Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-60288 Sat, 23 Jul 2016 17:09:36 GMT Munich, Turkey, Baton Rouge, Nice, Brexit, Trump: It's all connected http://implode-explode.com/viewnews/2016-07-23_MunichTurkeyBatonRougeNiceBrexitTrumpItsallconnected.html Those cheering Brexit in the U.K., and welcoming a state of emergency in Turkey, were the ships that were supposed to be lifted by the rising tide of globalization, a promise that proved cruelly incorrect. They are now finding satisfaction in defeating their ruling classes, the people who believed those countries, and the world, were theirs to rule.

It's the same live wire that connects an Islamic State-inspired attack in Europe to a racially motivated shooting rampage in the U.S. The perpetrators are -- almost always -- those who felt they have very little left to lose in their lives. The cause they choose is almost a footnote to their act of anarchy.

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iehi-feed-60287 Sat, 23 Jul 2016 16:49:05 GMT Russian diplomacy aims to accelerate Syrian endgame; US Out of Options http://implode-explode.com/viewnews/2016-07-23_RussiandiplomacyaimstoaccelerateSyrianendgameUSOutofOptions.html Moscow estimates that Obama administration will somehow ride out the domestic criticism of Russian-American coordinated strategy to fight extremist groups in Syria. Indeed, Washington has run out of options in Syria and Moscow cannot be oblivious of that.

The Obama administration cannot afford to overlook the intelligence reports that Nusra Front, al-Qaeda's affiliate in Syria, is planning to attack targets in the West. Simply put, the Russian prognosis is coming true.

However, it is the failed coup in Turkey that becomes a god-sent opportunity for Russia to connect the dots and accelerate the endgame in Syria.

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iehi-feed-60286 Sat, 23 Jul 2016 14:51:29 GMT Mexico May Be On Verge of Backing Peso With Silver: "Would Unleash a Global Power Shift" http://implode-explode.com/viewnews/2016-07-23_MexicoMayBeOnVergeofBackingPesoWithSilverWouldUnleashaGlobalPowe.html iehi-feed-60284 Sat, 23 Jul 2016 14:46:52 GMT Once-expanding EU prepares to contract for the first time in its history http://implode-explode.com/viewnews/2016-07-23_OnceexpandingEUpreparestocontractforthefirsttimeinitshistory.html iehi-feed-60282 Sat, 23 Jul 2016 00:47:51 GMT Lagarde Seen Likely to Avoid Jail Time, Keep IMF Job Amid Trial http://implode-explode.com/viewnews/2016-07-22_LagardeSeenLikelytoAvoidJailTimeKeepIMFJobAmidTrial.html iehi-feed-60281 Sat, 23 Jul 2016 00:46:42 GMT How Sub-Zero Government Bonds Turned the Hunt For Yield Upside Down http://implode-explode.com/viewnews/2016-07-22_HowSubZeroGovernmentBondsTurnedtheHuntForYieldUpsideDown.html iehi-feed-60280 Sat, 23 Jul 2016 00:37:35 GMT Japan joins China in opening a physical gold exchange, Amidst Japan Retail "Gold Rush" http://implode-explode.com/viewnews/2016-07-22_JapanjoinsChinainopeningaphysicalgoldexchangeAmidstJapanRetailGo.html The Tokyo Commodities Exchange (TOCOM) is joining with the Shanghai Gold Exchange (SGE) to become the second major physical gold market in Asia.  Beginning on July 25, the TOCOM will begin deliveries for spot contracts, and is the only gold exchange accepted for futures contracts in Japan.

Since Japanese bonds fell into negative yields, investors and consumers have been buying physical gold at incredible rates.  And now that their market will have an official gold exchange like the one that opened in Shanghai last year, the precious metal will become even more liquid and draw more customers into gold.

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iehi-feed-60279 Sat, 23 Jul 2016 00:32:15 GMT Denmark Faces ‘Out of Control' Housing Market http://implode-explode.com/viewnews/2016-07-22_DenmarkFacesOutofControlHousingMarket.html Denmark's biggest mortgage bank is warning there's a risk the housing market may get "out of control," especially around cities, as long-term negative interest rates make borrowers complacent.

"To be concrete, there is a danger that Danes go blind to the risk of rates ever rising again," Tore Stramer, chief analyst at Nykredit in Copenhagen, said in an e-mail. "That raises the risk of a major housing price decline, when rates at some point or other start to rise again."

