Implode-Explode Heavy Industries news feed

Washington Signals Dollar Deep Concerns

Sun, 19 May 2013 14:06:42 GMT

Quantitative Easing is the term given to the Federal Reserve's policy of printing 1,000 billion new dollars annually in order to finance the US budget deficit by purchasing US Treasury bonds and to keep the prices high of debt-related derivatives on the "banks too big to fail" (BTBF) balance sheets by purchasing mortgage-backed derivatives. Without QE, interest rates would be much higher, and values on the banks' balance sheets would be much lower.
Quantitative Easing has been underway since December 2008. During these 54 months, the Federal Reserve has created several trillion new dollars with which the Fed has monetized the same amount of debt.

Leap 2020: with record stock exchange highs, the planet's imminent plunge into recession

Sun, 19 May 2013 11:46:42 GMT

``In short, a world recession is on the horizon (6). To protect themselves from its impact, the different players, beginning with the banks, use different strategies which we will now analyse.''

"Porky" (The Dollar Index) Charges Back

Sun, 19 May 2013 03:57:57 GMT

``Regardless of the long-term trend, a move toward 88 on the POSX is going to keep paper metal under some serious pressure. Brainless computers and money managers will only see the "rallying dollar" and use it as rationale to sell metal. What does this mean? In all likelihood, there's a pretty good chance I'm going to have to eat that hat after all. Ugh. Gold looks almost certain to retest the lows of April 15-16 near $1320.... depending upon where you measure it, gold would then be very close to a perfect, 38.2% retracement of its bull market.''

Germany Imposing a Glass-Steagall-Like Act with Teeth

Sun, 19 May 2013 03:54:56 GMT

``Germany is drawing a bright line between proprietary trading in banks and customer deposits. They are not merely separating the two, but they imposed criminal sentences for directors of banks and insurance companies if they fail to fulfill their supervisory duties in risk management or contravene an array of banking supervision.''

HKMEX to Cease Trading Monday -- Is it A "Soft Default"?

Sun, 19 May 2013 03:54:24 GMT

``We suspect that come Monday morning, more than one Chinese investor who believed he owned a gold position (and learns that in fact he held paper) will immediately attempt to source and take delivery of physical metal. As the Shanghai Gold Exchange appears to have stopped delivering gold as well, we suspect that the LBMA may be in for a bit of a physical run. ''

Gold Set Up For Major Bottom

Sat, 18 May 2013 13:57:17 GMT

``The weekly chart is ugly, but it too suggests that this could be a major bottom. The price has reached downtrending support. The 13 week rate of change is near the level where gold's price bottomed in 2008. In addition to the commercials and large and small specs, this chart shows that gold producers have reduced their short positions to the level reached at the 2008 bottom, and managed money has reduced its long position to the level of the 2008 bottom. All of these things point to a potential bottom here.''

Five Incredibly Important Gold & US Dollar Charts

Sat, 18 May 2013 04:16:40 GMT

``the trend low at $1,321 should be tested and we still believe a move down to the $1,260 can be seen before the market stabilizes. However, we continue to believe lower lows can be seen over the coming weeks. The large double-top pattern that formed throughout 2011-2012 suggests a more aggressive move down towards $1,260. '' -- While it may suck, so far these guys have been spot on.

Paper Gold, Metal Gold - When Worlds Diverge

Sat, 18 May 2013 04:12:10 GMT

`` I agree with David, that there will be a 'closing of the gap' between paper and reality once again, most likely triggered by some 'black swan event' that simply no one could see coming. Except those that the financiers have worked so hard to silence and discredit. ''

Doug Noland - Thoughts on the Electronic Printing Press

Sat, 18 May 2013 03:48:37 GMT

``The Fed and global bankers should never have become such active players in the financial markets. Asset inflation is indeed more dangerous than consumer price inflation. Central banks will actively support asset prices, while refusing to remove the punchbowl. At all costs, Chairman Bernanke will avoid being a Bubble Popper. And when you read his comments from Friday morning (below), keep in mind that as Bubbles become more systemic they actually become less conspicuous. Today, Bubbles proliferate throughout the securities and asset markets. It's all become one big historic global Bubble. Yet the Bernanke Fed won't even begin tapering its $85bn monthly "money printing" operation in the midst of increasingly conspicuous market excesses. ''

One Bank Did Right by Homeowners & Shareholders -- A Story You Haven't Heard Before - Mandelman Matters

Sat, 18 May 2013 03:41:18 GMT

``To begin with, Tomkinson and Ashmore started to become very concerned about the housing market in 2006, but even more amazing is that they did something based on their concerns... they slashed loan originations by half to $12 billion, and cut their portfolio by 25 percent to $21 billion. Had they not taken these steps when they did... had greed or willful blindness driven them to remain in the game so as to squeeze every dime from the marketplace until the last minutes before the meltdown... it's highly likely that would not have made it through the storm, as so many others did not.''

