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Financial news and economic items of interest
Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?
A ranking Russian lawmaker has put forward a suggestion for Moscow to accept gold-backed cryptocurrency for payments in Russian arms exports to go around financial sanctions imposed by the West against the Kremlin, reported the official Russian state news agency, Tass.
Vladimir Gutenev, first deputy head of the economic policy Committee of the State Duma, the Russian Parliament’s lower chamber, also proposed the suspension of several treaties with the US, including the non-proliferation of missile technologies, as well as the deployment of tactical nuclear weapons in other countries.
“In order to respond to possible US attempts to thwart deals on Russian weaponry and civilian goods," Gutenev said and added Russia should "consider the possibility of conducting transactions in cryptocurrencies that are linked to the value of gold." - CryptovestOngoing trends for the future of commerce are showing that it is very likely that use of gold and silver, Blockchain technology, and cryptocurrencies in some form will replace the current dollar system that acts as a medium of exchange for global trade. And with Russia being at the forefront for ditching the dollar, accumulating gold, and aiding in the creation of Blockchain technologies, it should not be surprising if gold backed cryptocurrencies in some form become a way for nations to evade U.S. hegemony and their use of the dollar as an economic weapon.
The International Monetary Fund (IMF) approves of South Africa’s controversial land reform as long as the highly contentious process is “rules-based” and transparent, according to the fund’s representative in the country.
Montfort Mlachila, the IMF’s senior resident representative in South Africa, said that the regulation must not damage agricultural output and put at risk food supplies for the country’s citizens.
“We are in full support of the need to undertake land reforms in order to address the issues of inequality,” Mlachila said in an interview with Reuters. – Russia TodayIt appears that the IMF did not learn the lessons of two decades before in the nation of Zimbabwe when their own former dictator Robert Mugabi seized lands owned by white citizens and subsequently destroyed the 'bread basket' of Africa through his actions. In fact in 2005, the IMF finally admitted defeat after years of supporting the Magabi regime through loans and money, and pulled out of the country.
On December 3, the IMF, Zimbabwe’s most important source of development funding, announced that it is beginning disciplinary "compulsory withdrawal" procedures against Zimbabwe, a strong and rarely applied form of censure that could eventually lead to the country’s expulsion from the IMF. "Zimbabwe has not cooperated with the fund," says Doris Ross, division chief of the IMF’s Africa department. - CFR
“This is the first time I have felt anxious about the future,” (immediately following the death of Nelson Mandela) admitted Leon Louw, a prominent anti-apartheid activist and executive director of the South Africa-based Free Market Foundation. He told WND that throughout all of the turmoil in South Africa in recent decades, “We never felt pessimistic, we felt optimistic all along, but now, I feel worried for the first time.”
Today, he said, “most government positions, most of the cabinet are … the ultra-left, socialists and communists.”
Officially, about 25 percent of South Africans are out of work, double that from 1994. If one counts “discouraged workers,” the real rate is closer to 40 percent.
Experts who spoke with WND pointed out that official figures do not tell the whole picture because large numbers of South Africans work outside the formal economy, at least partly due to burdensome government labor-market regulations.
However, there is little doubt that the nation has a massive and chronic unemployment problem affecting all races, and especially blacks, despite intensifying “black economic empowerment” schemes. - WND
Vietnam plans to officially allow the use of the Chinese yuan for trading goods in its northern border towns, the central bank said on Wednesday.
The State Bank of Vietnam announced on its website that merchants, residents and related banks and institutions engaged in cross-border trade will be authorized to use the yuan, or the Vietnamese dong, to settle transactions starting on Oct. 12.
The central bank did not provide further details, but many economists see the decision as an attempt to reduce foreign exchange risks from current trading practices.
Trade between Vietnam and China exceeds $100 billion, and most transactions are settled in U.S. dollars. This creates a forex hazard for both sides. – Nikkei Asia ReviewDe-dollarization, or trading directly with one's own currency, began in earnest in 2013 when Russia and China agreed to use the Yuan instead of the dollar in an energy agreement. However this paradigm of bi-lateral trade has accelerated here in 2018 thanks to Trump's global trade war, and the Fed's raising of interest rates on the reserve currency.
