Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-65061 Tue, 05 Nov 2019 19:00:06 GMT Worst May Be Over for Global Economy Amid Signs of Stabilization http://implode-explode.com/viewnews/2019-11-05_WorstMayBeOverforGlobalEconomyAmidSignsofStabilization.html One key reason for the potential turn is the wave of interest-rate cuts from global central banks. Of the 57 institutions monitored by Bloomberg, more than half cut borrowing costs this year with the Fed doing so three times and the European Central Bank pushing its deposit rate further into negative territory. Rate cuts also operate with a lag so the positive effects of easier monetary policy have yet to fully flow through, meaning a further impulse likely awaits.

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Also driving sentiment is that President Donald Trump and President Xi Jinping are on the cusp of signing "phase one" on a trade deal, which could be enough for global commerce to find a footing. China is reviewing locations in the U.S. where Xi would be willing to meet with Trump to sign a pact.

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"If the U.S.-Chinese trade escalates again, or if the U.S. starts a new trade war against the only other economy of almost equal size, the EU, it could all still go wrong," said Holger Schmieding, chief economist at Berenberg Bank. "But in the absence of such new political shocks, chances are that the global downturn could peter out in early 2020 and make way for a modest upturn thereafter."

Back on the "no recession ever" yellow brick road... all it takes is financial meltdown-level central bank intervention...

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iehi-feed-65041 Sun, 27 Oct 2019 20:37:08 GMT Lebanon Banks' Shutdown Is `Most Potent Case' for Crypto: Nassim Taleb http://implode-explode.com/viewnews/2019-10-27_LebanonBanksShutdownIsMostPotentCaseforCryptoNassimTaleb.html In an ongoing Twitter debate which began on Oct. 24, commentators vented anger on behalf of Lebanon's population, which has been without banking services for more than a week.

Following civil unrest, banks everywhere closed their doors. Six working days later, a senior banking executive said the status quo would continue until conditions improved.

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For well-known Lebanese statistician, former trader and author of "The Black Swan," Nassim Nicholas Taleb, the government's policy was enough to directly endorse cryptocurrencies such as Bitcoin. "The most potent case for cryptocurrencies: banks are never there when you need them," he summarized in a tweet.

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iehi-feed-65039 Sun, 27 Oct 2019 17:10:30 GMT Dubai Faces a ‘Disaster' From Overbuilding, Top Developer Says http://implode-explode.com/viewnews/2019-10-27_DubaiFacesaDisasterFromOverbuildingTopDeveloperSays.html Dubai needs to halt all new home construction for one or two years to avert an economic disaster brought on by continued oversupply, according to one of its biggest builders.

"We're entering a crossroads now," Damac Properties PJSC Chairman Hussain Sajwani said in a Bloomberg interview. "Either we fix this problem and we can grow from here or we are going to see a disaster."

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iehi-feed-65024 Mon, 21 Oct 2019 13:47:08 GMT Cum-ex: German tax case could ripple through the finance industry http://implode-explode.com/viewnews/2019-10-21_CumexGermantaxcasecouldripplethroughthefinanceindustry.html

In cum-ex trades, shares with and without dividend rights were quickly traded between various market participants just before the payout date for the dividend, allowing traders to reclaim double the taxes...

The cum-ex deals orchestrated by the two British bankers on trial in Bonn eventually led to a tax loss of 400 million euros ($443 million).

However, the wider scheme carried out in the first decade of the 21st century, and unearthed in 2017, is thought to have cost state coffers across Europe, including at least 10 countries outside Germany, over $60 billion.

Nearly 500 cum-ex deals worth around 5.5 billion euros are being investigated in Germany, according to the German Finance Ministry. Around 2.4 billion euros has already been recovered by the tax authorities.

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iehi-feed-65019 Sun, 20 Oct 2019 15:34:34 GMT Brexit vote postponed: Here's what could happen now http://implode-explode.com/viewnews/2019-10-20_BrexitvotepostponedHereswhatcouldhappennow.html U.K. Prime Minister Boris Johnson was thwarted by a cross-party group of politicians who voted to postpone the "meaningful vote" on his new divorce deal and force him to ask Brussels for an extension to the current Oct. 31 Brexit deadline. The developments in Parliament set up a complicated week with just 11 days left until the U.K. is still due to leave the world's largest trading bloc.

