Implode-Explode Heavy Industries news feed

Investor survey shows 38 pct chance of eurozone break-up in 12 months

Tue, 03 Mar 2015 18:34:05 GMT

``Investor expectations of the euro zone breaking apart have risen to their highest level in two years, a survey showed on Tuesday, even after Greece agreed a financial lifeline with its euro zone partners.''

The Great Global Monetary Easing of 2015 May Be Done by Midyear

Tue, 03 Mar 2015 18:31:41 GMT

``That backdrop has JPMorgan predicting the Federal Reserve will raise interest rates in June for the first time since 2006 and, in doing so, end the international easing cycle. On the other hand, Goldman Sachs Group Inc. and Morgan Stanley predict docile inflation will persuade the Fed to hold off.''

Greece eyes last central bank funds to avert IMF default

Tue, 03 Mar 2015 18:30:56 GMT

Yanis Varoufakis, the finance minister, sought to silence such talk over the weekend, telling Associated Press that a default to the IMF was out of the question, even if a halt in payments to the EU institutions remains a serious threat. "We are not going to be the first country not to meet our obligations to the IMF. We shall squeeze blood out of stone if we need to do this on our own, and we shall do it," he said.
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Mr Varoufakis said Greece did not want any further money if it meant having to buckle to Troika terms. "We won't take the next tranche if the price is having to continue with the 'Memorandum'. That is not what the people voted for," he said. It is a thinly-veiled warning that Greece will default on €300bn of combined liabilities to EMU entities and states if pushed too hard, regardless of what this implies for monetary union.
Whatever piece of paper they signed in Brussels 10 days ago, the two sides are still talking past each other.

Ukraine central bank declares fourth-largest lender insolvent

Tue, 03 Mar 2015 18:19:38 GMT

``Ukraine's central bank declared the country's fourth-largest lender, Delta Bank, insolvent on Tuesday, saying it had adopted risky policies during a period of economic turmoil.''

US Savings Rate Surges To Highest Since 2012 As Consumers Save "Gas Tax Cut" Instead Of Spending

Tue, 03 Mar 2015 14:16:17 GMT

``US personal spending dropped 0.2% in January - twice as bad as the 0.1% drop expected and the 3rd miss in a row.''

HOW'S THAT DEFLATION WORKING OUT FOR YOU?

Tue, 03 Mar 2015 01:11:26 GMT

The BLS put out their monthly CPI lie last week. They issued the proclamation that inflation is dead. Did you know your costs are 0.1% lower than they were one year ago. They then used these deflation numbers to proclaim your real wages soared last month. It's all good. The American consumer is so flush with cash, they decided to spend less money for the second month in a row.
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And now for the BIGGEST LIE in the entire report. The have the balls to tell you that health insurance only makes up 0.753% of your entire annual budget and it has FALLEN by 0.5% in the last year. This must be some cruel Obamacare joke perpetrated by these government apparatchiks. I haven't met anyone who has seen their health insurance costs go down in the last year. My premiums went up by 20% and my annual family deductible went from $0 to $2,000. How the BLS can get away with issuing this drivel is beyond my comprehension. It's pure and utter bullshit.

IMF bent its rules to hobble Greece with unsustainable debt

Mon, 02 Mar 2015 22:33:46 GMT

Philippe Legrain, a former adviser to the European Commission president, told Arte that the IMF managing director at the time, Dominique Strauss-Kahn, overrode objections from IMF staff so that Greece could pay the money it owed to French banks and not endanger his chances to run for president in France.
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"Despite the IMF's rules that it is not supposed to resort to exceptional access lending when a country's public debt is unsustainable or when the chances of program success are not good, the IMF has managed to lend to Greece some 1,860% of quota," wrote Desmond Lachman, former deputy director of the IMF's policy department. "That is more than three times the normal maximum IMF limit for such lending."

Greek debt becoming less sustainable

Mon, 02 Mar 2015 15:03:59 GMT

``The combination of a higher debt stock and a likely flattish nominal GDP will push the debt-to-GDP ratio to higher levels rather than lower as envisaged by the economic program this year.''

Ukraine Hyperinflates

Mon, 02 Mar 2015 14:32:33 GMT

``Using this figure and black-market exchange rate data ... I estimate Ukraine's current annual inflation rate to be 272 percent -- and its monthly inflation rate to be 64.5 percent. This rate exceeds the 50 percent per month threshold required to qualify for hyperinflation. So, if Ukraine sustains its current monthly rate of inflation for several more months, it will enter the record books as the world's 57th hyperinflation episode. ''

Catalonia prepares to set up own foreign missions, tax system amid independence drive

Mon, 02 Mar 2015 14:28:13 GMT

``Catalonia is preparing its own tax system, and creating a network of foreign missions as it prepares for a snap regional vote on independence. Recently Spain's top court ruled that the region's symbolic referendum vote in November was unconstitutional.'' -- And the burgeoning Podemos is against this. This should get interesting.

