Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-62831 Mon, 21 Aug 2017 17:34:33 GMT Buffett Is Beached -- Nothing Cheap Left To Buy ($100 BLN+ SITTING ON SIDELINES) http://implode-explode.com/viewnews/2017-08-21_BuffettIsBeachedNothingCheapLeftToBuy100BLNSITTINGONSIDELINES.html iehi-feed-62830 Sun, 20 Aug 2017 21:52:15 GMT 13 Ways to Strengthen America's Economy http://implode-explode.com/viewnews/2017-08-20_13WaystoStrengthenAmericasEconomy.html iehi-feed-62829 Sun, 20 Aug 2017 19:15:46 GMT The Stock Market Has Been Magical. It Can't Last. http://implode-explode.com/viewnews/2017-08-20_TheStockMarketHasBeenMagicalItCantLast.html The stock market has been so placid that declines of a mere 1.5 percent have been treated like real news. The Standard & Poor's 500-stock index dropped that much on Thursday. Days like that can be unsettling, but in the span of market history, they amount to the slightest of headaches.

The deeper news isn't immediately visible day to day, but it is this: The stock market has been operating in an extremely rarefied world of heightened calm, one that is unlikely to continue. It is as if, after the election in November, Wall Street entered an enchanted zone. That is bound to end.

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iehi-feed-62828 Sun, 20 Aug 2017 18:45:41 GMT NAFTA Negotiations Start in Secrecy; Corporate Lobbying Heats Up http://implode-explode.com/viewnews/2017-08-20_NAFTANegotiationsStartinSecrecyCorporateLobbyingHeatsUp.html iehi-feed-62827 Sun, 20 Aug 2017 18:39:37 GMT China moves to curb overseas debt-fueled acquisitions (+ENCOURAGE "NEW SILK ROAD" INVESTMENTS) http://implode-explode.com/viewnews/2017-08-20_ChinamovestocurboverseasdebtfueledacquisitionsENCOURAGENEWSILKRO.html The curbs were announced in a document released on Friday by the state council, China's cabinet, in the latest move to halt a string of foreign acquisitions. This week the International Monetary Fund described China's credit-fuelled economic strategy as dangerous, in a strongly worded statement warning that the country's approach risks financial turmoil.

Raising concerns that some of the companies involved may be taking on too much debt, the council said: "There are great opportunities for our nation's companies to embark on foreign investment, but they also face numerous risks and challenges."

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The document limits overseas investments in areas such as hotels, cinemas, the entertainment industry, real estate and sports clubs. It also bans outright investments in enterprises related to gambling and the sex industry. The Chinese government had already flagged hotels as an area of concern, having reportedly asked the insurance group Anbang to sell the Waldorf Astoria hotel in New York.

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At the same time, the document encourages companies to plough money into projects related to the "Belt and Road" project, President Xi Jinping's signature foreign policy initiative that seeks to link China with other parts of Asia and eastern Europe through multibillion-dollar investments in ports, highways, railways, power plants and other infrastructure.

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iehi-feed-62826 Sun, 20 Aug 2017 18:15:32 GMT We're racing towards another private debt crisis - so why did no one see it coming? (UK) http://implode-explode.com/viewnews/2017-08-20_Wereracingtowardsanotherprivatedebtcrisissowhydidnooneseeitcomin.html Corporations are just raking in the profits and sitting on them. The household sector, on the other hand, is a rolling catastrophe. Austerity has meant falling wages, less government spending on social services (or anything else), and higher de facto taxes. This puts the squeeze on household budgets and people are forced to borrow. As a result, not only are households in overall deficit for the second time in British history, the situation is actually worse than it was in the years leading up to 2008.

And remember: it was a mortgage crisis that set off the 2008 crash, which almost destroyed the world economy and plunged millions into penury. Not a crisis in public debt. A crisis in private debt.

The situation is not much different in the states...