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Johnson grudgingly asked for an extension to the deadline late on Saturday night, but EU leaders don't necessarily have to accept it. Some have ruled out giving Britain more time, piling pressure on U.K. lawmakers to accept the current deal. But it's unlikely they would want a no-deal scenario and the potential economic hit it could mean for both sides of the English Channel.

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iehi-feed-65015 Fri, 18 Oct 2019 21:11:47 GMT Ray Dalio says the world is in a 'great sag' and echoes the 1930s http://implode-explode.com/viewnews/2019-10-18_RayDaliosaystheworldisinagreatsagandechoesthe1930s.html "This cycle is fading, we are now in the world in what I would call a ‘great sag'," said Dalio, adding that monetary policy, and especially interest rate reductions, were unlikely to offer much stimulus.

"Europe is at the limitation of that, Japan is (too) and the U.S. doesn't have much to go on for that," he told CNBC's Geoff Cutmore.

Dalio said the world was also experiencing the biggest wealth gap since the 1930s and that was creating political stress.

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iehi-feed-65012 Thu, 17 Oct 2019 22:19:09 GMT Holding G-7 at Trump's Doral resort is shameless - The Washington Examiner http://implode-explode.com/viewnews/2019-10-17_HoldingG7atTrumpsDoralresortisshamelessTheWashingtonExaminer.html iehi-feed-65008 Wed, 16 Oct 2019 21:32:56 GMT Brookfield Reveals Pricey Makeover, Address Change For 666 Fifth Ave., Kushner's White Elephant http://implode-explode.com/viewnews/2019-10-16_BrookfieldRevealsPriceyMakeoverAddressChangeFor666FifthAveKushne.html iehi-feed-64997 Fri, 11 Oct 2019 20:42:09 GMT Treasury will again borrow $1 trillion to pay for tax cuts, spending http://implode-explode.com/viewnews/2019-10-11_Treasurywillagainborrow1trilliontopayfortaxcutsspending.html For the second straight year, the Treasury Department will have to borrow $1 trillion to pay for the government's growing budget deficit, a consequence of juiced government spending and smaller revenues as a result of the late 2017 tax cuts, Bloomberg reports.

The big picture: Treasury borrowing surpassed $1 trillion during President Obama's first term as government spending soared amid the stimulus to combat the 2008 financial crisis, but it has steadily declined in the years since, settling down to $519 billion in 2017 before nearly doubling last year.

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iehi-feed-64992 Wed, 09 Oct 2019 14:33:35 GMT Did we betray the Kurds for Trump Towers? http://implode-explode.com/viewnews/2019-10-09_DidwebetraytheKurdsforTrumpTowers.html "I have a little conflict of interest 'cause I have a major, major building in Istanbul," Trump told Breitbart radio during his campaign. "It's a tremendously successful job. It's called Trump Towers--two towers, instead of one, not the usual one, it's two."

We withheld hundreds of millions of dollars in aid from Ukraine, potentially because Trump wanted the country to dig up some dirt on his 2020 rival. Are we now allowing Turkey to come in and massacre the Kurds, because of his business interests?

We don't know, and that's the point. We even can't trust our own president to put America's interests first. It's like Trump's telling take on Saudi Arabia: "They buy apartments from me," he said. "They spend $40 million, $50 million. Am I supposed to dislike them? I like them very much."

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this doesn't mean we're quitting Syria altogether, where we still have about 1,000 troops, and bringing Americans home, as Trump has suggested. Right now, we are simply getting out of the way of any Turkish attack.

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iehi-feed-64990 Tue, 08 Oct 2019 22:08:39 GMT Life on the frontline in Hong Kong http://implode-explode.com/viewnews/2019-10-08_LifeonthefrontlineinHongKong.html "We are a lot more determined because this time we are not pursuing something we don't have. We are stopping something we already have -- the rule of law -- from being taken away. This is very different. It's so much more concrete. It's so much more real when you're threatened with something you have being taken away."