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With no other country on the planet having experienced negative rates longer than Denmark, the distortions the policy is wreaking may provide a preview of what other economies face should they go down a similar path. Danes can get short-term mortgages at negative interest rates, and pay less to borrow for 30 years than the U.S. government.

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iehi-feed-60276 Fri, 22 Jul 2016 00:08:17 GMT Toga! Toga! Toga! - Jared Dillon http://implode-explode.com/viewnews/2016-07-21_TogaTogaTogaJaredDillon.html Both candidates for [U.S.] president have increasingly grandiose visions for the sorts of things government should do, and I don't see any scenario in 2017 where the deficit doesn't widen sharply.

... the debt problem is most acute in Japan, obviously, where debt to GDP is now about 240%. Japan was insolvent at a debt-to-GDP ratio of 120%, so the rest is just gravy... What if the Ministry of Finance simply defaults to the BOJ?... This is in fact being seriously considered... Think about it: back when we started doing QE, people were freaking out about what would happen when the Fed sold bonds back into the market. That was never going to happen--that was never the intent at all.

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So if debt doesn't matter and we're going to build roads and trains and bridges to nowhere, it means that shorting this market is a huge waste of time. It will end badly someday, but keep in mind that people have been predicting disaster for the last 45 years, when Nixon took us off gold. We could have 15 more years of this crap... The obvious trade here is gold...''

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iehi-feed-60273 Thu, 21 Jul 2016 22:27:34 GMT Chinese Company Midea Now Owns 85 Percent of German Robotics Company http://implode-explode.com/viewnews/2016-07-21_ChineseCompanyMideaNowOwns85PercentofGermanRoboticsCompany.html iehi-feed-60272 Thu, 21 Jul 2016 17:56:58 GMT Caribbean Dream: Cuba Legalizes Small and Medium Private Business http://implode-explode.com/viewnews/2016-07-21_CaribbeanDreamCubaLegalizesSmallandMediumPrivateBusiness.html iehi-feed-60270 Thu, 21 Jul 2016 13:42:34 GMT U.S. Links Malaysian Prime Minister to Millions Stolen From Development Fund http://implode-explode.com/viewnews/2016-07-21_USLinksMalaysianPrimeMinistertoMillionsStolenFromDevelopmentFund.html The Justice Department filed lawsuits Wednesday to seize assets that it said were the result of $3.5 billion that was misappropriated from 1Malaysia Development Bhd., or 1MDB, a fund set up by Prime Minister Najib Razak in 2009 to boost the Malaysian economy.

The move sets up a rare confrontation between U.S. prosecutors and an important partner in the fight against terrorism. The moderate Muslim nation is also a counterpoint to China's rising ambitions in Asia.

Among the Justice Department's assertions: That some $1 billion originating with 1MDB was plowed into hotels; luxury real estate in Manhattan, Beverly Hills and London; fine art; a private jet and the 2013 film "The Wolf of Wall Street." Among those behind the spending, the lawsuit alleges, was Riza Aziz, stepson of Mr. Najib.

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The complaint reveals previously unknown allegations about the money that flowed into Mr. Najib's accounts, such as how prosecutors believe a Saudi prince acted as an intermediary for some of the money and the exact circuit funds followed between a handful of key offshore companies.

Mr. Najib has been at the center of the scandal surrounding 1MDB since The Wall Street Journal reported more than a year ago that hundreds of millions of dollars that originated with 1MDB flowed into his personal bank account. Mr. Najib has said he had done nothing wrong and that any suggestions of wrongdoing were political smears.

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iehi-feed-60268 Thu, 21 Jul 2016 00:35:12 GMT European Union: CETA trade deal with Canada in peril as German party to sue EU http://implode-explode.com/viewnews/2016-07-20_EuropeanUnionCETAtradedealwithCanadainperilasGermanpartytosueEU.html Centre-left Die Linke has launched legal action to block the controversial Comprehensive Economic and Trade Agreement (CETA) pact, saying it is unconstitutional under German law. 

The party's attempt to torpedo the hated deal is just the latest in a series of devastating trade blows for the EU, which is unravelling following the Brexit vote. 

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Earlier this month Canada's despairing Trade Minister Chrystia Freeland asked: "If the EU cannot do a deal with Canada, I think it is legitimate to say who the heck can it do a deal with?"

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Negotiations over the Transatlantic Trade and Investment Partnership (TTIP) have ground to a halt, with impatient American officials warning Brussels to stop dragging their heels.

