimed at avoiding onerous taxes [by keeping earned profits offshore]. But it has consequences. First, it limits the benefit to the economy if and when those tax policies are changed because much of the money has already been released through the bond market.

And second, to the extent that companies have cash, they're not using enough of it for exciting projects. There hasn't been a tremendous wave of innovation or salary increases. Instead, companies have repurchased billions of dollars of their own shares, which is great for the stock market but doesn't do a whole lot to bolster economic growth.''

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iehi-feed-63023 Sat, 23 Sep 2017 15:20:56 GMT "Puerto Rico Back in the 18th Century" - Kunstler http://implode-explode.com/viewnews/2017-09-23_PuertoRicoBackinthe18thCenturyKunstler.html iehi-feed-63020 Sat, 23 Sep 2017 14:26:24 GMT Trump travel ban to be replaced http://implode-explode.com/viewnews/2017-09-23_Trumptravelbantobereplaced.html The Trump administration will unveil more tailored restrictions on travelers from certain countries as a replacement to the controversial travel ban over the weekend, according to senior administration officials.

The new restrictions will vary by country and could include a ban on travel to the United States, or new restrictions on obtaining a visa for citizens of particular countries, the official said. They would replace the ban on entry by citizens of six Muslim-majority nations, which President Donald Trump announced early in his term and later modified.

On a call with reporters Friday, senior Trump administration officials explained that the Department of Homeland Security, working with the State Department and other agencies, recommended to the President that the US restrict travel from certain countries based on how those countries screen their nationals and share terrorist information with the US.

DHS submitted a report to Trump on September 15 with specific recommendations, but the officials declined to provide details on which countries were deemed not in current compliance with US requirements.

The President's controversial executive order included a 90-day review period, which expires Sunday. The President is expected to sign a proclamation related to the new travel restrictions either before or on Sunday, according to another senior administration official.

Yeah, they realized they were eventually going to need to heed that whole limited-period-to-study-and-tailor thing (after which nothing resembling the original xenophobic ban would pass muster) ...

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iehi-feed-63019 Sat, 23 Sep 2017 14:21:10 GMT Creating Test for Trump, Panel Says Imported Solar Gear Hurts U.S. Firms http://implode-explode.com/viewnews/2017-09-23_CreatingTestforTrumpPanelSaysImportedSolarGearHurtsUSFirms.html A flood of imported solar equipment has seriously hurt American companies, the International Trade Commission ruled on Friday, setting up a major test of President Trump's willingness to use the protectionist measures he endorsed during the campaign.

The commission will now devise a course of action to recommend to Mr. Trump by Nov. 13. Its recommendations -- which the president will have broad leeway to accept, amend or reject -- could include establishing tariffs or minimum prices on imported solar equipment.

The commission ruled 4-0 in a case that focused on the question of whether the financial woes of two companies, Suniva and SolarWorld Americas, were caused by their own business practices or by unfair competition, often from Chinese companies that benefit from state subsidies.

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"The president will examine the facts and make a determination that reflects the best interests of the United States," said Natalie Strom, a White House spokeswoman. "The U.S. solar manufacturing sector contributes to our energy security and economic prosperity."

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Several analysts predicted that tariffs would revive the manufacturing of solar modules, or panels, in the United States, encouraging producers to open or expand American factories, as some large Chinese panel makers are already looking to do. But others said problems in the market were the result of low prices stemming from a global glut rather than a lack of capacity.

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Although companies like Sunrun, which focuses on installing panels on residential rooftops, said they could withstand higher prices, developers of large-scale projects said they were already seeing a slowdown as customers pulled back from committing to deals that could become uneconomical if costs rose.

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The case relied on a section of United States trade law that has not been used since President George W. Bush levied tariffs on foreign steel in 2002. In the intervening years, Barack Obama's administration chose to rely more heavily on the World Trade Organization to settle trade disputes.

President Trump and his advisers have argued that the World Trade Organization has been ineffective and slow at resolving trade violations. They have urged more unilateral action by the United States.

Analysts see a good chance of the president's taking action to protect the solar industry, given his longtime support for tariffs as a way to protect industries from cheap foreign products, especially from China.

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iehi-feed-63017 Fri, 22 Sep 2017 17:36:54 GMT Feierstein: Entire Global Economy Now a Ponzi; New Crisis On Horizon http://implode-explode.com/viewnews/2017-09-22_FeiersteinEntireGlobalEconomyNowaPonziNewCrisisOnHorizon.html Stock markets today are at all time highs, housing markets globally have been artificially reflated and companies who have not ever made a penny of profit are being floated for eye-watering sums.

When everybody is thinking the same thing, it is likely that no one is really thinking at all. Co-founder and presenter, Ross Ashcroft interviews investor, hedge fund manager and author of Planet Ponzi, Mitch Feierstein.

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Feierstein cited the Resolution Trust debacle as an example of what should have happened. The Trust was declared insolvent as a consequence of the 1980s Savings and Loans Crisis and up to 300 bankers were jailed.

"This is what should have happened this time around, instead of taking hundreds of trillions of dollars taxpayer's money and placing the taxpayer at incredible peril and just added liquidity to the markets," he said. "Giving more money to an insolvent institution is not the solution. You cannot pay your way out of debt with borrowed money. It's not going to cure the underlying problem of insolvency."

This is why Feierstein refers to the entire global economy as a Ponzi scheme.

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Feierstein predicts another financial crisis is on the horizon and says China is due for another significant credit event, but this time, companies should be allowed to go under.