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For more than 10 years after the handover, China lived up to its word and Hong Kong enjoyed a high degree of autonomy. But after President Xi Jinping came to power in 2012, the Communist Party increased its control of the city. Having promised to bring in universal suffrage by the 2017 elections, in 2014 Beijing revealed a significant caveat -- everyone would be given the vote but Beijing would first vet the candidates. This triggered the start of the Umbrella Movement.

A year later, five Hong Kong booksellers specialising in gossipy reads about China's political elite disappeared and emerged later in detention on the mainland. A billionaire businessman was also "escorted" back across the border to help Chinese authorities with a corruption case, compounding fears about the ability of mainland security agents to operate freely in the city.

In late 2016 and early 2017, six pro-democracy lawmakers were stripped of their seats for failing to take their oaths properly. Meanwhile, leaders of the Umbrella Movement were jailed for their involvement. And last year, the Hong Kong government declined to renew a journalist visa for Financial Times Asia news editor Victor Mallet, who was acting head of the Hong Kong Foreign Correspondents' Club when it hosted a talk by an independence advocate.

Chan says the extradition bill was the last straw. "That really raised alarm bells," she says. "Until then, people felt safe in their own beds in Hong Kong but if the extradition proposals were passed, you could be subjected to extradition probably on some trumped-up charge, sent across the border and then maybe you just disappear.

"All these issues, one on top of the other, impresses upon people here what is happening to ‘one country, two systems'. In their eyes, it has become ‘one country, one-and-a-half systems' and if this deterioration continues, very soon it will become ‘one country, one system'."

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iehi-feed-64989 Tue, 08 Oct 2019 21:52:45 GMT As Wealthy Flee Hong Kong, They Bypass U.S. to Find Other Havens http://implode-explode.com/viewnews/2019-10-08_AsWealthyFleeHongKongTheyBypassUStoFindOtherHavens.html Even before the protest movement began, the U.S. was losing luster. In a December survey by Chinese University of Hong Kong, one-third of the city's citizens said they'd consider leaving. Among them, the most popular destinations were Canada and Australia, with at least 18% of respondents each, followed by Taiwan, at 11%, and Singapore at 5%. The U.S. was the top choice for 2.9%.

Australia is a favorite for clients of John Hu, founder and principal consultant at John Hu Migration Consulting in Hong Kong. Advantages include a small time difference with China and mild climate. Canada is also popular, Hu said, especially for clients who want to follow family members who previously emigrated there.

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iehi-feed-64987 Tue, 08 Oct 2019 14:33:28 GMT These Trade Claims Made by Trump? They're All Wrong http://implode-explode.com/viewnews/2019-10-08_TheseTradeClaimsMadebyTrumpTheyreAllWrong.html Claim 1: Let's start with an easy one. On March 2, 2018, when Fox Business Network's "Mornings With Maria" asked whether China would retaliate against the metal tariffs, Mr. Trump's economic adviser Peter Navarro replied, "I don't believe any country in the world is going to retaliate for the simple reason that we are the most lucrative and biggest market in the world."

He was wrong: Everyone has retaliated against us. A recent study by the economists Mary Amiti of the Federal Reserve, Stephen J. Redding of Princeton and David Weinstein of Columbia shows that our trading partners, "especially China, have retaliated with tariffs averaging 16 percent on approximately $121 billion of U.S. exports."

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The bottom line is that pretty much everything Mr. Trump has promised on the trade front by imposing tariffs hasn't panned out, even if the president persists in saying the opposite.

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iehi-feed-64984 Sun, 06 Oct 2019 20:22:00 GMT What it's like to stay in the Italian towns selling homes for $1 http://implode-explode.com/viewnews/2019-10-06_WhatitsliketostayintheItaliantownssellinghomesfor1.html iehi-feed-64983 Sun, 06 Oct 2019 18:37:04 GMT IKEA in 'World First' Trade Transaction Using Smart Contracts and Licensed E-Money http://implode-explode.com/viewnews/2019-10-06_IKEAinWorldFirstTradeTransactionUsingSmartContractsandLicensedEM.html IKEA Iceland has taken part in a commercial transaction on ethereum, using smart contracts and licensed e-money to facilitate the settlement of an order from local retailer Nordic Store.

