Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-57599 Sun, 30 Aug 2015 11:27:58 GMT Why we need to lie to ourselves about the state of the economy http://implode-explode.com/viewnews/2015-08-30_Whyweneedtolietoourselvesaboutthestateoftheeconomy.html Over the last 35 years, the economic growth necessary to increase living standards, increase wealth and manage growing inequality has been based increasingly on rising borrowings and financial rather than real engineering. There was reliance on debt-driven consumption. It resulted in global trade and investment imbalances, such as that between China and the US or Germany and the rest of Europe. 

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The 2008 global financial crisis was a warning of the unstable nature of these arrangements. But there has been no meaningful change. Since 2007, global debt has grown by US$57 trillion, or 17 per cent of the world's gross domestic product. In many countries, debt has reached unsustainable levels, and it is unclear how or when it is to be reduced without defaults that would wipe out large amounts of savings.

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For most people, the effect of these problems is unemployment, reduced job security, the deskilling of many professions and stagnant incomes. Home ownership is increasingly out of reach for many. Retirement may become a luxury for all but a few, reflecting increasing difficulty in building sufficient savings. In effect, living standards will decline. Future generations will bear the bulk of the cost as they are left to tackle the unresolved problems of their forebears.

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iehi-feed-57598 Sun, 30 Aug 2015 11:26:00 GMT Despite Being A 'Pet Rock', The Premium For Physical Bullion Is Exploding http://implode-explode.com/viewnews/2015-08-30_DespiteBeingAPetRockThePremiumForPhysicalBullionIsExploding.html iehi-feed-57597 Sun, 30 Aug 2015 11:22:42 GMT Mass Protests Sweep Malaysian Capital As Anger At Goldman-Backed Slush Fund Boils Over http://implode-explode.com/viewnews/2015-08-30_MassProtestsSweepMalaysianCapitalAsAngerAtGoldmanBackedSlushFund.html iehi-feed-57596 Sun, 30 Aug 2015 11:19:31 GMT Fed, ECB, BOE Officials All Say They See Inflation Rising http://implode-explode.com/viewnews/2015-08-30_FedECBBOEOfficialsAllSayTheySeeInflationRising.html iehi-feed-57595 Sun, 30 Aug 2015 11:16:11 GMT Central banks can't save the markets from a crash. They shouldn't even try http://implode-explode.com/viewnews/2015-08-30_CentralbankscantsavethemarketsfromacrashTheyshouldnteventry.html iehi-feed-57593 Sun, 30 Aug 2015 10:58:43 GMT Feds Stanley Fischer Sees Inflation Rebound, Allowing Gradual Rate Hikes http://implode-explode.com/viewnews/2015-08-30_FedsStanleyFischerSeesInflationReboundAllowingGradualRateHikes.html iehi-feed-57591 Fri, 28 Aug 2015 16:59:57 GMT For Albert Edwards This Is The One Definitive Measure That "We Are Now In A Bear Market" http://implode-explode.com/viewnews/2015-08-28_ForAlbertEdwardsThisIsTheOneDefinitiveMeasureThatWeAreNowInABear.html iehi-feed-57590 Fri, 28 Aug 2015 16:56:37 GMT China Will Respond Too Late to Avoid Recession, Citigroup Says http://implode-explode.com/viewnews/2015-08-28_ChinaWillRespondTooLatetoAvoidRecessionCitigroupSays.html The only thing to stop a Chinese recession, which the former external member of the Bank of England defines as 4 percent growth on "the mendacious official data" for a year, is a consumption-oriented fiscal stimulus program funded by the central government and monetized by the People's Bank of China, Buiter said.

"Despite the economy crying out for it, the Chinese leadership is not ready for this," Buiter, chief economist at Citigroup, said in a media call hosted Thursday by the Council on Foreign Relations in New York. "It's an economy that's sliding into recession."

