Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-63142 Sun, 15 Oct 2017 21:33:53 GMT Grim reality of NAFTA talks sets in after tough U.S. opening demands http://implode-explode.com/viewnews/2017-10-15_GrimrealityofNAFTAtalkssetsinaftertoughUSopeningdemands.html "The atmosphere is complicated," one trade official told reporters, adding that his fears about some "pretty harsh, pretty horrible" demands from the U.S. side of the negotiating table were coming true...

One of the U.S. proposals unveiled this week would require that 50 percent of the value of all NAFTA-produced cars, trucks and large engines come from the United States, people briefed on the negotiations said.

The same proposal calls for a sharp increase in NAFTA's regional automotive content requirement, boosting it to 85 percent from the current 62.5 percent. The existing level is already the highest local content requirement of any trading bloc in the world. [L2N1MO0U5]

Meanwhile, the Trump administration's call for a so-called NAFTA sunset clause would effectively trigger a renegotiation of the pact every five years.

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One of Lighthizer's predecessors, Robert Zoellick, said he thought there was a 50-50 chance Trump would quit NAFTA. "He's trying to go back to make trade agreements fix the bilateral trade deficit. I don't believe he can be successful in doing that," Zoellick, now non-executive chairman of AllianceBernstein, told a banking conference in Washington on Saturday.''

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iehi-feed-63134 Sat, 14 Oct 2017 16:24:13 GMT Trump Isn't Certifying the Iran Deal--What Happens Next? http://implode-explode.com/viewnews/2017-10-14_TrumpIsntCertifyingtheIranDealWhatHappensNext.html ... even if Trump's gambit to decertify and threaten the JCPOA did some harm to Iran, the international reaction would produce far less net economic and diplomatic pressure on Iran than existed before the JCPOA was finalized. And it is literally insane to believe that it is possible to produce 150 percent of the current deal with 50, 70, or even 99 percent of the leverage the United States possessed in 2015. It simply ignores the laws of diplomatic physics. ...

... Trump's move to decertify could end up the way his push for health-care reform did--with a whole lot of posturing and debate and false starts in Congress, and little to show for it. It could amount to Trump head-faking to a campaign promise and making a political statement about the folly of his predecessor without actually undoing that predecessor's policy.

... The gambit could also backfire in the opposite direction--by blowing up the Iran deal even if that's not what Trump wants. The elaborate decertification plan "suggests an elegance of plotting that the administration has given little evidence of possessing," Kori Schake writes in The Atlantic. "Congress is unlikely to trust the president enough to make a brave choice--which remaining in the agreement after the president decertifies it would be--they suspect he would then publicly castigate them for."

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iehi-feed-63124 Thu, 12 Oct 2017 14:12:17 GMT Xi's Legacy May Rest on the World's Biggest Infrastructure Project http://implode-explode.com/viewnews/2017-10-12_XisLegacyMayRestontheWorldsBiggestInfrastructureProject.html Xi's pharaonic scheme faces geopolitical difficulties, as well. China has 17 land neighbors, many of which are privately wary of becoming more dependent on the country. This includes Russia, a situational ally that's worried about being completely eclipsed by China, and India, which sees itself as a potential peer and already a rival. Beijing hasn't figured out how to achieve the enthusiastic buy-in of these powers or even of smaller, regional actors such as Myanmar. So while an enduring legacy will be created for Xi in the form of endless miles of new railroad tracks, and seaborne commerce will increase apace, there are reasons to doubt that the OBOR initiative will live up to the hype. But even if it doesn't, one often-overlooked payoff may make it all seem worth it in the long run.

On maps, the boundaries of China are mostly those of the huge empire stitched together by the Qing Dynasty, which ended in 1912. Its most restive regions lie in the far west, relatively poor territories such as Tibet and Xinjiang that are home to ethnic and religious minorities--Buddhists and Muslims--who've resisted assimilation. Here, too, there are no guarantees. But long after Xi is gone from power, whatever the ledger books say about OBOR's profitability or return on investment, if these regions can be rendered prosperous and quiescent through transportation and trade links with the rest of the world, Chinese historians may say it was all worth it.