Creditors Face Losses as Austria Halts Hypo Alpe Support

Mon, 02 Mar 2015 14:24:53 GMT

Hypo Alpe-Adria-Bank International AG creditors face losses after the Austrian government ruled out providing fresh capital and put the failed lender into resolution.
After 5.5 billion euros ($6.2 billion) of taxpayer money was injected into Hypo Alpe over five years, Chancellor Werner Faymann's administration decided on March 1 to stop supporting Hypo Alpe's bad bank, Heta Asset Resolution AG, when it was told Heta may need another 7.6 billion euros.

Hussman: Plan To Exit Stocks Within the Next 8 Years? Exit Now

Sun, 01 Mar 2015 21:29:30 GMT

``It's notable that while these extremes sometimes occurred at the exact market high, other instances were only proximal to those highs, resulting in brief retreats and a final push higher. We don't know whether the current instance will have consequences similar to the 1929, 1972, 1987, 2000 and 2007 ones, but suffice it to say that these conditions were more notable for their outcomes over the completion of the full market cycle than they were for their immediate outcomes.''

Italy's "Le Pen" draws thousands at rally in Rome

Sun, 01 Mar 2015 21:17:41 GMT

``Opinion polls suggest that Mr Salvini is rapidly gaining in popularity... Mr Salvini's fiery rhetoric against the European Union, immigration and austerity politics had led to comparisons being drawn between him and French National Front leader Marine Le Pen.''

Fed Vice Chair Fischer says rate hike most likely "June or September"

Sun, 01 Mar 2015 20:57:12 GMT

``"It's interesting that September is creeping into the debate. It suggests the Fed is in no rush," Mr. Costerg said. "Fischer leaves the impression the Fed is quite open-minded and in a data-watching mode."''

Andrew Maguire -- LBMA Paper Ponzi To Be Crushed As Gold And Silver Markets Change Forever (Chinese Gold Fix, etc.)

Sun, 01 Mar 2015 15:33:30 GMT

``Here is a small portion of what Maguire had to say about the launch of the new exchange -- where he will have a seat: "Up to now the end-user hasn't been able to directly access the wholesale market. As institutions, producers, refiners and other end-users all share the same platform and enjoy complete anonymity from the bullion banks, it removes the power from the bullion banks' concentrated hands. This is why it (the new exchange being launched is) a game-changer.''

BREAKING BAD (DEBT) -- EPISODE TWO (Consumer Debt and Subprime Rises)

Sun, 01 Mar 2015 15:26:43 GMT

``It is mind bogglingly ludicrous for financial institutions to loan 110% of the value of a vehicle over a seven year term when the vehicle depreciates by 10% the moment you drive it off the lot and 50% in the first three years. It is even more preposterous for these financial institutions to loan 126% of the value of a vehicle for 71 months at 10% interest to someone without the means, income, or willingness to repay the loan. But, these are the current terms offered to subprime borrowers''

The euro may be riskier than you think - Alasdair MacLeod

Sat, 28 Feb 2015 16:41:58 GMT

`` Varoufakis almost certainly understands that the Eurozone is in a weaker position than the bureaucrats and finance ministers themselves believed. It was important for them to become aware of this reality, which was central to his approach. It appears that under the Lisbon Treaty, Eurozone states cannot expel Greece: she can only leave with everyone's unanimous agreement, including her own. And they probably didn't realise that playing hardball against Greece would force the ECB to write off debts approaching ten times her equity capital of only €10.8bn... In the wake of this episode the status of the euro as money is likely to be increasingly questioned, not just in the foreign exchanges, but by its users as well. ''

Greek PM says 'forget about third bailout'

Sat, 28 Feb 2015 16:39:20 GMT

``"Some have bet on a third bailout, on the possibility of a third bailout in June. I'm very sorry but once again we will disappoint them," the PM declared, adding that "the Greek people put an end to bailouts with their vote."''

Greece runs out of funding options despite euro zone reprieve

Fri, 27 Feb 2015 20:02:29 GMT

Shut out of debt markets and faced with a steep fall in tax revenues, Athens is expected to run out of cash by the middle or end of March. Its finance minister has warned that Greece will struggle to repay creditors starting with a 1.5 billion euro IMF loan repayment due in March.
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Greece had also hoped it could tap the almost 11 billion euros of leftover money in the Greek bank stabilization fund, but euro zone finance ministers have decided the money would be returned to the Luxembourg-based euro zone bailout fund.
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A senior Greek banker said the expectation in Athens remained that the ECB would relent and allow some leeway on T-bills.
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The onus is now on Athens to rush through reforms to unlock the remaining aid.

Greek Gov't raises concern over payment to IMF in March

Fri, 27 Feb 2015 17:18:43 GMT

``Greece is due to pay the IMF 1.6 billion euros next month but Flambouraris said that Athens might ask to delay this payment for two months. Greece has a total of 7.27 billion euros in obligations next month of which 4.6 billion euros is in treasury bills that are due to be rolled over. The government's first T-bill issue will have to take place by Thursday as 1.6 billion euros has to be rolled over the next day.''