Don't WAIT!

Friday, March 4, 2016

Backdoc,Thunderhawk & Mountainman Friday AM 3-4-16 Part 1

KTFA:

Thunderhawk:  Since Doc sent me this article, I found it translated into 9 different languages
and 10 foreign news sources and all under the CNBC banner.
Do you think they may be trying to tell you some thing ?????
Now granted we basically covered the Iranian deals night after night here on KTFA.
But I found the last paragraph particularly interesting.
What about you ??????   ThunderHawk

Mountainman:  THIS Could [POTENTIALLY] be "A POLITICAL" (DETOUR) On those Who {HOLD} A "VALUABLE" ASSET......Until [AFTER] ELECTIONS...A PAUSE!!!!!....Hmmm......."HOW" this Affects the REST of the Other ASSETS of VALUE......."TIME" will Tell.....Just An Observation.......IMO Only!!!!!!!!

BACKDOC:  INDEED, THESE SANCTIONS HAVE DONE EXACTLY WHAT THEY WERE INTENDED TO DO, KEEP THE WEALTHIEST PEOPLE IN THE WORLD FROM GETTING WEALTHIER!

THE IMF HAS INTENTIONAL STRATEGIES TO SPREAD WEALTH AROUND TO HELP EQUALIZE COUNTRIES OR TO HELP IN TIMES OF CRISIS.
....
HOW DO THEY DO THIS? THEY DO IT BY DOING CURRENCY SWAPS!

THEY CAN ALSO DO IT BY CONTROLLING WHICH COUNTRY BUYS ANOTHER COUNTRIES BONDS. INCREASED VALUE CAN BE SPREAD AROUND TO THOSE IN NEED. THE FINANCIAL SOVEREIGNTY THAT USED TO BE ENJOYED IS NOW A THING OF THE PAST!

I SUSPECT THAT ONCE A NEW PRESIDENT GETS IN OFFICE THEY WILL NOTE THIS MODERATE CHANGE IN IRANS GOVERNMENT AND WILL SOFTEN THEIR TONE AND WILL EVENTUALLY DROP SANCTIONS THAT ARE KEEPING BUSINESS OPPORTUNITIES FROM THE U.S.!

LIMITING CURRENCY PURCHASES UP UNTIL RECENTLY AND KEEPING BUSINESSES FROM INVESTING THERE IS SIMPLY A MEDIA DISINFORMATION GAME TO HELP IRAN COMPLETE THEIR MONETARY REFORM NO DOUBT!

I SURE HOPE THERE WILL BE SOME MEAT ON THE BONE OF INVESTING FOR AMERICAN COMPANIES LATER AND NOT JUST THE LARGE COMPANIES GE AND BOEING!

VERY SAD WHEN SO MANY AMERICANS COULD BENEFIT FROM A POSITIVE CHANGE IN IRAN. IF THEY ARE FOUND TO BREAK THE DEAL THEN WE HIT THEM HARD BUT UP TILL THEN WE NEED TO MAKE MONEY LIKE EVERYONE ELSE OR THEY SHOULD ALL HAVE SANCTIONS ON! ONE WAY OR THE OTHER!

DOC  DEFINITELY JUST AN OPINION!

Thunderhawk:  Backdoc Alert

Sanctions keeping US from investing in Iran

European and Asian investments are moving fast into Iran, leaving the U.S. in the dust as some sanctions continue to keep American money out despite keen interest, an investor said Thursday.

Broad western sanctions against Iran were lifted in January this year after the government agreed to curb its nuclear program, spurring investment into the country with Airbus announcing a large $25 billion order of 118 airplanes while automaker Peugeot returned to the country with a 400 million euro ($435 million) deal.

Japan and Singapore have also signed bilateral trade deals with Iran recently.

The U.S. however is "nowhere in terms of trade" due to remaining sanctions over Iran's human rights policies and concerns about terrorism, David Grayson, chief executive of New York-based brokerage Auerbach Grayson told CNBC's "The Rundown" on Thursday

"Basically, the Iranians can sell carpets, rugs and caviar to the U.S. but beyond that, the U.S. is being left at the station and the train is pulling out," Grayson said.