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Britain will not be affected by either calamity after voting to leave the EU, and is now free to begin informal talks on sealing its own trade deals with Canada, the US and the rest of the world.

Theresa May has set up an independent trade department, headed by Dr Liam Fox, which has already been inundated requests for free trade agreements from the biggest economies across the globe.

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iehi-feed-60267 Wed, 20 Jul 2016 22:34:55 GMT The financial system is breaking down at an unimaginable pace http://implode-explode.com/viewnews/2016-07-20_Thefinancialsystemisbreakingdownatanunimaginablepace.html iehi-feed-60266 Wed, 20 Jul 2016 21:48:32 GMT HSBC Global Head Of FX Cash Trading Arrested At JFK Airport http://implode-explode.com/viewnews/2016-07-20_HSBCGlobalHeadOfFXCashTradingArrestedAtJFKAirport.html iehi-feed-60264 Wed, 20 Jul 2016 14:10:10 GMT These Sicilian Mortgages Show How Difficult It Is to Rescue Italian Banks http://implode-explode.com/viewnews/2016-07-20_TheseSicilianMortgagesShowHowDifficultItIstoRescueItalianBanks.html A court may auction the loan collateral and use the proceeds to pay the bonds, but that is a slow process. Italy is almost as well known these days for its sluggish and cumbersome insolvency procedures as it is for the Leaning Tower of Pisa or the AC Milan soccer club. Italian bankruptcy proceedings last an average of 7.8 years, compared to an average of just over two years for the rest of Europe... the thus-far glacial pace of cash collections from NPLs has resulted in multiple credit ratings downgrades for the Island Refinancing deal...

Last week [Fitch] affirmed its previous ratings and said it expects slow collections will result in the default of the 60 million-euro ($66.4 million) class C notes and the write-down of the 32 million-euro class D notes with zero recovery forecast.

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iehi-feed-60263 Wed, 20 Jul 2016 13:57:28 GMT The 28 Pages that Damn Saudi Arabia http://implode-explode.com/viewnews/2016-07-20_The28PagesthatDamnSaudiArabia.html iehi-feed-60260 Tue, 19 Jul 2016 23:45:32 GMT Uruguay's Victory Over Philip Morris Will Change The World http://implode-explode.com/viewnews/2016-07-19_UruguaysVictoryOverPhilipMorrisWillChangeTheWorld.html iehi-feed-60258 Tue, 19 Jul 2016 18:40:51 GMT US Futures Dip, European Stocks Slide After EU Court Slams Italian Bank Bailout Hopes http://implode-explode.com/viewnews/2016-07-19_USFuturesDipEuropeanStocksSlideAfterEUCourtSlamsItalianBankBailo.html "Burden-sharing by shareholders and subordinated creditors as a prerequisite for the authorization, by the commission, of state aid to a bank with a shortfall is not contrary to EU law," according to the EU Court of Justice. The Luxembourg-based court's decision is binding and can't be appealed. The European Commission, which checks whether state aid violates EU rules, welcomed the ruling, which it said "confirms the commission's current case practice and application of EU state aid rules to the banking sector." The ruling also made the case for a bailout as opposed to a bail in more difficult and Italian banks dropped after the decision with Banca Monte dei Paschi declining as much as 7.1%. UniCredit SpA slipped 3.2% in early trading, while Intesa Sanpaolo SpA decreased 2.5%. 

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As a result, some wondered if the hopium inspired rally is finally coming to an end: "The market is taking a pause," said Tony Farnham, a strategist at Paterson Securities in Sydney. "There isn't much of a catalyst out there. People are starting to question if there's still value in the market following the post-Brexit rally."

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iehi-feed-60257 Tue, 19 Jul 2016 18:39:04 GMT Brexit throws 'spanner in the works' of global growth: IMF http://implode-explode.com/viewnews/2016-07-19_BrexitthrowsspannerintheworksofglobalgrowthIMF.html Instead of predicting 3.2% growth in 2016, the IMF's World Economic Outlook (WEO) now expects only 3.1%... "The real effects of Brexit will play out gradually over time, adding elements of economic and political uncertainty that could be resolved only after many months.

"This overlay of extra uncertainty, in turn, may open the door to an amplified response of financial markets to negative shocks."

The IMF has produced two other set of predictions, a "moderately worse" one, and another that is "much worse", depending on how hard the UK finds it to re-establish trading relations with the EU and the rest of the world.

The "much worse" scenario would see global growth slow to 2.8% this year and next.''

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