Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64104 Wed, 11 Jul 2018 21:08:33 GMT Billionaires Have Already Written-Off The Rest of the Human Race http://implode-explode.com/viewnews/2018-07-11_BillionairesHaveAlreadyWrittenOffTheRestoftheHumanRace.html When the hedge funders asked me the best way to maintain authority over their security forces after "the event," I suggested that their best bet would be to treat those people really well, right now. They should be engaging with their security staffs as if they were members of their own family. And the more they can expand this ethos of inclusivity to the rest of their business practices, supply chain management, sustainability efforts, and wealth distribution, the less chance there will be of an "event" in the first place. All this technological wizardry could be applied toward less romantic but entirely more collective interests right now.

They were amused by my optimism, but they didn't really buy it. They were not interested in how to avoid a calamity; they're convinced we are too far gone. For all their wealth and power, they don't believe they can affect the future. They are simply accepting the darkest of all scenarios and then bringing whatever money and technology they can employ to insulate themselves -- especially if they can't get a seat on the rocket to Mars.

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iehi-feed-64084 Wed, 04 Jul 2018 18:47:23 GMT 4th of July Gas Prices are Set to be the Highest Since 2014 http://implode-explode.com/viewnews/2018-07-04_4thofJulyGasPricesareSettobetheHighestSince2014.html iehi-feed-64034 Sun, 17 Jun 2018 18:30:57 GMT Venezuela Orders Government Services to Accept Any Cryptocurrency http://implode-explode.com/viewnews/2018-06-17_VenezuelaOrdersGovernmentServicestoAcceptAnyCryptocurrency.html iehi-feed-63985 Sat, 02 Jun 2018 11:50:40 GMT Trump May Have Brokered Massive, Sanctions-Violating Oil Deal In Russian Quid-Pro-Quo http://implode-explode.com/viewnews/2018-06-02_TrumpMayHaveBrokeredMassiveSanctionsViolatingOilDealInRussianQui.html Evidence strongly indicates that President Donald J. Trump and his campaign associates brokered a massive oil privatization deal, where his Organization facilitated a global financial transaction to sell Russian Oil stock to its Syrian War adversary, the Emirate of Qatar... The end result allowed Russia to trade stolen emails to help to Donald Trump's election campaign (as well as that of many Republican Congressmen), in exchange for help circumventing American sanctions to transact the sale of Rosneft, which Putin desperately needed to finance his budget deficit.

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Carter Page met with Rosneft in December to assist with the deal, and he's on the record admitting it but claims he didn't meet Igor Sechin," said Dworkin incredulously... mighty brokerage fee to one of the Trump campaign advisors, Moscow-based investment banker Carter Page, is highlighted in the former MI-6 operative's report.

Theoretically, the former Merrill Lynch investment banker, Page, may have only been the "bag man" or go-between and someone else is the recipient of the cash premium in the dossier. Five hundred million dollars is a lot of money, and conceivably, many members of the Trump Organization, or family, could be involved in a deal of that scope.

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Nineteen and a half percent of Rosneft's stock was agreed to be transferred on December 7th, before the board was informed of the transaction's terms only after it took place.

The "matryoshka" (named after the famous nesting dolls) or complex deal structure is most likely designed to avoid American sanctions imposed over the Ukraine invasion against Rosneft, its CEO Igor Sechin, and its parent company Gazprom.

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iehi-feed-63977 Tue, 29 May 2018 16:06:04 GMT U.S. Futures Fall as Italy's Political Turmoil Hits Markets http://implode-explode.com/viewnews/2018-05-29_USFuturesFallasItalysPoliticalTurmoilHitsMarkets.html U.S. equity futures tumbled, following global shares lower, as Italy's political turmoil deepened. U.S. 10-year Treasuries and the dollar advanced as the euro touched its lowest level since July. Oil extended losses after Saudi Arabia and Russia said they are mulling a boost to production later this year.

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"There was a lot of complacency in the market recently, so this is a brutal wake-up call for investors who had forgotten about political risks in Europe and especially in Italy... The risk is that the populist parties gain ground in the next Italian election, which would be really bad news for the euro zone. Clearly, investors are moving to the sidelines for now."

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iehi-feed-63866 Sun, 15 Apr 2018 13:56:35 GMT World May Hit 2 Degrees of Warming in 10-15 Years Thanks to Fracking, Says Cornell Scientist http://implode-explode.com/viewnews/2018-04-15_WorldMayHit2DegreesofWarmingin1015YearsThankstoFrackingSaysCorne.html The most recent climate data suggests that the world is on track to cross the two degrees of warming threshold set in the Paris accord in just 10 to 15 years, says Ingraffea in a 13-minute lecture titled "Shale Gas: The Technological Gamble That Should Not Have Been Taken," which was posted online on April 4.

