Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64224 Wed, 19 Sep 2018 22:19:59 GMT Alibaba will no longer bring 1 million jobs to the US, citing tariffs http://implode-explode.com/viewnews/2018-09-20_Alibabawillnolongerbring1millionjobstotheUScitingtariffs.html iehi-feed-64208 Fri, 14 Sep 2018 19:10:23 GMT Trader blows €100m hole in Nasdaq's Nordic power market http://implode-explode.com/viewnews/2018-09-15_Traderblows100mholeinNasdaqsNordicpowermarket.html One of Norway's richest men has blown a hole of more than €100m in a stability fund that ensures the safety of derivatives-trading in European electricity markets.Coming in the same week as the 10th anniversary of Lehman Brothers' collapse, the trading losses will focus attention on the robustness of standards promoted by policymakers globally after the financial crisis.Einar Aas, a private trader who has been among Norway's highest earners in recent years thanks to aggressive bets in European power markets, saw his positions collapse on Monday after extreme market moves in German and Nordic energy markets.Nasdaq, the principal trading exchange where futures contracts tied to physical energy markets in the Nordic region are transacted, said Mr Aas had defaulted on Tuesday after he was unable to meet margin calls at its clearing house on lossmaking trades.

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Nasdaq cut the entire trade on Wednesday and the exchange confirmed that the loss accounted for all of the exchange's own default fund of €7m and swallowed €107m, or two-thirds, of its €166m mutual default fund that clearing house members must contribute to.

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With Nasdaq and members of its clearing house repairing the damage, questions as to how a single trader could come close to wiping out the clearing house's layers of protection will merit the attention of regulators, including the European Central Bank.Members of the clearing house include some of the biggest banks and energy traders such as Morgan Stanley, UBS and Equinor, Norway's state oil company... .The catalyst for the trading loss was a series of backfiring bets on the price difference between German and Nordic power markets, according to multiple sources in the industry.

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iehi-feed-64185 Wed, 05 Sep 2018 15:59:52 GMT Venezuela: Life Without Water: Sweaty, Smelly, and Furious in Caracas http://implode-explode.com/viewnews/2018-09-05_VenezuelaLifeWithoutWaterSweatySmellyandFuriousinCaracas.html Dishes are brushed off and reused, and clothing is not something regularly laundered, though, personally, I draw the line at multiple wearings of underwear or socks. You ask friends whether it's okay to flush. You often do not. We're sweaty and, yes, smelly, especially in the rainy season when the humidity can top 80 percent. We're at risk, too, because water stagnating in the vessels that people stash around their homes attracts mosquitoes; malaria rates have soared.

The poorest, as usual, have it the worst, though no one is spared. Hospitals and schools, posh neighborhoods and slums, they all go without water--at times for weeks on end--making this man-made drought arguably the most equalizing disaster the socialist government has ever managed to engineer.

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iehi-feed-64182 Mon, 03 Sep 2018 15:48:44 GMT For Venezuelans fleeing economic catastrophe, Brazil has proven a tough place to land http://implode-explode.com/viewnews/2018-09-03_ForVenezuelansfleeingeconomiccatastropheBrazilhasprovenatoughpla.html iehi-feed-64179 Fri, 31 Aug 2018 17:17:45 GMT Stocks snap 4-day winning streak after report Trump backs tariffs on $200 billion in Chinese goods http://implode-explode.com/viewnews/2018-09-01_Stockssnap4daywinningstreakafterreportTrumpbackstariffson200bill.html Bloomberg News reported that Trump told aides he supports moving forward with proposed tariffs on an additional $200 billion in Chinese goods. The report also said, however, that Trump has not made up his mind on the matter. The White House declined to comment on the report.

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Investors also watched as the U.S. and Canada tried to strike a deal on trade.

"We had some momentum when the U.S and Mexico struck a deal earlier in the week," said Ryan Nauman, market strategist at Informa Financial Intelligence. "But as the deadline approaches, people are getting a bit worried."''