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iehi-feed-63118 Wed, 11 Oct 2017 14:36:27 GMT Kobe Steel Is Likely to See Onslaught of Lawsuits Over Fake Data http://implode-explode.com/viewnews/2017-10-11_KobeSteelIsLikelytoSeeOnslaughtofLawsuitsOverFakeData.html Kobe Steel, one of Japan's oldest manufacturers, said it failed to comply with product specifications that it had promised customers. Though it initially said the issue was limited to certain aluminum and copper components that shipped from Sept. 1, 2016, to Aug. 31, a company executive later said the fabrication of data was systematic and dated back as long as a decade.

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"There will be investor suits, suits by customers, maybe product defect suits, but we don't know yet,'' said Carl Tobias, a law professor at the University of Richmond. The latter may depend on whether a connection is established between flawed metals and injuries or deaths, Tobias said.

Bigger cases will likely emerge as problems resulting from sales of any substandard metal come to light, the experts said.

"They are going to face deep liability, wherever the stock trades," Tuccillo said.

"I would venture to guess that the revelations are going to keep coming. It seems like a tip-of-the-iceberg-type thing."

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iehi-feed-63113 Wed, 11 Oct 2017 01:07:23 GMT Prepare for no-deal Brexit, May Warns http://implode-explode.com/viewnews/2017-10-10_PreparefornodealBrexitMayWarns.html Theresa May has warned the British public to prepare for crashing out of the EU with no deal, setting out emergency plans to avoid border meltdown for businesses and travellers.

As hopes of an agreement appeared to fade at home and abroad, the Prime Minister -- for the first time -- set out detailed "steps to minimise disruption" on Brexit day in 2019. They included plans for huge inland lorry parks to cope with the lengthy new customs checks that will be needed -- to avoid ports becoming traffic-choked.

The move came as Ms May admitted she expected the deadlocked negotiations to drag on for another year before any possible breakthrough.

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iehi-feed-63102 Sun, 08 Oct 2017 22:38:53 GMT Tesla's Pretense Of Model 3 Production Has Been Ripped Away http://implode-explode.com/viewnews/2017-10-08_TeslasPretenseOfModel3ProductionHasBeenRippedAway.html The WSJ report indicates that Tesla is still where I thought it was back in July. And the article points out that there is limited value in hand assembly of Model 3 at this point, since it doesn't serve to test out the final assembly process.

Hand assembly of the Model 3 now seems mainly designed to soothe investors by convincing them that Model 3 "production" has started. What I find so distressing about this is that increasingly, Tesla's actions seem to be governed not by technical necessity but by the need to keep investors sold on Tesla.

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I think it remains a foregone conclusion that Tesla will not achieve its goal of 5,000 Model 3/week production by the end of the year. But I consider it a distinct possibility that Tesla will not even meet my "Pessimistic Scenario" of 2,500/week by the end of the year.

This will impose even more financial strain on the company and probably necessitate yet another capital raise early next year.

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iehi-feed-63092 Thu, 05 Oct 2017 14:25:50 GMT The S&P 500 Poised To Lose $10 Trillion In Value In Next Crash http://implode-explode.com/viewnews/2017-10-05_TheSP500PoisedToLose10TrillionInValueInNextCrash.html The dot-com bubble during March 2000 to October 2002 saw the Index drop -49%, while the Global Credit Crisis from October 2007 to March 2009 saw an even greater drop of -57%... As the old adage goes, "the bigger they are, the harder they fall". If the S&P loses 57% in the next market crash, that would represent $10 trillion in value lost...

If the coming drop follows that of the recent recession, we can expect an inflow of at least $440 billion into gold stocks. That is a lot of money on the sidelines. And when it begins to pour in, gold stocks will explode.

... if they ever allow it to happen, rather than hyperinflate...

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iehi-feed-63067 Sat, 30 Sep 2017 19:57:49 GMT Memento Mori: a Requiem for Puerto Rico http://implode-explode.com/viewnews/2017-09-30_MementoMoriaRequiemforPuertoRico.html iehi-feed-63051 Wed, 27 Sep 2017 14:18:42 GMT We May Have Hit "Peak Gold" http://implode-explode.com/viewnews/2017-09-27_WeMayHaveHitPeakGold.html The world may have already produced the most gold in a year it ever will, according to the chairman of the World Gold Council. Production is likely to plateau at best, before slowly declining as demand rises, especially given global political risks and robust purchases by consumers in India and China, Randall Oliphant said in an interview Monday.