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iehi-feed-62825 Sun, 20 Aug 2017 16:56:55 GMT Fed-2nd Fischer: Unwinding Stimulus & Reform "Short-Sighted"; U.S. Treading Empire-Decline Path of Great Britain http://implode-explode.com/viewnews/2017-08-20_Fed2ndFischerUnwindingStimulusReformShortSightedUSTreadingEmpire.html

Having led a worldwide effort to strengthen financial regulation after the crisis, US politicians are now attempting to throw things into reverse -- something Fischer bluntly describes as "extremely dangerous and extremely short-sighted". America's role as guarantor of global organisations such as the IMF can no longer be taken for granted, he fears. "I had a picture of the world economy in which the United States was an anchor, not a source of volatility," Fischer says. "This really changes things."

This verdict is striking coming from a top US policymaker, but Fischer has seen a similar story play out before. Born in the former UK protectorate of Northern Rhodesia in the 1940s, Fischer grew up in the twilight of the British empire. America is losing its status as the world's hegemonic power -- just as Britain did before it, he suggests.

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Human beings, says Fischer, borrowing from Milton Friedman, are not rational, but they are great at rationalising things. He agrees with Greenspan, saying the persistently low level of real long-term interest rates is a conundrum. "I don't feel I understand it fully, and therefore I feel uncomfortable," he says, referring to the rapid ascent of equities. Part of the reason for the post-election stock market surge was a belief that Trump would push through tax reform and infrastructure. That justification for booming equities has evaporated, however, Fischer says. "The truth is our political system doesn't look like it is going to deliver very much in the way of what we hoped it was going to deliver on November 8 2016."

What Republican control of Congress and the White House may well herald, however, is deregulation. Recently the US Treasury put forward a document proposing ways of easing capital standards underpinning banks. The Fed has also been facing Congressional attacks on its independence -- both attempts to curb its ability to lend in an emergency and demands that it pay greater attention to monetary policy rules.

Fischer is openly incredulous, describing the moves to unwind the post-crisis system as "mind-boggling". The US political system "may be taking us in a direction that is very dangerous", he says. For example, the big US banks passed their stress-tests -- the annual Fed-led exercises that gauge their health -- and the cry goes up that it is time to reduce their capital requirements or make the tests more transparent.... ``the pressure I fear is coming to ease up on large banks strikes me as very, very dangerous,'' [Fischer said].

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iehi-feed-62824 Sun, 20 Aug 2017 16:45:45 GMT Don't Forget About The Red Swan - Stockman http://implode-explode.com/viewnews/2017-08-20_DontForgetAboutTheRedSwanStockman.html iehi-feed-62823 Sun, 20 Aug 2017 14:07:48 GMT Donald Trump Finally Comes Out of the Closet http://implode-explode.com/viewnews/2017-08-20_DonaldTrumpFinallyComesOutoftheCloset.html At this point, something has become undeniable. Trump voters who supported him based on the idea that he would bring forth an agenda of economic populism got played. I understand that many other people just voted for him as a middle finger to the system, but for the true believers who thought he had their backs, it's now long past the time to pack up your bags. I don't say this out of pleasure, I genuinely hoped he would push forth an agenda of economic populism, but now we know for certain this is never going to happen. That much is pretty undeniable.

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Populism isn't dead in America, but right populism as it exists today is. I just hope the next iteration is a lot more genuine, and a lot more sane.

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iehi-feed-62821 Sat, 19 Aug 2017 22:38:26 GMT Doug Noland: Crisis of Confidence http://implode-explode.com/viewnews/2017-08-19_DougNolandCrisisofConfidence.html ...before we segue to the mess in Washington, there are as well major near-term uncertainties with respect to global monetary management. There were indications this week that both the ECB and Federal Reserve lack the confidence and consensus necessary to communicate a plan for unwinding what have been years of unprecedented monetary stimulus. It's not confidence inspiring.

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There should be little doubt that the boom and bust dynamics experienced over recent decades have taken a toll on our nation's social and economic fabric. And while many want to blame "globalization," I believe much that we label "globalization" would be more accurately understood as fallout from years of unfettered global finance. Could NAFTA have been so destabilizing to U.S. manufacturing without endless cheap finance flooding into Mexico (and EM more generally). How dominant would China be today without essentially limitless amounts of virtually free "money" to finance over-investment the likes of which the world has never experienced?