Tallahassee mayor Andrew Gillum, 39, stunned his opponents with an upset victory Tuesday amid the highest turnout for a midterm primary election in Florida history.
The Tallahassee mayor's victory amounts to the largest political upset for a progressive candidate since Alexandria Ocasio-Cortez's June defeat of Rep. Joe Crowley (D-NY), the fourth most powerful Democrat in the House. - ZerohedgeOn the flip side Trump, or 'right wing' populist candidates are also making headway into the GOP establishment with several state candidates, especially in the mid-west, using the President's coattails to try to unseat long time incumbents.
Braun, who owns a distribution and freight company, says he would not have launched his Republican effort for the U.S. Senate if Trump had not blazed the trail two years ago.
“I thought there was the opportunity to define a different kind of candidacy, one from the outsider business world, the same thing Trump did,” he told Reuters ahead of the primary vote on Tuesday.
Other Republican primary races in Ohio and West Virginia on Tuesday also feature outsider businessmen who have gone all out to show their allegiance to Trump and accuse their rivals of lacking the same fealty.
The candidates also highlight a shift in the Republican Party to embrace more populist, nativist and protectionist candidates skeptical of immigration and free trade – a seismic change from the party’s traditional alliance of social conservatives and free-marketeers. - ReutersFew in the Establishment have been paying attention to the sea-change that has taken place in the U.S. since the 2008 financial crisis when Americans began to question their institutions and sought to bring change in a myriad of ways. First through the Occupy Wall Street movement, then through the Tea Party and Ron Paul Revolution of 2012. And more than anything, the rise of populism has divided the country into three political or ideological blocs, with the biggest target of course are those affiliated with the status quo.
Set to be launched by the Allocated Bullion Exchange (ABX) – the world’s first electronic institutional allocated physical precious metal bullion exchange – Kinesis is a wholly integrated value exchange system, linking to globally accessible crypto currencies that are directly backed by hard assets in gold and silver, giving them intrinsic value.
The real challenge for an alternative global system of value exchange is not for it to be a wealth creation exercise for the elite, but an effective method of transfer that is stable, cannot be manipulated by institutions or governments, protects the individual, has an intrinsic value and can be used quickly for ordinary, day-to-day transactions.
The Kinesis currencies
KAU (gold-backed, 1 KAU = 1 gram of gold) and KAG (silver-backed, 1 KAG = 10 grams of silver) are linked directly to above ground gold or silver, so can never be sold below the current price of gold and silver, which gives them stability. The currencies are protected, as they decentralise control from banks to the individual, who retains 100% title to their value at all times, unlike bank deposits.
The deposits of fully insured gold and silver are held in third-party vaults with the highest security rating across the world and these holdings will be subject to semi-annual third-party holding audits. To put that in perspective, the last full audit of the gold held in Fort Knox took place in 1954. The Kinesis system is based on LBMA (London Bullion Market Association) bars, officially recognised via the legacy system, with all associated taxes paid.
In short, Kinesis is an ethical system that enhances money as both a store of value and a medium of exchange.
Transactions take just 2-3 seconds and are proportionate to what you are buying, so, unlike other crypto currencies, these can actually be used in day-to-day transactions like buying a cup of coffee.
When you pay over the currency unit, which can be allocated using your Kinesis debit card, you are also paying over that percentage share of the gold or silver that goes with it. At the same time, transactions costs are a fraction of alternatives, making the whole system viable for day-to-day use in even small amounts. And the Kinesis debit card can be used to access cash at ATMs. - Global Banking and Finance
Underpinning it is a unique multifaceted yield system that promotes the use of Kinesis as a medium of exchange while distributing back the wealth generated according to proportionate KVT (Kinesis Velocity Token) holdings and velocity.
The KVT is an investment in the soon to be launched Kinesis Monetary system. Stakeholders are essentially buying into the success of the system. Holders of the KVT tokens will receive a 20% proportional share of the transaction fees from the Kinesis Monetary System.
The token rewards participants, proportionately to the growth of Kinesis Monetary System. To perpetuate growth of the Kinesis Monetary System, Kinesis have released the Kinesis Velocity Token (KVT). KVT’s are limited to 300,000 only. This will create an additional layer of income for token holders on top of the value of the token itself.