Elizabeth Warren Confronts Eric Holder, Ben Bernanke And Mary Jo White On Too-Big-To-Jail

Sat, 18 May 2013 03:30:41 GMT

``"If large financial institutions can break the law and accumulate millions in profits and, if they get caught, settle by paying out of those profits, they do not have much incentive to follow the law."''

"This Catastrophic Monetary Situation Is Entering The Terminal Phase" - Embry

Sat, 18 May 2013 03:29:03 GMT

``... as I said earlier it will all resolve itself because there are enough people in this world that realize that the paper money system is in its terminal state. When that comes to an end, and I think it's going to be sooner rather than later, gold and silver will truly assert themselves. We're not talking about gains of 50%. We are talking multiples of the current gold and silver prices, and that includes the shares as well." ''

Winter Actionables | Positioning of the Paper Gold Comex Comittment of Traders

Sat, 18 May 2013 03:17:08 GMT

``Incredibly Soros in the 1Q got even more aggressive (too early) on gold shares, and was simply reallocating out of GLD into GDX and GDXJ. But that's not how the news stories read.''

"The World Paper Council"

Sat, 18 May 2013 03:09:55 GMT

... in response to the current, massive, gold supply-deficit to the gigantic Indian market... a series of articles came out in the mainstream media, where bankers proposed "solving" this gold supply-deficit by selling Indians lots more paper-gold. In other words, they were going to increase the supply of gold by selling paper-gold.
Obviously the only, possible way in which selling "paper-gold" can increase the total supply of gold is if the bankers are simply selling paper and calling it "gold." Given that bankers have a track-record of selling paper and calling it "gold" which literally traces back to the "money-changers" of a thousand years ago, this is hardly a revelation.

Evidence of Bubble In Stock Prices When Compared With Industrial Production

Sat, 18 May 2013 03:03:15 GMT

``Stock prices have broken out as industrial production has lagged. That suggests that stocks are in a bubble. As the Fed continues QE, I would expect both to move more or less together. If the lag in industrial production grows the bubble would increasing in size and growing more dangerous.''

German growth too weak to lift eurozone from recession

Fri, 17 May 2013 22:05:37 GMT

``The eurozone economy continues to shrink as Germany's economy grew by a meagre 0.1 percent in the past three months, while France slid back into recession, according to data from the EU statistics office Eurostat published on Wednesday (15 May).''

Dax Future Triggers Stops, Goes Parablic, Launching Late Day Megaramp

Fri, 17 May 2013 20:11:20 GMT

``That is the Dax; This is the Dax on low-volume, mega levitation drugs, at 9pm on a Friday in Germany, when out of nowhere someone goes on a mega buying spree in the Dax futures, and sends global risk assets, and FX pairs, surging. Is Bernanke LBOing Germany? ''

CFTC's Gensler, Chilton's Positions May Not Be Renewed -- FIA's Lukken

Fri, 17 May 2013 18:17:34 GMT

``Positions held by Commodity Futures Trading Commission Chairman Gary Gensler and CFTC Commissioner Bart Chilton are up for renewal, but so far neither official has had their position renewed, which suggests new blood may come into the agency, said an futures industry official on Wednesday.'' -- Aww, darn (then again, maybe some worse sociopaths will end up getting in)...

Why Fund Managers May Be Right About the Fed

Thu, 16 May 2013 12:44:27 GMT

... what these investors are expressing should trouble all of us: they have almost no confidence in the Federal Reserve or the economics profession. And for good reason.
It's impressive that the Fed and many economists have successfully predicted the path of interest rates and inflation in the wake of the worst financial crisis in a generation. But neither the central bank nor academicians managed to predict or prevent the crisis in the first place. The failure dwarfs the accomplishment.

Japan - Green Light to Crush Yen

Wed, 15 May 2013 23:34:58 GMT

``As noted in the Wall Street Journal, "The G-20 communiqué offered a message that "countries can continue to devalue their currencies so long as they don't explicitly say they want to devalue their currencies. This contradiction between economic word and deed shows the degree to which policymakers have defaulted to easy money as the engine of growth.''