Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-59899 Sat, 28 May 2016 14:24:15 GMT The secret life of Kim Jong Un's aunt, who has lived in the U.S. since 1998 http://implode-explode.com/viewnews/2016-05-28_ThesecretlifeofKimJongUnsauntwhohaslivedintheUSsince1998.html A 60-year-old Korean woman with a soft perm and conservative clothes, she's taking a weekend off from pressing shirts and hemming pants at the dry-cleaning business she runs with her husband.

But she's not just any immigrant. She's an aunt to Kim Jong Un, the young North Korean leader who has threatened to wipe out New York with a hydrogen bomb.

And for the past 18 years, since defecting from North Korea into the waiting arms of the CIA, she has been living an anonymous life here in the United States, with her husband and three children.

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iehi-feed-59898 Sat, 28 May 2016 14:18:15 GMT Russian President Vladimir Putin Aims to Renew Ties During Visit to Greece http://implode-explode.com/viewnews/2016-05-28_RussianPresidentVladimirPutinAimstoRenewTiesDuringVisittoGreece.html Talks focused on trade and investment, in particular in energy and transport, and the Russian president openly expressed his country's interest in taking part in the potential privatization of Greek rail assets and the port of Thessaloniki, a major gateway into the Balkans.

Greece and Russia have flirted with the idea of Athens participating in a pipeline project that would bring Russian gas into Europe via Greece, though little progress was immediately expected.

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Greece has kept close relations with Moscow even after the EU imposed economic sanctions in the summer of 2014 in response to Russia's annexation of Ukraine's Crimea region and its support for separatists in eastern Ukraine. Russia has denied Western charges that it supplied and directed the rebels.

"Greece has repeatedly said that the vicious circle of sanctions is not productive," the Greek Prime Minister said, but added Greece will stick to the commitments it has as a member of the European Union.

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iehi-feed-59897 Sat, 28 May 2016 14:13:46 GMT The Shift to a Cashless Society is Snowballing http://implode-explode.com/viewnews/2016-05-28_TheShifttoaCashlessSocietyisSnowballing.html iehi-feed-59895 Sat, 28 May 2016 00:30:46 GMT The Great Race: USA, Germany, Japan All Have Negative Real 10 Year Sovereign Yields http://implode-explode.com/viewnews/2016-05-27_TheGreatRaceUSAGermanyJapanAllHaveNegativeReal10YearSovereignYie.html iehi-feed-59893 Fri, 27 May 2016 14:40:20 GMT Japan "Already Doing Helicopter Money"; "Yen At Great Risk": Noguchi http://implode-explode.com/viewnews/2016-05-27_JapanAlreadyDoingHelicopterMoneyYenAtGreatRiskNoguchi.html iehi-feed-59891 Fri, 27 May 2016 14:30:26 GMT Duncan: China's Boom Ended in 2015; Protracted Slump Ahead (Video) http://implode-explode.com/viewnews/2016-05-27_DuncanChinasBoomEndedin2015ProtractedSlumpAheadVideo.html iehi-feed-59885 Thu, 26 May 2016 14:55:28 GMT Bigger Than All The World's QE's Combined http://implode-explode.com/viewnews/2016-05-26_BiggerThanAllTheWorldsQEsCombined.html iehi-feed-59884 Thu, 26 May 2016 14:52:21 GMT Greece is Being Looted, Despite IMF "Agreement" - Paul Craig Roberts http://implode-explode.com/viewnews/2016-05-26_GreeceisBeingLootedDespiteIMFAgreementPaulCraigRoberts.html iehi-feed-59883 Thu, 26 May 2016 11:14:42 GMT IMF: No Cash Now for Greece Because Europe Hasn't Promised Debt Relief http://implode-explode.com/viewnews/2016-05-26_IMFNoCashNowforGreeceBecauseEuropeHasntPromisedDebtRelief.html A senior International Monetary Fund official Wednesday said it can't help Europe with fresh emergency financing for Greece because Athens's creditors haven't yet committed to detailed debt relief.

The comments show that the agreement touted by European finance ministers last night to release fresh bailout cash for Greece hasn't nailed down the key elements the IMF says are critical to finally return the debt-laden country to health. Rather, the IMF's reserved support for the deal has paved the way for Germany to approve new funds and sets the stage for more tough negotiations later this year.

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Many outside economists see the deal as papering over the differences and once again prolonging the crisis.

"Summary of Eurogroup: Germany always wins, IMF caves under pressure from Germany and U.S., no one does what's in Greece's best interests," said Megan Greene, chief economist at Manulife and John Hancock Asset Management, in a tweet.