In a report called “A report card for unconventional monetary policy,” Deutsche Bank has analyzed the impact on the economy of “unconventional” monetary policies, quantitative easing and negative interest rates.
They have analyzed the impact on manufacturing indices from the beginning to the end of these measures, and have found the following results:
1. In eight of the 12 cases analyzed, the impact on the economy was negative
2. In three cases, it was completely neutral
3. It only worked in the case of the so-called QE1 in the US, and fundamentally because the starting base was very low and the US became a major oil and gas producer.
As Torsten Slock, the analyst at Deutsche Bank, explains, that in eight out of twelve cases the impact was negative speaks for itself. - DiacalleAs I mentioned above, QE1 was successful ONLY in helping the U.S. to stave off complete insolvency in their financial system after 2008. However subsequent QE measures accomplished virtually nothing for the real economy as seen in the chart below.
The residents of the country will now be able to invest in Petro cryptocurrency and gold, Maduro announced on Monday.
The president presented two types of gold bars that would become available for purchase to the population.
"We already have thousands of gold bars, there will be millions of them, thus, it will enable the Venezuelan people to make savings. I'm presenting two types of gold bars as part of the plan, aimed at the establishment of national savings: gold bars weighing 1.5 and 2.5 grams," — he explained.
According to Maduro, the price of a gold bar weighing 1.5 grams will reach 3,7 thousand bolivars, whereas a 2.5-gram bar will cost 6,3 thousand bolivars. – Sputnik NewsIronically the price of gold in Venezuelan Bolivar is currently into the millions thanks to a reset conducted by Maduro earlier this year. So to suddenly offer gold at a price 1000's of times less than its current value in relation to their currency smells an awful lot like just the newest fraud the President is concocting on the people to help keep his desperate government in power.
German Foreign Minister Heiko Maas says Europe has started work on creating a system for money transfers that will be autonomous from the currently prevailing Society for Worldwide Interbank Financial Telecommunication (SWIFT).
“That won’t be easy, but we have already started to do that,” Maas said at the annual Ambassadors Conference in Berlin on Monday, as quoted by RIA Novosti. “We are studying proposals for payment channels and systems, more independent from SWIFT, and for creating European monetary fund.”
Maas also announced plans to reveal a new foreign policy strategy towards the US.
“It’s high time to recalibrate the Transatlantic Partnership – rationally, critically, and even self-critically,” the FM said as cited by the agency.
Last week, Maas called for European autonomy to be strengthened by creating payment channels that are independent of the United States, establishing a ‘European Monetary Fund’.
The United States is currently waging economic warfare against one tenth of the world's countries with cumulative population of nearly 2 billion people and combined gross domestic product (GDP) of more than $15 trillion.
These include Russia, Iran, Venezuela, Cuba, Sudan, Zimbabwe, Myanmar, the Democratic Republic of Congo, North Korea and others on which Washington has imposed sanctions over the years, but also countries like China, Pakistan and Turkey which are not under full sanctions but rather targets of other punitive economic measures.
In addition, thousands of individuals from scores of countries are included in the Treasury Department's list of Specially Designated Nationals who are effectively blocked from the U.S.-dominated global financial system. Many of those designated are either part of or closely linked to their countries' leadership. - CNBCAmerica was founded upon principals that advocated no ties to foreign establishments (outside of trade), and leaving other nations alone to do as they saw fit unless they interfered directly with the inner workings of the U.S. itself. And a great example of this was the conflict against the Barbary Pirates in Libya, Morocco, and the Ottoman Empire due to their seizing of merchant ships in order to enslave U.S. personnel.
Russia will definitely respond to Washington’s latest sanctions and, in particular, it is accelerating efforts to abandon the American currency in trade transactions, said Deputy Foreign Minister Sergei Ryabkov.
“The time has come when we need to go from words to actions, and get rid of the dollar as a means of mutual settlements, and look for other alternatives,” he said in an interview with International Affairs magazine.