Grayson said he has received interest from American clients to invest in the Tehran Stock Exchange but sanctions aside, there is no recognized custodial service to hold securities on behalf of international investors yet.

Iran offers potential to investors despite recent economic wobbles and a far from clement political backdrop in the region. The country has a population of 80 million with a median age of approximately 29 years and a tertiary education enrollmentrate that is higher than many developing economies.

The exchange has a market capitalization of $100 billion and processes $100 million worth of trades daily, according to Grayson, who visited Iran as a tourist last May.

Gains by reformist candidates in last weekend's Iranian elections may pave the way for changes to economic policies that will boost foreign investment and trade with the west, but there will still likely not be action from the world's largest economy for months until the new president takes office after the election in November, said Grayson.

http://ift.tt/24G62He ... -iran.html

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Mountainman:  Can You Blame IRAN.......After ALL the $$$$$.....LOST thru SANCTIONS "They" don't WANT to CUT PRODUCTION....So EUROPE is an IDEAL CONSUMER w/The NEED and MEANS for IRAN'S OIL!!!!!!!!......IMO

BACKDOC:  BAAAA HAAAA LAUGHABLE? HEE HEE

WELL, THAT'S HOW COMMITTED IRAN IS TO CONTROLLING CRUDE SUPPLIES! IT APPEARS THAT THEY WON'T EVEN BEGIN TO TALK FREEZE UNTIL THEY RETURN TO PREVIOUS SANCTION LEVELS! CRAZY!

THE US WILL CONTINUE TO LOSE DUE TO EXTRACTION COSTS. WHENEVER PRICES GET CLOSE TO $40.00/BARREL THE U.S. WILL ENGAGE TO MAKE MONEY.

IT REMAINS TO BE SEEN HOW HIGH PRICES CAN GO WITHOUT ANOTHER MASSIVE CRASH!

THE ANSWER TO THOSE STORIES WILL LIE IN INVENTORIES!  DOC   IMO
 
Thunderhawk:  Backdoc Alert

Iran hopes to raise March oil exports on higher European sales: sources

Iran, OPEC's No. 3 producer, is expected to raise its oil exports in March to around 1.65 million barrels per day from 1.5 million bpd a month earlier on the back of higher crude shipments to Europe, two industry sources told Reuters on Thursday.

State-run National Iranian Oil Co. (NIOC) is expected toship around 250,000-300,000 bpd to Europe this month after it finalised term deals with France's Total and Spanish refiner Cepsa, effective from March 1, said the sources, who are familiar with Iran's exports.

The French oil major has a contract to buy about 200,000 bpd, while Cepsa's deal was for about 35,000 bpd, one source said. Total is expected to lift at least 5 million barrels in March, the source added.Litasco, the trading arm of Russia's Lukoil, Cepsaand Total have become the first buyers in Europe after thelifting of sanctions and lifted trial cargoes in February,trading sources told Reuters.

Hellenic Petroleum, Greece's biggest oil refiner,has said it will receive its first shipment of Iranian crudeoil at the end of March. Tehran is working to regain market share, particularlyin Europe, after the lifting of international sanctions in January. Oil exports rose by 500,000 bpd to 1.5 million bpd in February, a senior NIOC official said on Tuesday.

The sanctions had cut Iranian crude exports from a peak of2.5 million bpd before 2011 to just over 1 million bpd in recentyears.

Tehran has said it would boost output immediately by 500,000bpd and by another 500,000 bpd within a year, ultimatelyreaching pre-sanction production levels of around 4 million bpdseen in 2010-2011.

But even a gradual increase in its exports would come ata time of global oversupply, with producers around the worldpumping hundreds of thousands of barrels every day in excess ofdemand. Oil prices are near 11-year lows at around $37 a barrel.

Saudi Arabia, Qatar, Venezuela and non-OPEC Russia agreedlast month to freeze output at January levels in the firstglobal oil pact in 15 years.