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iehi-feed-59882 Thu, 26 May 2016 00:44:53 GMT The Fed Setting Up For A U.S. Dollar Collapse If No June Rate Hike http://implode-explode.com/viewnews/2016-05-25_TheFedSettingUpForAUSDollarCollapseIfNoJuneRateHike.html

The U.S. dollar index has bounced from its 15-month low on May 3, thanks to Fed officials talking up rate hikes and thereby propping up the U.S. dollar, referred to as a "Fed Dollar Put". The Fed may have already painted itself into a corner, even as job growth is decelerating, core inflation is trending downward, and the U.S. economy may be one step closer to a recession, as seen by the yield spread between the 10-year and 2-year U.S. Treasury Notes.

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Many economists may not be aware that the S&P 500 Utilities sector is now trading near its all-time high, as money has rotated into safe-havens. The last time Utilities outperformed the broader market, the U.S. economy entered into a recession 12 months later.

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iehi-feed-59880 Wed, 25 May 2016 23:35:59 GMT Precious Metals: Fake-Rally Ends, Hostage Markets Return http://implode-explode.com/viewnews/2016-05-25_PreciousMetalsFakeRallyEndsHostageMarketsReturn.html In the real world, the quantity of investment dollars going into silver is roughly parallel to the quantity of dollars going into gold. Had a similar ratio of investor dollars entered the bankers "paper bullion" markets the price of silver would have had to rise roughly 20 times faster/higher than the price of gold during this supposed rally.

The notion, in this "precious metals rally", that no one was buying silver is patently absurd. The price of silver during most of this fake-rally wasn't merely improbable, it was impossible.

... the Big Bank crime syndicate remains totally in control of what we call our "markets" (for lack of a better word). Currency prices remain fixed (rigged). Equity market prices remain fixed (rigged). Bond market prices remain fixed (rigged). Are we to believe that the banksters simply 'forgot' to continue their precious metals price-fixing -- even as the mainstream media was shouting the word "rally" at the top of its lungs?

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The current eight-year, bubble-and-crash cycle manufactured by the Big Banks is nearing its end. When this Next Crash is detonated, this crime syndicate obviously doesn't want precious metals to stand out as "safe havens" -- as all of their corrupt, paper assets are plunging in value. The problem: with gold and silver already at rock-bottom prices at the beginning of 2016, it would have been very difficult to crash those markets (along with everything else). Thus the banksters need to march gold and silver prices higher, to some modest level, before they were set up to be crashed along with all other asset classes.

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iehi-feed-59878 Wed, 25 May 2016 16:48:05 GMT Eurozone hails 'breakthrough' with Greece, IMF debt deal http://implode-explode.com/viewnews/2016-05-25_EurozonehailsbreakthroughwithGreeceIMFdebtdeal.html The euro zone gave Greece its firmest offer yet of debt relief in what finance ministers called a breakthrough deal that won a commitment from the IMF finally to return to taking part in the bailout for Athens.

After talks that lasted into the small hours of Wednesday, the Eurogroup ministers gave a nod to releasing 10.3 billion euros (£8 billion) in new funds for Greece in recognition of painful fiscal reforms pushed through by Prime Minister Alexis Tsipras's leftist-led coalition, subject to some final technical tweaks.

But a bigger step forward was a deal by which the euro zone agreed to offer Athens debt relief in 2018 if that is necessary to meet agreed criteria on its payments burden. That was enough to secure an agreement from the International Monetary Fund to again join the euro zone in funding the bailout of Greece.

... the Fund made a big concession by agreeing that the debt relief would only be finally decided in 2018, rather than up-front, as was the IMF's initial position.

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iehi-feed-59877 Wed, 25 May 2016 16:41:06 GMT SWIFT Announces New Security Plan To Combat High-Level Bank Heists http://implode-explode.com/viewnews/2016-05-25_SWIFTAnnouncesNewSecurityPlanToCombatHighLevelBankHeists.html To help repair its damaged reputation, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) announced on Tuesday (May 24) that it plans to launch a new security plan to help combat ongoing bank heists.

Reuters reported that SWIFT CEO Gottfried Leibbrandt confirmed the global interbank messaging system will introduce a new five-point plan this week. During a financial services conference in Brussels, Leibbrandt also noted that the Bangladesh Bank heist was a "watershed event for the banking industry."

"There will be a before and an after Bangladesh. The Bangladesh fraud is not an isolated incident ... This is a big deal. And it gets to the heart of banking," he continued.''

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iehi-feed-59876 Wed, 25 May 2016 14:29:23 GMT Donald Trump is going to win: This is why Hillary Clinton can't defeat what Trump represents http://implode-explode.com/viewnews/2016-05-25_DonaldTrumpisgoingtowinThisiswhyHillaryClintoncantdefeatwhatTrum.html iehi-feed-59873 Tue, 24 May 2016 17:55:52 GMT US court re-opens door to private Libor claims http://implode-explode.com/viewnews/2016-05-24_UScourtreopensdoortoprivateLiborclaims.html US appeals court has opened the door for more claims against the big banks for rigging benchmark interest rates, by overturning a three-year-old ruling which threw out a host of private antitrust-related lawsuits.