"It's not clear how the whole U.S. political system will play out," said Oliphant, an industry veteran who's been an executive at some of the world's biggest gold miners. "All this uncertainty seems very fertile ground for people to get into gold."''

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Oliphant's concerns over peak production echoed similar comments at the conference, being held this year in Colorado Springs. David Harquail, chief executive officer of Franco-Nevada Corp., said earlier Monday that the gold industry continues to be in an ex-growth phase where new mining projects are simply replacing older assets that are running out of ore.

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iehi-feed-63039 Tue, 26 Sep 2017 17:02:39 GMT Is Trump Exacting Revenge on Puerto Rico for the Failure of His Golf Course? http://implode-explode.com/viewnews/2017-09-26_IsTrumpExactingRevengeonPuertoRicofortheFailureofHisGolfCourse.html ``Trump golf course bankruptcy in Puerto Rico left Puerto Rican taxpayers with nearly $33 million bill, another example of Trump's many scams... ''

See also Cold Comfort: Trump's refusal to send hospital ship tips his plan to abandon Puerto Rico.

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iehi-feed-63038 Tue, 26 Sep 2017 01:57:02 GMT Gold as the Monetary Sun http://implode-explode.com/viewnews/2017-09-25_GoldastheMonetarySun.html A major effort has existed to repeatedly knock down the value of gold in relation to the dollar. This is only possible in an environment in which public faith in the banking system and the stock market remain high. As soon as those two confidence bubbles burst, the dollar will decline rapidly in relation to gold, and gold will once more return to its intrinsic value, just as it has done time and time again for over 5,000 years.

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Over the millennia, mankind has used cattle, tobacco, seashells, even tulips as currency, yet each of these has failed at some point. More importantly, all paper currencies that have ever existed, except the current ones, have not only failed, but have gone to zero in worth.

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iehi-feed-63032 Mon, 25 Sep 2017 18:37:12 GMT Comparing the cost of living between 1975 and 2017:  Inflation continues to eat away at purchasing power http://implode-explode.com/viewnews/2017-09-25_Comparingthecostoflivingbetween1975and2017Inflationcontinuestoea.html iehi-feed-63030 Mon, 25 Sep 2017 15:50:09 GMT Devastation From Hurricane Maria Set Puerto Rico Back "Nearly 20 to 30 Years" http://implode-explode.com/viewnews/2017-09-25_DevastationFromHurricaneMariaSetPuertoRicoBackNearly20to30Years.html iehi-feed-63029 Mon, 25 Sep 2017 03:55:56 GMT German election results: Disappointing victory for Angela Merkel as CDU sinks, nationalist AfD hits 12.6% http://implode-explode.com/viewnews/2017-09-24_GermanelectionresultsDisappointingvictoryforAngelaMerkelasCDUsin.html iehi-feed-63019 Sat, 23 Sep 2017 14:21:10 GMT Creating Test for Trump, Panel Says Imported Solar Gear Hurts U.S. Firms http://implode-explode.com/viewnews/2017-09-23_CreatingTestforTrumpPanelSaysImportedSolarGearHurtsUSFirms.html A flood of imported solar equipment has seriously hurt American companies, the International Trade Commission ruled on Friday, setting up a major test of President Trump's willingness to use the protectionist measures he endorsed during the campaign.

The commission will now devise a course of action to recommend to Mr. Trump by Nov. 13. Its recommendations -- which the president will have broad leeway to accept, amend or reject -- could include establishing tariffs or minimum prices on imported solar equipment.

The commission ruled 4-0 in a case that focused on the question of whether the financial woes of two companies, Suniva and SolarWorld Americas, were caused by their own business practices or by unfair competition, often from Chinese companies that benefit from state subsidies.

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"The president will examine the facts and make a determination that reflects the best interests of the United States," said Natalie Strom, a White House spokeswoman. "The U.S. solar manufacturing sector contributes to our energy security and economic prosperity."