Iranian Oil Minister Bijan Zanganeh said last week thefreeze was "laughable". Iranian sources say the country would beprepared to discuss a production pact once output reaches pre-sanctions levels.

http://ift.tt/24G62Hg ... SKCN0W51JZ

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Mountainman:  Well HELLO....FATCA.......The IRS is (NOT)....Going to ALLOW US Citizens to Keep Offshore Accounts w/Out Their PEERING EYES.....Looking to COLLECT TAXES from Those WHO "Think"....They are safe Off US Shores.......MANY Countries have signed On to this....So They Don't Get Penalized.......There Are Very Few Left Who haven't (SUCCUMBED) to the USA Regarding this!!!!!!!!........Eventually there Will be A "GLOBAL VERSION".....IMO

Thunderhawk:  Backdoc Alert

Singapore Banking Secrecy Makes Ripe Target for IRS

The Internal Revenue Service sought to make UBS Group AG turn over records on an account in Singapore held by a U.S. citizen, setting up a showdown with the city-state over its bank-secrecy laws and potentially opening a new front against offshore tax evasion beyond Switzerland.

The IRS asked a federal judge in Miami to force UBS, the largest Swiss bank, to produce documents on Ching-Ye Hsiaw, who lives in China. The judge on Wednesday told UBS to show up in court on March 31 to explain why it has refused to supply the account records.

“They’re holding UBS hostage in the U.S. by saying you subjected yourself to U.S. jurisdiction, now produce these records outside the U.S.,” said Jeff Neiman, a former federal prosecutor. “It’s setting up a showdown of Singapore secrecy versus the U.S. need to enforce its tax laws.”

UBS spokesman Gregg Rosenberg declined to comment on the case immediately. Hsiaw couldn’t immediately be reached for comment.

The U.S. has focused largely on Switzerland in recent years as it has fought offshore tax evasion. More than 80 Swiss banks, including UBS and Credit Suisse Group AG, have agreed to pay a total of $5 billion or so in penalties and fines.

The question is where the IRS and the Justice Department will turn next as they sift through a trove of data gathered from Swiss banks and from more than 50,000 U.S. taxpayers who disclosed their accounts to avoid prosecution.

Singapore Secrecy

The Hsiaw case provides some clues. IRS agents served a summons on UBS in 2013 for records of his account in Singapore from 2001 to 2011. The bank said it couldn’t produce them because Singapore’s bank secrecy laws prevent disclosure without permission from Hsiaw, which he hasn’t provided, according to a court filing.

“Even if Singapore’s bank secrecy laws, as UBS contends, precludes disclosure of the summoned bank records relating or pertaining to Hsiaw’s Singapore account(s), international comity requires that the records be disclosed,” IRS revenue agent James Oertel said in the filing.
“The interest of the United States in combating tax evasion by U.S. taxpayers outweighs the interest of Singapore in preserving the privacy of its bank customers,” Oertel wrote.

Neiman, the former prosecutor, said that “UBS can be held in contempt if they don’t produce the records. I think it’s the IRS’s way to start getting at Singapore.”

Neiman was one of the prosecutors on a landmark case in 2009, filed in Miami, in which UBS avoided prosecution by paying $780 million, admitting it encouraged tax evasion, and agreeing to turn over secret account data on U.S. citizens.

http://ift.tt/1tXUPTd ... et-for-irs

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Mountainman:  We Shall SEE.......W/the EURO "FALLING" Apart.....and NEW VALUES (ARISING) Out of the ASHES.......TIME will TELL.....How Long the NEW takes to Replace the OLD=FIAT........I mean WHO wants to DRIVE a FIAT Anyway.....LOL.......I personally SEE the $$$$ And Many "LOSING" VALUE in the (TRANSITION) from The OLD to NEW VALUES......W/that being said......This YEAR....I do Believe Will [USHER] In the NEW GLOBAL VALUES/REALITY.......IMO

Thunderhawk:  Backdoc Alert

World's No. 2 Currency Trader Sees Dollar Surge as Misery Wanes

When misery fades, the dollar rallies.
That’s the contention of Deutsche Bank AG, the world’s second-biggest currency trader according to Euromoney magazine, which expects the greenback to resume its surge this year after slumping in February. The misery index, a measure of inflation and unemployment, fell in November to the lowest in almost six decades, underpinning the currency’s outlook. The jobless rate is forecast to hold at an eight-year low Friday as the Federal Reserve weighs the path of U.S. interest rates.

