Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-59900 Sat, 28 May 2016 14:26:29 GMT Pro-Trump, anti-Trump groups clash in San Diego http://implode-explode.com/viewnews/2016-05-28_ProTrumpantiTrumpgroupsclashinSanDiego.html Police clad in riot gear and wielding batons began dispersing a crowd of Donald Trump supporters and protesters here Friday night after the presumptive GOP nominee held a rally.

After issuing orders to the crowd of roughly 1,000 to disperse, police began forcefully and aggressively pushing protesters, checking them with their batons. At least 35 people were arrested, police said.

Smells like 1968.

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iehi-feed-59899 Sat, 28 May 2016 14:24:15 GMT The secret life of Kim Jong Un's aunt, who has lived in the U.S. since 1998 http://implode-explode.com/viewnews/2016-05-28_ThesecretlifeofKimJongUnsauntwhohaslivedintheUSsince1998.html A 60-year-old Korean woman with a soft perm and conservative clothes, she's taking a weekend off from pressing shirts and hemming pants at the dry-cleaning business she runs with her husband.

But she's not just any immigrant. She's an aunt to Kim Jong Un, the young North Korean leader who has threatened to wipe out New York with a hydrogen bomb.

And for the past 18 years, since defecting from North Korea into the waiting arms of the CIA, she has been living an anonymous life here in the United States, with her husband and three children.

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iehi-feed-59898 Sat, 28 May 2016 14:18:15 GMT Russian President Vladimir Putin Aims to Renew Ties During Visit to Greece http://implode-explode.com/viewnews/2016-05-28_RussianPresidentVladimirPutinAimstoRenewTiesDuringVisittoGreece.html Talks focused on trade and investment, in particular in energy and transport, and the Russian president openly expressed his country's interest in taking part in the potential privatization of Greek rail assets and the port of Thessaloniki, a major gateway into the Balkans.

Greece and Russia have flirted with the idea of Athens participating in a pipeline project that would bring Russian gas into Europe via Greece, though little progress was immediately expected.

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Greece has kept close relations with Moscow even after the EU imposed economic sanctions in the summer of 2014 in response to Russia's annexation of Ukraine's Crimea region and its support for separatists in eastern Ukraine. Russia has denied Western charges that it supplied and directed the rebels.

"Greece has repeatedly said that the vicious circle of sanctions is not productive," the Greek Prime Minister said, but added Greece will stick to the commitments it has as a member of the European Union.

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iehi-feed-59897 Sat, 28 May 2016 14:13:46 GMT The Shift to a Cashless Society is Snowballing http://implode-explode.com/viewnews/2016-05-28_TheShifttoaCashlessSocietyisSnowballing.html iehi-feed-59895 Sat, 28 May 2016 00:30:46 GMT The Great Race: USA, Germany, Japan All Have Negative Real 10 Year Sovereign Yields http://implode-explode.com/viewnews/2016-05-27_TheGreatRaceUSAGermanyJapanAllHaveNegativeReal10YearSovereignYie.html iehi-feed-59894 Fri, 27 May 2016 15:40:36 GMT Essence of BofA "Hustle" Ruling: Sign A Contract And LATER Decide To Commit Fraud, and It's Not Fraud http://implode-explode.com/viewnews/2016-05-27_EssenceofBofAHustleRulingSignAContractAndLATERDecideToCommitFrau.html The judges based their ruling on the contracts that Countrywide had reached with Fannie and Freddie, pledging to provide those government-sponsored firms with "investment quality" mortgages. There was no evidence, the appellate judges found, that the executives who signed those contracts intended at the time to stuff the pipeline with toxic junk. It just turned out that way. Because there was no intent to defraud when the contracts were signed, the judges ruled, this whole affair is merely a case of breach of contract, not fraud...

There are a few problems with this analysis. One was pointed out presciently by Judge Rakoff. In a 2013 ruling in the case, he observed that under the federal mail fraud statute, that limitation [of fraud needing to occur at the moment of contract signing] doesn't apply. In any event, the bank's misrepresentations were continuous and ongoing: every time it sold Fannie or Freddie a substandard loan, it was arguably lying... Judge Rakoff anticipated and rejected [the Appeals Court's] argument, and even pointed out that Congress closed the loophole by amending the mail fraud statute -- in 1909. It's also likely that the government will appeal the latest ruling to the full 2nd circuit court, and thence, if necessary, to the Supreme Court.

Yes, this will likely get reversed again. The ruling simply seems to be in error, aside from leading to nonsensical conclusions (i.e., that anyone can now defraud the government with abandon as long as they don't show any evidence of intent to defraud at the time they sign a contract or make covenants).

