Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-61557 Tue, 24 Jan 2017 23:28:02 GMT Mexico ready to discuss NAFTA; But Puts "Nuclear Option" On Table (IT'S UNLIKELY) http://implode-explode.com/viewnews/2017-01-24_MexicoreadytodiscussNAFTAButPutsNuclearOptionOnTableITSUNLIKELY.html Speaking on condition of anonymity, two Mexican government officials and four other people familiar with ongoing discussions said Mexico saw rules of origin as an important avenue to brokering a deal with Trump, provided a fair compromise can be reached.

...

Under NAFTA, 62.5 percent of the material in a car or light truck made in Mexico must be from North America to be able to enter the United States tariff free. If the countries agree in negotiations, that percentage could be increased, potentially giving an advantage to U.S. industry at the expense of Asian competitors.

...

The NAFTA rules are in place to prevent China or other lower wage countries from being able to produce the majority of content in a vehicle and export it to another country to assemble it without paying tariffs.

]]>
iehi-feed-61556 Tue, 24 Jan 2017 23:11:45 GMT Retail Malaise Puts Pressure on Chains to Shutter More Stores http://implode-explode.com/viewnews/2017-01-24_RetailMalaisePutsPressureonChainstoShutterMoreStores.html More than 10 percent of U.S. retail space, or nearly 1 billion square feet, may need to be closed, converted to other uses or renegotiated for lower rent in coming years, according to data provided to Bloomberg by CoStar Group. That's on top of about 5,000 stores that have been shuttered in the past 18 months, an estimated 50 million square feet of space, according to Clarion Partners.

...

One problem facing U.S. retailers is that there are too many stores. The nation has about 24 square feet of retail real estate per capita, according to data compiled by Clarion. By comparison, Canada has only 16 square feet per person.

]]>
iehi-feed-61555 Tue, 24 Jan 2017 23:09:31 GMT President Trump To Cut Regulations By '75 Percent' -- How Real Is That? http://implode-explode.com/viewnews/2017-01-24_PresidentTrumpToCutRegulationsBy75PercentHowRealIsThat.html iehi-feed-61554 Tue, 24 Jan 2017 19:19:04 GMT Trump to Sign Orders Advancing Keystone, Dakota Access Pipelines http://implode-explode.com/viewnews/2017-01-24_TrumptoSignOrdersAdvancingKeystoneDakotaAccessPipelines.html In a statement, Greenpeace executive director Annie Leonard pledged that the same group of environmentalists, Native American activists and farmers that successfully stalled the projects in the past will continue to fight their advancement.

...

During a meeting with auto executives earlier Tuesday, Trump described himself as "an environmentalist" but argued that federal regulatory and permitting processes are too drawn out.

"I am, to a large extent, an environmentalist," he said. "I believe in it, but it's out of control and we're going to make a very short process and we're going to either give you your permits or we're not going to give you your permits, but you're going to know very quickly."

]]>
iehi-feed-61553 Tue, 24 Jan 2017 19:15:58 GMT After U.S. exit, Asian nations try to save TPP trade deal (CHINA MAY STEP UP) http://implode-explode.com/viewnews/2017-01-24_AfterUSexitAsiannationstrytosaveTPPtradedealCHINAMAYSTEPUP.html iehi-feed-61552 Tue, 24 Jan 2017 19:14:52 GMT Consumer Financial Protection Bureau director says Trump won't change agency's aggressive efforts http://implode-explode.com/viewnews/2017-01-24_ConsumerFinancialProtectionBureaudirectorsaysTrumpwontchangeagen.html The nation's top consumer financial watchdog, who some Republicans want President Trump to fire, said Tuesday that the new Republican administration won't change his approach to aggressively hold banks and other financial firms accountable.

...

This month, two Republican senators called on Trump to fire Cordray, echoing the views of many GOP lawmakers who believe the agency's efforts have restricted lending and reduced consumer's choices. 

Asked Monday if Trump was going to shake up the bureau's leadership before Cordray's term expires next year, White House Press Secretary Sean Spicer said "no decision has been made at this time on that."

]]>
iehi-feed-61551 Tue, 24 Jan 2017 15:53:24 GMT Existing U.S. Home Sales Fell in December as Supplies at Lowest Level Since 1999 http://implode-explode.com/viewnews/2017-01-24_ExistingUSHomeSalesFellinDecemberasSuppliesatLowestLevelSince199.html Americans retreated from purchasing homes in December, as the number of properties listed for sale sank to its lowest level since 1999.

The National Association of Realtors said Tuesday that sales of existing homes fell 2.8 percent last month to a seasonally adjusted annual rate of 5.49 million. For all of 2016, sales posted an annual gain of 3.8 percent to 5.45 million.

...

But the housing market has become trapped by a supply shortage that has pushed prices higher and may limit the potential for additional sales growth. Homebuyers simply have fewer choices, as new construction has yet to meet demand and existing homeowners have been reluctant to list their properties for sale.