The transaction was carried out on a platform provided by supply chain management firm Tradeshift and used "programmable digital cash" from ConsenSys-backed Monerium, according to an announcement from Tradeshift on Tuesday. Specifically, Nordic Store bought goods from IKEA and settled an e-invoice using Monerium's tokenised Icelandic krona.

Monerium and Tradeshift suggested the "world's first" transaction shows that "government-regulated, programmable e-money is ready for mainstream markets."

As reported in June, Reykjavik-based Monerium was licensed by the Financial Supervisory Authority of Iceland (FME) as its first Electronic Money Institution, making the startup the first to have regulatory approval to provide fiat payment services over blockchain systems across the European Economic Area.

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iehi-feed-64977 Fri, 04 Oct 2019 03:29:32 GMT Donald Trump is much worse than Richard Nixon. He may even have committed treason. http://implode-explode.com/viewnews/2019-10-03_DonaldTrumpismuchworsethanRichardNixonHemayevenhavecommittedtrea.html Entitlements? He has reportedly told Senate Republicans that cutting Social Security and Medicare could be a second-term project. We got a preview of his plans to do just that in his 2020 budget blueprint in which he proposed cuts. Funny, Trump likes to run his mouth on Twitter and at his rallies, but this is something he hasn't blabbed to his wide-eyed, believe-whatever-he-says base.

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And cleaning up the environment? Nixon proposed a new Environmental Protection Agency in July 1970, and it began operations five months later. Trump has gutted it, and when he brags about all the regulations he has cut -- to the wild applause of his base -- what he's not telling them is that he is endangering the air they breathe and the water they drink. They applaud and then go home, apparently oblivious to the 85 (and counting) rules he has rolled back. Air pollution, water pollution, toxic substances, on and on and on.

There's more, but you get the point: Trump is worse than Nixon. And I haven't even gotten to the scandals. What Trump has done is far more damaging to our country. To me, it can be summed up from just one event: his infamous meeting in the Oval Office in May 2017 with Russian Foreign Minister Sergey Lavrov and Russian Ambassador Sergey Kislyak.

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iehi-feed-64969 Mon, 30 Sep 2019 15:55:49 GMT The Truth of Every Trump Claim on Ukraine and the Bidens is Nearly The Opposite http://implode-explode.com/viewnews/2019-09-30_TheTruthofEveryTrumpClaimonUkraineandtheBidensisNearlyTheOpposit.html Trump has falsely claimed that Biden in 2015 pressured the Ukrainian government to fire Viktor Shokin, the top Ukrainian prosecutor, because he was investigating Ukraine's largest private gas company, Burisma, which had added Biden's son, Hunter, to its board in 2014.

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There are two big problems with this claim: One, Shokin was not investigating Burisma or Hunter Biden, and two, Shokin's ouster was considered a diplomatic victory.

Biden was among the many Western officials who pressed for the removal of Shokin because he actually was not investigating the corruption endemic to the country. Indeed, he was not investigating Burisma at the time. In September 2015, then-U.S. Ambassador to Ukraine Geoffrey Pyatt publicly criticized Shokin's office for thwarting a British money-laundering probe into Burisma's owner, Mykola Zlochevsky.

"Shokin was not investigating. He didn't want to investigate Burisma," Daria Kaleniuk, of the Ukrainian Anti-Corruption Action Center, told The Washington Post in July. "And Shokin was fired not because he wanted to do that investigation, but quite to the contrary, because he failed that investigation."

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At various times Trump has claimed Hunter Biden "made millions of dollars from China" or "walks out of China with $1.5 billion in a fund" after hitching a ride with his father on Air Force Two. But there is no evidence to support those statements.

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But while Joe Biden was vice president, Hunter Biden was only on the board of the advisory firm that did not directly invest, but instead advised those who did. George Mesires, a lawyer for Hunter Biden, said he only took an equity stake in 2017, after Joe Biden was no longer vice president.

Mesires told The Fact Checker that the investment management company "was capitalized from various sources with a total of 30 million RMB [Chinese Renminbi], or about $4.2 million, not $1.5 billion." Because Biden acquired a 10 percent minority interest, his "capital commitment is approximately $420,000," Mesires said.