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iehi-feed-57589 Fri, 28 Aug 2015 16:54:33 GMT China has exposed the fatal flaws in our liberal economic order http://implode-explode.com/viewnews/2015-08-28_Chinahasexposedthefatalflawsinourliberaleconomicorder.html iehi-feed-57588 Fri, 28 Aug 2015 16:38:21 GMT China's Stock Rout to Resume as Intervention Ends, Says BofA http://implode-explode.com/viewnews/2015-08-28_ChinasStockRouttoResumeasInterventionEndsSaysBofA.html iehi-feed-57587 Fri, 28 Aug 2015 16:37:09 GMT China Stunner: Real GDP Is Now A Negative -1.1% - Evercore http://implode-explode.com/viewnews/2015-08-28_ChinaStunnerRealGDPIsNowANegative11Evercore.html iehi-feed-57586 Fri, 28 Aug 2015 14:15:41 GMT Consumer spending rises in July (BUT DISAPPOINTS) http://implode-explode.com/viewnews/2015-08-28_ConsumerspendingrisesinJulyBUTDISAPPOINTS.html the ZeroHedge counter-spin version of this news.]]> iehi-feed-57585 Fri, 28 Aug 2015 14:09:46 GMT NAR: U.S. pending home sales flat http://implode-explode.com/viewnews/2015-08-28_NARUSpendinghomesalesflat.html iehi-feed-57584 Fri, 28 Aug 2015 14:05:15 GMT Market turmoil shouldn't delay at least one Fed rate hike: Bullard http://implode-explode.com/viewnews/2015-08-28_MarketturmoilshouldntdelayatleastoneFedratehikeBullard.html iehi-feed-57582 Fri, 28 Aug 2015 13:54:56 GMT "We're Seeing the Beginning of a Liquidity Crisis" in the Startup Boom, Suddenly http://implode-explode.com/viewnews/2015-08-28_WereSeeingtheBeginningofaLiquidityCrisisintheStartupBoomSuddenly.html The stock market, after going nowhere for a year and then jumping up and down like mad, might actually, after all these years, give up its bullish ghost and head south. That would imperil the entire startup scene. It happens after every boom.

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If the market keeps declining, companies that have quickly spent initial investments will feel the most pain. Such corners of the start-up world include app companies that provide services such as assistants and food with a tap of a smartphone. The start-up tracking firm CB Insights recently identified 12 on-demand food delivery companies, some of which have launched in several cities, that "might be at risk of overextending themselves in the race to gain market share in the top metros."

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iehi-feed-57581 Fri, 28 Aug 2015 01:41:37 GMT China's Central Bank Won't Do Beijing's Dirty Work http://implode-explode.com/viewnews/2015-08-27_ChinasCentralBankWontDoBeijingsDirtyWork.html iehi-feed-57580 Fri, 28 Aug 2015 01:40:20 GMT Oil Industry Needs Half a Trillion Dollars to Endure Price Slump http://implode-explode.com/viewnews/2015-08-27_OilIndustryNeedsHalfaTrillionDollarstoEndurePriceSlump.html iehi-feed-57579 Fri, 28 Aug 2015 01:37:32 GMT The U.S. Is Short on Options to Confront Next Crisis http://implode-explode.com/viewnews/2015-08-27_TheUSIsShortonOptionstoConfrontNextCrisis.html iehi-feed-57577 Thu, 27 Aug 2015 22:33:51 GMT Stock-Market Tumult Exposes Flaws in Modern Markets http://implode-explode.com/viewnews/2015-08-27_StockMarketTumultExposesFlawsinModernMarkets.html Many traders reported difficulty buying and selling exchange-traded funds, a popular investment in which baskets of stocks and other assets are packaged to facilitate easy trading. Dozens of ETFs traded at sharp discounts to their net asset value--or their components' worth--leading to outsize losses for investors who entered sell orders at the depth of the panic.

Products built to provide insurance for investors came up short. As a result of trading halts in futures tied to the S&P 500 index, it was difficult for investors to get consistent prices on contracts linked to them that offer insurance against S&P 500 declines.

Elsewhere, the value of the most widely tracked Wall Street gauge of investor anxiety, the CBOE Volatility Index, or VIX, wasn't published until almost 10 a.m. Monday, half an hour after stock trading began and after the Dow Jones Industrial Average had already posted its largest-ever intraday point decline. That made it difficult for investors to easily gauge the fear in the market.

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Circuit breakers, which are designed to pause trading in single stocks and ETFs during big moves, were triggered nearly 1,300 times Monday. The circuit breakers were added to make markets more orderly after the May 2010 "flash crash," when the Dow Jones Industrial Average dropped nearly 1,000 points before quickly recovering.

But Monday, they sometimes exacerbated problems by preventing prices from returning to normal levels quickly, according to traders, investors and market observers.

For example, the $2.5 billion Vanguard Consumer Staples Index ETF and the $5.8 billion Vanguard Health Care Index ETF both plunged 32% within the opening minutes of trading. The Vanguard Consumer Staples ETF was halted six times over the course of 37 minutes early in the day, according to trading records. The health-care ETF was halted eight times Monday.

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iehi-feed-57576 Thu, 27 Aug 2015 22:30:45 GMT China's workers abandon the city as Beijing faces an economic storm http://implode-explode.com/viewnews/2015-08-27_ChinasworkersabandonthecityasBeijingfacesaneconomicstorm.html "Now it is going all downhill. I think that from here on in we see a sharp depreciation of the renminbi, we see an acceleration of credit -- but not actually having any effect on the economy -- and consequently you probably get inflation domestically and then a burst in unemployment and all sorts of nasty things."

"The slowdown is really bad. It's not a slowdown; it is a crash and this is going to accelerate and get worse," added Stevenson-Yang, the author of China Alone: The Emergence from and Potential Return to Isolation.''

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Nor was social upheaval the party's only concern. "The fear has to be ... that party stability is on the line if the economy doesn't work."

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