Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-59920 Tue, 31 May 2016 16:02:54 GMT Market Shocked By `Brexit' Poll Surprise http://implode-explode.com/viewnews/2016-05-31_MarketShockedByBrexitPollSurprise.html iehi-feed-59919 Tue, 31 May 2016 16:00:19 GMT Another Reason Obamacare is Self-Destructing: >100% Marginal Income "Cliff" http://implode-explode.com/viewnews/2016-05-31_AnotherReasonObamacareisSelfDestructing100MarginalIncomeCliff.html iehi-feed-59918 Tue, 31 May 2016 13:26:12 GMT Glitch in bailout talks fuels fears of delay in loan disbursement http://implode-explode.com/viewnews/2016-05-31_Glitchinbailouttalksfuelsfearsofdelayinloandisbursement.html There was fresh concern on Monday that there could be further delays in the disbursement of much-need bailout money to Greece owing to a disagreement between Athens and its creditors, who have demanded changes to prior actions passed in Parliament earlier this month... The country's lenders had given the green light for the disbursement of a tranche of 10.3 billion euros last week, on the condition the government made amendments to recent legislation it passed on pension, bad loans and privatizations.

However, Finance Minister Euclid Tsakalotos had informed the European Commission representative and the International Monetary Fund in a letter last week that their demands could not be met, neither could Athens fulfill the demands enshrined in the bailout deal signed last summer to privatize ADMIE, the country's grid operator, and to freeze the wages of essential services, like those of the coast guard and police.''

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iehi-feed-59917 Tue, 31 May 2016 13:24:09 GMT The Untold Story Behind Saudi Arabia's 41-Year U.S. Debt Secret http://implode-explode.com/viewnews/2016-05-31_TheUntoldStoryBehindSaudiArabias41YearUSDebtSecret.html With a handful of Treasury and Federal Reserve officials, the secret [of the amount of Saudia Arabia's official US Treasury holdings] was kept for more than four decades--until now. In response to a Freedom-of-Information-Act request submitted by Bloomberg News, the Treasury broke out Saudi Arabia's holdings for the first time this month after "concluding that it was consistent with transparency and the law to disclose the data," according to spokeswoman Whitney Smith. The $117 billion trove makes the kingdom one of America's largest foreign creditors.

Yet in many ways, the information has raised more questions than it has answered. A former Treasury official, who specialized in central bank reserves and asked not to be identified, says the official figure vastly understates Saudi Arabia's investments in U.S. government debt, which may be double or more.

The current tally represents just 20 percent of its $587 billion of foreign reserves, well below the two-thirds that central banks typically keep in dollar assets. Some analysts speculate the kingdom may be masking its U.S. debt holdings by accumulating Treasuries through offshore financial centers, which show up in the data of other countries.

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Treasury officials solved the dilemma [of Saudi Arabia appearing to support Israel by way of buying US debt] by letting the Saudis in through the back door. In the first of many special arrangements, the U.S. allowed Saudi Arabia to bypass the normal competitive bidding process for buying Treasuries by creating "add-ons." Those sales, which were excluded from the official auction totals, hid all traces of Saudi Arabia's presence in the U.S. government debt market.

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iehi-feed-59916 Tue, 31 May 2016 13:14:15 GMT One-Minute Plunge Sends Chinese Stock Futures Down by 10% Limit http://implode-explode.com/viewnews/2016-05-31_OneMinutePlungeSendsChineseStockFuturesDownby10Limit.html Chinese stock-index futures plunged by the daily limit before snapping back in less than a minute, the second sudden swing to rattle traders this month. Contracts on the CSI 300 Index dropped as much as 10 percent at 10:42 a.m. local time, recovering almost all of their losses in the same minute.

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The unexplained slump follows a similar drop in Hang Seng China Enterprises Index futures on May 16 in Hong Kong, a move that heightened anxiety among investors facing slower Chinese economic growth and a weakening yuan...

"Liquidity in the market is really thin at the moment," Fang Shisheng, Shanghai-based vice general manager at Orient Securities Futures Co., said by phone. "So the market will very likely see big swings if a big order comes in."

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iehi-feed-59915 Tue, 31 May 2016 13:11:14 GMT Mizuho Chief Warns of Japan Downgrade if Abe Delays Tax Hike http://implode-explode.com/viewnews/2016-05-31_MizuhoChiefWarnsofJapanDowngradeifAbeDelaysTaxHike.html The chief of Mizuho Financial Group Inc. said Japan risks a credit-rating downgrade if Prime Minister Shinzo Abe delays a scheduled sales-tax increase without explaining how the government plans to cut its deficit... "The worst scenario is [the government] will just announce a delay in the tax increase. That could send a message that Abenomics has failed or Japan is heading for a fiscal danger zone and then it will harm Japanese government bonds' credit ratings," Mr. Sato said in an interview, referring to the prime minister's growth program.

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Moody's downgraded Japan's credit rating by one notch to A1 from Aa3, the same rating it has assigned to Israel and the Czech Republic, after Mr. Abe decided in November 2014 to delay the tax increase the first time.

