Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64051 Fri, 22 Jun 2018 22:34:53 GMT China Just Handed the World a 111-Million-Ton Trash Problem http://implode-explode.com/viewnews/2018-06-22_ChinaJustHandedtheWorlda111MillionTonTrashProblem.html By 2030, an estimated 111 million metric tons of used plastic will need to be buried or recycled somewhere else--or not manufactured at all. That's the conclusion of a new analysis of UN global trade data by University of Georgia researchers.

Everyone's bottles, bags and food packages add up. Factories have churned out a cumulative 8.3 billion metric tons of new plastic as of 2017

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The world's plastic problem has been building for decades. Since mass production began in the early 1950s, annual output has grown from about 2 million tons to 322 million produced in 2015, the authors said. Current production rates are exceeding our ability to dispose of the stuff effectively--and supply is expected only to grow. "Without bold new ideas and management strategies, current recycling rates will no longer be met, and ambitious goals and timelines for future recycling growth will be insurmountable," they wrote.

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As the industry matured and the negative effects on public health and the environment became clear, China got more selective about the materials it was willing to buy. A "Green Fence" law enacted in 2013 kept out materials mixed with food, metals or other contaminants. Exports consequently dropped off from 2012 to 2013, a trend that continued until last year, when the world's biggest buyer warned that its scrap plastic purchases would stop altogether.

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iehi-feed-64048 Fri, 22 Jun 2018 17:19:11 GMT Fed Rate Cuts and QE Will Resume Soon http://implode-explode.com/viewnews/2018-06-22_FedRateCutsandQEWillResumeSoon.html Those who have openly subscribed in recent months to the robust-growth and higher-rates view include JPMorgan Chase CEO Jamie Dimon[marketwatch.com] and Morgan Stanley CEO James Gorman, and investors Paul Tudor Jones and Jeffrey Gundlach. There are many others.

In my view, this widely held wisdom is based on a profound misreading of economic and political reality and trends in the U.S. and around the world. I believe that a looming global recession and fear of deflation will lead the Fed to cut rates instead and reinstate quantitative easing, or QE, causing U.S. bond yields to fall.

First, it is important to understand that the 2008 financial crisis was never resolved. Aggressive fiscal- and monetary-policy tools--extremely low rates and multitrillion-dollar bond-buying programs--helped contain the crisis. But they didn't fix the problem. The global economy has been stabilized, but fundamental weaknesses remain.

An economic reckoning may surface as soon as the next few months.

In the U.S., second-quarter economic data look strong. But that is misleading. There are plenty of indications of weakness, including slowing sales of cars and houses, and a decline in mortgage refinancing. The cumulative effect of interest-rate hikes, frozen levels of real income, and rising oil prices will also weigh on the public's buying power.

In the corporate sphere, the boom in stock buybacks, which in May reached an astounding $174 billion, comes directly at the expense of capital investment that would boost economic growth. A potential global trade war is also detrimental; the U.S. dollar's weakness in 2017, combined with reinvigorated economies throughout the world, contributed immensely to U.S. exports...

June's interest-rate hike was most likely the last in the current cycle. The next major move by the Fed could be to lower rates, followed by more QE. The realization that this is happening will bring about a dramatic change in investors' views and will return U.S. bond yields to the 1.5%-2% level. The development, I believe, will be rapid and surprise a financial system dramatically underweight long-term bonds.

As we say, "happy times are here again" -- almost nonstop since 2009. So this editorial is bold call -- but it has really been a "bipolar" economy since the 2008 crisis; with every person able to see whatever they want to see in the mixed data... at some point, a clear trend will likely manifest...

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iehi-feed-64043 Wed, 20 Jun 2018 00:43:37 GMT Beijing has tactics besides just tariffs to hurt the U.S. in a trade war http://implode-explode.com/viewnews/2018-06-19_BeijinghastacticsbesidesjusttariffstohurttheUSinatradewar.html "It's true that the base on which they can put on additional tariffs is much narrow than the U.S.," said Ludovic Subran, global head of macroeconomic research at Allianz and chief economist at Euler Hermes.

