Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-61492 Sun, 15 Jan 2017 23:13:06 GMT Trump Gets Return-Flamed by Entire City After Bashing Atlanta To Get at John Lewis http://implode-explode.com/viewnews/2017-01-15_TrumpGetsReturnFlamedbyEntireCityAfterBashingAtlantaToGetatJohnL.html iehi-feed-61490 Sun, 15 Jan 2017 15:06:55 GMT The President Who Wasn't There: Barack Obama's Legacy of Impotence http://implode-explode.com/viewnews/2017-01-15_ThePresidentWhoWasntThereBarackObamasLegacyofImpotence.html Obama assumed the presidency at a moment when much of the nation seemed ready to confront the unwelcome fact that the American project had derailed.... Corporate capitalism just wasn't delivering the goods anymore. Not for the bottom 80 percent, any way. The economy was in ruins, mired in what appeared to be a permanent recession. The manufacturing sector had been killed from the inside-out, with millions of well-paying jobs outsourced and nothing but dreary service-sector positions to take their place. Chronic long-term unemployment hovered at more than 10 percent, worse, much worse, in black America. Those who clung to their jobs had seen their wages stagnate, their home values shrivel and were suffocating under merciless mounds of debt. Meanwhile, capital moved in ever-tightening circles among a new odious breed of super-rich, making sweat-free billions from the facile movement of money.

...

With his sunny disposition and Prospero-like aptitude for mystification, Obama should have been able to convert [the discontented] or, at least, to roll over them. Instead, they kicked his ass. How? ... Obama's most grievous political wounds were self-inflicted, starting even before his election when he rushed back to Washington to help rescue Bush's Wall Street bailout. This was perhaps the first real indication that the luminous campaign speeches about generational and systemic change masked the servile psyche of a man who was desperately yearning to be embraced by the nation's political and financial elites.

]]>
iehi-feed-61488 Sun, 15 Jan 2017 02:36:53 GMT American Apparel Could Be A Puzzler For Trump: Can He Coerce a Bankrupt Company Bought And Moved Overseas By Foreigners? http://implode-explode.com/viewnews/2017-01-14_AmericanApparelCouldBeAPuzzlerForTrumpCanHeCoerceaBankruptCompan.html Gildan's purchase agreement covers American Apparel's assets, including most of its manufacturing and distribution equipment. Gildan bought American Apparel's existing inventory in a separate deal. But the company has declined the option to assume the leases of two Los Angeles manufacturing facilities that employ nearly 1,300 factory workers.

Gildan also declined the lease on American Apparel's headquarters, which employs nearly 2,200 people. The downtown offices will continue to manage the company's retail operations and website, but in December American Apparel warned all its Los Angeles-area employees that they may lose their jobs. Though the company might retain some operations in the United States, analysts expressed skepticism to the Los Angeles Times that any of American Apparel's current U.S. manufacturing workers would keep their jobs, speculating that Gildan would likely move factory work to its existing facilities in Honduras and the Dominican Republic.

]]>
iehi-feed-61487 Sun, 15 Jan 2017 00:42:05 GMT Why DeLong, Summers, Bernanke, Krugman, Keen, Pettis, Edwards et al. Can't Figure Out "Secular Stagnation" http://implode-explode.com/viewnews/2017-01-14_WhyDeLongSummersBernankeKrugmanKeenPettisEdwardsetalCantFigureOu.html iehi-feed-61486 Sun, 15 Jan 2017 00:13:57 GMT China: No negotiation on 'One China' policy despite Trump remarks http://implode-explode.com/viewnews/2017-01-14_ChinaNonegotiationonOneChinapolicydespiteTrumpremarks.html "The 'One China' principle is the political foundation of Sino-US relations and it is non-negotiable. We urge the relevant side in the US to recognize the high sensitivity of the Taiwan issue and abide by the pledges by successive US administrations from both parties," spokesman Lu Kang said.

He was responding to a question about Trump's remarks Friday in The Wall Street Journal in which he said, "Everything is under negotiation, including 'One China.' "

"The pledges include adopting the 'One China' policy, adhering to the principles in the three Sino-US joint communiques and properly handling the Taiwan issue. Only doing so would prevent the healthy and stable development of Sino-US relations as well as bilateral cooperation in major areas from being affected," Lu added.

...

"There is only one China in the world. Taiwan is an inseparable part of Chinese territory and the People's Republic of China is the sole legitimate government representing China," Lu said. "These are facts recognized by the international community and no one can change this."