“Thank God, this is happening, and we will speed up this work,” Ryabkov said, explaining the move would come in addition to other“retaliatory measures” as a response to a growing list of US sanctions. Russian Energy Minister Aleksandr Novak recently noted that a growing number of countries are interested in replacing the dollar as a medium in global oil trades and other transactions.
“There is a common understanding that we need to move towards the use of national currencies in our settlements. There is a need for this, as well as the wish of the parties,” Novak said. – Russia TodayBesides occasional fluctuations on their currency, Russia has actually prospered since the U.S. imposed economics sanctions on them over the Ukraine conflict. And even more importantly, these sanctions have created a serious rift in U.S. - European relations to the point where many countries are defying Washington when it comes to the new sanctions they are planning to impose upon Iran.
As black unemployment remains at historic lows, The number of small businesses owned by African Americans in the United States has exploded by 400% year-over-year, according to a survey of more than 2,600 small business owners and entrepreneurs by Guidant Financial.
The survey reveals that in 2018, 45% of small business owners were minorities - up from just 15% three years ago, with the majority of them belonging to African American owners.
Following African Americans, Hispanics were the next largest group of minority small business owners representing 14% of the business owners interviewed for the survey. Meanwhile, Asians made up 8% of the business owners surveyed while Native Americans made up 4%. -Small Business Trends - ZerohedgeIs it any wonder why black support for President Trump has gone up from 19% to 36% since he was elected?
The day's most anticipated moment arrived, when moments ago Fed chair Jerome Powell released his speech titled "Changing Market Structure and Implications for Monetary Policy" which appears to have had zero surprises based on the preliminary assessment from Bloomberg which highlights the following key themes:
- Powell Sees Good Reason to Expect Strong Economy to Continue
- There Doesn’t Seem to Be Elevated Risk of Overheating
Powell also says that there are no clear signs of inflation accelerating above 2% (even those core CPI is now 2.4%), and curiously, Powell even explicitly cited Draghi saying:
- Gradual Hikes Likely Appropriate if Growth Stays Strong
As Brainard made clear, this is not a universal truth, and recent research highlights two particularly important cases in which doing too little comes with higher costs than doing too much. The first case is when attempting to avoid severely adverse events such as a financial crisis or an extended period with interest rates at the effective lower bound.
In such situations, the famous words “We will do whatever it takes” will likely be more effective than “We will take cautious steps toward doing whatever it takes.” The second case is when inflation expectations threaten to become unanchored. If expectations were to begin to drift, the reality or expectation of a weak initial response could exacerbate the problem.
I am confident that the FOMC would resolutely “do whatever it takes” should inflation expectations drift materially up or down or should crisis again threaten." - ZerohedgeDespite the fact that nothing actually changed from the current status quo, gold appeared to like the Chairman's words and has sprung back over $1200 for the first time in four days, with the overall price gaining $16 just an hour into the trading session.
"Africa has a lot to offer to the world. In fact, as at 2016, only a fifth of our exports were traded on the continent while the rest, 80 percent were sent overseas. All things being equal, a common continental currency would have a strong value considering the world's dependency on Africa for commodities. As for how the rest of the world might react; currencies have a relatively defined value.
If one currency is appreciating then it is gaining strength against other currencies. Therefore, a currency for which there may very well be a strong demand and consequently strong value might not be received well by those whose currencies currently dominate world trade," said Boamah.
However, she also warned that world trade is much more than commodity trade as it is also comprised of manufactured goods and other intangibles all of which are markets that Africa does not dominate. "Even in the realm of commodities, prices are set by external bodies over which we have little influence and we trade more off the continent than in it, and unless these factors change the single currency would be very vulnerable to external shocks," Boamah concluded. – All AfricaThrough this assessment lies the key, and the reason that cooperation among African nations versus their century's old system of tribal division and separation is vital to their future. Resources, production, and a strong monetary system... and each of these are very possible through the vast amount of commodities the continent holds, the new partnerships being forged with China to bring in industry and manufacturing, with the only thing remaining being that of a strong, vibrant, and stable currency.
The average defaulter is more likely to live in Hispanic and black neighborhoods, Blagg found. Her previous research has shown that minorities are more burdened by their education debt because their parents have a lower net wealth as well as higher rates of unemployment. These neighborhoods also have a median income of around $50,000, compared with $60,000 for non-defaulters. - Zerohedge
The European Union should set up a system that would allow Brussels to be independent in its financial operations from Washington, according to German Foreign Minister Heiko Maas.