Just 1.65 million homes were listed for sale in December. This marks a 6.3 percent drop from a year ago to the smallest total since 1999.

]]>
iehi-feed-61550 Tue, 24 Jan 2017 02:21:17 GMT Citi mortgage units fined $28.8 million for foreclosure sleaze; 40k homeowners effected http://implode-explode.com/viewnews/2017-01-23_Citimortgageunitsfined288millionforforeclosuresleaze40khomeowner.html The Consumer Financial Protection Bureau ordered CitiFinancial Servicing and CitiMortgage to pay $28.8 million for giving "the runaround" to cash-strapped homeowners who were facing foreclosure.

"Consumers were kept in the dark about their options or burdened with excessive paperwork," said CFPB Director Richard Cordray, in a release on Monday. "This action will put money back in consumers' pockets and make sure borrowers can get help they need."

...

The CFPB charged that in 2014, CitiMortgage requested unnecessary documents and forms from some homeowners who were seeking foreclosure relief. Many of these letters requested documents that had already been provided or weren't needed in the application process, according to the CFPB.

]]>
iehi-feed-61549 Tue, 24 Jan 2017 01:44:20 GMT Trump/Repub. health-care reform implies $2.8 bln tax cut exclusively for the rich http://implode-explode.com/viewnews/2017-01-23_TrumpRepubhealthcarereformimplies28blntaxcutexclusivelyfortheric.html ... most of the revenue the ACA raised flows from some very rich waters... the latest payback for some of the working class voters who helped elect the incoming president is to take away their health care and give the savings to millionaires and billionaires... In fact, the repeal leads to the richest 400 households getting a $2.8 billion tax break that's bigger than the value of almost 670,000 ACA tax credits worth $2.5 billion going to people in Pennsylvania, Wisconsin and Michigan.

Indeed; though we note that proper health care reform would lower costs dramatically overall (perhaps by 1/3rd or even half or more). To wit, the U.S. currently spends about 18% of GDP on health care, which comes to $3.2 trillion; if this percentage was lowered (through cost-reducing incentive shifts) to a more reasonable (for modern developed countries) level of 12%, that would constitute a trillion dollars of savings. And these savings would inherently be most heavily felt by the non-rich. The devil is of course in the details, but the "eye" should be kept on the "ball" of the main benefit of health care system reform (more like "repair"); the non-rich won't miss that $2.8 billion when they are saving $1 trillion. Still, it's undoubtedly more fair not to have any cuts like this come before the cost-savings aspects kick in.

]]>
iehi-feed-61548 Tue, 24 Jan 2017 01:31:25 GMT China: We can lead world after crisis in Western democracy, capitalism http://implode-explode.com/viewnews/2017-01-23_ChinaWecanleadworldaftercrisisinWesterndemocracycapitalism.html The article and two similar pieces filled up a full page in the government paper on Sunday, and blamed Western democracy and capitalism for global troubles such as the financial crisis and populist movements in the U.S. and Europe. In this context, the editorials said, China could show the benefits of "socialism with Chinese characteristics."

...

"When you have a country like China whose growth is slowing with massive debt, with concerns of its neighbors as it moves to become more powerful, I don't know if it's the right time for China to be strongly promoting its system relative to others," Kennedy said.

]]>
iehi-feed-61547 Mon, 23 Jan 2017 23:11:48 GMT Resurgent Inflation To Collide With Trump Stimulus Plans http://implode-explode.com/viewnews/2017-01-23_ResurgentInflationToCollideWithTrumpStimulusPlans.html ... inflation started picking up last summer... It's now rising at the fastest rate in five years. MarketWatch reported last week... A string of sharp gains since late summer helped drive up inflation by 2.1% for the full year, marking the biggest increase since a 3% gain in 2011. Americans are pay[ing] more for fuel, housing and doctor visits, countering the biggest decline in grocery prices since the tail end of the Great Recession.

...

It won't take much inflation for bondholders to take heavy losses, either... Take the U.S. 10-year Treasury, which is supposedly one of the "safest" bonds you can own. It currently yields about 2.4%. That's about half its historical average. Corporate and municipal bonds are also yielding near-record lows. This makes them incredibly vulnerable to inflation.

]]>
iehi-feed-61546 Mon, 23 Jan 2017 17:56:38 GMT Trans-Pacific Partnership trade deal withdrawal Trump's first executive action Monday http://implode-explode.com/viewnews/2017-01-23_TransPacificPartnershiptradedealwithdrawalTrumpsfirstexecutiveac.html President Donald Trump on Monday will start to unravel the behemoth trade deal he inherited from his predecessor, as he signed an executive action to withdraw from the negotiating process of the Trans-Pacific Partnership.

...

The TPP was negotiated under former President Barack Obama, but never ratified by Congress, so withdrawing from it will not have an immediate, real effect on US economic policies, although it does signal a new and very different US outlook on trade under Trump.