But Subran and other international trade experts warn not to count China out too quickly.

"The first thing to observe here is that China is not a country of laws -- it's an authoritarian dictatorship... so from that opening point, China is potentially able to play much, much dirtier than the United States," said Jacob Kirkegaard, a senior fellow at the Peterson Institute for International Economics, who warned that American businesses could take the punishment for Trump's antagonism.

"He will essentially force the Chinese government to retaliate in other ways -- and those other ways can be much more costly to American firms," he said. "That belief is premised on a fundamentally erroneous assumption about how the modern economy works... and a lack of concern with how engaged American businesses are involved already in China."

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iehi-feed-64035 Sun, 17 Jun 2018 18:34:06 GMT Trade Acrimony With Canada -- Yes, It Can Flare Up Into Full-Scale Trade War http://implode-explode.com/viewnews/2018-06-17_TradeAcrimonyWithCanadaYesItCanFlareUpIntoFullScaleTradeWar.html iehi-feed-64034 Sun, 17 Jun 2018 18:30:57 GMT Venezuela Orders Government Services to Accept Any Cryptocurrency http://implode-explode.com/viewnews/2018-06-17_VenezuelaOrdersGovernmentServicestoAcceptAnyCryptocurrency.html iehi-feed-64028 Fri, 15 Jun 2018 22:56:54 GMT Cryptocurrency Manipulation Study Is Underwhelming http://implode-explode.com/viewnews/2018-06-15_CryptocurrencyManipulationStudyIsUnderwhelming.html iehi-feed-64027 Fri, 15 Jun 2018 22:50:24 GMT Citibank fined $100 million for LIBOR manipulation http://implode-explode.com/viewnews/2018-06-15_Citibankfined100millionforLIBORmanipulation.html The bank settled with attorneys general in 42 states for $100 million. Following an investigation, the states said Citibank manipulated Libor, a benchmark interest rate that helps set lending rates across the world.

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This is the third bank that settled with state attorneys general for illegally influencing the Libor. Barclays, Deutsche Bank and now Citibank have been fined $420 million collectively.

Citibank agreed to comply with ongoing investigations into other banks' Libor cases.

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iehi-feed-64025 Fri, 15 Jun 2018 22:43:58 GMT Wall St ends high-volume session lower on trade jitters http://implode-explode.com/viewnews/2018-06-15_WallStendshighvolumesessionlowerontradejitters.html iehi-feed-64023 Fri, 15 Jun 2018 14:10:12 GMT Trump Hits China With Tariffs On $50 Billion Of Goods; China Says It Will Retaliate http://implode-explode.com/viewnews/2018-06-15_TrumpHitsChinaWithTariffsOn50BillionOfGoodsChinaSaysItWillRetali.html iehi-feed-64005 Fri, 08 Jun 2018 21:57:52 GMT The Swiss are voting on the radical concept of "sovereign money" http://implode-explode.com/viewnews/2018-06-08_TheSwissarevotingontheradicalconceptofsovereignmoney.html Another response to crisis has been to give even more power and responsibility to a centralized authority. Switzerland's "sovereign money" referendum fits into this category. On Sunday (June 10), Swiss voters will decide whether to ditch the fractional-reserve banking system (pdf), in which banks create money as a byproduct of extending credit, lending out far more than they hold in deposits. The radical reform, called Vollgeld, would give the Swiss National Bank a monopoly over this power, and require commercial banks to lend only what they have on hand.

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It feels less revolutionary--maybe because I write so many bitcoin stories--but it's arguable that centralization has been a bigger force following the financial crash than a push towards the stateless, decentralized power promoted by the crypto crowd. There are fewer banks than before, and they're bigger and more profitable. Ordinary fiat bank deposits are growing. The US and Europe enacted sweeping regulatory overhauls that gave regulators more heft. The Swiss initiative, in fact, would give officials power that they don't even want.

The original title of this article calls the concept "the anti-bitcoin" -- but that's ridiculous, since any lending based on cryptocurrencies is also (by default) 100%-reserved.

