Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-56229 Thu, 05 Mar 2015 15:24:46 GMT Liquidity evaporates in China as 'fiscal cliff' nears http://implode-explode.com/viewnews/2015-03-05_LiquidityevaporatesinChinaasfiscalcliffnears.html A budget squeeze is already emerging as the property slump drags on. Zhiwei Zhang says land revenues fell 21pc in the fourth quarter of last year. "The decline of fiscal revenue is the top risk in China and will lead to a sharp slowdown," he said.

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New regulations came into force in January that prohibit local governments from raising money off-books. If enforced fully, this will tighten fiscal policy by 5.5pc of GDP this year, roughly five times the dose in austerity in the UK each year since the Lehman crisis. That is the sort of fiscal contraction imposed on Greece.

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China cannot easily crank up monetary stimulus to cushion the fiscal shock because the "efficiency" of credit has collapsed. The economy is saturated. Extra growth generated by each extra yuan of loans has dropped from a ratio of 0.8 to 0.2 since 2008.

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Global markets greeted the recent cuts in lending rates and the Reserve Requirement Ratio (RRR) as evidence that China is turning on the spigot once again. This is a misunderstanding. The RRR cut adds no net stimulus. It offsets monetary tightening that occurs automatically as the central bank dips into the country's €3.8 trillion foreign reserves to shore up the currency.

China is no longer buying US Treasuries and global bonds. It has become a net seller, stepping in to offset accelerating outflows of capital. The capital deficit reached a record $91bn in the fourth quarter.

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Asia is "tapering" at a pace of $25bn a month. You could argue that this neutralises half the quantitative easing soon to come from the European Central Bank.... A country in China's predicament normally needs a devaluation, yet China has fixed the yuan - through a "dirty float" - to a soaring US dollar. The yuan has risen 60pc against the Japanese yen and 90pc against Brazil's real since mid-2012.

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iehi-feed-56227 Thu, 05 Mar 2015 14:57:52 GMT ECB Will Cut Rates To Minus 3%: JP Morgan, As QE Stokes *De*-flation http://implode-explode.com/viewnews/2015-03-05_ECBWillCutRatesToMinus3JPMorganAsQEStokesDeflation.html iehi-feed-56225 Thu, 05 Mar 2015 14:50:46 GMT Canada's Central Bank Requests End To Defacing of Debasing Canadian Dollar ("Spocking") http://implode-explode.com/viewnews/2015-03-05_CanadasCentralBankRequestsEndToDefacingofDebasingCanadianDollarS.html iehi-feed-56224 Thu, 05 Mar 2015 14:48:03 GMT Rickards: Why oil will be rangebound for the time being http://implode-explode.com/viewnews/2015-03-05_RickardsWhyoilwillberangeboundforthetimebeing.html iehi-feed-56223 Thu, 05 Mar 2015 14:35:52 GMT Hernando De Soto Revolutionized The World's Thinking On Poverty http://implode-explode.com/viewnews/2015-03-05_HernandoDeSotoRevolutionizedTheWorldsThinkingOnPoverty.html iehi-feed-56222 Wed, 04 Mar 2015 18:07:07 GMT Ukraine agrees tough austerity package to gain $17.5bn IMF bailout http://implode-explode.com/viewnews/2015-03-04_Ukraineagreestoughausteritypackagetogain175bnIMFbailout.html iehi-feed-56221 Wed, 04 Mar 2015 17:59:35 GMT Greece taps public sector cash to help cover March needs http://implode-explode.com/viewnews/2015-03-04_GreecetapspublicsectorcashtohelpcoverMarchneeds.html iehi-feed-56220 Wed, 04 Mar 2015 17:58:30 GMT The 35 year drought in real wages for American workers http://implode-explode.com/viewnews/2015-03-04_The35yeardroughtinrealwagesforAmericanworkers.html iehi-feed-56219 Wed, 04 Mar 2015 17:55:47 GMT Poll gives France's far-right National Front party boost ahead of regional vote http://implode-explode.com/viewnews/2015-03-04_PollgivesFrancesfarrightNationalFrontpartyboostaheadofregionalvo.html iehi-feed-56215 Wed, 04 Mar 2015 17:43:52 GMT Mortgage Lenders Cause Another Homeowner Death http://implode-explode.com/viewnews/2015-03-04_MortgageLendersCauseAnotherHomeownerDeath.html iehi-feed-56214 Tue, 03 Mar 2015 18:34:05 GMT Investor survey shows 38 pct chance of eurozone break-up in 12 months http://implode-explode.com/viewnews/2015-03-03_Investorsurveyshows38pctchanceofeurozonebreakupin12months.html iehi-feed-56212 Tue, 03 Mar 2015 18:30:56 GMT Greece eyes last central bank funds to avert IMF default http://implode-explode.com/viewnews/2015-03-03_GreeceeyeslastcentralbankfundstoavertIMFdefault.html Yanis Varoufakis, the finance minister, sought to silence such talk over the weekend, telling Associated Press that a default to the IMF was out of the question, even if a halt in payments to the EU institutions remains a serious threat. "We are not going to be the first country not to meet our obligations to the IMF. We shall squeeze blood out of stone if we need to do this on our own, and we shall do it," he said.

