Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64643 Sun, 24 Mar 2019 19:16:16 GMT "Is the world running out of gold?" - Mainstream Catching On http://implode-explode.com/viewnews/2019-03-24_IstheworldrunningoutofgoldMainstreamCatchingOn.html The murmurs that the world is running out of gold deposits have grown louder in the past two years... Gold production reaching its peak levels is nothing new. The production of the yellow metal has reached its highest levels on at least four occasions in the past before witnessing sharp declines.

But many say there is something that makes the current gold peak stand out: There is simply no new major gold deposit left to be discovered.

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Gold has been hovering around the psychological level of $1,300 an ounce since the beginning of this year -- a far cry from the highs of $1,800 an ounce witnessed in 2011-12. Analysts estimate that a minimum price of $1,500 per ounce is needed to maintain current production levels.

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The prospective impact of a lack of "world class" discoveries on future gold production can be gauged from the fact that such mines account for nearly half of the global gold production today.

The average grade of the new gold deposits -- the amount of gold that can be extracted per ton -- has also been declining. The average mine grade has fallen from over 10 gram per ton in the early 1970s to around 1.4 grams per ton today, according to Metals Focus, a precious metals consultancy.

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Analysts expect gold prices to rise in the longer term as gold mine supply struggles to expand. High prices and technological advancements are expected to push miners to explore new frontiers for the precious metal, including the seabed and possibly even asteroids.

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"In future most of the gold supply will come from recycling and not mining," Miller said.

The World Gold Council expects the demand for gold in jewelry to increase over the next 30 years "in a richer, more middle-class, connected world."

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iehi-feed-64626 Sat, 09 Mar 2019 15:52:14 GMT Venezuela's Power Outage Draws Its Leaders Into Deeper Tensions http://implode-explode.com/viewnews/2019-03-09_VenezuelasPowerOutageDrawsItsLeadersIntoDeeperTensions.html iehi-feed-64579 Tue, 12 Feb 2019 09:28:22 GMT Reason #437 to own gold: The Fed wants Negative Interest Rates http://implode-explode.com/viewnews/2019-02-12_Reason437toowngoldTheFedwantsNegativeInterestRates.html ... after a 20% drop in US stocks, the Fed has taken its foot off the pedal. But the people still want more... Both the European Central Bank and the Bank of Japan were supposed to start tightening policy and raising rates... now, they are both considering cutting interest rates even deeper into negative territory.

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The President of the Federal Reserve Bank of St. Louis thinks current interest rates are "too restrictive." He too wants lower rates.

The San Francisco Fed agrees -- they were singing the praises of negative interest rates in a recent research paper, saying they would have helped the economy recover even faster after 2008.

And SocGen economist Albert Edwards thinks the US will see negative interest rates and helicopter money (meaning central banks will print money and give it directly to the people) during the next recession.

Now that the public is once again being reminded that the Fed and its cohorts have no credibility, let's see if hard assets come back, as they should...

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iehi-feed-64571 Mon, 04 Feb 2019 21:49:44 GMT Huawei Sting Offers Rare Glimpse of U.S. Targeting Chinese Giant http://implode-explode.com/viewnews/2019-02-04_HuaweiStingOffersRareGlimpseofUSTargetingChineseGiant.html

The sample looked like an ordinary piece of glass, 4 inches square and transparent on both sides. It'd been packed like the precious specimen its inventor, Adam Khan, believed it to be--placed on wax paper, nestled in a tray lined with silicon gel, enclosed in a plastic case, surrounded by air bags, sealed in a cardboard box--and then sent for testing to a laboratory in San Diego owned by Huawei Technologies Co. But when the sample came back last August, months late and badly damaged, Khan knew something was terribly wrong. Was the Chinese company trying to steal his technology?

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This investigation, which hasn't previously been made public, is separate from the recently announced grand jury indictments against Huawei. On Jan. 28, federal prosecutors in Brooklyn charged the company and its chief financial officer, Meng Wanzhou, with multiple counts of fraud and conspiracy. In a separate case, prosecutors in Seattle charged Huawei with theft of trade secrets, conspiracy, and obstruction of justice, claiming that one of its employees stole a part from a robot, known as Tappy, at a T-Mobile US Inc. facility in Bellevue, Wash. "These charges lay bare Huawei's alleged blatant disregard for the laws of our country and standard global business practices," Christopher Wray, the FBI director, said in a press release accompanying the Jan. 28 indictments. "Today should serve as a warning that we will not tolerate businesses that violate our laws, obstruct justice, or jeopardize national and economic well-being." Huawei has denied the charges.

