KTFA:
BACKDOC: HEE HEE! IT LOOKS LIKE SOMEONE NEEDS A NEW NARRATIVE TO EXPLAIN WHAT IS ABOUT TO HAPPEN IN THESE NEXT FEW DAYS! HEE HEE
WE KNOW THAT SAUDI ARABIA HAS HALTED THEIR CURRENCY FROM BEING TRADED AS OF ABOUT 3 WEEKS AGO! SAUDI ARABIA HAS BEEN SELLING TREASURY BONDS AND SELLING OFF SOVEREIGN WEALTH FUNDS!
THEY HAVE BEEN SLASHING BUDGETS TO THE BONE AND THEY ARE POSSIBLY SELLING OFF A PART OF THE LARGEST OIL COMPANY IN THE WORLD!
ARE THEY BUILDING RESERVES OR BUYING GOLD BEHIND THE SCENES IN PREPARATION OF SOMETHING? WHAT ARE THEY WAITING FOR? MMMMM
....
BACKDOC: HEE HEE! IT LOOKS LIKE SOMEONE NEEDS A NEW NARRATIVE TO EXPLAIN WHAT IS ABOUT TO HAPPEN IN THESE NEXT FEW DAYS! HEE HEE
WE KNOW THAT SAUDI ARABIA HAS HALTED THEIR CURRENCY FROM BEING TRADED AS OF ABOUT 3 WEEKS AGO! SAUDI ARABIA HAS BEEN SELLING TREASURY BONDS AND SELLING OFF SOVEREIGN WEALTH FUNDS!
THEY HAVE BEEN SLASHING BUDGETS TO THE BONE AND THEY ARE POSSIBLY SELLING OFF A PART OF THE LARGEST OIL COMPANY IN THE WORLD!
ARE THEY BUILDING RESERVES OR BUYING GOLD BEHIND THE SCENES IN PREPARATION OF SOMETHING? WHAT ARE THEY WAITING FOR? MMMMM
....
COULD THEY BE READY TO LAUNCH THEIR CURRENCY AT THE SAME TIME IRAN AND IRAQ LAUNCH AS WELL?
MMMM ITS OBVIOUS BY NOW THAT BLACK GOLD PRICES WILL REMAIN LOW FOR SOME TIME TO COME AND THE ONLY HOPE IT HAS AT A REAL RECOVERY IS AN ACTIVE TPP TO RAISE PRICES BASED ON CONTRACTS!
REALIZE THAT AFTER THE LAUNCH ON THE 8TH AND SHOWING UP WITHIN 10 DAYS LATER AS IRAN SAYS MAY BE THE TIME WHEN S.A. MAKES ITS' MOVE TO DE PEG, TIME WILL TELL. REALIZE THEY ARE ALL TRADING PARTNERS AS WITNESSED BY MANY OF IRANS OIL CONTRACTS BOUGHT UP BY S.A. RECENTLY!
I BELIEVE IRAN AND S.A WILL HAVE COMPATIBLE CURRENCY VALUES SINCE THEY ARE TRADING PARTNERS. WITH THE FED IN RECEIVERSHIP AS PER THE WORLD BANK THE DOLLAR IS ON LIFE SUPPORT!
NO ALLOW ME TO THINK FREELY FOR A MOMENT CAN I? GREAT THANKS!
WHAT IF S.A. DE PEGS FROM THE DOLLAR AND SWITCHES TO THE YUAN FOR SETTLEMENTS OF ITS OIL SALES? MMMM REALIZE CHINA IS ITS BIGGEST CUSTOMER.
DO YOU THINK THAT WOULD CAUSE A BLACK SWAN EVENT IN THE MARKETS? OHH YAAA CONCERN OVER CHINAS' BEING ABLE TO STABILIZE ITS' CURRENCY WOULD BE PUT TO REST WITH THAT MOVE!
DON'T FORGET TODAY IN IRAQ WE HAVE ARTICLES STATING IRAQ IS READY TO SELL THE DOLLAR!! HEE HEE NO KIDDING! I WOULD TOO!