David Stockman's comments on Trump's NAFTA "revamp", from this article, are pretty hilarious:

David Stockman, Ronald Reagan's budget director, described that agreement as an older version of NAFTA with Trump missteps sprinkled in. "There was never a problem with NAFTA anyway, and what he has done is basically remove the name and complicated the machinery [and] given a big wage increase to Mexican workers," Stockman told Bloomberg Television on Friday.
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iehi-feed-64168 Fri, 10 Aug 2018 21:09:57 GMT Turkish crisis littered with lessons for Trump, US economy http://implode-explode.com/viewnews/2018-08-10_TurkishcrisislitteredwithlessonsforTrumpUSeconomy.html Had global liquidity conditions not been as ample as they had been over the past several years, Turkey would not have been able to run the outsized external imbalances that it has managed to run, nor would its corporate sector have been able to incur as large a U.S. dollar denominated debt as its corporate sector has built up.

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Closer to home, Turkey's present economic debacle might remind us that there comes a day of reckoning for reckless macroeconomic policies. This would seem particularly pertinent in the current U.S. context where a massive unfunded tax cut together with public spending increases are expected to give rise to budget deficits in excess of 5 percent of GDP for as far as the eye can see.

It would be fanciful to think, as the Trump administration seems to do, that these budget deficits will not lead to a widening in the U.S. external current account deficit or that these deficits can be financed indefinitely without a dollar crisis at some point.''

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iehi-feed-64163 Wed, 08 Aug 2018 17:57:48 GMT TV maker laying off most workers, blaming Trump tariffs http://implode-explode.com/viewnews/2018-08-08_TVmakerlayingoffmostworkersblamingTrumptariffs.html President Donald Trump's tariffs against China are causing a South Carolina television maker to lay off nearly all of its employees because of the sudden increase in the price of components for its products.

Element TV Company will let 126 workers go, most of them on Oct. 5, leaving behind a skeleton crew of eight employees to watch the Fairfield County plant in hopes it can reopen in three to six months, the company said in a letter to state employment officials Monday.

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The Element plant opened to huge fanfare about five years ago. Trump's current U.N. Ambassador, Nikki Haley, was South Carolina governor at the time. In August 2014, she did a live video feed from the plant beamed to a Walmart manufacturing summit, where she spoke about how to bring manufacturing jobs back to the U.S. by selling her state.

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Tariffs could lead to more job losses in the state, especially in the auto industry. Swedish carmaker Volvo has said tariffs could prevent it from reaching its goal of 4,000 workers by 2021 at its just opened plant near Charleston. BMW has warned Trump administration officials that some if not many of its 10,000 workers at its plant near Spartanburg could have their jobs at risk if tariffs continue.

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iehi-feed-64148 Tue, 24 Jul 2018 23:26:30 GMT Trump's trade war is economic suicide http://implode-explode.com/viewnews/2018-07-24_Trumpstradewariseconomicsuicide.html Trump has long made clear that he wants Americans to pay higher prices for cars coming into the nation. On the campaign trail, he promised a tariff of 35 percent on "every car, every truck, and every part manufactured in Ford's Mexico plant that comes across the border." This past March, he threatened to impose tariffs on Europe' automobile manufacturers.

But even cars produced domestically will rise in price thanks to the president's economically illiterate trade interventions. As raw materials such as steel and aluminum rise in price, the cost of manufacturing each vehicle will rise. Manufacturers will pass those higher costs on to consumers.

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The damage extends beyond our wallets and pocketbooks. As domestic manufacturing costs increase, the competitiveness of some American producers decreases. 

Consider American Keg Company of Pennsylvania. Already, the company laid off a third of its workers due to rising steel costs.  Or take General Motors. The automobile giant has announced it might have to lower wages and cut jobs. 

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iehi-feed-64147 Tue, 24 Jul 2018 23:21:23 GMT Trump To Shell Out $12 Billion To Bail Out Farmers http://implode-explode.com/viewnews/2018-07-24_TrumpToShellOut12BillionToBailOutFarmers.html The Trump administration on Tuesday announced up to $12 billion in emergency relief for farmers hurt by the president's trade war, moving to insulate food producers from looming financial losses that would be a direct result of President Trump's policies.