Monday's decision by the 2nd US Circuit Court of Appeals in Manhattan could be a setback for the likes of Bank of America, JPMorgan Chase and Citigroup, which had hoped that most of the wave of post-crisis litigation was behind them.

The decision reverses a lower court decision from 2013, in which US District Judge Naomi Reice Buchwald dismissed claims on the grounds that the plaintiffs had failed to plead antitrust injury.

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The lawsuits had accused 16 major banks of collusion in manipulating the London interbank offered rate, or Libor, which approximates the average rate at which a select group of banks can borrow money. Beginning in 2007, the plaintiffs argued, the banks engaged in a horizontal price-fixing conspiracy, with each submitting an artificially low cost of borrowing US dollars in order to drive Libor down.

... the appeals court on Monday disagreed and sent the case back to the lower court for further proceedings. A three-judge panel found that price-fixing was an antitrust violation in itself, and therefore needed no separate plea of harm.

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In its verdict, the appeals court panel made use of damning extracts from banks' chat rooms, which emerged as evidence collected in governmental investigations. In one, one RBS trader gloated: "It's just amazing how Libor fixing can make you that much money . . . it's a cartel now in London."

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iehi-feed-59870 Tue, 24 May 2016 17:38:49 GMT Hillary Pimped Fracking http://implode-explode.com/viewnews/2016-05-24_HillaryPimpedFracking.html iehi-feed-59869 Tue, 24 May 2016 16:17:22 GMT Negative Rates Prompt Japan Banks to Seek Protection Via Derivatives http://implode-explode.com/viewnews/2016-05-24_NegativeRatesPromptJapanBankstoSeekProtectionViaDerivatives.html Japanese banks are getting hurt as the negative-rate policy compresses their lending margins, with the top-three firms including Mitsubishi UFJ Financial Group Inc. forecasting this month that net income will fall a combined 5.2 percent in the year started April 1. The BOJ's radical stimulus has already dragged yields on more than 70 percent of Japanese government bonds to below zero, meaning that investors will have to effectively pay a fee to hold such debt to maturity.

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Companies that borrow at floating rates may also be able to use floor options to ensure that interest-rate swaps they use to hedge against rising rates don't end up costing them due to negative rates, Takahashi said. Actual trades of such derivatives are still not that common because the contracts are expensive to buy now, he said.

"It will be hard to price these options unless we get more liquidity," said Tateo Komatsu, a deputy general manager of global markets at Sumitomo Mitsui Trust Bank Ltd. "It will take time for the market to get used to minus rates."

There's no free lunch, so it's not exactly clear how these options will spare banks the pain. After all, options cost something.

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iehi-feed-59867 Tue, 24 May 2016 16:12:33 GMT Coppola: IMF Predicts Unemployment In Greece Will Fall To 12 Percent....By 2040 http://implode-explode.com/viewnews/2016-05-24_CoppolaIMFPredictsUnemploymentInGreeceWillFallTo12PercentBy2040.html iehi-feed-59865 Tue, 24 May 2016 15:56:29 GMT The IMF and calling Berlin's bluff over Greece http://implode-explode.com/viewnews/2016-05-24_TheIMFandcallingBerlinsbluffoverGreece.html Pepare for some tense moments in the next few weeks and months as Greece and its creditors struggle to agree the first review of last year's bailout... The International Monetary Fund has concluded that Greek public debt, at 180 per cent of gross domestic product, is unsustainable; as is the agreed annual primary budget surplus, before interest payments, of 3.5 per cent of GDP. The fund insists on debt relief, but Germany resists.

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In private, senior German government officials agree that Athens needs debt relief. They are not blind. But they are trapped in the lie that Greece is solvent, which is what their own backbenchers were told. Without that lie, Greece would no longer be a eurozone member. But the lie cannot be sustained.

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[The IMF] wants to come clean now; or as an official recently told me it wants to regain its lost virginity. In doing so, it would restore its reputation and call Berlin's bluff. There is, of course, a risk this stand-off would trigger another euro­zone crisis. Ms Merkel has good reason not to let the situation escalate.

A Greek debt writedown might not be popular in the Bundestag but another eurozone crisis would be a political disaster for her. It would expose the dishonesty of her eurozone rescue strategy. I see no chance of her risking a Grexit at a point when her deal with Turkey to host refugees who reach Greece is on the verge of collapse.

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My conclusion is that a credible threat by the IMF to pull the plug on its participation in a Greek bailout could force the Europeans, and the Germans in particular, to come clean.

If the Europeans want to continue their path of "extend and pretend", extending the loans and pretending Greece is solvent, so be it. But it should at least be their own money they pour in. In this case they should buy out the IMF bailout loans to Athens, which means taking over the fund's credits to Greece.

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iehi-feed-59862 Mon, 23 May 2016 17:40:51 GMT The "Doom Loop Is Coming Back" - Deutsche Bank http://implode-explode.com/viewnews/2016-05-23_TheDoomLoopIsComingBackDeutscheBank.html