OHH DON'T FORGET VIETNAM RESTRUCTURED 80% OF ITS DEBT INTO DOLLARS. NO WONDER THEY CALLED IT A CLEVER MOVE! HEE HEE THE DEBT CRASHES WITH THE DOLLAR! MMMMM
DING DONG DOC,IMO
************
PAPPA J Alert:
BofA: The Oil Crash Is Kicking Off One of the Largest Wealth Transfers in Human History
Economists are still hotly debating whether the oil crash has been a net positive for advanced economies.
Optimists argue that cheap oil is a good thing for consumers and commodity-sensitive businesses, while pessimists point to the hit to energy-related investment and possible spillover into the financial system.
A new note from Francisco Blanch at Bank of America Merrill Lynch, however, puts the oil move into a much bigger perspective, arguing that a sustained price plunge "will push back $3 trillion a year from oil producers to global consumers, setting the stage for one of the largest transfers of wealth in human history."
Blanch and his team already see evidence that the fall in the price of crude is having a positive impact on demand, and say that it could accelerate even further if prices don't pick up.
Says Blanch: "Alternatively in a lower oil price scenario, e.g. if prices were to average just $40 over the next five years which is close to the current forward curve, demand would grow by 1.5 million barrels per day, which is 0.3 above our base case. Finally, at $20 oil demand would grow by an explosive 1.7 per year on average, 0.5 above the base case, on our estimates."
Meanwhile, in emerging markets, where much of the story of late has been about disappointing economic growth, Blanch still sees huge upside potential in terms of automobile penetration and consumption.
Take China for example, where the strategist sees the oil plunge helping to fuel a boom in SUV sales: "Moreover, the low oil price is encouraging Chinese consumers to buy increasingly larger cars. Sales of SUVs, the heaviest passenger vehicles category, are up 60 percent year-on-year in the last three months, while overall passenger vehicle sales are growing robustly at 22 percent."
And it's not just emerging markets where the impact of cheaper gasoline is being seen.
After years of stagnation, vehicle miles traveled in the U.S. clearly ticked higher in 2015.
Combine these trends with the decline in, say, Saudi Arabia's foreign exchange reserves, or the stock price of any oil company, and you can see the dramatic wealth shifts now taking place in the world.
http://ift.tt/1tXUPTd ... an-history
************
Backdoc Alert
The dollar's 70-year dominance is coming to an end
Within a decade, greenback's could be replaced as the world's reserve currency
MMMM ITS OBVIOUS BY NOW THAT BLACK GOLD PRICES WILL REMAIN LOW FOR SOME TIME TO COME AND THE ONLY HOPE IT HAS AT A REAL RECOVERY IS AN ACTIVE TPP TO RAISE PRICES BASED ON CONTRACTS!
REALIZE THAT AFTER THE LAUNCH ON THE 8TH AND SHOWING UP WITHIN 10 DAYS LATER AS IRAN SAYS MAY BE THE TIME WHEN S.A. MAKES ITS' MOVE TO DE PEG, TIME WILL TELL. REALIZE THEY ARE ALL TRADING PARTNERS AS WITNESSED BY MANY OF IRANS OIL CONTRACTS BOUGHT UP BY S.A. RECENTLY!
I BELIEVE IRAN AND S.A WILL HAVE COMPATIBLE CURRENCY VALUES SINCE THEY ARE TRADING PARTNERS. WITH THE FED IN RECEIVERSHIP AS PER THE WORLD BANK THE DOLLAR IS ON LIFE SUPPORT!
NO ALLOW ME TO THINK FREELY FOR A MOMENT CAN I? GREAT THANKS!
WHAT IF S.A. DE PEGS FROM THE DOLLAR AND SWITCHES TO THE YUAN FOR SETTLEMENTS OF ITS OIL SALES? MMMM REALIZE CHINA IS ITS BIGGEST CUSTOMER.
