Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-54847 Mon, 01 Sep 2014 21:35:26 GMT MFI-Miami To Begin Investigating Student Loan Fraud And Collection Abuses http://implode-explode.com/viewnews/2014-09-01_MFIMiamiToBeginInvestigatingStudentLoanFraudAndCollectionAbuses.html iehi-feed-54846 Mon, 01 Sep 2014 18:36:38 GMT Washington's "Pivot" hits a Brick Wall. Obama's "Catastrophic Defeat" in Ukraine http://implode-explode.com/viewnews/2014-09-01_WashingtonsPivothitsaBrickWallObamasCatastrophicDefeatinUkraine.html iehi-feed-54845 Mon, 01 Sep 2014 16:47:16 GMT More Sanctions: Europe Will Ban Purchase Of Russian Bonds; However Russian Gas Exports Remain Untouched http://implode-explode.com/viewnews/2014-09-01_MoreSanctionsEuropeWillBanPurchaseOfRussianBondsHoweverRussianGa.html iehi-feed-54844 Sun, 31 Aug 2014 19:24:34 GMT Beijing rejects full Hong Kong democracy http://implode-explode.com/viewnews/2014-08-31_BeijingrejectsfullHongKongdemocracy.html ``The National People's Congress Standing Committee (NPCSC) - China's top legislative committee - decided that the city's next chief executive will be elected by popular vote in 2017, but only after each candidate is approved by a majority of a 1,200-member election committee.

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Analysts argue that the move will effectively limit the selection of candidates to pro-Beijing figures and dash hopes for real democratic elections in the special administrative region and former British colony.

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According to Daly, Beijing's decision also reflects the Chinese leadership's belief that only the Communist Party "can provide the economic and social stability required for China's continued development," At his press conference explaining the move, the NPCSC's deputy general secretary, Li Fei, contrasted the stability provided by the Communist Party with the "chaos" he said would ensue if democracy activists had their way. He framed the decision as a defense of Hong Kong's prosperity.

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iehi-feed-54843 Sun, 31 Aug 2014 18:34:38 GMT Income Inequality Hits The Apple Store http://implode-explode.com/viewnews/2014-08-31_IncomeInequalityHitsTheAppleStore.html A group of people, apparently security guards at the Apple Store, staged a sit-in, as freelance journalist Julia Carrie Wong live-tweeted from the event -- to protest low wages. Holding up signs, they sat around in a circle inside the store, at the foot of the glassy stairs leading to the second floor. To the bafflement of customers and the consternation of employees, they sat there for over an hour... police officers, of whom there appeared to be more than protesters, decided to step in. San Francisco doesn't have a lot of patience with this sort of thing in front of an Apple Store.

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The tech bubble and the housing bubble, nurtured by the tsunami of hot money that years of QE and ZIRP from central banks around the world have unleashed and that has washed over San Francisco, collided with frustrated people who represent much of the American reality

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iehi-feed-54842 Sun, 31 Aug 2014 17:16:25 GMT Home-Flipping Collapses in San Francisco, Losses Spread http://implode-explode.com/viewnews/2014-08-31_HomeFlippingCollapsesinSanFranciscoLossesSpread.html iehi-feed-54841 Sun, 31 Aug 2014 15:07:39 GMT Why Won't the Miners Fight Back? http://implode-explode.com/viewnews/2014-08-31_WhyWonttheMinersFightBack.html iehi-feed-54840 Sun, 31 Aug 2014 15:04:14 GMT Henry Kissinger on the Assembly of a (New) New World Order http://implode-explode.com/viewnews/2014-08-31_HenryKissingerontheAssemblyofaNewNewWorldOrder.html The clash between the international economy and the political institutions that ostensibly govern it also weakens the sense of common purpose necessary for world order. The economic system has become global, while the political structure of the world remains based on the nation-state. Economic globalization, in its essence, ignores national frontiers. Foreign policy affirms them, even as it seeks to reconcile conflicting national aims or ideals of world order.

This dynamic has produced decades of sustained economic growth punctuated by periodic financial crises of seemingly escalating intensity: in Latin America in the 1980s; in Asia in 1997; in Russia in 1998; in the U.S. in 2001 and again starting in 2007; in Europe after 2010. The winners have few reservations about the system. But the losers--such as those stuck in structural misdesigns, as has been the case with the European Union's southern tier--seek their remedies by solutions that negate, or at least obstruct, the functioning of the global economic system.

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For the U.S., [a new international order] will require thinking on two seemingly contradictory levels. The celebration of universal principles needs to be paired with recognition of the reality of other regions' histories, cultures and views of their security. Even as the lessons of challenging decades are examined, the affirmation of America's exceptional nature must be sustained. History offers no respite to countries that set aside their sense of identity in favor of a seemingly less arduous course. But nor does it assure success for the most elevated convictions in the absence of a comprehensive geopolitical strategy.

It looks like Kissenger is backing off the "hyperpower" model of American exceptionalism here. While he gives lip service to America's taken-for-granted "exceptional" nature, now this apparently must be balanced against "other region's histories, cultures and views of their security". That sounds a lot like... hmm... let us think... Russia. So it appears the international establishment might think the Russia-bashing has gone a bit too far... maybe there is concern about an imminent 2008-Georgia-esque rout looming...