If the new investigation bears fruit, it could, along with the indictments, bolster the Trump administration's effort to block Huawei from selling equipment for fifth-generation, or 5G, wireless networks in the U.S. and allied nations. The U.S. believes Huawei poses a national security threat, in part, because it could build undetectable backdoors into 5G hardware and software, allowing the Chinese government to spy on American communications and wage cyberwarfare. Huawei has said this is political posturing aimed at harming a Chinese company, and skeptics have pointed out that the T-Mobile allegation has since been settled in civil court and concerns events that played out more than a half-decade ago. "If Tappy is as far as they've gotten on [intellectual property] theft, that seems to be pretty thin gruel," Adam Segal, a cybersecurity expert at the Council on Foreign Relations told the Washington Post recently.

... if the government does conclude that Akhan was attacked, that a Chinese multinational really did target a tiny Chicago company with no revenue and no customers (as of yet), it would show just how far and wide Huawei is willing to go to steal American trade secrets. "I think they're identifying technologies that are key to their road map and going after them no matter what the size or scale or status of the business," Khan says. "I wouldn't say they're discriminating."''

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iehi-feed-64569 Mon, 04 Feb 2019 00:03:47 GMT Delayed, not saved: Foxconn's Wisconsin http://implode-explode.com/viewnews/2019-02-03_DelayednotsavedFoxconnsWisconsin.html The factory is not back on. LCDs are pure commodities, among the lowest-margin components, and about to be made obsolete by OLEDs. There is zero business-case for building these outside of Asia-Pacific. It was a stunt, it was always a stunt, just like it was a stunt all the other times they did it.

The reason for the announcement is that Donald Trump called them up and asked them to announce that the factory would be built. Donald Trump will be president for two or fewer years, during which time Foxconn can dither and dick around and do very little, and then they can announce that the factory is off. This news will be welcomed by Trump's successor, from either party, as a way to further discredit him.

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iehi-feed-64559 Thu, 31 Jan 2019 23:23:50 GMT Central Banks Are Buying Gold at the Fastest Clip Since 1971 http://implode-explode.com/viewnews/2019-01-31_CentralBanksAreBuyingGoldattheFastestClipSince1971.html Central banks bought more bullion last year than anytime since 1971, when the U.S. ended the gold standard.Governments added 651.5 tons of gold to their coffers in 2018, a 74 percent increase from the previous year, according to a report from the World Gold Council.

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Central banks are expected to acquire an additional 600 tons this year, according to the consulting firm Metals Focus Ltd. The buys, which will help the banks diversify their foreign-exchange assets in a time of extraordinary political volatility, signal a growing confidence in the metal's value moving forward.

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The banks "were not net buyers even a decade ago," said Juan Carlos Artigas, director of investment research at the WGC, in a telephone interview. "As their foreign reserves expand, they are increasingly diversifying away from pure dollar exposure."

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iehi-feed-64557 Wed, 30 Jan 2019 23:35:57 GMT EU rejects Theresa May's plans to change Brexit deal http://implode-explode.com/viewnews/2019-01-30_EUrejectsTheresaMaysplanstochangeBrexitdeal.html "The Withdrawal Agreement is not open for renegotiation," said European Council President Donald Tusk. "Yesterday, we found out what the UK doesn't want. But we still don't know what the UK does want."

Other frustrated EU officials, including Brexit negotiator Michel Barnier, insisted the remaining 27 EU members were united and determined not to abandon the backstop they believe is key to maintaining peace on the border.

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Under the terms of the withdrawal agreement, the whole of the UK will remain in a customs union in relation to trade in goods with the EU "unless and until" the bloc agrees there is no prospect of a return to a hard border, while Northern Ireland will also conform to some rules of the European single market.

UK legislators critical of the clause say it threatens the integrity of the the UK's borders and could even lead to the UK staying within the EU customs union permanently.

Critics have argued for the inclusion of a mechanism to allow either side to withdraw from the backstop or a limit to how long it can last.

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iehi-feed-64550 Mon, 28 Jan 2019 00:52:33 GMT The Financial Secret Behind Germany's Green Energy Revolution http://implode-explode.com/viewnews/2019-01-27_TheFinancialSecretBehindGermanysGreenEnergyRevolution.html iehi-feed-64549 Sun, 27 Jan 2019 21:57:12 GMT Forever stamps to jump to 55 cents, biggest increase in USPS history http://implode-explode.com/viewnews/2019-01-27_Foreverstampstojumpto55centsbiggestincreaseinUSPShistory.html iehi-feed-64540 Thu, 17 Jan 2019 21:02:50 GMT Brexit: France activates no-deal plan; Others likely follow http://implode-explode.com/viewnews/2019-01-17_BrexitFranceactivatesnodealplanOtherslikelyfollow.html The Netherlands' foreign trade minister, Sigrid Kaag, said on Wednesday night that the Netherlands was launching a major information campaign on 28 January.