DO YOU THINK THAT WOULD CAUSE A BLACK SWAN EVENT IN THE MARKETS? OHH YAAA CONCERN OVER CHINAS' BEING ABLE TO STABILIZE ITS' CURRENCY WOULD BE PUT TO REST WITH THAT MOVE!
DON'T FORGET TODAY IN IRAQ WE HAVE ARTICLES STATING IRAQ IS READY TO SELL THE DOLLAR!! HEE HEE NO KIDDING! I WOULD TOO!
OHH DON'T FORGET VIETNAM RESTRUCTURED 80% OF ITS DEBT INTO DOLLARS. NO WONDER THEY CALLED IT A CLEVER MOVE! HEE HEE THE DEBT CRASHES WITH THE DOLLAR! MMMMM
DING DONG DOC,IMO
************
PAPPA J Alert:
BofA: The Oil Crash Is Kicking Off One of the Largest Wealth Transfers in Human History
Economists are still hotly debating whether the oil crash has been a net positive for advanced economies.
Optimists argue that cheap oil is a good thing for consumers and commodity-sensitive businesses, while pessimists point to the hit to energy-related investment and possible spillover into the financial system.
A new note from Francisco Blanch at Bank of America Merrill Lynch, however, puts the oil move into a much bigger perspective, arguing that a sustained price plunge "will push back $3 trillion a year from oil producers to global consumers, setting the stage for one of the largest transfers of wealth in human history."
Blanch and his team already see evidence that the fall in the price of crude is having a positive impact on demand, and say that it could accelerate even further if prices don't pick up.
Says Blanch: "Alternatively in a lower oil price scenario, e.g. if prices were to average just $40 over the next five years which is close to the current forward curve, demand would grow by 1.5 million barrels per day, which is 0.3 above our base case. Finally, at $20 oil demand would grow by an explosive 1.7 per year on average, 0.5 above the base case, on our estimates."
Meanwhile, in emerging markets, where much of the story of late has been about disappointing economic growth, Blanch still sees huge upside potential in terms of automobile penetration and consumption.
Take China for example, where the strategist sees the oil plunge helping to fuel a boom in SUV sales: "Moreover, the low oil price is encouraging Chinese consumers to buy increasingly larger cars. Sales of SUVs, the heaviest passenger vehicles category, are up 60 percent year-on-year in the last three months, while overall passenger vehicle sales are growing robustly at 22 percent."
And it's not just emerging markets where the impact of cheaper gasoline is being seen.
After years of stagnation, vehicle miles traveled in the U.S. clearly ticked higher in 2015.
Combine these trends with the decline in, say, Saudi Arabia's foreign exchange reserves, or the stock price of any oil company, and you can see the dramatic wealth shifts now taking place in the world.
http://ift.tt/1tXUPTd ... an-history
************
Backdoc Alert
The dollar's 70-year dominance is coming to an end
Within a decade, greenback's could be replaced as the world's reserve currency
In early July 1944, delegates from 44 countries gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire. A three-week summit took place, at which a new system was agreed to regulate the international monetary and financial order after the Second World War.
The US was already the world’s commercial powerhouse, having eclipsed the British Empire several decades earlier. America was also on course to be among the victors of “Europe’s conflict”, even though its economy was largely unscathed by war. As such, Bretton Woods was US-dominated and produced a settlement largely on US terms.
Seventy years ago this week, that fateful summit ended. Its close marked the moment the dollar’s unquestionable supremacy was secured. Since then, global commerce has been conducted largely in dollars and leading economies have held the greenback as their primary reserve currency.
The same system remains intact today, with the lion’s share of commercial settlements worldwide still clearing the US banking system – even if the parties involved have nothing to do with the States.
The dollar’s hegemony continues to be cemented, meanwhile, by the operations of the International Monetary Fund and World Bank. Founded at Bretton Woods, they’re both Washington based, of course, and controlled by America, despite some Francophone window-dressing.
The advantages this system bestows on the US are enormous. “Reserve currency status” generates huge demand for dollars from governments and companies around the world, as they’re needed for reserves and trade. This has allowed successive American administrations to spend far more, year-in year-out, than is raised in tax and export revenue.