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Several analysts predicted that tariffs would revive the manufacturing of solar modules, or panels, in the United States, encouraging producers to open or expand American factories, as some large Chinese panel makers are already looking to do. But others said problems in the market were the result of low prices stemming from a global glut rather than a lack of capacity.

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Although companies like Sunrun, which focuses on installing panels on residential rooftops, said they could withstand higher prices, developers of large-scale projects said they were already seeing a slowdown as customers pulled back from committing to deals that could become uneconomical if costs rose.

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The case relied on a section of United States trade law that has not been used since President George W. Bush levied tariffs on foreign steel in 2002. In the intervening years, Barack Obama's administration chose to rely more heavily on the World Trade Organization to settle trade disputes.

President Trump and his advisers have argued that the World Trade Organization has been ineffective and slow at resolving trade violations. They have urged more unilateral action by the United States.

Analysts see a good chance of the president's taking action to protect the solar industry, given his longtime support for tariffs as a way to protect industries from cheap foreign products, especially from China.

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iehi-feed-63006 Wed, 20 Sep 2017 17:41:56 GMT Freelancer CEO destroys "delusional, stuffed, basket case, bubble, Third World economy like no other" (AU) http://implode-explode.com/viewnews/2017-09-20_FreelancerCEOdestroysdelusionalstuffedbasketcasebubbleThirdWorld.html iehi-feed-62993 Tue, 19 Sep 2017 01:10:54 GMT Hurricane Maria strengthens to Category 5, Puerto Rico prepares for potentially catastrophic storm http://implode-explode.com/viewnews/2017-09-18_HurricaneMariastrengthenstoCategory5PuertoRicopreparesforpotenti.html iehi-feed-62990 Mon, 18 Sep 2017 15:33:11 GMT Global Central Banks Can't Ignore the Bitcoin Boom, BIS Says http://implode-explode.com/viewnews/2017-09-18_GlobalCentralBanksCantIgnoretheBitcoinBoomBISSays.html The world's central banks can't ignore the growth in cryptocurrencies and may at some point have to consider whether it makes sense for them to issue their own digital currencies, according to the Bank for International Settlements.

... with bitcoin and others gaining in popularity as payment systems go mobile and investors pour in money, central banks are beginning to delve into them and their underlying blockchain technology, which promises to speed up clearing and settlements. At the Bank of England, Mark Carney has cited cryptocurrencies as part of a potential "revolution" in finance.

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iehi-feed-62972 Wed, 13 Sep 2017 22:05:35 GMT Martin Shkreli bound for jail after judge revokes his $5M bail over Hillary Clinton Bounty "Joke" http://implode-explode.com/viewnews/2017-09-13_MartinShkreliboundforjailafterjudgerevokeshis5MbailoverHillaryCl.html iehi-feed-62969 Wed, 13 Sep 2017 16:48:08 GMT Pharma CEO: Americans Will Say "Enough is Enough" and Embrace Bernie Sanders' Single-Payer Plan http://implode-explode.com/viewnews/2017-09-13_PharmaCEOAmericansWillSayEnoughisEnoughandEmbraceBernieSandersSi.html BRENT SAUNDERS, THE chief executive of Allergan, one of the largest pharmaceutical firms in the world, is concerned that Americans will become fed up and, in an era of increasing political polarization, come to embrace the single-payer health care plan being unveiled Wednesday by Sen. Bernie Sanders, I-Vt.

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But if Saunders is concerned that the public may get fed up with the current system, it may have something to do with how Allergan itself has acted recently. The CEO has been under fire in recent weeks for taking the unprecedented step of transferring the patent of one of Allergan's blockbuster drugs, the eye medication Restasis, to a sovereign Native American tribe as part of a bid to maintain monopoly control of the drug and its revenue.

The highly unusual legal strategy is designed to keep generic drug firms from challenging the Restasis patent, thus lowering the cost to consumers, while keeping Allergan in effective control of the revenue through its deal with the Saint Regis Mohawk Tribe. The Restasis patent was approved 15 years ago and was set to expire in 2014, but the Allergan deal is part of an attempt to renew the patent and extend the company's control of the drug through 2024.

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