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iehi-feed-64004 Fri, 08 Jun 2018 21:52:45 GMT Binance, NEO Lead $12 Million Investment In AngelList Spin-Off To Scale Up Crypto Fundraising http://implode-explode.com/viewnews/2018-06-08_BinanceNEOLead12MillionInvestmentInAngelListSpinOffToScaleUpCryp.html Revealed exclusively to CoinDesk, Republic, a crowdequity platform that can help ICO issuers manage token sales that was spun out of AngelList, has raised $12 million in commitments for a token presale.

Led by Binance Labs, the investing division of cryptocurrency exchange provider Binance, and NEO Global Capital, an affiliate of the public blockchain project of the same name, the round also drew support from East Chain Co., Jeffrey Tarrant and Passport Capital. (Investors purchased both the new crypto token and equity in the company.)

Looking ahead, the initial raise is part of Republic's interest in ultimately raising as much as $92 million total selling its crypto token, with a yet to be announced public sale.

According to Republic co-founder Kendrick Nguyen, the token will be used to incentivize users to take an active interest in their investments, by allowing Republic to potentially provide access to ICO deals and offer a share in the revenue earned by the company as it grows.

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"We will be doing a combination of Reg D, Reg S and Reg A+ to make sure our tokens are widely available, irrespective of income or net worth in the U.S. and beyond," Nguyen said, adding:

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iehi-feed-64003 Fri, 08 Jun 2018 21:47:51 GMT As U.S. Flexes Its Muscles On Trade, Other Countries Are Beginning To Push Back http://implode-explode.com/viewnews/2018-06-08_AsUSFlexesItsMusclesOnTradeOtherCountriesAreBeginningToPushBack.html iehi-feed-64000 Fri, 08 Jun 2018 00:25:41 GMT Starbucks Coffee Quietly Raises Prices--Again (NO INFLATION HERE...) http://implode-explode.com/viewnews/2018-06-07_StarbucksCoffeeQuietlyRaisesPricesAgainNOINFLATIONHERE.html iehi-feed-63985 Sat, 02 Jun 2018 11:50:40 GMT Trump May Have Brokered Massive, Sanctions-Violating Oil Deal In Russian Quid-Pro-Quo http://implode-explode.com/viewnews/2018-06-02_TrumpMayHaveBrokeredMassiveSanctionsViolatingOilDealInRussianQui.html Evidence strongly indicates that President Donald J. Trump and his campaign associates brokered a massive oil privatization deal, where his Organization facilitated a global financial transaction to sell Russian Oil stock to its Syrian War adversary, the Emirate of Qatar... The end result allowed Russia to trade stolen emails to help to Donald Trump's election campaign (as well as that of many Republican Congressmen), in exchange for help circumventing American sanctions to transact the sale of Rosneft, which Putin desperately needed to finance his budget deficit.

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Carter Page met with Rosneft in December to assist with the deal, and he's on the record admitting it but claims he didn't meet Igor Sechin," said Dworkin incredulously... mighty brokerage fee to one of the Trump campaign advisors, Moscow-based investment banker Carter Page, is highlighted in the former MI-6 operative's report.

Theoretically, the former Merrill Lynch investment banker, Page, may have only been the "bag man" or go-between and someone else is the recipient of the cash premium in the dossier. Five hundred million dollars is a lot of money, and conceivably, many members of the Trump Organization, or family, could be involved in a deal of that scope.

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Nineteen and a half percent of Rosneft's stock was agreed to be transferred on December 7th, before the board was informed of the transaction's terms only after it took place.

The "matryoshka" (named after the famous nesting dolls) or complex deal structure is most likely designed to avoid American sanctions imposed over the Ukraine invasion against Rosneft, its CEO Igor Sechin, and its parent company Gazprom.

