Don't WAIT!

Friday, February 26, 2016

Bits and Pieces in Dinarland Late Friday Afternoon 2-26-16

WSOMN:

Tank : TC SAID HISTORICALLY IRAQ, THE LAST TIME THEY RV'D THEIR CURRENCY WAS AT 3:40 EST ON A FRIDAY, YOSEFF SAID WE'D BE ABLE TO OPEN OUR GIFT TODAY LAST NIGHT ON THE CALL, THE G20 ENDS TOMORROW, AND THE LAST SITREP I READ JUST SAID BEFORE THE 28TH, TONIGHT IS THE 27TH IN China, so...

Wolfy:   Nothing much left to say--Everything is completed--groups are either already paid or notified.. 800# is all we are waiting for--We have completed our journey and waiting on our trophy(RV)

Blackeyepea  http://ift.tt/1QCohCZ

Soupkettle:  Does that mean we are closer because they are demonstrating in the streets of Iraq?

Fathertime:  Soup ... I feel that it puts the pressure on to RV and follow through on getting their reforms done. so yes
....
TNT:

SassyD:  “Optimism is the most important human trait, because it allows us to evolve our ideas, to improve our situation, and to hope for a better tomorrow.” ~ Seth Godin

SassyD:  Shiite cleric Sadr leads 1 million man anti-gov’t demonstration -- F​ebruary 26, 2016 -- http://ift.tt/1QCohCZ

TnDr:  The protests of about 1M near the green zone today is huge. It is peaceful but it is a bit of a saber rattle by the people. If they do not get reforms tomorrow I will be surprised.

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KTFA:

BACKDOC:  GREAT ARTICLE!  (see article below) 

CHINA HAS PREPARED TO GRADUALLY FADE THE SOFT PEG (AND I USE THAT TERM LOOSELY), TO THE DOLLAR OVER TIME OR WILL IT BE? MMMM

AT LEAST THEY ARE TRYING TO REDUCE THE COMPARISON TO THE DOLLAR AS THEY CAN!

THE GOLDEN TRIANGLE WILL HELP TO FADE THE DOLLAR OVER TIME UNLESS WE SEE A MAJOR EVENT LIKE A SAUDI DEPEG!  DOC  IMO

Walkingstick:  Dollar Dominant in Yuan's Basket-Peg System: China Central Bank Chief

Bloomberg News

February 26, 2016 — 4:23 AM EST

Managing yuan expectations may cut intervention costs: Natixis
Zhou: Emerging-market currencies will gain more importance

The greenback plays the biggest role in a group of currencies against which China’s central bank pegs the yuan, Governor Zhou Xiaochuan confirmed on Friday.

“The U.S. dollar is still the most important currency in the basket," Zhou said at a press conference on the sidelines of the Group of 20 finance chiefs meeting in Shanghai.

He was responding, in a rare availability, to a question on how market participants can better understand currency policy when China asserts that the yuan is pegged against a basket of currencies while at the same time setting a daily reference rate against the dollar.

"The message is a good way to manage expectations" on the exchange rate and foreign-exchange reserves, Alicia Garcia Herrero, chief Asia economist at Natixis SA in Hong Kong, wrote in a note. If the People’s Bank of China can manage market expectations the currency will be stable,
then it "could save foreign-reserve bullets" on onshore and offshore yuan market intervention, which would eventually result in a slower pace of capital outflows, she said.

Zhou told reporters more reference is made now to a given basket of currencies, and that the weight of that reference will continue to increase.

While emerging-market currencies will have more importance in the future, the greenback is dominant for now, he said.

Foreign Reserves

China’s defense of the yuan depleted its foreign reserves, the world’s largest, by $513 billion last year in the first annual drop since 1992. The figure includes a $100 billion decrease in the valuation of the holdings due to price changes and exchange-rate fluctuations, according to a PBOC statement distributed to reporters before the briefing.

The yuan was relatively stable in both onshore and offshore markets Friday. It weakened to a five-year low in January.

http://ift.tt/1tXUPTd ... peg-system
KTFA Cont....

Walkingstick:  Pictures: half a million demonstrators in Tahrir Square now

- See more at: http://ift.tt/1Q1r7V3 ... H0sFh.dpuf

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Walkingstick:  Currency wars coming in leaderless world: Citi's Buiter

Tom DiChristopher | @tdichristopher

4 Hours Ago

The global economy is bound to remain leaderless, as G-20 countries meeting in Shanghai on Friday are unlikely to produce anything more than a rhetorical statement, Citigroup's chief economist Willem Buiter said.

Buiter said Friday the global economy truly needs an agreement on exchange rates that will be defended through intervention, as well as expansion of supportive monetary policy, fiscal stimulus modulated according to countries' needs, and "supply side reforms that sustain animal spirits in the corporate sector."

"You're not going to get any of that in substance. There is no leadership in the global economy. And there is no willingness to forgo the short-run benefits of beggar-thy-neighbor exchange rate depreciation. Currency wars will be the reality of what we'll see over the next few years," he told CNBC's "Squawk on the Street".

Buiter and Citigroup analysts said in a note Wednesday the risk of the global economy falling into a recession is rising as fundamentals remain poor.

"We are currently in a highly precarious environment for global growth and asset markets after two to three years of relative calm," Citigroup said, noting that global growth was "unusually weak" in the fourth quarter at around 2 percent.

Buiter said central banks are nearly out of ammo when it comes to using conventional and unconventional monetary policy as a means of stimulating demand.

"If we have a further slowdown, it will have to be combined more with the fiscal policy, and the world just isn't ready for that, institutionally, politically and any other way," he said.

At the same time, the private and public sectors in most advanced economies have become highly leveraged, he noted.

Citi is not expecting a U.S. recession, provided no surprises from abroad send the dollar sharply higher. But it does anticipate a further incremental slowing in the absence of a supportive Federal Reserve and as corporations ratchet up debt following a period of "unspectacular, mediocre" growth, he said.

Markets have appropriately priced in the risk of recession following last year's "excessive optimism," he said.

"Markets are ahead of the policymakers here for once," he said. "People have now rediscovered that, yes, future earnings growth projections on which the stock valuations were based were unrealistic."

http://ift.tt/1QCoeY3 ... uiter.html


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