Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-58944 Mon, 08 Feb 2016 21:24:54 GMT BOMBSHELL: A Week After Silver "Fix" Broken; 6 Large Miners Ditch LME http://implode-explode.com/viewnews/2016-02-08_BOMBSHELLAWeekAfterSilverFixBroken6LargeMinersDitchLME.html iehi-feed-58942 Mon, 08 Feb 2016 17:21:48 GMT Wall St. in selloff mode as techs extend rout, oil falls http://implode-explode.com/viewnews/2016-02-08_WallStinselloffmodeastechsextendroutoilfalls.html iehi-feed-58937 Sun, 07 Feb 2016 21:19:02 GMT Debt, defaults, and devaluations: why this market crash is like nothing we've seen before http://implode-explode.com/viewnews/2016-02-07_Debtdefaultsanddevaluationswhythismarketcrashislikenothingwevese.html For many market watchers, a confluence of factors - led by oil, but encompassing China, the emerging world, and financial markets - are all brewing to create a perfect storm in a global economy that has barely come to terms with the Great Recession... Unlike previous pre-recessionary eras, the current sell-off has seen commodity prices, equities and credit conditions all move in dangerous lockstep.

... a tipping point may well be approaching. According to [Oliver] Blanchard's calculations, a 20pc decline in stock markets that persists for more than six months, will translate into a decline in consumption of between 0.5pc to 1.0pc.

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Spreads on high yield US energy corporates have soared to unprecedented highs. "They make Lehman look like a walk in the park" says Thygesen.

More than a third of the entire US high yield bond index is now vulnerable to crude prices remaining low or falling even further, according to calculations from Oxford Economics.

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The question exercising the minds of economists and investors is the extent to which this contagion could metastasize beyond the energy sector, as banks cut off credit access, loans turn bad, and financial conditions enter a critical tightening phase.

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Over the last 45 years, the S&P500 has suffered a loss of more than 12.5pc on 13 occasions. Six of these have given way to a recession in the US, providing a near 50pc probability that a global downturn is just around the corner.

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What, if anything, could halt this pernicious cycle of events from unfolding?

In the short-term, analysts are unanimous: all eyes are on the US Federal Reserve. The central bank's first rate hike in seven years last December has come to look frighteningly premature in the space of just eight weeks.

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iehi-feed-58933 Sun, 07 Feb 2016 21:01:47 GMT $100 Trillion Up in Smoke http://implode-explode.com/viewnews/2016-02-07_100TrillionUpinSmoke.html iehi-feed-58926 Sat, 06 Feb 2016 13:09:12 GMT Iran Dumps Dollar in Foreign Oil Sales / Sputnik International http://implode-explode.com/viewnews/2016-02-06_IranDumpsDollarinForeignOilSalesSputnikInternational.html iehi-feed-58924 Sat, 06 Feb 2016 12:20:26 GMT Oil Rout Threatens Vicious Cycle for Economy http://implode-explode.com/viewnews/2016-02-06_OilRoutThreatensViciousCycleforEconomy.html Rising debt costs for oil and gas companies last month pushed a ratio of corporate distress maintained by Standard & Poor's to its highest level since July 2009, when the last recession ended.

If a lending slowdown "were to broaden out beyond just energy and mining, that would be a concern," Mr. Rosenberg said...

Economic gauges already indicate an industrial recession. The Federal Reserve reported this month that its index of industrial production had fallen 1.8% over the year ended December, a drop that has always been accompanied by a recession since the 1970s.

Even though the U.S. economy has grown far more focused on providing services than producing goods, it is more exposed to commodity-price declines because "a lot of the services conducted in our economy are done in support of produced materials," said Mr. Alpert. Ultimately, deflation in the goods sector could squeeze service providers, too.

... others worry shifts in the global economy have made the U.S. is less insulated today, which means models from the Fed and others may overemphasize domestic activity and inadequately capture cross-border spillovers.

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iehi-feed-58908 Thu, 04 Feb 2016 17:22:54 GMT Oil Spikes Near $33 After Turkey-To-Invade-Syria Rumor http://implode-explode.com/viewnews/2016-02-04_OilSpikesNear33AfterTurkeyToInvadeSyriaRumor.html iehi-feed-58904 Thu, 04 Feb 2016 14:02:21 GMT Oil bears closing of $600 million triple-short fund bet seen adding to tumult http://implode-explode.com/viewnews/2016-02-04_Oilbearsclosingof600milliontripleshortfundbetseenaddingtotumult.html "Speculators are getting out of the down oil market. People start unwinding these positions because they think they have gotten their juice out of it," David Nadig, vice president, director of exchange traded funds for FactSet, said.

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The net asset value of the fund - one of a handful of exchange funds that allows investors to trade oil without the complexity of a futures exchange - fell from close to $1 billion to $417 million on Tuesday and to $322 million on Wednesday, according VelocityShares' website.

As a result, the mass exodus likely forced the ETN's issuer, Credit Suisse, to quickly buy back short positions as investors redeemed shares.''

