Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-60099 Tue, 28 Jun 2016 14:46:23 GMT Jim Rogers on Brexit: 'Worse than any bear market you've seen in your lifetime' http://implode-explode.com/viewnews/2016-06-28_JimRogersonBrexitWorsethananybearmarketyouveseeninyourlifetime.html Brexit's win will also embolden other countries to leave the EU and separatist movements to break up a few states, Rogers predicted. That could make the world to look significantly different in just a half a decade.

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"The EU as we know it will not exist," he said. "The euro as we know it will not exist. Some people leave, others may join -- unlikely, but they could join. There are a lot of angry people all over the world. Look at what's happening in America." In the UK, he added, "People are making unbelievably incompetent statements but they're very happy to be getting out [of the EU]. They're so angry."

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iehi-feed-60096 Tue, 28 Jun 2016 14:36:37 GMT Greenspan Warns A Crisis Is Imminent, Urges A Return To The Gold Standard http://implode-explode.com/viewnews/2016-06-28_GreenspanWarnsACrisisIsImminentUrgesAReturnToTheGoldStandard.html iehi-feed-60086 Mon, 27 Jun 2016 16:27:04 GMT China, Russia pledge business partnership worth $50 billion as Belt & Road Takes Shape http://implode-explode.com/viewnews/2016-06-27_ChinaRussiapledgebusinesspartnershipworth50billionasBeltRoadTake.html iehi-feed-60084 Mon, 27 Jun 2016 15:01:41 GMT Erdogan apologizes to Putin over death of Russian pilot, calls Russia ‘friend & strategic partner' http://implode-explode.com/viewnews/2016-06-27_ErdoganapologizestoPutinoverdeathofRussianpilotcallsRussiafriend.html iehi-feed-60083 Mon, 27 Jun 2016 14:48:15 GMT Russia-German Pipeline May Break Europe's Energy Union http://implode-explode.com/viewnews/2016-06-27_RussiaGermanPipelineMayBreakEuropesEnergyUnion.html iehi-feed-60062 Thu, 23 Jun 2016 22:08:49 GMT ECB restores bond waiver, lets Greek banks tap credit http://implode-explode.com/viewnews/2016-06-23_ECBrestoresbondwaiverletsGreekbankstapcredit.html iehi-feed-60061 Thu, 23 Jun 2016 22:07:06 GMT China's Xi lauds new Silk Road, says $15 billion invested last year http://implode-explode.com/viewnews/2016-06-23_ChinasXilaudsnewSilkRoadsays15billioninvestedlastyear.html iehi-feed-60058 Thu, 23 Jun 2016 15:48:55 GMT The Panama Canal Extension: A Risky Bet http://implode-explode.com/viewnews/2016-06-23_ThePanamaCanalExtensionARiskyBet.html ... when the speeches and the celebrations end, one inescapable fact will remain: The expanded canal's future is cloudy at best, its safety, quality of construction and economic viability in doubt, an investigation by The New York Times has found.

In simple terms, to be successful, the new canal needs enough water, durable concrete and locks big enough to safely accommodate the larger ships. On all three counts, it has failed to meet expectations, according to dozens of interviews with contractors, canal workers, maritime experts and diplomats, as well as a review of public and internal records.

The low winning bid, a billion dollars less than the nearest competitor's, made "a technically complex mega-project" precarious from the outset, according to a confidential analysis commissioned by the consortium's insurer. "There is little room in the budget for execution errors or significant inefficiencies," the analysts, from Hill International, wrote in 2010, adding, "This is a high-risk situation."

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Last summer, water began gushing through concrete that was supposed to last 100 years but could not make it to the first ship. The Hill analysts had warned that the consortium's budget for concrete was 71 percent smaller than that of the next lowest bidder. The budget also allotted roughly 25 percent less for steel to reinforce that concrete.

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At the same time, the canal's success may be undercut by external forces: chiefly the slowdown in global trade, especially from China.

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A trouble-free canal would cast a favorable light on a country embarrassed by government scandal and by the Panama Papers, which brought a local law firm international ignominy for setting up secret offshore accounts for wealthy customers from around the world.

Even residents who privately criticize canal management are reluctant to speak up for fear of appearing unpatriotic.

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The financially weakest consortium was led by a Spanish company, Sacyr Vallehermoso, which American officials called "nearly bankrupt" in one cable and "technically bankrupt" in another...

In March 2009, after 15 months of contentious negotiations, the three consortiums submitted their sealed bids before a packed auditorium, with the president and diplomatic corps as witnesses. To heighten the drama, a motorcade delivered the envelopes to a vault at the National Bank for safekeeping. The one with the best price and design would win. That July, with the nation watching on television, the bids were opened, and the result was a shocker: The underdog Sacyr group had won.

Bechtel and American diplomats were incredulous. Sacyr could not even "pour the concrete" for that amount, a Bechtel representative told the embassy, according to a diplomatic cable.