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iehi-feed-63958 Sun, 20 May 2018 17:59:10 GMT China Shoots Down Trump's $200 Billion Trade Target; But Gets "Pause" In Tariffs Anyways http://implode-explode.com/viewnews/2018-05-20_ChinaShootsDownTrumps200BillionTradeTargetButGetsPauseInTariffsA.html iehi-feed-63954 Fri, 18 May 2018 15:00:00 GMT Crude oil may be above $70 but the US frackers are still struggling http://implode-explode.com/viewnews/2018-05-18_Crudeoilmaybeabove70buttheUSfrackersarestillstruggling.html iehi-feed-63936 Wed, 09 May 2018 21:51:30 GMT Cynthia Nixon: Marijuana industry could be 'a form of reparations' http://implode-explode.com/viewnews/2018-05-09_CynthiaNixonMarijuanaindustrycouldbeaformofreparations.html She expressed support for what is known as an "equity" program, which would prioritize giving marijuana business licenses to people who have received marijuana convictions in the past.

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In New York in 2017, 86 percent of fifth-degree marijuana arrests were of people of color, while only 9 percent of those arrested were white, despite data showing that black and white people are about equally likely to use marijuana.

Oakland, Calif., and Massachusetts have both launched marijuana equity programs in conjunction with legalization.

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iehi-feed-63918 Thu, 03 May 2018 00:05:59 GMT $3 gas coming to a station near you (TRUMPED AT THE PUMP??) http://implode-explode.com/viewnews/2018-05-02_3gascomingtoastationnearyouTRUMPEDATTHEPUMP.html Concerns that President Donald Trump is about to impose new sanctions on Iran have sent oil prices climbing, and gas prices are coming along for the ride.

The national average price is up to $2.81 a gallon according to AAA, an increase of 3 cents in the last week, and 15 cents in the last month. This is the highest prices have been since 2014.

And more price hikes are on the horizon. The Oil Price Information Service, which tracks prices for AAA, expects the national average to rise to about $3 a gallon sometime this month. The good news is that prices are likely to creep lower once they reach that peak.

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The president has until May 12 to decide whether the US will stay in a deal with Iran meant to curb its nuclear program, or pull out of the agreement and once again impose sanctions on the country.

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iehi-feed-63878 Wed, 18 Apr 2018 19:26:30 GMT US crude tops $68 for the first time in more than three years http://implode-explode.com/viewnews/2018-04-18_UScrudetops68forthefirsttimeinmorethanthreeyears.html iehi-feed-63852 Wed, 11 Apr 2018 21:54:48 GMT Venezuela in apparent "Stealth Default"; stopped bond payments in September http://implode-explode.com/viewnews/2018-04-11_VenezuelainapparentStealthDefaultstoppedbondpaymentsinSeptember.html Venezuela stopped paying bondholders in September, according to central bank data, contradicting statements by President Nicolás Maduro that the country would continue to honour its debts while negotiating a resettlement with its creditors.The data show that regular foreign debt payments of hundreds of millions of dollars a month, in line with the country's sovereign obligations, fell to a few tens of millions from last October for fees and the legacy of a 1980s-era restructuring."This proves that Venezuela is deliberately hoodwinking bondholders and engaging in a stealth default," said Russ Dallen of boutique bank Caracas Capital, who follows Venezuelan debt closely.The data were posted in an Excel file as part of a recent revamp of the central bank's website and include monthly expenditures in US dollars on public foreign debt payments going back to 1996. Previously, data on foreign debt payments were published in the form of a ratio that revealed little information, Mr Dallen said. "This must have been posted by an intern," he added.

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The central bank data, which cover payments of sovereign debt only and exclude obligations by PDVSA and other state entities, show that just $83m was paid in October, compared with sovereign obligations amounting to $465m, according to data from Caracas Capital.Payments in November fell to $28m, compared with obligations of $183m, and in December declined to $23m, compared with obligations of $242m.

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"They have been doing it [defaulting] strategically to sow confusion. They have said they have begun the process of paying things they clearly did not pay, and blamed it all on sanctions."The US has imposed several rounds of sanctions on Venezuelan individuals and institutions. Adding to pressures last August, it also banned any involvement in new bonds or shares issued by the government or PDVSA. Last month it prohibited involvement in the country's proposed digital currency, the petro, as well

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