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iehi-feed-54838 Sun, 31 Aug 2014 14:48:58 GMT Schaeuble Sees Draghi's Instruments for Growth Exhausted http://implode-explode.com/viewnews/2014-08-31_SchaeubleSeesDraghisInstrumentsforGrowthExhausted.html iehi-feed-54836 Sun, 31 Aug 2014 02:33:50 GMT U.K. Wants EU to Block Russia From SWIFT Banking Network http://implode-explode.com/viewnews/2014-08-30_UKWantsEUtoBlockRussiaFromSWIFTBankingNetwork.html iehi-feed-54834 Sat, 30 Aug 2014 15:45:36 GMT And Here's to You Mr. & Mrs. Robinson -- Will Quiet Title Hold Up in California? - Mandelman Matters http://implode-explode.com/viewnews/2014-08-30_AndHerestoYouMrMrsRobinsonWillQuietTitleHoldUpinCaliforniaMandel.html iehi-feed-54832 Fri, 29 Aug 2014 18:08:53 GMT Dethrone `King Dollar' - NYTimes http://implode-explode.com/viewnews/2014-08-29_DethroneKingDollarNYTimes.html ... research reveals that what was once a privilege is now a burden, undermining job growth, pumping up budget and trade deficits and inflating financial bubbles. To get the American economy on track, the government needs to drop its commitment to maintaining the dollar's reserve-currency status.

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while more balanced trade might raise prices, there's no reason it should persistently increase the inflation rate. We might settle into a norm of 2 to 3 percent inflation, versus the current 1 to 2 percent. But that's a price worth paying for more and higher-quality jobs, more stable recoveries and a revitalized manufacturing sector. The privilege of having the world's reserve currency is one America can no longer afford.

Right-- since the dollar is toast, "that's what we really wanted anyways!" Kind of like a reverse-psychology spin to inevitability. At any rate, we doubt the benign inflations ramifications suggested here.

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iehi-feed-54831 Fri, 29 Aug 2014 17:40:26 GMT Falling Housing Prices Are Causing Violent Protests In China http://implode-explode.com/viewnews/2014-08-29_FallingHousingPricesAreCausingViolentProtestsInChina.html iehi-feed-54830 Fri, 29 Aug 2014 17:39:01 GMT Japan economy stalls as incomes, spending languish http://implode-explode.com/viewnews/2014-08-29_Japaneconomystallsasincomesspendinglanguish.html iehi-feed-54829 Fri, 29 Aug 2014 17:33:32 GMT JPMorgan and Other Banks Struck by Hackers http://implode-explode.com/viewnews/2014-08-29_JPMorganandOtherBanksStruckbyHackers.html iehi-feed-54828 Fri, 29 Aug 2014 17:32:07 GMT The Buyback Party Is Over; Market Running on Fumes - Albert Edwards http://implode-explode.com/viewnews/2014-08-29_TheBuybackPartyIsOverMarketRunningonFumesAlbertEdwards.html iehi-feed-54825 Fri, 29 Aug 2014 01:25:22 GMT ​From Minsk to Wales, Germany is the key on Ukraine Conflict - Pepe Escobar http://implode-explode.com/viewnews/2014-08-28_FromMinsktoWalesGermanyisthekeyonUkraineConflictPepeEscobar.html iehi-feed-54824 Thu, 28 Aug 2014 17:09:13 GMT How The Coming Silver Bubble Will Develop - Ted Butler http://implode-explode.com/viewnews/2014-08-28_HowTheComingSilverBubbleWillDevelopTedButler.html iehi-feed-54823 Thu, 28 Aug 2014 17:06:43 GMT British Columbia, Ontario to Cooperate on Yuan Trading Hub http://implode-explode.com/viewnews/2014-08-28_BritishColumbiaOntariotoCooperateonYuanTradingHub.html iehi-feed-54822 Thu, 28 Aug 2014 15:36:42 GMT One World, One Bank, One Currency - Rickards http://implode-explode.com/viewnews/2014-08-28_OneWorldOneBankOneCurrencyRickards.html Leading the way, says Rickards, will be the International Monetary Fund. "The task of re-liquefying the world will fall to the IMF because the IMF will have the only clean balance sheet left among official institutions. The IMF will rise to the occasion with a towering issuance of SDRs, and this monetary operation will effectively end the dollar's role as the leading reserve currency."

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A 42-page IMF paper published in January 2011 with the innocuous-sounding title "Enhancing International Monetary Stability -- A Role for the SDR?" -- lays out what Rickards describes. "A multiyear, multistep plan to position the SDR as the leading global reserve asset. The study recommends increasing the SDR supply to make them liquid and more attractive to potential private-sector market participants such as Goldman Sachs and Citigroup... The IMF study recommends that the SDR bond market replicate the infrastructure of the U.S. Treasury market, with hedging, financing, settlement and clearance mechanisms substantially similar to those used to support trading in Treasury securities today."

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The genius of the scheme is that the SDRs would create inflation... but ordinary people wouldn't know SDRs were causing it. "Any inflation caused by massive SDR issuance would not be immediately apparent to citizens. The inflation would show up eventually in dollars, yen and euros at the gas pump or the grocery, but national central banks could deny responsibility with ease and point a finger at the IMF."

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