KTFA:
Mountainman: For those of You {PRESERVING HISTORY}.....This is Another ONE to (FRAME)..(see article below) .....As I said in the PAST this will Be A CONTROLLED CASCADE of CHAOS.....
On a Personal Level I Would HIGHLIGHT the Entire Article.....for it is FULL of the OLD and NEW REALITY Coming......Also ****NOTE**** the Last Paragraph.....Previously I Stated that Just as You are going to Get Your PRIVATE AFFAIRS w/Your FINANCES In ORDER based On WHAT is of Importance/Priority.....So Too.....12/1 are doing the SAME......thus IRAQ would NEVER have Gone Before the GLOBAL STAGE of ECONOMIC AFFAIRS were in POSITION/ORDER......
The 12/1....Would {NOT} Allow that to Happen for A PLETHORA of Common Sense REASONS......IRAQ,IRAN,VIETNAM,CHINA,ASIA,EUROPE,SAUDI ARABIA,SOUTH AMERICA,and of Course the USA DOLLAR/PETRO DOLLAR.....and A Host Of Other COUNTRIES Involved........
....
Mountainman: For those of You {PRESERVING HISTORY}.....This is Another ONE to (FRAME)..(see article below) .....As I said in the PAST this will Be A CONTROLLED CASCADE of CHAOS.....
On a Personal Level I Would HIGHLIGHT the Entire Article.....for it is FULL of the OLD and NEW REALITY Coming......Also ****NOTE**** the Last Paragraph.....Previously I Stated that Just as You are going to Get Your PRIVATE AFFAIRS w/Your FINANCES In ORDER based On WHAT is of Importance/Priority.....So Too.....12/1 are doing the SAME......thus IRAQ would NEVER have Gone Before the GLOBAL STAGE of ECONOMIC AFFAIRS were in POSITION/ORDER......
The 12/1....Would {NOT} Allow that to Happen for A PLETHORA of Common Sense REASONS......IRAQ,IRAN,VIETNAM,CHINA,ASIA,EUROPE,SAUDI ARABIA,SOUTH AMERICA,and of Course the USA DOLLAR/PETRO DOLLAR.....and A Host Of Other COUNTRIES Involved........
....
NOW We See the "FINAL STEPS" and for Other COUNTRIES=A SPRINT for the MILESTONES Needed to be Met Before the Next Cascade of MONETARY Falls will HAPPEN......and It Seems Logical that the EURO, then the SAUDIS and the PETRO DOLLAR/USA DOLLAR will be the FINAL BLOW......and Then {ALL} Hell will Break Loose GLOBALLY......
THE ??? of HOW Much WATER/VOLUMES/ VELOCITY Will (THEY) Allow to Transpire at A Given POINT......???......
That I Believe We Will See Measured out According to (THEIR) BLUEPRINT Specs being Followed......REMEMBER (THEY) are SEASONED VETERANS and This GLOBAL {PLAN} has Been In the PLAY BOOKS for DECADES......So {ALL} is Unfolding in a {CONTROLLED} Manner,So to MINIMIZE the Instability Factors.....
For You and I......WHEN this USA DOLLAR TSUNAMI Hits......MANY In the MARKETS, ADVISORS, and EVERYDAY JOE'S=those {NOT} In this INVESTMENT will PANIC.....and IMO.....JADE HELM Last YEAR was More About This {TRANSITION} w/the US DEBT and The FUTURE USA VALUE CHANGE.......and the CHANGE to NEW VALUES GLOBALLY, which Will be PROBLEMATIC for those Who Are Ignorant to WHAT/WHY these REALITIES are Happening......
And thus FOOD, WATER, and Other EVERYDAY STAPLES will Be MORE COSTLY because of DEFLATION/INFLATION and Perhaps Even Not as READILY AVAILABLE......and That is THE BIGGER PICTURE of this NEW GLOBAL REALITY.....
