Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-62666 Wed, 26 Jul 2017 18:46:47 GMT US sanctions have taken a big bite out of Russia's economy http://implode-explode.com/viewnews/2017-07-26_USsanctionshavetakenabigbiteoutofRussiaseconomy.html iehi-feed-62665 Wed, 26 Jul 2017 18:45:06 GMT BoAML says there are more 'zombie' companies in Europe now than pre-Lehman times http://implode-explode.com/viewnews/2017-07-26_BoAMLsaystherearemorezombiecompaniesinEuropenowthanpreLehmantime.html iehi-feed-62664 Wed, 26 Jul 2017 15:35:06 GMT Bolivia's President Declares 'Total Independence' from World Bank and IMF http://implode-explode.com/viewnews/2017-07-26_BoliviasPresidentDeclaresTotalIndependencefromWorldBankandIMF.html iehi-feed-62663 Wed, 26 Jul 2017 15:07:26 GMT Take money out of US, says Russell Investments top forecaster http://implode-explode.com/viewnews/2017-07-26_TakemoneyoutofUSsaysRussellInvestmentstopforecaster.html iehi-feed-62662 Wed, 26 Jul 2017 15:02:21 GMT How Big Of A Deleveraging Are We Talking About? http://implode-explode.com/viewnews/2017-07-26_HowBigOfADeleveragingAreWeTalkingAbout.html When credit creation can no longer be sustained the markets will begin to "clear" the excesses. It is only then, and must be allowed to happen, can resources be reallocated back towards more efficient uses. This is why all the efforts of Keynesian policies to stimulate growth in the economy have ultimately failed. Those fiscal and monetary policies, from TARP and QE to tax cuts, only delay the clearing process. Ultimately, that delay only potentially worsens the inevitable clearing process.

That clearing process is going to be very substantial. With the economy currently requiring roughly $3 of debt to create $1 of real, inflation-adjusted, economic growth, a reversion to a structurally manageable level of debt would involve a nearly $35 Trillion reduction of total credit market debt from current levels. 

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iehi-feed-62660 Wed, 26 Jul 2017 14:24:18 GMT Australian housing market at risk of crash: UBS http://implode-explode.com/viewnews/2017-07-26_AustralianhousingmarketatriskofcrashUBS.html iehi-feed-62655 Tue, 25 Jul 2017 22:25:15 GMT Not-So-Honest Abe http://implode-explode.com/viewnews/2017-07-25_NotSoHonestAbe.html iehi-feed-62654 Tue, 25 Jul 2017 22:21:44 GMT Bank of England warns of complacency over big rise in personal debt http://implode-explode.com/viewnews/2017-07-25_BankofEnglandwarnsofcomplacencyoverbigriseinpersonaldebt.html In its toughest warning yet about the possibility of a rerun of the financial crisis that devastated the economy 10 years ago, Threadneedle Street admitted it was alarmed about the increase in the amount of money being borrowed on easy terms over the past year.

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Over the past year, Brazier said, household incomes had grown by just 1.5% but outstanding car loans, credit card balances and personal loans had risen by 10%.

He added that terms and conditions on credit cards and personal loans had become easier. The average advertised length of 0% credit card balance transfers had doubled to close to 30 months, while advertised interest rates on £10,000 personal loans had fallen from 8% to around 3.8%, even though official interest rates had barely changed.

The past decade has seen the number of cars bought with a personal contract purchase (PCP) plan -- under which the car is effectively leased -- increase from one in five to four in five. Companies risk losing money if used car prices fall and Brazier said banks involved and the shareholders of car companies would "want to think very carefully about the risks".

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iehi-feed-62653 Tue, 25 Jul 2017 22:19:49 GMT EU divided on how to answer Congress' sanctions bill against Russia http://implode-explode.com/viewnews/2017-07-25_EUdividedonhowtoanswerCongresssanctionsbillagainstRussia.html A bill agreed by U.S. Senate and House leaders foresees fines for companies aiding Russia to build energy export pipelines. EU firms involved in Nord Stream 2, a 9.5 billion euro ($11.1 billion) project to carry Russian gas across the Baltic, are likely to be affected.

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Markus Beyrer, director of the EU's main business lobby, Business Europe, urged Washington to "avoid unilateral actions that would mainly hit the EU, its citizens and its companies".

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The Commission could demand a formal U.S. promise to exclude EU energy companies; use EU laws to block U.S. measures against European entities; or impose outright bans on doing business with certain U.S. companies, an EU official said.

But if no such promise is offered, punitive sanctions such as limiting the access of U.S. companies to EU banks require unanimity from the 28 EU member states.

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Meanwhile there is little or no sign that the Western sanctions have had any tangible effect in Ukraine, as the Russian-backed rebellion in the country's industrial east continues unabated.

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iehi-feed-62652 Tue, 25 Jul 2017 16:43:45 GMT GM shares hurt as investors question whether automaker can deal with slowing US market http://implode-explode.com/viewnews/2017-07-25_GMshareshurtasinvestorsquestionwhetherautomakercandealwithslowin.html iehi-feed-62651 Tue, 25 Jul 2017 16:42:09 GMT China Builds Cinema on disputed island http://implode-explode.com/viewnews/2017-07-25_ChinaBuildsCinemaondisputedisland.html iehi-feed-62649 Tue, 25 Jul 2017 02:02:52 GMT Japan's sex problem might be due to the gig economy http://implode-explode.com/viewnews/2017-07-24_Japanssexproblemmightbeduetothegigeconomy.html Anne Allison, a professor of cultural anthropology at Duke University in North Carolina, said the reason could be that men are finding it harder to find well paying jobs which enable them to support a family.