The aid to farmers, announced by the United States Department of Agriculture, will come through a direct assistance program, one designed to help with food purchase and distribution and one specifically geared toward promoting trade.

The move is an indication that Mr. Trump -- ignoring the concerns of farmers, their representatives in Congress, and even some of his own aides about the adverse consequences of a trade war he says he relishes -- plans to plow forward in escalating his tariff tit-for-tat around the world.

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The plan, first reported by The Washington Post, was met with swift condemnation from Republicans and trade groups, who said that Mr. Trump had devised an expensive and clunky solution to a crisis of Depression-era proportions.

"This trade war is cutting the legs out from under farmers and White House's `plan' is to spend $12 billion on gold crutches," said Senator Ben Sasse, Republican of Nebraska. "This administration's tariffs and bailouts aren't going to make America great again, they're just going to make it 1929 again."

One trade group leader said farmers need contracts, not aid, for stability.

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iehi-feed-64139 Mon, 23 Jul 2018 22:43:51 GMT Tesla Hits Suppliers Up For Cash Back http://implode-explode.com/viewnews/2018-07-23_TeslaHitsSuppliersUpForCashBack.html Shares are down more than 3% after The Wall Street Journal reported that Tesla (TSLA) is asking some suppliers for partial refunds, another sign of a cash crunch at the company.

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The Journal cited a memo from a manager to a supplier, saying that all suppliers are being asked to help Tesla become profitable.

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A Tesla spokesman told CNNMoney that it asked "fewer than 10" suppliers for money back for long-term projects that began in 2016 and have not yet been completed, The spokesman said the cost savings will help Tesla increase its production volume, though he claimed Tesla would be profitable without the concessions.

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iehi-feed-64125 Wed, 18 Jul 2018 15:54:06 GMT Sea-Level Rise Could Knock Out Miami, NYC, Seattle Internet, Study Warns http://implode-explode.com/viewnews/2018-07-18_SeaLevelRiseCouldKnockOutMiamiNYCSeattleInternetStudyWarns.html iehi-feed-64122 Tue, 17 Jul 2018 22:33:13 GMT International Finance Watchdog Declares Cryptos Not A "Stability Risk" http://implode-explode.com/viewnews/2018-07-17_InternationalFinanceWatchdogDeclaresCryptosNotAStabilityRisk.html iehi-feed-64117 Sun, 15 Jul 2018 19:06:19 GMT Of Welfare Queens and Conservative Lies http://implode-explode.com/viewnews/2018-07-15_OfWelfareQueensandConservativeLies.html iehi-feed-64115 Sat, 14 Jul 2018 17:41:52 GMT Are We Running Out of Gold? http://implode-explode.com/viewnews/2018-07-14_AreWeRunningOutofGold.html iehi-feed-64113 Fri, 13 Jul 2018 21:44:28 GMT Logarithmic Analysis: Bitcoin Looks Set to Carve Out $4k-5k Low, Then Do a 10-Bagger http://implode-explode.com/viewnews/2018-07-13_LogarithmicAnalysisBitcoinLooksSettoCarveOut4k5kLowThenDoa10Bagg.html iehi-feed-64112 Fri, 13 Jul 2018 21:34:07 GMT Trump's Escalating Trade War With China Set to Backfire on Consumers http://implode-explode.com/viewnews/2018-07-13_TrumpsEscalatingTradeWarWithChinaSettoBackfireonConsumers.html China didn't take [Trump's initial] tariffs lying down... Instead, it responded by imposing tariffs on $34 billion worth of U.S. goods.That led to an even bigger retaliation by the White House. On Tuesday, Trump announced 10% tariffs on $200 billion worth of Chinese goods.

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China has vowed to "strike back hard, and launch comprehensive measures that match the U.S. move in quantity and quality." This means China could introduce more tariffs. It could also further devalue its currency to stay "competitive," which would encourage Trump to introduce even more tariffs.