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iehi-feed-59913 Mon, 30 May 2016 15:01:32 GMT Iceland's Decoupling From Global Financial Capital Was The Right Move http://implode-explode.com/viewnews/2016-05-30_IcelandsDecouplingFromGlobalFinancialCapitalWasTheRightMove.html iehi-feed-59912 Mon, 30 May 2016 14:58:10 GMT Cameron Brexit Lies Prompt Conservative Party Rebellion; Calls For No-Confidence Vote (UK) http://implode-explode.com/viewnews/2016-05-30_CameronBrexitLiesPromptConservativePartyRebellionCallsForNoConfi.html Bridgen told the BBC's 5 Live that Cameron had been making "outrageous" claims in his bid to persuade voters to back remain and that, as a consequence, he had effectively lost his parliamentary majority.

"The party is fairly fractured, straight down the middle and I don't know which character could possibly pull it back together going forward for an effective government. I honestly think we probably need to go for a general election before Christmas and get a new mandate from the people," he said.

Bridgen said at least 50 Tory MPs -- the number needed to call a confidence vote -- felt the same way about Cameron and that a vote on the prime minister's future was "probably highly likely" after the referendum.

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iehi-feed-59911 Mon, 30 May 2016 14:55:06 GMT We're Already In A Bear Market: Charles Gave http://implode-explode.com/viewnews/2016-05-30_WereAlreadyInABearMarketCharlesGave.html iehi-feed-59910 Mon, 30 May 2016 02:54:19 GMT Silver Photovoltaic Needs Through 2020 Will Drive Shortage And Price Shock http://implode-explode.com/viewnews/2016-05-29_SilverPhotovoltaicNeedsThrough2020WillDriveShortageAndPriceShock.html After 2020, increasing silver demand will mean increasing rationing of the metal, which can only be done by via extraordinarily high prices. Of the world's major countries, only China seems to get the message and to be preparing for this eventuality, with China's recent silver imports soaring to five-year highs. Meanwhile, U.S. imports have stagnated.

Barring a miracle, silver prices are going to the moon, leaving the U.S. in a very difficult position. It would not surprise us one bit if silver is confiscated much like gold was during the Depression. This means, as was the case with gold, the best investments are likely to be silver producers. Over the next decade almost all credible silver producers could see their prices multiply by anywhere from 10- to 100-fold.

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iehi-feed-59909 Mon, 30 May 2016 02:43:54 GMT Bitcoin Skyrockets And Is Now Up More Than 100% This Jubilee Year http://implode-explode.com/viewnews/2016-05-29_BitcoinSkyrocketsAndIsNowUpMoreThan100ThisJubileeYear.html In [the past year], it has been pronounced dead at least once and is now at a 20-month high. We gave these three main reasons in the last year for why we thought it would go much higher. Still to this day most other financial analysts either ignore bitcoin or, even stupider, deride it as being some sort of scam or ponzi scheme.

The dollar and government "services" like Social Security are scams and ponzi schemes... but bitcoin clearly is not.  It is open source and so anyone who cares to look can see there is nothing nefarious about it.  Therefore, anyone who says it is a scam or ponzi scheme is just showing willful ignorance as they could very easily look at it themselves and see it is not.

Bitcoin was just declared "dead" again last week when Coinbase announced Ethereum support. Big whoop. We're not slamming Etherum (it is by all accounts great tech with wonderful potential) -- but that news was good for about a $20 "collapse"... on the 28th alone, bitcoin surged about $50. It is far from down for the count and may still be in the early innings.

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iehi-feed-59908 Mon, 30 May 2016 01:48:30 GMT 200M drive over structurally deficient bridges daily this Memorial Day http://implode-explode.com/viewnews/2016-05-29_200MdriveoverstructurallydeficientbridgesdailythisMemorialDay.html iehi-feed-59907 Sun, 29 May 2016 19:02:55 GMT Last Time this Happened, the Housing Market Collapsed http://implode-explode.com/viewnews/2016-05-29_LastTimethisHappenedtheHousingMarketCollapsed.html According to the Times: "Many say the sudden surge in hyperprice homes -- often built and sold by speculative investors -- is the ultimate bubble signal." And when was the last time this sort of pile-up happened? In 2007 and 2008, just as the housing market was beginning to spiral down and as the Financial Crisis was beginning to mature. So now, the same signs are popping up once again.

While overall home prices were still soaring in the first quarter, at the top 5% of the housing market, the bubble has begun to deflate, with prices down 1.1%, according to Redfin. In some cities, the very top end is starting to take some hits, including in Manhattan where a luxury condo boom has turned into a glut, and where prices have begun to sag.

