Mar 12

- Bank Of Korea Unexpectedly Cuts Interest Rate To Record Low 1.75%, 24th Central Bank To Ease In 2015 (ZeroHedge, March 11, 2015):

The currency war salvos just keep on coming.  Moments ago the BOK unexpectedly (the move was predicted by just 2 of 17 economists polled by Bloomberg) cut its policy rate from 2.00% to a record low 1.75%, in what is clearly a full-blown retaliation against the collapse currency of its biggest export competitor, Japan, whose currency has cratered to a level that many in South Korea believe has become a direct subsidy for its competing exports. As such the only question is why the BOK didn’t cut earlier. And following the surprise rate cut by Thailand earlier today, the “surprise” South Korean rate cut means there are now 24 easing policy actions by central banks in 2015 alone.

 …

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Mar 11

From the article:

“Reuters reported that Venezuela’s central bank is in talks with Wall Street banks to create a gold swap that would allow it to monetize some $1.5 billion of the metal held as international reserves, according to government sources familiar with the operation.”

If true, then you know now who really is in control in Venezuela.


Venezuela gold

- Venezuela Begins Liquidating Its Gold (ZeroHedge, March 11, 2015):

Yesterday we reported that in retaliation to the latest Obama executive order which declared Venezuela a national security threat and ordered sanctions against seven officials, Maduro promptly took advantage of this “outside threat” to rally his toilet paper-starved population “around the flag”, and while pointing at the “evil imperialist” Obama, granted himself even greater authoritarian powers: “I have put together a special law that gives me special powers to preserve the peace, the integrity and the sovereignty of the country before any situation that presents itself due to this imperialist aggression.Continue reading »

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Mar 09

A clerk counts Chinese 100 yuan banknotes at a branch of China Construction Bank in Hai'an, Jiangsu province

- The De-Dollarization Axis: China Completes SWIFT Alternative, May Launch As Soon As September (ZeroHedge, March 9, 2015):

One of the recurring threats used by the western nations in their cold (and increasingly more hot) war with Russia, is that Putin’s regime may be locked out of all international monetary transactions when Moscow is disconnected from the EU-based global currency messaging and interchange service known as SWIFT (a move, incidentally, which SWIFT lamented as was revealed in October when we reported that it announces it “regrets the pressure” to disconnect Russia). Continue reading »

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Mar 05

- The Chinese have put out billboard ads announcing the renminbi as the new world currency (Sovereign Man, March 4, 2015):

When I arrived to Bangkok the other day, coming down the motorway from the airport I saw a huge billboard – and it floored me.

The billboard was from the Bank of China. It said: “RMB: New Choice; The World Currency”

China-rmb-world-currency

Given that the Bank of China is more than 70% owned by the government of the People’s Republic of China, I find this very significant. Continue reading »

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Mar 05

- IMF Director Admits: Greek Bailout Was “To Save German & French Banks” (ZeroHedge, March 4, 2015):

For the first time in public, though practically the entire world assumed it, an official from The IMF has admitted that the various Greek bailouts were not for The Greeks at all… “They gave money to save German and French banks, not Greece,” Paolo Batista, one of the Executive Directors of International Monetary Fund told Greek private Alpha TV on Tuesday. As KeepTalkingGreece reports, Batista then went on to strongly criticized not only the euro zone and the European Central Bank but also the IMF and the Fund’s managing Director Christine Lagarde for defending Europe much too much

Oops! “The Greek issues were not the best handled by The IMF… They put too much of a bruden on Greece and not enough of a burden on Greece’s creditors

Batista then urged Greece to directly negotiate with the IMF and favored the restructuring of the Greek debt that is been hold by the European partners. Continue reading »

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Mar 05

rbs

- RBS is cutting 14,000 investment banking jobs (Business Insider, Feb 4, 2015):

According to a report in the Financial Times, RBS will cut about 14,000 investment bank jobs in the US and Asia by 2019. This is about three-quarters of the total investment bank workforce, which stands at 18,000. However, the bank employs 118,000 people worldwide across all units.

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Mar 03

Blankfein-Hillary-Clinton

- As Jeb Bush Pounces On The Hillary Email Scandal, The Real Winner Is… Goldman Sachs (ZeroHedge, March 3, 2015):

While the Clintons have had their share of funding snafus in recent history exposing the former “not truly well off” first lady as not only a puppet of not only Wall Street but also America’s mega corporations, Hillary Clinton’s use of personal email accounts as America’s former top diplomat is a far more serious issue as it touches directly on accountability, and rational decision-making while in a top position of government power. To say that it impairs her image as a presidential candidate who puts the country ahead of her own interests, would be an understatement. Continue reading »

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Mar 02

bank-failure1

- Lehman Moment For Austrian “Bad Bank” Means Worse Coming (ZeroHedge, March 2, 2015):

Not “contained.” Just six short months ago, the 2Y bonds of Austria’s bank bank – HETA Asset Resolution AG – were trading well above par as the world and his mom reached for yield (~6%) in all the wrong places. Today, following the “spectacular development” over the weekend that the bank will be wound down due to the discovery of an $8.5bn “hole” in its balance sheet, the 2Y HETA bonds are trading below 50c on the dollar (at a yield of 54%). This is indeed Austria’s “Lehman” moment as for the first time in the new European ‘bail-in’ era, senior debt is getting a massive haircut.