How Long or Short Will this {TRANSITION} for The USA and Other COUNTRIES take is Yet to Be SEEN......So Be PREPARED I say.....No HARM No FOUL.....
I am {NOT} an ALARMIST.....Simply Just "A REALIST"........{ALL} this is IMO ONLY........
Blessings,Mountainman (8)=New Beginnings........for Those WITH and Those WITHOUT........KNOWLEDGE/UNDERSTANDING......of COMING ATTRACTIONS........
Thunderhawk: Stuck with dangerous dollar dominance
THE ??? of HOW Much WATER/VOLUMES/ VELOCITY Will (THEY) Allow to Transpire at A Given POINT......???......
That I Believe We Will See Measured out According to (THEIR) BLUEPRINT Specs being Followed......REMEMBER (THEY) are SEASONED VETERANS and This GLOBAL {PLAN} has Been In the PLAY BOOKS for DECADES......So {ALL} is Unfolding in a {CONTROLLED} Manner,So to MINIMIZE the Instability Factors.....
For You and I......WHEN this USA DOLLAR TSUNAMI Hits......MANY In the MARKETS, ADVISORS, and EVERYDAY JOE'S=those {NOT} In this INVESTMENT will PANIC.....and IMO.....JADE HELM Last YEAR was More About This {TRANSITION} w/the US DEBT and The FUTURE USA VALUE CHANGE.......and the CHANGE to NEW VALUES GLOBALLY, which Will be PROBLEMATIC for those Who Are Ignorant to WHAT/WHY these REALITIES are Happening......
And thus FOOD, WATER, and Other EVERYDAY STAPLES will Be MORE COSTLY because of DEFLATION/INFLATION and Perhaps Even Not as READILY AVAILABLE......and That is THE BIGGER PICTURE of this NEW GLOBAL REALITY.....
How Long or Short Will this {TRANSITION} for The USA and Other COUNTRIES take is Yet to Be SEEN......So Be PREPARED I say.....No HARM No FOUL.....
I am {NOT} an ALARMIST.....Simply Just "A REALIST"........{ALL} this is IMO ONLY........
Blessings,Mountainman (8)=New Beginnings........for Those WITH and Those WITHOUT........KNOWLEDGE/UNDERSTANDING......of COMING ATTRACTIONS........
Thunderhawk: Stuck with dangerous dollar dominance
The world is getting an object lesson on the problems of having one dominant global currency and even the supposed prime beneficiary, the United States, can see the downside.
Alarming bouts of volatility in world financial markets over the past 12 months have been rooted in a fear of what happens when a world with its highest-ever peacetime debt pile faces even a hint of higher interest rates.
Despite a constant narrative about U.S. households and banks paying down debts ever since the global credit crash eight years ago, any 'deleveraging' that did happen was more than offset by higher government, corporate and personal debt around the globe in Europe, China and across emerging markets.
In fact, aggregate world debt is now far higher than it was before the 2007-08 crash.
"The saga of debt is far from over," says a report from Morgan Stanley. It goes on to explain why Morgan Stanley expects demographic-led shifts in savings and investment to soon push interest rates higher and transform that debt mountain into additional deadweight on world growth over next five years.
But the role of the U.S. dollar as the world's main reserve currency denominating large chunks of that debt pile is showing up as complicating factor that's added to risk of instability.
The first U.S. interest rate increase in almost a decade in December - just a quarter of a percentage point - was enough to trigger a convulsion in world markets that led to the worst start to a year for global stocks since World War Two.
Underlining 'cause and effect', the subsequent recovery only came about once the Federal Reserve hastily made clear it was pressing the pause button precisely because of seismic events in world finance.
Few doubt a growing U.S. economy that's near full employment can absorb some normalization of interest rates from near zero, and a higher dollar goes hand in hand with that.
But the rest of the world clearly can't.
The Bank for International Settlements estimates that while U.S. dollar dominance means it accounts for almost 90 percent of all foreign exchange transactions and some 60 percent of hard currency reserves. But crucially it also accounts for about 60 percent of all debts and assets outside the United States.