This pushback was of course expected. And of course, China is lying -- the U.S. has never agreed to the One-China policy; it has only agreed to respect Taiwan's and China's views (both of which have historically been in agreement that there is "One China", though Taiwan seems to no longer truly hold that conviction); and, rather than being "inseparable", the PRC has never exercised dominion over Taiwan for even a single minute (meanwhile, Taiwan's government has exercised control over the mainland). But, despite being on the side of obvious truth in this case, Trump appears to be heading unwittingly into a diplomatic shredder. This will certainly be interesting.

]]>
iehi-feed-61484 Sat, 14 Jan 2017 15:05:25 GMT Are Investors bracing for a massive stock-market selloff? http://implode-explode.com/viewnews/2017-01-14_AreInvestorsbracingforamassivestockmarketselloff.html Demand for one-month call options tied to the CBOE Volatility Index, a popular gauge of stock-market volatility, has spiked in the past week, a sign that some are bracing for a sharp downturn following the inauguration of President-elect Donald Trump.

...

Since the beginning of the year, stock-market volatility has been relatively subdued despite increasing uncertainty surrounding the future direction of fiscal and monetary policy in the U.S. The Daily Shot, a popular market newsletter, illustrates this divergence in the chart below.

]]>
iehi-feed-61481 Fri, 13 Jan 2017 20:11:08 GMT Chinese state media slams Tillerson over South China Sea (THREATENS SHOOTING WAR) http://implode-explode.com/viewnews/2017-01-13_ChinesestatemediaslamsTillersonoverSouthChinaSeaTHREATENSSHOOTIN.html iehi-feed-61480 Fri, 13 Jan 2017 19:41:52 GMT JPMorgan, BofA make out like a bandits on post-Trump market surge http://implode-explode.com/viewnews/2017-01-13_JPMorganBofAmakeoutlikeabanditsonpostTrumpmarketsurge.html JPMorgan Chase & Co reported a 24 percent rise in fourth-quarter profits on Friday, beating analyst expectations, as its Wall Street business benefited from a surge in trading activity following the U.S. election... [ex-tax adjustments] the bank earned $1.58 per share, well above the average analyst estimate of $1.44 per share...

Revenue from fixed-income trading -- JPMorgan's most volatile business -- rose 31 percent to $3.4 billion, while stock trading revenue increased 8 percent to $1.2 billion. Bank of America Corp (BAC.N), which reported results earlier on Friday, also said trading revenue surged last quarter.

Here's a piece on BofA, to the same effect.

]]>
iehi-feed-61479 Fri, 13 Jan 2017 19:37:51 GMT Do Russians Really Have Something on Trump? Israelis Have Apparently Been Convinced So... http://implode-explode.com/viewnews/2017-01-13_DoRussiansReallyHaveSomethingonTrumpIsraelisHaveApparentlyBeenCo.html Ynet in Israel is reporting that Israeli intelligence officials are deciding not to share intelligence with the incoming Trump administration. The report indicates they came to this conclusion after a recent meeting with American intelligence officials, who told them the Russians have "leverages of pressure" to use against Trump.

This is an extraordinary story. If our intelligence community really believes this, then playtime is over.

No more Clapper-style hedging or waffling. If Israel gets to hear why they think Trump is compromised, how is the American public not also so entitled?

But if all they have are unverifiable rumors, they can't do this, not even to Donald Trump.

The only solution is an immediate unveiling of all the facts and an urgent public investigation. A half-assed whispering campaign a week and a half from a Trump presidency, with BuzzFeed at the center of the action, isn't going to cut it. We need to know what the likes of Clapper and Comey know, and we need it all now, before it's too late.

]]>
iehi-feed-61478 Fri, 13 Jan 2017 17:33:07 GMT Core Retail Sales Growth Weakest In Almost 3 Years (CONTRADICTING NRF'S RAH-RAH REPORT) http://implode-explode.com/viewnews/2017-01-13_CoreRetailSalesGrowthWeakestInAlmost3YearsCONTRADICTINGNRFSRAHRA.html Earlier this week Bank of America warned that December retail sales could come in weaker than expected, when it looked at its internal credit and debt card spending data and found a 1.0% drop. Moments ago the official data released from the Dept of Commerce confirmed that once again BofA was right, when it announced that in December, US retail spending rose 0.6%, below the expected 0.7%, however much of this was thanks to spending on cars and gas. If one excludes autos, the rise was only 0.2%, below the 0.5% expected, and if one also excludes gas, there was no increase in spending in December whatsoever.

Meanwhile, the National Retail Federation is in full-on party-hats mode, trumpeting Holiday Sales Outpace Forecast Despite Department-Store Woes. We have a guess at what the true reality is...