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Mr Varoufakis said Greece did not want any further money if it meant having to buckle to Troika terms. "We won't take the next tranche if the price is having to continue with the 'Memorandum'. That is not what the people voted for," he said. It is a thinly-veiled warning that Greece will default on €300bn of combined liabilities to EMU entities and states if pushed too hard, regardless of what this implies for monetary union.

Whatever piece of paper they signed in Brussels 10 days ago, the two sides are still talking past each other.

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iehi-feed-56211 Tue, 03 Mar 2015 18:27:15 GMT Spain to split? Snap vote on Catalan independence http://implode-explode.com/viewnews/2015-03-03_SpaintosplitSnapvoteonCatalanindependence.html iehi-feed-56208 Tue, 03 Mar 2015 14:16:17 GMT US Savings Rate Surges To Highest Since 2012 As Consumers Save "Gas Tax Cut" Instead Of Spending http://implode-explode.com/viewnews/2015-03-03_USSavingsRateSurgesToHighestSince2012AsConsumersSaveGasTaxCutIns.html iehi-feed-56207 Tue, 03 Mar 2015 01:11:26 GMT HOW'S THAT DEFLATION WORKING OUT FOR YOU? http://implode-explode.com/viewnews/2015-03-02_HOWSTHATDEFLATIONWORKINGOUTFORYOU.html The BLS put out their monthly CPI lie last week. They issued the proclamation that inflation is dead. Did you know your costs are 0.1% lower than they were one year ago. They then used these deflation numbers to proclaim your real wages soared last month. It's all good. The American consumer is so flush with cash, they decided to spend less money for the second month in a row.

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And now for the BIGGEST LIE in the entire report. The have the balls to tell you that health insurance only makes up 0.753% of your entire annual budget and it has FALLEN by 0.5% in the last year. This must be some cruel Obamacare joke perpetrated by these government apparatchiks. I haven't met anyone who has seen their health insurance costs go down in the last year. My premiums went up by 20% and my annual family deductible went from $0 to $2,000. How the BLS can get away with issuing this drivel is beyond my comprehension. It's pure and utter bullshit.

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iehi-feed-56206 Mon, 02 Mar 2015 22:33:46 GMT IMF bent its rules to hobble Greece with unsustainable debt http://implode-explode.com/viewnews/2015-03-02_IMFbentitsrulestohobbleGreecewithunsustainabledebt.html Philippe Legrain, a former adviser to the European Commission president, told Arte that the IMF managing director at the time, Dominique Strauss-Kahn, overrode objections from IMF staff so that Greece could pay the money it owed to French banks and not endanger his chances to run for president in France.

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"Despite the IMF's rules that it is not supposed to resort to exceptional access lending when a country's public debt is unsustainable or when the chances of program success are not good, the IMF has managed to lend to Greece some 1,860% of quota," wrote Desmond Lachman, former deputy director of the IMF's policy department. "That is more than three times the normal maximum IMF limit for such lending."

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iehi-feed-56204 Mon, 02 Mar 2015 19:00:32 GMT MFI-Miami Calls On The FDIC To Fast Track Investigations Of Sterling National Bank http://implode-explode.com/viewnews/2015-03-02_MFIMiamiCallsOnTheFDICToFastTrackInvestigationsOfSterlingNationa.html iehi-feed-56203 Mon, 02 Mar 2015 15:03:59 GMT Greek debt becoming less sustainable http://implode-explode.com/viewnews/2015-03-02_Greekdebtbecominglesssustainable.html iehi-feed-56202 Mon, 02 Mar 2015 14:39:22 GMT Europe's largest gas field, Dutch, In Peril Due To Quakes http://implode-explode.com/viewnews/2015-03-02_EuropeslargestgasfieldDutchInPerilDueToQuakes.html iehi-feed-56201 Mon, 02 Mar 2015 14:32:33 GMT Ukraine Hyperinflates http://implode-explode.com/viewnews/2015-03-02_UkraineHyperinflates.html