But the long-term damage is done as Shell to lay of 10,000.

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iehi-feed-58900 Thu, 04 Feb 2016 13:47:56 GMT Ronald Stoeferle - "2016 Will Be A Good Year For Gold Investors" (Interview) http://implode-explode.com/viewnews/2016-02-04_RonaldStoeferle2016WillBeAGoodYearForGoldInvestorsInterview.html iehi-feed-58898 Thu, 04 Feb 2016 00:55:15 GMT Rockefellers Play With Fire: The Oil Scheme is Getting More Dangerous http://implode-explode.com/viewnews/2016-02-03_RockefellersPlayWithFireTheOilSchemeisGettingMoreDangerous.html iehi-feed-58897 Thu, 04 Feb 2016 00:39:59 GMT The Great Credit Unwind! - Bill Holter http://implode-explode.com/viewnews/2016-02-03_TheGreatCreditUnwindBillHolter.html iehi-feed-58896 Thu, 04 Feb 2016 00:33:51 GMT Goodbye Petrodollar: Russia Accepts Yuan, Is Now China's Biggest Oil Partner http://implode-explode.com/viewnews/2016-02-03_GoodbyePetrodollarRussiaAcceptsYuanIsNowChinasBiggestOilPartner.html iehi-feed-58880 Mon, 01 Feb 2016 20:17:32 GMT Oil price crash: Saudis told to embrace austerity as debt defaults loom http://implode-explode.com/viewnews/2016-02-01_OilpricecrashSaudistoldtoembraceausterityasdebtdefaultsloom.html The Saudis have been burning through their reserves at a record pace to protect the riyal's fixed value against a soaring dollar, and should continue to preserve the peg at all costs, said the IMF... any moves to jettison a stable currency, or embark on massive fiscal austerity, could erode the social fabric of the Gulf oil producing nations five years on from the Arab Spring.

Saudi Arabia is set to slash subsidies on water and electricity, and must begin to overhaul its generous fuel subsidies for its 30 million people, recommended the Fund.

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IMF calculations suggests Saudi Arabia could be running a deficit of around $140bn (£94bn), far above the government's own estimates of around $98bn, or 15pc of GDP.

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iehi-feed-58879 Mon, 01 Feb 2016 20:00:40 GMT Gold and Gold Stocks -- A Meaningful Reversal? http://implode-explode.com/viewnews/2016-02-01_GoldandGoldStocksAMeaningfulReversal.html iehi-feed-58875 Mon, 01 Feb 2016 15:30:44 GMT France to pave 1000km of roads with solar panels http://implode-explode.com/viewnews/2016-02-01_Francetopave1000kmofroadswithsolarpanels.html iehi-feed-58864 Sun, 31 Jan 2016 15:39:41 GMT Macleod: China to Regain Footing; Eurozone to Re-Ignite Financial Crisis http://implode-explode.com/viewnews/2016-01-31_MacleodChinatoRegainFootingEurozonetoReIgniteFinancialCrisis.html iehi-feed-58863 Sun, 31 Jan 2016 15:36:25 GMT ANOTHER NAIL IN THE U.S. EMPIRE COFFIN: Collapse Of Shale Gas Production Has Begun http://implode-explode.com/viewnews/2016-01-31_ANOTHERNAILINTHEUSEMPIRECOFFINCollapseOfShaleGasProductionHasBeg.html iehi-feed-58862 Sun, 31 Jan 2016 15:04:04 GMT IT BEGINS... Primary Silver Mining Company To Cut Production 25% In 2016 http://implode-explode.com/viewnews/2016-01-31_ITBEGINSPrimarySilverMiningCompanyToCutProduction25In2016.html iehi-feed-58858 Fri, 29 Jan 2016 21:59:16 GMT And Now For a Hard Drop In Comex Deliverable Silver... http://implode-explode.com/viewnews/2016-01-29_AndNowForaHardDropInComexDeliverableSilver.html iehi-feed-58856 Fri, 29 Jan 2016 18:15:36 GMT Silver market in disarray after benchmark price fixed far below spot rate http://implode-explode.com/viewnews/2016-01-29_Silvermarketindisarrayafterbenchmarkpricefixedfarbelowspotrate.html The silver market was thrown into disarray on Thursday after the LBMA Silver Price was set 84 cents below the spot and futures price this morning.

The LBMA Silver Price -- the crucial daily benchmark used by producers and traders around the world to settle silver products and derivatives contracts -- was set at $13.58 per ounce.

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Another source also suggested that the continued existence of the fix has been put in jeopardy by the huge discrepancy in today's price, adding that many producers -- who still use the price as their daily reference -- may have lost significant amounts of money if any contracts have been settled according to the fix.

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CME and Thomson Reuters won the battle to provide the methodology and price platform for the daily process back in July 2014, replacing the 117-year old fix in August that year under sweeping reforms of the entire precious metals complex.

See also Bron Suchecki - LBMA Silver "Price": A Perfect Storm of Stupidity.

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