The world economy can’t handle even one US rate hike, strategist Sri-Kumar says

Please see the source for the video.

 

Even one small interest rate increase by the Fed could have a sweeping impact on U.S. and world economies, Komal Sri-Kumar told CNBC on Monday.

“I think they are going to hike” on March 15, Sri-Kumar said on “Squawk Box,” echoing a theory shared by many analysts. “But that is going to prompt capital outflows from the euro zone, especially with the political risk. It is going to increase the capital outflow from China, and the U.S. economy will feel the impact.”

These moves would strengthen the dollar against other currencies, putting downward pressure on the euro, said Sri-Kumar, president of Sri-Kumar Global Strategies. Continue reading

Greek Gov’t is 40% of GDP

 

QUESTION:  Hello, I do not understand what Martin say about the fact that the Greek debt doubled when it changed into euro. Indeed, if the currency is twice the value of the old one then all your debt will double as Martin said. However all your assets will double in value too. So it is the same situation as before. I may miss something, could you please explain me what I am missing? Continue reading

Taiwan Joins Global War On Cash: Plans To Ban Purchases Of Houses, Cars, & Jewelry

 

The cancerous virus of freedom-destroying worldwide cash-bans – in the name of fighting terrorism – has reached Taiwan this week. With the aim of ‘preventing money-laundering’, Taiwan may ban cash purchases of properties and luxury goods, Taipei-based Economic Daily News reports, citing unidentified official at Ministry of Justice.

As we previously noted, the War on Cash is not merely continuing, it is intensifying. Continue reading

Trump To Unveil “Passive-Aggressive” Currency War With China

Call it passive-aggressive currency war.

While one of Trump’s most sincere desires, both during his campaign, and ideologically from his life prior to politics, has been to publicly declare China a currency manipulator – something he promised he would do on day one of his administration – and crack down on the “undervalued” Yuan (even though over the past 18 months, China has been scrambling to prevent further devaluation of the Yuan in light of over $1 trillion in capital outflows in recent years), lately Trump appears to have gotten second thoughts, and after backing off on his intent to negotiate the “One China” policy, now Trump is looking for a way out of engaging China directly in currency war. Continue reading

China has cost US 3.4 million jobs, says think tank

A Chinese worker tests circuit boards at a factory in Sichuan province. Photo: AFP

 

Economic Policy Institute says the US-China trade relationship needs fundamental change to stop ‘unfair trade and illegal currency manipulation’

A lengthy report released last week by the Economic Policy Institute, a US think tank, lays bare the loss of American jobs to China, particularly in tech manufacturing. Continue reading

Transatlantic Trade War

BERLIN/WASHINGTON (Own report) – In the looming trade war between the EU and the USA, Brussels is threatening to officially denounce the United States as a “tax haven.” The EU Commission is currently preparing this affront to the world power, following Washington’s strong criticism of Germany’s excessive trade surplus. In the six years, from 2010 to 2015 alone, this surplus has led to an outflow of nearly a quarter trillion euros to Germany from the United States because of the “grossly undervalued” euro, according to Trump’s trade advisor Peter Navarro. This has been confirmed by the Bundesbank’s recent analysis, showing that through its monetary policy the European Central Bank (ECB) has contributed to the euro’s undervaluation, which in turn has facilitated record German exports and the large US deficit. The trade conflict is flanked by a propaganda offensive against the Trump administration, exploiting the new US president’s racist and chauvinist policies to designate him as an enemy. This conflict could lead to the first major power struggle between Germany and the United States since 1945. Continue reading

Iran Just Officially Ditched the Dollar in Major Blow to US: Here’s Why It Matters

It’s not oil that is America’s Achilles Heel, it’s the U.S. Dollar. It’s the global reserve currency and was given that status by trading the world’s lifeblood of economies: oil. Take away the Dollar in trading of oil and you can take down the entire house of cards, in this case the U.S. The last couple of times this move was made, Ghadafi and Saddam Hussein were killed.

People politicized and speculated it was over oil, but missed the mark. America has all the oil it could ever need in its own backyard but not always the support it needs to sustain its lifestyle via waning Dollar hegemony when nations are banding together.