And if the rest of the world goes into shock because of the higher cost of servicing and paying back those dollar debts, the boomerang effect on U.S. exporters, commodity firms and the wider economy just ends up tying the Fed's hands in ways made crystal clear this year already.
AMBIVALENCE
No surprise, then, the U.S. central bank has no deep love for the dollar's prime reserve currency status - even though it's been described by Europeans and others over the years as an "exorbitant privilege" that ensures the world lends to the U.S. Treasury in its own currency at low interest rates regardless of dollar strength.
Speaking at an event in Zurich on Tuesday on the dollar's global status, New York Fed chief Bill Dudley said Americans should not be perturbed if other currencies such as the euro or China's yuan eventually eat into the dollar's share of reserves.
"If other countries' currencies emerge to gain stature as reserve currencies, it is not obvious to me that the United States loses," he said, as long as it "is being driven by their progress, rather than by the U.S. doing a poorer job."
While that's far from wishing away dollar hegemony, it speaks to the greater ambivalence among central bankers toward reserve status than their national treasury chiefs - given how widespread use of the currency can compromise domestic policy.
It's that tension that risks sowing instability everywhere.
If the Fed can't adjust monetary policy because of fears of transmitting a self-defeating shockwave around the world via the dollar, then there's understandable concern that artificially low Fed policy just stores up even more debt and international accounting imbalances and undermines the very currency that's supposed to play anchor.
At the same event in Zurich, Claudio Borio, head of the monetary and economic Department of the BIS, said the dollar's role could potentially exacerbate instability by allowing the United States to run larger and more persistent fiscal and current account deficits - and to run looser monetary policy for longer.
What's more, a resulting Fed easing bias spreads to developed and emerging economies as governments resist a weaker dollar for competitiveness or financial stability reasons, Borio added.
"Easing begets easing," he said.
For Morgan Stanley, this is just leads to ever-higher debt, and there are no painless ways out of a problem that will start to hurt significantly over the coming years - only a series of "less painful" options including the option of consolidating debts and making them permanent or perpetual.
In the meantime, the U.S. bank said, the dollar itself will most likely push higher again, if only because the U.S. economy is probably the only one that can absorb a rising exchange rate in this environment.
For Borio, a more 'pluralistic' system with many world currencies sharing the reserve role doesn't by itself solve any problem, either. There would then be no credible single anchor.
Hard-headed cooperation and joint decision making may be the only answer.
"This means not just putting one's house in order, but also putting our global village in order."
http://ift.tt/24MROqK
BACKDOC: LIKE I'VE BEEN SAYING THE FISCAL DEFICIT ISSUE IS GOING TO PASS AWAY WITH THE DOLLAR!
IN THE NEW REALITY REVENUE WILL HAVE TO MEET EXPENSES. THE DAYS OF RUNNING FISCAL DEFICITS ARE A THING OF THE PAST! DOC IMO
Alarming bouts of volatility in world financial markets over the past 12 months have been rooted in a fear of what happens when a world with its highest-ever peacetime debt pile faces even a hint of higher interest rates.
Despite a constant narrative about U.S. households and banks paying down debts ever since the global credit crash eight years ago, any 'deleveraging' that did happen was more than offset by higher government, corporate and personal debt around the globe in Europe, China and across emerging markets.
In fact, aggregate world debt is now far higher than it was before the 2007-08 crash.
"The saga of debt is far from over," says a report from Morgan Stanley. It goes on to explain why Morgan Stanley expects demographic-led shifts in savings and investment to soon push interest rates higher and transform that debt mountain into additional deadweight on world growth over next five years.
But the role of the U.S. dollar as the world's main reserve currency denominating large chunks of that debt pile is showing up as complicating factor that's added to risk of instability.
The first U.S. interest rate increase in almost a decade in December - just a quarter of a percentage point - was enough to trigger a convulsion in world markets that led to the worst start to a year for global stocks since World War Two.