]]>
iehi-feed-61471 Thu, 12 Jan 2017 18:05:51 GMT Le Pen Spotted at Trump Tower During Unannounced New York Visit http://implode-explode.com/viewnews/2017-01-12_LePenSpottedatTrumpTowerDuringUnannouncedNewYorkVisit.html French National Front leader Marine Le Pen was spotted at Trump Tower during an unannounced visit to New York less than four months before France's presidential election.

An aide to Le Pen, who leads in the latest opinion poll for the presidency, declined to comment on her reason for being in the lobby of the building on Thursday. Le Pen waved off reporters when approached.

Donald Trump had no plans to meet with Le Pen, according to an aide to the president-elect, who asked not to be identified without authorization to speak publicly. Neither is she on Trump chief strategist Steve Bannon's schedule, a person familiar said. Le Pen's campaign chief of staff, David Rachline, said earlier that she was making a private visit to New York.

]]>
iehi-feed-61469 Thu, 12 Jan 2017 15:50:44 GMT Amazon "to Create 100,000 New Jobs in U.S. in Next 18 Months" http://implode-explode.com/viewnews/2017-01-12_AmazontoCreate100000NewJobsinUSinNext18Months.html "It's a very powerful headline, and the timing certainly makes Trump look good," said Ivan Feinseth, an analyst at Tigress Financial Partners LLC. "It's going to happen in the first year and half of his administration. Bezos couldn't have set him up any better to look good -- timing is everything."

...

Amazon's move could do less to help the U.S. economy than is immediately apparent. Research groups have argued that the company kills more jobs than it creates because it has disrupted the traditional retail industry. Critics also say tax breaks and other incentives that have helped fuel Amazon's warehouse growth weren't worth the investment because they create mostly low-wage jobs, many of them temporary.

Over the past five years, Amazon says it has created more than 150,000 jobs in the U.S., growing its workforce in the country to 180,000 at the end of last year. Amazon businesses like Marketplace and Amazon Flex will also create hundreds of thousands of jobs for people who want the flexibility to be an entrepreneur and set their own schedule, the Seattle-based company said.

]]>
iehi-feed-61468 Thu, 12 Jan 2017 15:41:47 GMT Central Bank Cites Security Threat in India Cash Ban Decision Mystery http://implode-explode.com/viewnews/2017-01-12_CentralBankCitesSecurityThreatinIndiaCashBanDecisionMystery.html The cloak of secrecy that has shrouded the currency ban decision is likely to bolster the view that authorities, both on Mint Street and in New Delhi, were not prepared for such a decision and the way it was announced. It risks undermining perceptions of the central bank's independence and raises questions about Modi's decision-making style and his communication with the RBI.

...

The RBI also claimed exemptions on two questions seeking detail on its preparations for the demonetization and studies it used to forecast the impact of the move. Sharing these "sensitive matters" would endanger India's sovereignty, integrity and security, according to the RBI

The use of those specific exemptions are "perplexing," Capital Economics's Shah said. Shailesh Gandhi, a former bureaucrat with the Central Information Commission, told the FirstPost website on Dec. 31 that the RBI's attitude of stonewalling smacked of "sheer arrogance."

"What the RBI is doing by refusing to answer queries under RTI is denying citizens their fundamental rights," Gandhi said.

...

The move to ban high currency bank notes was an economic disaster with the worst yet to come, Former Prime Minister Manmohan Singh told a gathering of opposition Congress Party workers yesterday.

...

"The institutional identity of the RBI has been damaged," former Governor Yaga Venugopal Reddy told CNBC this week. Rahul Gandhi, a leader of the main opposition Congress party, repeated the accusation, attacking Modi for ruining the credibility of the central bank.

]]>
iehi-feed-61467 Thu, 12 Jan 2017 15:06:49 GMT Strom Thurmond Buried Coretta Scott King's 1986 Letter On Sessions Black Voter Intimidation http://implode-explode.com/viewnews/2017-01-12_StromThurmondBuriedCorettaScottKings1986LetterOnSessionsBlackVot.html iehi-feed-61464 Wed, 11 Jan 2017 23:17:10 GMT Mnuchin to Divest Stakes in 43 Investments to Avoid Conflict, But Already Talked Up Fannie/Freddie Holdings http://implode-explode.com/viewnews/2017-01-11_MnuchintoDivestStakesin43InvestmentstoAvoidConflictButAlreadyTal.html The disclosures reveal that Mnuchin may have benefited following his comments in a Nov. 30 interview that the government should exit control of Fannie Mae and Freddie Mac. The remarks sent shares of the mortgage-finance giants soaring. Mnuchin's filings show he's invested as much as $2 million in Paulson Advantage LP, which holds a stake in Fannie and Freddie.