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iehi-feed-59893 Fri, 27 May 2016 14:40:20 GMT Japan "Already Doing Helicopter Money"; "Yen At Great Risk": Noguchi http://implode-explode.com/viewnews/2016-05-27_JapanAlreadyDoingHelicopterMoneyYenAtGreatRiskNoguchi.html iehi-feed-59891 Fri, 27 May 2016 14:30:26 GMT Duncan: China's Boom Ended in 2015; Protracted Slump Ahead (Video) http://implode-explode.com/viewnews/2016-05-27_DuncanChinasBoomEndedin2015ProtractedSlumpAheadVideo.html iehi-feed-59888 Thu, 26 May 2016 17:00:10 GMT Report: US Spending 75% of $80 billion-Dollar IT Budget on Aging Computer Systems http://implode-explode.com/viewnews/2016-05-26_ReportUSSpending75of80billionDollarITBudgetonAgingComputerSystem.html iehi-feed-59885 Thu, 26 May 2016 14:55:28 GMT Bigger Than All The World's QE's Combined http://implode-explode.com/viewnews/2016-05-26_BiggerThanAllTheWorldsQEsCombined.html iehi-feed-59884 Thu, 26 May 2016 14:52:21 GMT Greece is Being Looted, Despite IMF "Agreement" - Paul Craig Roberts http://implode-explode.com/viewnews/2016-05-26_GreeceisBeingLootedDespiteIMFAgreementPaulCraigRoberts.html iehi-feed-59883 Thu, 26 May 2016 11:14:42 GMT IMF: No Cash Now for Greece Because Europe Hasn't Promised Debt Relief http://implode-explode.com/viewnews/2016-05-26_IMFNoCashNowforGreeceBecauseEuropeHasntPromisedDebtRelief.html A senior International Monetary Fund official Wednesday said it can't help Europe with fresh emergency financing for Greece because Athens's creditors haven't yet committed to detailed debt relief.

The comments show that the agreement touted by European finance ministers last night to release fresh bailout cash for Greece hasn't nailed down the key elements the IMF says are critical to finally return the debt-laden country to health. Rather, the IMF's reserved support for the deal has paved the way for Germany to approve new funds and sets the stage for more tough negotiations later this year.

...

Many outside economists see the deal as papering over the differences and once again prolonging the crisis.

"Summary of Eurogroup: Germany always wins, IMF caves under pressure from Germany and U.S., no one does what's in Greece's best interests," said Megan Greene, chief economist at Manulife and John Hancock Asset Management, in a tweet.

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iehi-feed-59882 Thu, 26 May 2016 00:44:53 GMT The Fed Setting Up For A U.S. Dollar Collapse If No June Rate Hike http://implode-explode.com/viewnews/2016-05-25_TheFedSettingUpForAUSDollarCollapseIfNoJuneRateHike.html

The U.S. dollar index has bounced from its 15-month low on May 3, thanks to Fed officials talking up rate hikes and thereby propping up the U.S. dollar, referred to as a "Fed Dollar Put". The Fed may have already painted itself into a corner, even as job growth is decelerating, core inflation is trending downward, and the U.S. economy may be one step closer to a recession, as seen by the yield spread between the 10-year and 2-year U.S. Treasury Notes.

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Many economists may not be aware that the S&P 500 Utilities sector is now trading near its all-time high, as money has rotated into safe-havens. The last time Utilities outperformed the broader market, the U.S. economy entered into a recession 12 months later.

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iehi-feed-59881 Wed, 25 May 2016 23:56:47 GMT Fannie And Freddie Are Mega-Frauds; Still Have Not Digested Derivatives & Accounting Losses From Crash http://implode-explode.com/viewnews/2016-05-25_FannieAndFreddieAreMegaFraudsStillHaveNotDigestedDerivativesAcco.html iehi-feed-59880 Wed, 25 May 2016 23:35:59 GMT Precious Metals: Fake-Rally Ends, Hostage Markets Return http://implode-explode.com/viewnews/2016-05-25_PreciousMetalsFakeRallyEndsHostageMarketsReturn.html In the real world, the quantity of investment dollars going into silver is roughly parallel to the quantity of dollars going into gold. Had a similar ratio of investor dollars entered the bankers "paper bullion" markets the price of silver would have had to rise roughly 20 times faster/higher than the price of gold during this supposed rally.

The notion, in this "precious metals rally", that no one was buying silver is patently absurd. The price of silver during most of this fake-rally wasn't merely improbable, it was impossible.