“It is indispensable that we strengthen European autonomy by creating payment channels that are independent of the United States, a European Monetary Fund and an independent SWIFT system,” Mass wrote in the Handelsblatt business daily.
SWIFT is a network that enables financial institutions worldwide to send and receive information about financial transactions based in Belgium. The system’s management claims SWIFT remains politically neutral and independent. – Russia Today
Crimea was part of Russia from 1783, when the Tsarist Empire annexed it a decade after defeating Ottoman forces in the Battle of Kozludzha, until 1954, when the Soviet government transferred Crimea from the Russian Soviet Federation of Socialist Republics (RSFSR) to the Ukrainian Soviet Socialist Republic (UkrSSR).In fact the only reason that the Crimea's administration was given over to the Soviet controlled Ukraine in 1954 was because the newly appointed Premier Nikita Krushchev was from there. But even with this being a matter for debate, historical documents show that the legality of ownership was not handed over to Ukraine by 'Russia', but only its administration.
The fact, however, is that the Crimea, historically and linguistically, is Russian. At the time of the handover, a purely administrative affair when no one could ever imagine the dramatic collapse of the Soviet Union, it is certain that the authorities in Moscow could never have imagined the possible repercussions of their political and administrative decision.In other words, Crimea has been a Russian protectorate since the 18th century when they seized it from the Ottoman Turks. And if anyone today wants to dispute this, perhaps they should go back and re-read their Tennyson and the Charge of the Light Brigade.
The Crimean peninsula is ready to launch a ferry service to the Turkish Black Sea coast.
“Negotiations with the freight-shipping agents have been carried out. The Crimean ports involved in the Turkey-Crimea-Turkey ferry line will be announced soon,” said CEO of Crimean Sea Ports Aleksey Volkov. The line will be opened this fall, he added.
“Ports and services are ready, comfortable conditions for the forthcoming cooperation are provided, we are waiting for the partners’ decision and signing the agreement,” Volkov told TASS news agency.
The ferry will be used for cargo this year, and passenger traffic will begin in 2019, he said. The Crimean peninsula will deliver meat to Turkey, while the latter will ship fruits and vegetables. - Russia TodayIt is ironic that the very region that led to the U.S. imposing economic sanctions and starting an economic war against Russia is now the same place which is allowing other nations to bypass their own sanctions in trade, commerce, and banking. And perhaps this is why most world chess champions today are from Russian stock, since even when they play politics instead of chess it is like a Grandmaster playing against a child.
Sales of new U.S. single-family homes fell to an eight-month low in June and data for the prior month was revised sharply down, the latest indications that the housing market was slowing down.
The Commerce Department said on Wednesday new home sales dropped 5.3 percent to a seasonally adjusted annual rate of 631,000 units last month, the lowest level since October 2017. May's sales pace was revised down to 666,000 units from the previously reported 689,000 units. - CNBCThe second step is that home prices begin to fall precipitously from their all-time highs.
Manhattan real estate had its worst second quarter since the financial crisis, with prices and sales dropping and inventory rising, according to a new report.
One month ago we discussed why according to the recent data, the "Housing Market Headed For "Broadest Slowdown In Years." Fast forward to today, when we received the latest confirmation that the US housing market appears to have recently hit a downward inflection point: according to the just released July 2018 U.S. Foreclosure Market Report released by ATTOM Data Solutions, foreclosure starts in July increased by 1% from a year ago — the first year-over-year increase following 36 consecutive months of decreases.
Foreclosures rose from a year ago in 96 of the 219 metropolitan statistical areas, or 44% of the markets analyzed in the report; 33 of those areas posted their third straight monthly increase. A total of 30,187 U.S. properties started the foreclosure process for the first time in July, up 1 percent from the previous month and while the increase was less than 1% from a year ago, it marked the first annual increase in exactly 3 years. - Zerohedge
Tube8, an adult entertainment platform, is adopting blockchain and tokenization technologies in order to reward visitors with cryptocurrency for watching videos on their website.