Underlining 'cause and effect', the subsequent recovery only came about once the Federal Reserve hastily made clear it was pressing the pause button precisely because of seismic events in world finance.
Few doubt a growing U.S. economy that's near full employment can absorb some normalization of interest rates from near zero, and a higher dollar goes hand in hand with that.
But the rest of the world clearly can't.
The Bank for International Settlements estimates that while U.S. dollar dominance means it accounts for almost 90 percent of all foreign exchange transactions and some 60 percent of hard currency reserves. But crucially it also accounts for about 60 percent of all debts and assets outside the United States.
And if the rest of the world goes into shock because of the higher cost of servicing and paying back those dollar debts, the boomerang effect on U.S. exporters, commodity firms and the wider economy just ends up tying the Fed's hands in ways made crystal clear this year already.
AMBIVALENCE
No surprise, then, the U.S. central bank has no deep love for the dollar's prime reserve currency status - even though it's been described by Europeans and others over the years as an "exorbitant privilege" that ensures the world lends to the U.S. Treasury in its own currency at low interest rates regardless of dollar strength.
Speaking at an event in Zurich on Tuesday on the dollar's global status, New York Fed chief Bill Dudley said Americans should not be perturbed if other currencies such as the euro or China's yuan eventually eat into the dollar's share of reserves.
"If other countries' currencies emerge to gain stature as reserve currencies, it is not obvious to me that the United States loses," he said, as long as it "is being driven by their progress, rather than by the U.S. doing a poorer job."
While that's far from wishing away dollar hegemony, it speaks to the greater ambivalence among central bankers toward reserve status than their national treasury chiefs - given how widespread use of the currency can compromise domestic policy.
It's that tension that risks sowing instability everywhere.
If the Fed can't adjust monetary policy because of fears of transmitting a self-defeating shockwave around the world via the dollar, then there's understandable concern that artificially low Fed policy just stores up even more debt and international accounting imbalances and undermines the very currency that's supposed to play anchor.
At the same event in Zurich, Claudio Borio, head of the monetary and economic Department of the BIS, said the dollar's role could potentially exacerbate instability by allowing the United States to run larger and more persistent fiscal and current account deficits - and to run looser monetary policy for longer.
What's more, a resulting Fed easing bias spreads to developed and emerging economies as governments resist a weaker dollar for competitiveness or financial stability reasons, Borio added.
"Easing begets easing," he said.
For Morgan Stanley, this is just leads to ever-higher debt, and there are no painless ways out of a problem that will start to hurt significantly over the coming years - only a series of "less painful" options including the option of consolidating debts and making them permanent or perpetual.
In the meantime, the U.S. bank said, the dollar itself will most likely push higher again, if only because the U.S. economy is probably the only one that can absorb a rising exchange rate in this environment.
For Borio, a more 'pluralistic' system with many world currencies sharing the reserve role doesn't by itself solve any problem, either. There would then be no credible single anchor.
Hard-headed cooperation and joint decision making may be the only answer.
"This means not just putting one's house in order, but also putting our global village in order."
http://ift.tt/24MROqK
BACKDOC: LIKE I'VE BEEN SAYING THE FISCAL DEFICIT ISSUE IS GOING TO PASS AWAY WITH THE DOLLAR!
IN THE NEW REALITY REVENUE WILL HAVE TO MEET EXPENSES. THE DAYS OF RUNNING FISCAL DEFICITS ARE A THING OF THE PAST! DOC IMO
Mountainman: I THINK the IMF doesn't WANT ZIMBABWE {Left Behind}.....Sounds Like A MOVIE.......
Any Hooooo.......WHAT Better WAY than to Use BONDS and other CURRENCIES in the INTERIM TIME to get their Countries ECONOMY /CURRENCY BACK on TRACK......and Then Perhaps RE-LAUNCH Their CURRENCY w/ the Steps the IMF did w/{ALL} Other Countries and their FUTURE New VALUES.....and as DOC has said In the NEW REALITY Countries "CAN'T" Print CURRENCY at Will......