“The misery index is not miserable,” said Alan Ruskin, the bank’s global co-head of foreign-exchange research in New York. "The tighter the labor market is, the more likely that we’re in a cycle where the Fed is going to be supportive of the dollar."

The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, dropped 1.8 percent in February on concern that a global economic slowdown will drag down the world’s biggest economy. The currency’s stumble last month, which was its worst since April 2015, follows a two-year rally on speculation that the Fed would boost borrowing costs while its biggest peers carried out unprecedented stimulus.

Ruskin forecasts the greenback will strengthen to 95 cents against the euro by the end of the year. It’s far too early to be calling a top even after last month’s soft patch, he said.

The dollar was little changed at 113.71 yen as of 8:33 a.m. in Tokyo Friday, after adding 0.2 in New York. The greenback rose 0.1 percent against the euro to $1.0952 after reaching a one-month high earlier this week.

Jobs Watch

The U.S. unemployment rate is forecast to remain at 4.9 percent while payrolls probably climbed by 195,000 in Friday’s employment report, according to the median estimates of analysts surveyed by Bloomberg. Consumer prices rose 1.4 percent in January versus a year earlier, data from the Labor Department showed last month.

The misery index, which tracks inflation and unemployment, was at 6.3 on Thursday after falling to 5 in November, the lowest level since 1956.
While it’s an "imperfect" indicator that often lags, rather than predicts, the dollar’s strength, the index still shows that a strong jobs market can underpin the currency, Ruskin said.

"Sometimes the strength is the simplicity," he said.

http://ift.tt/1tXUPTd ... -to-resume

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Mountainman:  This Has Nothing But(DISASTER) Written "ALL" Over it!!!!!!!!.........DRAGHI Knows it......And NOW You Want to Charge Your DEPOSITERS because of [NEGATIVE INTEREST RATES]...........Oh.....SIGN Me UP PLEASE!!!http://.......NOT/NO/NADA/NEGATIVE.....(WAY)....Out......That Is The "NEON" EURO SIGN Above the (ECB'S HEAD)........OZ says.....It's About CURTAINS/LIGHTS OUT for The EU......IMO

BACKDOC:  UNLESS THE 12 DO A BAILOUT OR FIND A WAY TO ASSET BACK THE EURO THERE WILL BE TOUGH DAYS AHEAD FOR THE EURO IF THE BRITS BREXIT!

SCOTLAND SAID IT WILL FOLLOW! MMMMM

JUNE 23RD WILL BE HISTORICAL ONE WAY OR THE OTHER THAT'S FOR SURE!   DOC   IMO
Thunderhawk:  Backdoc Alert

ECB Studies Stimulus Options That Won't End Up Hurting Banks

One week before a long-awaited stimulus decision, European Central Bank officials are privately deliberating over how to enhance their monetary policy stance without maiming its transmission.

Committees studying how to mitigate the impact on banks have prepared potential measures that range from variations on a tiered deposit rate to techniques for countering the impact of stimulus on excess liquidity, according to people familiar with the discussions. The suggestions could still be rejected by the Executive Board or turned down at the Governing Council’s March 10 meeting. An ECB spokesman declined to comment.

With euro-area inflation once again below zero and concerns mounting over the state of the global economy, ECB President Mario Draghi and his colleagues are considering whether monetary policy needs to give more impetus to the currency bloc’s recovery. The chief concern is that negative interest rates, especially if cut further, might squeeze banks’ profitability to the extent they pull back on lending to companies and households.
Draghi “should worry about the implications for the banking system,” Mark Burgess, chief investment officer for EMEA at Columbia Threadneedle Investments, said in an interview in Frankfurt on Wednesday. “He needs a healthy banking sector.”