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iehi-feed-60049 Thu, 23 Jun 2016 00:49:30 GMT ECB Balance Sheet Hits Record High (With Stocks At 18-Month Lows) http://implode-explode.com/viewnews/2016-06-22_ECBBalanceSheetHitsRecordHighWithStocksAt18MonthLows.html iehi-feed-60040 Tue, 21 Jun 2016 16:20:42 GMT Raymond James: Get Ready for $80 Oil http://implode-explode.com/viewnews/2016-06-21_RaymondJamesGetReadyfor80Oil.html iehi-feed-60033 Sun, 19 Jun 2016 19:58:39 GMT China Now Stockpiling Massive Amounts Of Silver, Swiftly Building Massive Regional Trade Infrastructure http://implode-explode.com/viewnews/2016-06-19_ChinaNowStockpilingMassiveAmountsOfSilverSwiftlyBuildingMassiveR.html Between August, 2015 and April, the latest data I have, silver inventories in China (on their exchange) have climbed more than sevenfold from 233 metric tonnes to a staggering 1700 tonnes. China is stockpiling silver specifically for use in their enormous solar buildout program, which is a massive, multi-year program that will require unimaginable amounts of physical silver.

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China's end game is to secure enough resources to secure a decent lifestyle for its nearly 1.5 billion citizens. China realizes this means that its Eastern trading partners must also develop. In a report authored by McKinsey Global Institute that was released this week, the consultant reports that over the most recent decade for which it has data, China has spent more on infrastructure than North America and Western Europe combined. Moreover, the remaining parts of the East led in large part by Chinese financing have spent three times more than China.

This piece makes the good point (as have a few scattered others in the last few years) that China's stockpiling of and encouragement of private citizen-buying of precious metals is quite compatible with China's extensive efforts to build out regional trade infrastructure (most notably, the "New Silk Road" and One Belt/One Road initiative). I.e., the plan seems to be (1) build up both private and public monetary wealth, (2) build out regional trade infrastructure, (3) when the regional trade infrastructure is mature, unleash the hoarded wealth to pivot to a consumer-dominant local economy, as buyer through the newly-created regional trade infrastructure. Put another way, the solution to the mystery of the "missing transition to a Chinese consumer-driven economy" may simply be that it is waiting upon the maturation of the regional trade infrastructure -- the plan is not, at all, to buy through the "old" (currently dominant) trade networks with the West.

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iehi-feed-60025 Sat, 18 Jun 2016 13:57:32 GMT Rio state declares 'public calamity' over finances http://implode-explode.com/viewnews/2016-06-18_Riostatedeclarespubliccalamityoverfinances.html iehi-feed-60011 Thu, 16 Jun 2016 13:37:24 GMT Gold (+Yen) Soars to Two-Year High as Fed and Brexit Boost Haven Demand http://implode-explode.com/viewnews/2016-06-16_GoldYenSoarstoTwoYearHighasFedandBrexitBoostHavenDemand.html Yen Surges to Almost Two-Year High as ‘Brexit' Storm Gathers Force :

The yen soared to its highest level against the dollar in nearly two years after Japan's central bank left its policy unchanged, the latest sign of how next week's U.K. vote on whether to leave the European Union is tying the hands of global policy makers.

The Japanese currency Thursday jumped by as much as 1.7% after the Bank of Japan announced its decision, briefly touching 103.58 to the dollar, its strongest level since August 2014, as traders took the central bank's inaction as a signal the currency would head higher.

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iehi-feed-60010 Thu, 16 Jun 2016 13:34:45 GMT For One Breed of Wall Street Bankers, Business Is Booming Again http://implode-explode.com/viewnews/2016-06-16_ForOneBreedofWallStreetBankersBusinessIsBoomingAgain.html iehi-feed-59983 Fri, 10 Jun 2016 14:19:10 GMT Why big investors think it's time to hoard gold http://implode-explode.com/viewnews/2016-06-10_Whybiginvestorsthinkitstimetohoardgold.html "I think the key element more than any one geopolitical issue, even as much as the Fed holding off a spate of rate rises, is some economies moving into negative rates. That has been very good for gold. When you look at when the gold rally began it is very close to the issue of bonds with a negative yield," said Steel. "If you look at all the economies that have a negative yield, they add up to a little over 27 percent of the world's GDP. ... Negative yields are a powerful cocktail for gold. They eliminate the opportunity cost of owning gold."

Steel said the move into the metal has been steady, not an excited gold rush spiking prices. "Basically, the rally has been entirely investment led," he said. That is opposed to a rally driven by physical demand, with buyers in the biggest markets -- India and China -- now less active.

Well, they're getting better. Back when the rallies in gold and silver over the past half-decade tended to be physical-led, the mainstream media would lend no credence to that fact whatever -- it was always "but there's no major investment demand!" (ignoring completely the role of central banks in buying, of course). Now that there's investment demand, the cry is "but there's no physical demand!" (which is of course, false -- it's just that physical isn't QUITE as blockbuster as it has been at a few peaks in the past couple rally cycles).