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iehi-feed-59906 Sun, 29 May 2016 18:06:53 GMT Obama Admin's Trade Deals Going Nowhere Fast http://implode-explode.com/viewnews/2016-05-29_ObamaAdminsTradeDealsGoingNowhereFast.html iehi-feed-59905 Sun, 29 May 2016 15:39:42 GMT Japan's Abe to delay sales tax hike until 2019: government source http://implode-explode.com/viewnews/2016-05-29_JapansAbetodelaysalestaxhikeuntil2019governmentsource.html iehi-feed-59904 Sun, 29 May 2016 14:18:16 GMT Atlantic City Rescue Plan Approved by New Jersey Lawmakers http://implode-explode.com/viewnews/2016-05-29_AtlanticCityRescuePlanApprovedbyNewJerseyLawmakers.html The measures approved on Thursday would give Atlantic City five months to come up with a balanced budget for 2017 and a five-year plan that puts the city on a path toward financial recovery. The city would receive a loan from the state as well as payments from casinos in lieu of property taxes. The casino money would amount to $120 million in the first year and increase by at least 2 percent a year over the next nine years, lawmakers said.

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The legislation requires the city to identify spending cuts, as well as ways to increase revenue and reduce debt. The city would be able to use early retirement programs to shrink its work force, lawmakers said. The city would also have to make required payments to the local school district and to Atlantic County.

If Atlantic City officials failed to come up with the plan called for in the legislation, or if the city did not meet its obligations, the state would have the authority to rein in the city's finances.

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iehi-feed-59903 Sun, 29 May 2016 13:51:27 GMT "Miracle" in Athens as Greek tourism numbers keep growing http://implode-explode.com/viewnews/2016-05-29_MiracleinAthensasGreektourismnumberskeepgrowing.html "It's a miracle, what's been happening in Athens," Greece's tourism chief, Andreas Andreadis, told the Observer. "The tourist industry in Greece grew two to three times faster than in Spain, Portugal, Italy or France last year. This year we expect around 4.5 million visitors in Athens alone."

For an economy stuck in depression-era recession, dependent on emergency bails and seemingly locked in a perpetual fiscal vice, tourism is vital. A record 23.5 million holidaymakers visited Greece in 2015 -- generating €14.2bn in direct receipts, or 24% of gross domestic product. In 2010, at the start of the country's debt crisis -- which has seen it struggle to avert default and remain in the euro -- revenues from tourism were €10bn, or 15% of GDP.

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Much of the upsurge is linked to Greece's safety record. Tourists are staying away from resort in Egypt, Tunisia, Turkey and elsewhere in the wake of high-profile attacks. Countries whose economies are also dependent on holidaymakers have suffered incalculable damage following a severe drop in arrivals. Travel advice from governments and fears of fresh violence are simply keeping tourists away.

... it could not come at a better time: tourism provides one in five jobs in Greece, at a time when unemployment in the effectively bankrupt nation has hovered stubbornly around 25%. Youth unemployment stands at an astonishing 67%.''

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iehi-feed-59902 Sun, 29 May 2016 13:45:14 GMT Iceland Puts Freeze on Foreign Investors http://implode-explode.com/viewnews/2016-05-29_IcelandPutsFreezeonForeignInvestors.html A law passed May 22 by Iceland's parliament offers the foreign holders of about $2.3 billion worth of krona-denominated government bonds a Hobson's choice: Sell out in June at a below-market exchange rate, or have the money they receive when their bonds mature impounded indefinitely in low-interest bank accounts...

A growing number of fund managers are now buying Icelandic government bonds, including those that were marooned on the island when it applied capital controls. The country is now one of the few offering a combination of high interest rates and strong economic growth prospects.

Eaton Vance and another holder of the legacy debt, also called "offshore" debt, hedge fund Autonomy Capital LP, have been courting the government for months to allow them to keep their cash on the island, even offering to swap their holdings into long-term bonds that they would pledge to hold on to.

But the country isn't interested. Instead, officials behind the law say they aim to keep the $16.7 billion economy of the island with a population of 327,386 from being swamped anew by the ebb and flow of offshore funds.

"We don't need the money," said Mar Gudmundsson, governor of Iceland's central bank. "These are remnants from the last boom and bust, and we are not going to repeat that mistake."

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Some investors consider the terms to be coercive and tantamount to default. But Kristin Lindow, a sovereign bond ratings analyst at Moody's Investors Service, calls the offer purely voluntary and says most bonds will mature years from now, when capital controls will likely be long gone.

... The economy is thriving again, thanks largely to a tourism boom. But the populace wants the controls fully lifted. "Capital controls should have been lifted a long time ago," said Arnar Sigurdsson, an importer of French wines in Reykjavik who invests his personal wealth in bonds and currencies.

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iehi-feed-59901 Sun, 29 May 2016 13:16:33 GMT Billionaire Gross: Jubilee Debt Relief as Prelude to New Global Economic Order http://implode-explode.com/viewnews/2016-05-29_BillionaireGrossJubileeDebtReliefasPreludetoNewGlobalEconomicOrd.html iehi-feed-59900 Sat, 28 May 2016 14:26:29 GMT Pro-Trump, anti-Trump groups clash in San Diego http://implode-explode.com/viewnews/2016-05-28_ProTrumpantiTrumpgroupsclashinSanDiego.html Police clad in riot gear and wielding batons began dispersing a crowd of Donald Trump supporters and protesters here Friday night after the presumptive GOP nominee held a rally.

After issuing orders to the crowd of roughly 1,000 to disperse, police began forcefully and aggressively pushing protesters, checking them with their batons. At least 35 people were arrested, police said.

Smells like 1968.

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