One of the most straightforward measures would be to cut the deposit rate from the current minus 0.3 percent, while implementing a two-tier system. Banks would pay the negative rate only on the portion of their funds parked at the ECB that exceeds a certain threshold.

Such a facility, similar to that used at other central banks with negative rates including the Swiss National Bank, would be simple to implement in the euro area, the people said, asking not to be identified as the discussions are private.

An executive at a major euro-area bank, who also asked not to be identified, said he doesn’t know whether lenders could handle a tiered deposit rate immediately. It would largely depend on the design, he said.

While the Frankfurt-based ECB has operated a deposit rate below zero since mid-2014, it so far hasn’t taken any direct steps to offset the potential hit to bank profitability. A reduction in the rate of at least 10 basis points is fully priced in by investors, data compiled by Bloomberg indicate, based on swaps on the euro overnight index average.

ECB Aware

The problem for financial institutions is that they can’t easily pass the cost of holding overnight cash at the central bank onto their customers for fear that they’ll withdraw their savings. Bank stocks have sold off this year, partly on concern that more negative rates are on the way.

That’s something for the ECB to consider as officials head into a self-imposed quiet period that starts Thursday.

“We are well aware of this issue,” Executive Board member Benoit Coeure said on Wednesday. “We are monitoring it on a regular basis and we are studying carefully the schemes used in other jurisdictions to mitigate possible adverse consequences for the bank lending channel.”

Another technically straightforward option for the ECB would be to increase its monthly bond purchases under QE. The central bank currently pledges to spend 60 billion euros ($65 billion) a month on public and private debt through at least March 2017, a total of at least 1.5 trillion euros.

Cost Burden

Yet that program, along with targeted long-term loans to banks known as TLTROs, is generating large amounts of cash that have to be parked somewhere. Excess liquidity in the euro area has risen to more than 700 billion euros from less than 150 billion euros a year ago when quantitative easing started. Under the negative deposit rate, those excess funds become a cost burden for banks.

The ECB is considering various options to make sure banks aren’t penalized for the extra liquidity and slow lending, one of the people said. One route could be to set the threshold for the tiered deposit rate at a multiple of banks’ required reserves -- banks could be paid an interest rate equivalent to the main refinancing rate, currently 0.05 percent, on that amount, the official said.

“One easy way is to decide that all extra cash received from the ECB from TLTROs will not be subject to negative rates, meaning it will be treated as required reserves and not as excess liquidity,” said Frederik Ducrozet, an economist at Banque Pictet & Cie SA in Geneva. “You need to find a way to increase the share of bank reserves which are not subject to negative rates and make sure credit expansion remains on track.”

‘Zero Sum’

Negative rate policies have garnered increasing market criticism in recent weeks, and were singled out by Bank of England Governor Mark Carney in a speech in Shanghai last week. He said they help to spur the “zero sum game” of currency wars.
They also pose a particular risk to banks in weaker euro-area economies, according to Richard Barwell, senior economist at BNP Paribas Investment Partners in London.


“We should stop worrying about the cost of excess reserves for strong banks in the core and start worrying about what happens to weak banks in the periphery with loans that are contractually tied to market rates,” he said. “That’s where the negative rate bites.”
Coeure defended the loose monetary stance, saying banks and the economy would have been worse off without it. The challenges facing the euro area were highlighted in a purchasing managers’ survey published by Markit Economics on Thursday, which showed manufacturing and services companies cut prices in February.

“The euro area is still recovering from a once-in-a-generation economic and financial crisis that has left deep scars,” Coeure said. “Both policy makers and financial institutions need to play their part. They need to ensure that the financial system is fit for purpose and able to finance the recovery -- and they need to do so today, not tomorrow.”


http://ift.tt/1tXUPTd ... hurt-banks

Link to Part 2: 


via Dinar Recaps - Our Blog http://ift.tt/24G6426

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