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In a society where women are still expected to give up work when they marry, and where sex outside marriage remains taboo, men are increasingly finding it hard to find stable work. 

Despite the country having an unemployment rate of under 3 per cent, and a notorious "salaryman" culture where people work at the same company for decades, among the younger generation there has been a huge rise in the number of irregular workers. 

According to Jeff Kingston, a professor at Temple University Japan campus, around 40 per cent of the modern Japanese workforce are in low-paid "irregular" jobs and only about 20 per cent of these workers can expect to have a stable career.

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iehi-feed-62642 Mon, 24 Jul 2017 15:10:43 GMT A coup in the House of Saud? http://implode-explode.com/viewnews/2017-07-24_AcoupintheHouseofSaud.html What has been an open secret across the Arab world is not a secret anymore even in the US: What happened last month in the deep recesses of the House of Saud with the ascension of Crown Prince Mohammad bin Salman, aka MBS, was in fact a white coup.

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Now, almost a month later, confirmation of the white coup/regime change in Riyadh has been splashed on the front page of The New York Times, attributed mainly to the proverbial "current and former United States officials".

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iehi-feed-62641 Sun, 23 Jul 2017 13:32:40 GMT German Automaker Emissions-Evasion Scandal Morphs and Expands to Antitrust http://implode-explode.com/viewnews/2017-07-23_GermanAutomakerEmissionsEvasionScandalMorphsandExpandstoAntitrus.html Growing awareness of the harmful effects of diesel fumes has prompted European cities to consider bans of diesel cars and has led consumers to reject cars with diesel engines, a largely German innovation that traditionally accounted for half the market.

The backlash could take on a new, far broader dimension if it turns out that the excess emissions were the result of illegal collusion by a de facto cartel. The investigation could also lead to billions of euros in fines.

In a statement on Saturday, the European Commission partially confirmed a report in Germany's Der Spiegel magazine that said the authorities were investigating evidence that representatives of the automakers met regularly to agree on technical specifications for everything from brakes to clutches to emissions systems. The collusion began in the mid-1990s and continued until recently, according to Der Spiegel, which said it had seen documents that were part of an antitrust investigation.

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In 2006, according to the magazine, the German carmakers agreed to limit the size of the tanks used to hold a chemical solution that helps neutralize diesel emissions. Volkswagen and its Audi division have previously admitted in court documents that the tanks they installed in their cars did not hold enough of the solution, known as AdBlue, to last between oil changes. The company did not want the tanks to take space from the cars' sound systems, according to a criminal complaint against an Audi engineer filed earlier this month in the United States.

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iehi-feed-62639 Sat, 22 Jul 2017 16:15:24 GMT Jared Kushner's White House connection still being used to lure Chinese investors http://implode-explode.com/viewnews/2017-07-22_JaredKushnersWhiteHouseconnectionstillbeingusedtolureChineseinve.html iehi-feed-62637 Sat, 22 Jul 2017 15:30:32 GMT Bank of America picks Dublin for EU base following Brexit http://implode-explode.com/viewnews/2017-07-22_BankofAmericapicksDublinforEUbasefollowingBrexit.html iehi-feed-62635 Sat, 22 Jul 2017 12:28:28 GMT Bond Boom Fizzles Out Amidst Uncertainty; Low Volumes http://implode-explode.com/viewnews/2017-07-22_BondBoomFizzlesOutAmidstUncertaintyLowVolumes.html Dhaval Joshi, chief European investment strategist at BCA Research, said the bond boom had come to an end as the fog around the course of interest rates, made worse by Brexit and the election of Donald Trump, intensified.

"When the Federal Reserve signalled that it would begin to raise interest rates, it changed the story. Since then there hasn't been a clear path," he said.

Major bond investors got burned by this turn of events and while their initial reaction was to instruct the banks to switch their portfolios -- prompting a rise in trading fees -- they are now reluctant to take big bets.

Joshi says the long-run trend for low inflation and low interest rates is about to reassert itself. This might mean a few more fees for the bank's bond departments as asset managers adjust their holdings again. But in the longer term, it means a loss of business as investors go back to just holding long-term positions.

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iehi-feed-62633 Sat, 22 Jul 2017 00:07:28 GMT Bill Gross worried that central banks will lead world into recession http://implode-explode.com/viewnews/2017-07-21_BillGrossworriedthatcentralbankswillleadworldintorecession.html iehi-feed-62632 Fri, 21 Jul 2017 23:41:56 GMT Walking-Back Tough Talk, Draghi Holds on to Central Bank Easing-Baton Yet Longer http://implode-explode.com/viewnews/2017-07-21_WalkingBackToughTalkDraghiHoldsontoCentralBankEasingBatonYetLong.html The European Central Bank left its ultra-easy monetary policy stance unchanged as expected on Thursday, keeping rates at record lows and even leaving the door open to more asset buys if the outlook worsens.

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He stressed that the bank's governing council were unanimous both on the decision to keep its guidance unchanged and to avoid setting a precise date for a discussion of future policy, noting only that it would occur in the autumn.

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Still, the ECB is unable to kick the can down the road indefinitely as its asset buys are set to run until the end of the year and policymakers argue that a decision on an extension or a gradual wind down must be taken in September or October.

This has no doubt been a force behind gold and silver (and maybe bitcoin?) in the last day...

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iehi-feed-62631 Fri, 21 Jul 2017 22:34:00 GMT Why did Deutsche Bank give Donald Trump loans when no one else would trust him? http://implode-explode.com/viewnews/2017-07-21_WhydidDeutscheBankgiveDonaldTrumploanswhennooneelsewouldtrusthim.html