That's if American energy policy follows the track predicted by the U.S. Energy Information Administration, which expects 1 million natural gas wells will be producing gas in the U.S. in 2050, up from roughly 100,000 today.

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"Whereas the worst-case scenario brought us to 1.5 degrees Centigrade in 2040," he adds, "we're almost there today." ... It's an alarming message -- even though the shale rush has stumbled somewhat as gas prices collapsed and many drillers went bankrupt, the cumulative impact of American fracking appears to have set the entire world on a collision course with climate change's most extreme effects.

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iehi-feed-63852 Wed, 11 Apr 2018 21:54:48 GMT Venezuela in apparent "Stealth Default"; stopped bond payments in September http://implode-explode.com/viewnews/2018-04-11_VenezuelainapparentStealthDefaultstoppedbondpaymentsinSeptember.html Venezuela stopped paying bondholders in September, according to central bank data, contradicting statements by President Nicolás Maduro that the country would continue to honour its debts while negotiating a resettlement with its creditors.The data show that regular foreign debt payments of hundreds of millions of dollars a month, in line with the country's sovereign obligations, fell to a few tens of millions from last October for fees and the legacy of a 1980s-era restructuring."This proves that Venezuela is deliberately hoodwinking bondholders and engaging in a stealth default," said Russ Dallen of boutique bank Caracas Capital, who follows Venezuelan debt closely.The data were posted in an Excel file as part of a recent revamp of the central bank's website and include monthly expenditures in US dollars on public foreign debt payments going back to 1996. Previously, data on foreign debt payments were published in the form of a ratio that revealed little information, Mr Dallen said. "This must have been posted by an intern," he added.

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The central bank data, which cover payments of sovereign debt only and exclude obligations by PDVSA and other state entities, show that just $83m was paid in October, compared with sovereign obligations amounting to $465m, according to data from Caracas Capital.Payments in November fell to $28m, compared with obligations of $183m, and in December declined to $23m, compared with obligations of $242m.

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"They have been doing it [defaulting] strategically to sow confusion. They have said they have begun the process of paying things they clearly did not pay, and blamed it all on sanctions."The US has imposed several rounds of sanctions on Venezuelan individuals and institutions. Adding to pressures last August, it also banned any involvement in new bonds or shares issued by the government or PDVSA. Last month it prohibited involvement in the country's proposed digital currency, the petro, as well

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iehi-feed-63717 Sun, 04 Mar 2018 04:27:26 GMT German Court Rules That Cities Can Limit Diesels to Cut Pollution http://implode-explode.com/viewnews/2018-03-03_GermanCourtRulesThatCitiesCanLimitDieselstoCutPollution.html A court in Germany has ruled that the cities of Stuttgart and Düsseldorf can ban older diesel vehicles as a means of reducing pollution. The ruling by the Federal Administrative Court in Leipzig paves the way for other German cities to ban oil burners. The case was brought by the environmental group Deutsche Umwelthilfe.

The BBC pointed out that about 70 German cities exceeded nitrogen oxide limits set by the European Union last year. "The likelihood now is that the German government will rush to introduce some sort of national policy, to ensure at least some level of consistency across the country," the news organization opined.

The ruling affects diesels sold through 2009, though Car and Driver notes that restrictions on oil-burning vehicles sold up until 2014 could follow. If that happens, most of the more than 15 million diesel vehicles registered in Germany would be effected, the magazine reports. About one third of all vehicles in Western Europe's most populous nation are diesel.

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iehi-feed-63655 Thu, 22 Feb 2018 01:55:38 GMT Dow closes 166 points lower after 10-year yield hits 4-year high on Fed minutes http://implode-explode.com/viewnews/2018-02-21_Dowcloses166pointslowerafter10yearyieldhits4yearhighonFedminutes.html iehi-feed-63311 Sun, 19 Nov 2017 04:42:13 GMT Trump's Saudi Scheme Unravels http://implode-explode.com/viewnews/2017-11-18_TrumpsSaudiSchemeUnravels.html Why did Trump gamble so heavily on the inexperienced Kushner and the impulsive MbS? Well, of course, if such a "grand plan" had indeed worked out, it would have been a major foreign policy coup -- and one done over the heads of the professional foreign policy and defense echelon who were excluded from it. Trump then would have felt himself freer to ascend above the Establishment tentacles: to attain a certain elevated independence and freedom from his "minders." He would have achieved his coup through family channels, rather than be officially advised.