]]>
iehi-feed-61545 Mon, 23 Jan 2017 17:55:00 GMT Carrot and Stick: Trump threatens business leaders with border tax, Offers "Massive" Tax and Regulation Cuts http://implode-explode.com/viewnews/2017-01-23_CarrotandStickTrumpthreatensbusinessleaderswithbordertaxOffersMa.html "If you go to another country ... we are going to be imposing a very major border tax on the product when it comes in, which I think is fair," Trump said. "All you have to do is stay. Don't leave. Don't fire your people."

Sources told CNN last month that Trump was eyeing an across-the-board tax on imports as high as 10% -- an idea business leaders have bristled at.

Trump said he would aim to cut regulations by as much as 75% -- including by slashing environmental protections -- which would streamline the process for companies to build new factories in the US.

Of course now he is trying to deal based on things that primarily involve Congress, so this will get interesting. At some point companies may start calling Trump's bluff (they may have already, with a shift in tactics towards playing up "job creation" that is either questionable accounting or was going to happen anyways).

]]>
iehi-feed-61544 Mon, 23 Jan 2017 17:50:17 GMT The US dollar is now overvalued against almost every currency in the world http://implode-explode.com/viewnews/2017-01-23_TheUSdollarisnowovervaluedagainstalmosteverycurrencyintheworld.html iehi-feed-61543 Mon, 23 Jan 2017 16:46:13 GMT China's central bank ‘playing dangerous game' to prop up yuan; Calls to allow float grow http://implode-explode.com/viewnews/2017-01-23_ChinascentralbankplayingdangerousgametopropupyuanCallstoallowflo.html China's central bank is playing a dangerous game using the country's foreign reserves to defend the yuan because it could leave the nation defenceless in an increasingly volatile world, a state researcher has warned.

...

Zhang call's for Beijing to reverse tack and abandon its heavy intervention in the foreign exchange market is gaining traction among researchers.

Zhang Bin, another researcher at the Chinese Academy of Social Sciences, agreed that Beijing should free up controls on the yuan's exchange rate by reducing government intervention in the market.

...

Tsinghua University professor Zhu Ning also said earlier that Beijing should let the market determine the yuan's exchange rate.

The prospects of this approach becoming a policy option appear to be rising, especially with the decline in the reserves.

]]>
iehi-feed-61542 Mon, 23 Jan 2017 15:31:31 GMT Trump's massive infrastructure, defense plans will lead to ruin - Ron Paul http://implode-explode.com/viewnews/2017-01-23_TrumpsmassiveinfrastructuredefenseplanswillleadtoruinRonPaul.html iehi-feed-61540 Sun, 22 Jan 2017 21:00:06 GMT A whole mall near Pittsburgh just sold for $100 http://implode-explode.com/viewnews/2017-01-22_AwholemallnearPittsburghjustsoldfor100.html The reason? As explained by money, it's that the mall simply hasn't done well. Though the Galleria isn't even 15 years old, it's never performed to expectations, and the changing patterns of the surrounding populace plus the overall trend away from mall shopping in many areas combined to spell its doom.

Analysts suggest that it's simply too large for the area it serves, and while it still has anchors like Macy's and Dick's Sporting Goods, the Galleria is almost half empty. Without getting into technical jargon, the mall wasn't truly open to outside bids, as Wells Fargo Bank more or less bought the mall from itself after foreclosing on it two years ago.

]]>
iehi-feed-61539 Sun, 22 Jan 2017 20:41:50 GMT Beijing: US 'Word Bombs' Won't Stop China's Power Projection http://implode-explode.com/viewnews/2017-01-22_BeijingUSWordBombsWontStopChinasPowerProjection.html China intends to carry out military exercises farther from its shores, the People's Daily, the main publication of the ruling Communist Party of China, explained, adding that blue-water drills like those recently conducted by China's aircraft carrier battle group will become the norm... "From now on, Chinese military training in distant seas will be routine," the People's Daily stated.

...

A second, independently-produced aircraft carrier is close to completion; however, it will likely be some time before it is commissioned into the PLAN and deployed.

]]>
iehi-feed-61537 Sun, 22 Jan 2017 19:29:21 GMT Turkish parliament approves constitutional reform, expanded powers for Erdogan to go to Referendum http://implode-explode.com/viewnews/2017-01-22_TurkishparliamentapprovesconstitutionalreformexpandedpowersforEr.html iehi-feed-61536 Sun, 22 Jan 2017 15:18:38 GMT Draghi Says There's a Target-2 Toll For Leaving Euro; Italy's Bill Would Be $383.1 bln http://implode-explode.com/viewnews/2017-01-22_DraghiSaysTheresaTarget2TollForLeavingEuroItalysBillWouldBe3831b.html Any country leaving the euro zone would need to settle its claims or debts with the bloc's payments system before severing ties, European Central Bank President Mario Draghi said.

...

Based on data to end-November from the Target 2 payment system, that would leave Italy with a 358.6 billion euro ($383.1 billion) bill. The system records flows of payments between euro zone countries.

]]>