As we noted yesterday, the punchline, is that while the world was waiting for Greece to announce capital controls, or a bail-in over the past week, it was none other than one of the Europe’s most pristeen credits (one which until recently was rated AAA/Aaa) that informed creditors a bail-in is imminent: “The finance ministry noted that creditors can be forced to contribute to the costs of winding down Heta – or “bailed in” – under new European legislation that Austria adopted this year so that taxpayers do not have to shoulder the entire burden.Continue reading »

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Mar 02

Sundown In America

- David Stockman Warns “It’s One Of The Scariest Moments In History” (ZeroHedge, March 1, 2015):

“The Fed is out of control,” exclaims David Stockman – perhaps best known for architecting Reagan’s economic turnaround known as ‘Morning in America’ – adding that “people don’t want to hear the reality and the truth that we’re facing.The following discussion, with Harry Dent, outlines their perspectives on the looming collapse of free market prosperity and the desctruction of American wealth as policymakers “take our economy in a direction that is dangerous, that is not sustainable, and is likely to fully undermine everything that’s been built up and created by the American people over decades and decades.” The Fed, Stockman concludes, “is a rogue institution,” and their actions have led us to “one of the scariest moments in our history… it’s a festering time-bomb and we’re not sure when it will explode.”

Full Discussion:

Continue reading »

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Mar 01

hypo group_0

- “Spectacular Developments” In Austria: Bail-In Arrives After €7.6 Billion Bad Bank Capital Hole “Discovered” (ZeroHedge, March 1, 2015):

Slowly, all the lies of the “recovery”, all the skeletons in the closet, and all the bodies swept under the rug are emerging.

Moments ago, Austrian ORF reported that there have been “spectacular developments” in the case of the Hypo Alpe Adria bad bank, also known as the Heta Asset Resolution, where an outside audit of Heta’s balance sheet exposed a capital hole of up to 7.6 billion euros ($8.51 billion) which the government was not prepared to fill, the Austrian Financial Market Authority said.

As a result, according to Reuters, the bad bank that was created in the aftermath of the Hypo collapse, is itself about to be unwound, as the bad bank itself goes bad! Continue reading »

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Mar 01

- China Cuts Interest Rates, Takes Number Of Central Banks Easing In 2015 To 21 (ZeroHedge, Feb 28, 2015):

And then there were 21. Hours ago on Saturday, the country whose currency is largely pegged to the dollar which itself is now anticipating a rate hike in the coming months, surprised the world by confirming its economic slowdown yet again following a recent rate cut just this past November when it lowered its benchmark rate by 40 bps, after it again cut benchmark lending and deposit rates by 25 bps starting on March 1. Specifically, the PBOC will lower the one-year lending rate to 5.35% from 5.6% and its one-year deposit rate to 2.5% from 2.75%. It also said it would raise the maximum interest rate on bank deposits to 130% of the benchmark rate from 120%.

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Feb 28

bank-failure1

- Puerto Rico’s 3rd Largest Bank Fails (ZeroHedge, Feb 27, 2015):

Based on Bloomberg data, Doral Bank is the 3rd largest (by assets) bank in Puerto Rico…or rather was. After a 58% collapse in the share price today, news broke after the close:

*PUERTO RICO’S DORAL BANK PLACED UNDER FDIC RECEIVERSHIP, BANCO POPULAR AGREES TO BUY DORAL BANK OPERATIONS

It appears Non-Performing Loans were over 40%. Popular will take the deposits (and 8 of Doral’s 26 branches) and the FDIC eats the bad debt (estimates to cost the Deposit Insurance Fund (DIF) will be $748.9 million).

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Feb 27

Is This The Most Important Chart For The Future Of The World’s Reserve Currency? (ZeroHedge, Feb 25, 2015):

When it comes to the future of the dollar status as the world’s reserve currency, the most important chart may be the fact that the US is now so woefully buried in debt that another global military conflict appears inevitable…

US debt

… or that it now takes virtually unlimited monetization of the debt shown above to preserve the illusion that the US is not bankrupt, pushing the S&P to record highs in the process…

fed monetary base

… or that the marginal impact of every additional dollar in new debt generates increasingly less economic growth? Continue reading »

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Feb 27

Great-Seal

- Janet Yellen Is Freaking Out About ‘Audit The Fed’ – Here Are 100 Reasons Why She Should Be (End Of The American Dream, Feb 24, 2015):

Janet Yellen is very alarmed that some members of Congress want to conduct a comprehensive audit of the Federal Reserve for the first time since it was created.  If the Fed is doing everything correctly, why should Yellen be alarmed?  What does she have to hide?