But, if it sinks into farce, and MbS becomes regarded in the U.S. as a maverick, rather than a Machiavelli, the (slighted) "system" will exact its revenge: presidential judgments will stand devalued -- and ever more in need of justification and "minding."

MbS (and Kushner) may have hurt President Trump in a much wider way therefore: the failed bet on the untried MbS may leach into other spheres -- such as, in consequence, U.S. allies' openly questioning the soundness of Trump's North Korea judgments. In short, the U.S. President's credibility will bear the consequences for his falling for MbS' spin.

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iehi-feed-63299 Fri, 17 Nov 2017 23:58:30 GMT Saudi Arabia Offers Arrested Royals A Deal: Your Freedom For Lots Of Cash http://implode-explode.com/viewnews/2017-11-17_SaudiArabiaOffersArrestedRoyalsADealYourFreedomForLotsOfCash.html Saudi authorities are negotiating settlements with princes and businessmen held over allegations of corruption, offering deals for the detainees to pay for their freedom, people briefed on the discussions say.

 

In some cases the government is seeking to appropriate as much as 70 per cent of suspects' wealth, two of the people said, in a bid to channel hundreds of billions of dollars into depleted state coffers.

 

The arrangements, which have already seen some assets and funds handed over to the state, provide an insight into the strategy behind Crown Prince Mohammed bin Salman's dramatic corruption purge.

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Regular Saudis, who've seen their benefits cut and some of their jobs taken away, support MbS's decision. "Why should the poor take all the pain of austerity," said one Saudi academic. "The rich need to pay their way too."

In Saudi Arabia, they are about to do just that.

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iehi-feed-63285 Tue, 14 Nov 2017 20:54:24 GMT Venezuela's Bondholder Meeting Is a Bust as S&P Declares Default http://implode-explode.com/viewnews/2017-11-14_VenezuelasBondholderMeetingIsaBustasSPDeclaresDefault.html Venezuela's grand gathering with creditors Monday lasted all of 30 minutes and didn't produce anything of substance. To make matters worse, S&P Global Ratings declared the country in default while Fitch Ratings cited missed payments by the state oil company prompting a fresh selloff in the nation's bonds.

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Very little was announced and nothing was resolved, according to attendees who said they left just as confused about the government's intentions as they were going in. Vice President Tareck El Aissami was the only official to speak, and devoted most of his prepared remarks to railing against Donald Trump and global financiers who he said have conspired to keep the country from making debt payments on time. He pledged the nation would continue to honor its obligations and work with bondholders to find new ways to get them their money, but offered no concrete proposals for restructuring.

President Nicolas Maduro had summoned holders of some $60 billion of bonds issued by the government and state oil company Petroleos de Venezuela SA to begin a renegotiation as the nation's cash crunch worsens, sanctions make it difficult to transfer money and delayed payments pile up.

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The nation, home to the world's largest oil reserves, owed investors about $200 million and failed to make those payments by the end of a 30-day grace period, S&P said in the statement in which it lowered the country's rating to SD. Plagued with payment delays and running low on cash -- and with most of its debt trading near 30 cents on the dollar -- it's the first time in recent years the government has exceeded the buffer period on its bonds.

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Investors in Venezuela's $5 billion of bonds maturing in 2019 and 2024 can organize to demand that the nation immediately pay back all they're owed, and down the line, holders of the nation's other debt, which have cross-default provisions, could choose to do the same... they risk setting off what could be the start of one of the messiest debt restructurings ever. S&P said there was a 50 percent chance Venezuela will default again within the next three months.

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iehi-feed-63264 Thu, 09 Nov 2017 17:51:31 GMT Dissecting the "$250 Billion" China Deals Trump Got for U.S. http://implode-explode.com/viewnews/2017-11-09_Dissectingthe250BillionChinaDealsTrumpGotforUS.html The White House has unveiled a slew of agreements with China as President Donald Trump seeks to address an imbalance in trade. While Commerce Secretary Wilbur Ross boasted a total of $250 billion in business deals, getting to that figure may require some fuzzy math. 

Many of the deals weren't broken out into separate valuations, while a large number were in the form of non-binding memoranda of understanding or involved agreements with existing Chinese partners.

Boeing Co.'s $37 billion aircraft order consists mostly of previously agreed deals, according to officials with knowledge of the matter. An agreement involving Cheniere Energy Inc. was presented at the signing ceremony as worth $11 billion, though neither company involved announced the value. Other pacts are stretched over lengthy periods, such as a 20-year shale gas and chemical project in West Virginia.

Still, the wave of deals signals the potential for an easing of tensions between the two countries, in addition to an increase in trade for products ranging from helicopters to beef...