"After Ireland, the Dutch economy is most entwined with that of the UK," she said, citing fisheries, meat-processing and flower exports. She warned that many small and medium enterprises had failed to make sufficient preparation for a no-deal Brexit.

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Germany's foreign minister, Heiko Maas, said on Thursday that plans for a disorderly Brexit would have to be stepped up.

"In the coming days and weeks, we will do everything we can so that Britain exits with and not without an agreement," he told the Bundestag (German parliament).

Spain said on Thursday that staffing of immigration offices would be beefed up if the UK left the EU without a deal. Some 310,000 UK citizens live in Spain and they would have to confirm their residency under a no-deal Brexit, officials said.''

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iehi-feed-64529 Fri, 11 Jan 2019 01:28:00 GMT Mnuchin becomes first Trump official called by Democratic House to answer questions about Russia http://implode-explode.com/viewnews/2019-01-10_MnuchinbecomesfirstTrumpofficialcalledbyDemocraticHousetoanswerq.html iehi-feed-64505 Tue, 01 Jan 2019 00:38:06 GMT Happy New Year! May Your City Never Become San Francisco, New York or Seattle http://implode-explode.com/viewnews/2018-12-31_HappyNewYearMayYourCityNeverBecomeSanFranciscoNewYorkorSeattle.html In truth, most of these cities have qualities other cities would reasonably desire. Denver has one of the country's fastest-growing tech labor forces, with minorities and women relatively well represented in those jobs. Seattle and Portland have among the fastest all-around job growth. New York has some of the fastest-growing wages. San Francisco has unemployment well below the national average and household incomes among the highest in the country.

But San Francisco-ization and the other -izations don't refer to the process of acquiring any of these good things. Rather, those terms capture the deepening suspicion of many communities that the costs of urban prosperity outweigh the benefits. The tech jobs and the high wages aren't worth having if they come with worsening congestion, more crowded development or soaring housing costs.

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Embedded in these fears is something slippery, seemingly inevitable. Once you let tech giants in the door, you have a homeless crisis. Once you allow more density, you're surrounded by skyscrapers. Once housing costs begin to rise, the logical conclusion is San Francisco.

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It's much harder to point to cities that have gotten all of this right -- the growth without the congestion, the tech jobs without the homeless crisis, the affordable housing without the sprawl.

We could use a word for the condition of becoming such a place. Maybe Minneapolisization?

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iehi-feed-64488 Fri, 21 Dec 2018 00:36:03 GMT Dow sinks below 23,000; Nasdaq flirts with a bear market; Oil in free fall http://implode-explode.com/viewnews/2018-12-20_Dowsinksbelow23000NasdaqflirtswithabearmarketOilinfreefall.html The latest wave of selling shows how worried investors have become about the eventual demise of the economic expansion. Those jitters were exacerbated by concerns that the Federal Reserve is making a mistake by continuing to raise interest rates.

"Equity markets are quickly approaching the capitulation phase after having broken below critical support," Sam Stovall, chief investment strategist at CFRA Research, told CNN Business.

Market sentiment wasn't helped by a surprise deepening in the budget fight in Washington either. House Speaker Paul Ryan said President Donald Trump won't sign the spending bill needed to prevent a government shutdown. Although a short-term shutdown would not have a large impact on the national economy, it would serve as a reminder of government dysfunction.

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iehi-feed-64478 Mon, 17 Dec 2018 18:52:57 GMT Hemp industry expected to blossom under new Farm Bill http://implode-explode.com/viewnews/2018-12-17_HempindustryexpectedtoblossomundernewFarmBill.html The U.S. hemp industry is expecting business to expand and investors to beckon after Congress on Wednesday passed farm legislation that included a provision to legalize and regulate the plant under the Department of Agriculture.

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That could open the industry, which produces therapeutic cannabidiol (CBD), fabric, rope and even ethanol, to a wave of investment.

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Cannabidiol has been touted as an elixir that can do everything from cure cancer to tame menstrual cramps, but so far the U.S. Food and Drug administration has only approved a specific formulation of CBD to treat seizures associated with rare forms of epilepsy.

The bill "puts forth a whole-plant definition of hemp including extracts," said Stansbury of the Hemp Industries Association. "We're not just talking stalk or flower. Any product derived from hemp is a legal consumer product."

But for now at least the FDA could stand in the way.

It states that CBD products can't be sold as dietary supplements and that those making medical claims are illegal without its approval. However, the FDA aims its most serious enforcement efforts at products "marketed for serious or life threatening diseases," according to a statement.

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Under the bill, CBD products derived from hemp and containing 0.3 percent or less of the high-inducing cannabinoid THC will be considered legitimate.