 

 

(ANTIMEDIA) Following President Donald Trump’s ban on travelers from seven predominantly Muslim countries, the Iranian government announced it would stop using the U.S. dollar “as its currency of choice in its financial and foreign exchange reports,” the local Financial Tribune reported.

Iran governor Valiollah Seif’s central bank announced the decision in a television interview on January 29. The change will take effect on March 21, and it will impact all official financial and foreign exchange reports. Continue reading

The Alternative Fact of the Cashless Society

Why gold will benefit from the alternative fact of the cashless society

 

Why gold will benefit from the alternative fact of the cashless society

  • Alternative facts prevail in the European Commission’s calls for cash controls
  • Terrorism is blamed for the need to control cash
  • Evidence shows criminals find alternative ways to finance activities
  • Citizens continue to want and to use cash in day-to-day life
  • Cashless society is being used to force through other ‘agendas’
  • Gold and silver will be used as savers are forced to hold assets outside of the financial system

“Those who control the present, control the past and those who control the past control the future.”

George Orwell, 1984

Last week a new phrase was introduced into our lexicon by Trump Adviser Kellyanne Conway. When asked about why press secretary Sean Spicer had made statements that were (according to the press) unverifiable she said that he had used ‘alternative facts’. Continue reading

Blockchain – Central Banks Banking On It

Source: Photosteve101 via Flickr

 

“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust …”

Satoshi Nakamoto (Unknown person or persons who designed bitcoin and created its original reference implementation, Bitcoin Core)

Fiat currency debasement and failure is why gold has survived and thrived for thousands of years  and indeed in recent years. It is why bitcoin is becoming more popular, with its growing market cap and ever-expanding ecosystem. Continue reading

‘The pound is IRRELEVANT’ German financial giant Deutsche Bank in shocking Sterling swipe

Deutsche Bank

Deutsche Bank branded the pound ‘irrelevant’ [GETTY•ALAMY]

 

Britain’s currency is permanently tarred after the UK voted to leave the European Union (EU), according to one of the bank’s foreign exchange strategists.

As a result, the pound is set to lose its prized status as a leading international safe haven currency, said Robin Winklertold. Continue reading

Draghi Admits EU May Breakup For First Time

For the first time, the head of the European Central Bank, Mario Draghi, has conceded the possibility that the EU may fall apart. Draghi came out and said that any member leaving the Eurozone would need to settle its claims or debts with the bloc’s payments system before severing ties. This statement reveals the heated discussion at Davos and the rift that is beginning to spread. This statement, released on Friday, was made in a letter to two Italian lawmakers in the European Parliament. Continue reading

Turkey, ‘Axis of Gold’ and the End of US Dollar Hegemony

 

Introduction

With a ‘Hard Brexit’ looking more likely and Trump’s inauguration this week, 2017 is well and truly under way.

What we expect the year to hold is probably not even half of what it really will. But from what we know, the upcoming French and German elections, referendums, geopolitical crises, steps towards reverse globalisation and a third of global government debt yielding negative interest rates, governments are already prompting central banks and investors to turn to the one asset that has survived millennia of financial and monetary crises.

One that is highly liquid and convertible into other currencies – gold. Continue reading

Dollar to hit parity with euro in 2017

 

The dollar is likely to hit parity with the euro during 2017 driven by diverging paths for interest rates, according to Goldman Sachs’ chief economist.

The Federal Reserve is likely to hike interest rates three times in 2017, pushing it even further from the rate positioning stance of Europe during the course of the year, Jan Hatzius told CNBC at the Goldman Sachs Strategy Conference in London on Monday. Continue reading

Scandinavia – Leader in the War on Cash

The real gem of this article is the last paragraph and its related photo posted below. Espionage, aiding and abetting the enemy by enemies within runs deep in America and has for decades.

money-plane-new-york-magazine-january-22nd-1996

The Scandinavian countries Sweden, Denmark and Norway are regarded as a pioneer in the the effort to eliminate money and move totally electronic. Denmark closed its final Mint outsourced the operation to Finland. This means that there is no coinage in the three states struck anymore. In this war on cash, about 20% of all transactions were settled in Denmark last year with cash. In Germany and Austria, cash transactions accounted for 80%. Scandinavia is pushing hard to eliminate all cash completely to enable 100% efficient tax collecting. Continue reading