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iehi-feed-63251 Sun, 05 Nov 2017 17:12:48 GMT What Happened in Saudi Arabia Last Night -- And How Washington Corruption Enabled It http://implode-explode.com/viewnews/2017-11-05_WhatHappenedinSaudiArabiaLastNightAndHowWashingtonCorruptionEnab.html The move marks a moment of reckoning for Washington's foreign policy establishment, which struck a bargain of sorts with the Crown Prince Mohammed bin Salman, known as MBS, and Yousef Al Otaiba, the United Arab Emirates ambassador to the U.S. who has been MBS's leading advocate in Washington. The unspoken arrangement was clear: The UAE and Saudi Arabia would pump millions into Washington's political ecosystem while mouthing a belief in "reform," and Washington would pretend to believe that they meant it. MBS has won praise for some policies, like an openness to reconsidering Saudi Arabia's ban on women drivers.

Meanwhile, however, the 32-year-old MBS has been pursuing a dangerously impulsive and aggressive regional policy, which has included a heightening of tensions with Iran, a catastrophic war on Yemen, and a blockade of ostensible ally Qatar. Those regional policies have been disasters for the millions who have suffered the consequences, including the starving people of Yemen, as well as for Saudi Arabia, but MBS has dug in harder and harder. And his supporters in Washington have not blinked.

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iehi-feed-63249 Sun, 05 Nov 2017 05:23:48 GMT In Apparent Purge, Saudi King Arrests Billionaire Prince Bin Talal, Dozens Of Others In Cabinet Crackdown http://implode-explode.com/viewnews/2017-11-05_InApparentPurgeSaudiKingArrestsBillionairePrinceBinTalalDozensOf.html iehi-feed-63222 Sat, 28 Oct 2017 14:18:53 GMT Tesla Cuts Vendor Orders: Could Be In A World Of Hurt http://implode-explode.com/viewnews/2017-10-28_TeslaCutsVendorOrdersCouldBeInAWorldOfHurt.html If 3,000 per week is the minimum contract size Tesla can go to, then Tesla may be forced to order 3K kits on an ongoing basis whether it needs or not. These 3,000 kits per week at $10,000 per kit of orders leads to $30M in cash burn per week.

Given these orders have a lead time of 2 months, it is likely that Tesla will be, or already has been, saddled with at least a quarters worth of inventory. One-quarter inventory could mean $650M in cash (in part financed with ABL) that needs to be parked in parts inventory ($50M X 13 weeks).

Going forward, for every week of delay in Model 3 ramping, Tesla will be burning cash/ABL at a rate of $30M per week.

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As the capital raise comes into focus, and with Model 3 story in disarray, we expect that the next capital raise will be a difficult one for Tesla. As funds and savvy investors realize this eventuality, we expect that there will be an exodus from the stock.

In our opinion, there is a steep fall ahead for Tesla stock.

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iehi-feed-63207 Thu, 26 Oct 2017 14:07:47 GMT Saudi Arabia becomes first country to grant citizen ship to a robot; To build "Robot City" http://implode-explode.com/viewnews/2017-10-26_SaudiArabiabecomesfirstcountrytograntcitizenshiptoarobotTobuildR.html iehi-feed-63197 Tue, 24 Oct 2017 22:03:39 GMT China's "Petro-Yuan" Plans Will Be a "Wake Up Call": Fund Mgr. http://implode-explode.com/viewnews/2017-10-24_ChinasPetroYuanPlansWillBeaWakeUpCallFundMgr.html Adam Levinson, of hedge fund manager Graticule Asset Management Asia, said China rolling out a yuan-denominated oil contract within the next two months will be a "wake up call" for investors who haven't paid attention to the plans.

The move toward creating a so-called "petro-yuan" will be a "huge story," Levinson, the founder and chief investment officer of Singapore-based Graticule, said in a Bloomberg Television interview on Tuesday.

Besides serving as a hedging tool for Chinese companies, the contract will aid a broader government agenda of increasing the use of the yuan in trade settlement, Levinson said. Chinese oil companies will probably be anchor investors in Saudi Arabia's initial public offering of its state oil company, Saudi Aramco, he said.

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iehi-feed-63147 Mon, 16 Oct 2017 21:10:11 GMT Goldman Sachs thinks we're heading into a bear market http://implode-explode.com/viewnews/2017-10-16_GoldmanSachsthinkswereheadingintoabearmarket.html iehi-feed-63135 Sat, 14 Oct 2017 16:33:45 GMT Tesla fired hundreds of employees in past week http://implode-explode.com/viewnews/2017-10-14_Teslafiredhundredsofemployeesinpastweek.html