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iehi-feed-64461 Tue, 11 Dec 2018 05:09:50 GMT Manic Monday: Britain plunges deeper into Brexit crisis http://implode-explode.com/viewnews/2018-12-11_ManicMondayBritainplungesdeeperintoBrexitcrisis.html It all started in the morning, when in a landmark ruling the European Union's top court said the UK may unilaterally reverse its decision to leave the 28-member bloc prior to its scheduled exit on March 29 next year.

By early noon, May's already tenuous grip on Brexit appeared further weakened as whispers began to circulate that she would postpone a parliamentary voteon the widely criticised Brexit deal she negotiated with the EU, contradicting statements made by several officials earlier in the day.

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When May finally announced that Tuesday's vote was being delayed, acknowledging that her agreement would have been rejected, opposition MPs accused her of "losing control of events" and members of her own ruling party called on her to "govern or quit".

"The situation is utterly confused," said Simon Usherwood, a reader in politics at the University of Surrey and deputy director of the UK in a Changing Europe group.

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iehi-feed-64452 Fri, 07 Dec 2018 21:22:48 GMT Dow plunges for third straight day on weak jobs report and renewed trade tensions http://implode-explode.com/viewnews/2018-12-07_Dowplungesforthirdstraightdayonweakjobsreportandrenewedtradetens.html The Dow Jones Industrial Average dropped by 558 points on Friday, capping a wild week of trading that saw the blue-chip index lose more than 4 percent of its value.

The Dow started the day with a spike of 150 points after the Department of Labor released a generally tepid jobs report, only to plummet by mid-afternoon to a session low of 662 points down as markets continued to absorb the destabilizing impact of President Donald Trump's protectionist trade policies.

The broader S&P 500 lost 2.3 percent of its value, and a tech sell-off fueled a drop of 3 percent on the Nasdaq composite index. Tech giants Alphabet and Apple both lost all of their gains for the year. Apple's share price has been steadily falling after a litany of analysts cut their price targets for the smartphone maker amid concern over waning demand for the iPhone.

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iehi-feed-64449 Thu, 06 Dec 2018 20:16:32 GMT Does Trump Even Understand How Tariffs Work? http://implode-explode.com/viewnews/2018-12-06_DoesTrumpEvenUnderstandHowTariffsWork.html This weekend, President Donald Trump announced a major economic deal with Beijing. "China has agreed to reduce and remove tariffs on cars," he wrote on Twitter. "Farmers will be a a very BIG and FAST beneficiary of our deal with China. They intend to start purchasing agricultural product immediately," he added. "Farmers, I LOVE YOU!"

A few days later, Trump flip-flopped. "We are either going to have a REAL DEAL with China, or no deal at all--at which point we will be charging major Tariffs," he wrote. "If a fair deal is able to be made with China, one that does all of the many things we know must be finally done, I will happily sign. Let the negotiations begin."

These quick-succession declarations roiled markets: Stock prices bounced and then plunged as traders responded to good news (a potential U.S.-China deal) and bad (the apparent lack of a "REAL DEAL"). It seems trade wars are not, in fact, good and easy to win--especially if it is not clear what winning looks like. For all of Trump's bellowing about tariffs and China and trade, his goals and strategies remain confused and confusing, and much of what he wishes to accomplish might be impossible.

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iehi-feed-64443 Wed, 05 Dec 2018 00:23:24 GMT Dow dives nearly 800 points on fears of economic slowdown http://implode-explode.com/viewnews/2018-12-04_Dowdivesnearly800pointsonfearsofeconomicslowdown.html The Dow Jones Industrial Average plunged on Tuesday amid fears of an economic downturn, led by disappointing bank earnings and unresolved trade issues between the U.S. and China.

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"People think there is not 'substance' behind Trumps tweets about tariffs so the markets are giving back the gains from before the G20 meeting," Michael Matousek, head trader at U.S. Global Investors, told ABC News.

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iehi-feed-64439 Mon, 03 Dec 2018 02:20:05 GMT Dow futures surge after Trump and Xi agree to pause the  trade war http://implode-explode.com/viewnews/2018-12-02_DowfuturessurgeafterTrumpandXiagreetopausethetradewar.html iehi-feed-64433 Thu, 29 Nov 2018 18:39:01 GMT Wall Street Falls as Investors Turn to G20 Trade Talks http://implode-explode.com/viewnews/2018-11-29_WallStreetFallsasInvestorsTurntoG20TradeTalks.html Investors are looking ahead to U.S.-China trade war developments as U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to hold talks on the sidelines of the G20 at the end of the week.

Meanwhile, the Fed's November meeting minutes will be released later in the day, with investors looking for any fresh indications of interest rate plans. Data released on Thursday showed that consumer spending surged in October, while underlying inflation slowed. The Fed's preferred inflation measure, the core personal consumption expenditures price index, rose 0.1%.

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