To effect this process, the Pornhub subsidiary is partnering with blockchain platform Vice Industry Token(VIT) for the total tokenization of the website. This is a collaboration that will make it possible for users to get paid for engaging in activities on the Tube8 platform, such as streaming and interacting with videos. The partnership was first reported by TheNextWeb.
The development when launched by the end of 2018, will put the entire Tube8 platform on the blockchain. It will also establish Tube8 and the first adult entertainment site to adopt token-based rewards and payment for website visitors. - CCNVice Coin: The ultimate 'Happy Meal' toy for adult consumers.
The EU previously pledged to resist US sanctions on Tehran by implementing legislation allowing European businesses not to comply with restrictive US measures against the Islamic Republic, introduced after Washington's withdrawal from the 2015 Iran nuclear deal.Perhaps more than at any other time in history, economic warfare has supplanted military warfare as the method of choice for empires seeking to hold onto their power and authority. But in doing so, they have facilitated the creation of their own destruction since the only thing right now propping up America is its ability to force the rest of the world to use their currency.
Iran's Vice President Eshaq Jahangiri has expressed hope that "European countries can meet their commitments" under the Iran nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA).
"But even if they cannot, we are seeking solutions to sell our oil and transfer its revenues," Jahangiri was quoted by Iran's state-run news agency IRNA as saying. – Sputnik News
After 2014, the murder rate began to climb with the rate of CCW holders, however an increase in violent crimes was comparatively muted:
Despite falling short on quarterly earnings expectations, Canadian-based Canopy Growth, the world's highest valued marijuana stock, skyrocketed on Wednesday after the maker of Corona beer invested $5 billion Canadian, which is nearly $4 billion U.S.
The giant injection of cash from Constellation Brands is the largest strategic investment in the cannabis market to date, and comes at a time when alcohol companies are making large ventures into the industry.
"We're going to spend that money to be around the globe," Canopy Growth CEO Bruce Linton told CityNews on Thursday. - NPRIn part it is the lack of foresight, and the corruption of bought and paid for legislators in Washington that is keeping America from rebuilding their economy in new industries such as cannabis. Instead President Trump is trying to 'Make America Great Again' by focusing on old manufacturing industries such as steel and automobiles and forgetting that the largest industry outside of technology is Big Pharma. But to break this paradigm, the government needs to open up the financial sector to cannabis investment, and help direct capital into the economy rather than its continued use in the financialization of Wall Street.
I often read that China may retaliate against US trade sanctions by further decreasing their US Treasury holdings, sending Treasury yields significantly higher, thus blowing out US deficit spending on interest payments. Trouble is, Chinese Treasury holdings peaked in 2014 (on an annualized basis) and have been declining since. The Chinese have not only ceased accumulating US Treasury debt, despite continued record trade surplus' with the US resulting in significant dollar surplus', but have been decreasing their holdings. All this, according to the Treasury International Capital (TIC) system.
But this postulation that the Chinese could wound the US via selling a portion (or all) of its Treasury holdings (as Russia recently did) is submarined by the recent actions of the Federal Reserve. I say this based on the magnitudes greater accumulation and subsequent dumping of specific maturities of US Treasury debt done by the Federal Reserve.
The Federal Reserve accumulated almost $800 billion in 7 to 10 year US Treasury debt (red line, chart below) from 2009 to 2013, and then subsequently dumped $600 billion from early 2014 through the most present August 2018 data. And the impact on the 10 year yield (blue shaded area, chart below)...essentially zero. Yes, while the Fed rolled off and/or sold off 7 to 10 year holdings, they were busy buying short term debt. But this still meant someone had to step up in duration and buy all that longer duration debt the Fed no longer wanted. - Economica
In short, Bernie Madoff would blush at the farce that is now the US Treasury market (further manipulating all downstream interest rate sensitive markets). A little lie or meddling led to more lying and more meddling...and suddenly the free market no longer exists. It should be clear that a buyer without profit motive is intervening in the Treasury market to maintain a bid and sustain continued low rates on US debt...all this because America has matured but those in control still want to synthetically maintain growth rates (hello China) via unrestrained debt issuance.