In short, everyday goods could soon get a lot more expensive. And that's the last thing working-class Americans can afford... [And now] inflation is already creeping higher... We can see this in the Consumer Price Index (CPI), a broad measure of inflation. It's rising at its fastest pace since 2012.

The Producer Price Index (PPI), another popular measure of inflation, is also climbing fast. In fact, it just had the biggest yearly jump in nearly seven years.

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If the trade war escalates, other companies will have no choice but to [pass prices along to consumers]... And that could take a huge toll on consumer spending, which is by far the biggest segment of the U.S. economy.

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iehi-feed-64109 Fri, 13 Jul 2018 00:27:45 GMT Report: Michael Cohen Buys $6.7 Million Apartment in NYC http://implode-explode.com/viewnews/2018-07-12_ReportMichaelCohenBuys67MillionApartmentinNYC.html iehi-feed-64103 Tue, 10 Jul 2018 19:39:13 GMT Brexit chaos: After resignations, what happens next for British PM Theresa May? http://implode-explode.com/viewnews/2018-07-10_BrexitchaosAfterresignationswhathappensnextforBritishPMTheresaMa.html British Prime Minister Theresa May was trying to save her government Tuesday after it was damaged by a series of resignations over the nation's Brexit crisis.

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The turmoil came on top of preparations for this week's controversial visit by President Donald Trump and a thorny NATO summit meeting.

At the heart of the problem is progress, or lack of it, toward Britain's departure from the European Union, which former Secretary of State Madeleine Albright on Sunday described as "an exercise in economic masochism that Britons will long regret."

Foreign Secretary Boris Johnson and Brexit Secretary David Davis quit within hours of each other, along with a handful of junior ministers and aides.

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The resignations blew apart May's claim to have finally secured backing for her vision of Britain's future relationship with the E.U. -- a plan that was only agreed on Friday.

Their departure also exposed the scale of Britain's disarray: With only 262 days left until it leaves the trading bloc, and more than two years since the process began, the U.K. government still hasn't agreed what it wants Brexit to look like -- never mind negotiate with the E.U. to make it happen... The resignations triggered open warfare among Conservative lawmakers, who demanded May change her plan or stand aside... [reflecting] a decades-old fault line running through the Conservative Party over Britain's role in Europe, and whether it should be in or out of the E.U. The 2016 Brexit referendum was supposed to have settled the argument once and for all; instead, it appears to have deepened it.

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May has yet to publish her blueprint in full, but some details have leaked since they were circulated to ministers at Friday's 12-hour Cabinet meeting at the prime minister's Chequers country residence.

A three-page summary posted on the government website says Britain wants "a common rulebook for all goods" with the E.U. after Brexit -- ensuring that foods and consumer products would have the same standards.

The Chequers plan also proposes a "combined customs territory" between the U.K. and the E.U. but says "different arrangements" will be made for services "where it is in our interests to have regulatory flexibility."

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The mechanism by which Britain leaves the E.U., which is known as Article 50, has already been triggered and is theoretically irreversible.

But many anti-Brexit lawmakers are clinging to hopes that the whole project could be abandoned as too complex or unworkable.

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Tusk has said in the past that Britain could still change its mind and stay in the E.U. -- but that would require all other 27 nations in the bloc to agree and waive the terms of Article 50, which seems politically inconceivable after two years of painful divorce talks.

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iehi-feed-64097 Mon, 09 Jul 2018 01:32:44 GMT Tariffs cast a shadow as earnings season begins http://implode-explode.com/viewnews/2018-07-08_Tariffscastashadowasearningsseasonbegins.html iehi-feed-64093 Fri, 06 Jul 2018 18:44:52 GMT The Tunnel That Could Break New York (TRUMP BUNK ON INFRASTRUCTURE?) http://implode-explode.com/viewnews/2018-07-06_TheTunnelThatCouldBreakNewYorkTRUMPBUNKONINFRASTRUCTURE.html