By the early Seventies, US economic dominance was so assured that even after President Nixon reneged on the dollar’s previously unshakeable convertibility into gold, amounting to a massive default, dollar demand kept growing.
So America doesn’t worry about balance of payments crises, as it can pay for imports in dollars the Federal Reserve can just print. And Washington keeps spending willy-nilly, as the world buys ever more Treasuries on the strength of regulatory imperative and the vast liquidity and size of the market for US sovereign debt.
It is this “exorbitant privilege” – as French statesman Valéry Giscard d’Estaing once sourly observed – that has been the bedrock of America’s post-war hegemony. It is the status of the dollar, above all, that’s allowed Washington to get its way, putting the financial squeeze on recalcitrant countries via the IMF while funding foreign wars. To understand politics and power it pays to follow the money. And for the past 70 years, the dollar has ruled the roost.
This won’t change anytime soon. Something just took place, though, which illustrates that dollar reserve currency status won’t last forever and could be seriously diluted. Last week, seven decades on from Bretton Woods, the governments of Brazil, Russia, India and China led a conference in the Brazilian city of Fortaleza to mark the establishment of a new development bank that, whatever diplomatic niceties are put on it, is intent on competing with the IMF and World Bank.
It’s long been obvious the BRICs are coming. The total annual output of these four economies has spiralled in recent years, to an astonishing $29.6 trillion (£17.3 trillion) last year on a PPP-basis adjusted for living costs. That’s within spitting distance of the $34.2 trillion generated by the US and European Union combined.
America’s GDP, incidentally, was $16.8 trillion on World Bank numbers, and China’s was $16.2 trillion – within a whisker of knocking the US off its perch. The balance of global economic power is on a knife-edge. Tomorrow is almost today.
Consider also that the BRICs collectively hold sway over 50pc of global currency reserves, rising to almost three-quarters if you take the emerging markets as a whole. The G7 nations between them control only 20pc – and less than 8pc if you exclude Japan.
Based on such balance sheets, we’re now seeing institutional change. The new BRICs Development Bank, modelled on the IMF, will have a $100bn currency reserve available to lend around the world, giving distressed debtor nations an alternative to the “Washington consensus”.
For a long time, the BRICs have been paying in to the IMF, yet been denied additional influence over what happens to the money. Belgium has more votes than Brazil, Canada more than China.
The institutions governing the global economy have failed to keep pace with reality. Modest reforms giving the large emerging markets more power, agreed with much fanfare in 2007 and again in 2010, have been stalled by Washington lawmakers. The BRICs have now called time, setting up their own, rival institution based in Shanghai.
The key to the dollar’s future is petrocurrency status – whether it’s used for trading oil and other leading commodities. Here, too, change is afoot. China’s voracious energy appetite and America’s increased focus on domestic production mean the days of dollar-priced energy look numbered.
Beijing has struck numerous agreements with Brazil and India that bypass the dollar. China and Russia have also set up rouble-yuan swaps pushing America’s currency out of the picture. But if Beijing and Moscow – the word’s largest energy importer and producer respectively – drop dollar energy pricing, America’s reserve currency status could unravel.
That would undermine the US Treasury market and seriously complicate Washington’s ability to finance its vast and still fast-growing $17.5 trillion of dollar-denominated debt.
In May, Beijing and Moscow signed a huge multi-decade gas supply contract, to sit alongside a similar oil deal agreed in 2009. No one knows what share of this energy trade will be on a yuan-rouble basis – and the two governments aren’t saying. This question, seemingly inane, is among the most important diplomatic issues of our time.
At the moment, although Russia’s export partners do sometimes settle in roubles, most Sino-Russian trade is still in dollars. But the combination of this new gas deal, and western sanctions on Russia – has seen Moscow and Beijing step up bilateral efforts to facilitate large-scale non-dollar settlement.
With western anti-Russia sanctions likely to be tightened again after the tragic shooting of a Malaysian passenger plane over Ukrainian airspace, Beijing’s response will be closely scrutinised. I, for one, expect the Chinese to say little until it’s clearly established who grounded the plane and why.