I strongly believe that unfettered finance has been instrumental in the long period of U.S. deindustrialization -- the transformation from a manufacturing powerhouse into an experiment in a consumption and services-based economic structure. Bubbling securities markets and booming Wall Street finance were integral to this fateful structural shift.

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iehi-feed-62818 Sat, 19 Aug 2017 15:41:33 GMT So When Will China's Debt Bubble Finally Blow Up? http://implode-explode.com/viewnews/2017-08-19_SoWhenWillChinasDebtBubbleFinallyBlowUp.html [According to analyst Charlene Chu], by the end of 2017, bad debt in China could hit 51 trillion yuan, or $7.6 trillion. Or about 68% of GDP! It would take the bad-debt ratio to an astronomical 34% of all loans, and way above the 5.3% that the authorities are proffering. And the authorities -- the government, the central bank, supported by the state-owned banks -- are now pulling all levers to keep this under control.

"What I've gotten a greater appreciation for is how everything is so orchestrated by the authorities," she said. "The upside is that it creates stability. The downside is that it can create a problem of proportions that people would think is never possible. We're moving into that territory."

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iehi-feed-62817 Sat, 19 Aug 2017 15:29:49 GMT 5-Must See Charts For Retirement http://implode-explode.com/viewnews/2017-08-19_5MustSeeChartsForRetirement.html iehi-feed-62816 Fri, 18 Aug 2017 21:10:36 GMT Deutsche Bank, Bank of America settle agency bond rigging lawsuits http://implode-explode.com/viewnews/2017-08-18_DeutscheBankBankofAmericasettleagencybondrigginglawsuits.html Deutsche Bank AG and Bank of America Corp agreed to pay a combined $65.5 million to settle investor litigation accusing large banks of rigging the roughly $9 trillion government agency bond market over a decade.

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The collusion allegedly ran from 2005 to 2015, and forced customers to accept unfair prices on bonds they bought and sold, court papers show.

BNP Paribas SA, Citigroup Inc, Credit Agricole SA, Credit Suisse Group AG, HSBC Holdings Plc, Nomura Holdings Inc, Royal Bank of Canada and Toronto-Dominion Bank were also sued, and all sought dismissals.

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Late Wednesday night, another group of investors sued six banks, claiming they rigged the more than $1 trillion stock lending market.

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iehi-feed-62815 Fri, 18 Aug 2017 21:08:18 GMT Rickards: The Elites Will "Freeze" the Financial System in Next Crisis http://implode-explode.com/viewnews/2017-08-18_RickardsTheElitesWillFreezetheFinancialSysteminNextCrisis.html Eventually, the entire financial system will be frozen solid and investors will have no access to their money.

Some of my readers were skeptical of this scenario. But I researched it carefully and provided solid evidence that this plan is already in place -- it's just not well understood. But the ice-nine plan is now being put into practice.

Consider a recent Reuters article that admitted elites would likely shut down the entire system when the next financial crisis strikes.

The article claimed that the EU is considering actions that would temporarily prevent people from withdrawing money from banks to prevent bank runs.

Seems likely that they will attempt this -- there's just to much dependence built up in the decades-accumulated stock of debt-fueled paper assets to "admit" that they are near-worthless...

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iehi-feed-62814 Fri, 18 Aug 2017 21:03:50 GMT 'Simply doesn't cut it': Elizabeth Warren slams Wells Fargo's board changes http://implode-explode.com/viewnews/2017-08-18_SimplydoesntcutitElizabethWarrenslamsWellsFargosboardchanges.html iehi-feed-62813 Fri, 18 Aug 2017 20:58:29 GMT The Stock Market Bubble is So Big Even the Fed's Talking About It http://implode-explode.com/viewnews/2017-08-18_TheStockMarketBubbleisSoBigEventheFedsTalkingAboutIt.html iehi-feed-62812 Fri, 18 Aug 2017 20:47:07 GMT Why is Gary Cohn Still Hanging Around Trump? Probably To Snag Yellen's Post... http://implode-explode.com/viewnews/2017-08-18_WhyisGaryCohnStillHangingAroundTrumpProbablyToSnagYellensPost.html iehi-feed-62810 Fri, 18 Aug 2017 16:52:45 GMT Stocks turn higher after multiple reports that Bannon has left the White House http://implode-explode.com/viewnews/2017-08-18_StocksturnhigheraftermultiplereportsthatBannonhaslefttheWhiteHou.html U.S. equities rose on Friday after multiple reports said Steve Bannon, one of President Donald Trump's top advisors, was leaving the administration.