During testimony before Congress on Tuesday, she made “central bank independence” sound like it was the holy grail.  Even though every other government function is debated politically in this country, Yellen insists that what the Federal Reserve does is “too important” to be influenced by the American people.  Does any other government agency ever dare to make that claim?

But of course the Federal Reserve is not a government agency.  It is a private banking cartel that has far more power over our money and our economy than anyone else does.  And later on in this article I am going to share with you dozens of reasons why Congress should shut it down. Continue reading »

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Feb 27

Somebody tell them that all those billions were just spent to bail out the banksters …

- ‘Greece Won’t See A Cent Of The GREAT BAILOUT’ (Telegraph) … It’s All For The Banksters!

… but then I am sure they knew it already.


- “NEIN” – Germany’s Bild Has A Message For Greece: “No More Billions For Greedy Greeks” (ZeroHedge, Feb 25, 2015):

One day ahead of a key vote in the German Bundestag whether to ratify the 4-month Greek bailout extension, the biggest-selling, mass-market newspaper (or tabloid as some call it) with a circulation of 2.5 million, Bild, has made it very clear just how it feels about the latest Greek can kicking event.

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Feb 26

- Greece Suffers Biggest Bank Run In History: January Deposits Plunge To 2005 Levels (ZeroHedge, Feb 26, 2015):

Moments ago the Bank of Greece presented its latest, January, deposit data. And it’s a doozy: following a record €12.2 billion monthly outflow, greater in absolute and relative terms than anything experienced during any of the previous Greek crises and bailouts, the total amount of Greek corporate and household deposits has now tumbled to just €148 billion. This number is in line with some of the more pessimistic expectations, and brings the total cash holdings at Greek banks to the lowest level since August 2005.

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Feb 25

Financial-Bank-Account

- US government’s new ‘rule’ allows banks to completely make sh*t up (Sovereign Man, Feb 23, 2015):

In 1494, a 47-year old Franciscan friar named Luca Pacioli invented something that was revolutionary.

Pacioli was, in fact, a friend and contemporary of Leonardo da Vinci, and the two collaborated frequently.

So you’re probably guessing that Pacioli was a co-designer in Leonardo’s famed flying machine, or a new architectural technique.

On the contrary.

Pacioli’s invention was the double-entry accounting system; in fact he’s known by bean counters today as the father of accounting.

This was a major and much needed innovation at the time.

In the 15th century, Italy was dominating global trade and commerce.

Yet unlike in the centuries before where merchants were primarily transporters and traders of exotic goods, 15th century merchants had essentially become proto-bankers whose primary business was extending and trading credit.

This was a major change in the way that business was done, and it absolutely demanded a new way to keep track of it all.

That’s exactly what Pacioli invented. And his system of accounting is still being used today, over 500 years later. Continue reading »

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Feb 25

jpmorgan

- NIRP Officially Arrives In The US As JPM Starts Charging Fees On Deposits (ZeroHedge, Feb 24, 2015):

The nebulous threat of NIRP in the US “some time in the future” became tangible after J.P. Morgan Chase, the largest US bank by assets (and second largest in the US by total derivative notional) is preparing to charge large institutional customers for some deposits. WSJ adds that JPM “is aiming to reduce the affected deposits by billions of dollars, with a focus on bringing the number down this year. “The moves have thrown into question a cornerstone of banking, in which deposits have been seen as one of the industry’s most attractive forms of funding.

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Feb 24

From the article:

Under scrutiny are Bank of Nova Scotia , Barclays PLC, Credit Suisse Group AG , Deutsche Bank AG , Goldman Sachs Group Inc., J.P. Morgan Chase & Co., Société Générale SA, Standard Bank Group Ltd. and UBS AG , according to one of the people close to the investigation.”


- Ten Banks, Including JPM, Goldman, Deutsche, Barclays, SocGen And UBS, Probed For Gold Rigging (ZeroHedge, Feb 23, 2015):

No matter how many times the big banks are caught red-handed manipulating precious metals, some failed former Deutsche Bank prop-trader (you know who you are) will take a vociferous stand based on ad hominem attacks and zero facts that no, what you see in front of you is not precious metal rigging at all but a one-off event that has nothing to do with a criminal banking syndicate hell bent on taking advantage of anyone who is naive and dumb enough to still believe in fair and efficient markets. Continue reading »

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Feb 23

schauble stare

nein nein nein

- Why Germany Will Throw Up On The Greek “Reform Proposals”: Wage Hikes, Foreclosure Protection, “Red Lines” (ZeroHedge, Feb 23, 2015)

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