"Capitalism without bankruptcy is like Catholicism without hell," he said. "What happens when you bail out the insolvency is you still have an insolvent bridge that has more debt." ''

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iehi-feed-63016 Fri, 22 Sep 2017 17:31:55 GMT Ukraine prepares to repay Russia $3 billion debt http://implode-explode.com/viewnews/2017-09-22_UkrainepreparestorepayRussia3billiondebt.html The saga of Ukraine's $3 billion debt to Russia may be drawing to a close, with the first indication that Ukraine has grudgingly decided to pay the $3 billion Judgment the British High Court awarded Russia in their recent court case.

Though it has not been widely reported, it seems that Ukraine has today paid Russia the court costs and interests Russia was awarded in the case.

That is a strong sign that Ukraine now expects to lose the appeal it has made against the Judgment to Britain's Court of Appeal.

In the meantime, though the fact has also received scant attention, Ukraine within the last few days has also just borrowed $3 billion in the international money markets.

This should be subtitled: "Paul Manafort too busy to fix this one for Ukraine..."

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iehi-feed-63013 Thu, 21 Sep 2017 17:17:20 GMT China's Dangerous House Price Boom Is Spreading http://implode-explode.com/viewnews/2017-09-21_ChinasDangerousHousePriceBoomIsSpreading.html In general, it's debt that's the warning sign. As developers and households become more leveraged, the risk is that a price downturn doesn't remain contained within the property market.

"The high leverage will amplify the damage to the economy if a property bust happens," said Bloomberg Intelligence economist Fielding Chen. "The shock wave will be passed onto the entire financial system, and losses will be greater," he said.

Once home prices tumble, about 40 percent of Chinese banks will be hit hard, according to a recent research note from Ping An Securities.

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iehi-feed-63012 Thu, 21 Sep 2017 15:47:29 GMT A permanent emergency: Trump becomes third president to renew extraordinary post-9/11 powers http://implode-explode.com/viewnews/2017-09-21_ApermanentemergencyTrumpbecomesthirdpresidenttorenewextraordinar.html .. the ongoing effects of that perpetual emergency aren't immediately clear, because the executive branch has ignored a law requiring it to report to Congress every six months on how much the president has spent under those extraordinary powers, USA TODAY has found. 

Exactly 16 years ago Thursday, President Bush signed Proclamation 7463, giving himself sweeping powers to mobilize the military in the days following terrorist attacks that crashed planes into the World Trade Center, the Pentagon, and a Pennsylvania field. It allowed him to call up National Guard and Reserve troops, hire and fire military officers, and bypass limits on the numbers of generals that could serve.

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"The president is given these emergency powers as a temporary measure until Congress has time to act. It stretches credulity to think Congress hasn't had time to act since 9/11 happened," said Elizabeth Goitein, co-director of the Liberty and National Security Program at the Brennan Center for Justice. "We should not be treating 9/11 as an emergency in 2017."

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The perpetual war footing has had a striking lack of examination. Under the National Emergencies Act -- a post-Watergate law intended to rein in presidential emergency powers -- the president needs to renew the emergency each year or it lapses. But Congress is also supposed to review each emergency every six months. It never has.

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And it's not just 9/11. Presidents have declared scores of emergencies over the past 40 years, dealing with everything from the Iran Hostage Crisis to the Swine Flu. More than 30 of those national emergencies remain in effect -- and Congress has never reviewed a single one in the history of the National Emergencies Act.

Is the Trump-as-antiwar-candidate lie sufficiently dead and buried yet?

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iehi-feed-63011 Thu, 21 Sep 2017 15:44:58 GMT Federal Reserve Will Continue Cutting Economic Life Support http://implode-explode.com/viewnews/2017-09-21_FederalReserveWillContinueCuttingEconomicLifeSupport.html iehi-feed-63009 Wed, 20 Sep 2017 21:14:21 GMT Catalan President blasts Madrid for 'illegal' referendum raids http://implode-explode.com/viewnews/2017-09-20_CatalanPresidentblastsMadridforillegalreferendumraids.html iehi-feed-63006 Wed, 20 Sep 2017 17:41:56 GMT Freelancer CEO destroys "delusional, stuffed, basket case, bubble, Third World economy like no other" (AU) http://implode-explode.com/viewnews/2017-09-20_FreelancerCEOdestroysdelusionalstuffedbasketcasebubbleThirdWorld.html iehi-feed-63005 Wed, 20 Sep 2017 16:09:29 GMT Fed's QT will push this market into 'brick wall': Boockvar http://implode-explode.com/viewnews/2017-09-20_FedsQTwillpushthismarketintobrickwallBoockvar.html We're finally here. About nine years after quantitative easing (QE) began, quantitative tightening (QT) is about to start. On Wednesday, after the Federal Open Market Committee releases its statement, Janet Yellen will follow with a press conference that she will do her best to make as boring as possible... [but] I expect no different an outcome this time and I believe the market -- with the S&P at an all-time high - is headed for a brick wall the deeper QT gets.

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After QE1 ended when we knew exactly the full size and expiration date (March 31st, 2010), the market topped out three weeks after and then fell 17 percent. After QE2 ended when we also knew the exact amount and deadline (June 30th, 2011), the market peaked one week later and then fell about 20 percent. Around the time QE3 ended with the lead up being a very methodical process of tapering, stocks had a hissy fit of about 10 percent only saved by James Bullard who hinted that maybe they won't end QE.

In the two months after the well telegraphed first rate hike in December 2015, stocks fell by 13 percent. The stock market of course therefore wasn't very good at discounting the end of major monetary stimulus actions even though they knew what was coming.

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iehi-feed-63002 Wed, 20 Sep 2017 03:32:31 GMT Fact-checking Donald Trump's United Nations speech: Modest on US Financing of UN; Baloney on Amazing Job Gains (AND MOST OTHER CLAIMS) http://implode-explode.com/viewnews/2017-09-19_FactcheckingDonaldTrumpsUnitedNationsspeechModestonUSFinancingof.html