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iehi-feed-59975 Thu, 09 Jun 2016 13:56:52 GMT A Bearish George Soros Is Trading Again (AND BETTING ON GOLD) http://implode-explode.com/viewnews/2016-06-09_ABearishGeorgeSorosIsTradingAgainANDBETTINGONGOLD.html After a long hiatus, George Soros has returned to trading, lured by opportunities to profit from what he sees as coming economic troubles. Worried about the outlook for the global economy and concerned that large market shifts may be at hand, the billionaire hedge-fund founder and philanthropist recently directed a series of big, bearish investments.. Soros Fund Management LLC, which manages $30 billion for Mr. Soros and his family, sold stocks and bought gold and shares of gold miners, anticipating weakness in various markets. Investors often view gold as a haven during times of turmoil.

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Mr. Soros also argues that there remains a good chance the European Union will collapse under the weight of the migration crisis, continuing challenges in Greece and a potential exit by the United Kingdom from the EU.

"If Britain leaves, it could unleash a general exodus, and the disintegration of the European Union will become practically unavoidable," he said. Still, Mr. Soros said recent strength in the British pound is a sign that a vote to exit the EU is less likely.

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iehi-feed-59962 Mon, 06 Jun 2016 18:16:13 GMT Brussels Wants to Lift Anti-Russian Sanctions Without Breaking 'EU Unity' http://implode-explode.com/viewnews/2016-06-06_BrusselsWantstoLiftAntiRussianSanctionsWithoutBreakingEUUnity.html iehi-feed-59960 Mon, 06 Jun 2016 13:39:38 GMT Saudi Arabia Races Through Financial Toolkit to Raise Funds http://implode-explode.com/viewnews/2016-06-06_SaudiArabiaRacesThroughFinancialToolkittoRaiseFunds.html In recent weeks, the kingdom raised a $10 billion loan, clamped down on currency speculators and informed banks of plans to raise as much as $15 billion in its first international bond sale, people with knowledge of the matter said. It's also said to be contemplating IOUs to pay contractor bills and hired HSBC Holdings Plc banker Fahad Al Saif to set up a new debt office.

The speed of the measures underscores Deputy Crown Prince Mohammed bin Salman's urgency to shore up the country's finances as an era of oil-fueled abundance falters. Though currency reserves remain strong -- among the world's largest -- net foreign assets are at a four-year low after declining for 15 months in a row and the kingdom may post a budget deficit of about 13.5 percent of economic output this year.

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Authorities are also taking steps to protect the currency regime amid speculation the country will have to abandon the riyal's three-decade-old peg to the U.S. dollar. Last week, the Saudi Arabia Monetary Agency ordered banks to stop selling dollar-riyal forward structured contracts immediately, following a similar order in January, people aware of the matter said.

Among those betting that the peg may not endure are U.S. hedge funds. PointState Capital's Zach Schreiber, who made $1 billion betting against oil two years ago, is wagering that weaker long-term crude prices and rising costs will cause the country to abandon the peg. Pershing Square Capital Management has made similar bets.

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iehi-feed-59951 Sat, 04 Jun 2016 16:27:03 GMT China Ramps Up Its Promotion of Individual Gold Ownership http://implode-explode.com/viewnews/2016-06-04_ChinaRampsUpItsPromotionofIndividualGoldOwnership.html "I drew attention to a new push by Chinese officials a few weeks back after a contact alerted me to prime time television ads being run in China where the PBOC was openly encouraging its citizens to buy gold.  This is no coincidence (Laughter).  And those ads by the PBOC have been running ever since then.

This gold accumulation push is part of a well structured plan by China that will protect its citizens against the inevitable global currency fallout.  China is stealthily winning a financial war against the short-term thinking West.

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iehi-feed-59947 Sat, 04 Jun 2016 00:00:18 GMT A Suburban Experiment Aims for Energy Grid-Independent Homes http://implode-explode.com/viewnews/2016-06-03_ASuburbanExperimentAimsforEnergyGridIndependentHomes.html Since 2013, the Energy Department has certified about 700 homes as "zero-energy ready," meaning that the addition of a renewable energy system, generally solar, would offset most or all of its annual energy consumption.

With thousands more in the pipeline, said Sam Rashkin, chief architect of the building technologies office, the department expects to certify roughly 1,000 this year and 3,000 in 2017.

"We're on that inflection point on the growth curve," he said. "We're proving the business case to a growing number of builders in key pockets of construction around the country. It takes some really good examples by leading builders to showcase just how cost-effective and technically achievable these specifications are."

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[Electric Power Research Institute, a nonprofit utility-funded group that is conducting the study on zero-energy homes] found a willing collaborator in Meritage, a leading builder of energy-efficient homes, and are expanding the test program to additional subdivisions in Southern California, the Central Valley and the Bay Area.

For buyers, part of the appeal of a home built to be zero-energy is that they do not have to change their behavior to save energy.

At Meritage, the company insulates every house with spray foam, sharply reducing the amount of heating and cooling needed, and allowing smaller or fewer units to be installed. Making the homes even more efficient are dual-pane windows that help retain or keep out heat (depending on the need), LED lighting and advanced water heaters that work by funneling heat from the ambient air into the water.

All of the test homes have SunPower rooftop solar systems, which are among the most efficient on the market. And because they were designed along with the houses, the arrays can be oriented for maximum production.

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