Although the dollar’s reserve status won’t end overnight, the global payments system is now moving inexorably towards that outcome. The US currency accounted for just 33pc of all foreign exchange holdings in 2013, on IMF numbers, down from 55pc in 2001.
Within a decade or so, a “reserve currency basket” may emerge, with central banks storing wealth in a mix of dollars, yuan, rupee, reals and roubles, as well as precious metals. Perhaps some kind of synthetic bundle of the world’s leading currencies will be developed, with emphasis placed, after years of western money-printing, on assets backed by commodities and other tangibles.
I also believe central banks may include cyber-currencies (such as bitcoin) in their reserves. If you think that’s mad, consider that mankind has long sought scarcity – be it with shells, stones or metallic elements – to store wealth. Now the money-printing taboo has been broken by yet another generation, it makes sense to use complex computer algorithms to ensure that only a certain amount of a particular currency unit can ever exist.
The dollar’s status is a big question. Judging the outcome is more akin to star-gazing than scientific economics. But the establishment of this BRIC Development bank, timed to coincide with the anniversary of Bretton Woods, is an audacious and significant move. The world’s emerging giants now have thumbscrews on the West.
http://ift.tt/13bxHVt ... n-end.html
The US was already the world’s commercial powerhouse, having eclipsed the British Empire several decades earlier. America was also on course to be among the victors of “Europe’s conflict”, even though its economy was largely unscathed by war. As such, Bretton Woods was US-dominated and produced a settlement largely on US terms.
Seventy years ago this week, that fateful summit ended. Its close marked the moment the dollar’s unquestionable supremacy was secured. Since then, global commerce has been conducted largely in dollars and leading economies have held the greenback as their primary reserve currency.
The same system remains intact today, with the lion’s share of commercial settlements worldwide still clearing the US banking system – even if the parties involved have nothing to do with the States.
The dollar’s hegemony continues to be cemented, meanwhile, by the operations of the International Monetary Fund and World Bank. Founded at Bretton Woods, they’re both Washington based, of course, and controlled by America, despite some Francophone window-dressing.
The advantages this system bestows on the US are enormous. “Reserve currency status” generates huge demand for dollars from governments and companies around the world, as they’re needed for reserves and trade. This has allowed successive American administrations to spend far more, year-in year-out, than is raised in tax and export revenue.
By the early Seventies, US economic dominance was so assured that even after President Nixon reneged on the dollar’s previously unshakeable convertibility into gold, amounting to a massive default, dollar demand kept growing.
So America doesn’t worry about balance of payments crises, as it can pay for imports in dollars the Federal Reserve can just print. And Washington keeps spending willy-nilly, as the world buys ever more Treasuries on the strength of regulatory imperative and the vast liquidity and size of the market for US sovereign debt.
It is this “exorbitant privilege” – as French statesman Valéry Giscard d’Estaing once sourly observed – that has been the bedrock of America’s post-war hegemony. It is the status of the dollar, above all, that’s allowed Washington to get its way, putting the financial squeeze on recalcitrant countries via the IMF while funding foreign wars. To understand politics and power it pays to follow the money. And for the past 70 years, the dollar has ruled the roost.
This won’t change anytime soon. Something just took place, though, which illustrates that dollar reserve currency status won’t last forever and could be seriously diluted. Last week, seven decades on from Bretton Woods, the governments of Brazil, Russia, India and China led a conference in the Brazilian city of Fortaleza to mark the establishment of a new development bank that, whatever diplomatic niceties are put on it, is intent on competing with the IMF and World Bank.
It’s long been obvious the BRICs are coming. The total annual output of these four economies has spiralled in recent years, to an astonishing $29.6 trillion (£17.3 trillion) last year on a PPP-basis adjusted for living costs. That’s within spitting distance of the $34.2 trillion generated by the US and European Union combined.