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Tension between Bannon and other top advisors to Trump, including Chief Economic Advisor Gary Cohn and National Security Advisor H.R. McMaster, had been festering inside the White House. On Wednesday, Reuters reported that discord between Bannon and McMaster is destabilizing Trump's team.

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Bannon has been the advisor pushing the hardest for a more nationalistic approach to U.S. economic policy. However, his influence has reportedly waned in the Trump administration.

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If Bannon leaves "I think that's positive for the market because it means that Gary Cohn is staying and if Cohn and McMaster are the ones left advising the president, that's ultimately market friendly," said Dave Lutz, head of ETF trading at JonesTrading.

More deck chairs-rearranging (along with Bannon's utter crap were some ballpark-reasonable reform ideas).

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iehi-feed-62809 Fri, 18 Aug 2017 14:57:16 GMT A billionaire-owned restaurant charged a "minimum wage" fee. Outrage ensued. http://implode-explode.com/viewnews/2017-08-18_AbillionaireownedrestaurantchargedaminimumwagefeeOutrageensued.html A customer dining at Washington's Oceanaire restaurant noticed an unusual line at the bottom of his receipt: "Due to the rising costs of doing business in this location, including costs associated with higher minimum wage rates, a 3% surcharge has been added to your total bill." He snapped a picture and sent it to local blog Popville, which posted a picture of his receipt. The outraged comments started rolling in.

"Just raise prices if you need to, don't try to slip this in under the radar and then pretty much blame [it] on employees who need to make a living!" wrote one commenter.

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But the surcharge has now been removed, at least in Washington. When contacted by The Post, Landry's issued a statement from Tim Whitlock, senior vice president of operations and chief operating officer of the Oceanaire:

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The minimum wage in Washington is $12.50 and will rise to $15 by 2020, according to legislation from the D.C. Council approved last year. The minimum wage for tipped workers in D.C. is $3.33, and will reach $5 by 2020.

A study earlier this year found that minimum wage hikes can force restaurants to close, as restaurateurs have been warning us for years -- but typically only bad restaurants. "Among 3.5-star restaurants, every $1 increase in the minimum wage increases the restaurant's chances of closing by 14 percent," wrote The Post's Caitlin Dewey. The Oceanaire currently has 3.5 stars on Yelp.

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iehi-feed-62808 Fri, 18 Aug 2017 14:47:27 GMT Donald Trump Is a Lame-Duck President http://implode-explode.com/viewnews/2017-08-18_DonaldTrumpIsaLameDuckPresident.html ... thinking about Trump as a lame duck who will just have to stumble through the rest of his presidency makes more sense, at least at the present moment, than expecting that Trump will be removed from office, whether by resignation, impeachment, or some more far-flung possibility.  The president shows little sign of being the sort of person who could be forced into resigning--after all, after he was bullied by staff into condemning racism, he was so agitated that the following day he defended the Charlottesville marchers with a more strongly worded statement.

... There is one other possibility [for redemption]: a crisis. In moments of catastrophe, citizens like to rally around even an unpopular president, seeking unity and leadership. But the signs so far about how Trump might handle a genuine, huge crisis are not promising. In fact, given the chance to deal with a crisis, he has often just made things worse for himself. Over the last week, his improvised language inflamed an already dangerous standoff with North Korea. Then he turned a national tragedy in Charlottesville into a huge personal liability for himself out of an inability to simply condemn racism and leave it at that.

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