This is Merely Conjecture on My Part as to {IF} the IMF is Doing this to Keep {ALL} Countries on the NEW REALITY Game Board.....IMO
Blessings,Mountainman (8)=New Beginnings.......for ZIMBABWE......
Walkingstick: Zimbabwe can’t keep printing more money
10 May 2016 at 13:07pm By: Peter Fabricius
The country’s deficit is growing and it may finally need to join the rand area, writes Peter Fabricius.
Johannesburg - We thought we had seen the last of Zimbabwe’s fantastic Monopoly money in 2008 when the country’s reserve bank was printing notes of up to Z$10 trillion face value each.
That was to try to keep the presses up to speed with plummeting devaluation and galloping inflation that was running into billions of percent.
That was the last gasp of the Zimbabwe dollar before it collapsed completely and the country converted to US dollars, mainly, as well as the South African rand and a few other currencies thrown in for good measure.
That change - plus the advent of more sensible economic policies brought in by the opposition Movement for Democratic Change (MDC) when it became part of the government of national unity which took office in 2009 - helped to stabilise the economy after a fashion.
But since President Robert Mugabe’s Zanu-PF returned to sole power after the 2013 elections, Zimbabwe’s economy has been rapidly going downhill again.
With virtually nothing to export and rising imports, the country has run up a trade deficit of about $3 billion (R44.5bn) and has almost run out of US dollars to pay for it. Meanwhile, Zimbabweans have shunned the rand, not only because it’s been falling against the US dollar but because Zimbabweans so badly resent their more successful southern neighbour.
Last year the reserve bank issued “bond coins” in US cent denominations so shops could stop giving change in lollipops and the like.
Then last week reserve bank governor John Mangudya announced his bank would issue special “bond notes” at par with the US dollar, to try to ease the cash crisis. He insisted that this was not new currency, ie that he was not re-introducing the Zim dollar via the back door.
But few economists or other commentators seem to believe him. They suspect this is just a ploy to allow the reserve bank once again simply to print as much money as it needs to pay the country’s bills.
Tapiwa Mashakada, the MDC’s spokesman for finance, said it was “crystal clear that the government is warming the printing presses. History repeats itself.”
Bank customers are equally sceptical, rushing to withdraw their real US dollars to hide them under the mattress. The banks have anticipated this by reducing US dollar withdrawals to a tenth of what they allowed in January.
Some are trying to defend Mangudya, insisting that he will refuse to obey Mugabe’s orders to print limitless bond notes.
They point out that he has promised to print only $200m worth of the new bond notes, and that all of these are backed by the Cairo-based African Import Export Bank.
But surely $200m will not be enough to pay for imports?
Unless the government introduces drastic import controls, which it has so far shown itself unwilling to so.
Instead, Zanu-PF has been consistent and totally reckless in spending money it does not have, and blithely destroying the export resources it does have; starting with the huge extra-budgetary pension payouts to war veterans and the costly military intervention in the Democratic Republic of Congo in 1998, through to the seizure of almost all the land from productive white farmers starting in 2000.
And so what will Mangudya do when the $200m runs out, as it surely must? It will be hard to resist the pressure to keep the printing presses running.
Or that may be the moment when Zanu-PF finally has to swallow its pride and do what it should have done from day one - join the rand monetary area.
Mangudya already hinted at that possibility when he said last week that from May 5, 40 percent of all new US dollar receipts will be converted to rand.
If Mugabe doesn’t do this, he might just precipitate the death throes of the Zanu-PF regime as unpaid securocrats, until now kept sweet by the dregs in the coffers, finally turn on him.
http://ift.tt/1OiRrMU
Any Hooooo.......WHAT Better WAY than to Use BONDS and other CURRENCIES in the INTERIM TIME to get their Countries ECONOMY /CURRENCY BACK on TRACK......and Then Perhaps RE-LAUNCH Their CURRENCY w/ the Steps the IMF did w/{ALL} Other Countries and their FUTURE New VALUES.....and as DOC has said In the NEW REALITY Countries "CAN'T" Print CURRENCY at Will......