America’s GDP, incidentally, was $16.8 trillion on World Bank numbers, and China’s was $16.2 trillion – within a whisker of knocking the US off its perch. The balance of global economic power is on a knife-edge. Tomorrow is almost today.
Consider also that the BRICs collectively hold sway over 50pc of global currency reserves, rising to almost three-quarters if you take the emerging markets as a whole. The G7 nations between them control only 20pc – and less than 8pc if you exclude Japan.
Based on such balance sheets, we’re now seeing institutional change. The new BRICs Development Bank, modelled on the IMF, will have a $100bn currency reserve available to lend around the world, giving distressed debtor nations an alternative to the “Washington consensus”.
For a long time, the BRICs have been paying in to the IMF, yet been denied additional influence over what happens to the money. Belgium has more votes than Brazil, Canada more than China.
The institutions governing the global economy have failed to keep pace with reality. Modest reforms giving the large emerging markets more power, agreed with much fanfare in 2007 and again in 2010, have been stalled by Washington lawmakers. The BRICs have now called time, setting up their own, rival institution based in Shanghai.
The key to the dollar’s future is petrocurrency status – whether it’s used for trading oil and other leading commodities. Here, too, change is afoot. China’s voracious energy appetite and America’s increased focus on domestic production mean the days of dollar-priced energy look numbered.
Beijing has struck numerous agreements with Brazil and India that bypass the dollar. China and Russia have also set up rouble-yuan swaps pushing America’s currency out of the picture. But if Beijing and Moscow – the word’s largest energy importer and producer respectively – drop dollar energy pricing, America’s reserve currency status could unravel.
That would undermine the US Treasury market and seriously complicate Washington’s ability to finance its vast and still fast-growing $17.5 trillion of dollar-denominated debt.
In May, Beijing and Moscow signed a huge multi-decade gas supply contract, to sit alongside a similar oil deal agreed in 2009. No one knows what share of this energy trade will be on a yuan-rouble basis – and the two governments aren’t saying. This question, seemingly inane, is among the most important diplomatic issues of our time.
At the moment, although Russia’s export partners do sometimes settle in roubles, most Sino-Russian trade is still in dollars. But the combination of this new gas deal, and western sanctions on Russia – has seen Moscow and Beijing step up bilateral efforts to facilitate large-scale non-dollar settlement.
With western anti-Russia sanctions likely to be tightened again after the tragic shooting of a Malaysian passenger plane over Ukrainian airspace, Beijing’s response will be closely scrutinised. I, for one, expect the Chinese to say little until it’s clearly established who grounded the plane and why.
Although the dollar’s reserve status won’t end overnight, the global payments system is now moving inexorably towards that outcome. The US currency accounted for just 33pc of all foreign exchange holdings in 2013, on IMF numbers, down from 55pc in 2001.
Within a decade or so, a “reserve currency basket” may emerge, with central banks storing wealth in a mix of dollars, yuan, rupee, reals and roubles, as well as precious metals. Perhaps some kind of synthetic bundle of the world’s leading currencies will be developed, with emphasis placed, after years of western money-printing, on assets backed by commodities and other tangibles.
I also believe central banks may include cyber-currencies (such as bitcoin) in their reserves. If you think that’s mad, consider that mankind has long sought scarcity – be it with shells, stones or metallic elements – to store wealth. Now the money-printing taboo has been broken by yet another generation, it makes sense to use complex computer algorithms to ensure that only a certain amount of a particular currency unit can ever exist.
The dollar’s status is a big question. Judging the outcome is more akin to star-gazing than scientific economics. But the establishment of this BRIC Development bank, timed to coincide with the anniversary of Bretton Woods, is an audacious and significant move. The world’s emerging giants now have thumbscrews on the West.
http://ift.tt/13bxHVt ... n-end.html
Thunderhawk: The U S Federal Reserve Bank How it Works, and What it Does Money, Dollars, & Currency
https://www.youtube.com/watch?feature=player_embedded&v=GqbdU__aONw#t=0
https://www.youtube.com/watch?feature=player_embedded&v=GqbdU__aONw#t=0
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