... the Big Bank crime syndicate remains totally in control of what we call our "markets" (for lack of a better word). Currency prices remain fixed (rigged). Equity market prices remain fixed (rigged). Bond market prices remain fixed (rigged). Are we to believe that the banksters simply 'forgot' to continue their precious metals price-fixing -- even as the mainstream media was shouting the word "rally" at the top of its lungs?

...

The current eight-year, bubble-and-crash cycle manufactured by the Big Banks is nearing its end. When this Next Crash is detonated, this crime syndicate obviously doesn't want precious metals to stand out as "safe havens" -- as all of their corrupt, paper assets are plunging in value. The problem: with gold and silver already at rock-bottom prices at the beginning of 2016, it would have been very difficult to crash those markets (along with everything else). Thus the banksters need to march gold and silver prices higher, to some modest level, before they were set up to be crashed along with all other asset classes.

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iehi-feed-59878 Wed, 25 May 2016 16:48:05 GMT Eurozone hails 'breakthrough' with Greece, IMF debt deal http://implode-explode.com/viewnews/2016-05-25_EurozonehailsbreakthroughwithGreeceIMFdebtdeal.html The euro zone gave Greece its firmest offer yet of debt relief in what finance ministers called a breakthrough deal that won a commitment from the IMF finally to return to taking part in the bailout for Athens.

After talks that lasted into the small hours of Wednesday, the Eurogroup ministers gave a nod to releasing 10.3 billion euros (£8 billion) in new funds for Greece in recognition of painful fiscal reforms pushed through by Prime Minister Alexis Tsipras's leftist-led coalition, subject to some final technical tweaks.

But a bigger step forward was a deal by which the euro zone agreed to offer Athens debt relief in 2018 if that is necessary to meet agreed criteria on its payments burden. That was enough to secure an agreement from the International Monetary Fund to again join the euro zone in funding the bailout of Greece.

... the Fund made a big concession by agreeing that the debt relief would only be finally decided in 2018, rather than up-front, as was the IMF's initial position.

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iehi-feed-59876 Wed, 25 May 2016 14:29:23 GMT Donald Trump is going to win: This is why Hillary Clinton can't defeat what Trump represents http://implode-explode.com/viewnews/2016-05-25_DonaldTrumpisgoingtowinThisiswhyHillaryClintoncantdefeatwhatTrum.html iehi-feed-59871 Tue, 24 May 2016 17:40:23 GMT Clinton Foundation: Rife With "Sloppy" Accounting, Despite Major Auditors http://implode-explode.com/viewnews/2016-05-24_ClintonFoundationRifeWithSloppyAccountingDespiteMajorAuditors.html "For three years in a row beginning in 2010, the Clinton Foundation reported to the IRS that it received zero in funds from foreign and U.S. governments, a dramatic fall-off from the tens of millions of dollars in foreign government contributions reported in preceding years.

"Those entries were errors, according to the foundation: several foreign governments continued to give tens of millions of dollars toward the foundation's work on climate change and economic development through this three-year period."

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iehi-feed-59870 Tue, 24 May 2016 17:38:49 GMT Hillary Pimped Fracking http://implode-explode.com/viewnews/2016-05-24_HillaryPimpedFracking.html iehi-feed-59869 Tue, 24 May 2016 16:17:22 GMT Negative Rates Prompt Japan Banks to Seek Protection Via Derivatives http://implode-explode.com/viewnews/2016-05-24_NegativeRatesPromptJapanBankstoSeekProtectionViaDerivatives.html Japanese banks are getting hurt as the negative-rate policy compresses their lending margins, with the top-three firms including Mitsubishi UFJ Financial Group Inc. forecasting this month that net income will fall a combined 5.2 percent in the year started April 1. The BOJ's radical stimulus has already dragged yields on more than 70 percent of Japanese government bonds to below zero, meaning that investors will have to effectively pay a fee to hold such debt to maturity.

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Companies that borrow at floating rates may also be able to use floor options to ensure that interest-rate swaps they use to hedge against rising rates don't end up costing them due to negative rates, Takahashi said. Actual trades of such derivatives are still not that common because the contracts are expensive to buy now, he said.

"It will be hard to price these options unless we get more liquidity," said Tateo Komatsu, a deputy general manager of global markets at Sumitomo Mitsui Trust Bank Ltd. "It will take time for the market to get used to minus rates."

There's no free lunch, so it's not exactly clear how these options will spare banks the pain. After all, options cost something.

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