The Paulson Advantage holdings are among 43 investments that he has pledged to divest within 90 days of being confirmed. The value of the divestitures is more than $75 million, based on Bloomberg calculations.

Some think Mnuchin won't get confirmed, and some think that Fannie and Freddie can't even be privatized. Interesting times!

]]>
iehi-feed-61459 Wed, 11 Jan 2017 15:19:51 GMT Orban Plans Crackdown on All Soros-Funded NGOs in His Native Hungary http://implode-explode.com/viewnews/2017-01-11_OrbanPlansCrackdownonAllSorosFundedNGOsinHisNativeHungary.html iehi-feed-61451 Wed, 11 Jan 2017 00:52:37 GMT Top Economists Grapple With Public Disdain for Initiatives They Championed (AND THEMSELVES) http://implode-explode.com/viewnews/2017-01-10_TopEconomistsGrappleWithPublicDisdainforInitiativesTheyChampione.html "The economic elite did many things to undermine their credibility while people's economic fortunes were taking a turn for the worse," said Steven Davis, an economist at the University of Chicago. But a road map for regaining trust is elusive. "I used to think facts and analysis will ultimately carry the day but now I'm not quite sure."

...

Surveys from the Pew Research Center have documented dwindling support for free trade. In 2014, 60% of Democratic voters and 55% of Republican voters supported such trade agreements. In an October survey, however, support among Democrats had fallen to 56% and support among Republicans had nose-dived to 24%.

Over a billion people moved out of poverty in developing countries in the last 25 years, lifted in part by global trade and other economic prescriptions, but those same policies created winners and losers in the West. Another Pew study last year compared views of whether it was good for the U.S. to be so involved in the global economy: 86% of scholars said it was good, and just 2% bad. Among the general public, 49% thought it was bad, and just 44% good.

...

The profession sees its successes as overlooked--the U.S. is wealthier than ever. The unemployment rate is below 5%. Challenges facing those who enjoyed little economic gain in recent years are among the topics economists are trying to diagnose and the subject of dozens of papers at this year's conference.

...

Mr. Phelps said that neither the economic policies of Mr. Trump nor the left "can be expected to revitalize the West since neither serves to stimulate the business innovation that is essential for rapid economic growth."

... the profession may have brought this on itself, said Joseph Stiglitz, a Columbia professor and Nobel winner. Anger among voters was to be expected, because globalization in particular was sold in part with broken promises.

"The promise was that globalization, together with liberalization, lowering tax rates, and advances in technology, would make everyone better off," said Mr. Stiglitz. It was economists, not the economics, that over-promised, he said.

"In many ways, economic science was more honest," he said, referring to the fact that some would win but others could lose from free trade. "It only said that under certain conditions winners could compensate losers, not that they would."''

]]>
iehi-feed-61449 Tue, 10 Jan 2017 15:12:17 GMT Money Supply Will Continue Rapid Growth Because Fed Is Loosening, Not Tightening - The Wall Street Examiner http://implode-explode.com/viewnews/2017-01-10_MoneySupplyWillContinueRapidGrowthBecauseFedIsLooseningNotTighte.html iehi-feed-61448 Tue, 10 Jan 2017 15:01:44 GMT Obama's Blunder; Trump's Gambit - Jim Rickards http://implode-explode.com/viewnews/2017-01-10_ObamasBlunderTrumpsGambitJimRickards.html Most threatening [to US interests] is that in the past ten years, Russia increased its gold reserves 203%, and China increased its gold reserves an estimated 570%. Such gold accumulations have no purpose other than to lay the foundation for a non-dollar based international monetary system. No great power has prevailed long without a great currency. When confidence in the dollar fails, U.S. power will fail with it.

Obama blundered because he allowed Russia and China to pursue the two-against-one dynamic leaving the U.S. as the odd man out. Fortunately it is not too late to reverse this dynamic. Signs from the new Trump administration are encouraging. Trump's early actions and appointments suggest he understands the precarious position of the U.S., and is already moving to change the status quo.

]]>
iehi-feed-61447 Tue, 10 Jan 2017 03:51:24 GMT A Complete List Of What Trump Can, And Can Not Do, On Day One And For The Rest Of 2017 http://implode-explode.com/viewnews/2017-01-09_ACompleteListOfWhatTrumpCanAndCanNotDoOnDayOneAndForTheRestOf201.html