"To date, Mr. Biden has not received any return or compensation on account of this investment or his position on the board of directors," Mesires added.

Every claim Trump makes against his political opponents is like he looked at the source material so quickly and sloppily that he would be sure not to see that the actual facts stand in precise opposition to the outcome he wants to see...

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iehi-feed-64962 Tue, 24 Sep 2019 23:30:18 GMT Brexit Saga: Calls for Johnson To Resign Over Rejected Suspension of Parliament http://implode-explode.com/viewnews/2019-09-24_BrexitSagaCallsforJohnsonToResignOverRejectedSuspensionofParliam.html Mr Johnson was backed by US President Donald Trump at a joint press conference at the United Nations in New York."I'll tell you, I know him well, he's not going anywhere," said Mr Trump, after a US reporter quizzed the prime minister on whether he was going to resign.

But reaction at home was far more negative. Scotland's First Minister, the SNP's Nicola Sturgeon, said the ruling was the most significant constitutional judgement in her lifetime, and it would be "unthinkable" for Mr Johnson to remain in office.

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iehi-feed-64944 Mon, 16 Sep 2019 22:24:18 GMT Donald Trump is a deeply stupid man who routinely gets his ass kicked on the world stage http://implode-explode.com/viewnews/2019-09-16_DonaldTrumpisadeeplystupidmanwhoroutinelygetshisasskickedonthewo.html Trump wanted a trade war with China. Because he thought he could bluster and bully and get his way. But like the rest of the world, China is laughing at Trump, when they're not scratching their heads because Trump is so deeply stupid, and his administration so profoundly incompetent that China doesn't even know with whom to negotiate. But Trump got his trade war. Which he is losing. Because he is a deeply stupid man.

Trump's trade war already has cost 300,000 American jobs. And every time he opens his mouth about China, the American stock markets get spooked. And then after threatening to escalate his trade war, Trump backed down, and now desperately wants to find a way out of yet another crisis that is entirely of his own making. Because he has no idea what he's doing. Because he is a deeply stupid man who routinely gets his ass kicked on the world stage.

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iehi-feed-64938 Fri, 13 Sep 2019 22:35:16 GMT $1 Billion in Suspicious Sackler Family Wire Transfers; Anonymous Corporate Shells and Trusts Discovered http://implode-explode.com/viewnews/2019-09-13_1BillioninSuspiciousSacklerFamilyWireTransfersAnonymousCorporate.html Earlier this week, thousands of municipal governments and nearly two dozen states tentatively reached a settlement with the Sackler family and the company it owns, Purdue Pharma, maker of OxyContin. But the attorneys general of a majority of states, including New York and Massachusetts, are balking at the proposed deal, contending that the Sackler family has siphoned off company profits that should be used to pay for the billions of dollars in damage caused by opioids.

The wire transfers are part of a lawsuit against Purdue and individual Sacklers in New York. Letitia James, now the state's attorney general, had issued subpoenas last month to 33 financial institutions and investment advisers with ties to the Sacklers in an effort to trace the full measure of the family's wealth.

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Forbes has estimated that the family fortune is worth $13 billion, a figure the family has not disputed, but many state attorneys general believe that the family has far more hidden away, as a safeguard against the cascade of litigation.

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In addition to the thousands of lawsuits in state and federal court aimed at Purdue itself, some 26 states have named the Sacklers individually, with more, most recently North Carolina, having announced they are about to pursue family members as well.

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A series of transfers involving Mortimer D.A. Sackler, a former Purdue board member, was highlighted in the filings. In one case, $64 million was transferred in 2009 from a previously unknown trust called Purdue Pharma Trust MDAS, through a Swiss bank account, and then to Mr. Sackler, the filing said.

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In a letter to the court Friday, a lawyer in the attorney general's office, David E. Nachman, wrote: "Already, these records have allowed the state to identify previously unknown shell companies that one of the Sackler defendants used to shift Purdue money through accounts around the world and then conceal it in at least two separate multimillion-dollar real estate investments back here in New York, sanitized (until now) of any readily detectable connections to the Sackler family."

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