This is Merely Conjecture on My Part as to {IF} the IMF is Doing this to Keep {ALL} Countries on the NEW REALITY Game Board.....IMO
Blessings,Mountainman (8)=New Beginnings.......for ZIMBABWE......
Walkingstick: Zimbabwe can’t keep printing more money
10 May 2016 at 13:07pm By: Peter Fabricius
The country’s deficit is growing and it may finally need to join the rand area, writes Peter Fabricius.
Johannesburg - We thought we had seen the last of Zimbabwe’s fantastic Monopoly money in 2008 when the country’s reserve bank was printing notes of up to Z$10 trillion face value each.
That was to try to keep the presses up to speed with plummeting devaluation and galloping inflation that was running into billions of percent.
That was the last gasp of the Zimbabwe dollar before it collapsed completely and the country converted to US dollars, mainly, as well as the South African rand and a few other currencies thrown in for good measure.
That change - plus the advent of more sensible economic policies brought in by the opposition Movement for Democratic Change (MDC) when it became part of the government of national unity which took office in 2009 - helped to stabilise the economy after a fashion.
But since President Robert Mugabe’s Zanu-PF returned to sole power after the 2013 elections, Zimbabwe’s economy has been rapidly going downhill again.
With virtually nothing to export and rising imports, the country has run up a trade deficit of about $3 billion (R44.5bn) and has almost run out of US dollars to pay for it. Meanwhile, Zimbabweans have shunned the rand, not only because it’s been falling against the US dollar but because Zimbabweans so badly resent their more successful southern neighbour.
Last year the reserve bank issued “bond coins” in US cent denominations so shops could stop giving change in lollipops and the like.
Then last week reserve bank governor John Mangudya announced his bank would issue special “bond notes” at par with the US dollar, to try to ease the cash crisis. He insisted that this was not new currency, ie that he was not re-introducing the Zim dollar via the back door.
But few economists or other commentators seem to believe him. They suspect this is just a ploy to allow the reserve bank once again simply to print as much money as it needs to pay the country’s bills.
Tapiwa Mashakada, the MDC’s spokesman for finance, said it was “crystal clear that the government is warming the printing presses. History repeats itself.”
Bank customers are equally sceptical, rushing to withdraw their real US dollars to hide them under the mattress. The banks have anticipated this by reducing US dollar withdrawals to a tenth of what they allowed in January.
Some are trying to defend Mangudya, insisting that he will refuse to obey Mugabe’s orders to print limitless bond notes.
They point out that he has promised to print only $200m worth of the new bond notes, and that all of these are backed by the Cairo-based African Import Export Bank.
But surely $200m will not be enough to pay for imports?
Unless the government introduces drastic import controls, which it has so far shown itself unwilling to so.
Instead, Zanu-PF has been consistent and totally reckless in spending money it does not have, and blithely destroying the export resources it does have; starting with the huge extra-budgetary pension payouts to war veterans and the costly military intervention in the Democratic Republic of Congo in 1998, through to the seizure of almost all the land from productive white farmers starting in 2000.
And so what will Mangudya do when the $200m runs out, as it surely must? It will be hard to resist the pressure to keep the printing presses running.
Or that may be the moment when Zanu-PF finally has to swallow its pride and do what it should have done from day one - join the rand monetary area.
Mangudya already hinted at that possibility when he said last week that from May 5, 40 percent of all new US dollar receipts will be converted to rand.
If Mugabe doesn’t do this, he might just precipitate the death throes of the Zanu-PF regime as unpaid securocrats, until now kept sweet by the dregs in the coffers, finally turn on him.
http://ift.tt/1OiRrMU
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