More Dots

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Interesting Twitter thread from “Lycaon” today. It lays out a series of dots (no better use of Twitter than laying out dots) that connects Clintons, various Trump-Russia actors, and money-laundering. I think Lycaon would do well to re-examine Bill Browder’s  hole-pocked alibi as “anti-Putin avenger” but his inclusion of HSBC, presented by a US Senate committee on July 17, 2012 as a money-laundering entity, and James Comey’s arrival at HSBC as director on March 4, 2013, and then, seven months later, Comey’s appointment as FBI director by President Obama is sequencing worth recalling.

In between, of course, HSBC paid a giant fine in exchange for a clean bill of health. Continue reading

De-Dollarization & Disintermediation – Russian Mobile Phone Operator Issues First Blockchain-Backed Bond

 

For months now Russia has been moving into the blockchain space in a serious way. I’ve talked about these moves in previous articles(herehere and yes, even here)

But, the latest news is one that should have every one stand up and take notice.

Russian Mobile phone operator, Megafon, issued RUB500 million in zero-coupon blockchain-based bonds recently. This was purely a proof of concept issuance. Continue reading

Wall Street Banks Warn Downturn Is Coming

Societe Generale SA

 

  • HSBC, Citigroup, Morgan Stanley say end of market boom is nigh
  • Breakdown in trading patterns is signal to get out soon

HSBC Holdings Plc, Citigroup Inc. and Morgan Stanley see mounting evidence that global markets are in the last stage of their rallies before a downturn in the business cycle.

Analysts at the Wall Street behemoths cite signals including the breakdown of long-standing relationships between stocks, bonds and commodities as well as investors ignoring valuation fundamentals and data. It all means stock and credit markets are at risk of a painful drop. Continue reading

Poland first in Europe to issue RMB debt in China

Poland has become the first European country to issue government debt into China’s mainland bond market, with a bond of 3 billion yuan ($452 million), marking a significant milestone for renminbi’s growing use internationally, which builds towards its reserve currency status. Continue reading

Yuan devaluation breaks last line of global economic defence, warns top economist

Stephen King of HSBC warns the world’s financial system may not survive another crisis without China as a backstop

China’s devaluation of the yuan reveals that the global economy will be without stabilisers if another crisis strikes, economists have warned.

The decision to cut the yuan’s value showed that Beijing had become scared, they said, suggesting that the world’s second-largest economy is in a far more precarious position than outsiders had assumed.

Stephen King, a senior economic adviser to HSBC, said that since the crisis China had done more than any other to provide “the heavy lifting to support global economic growth”, but that it may not step in to keep the world’s financial system afloat again.

Continue reading

Texas Launches Gold-backed Bank, Challenging Federal Reserve

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The State of Texas is setting up a gold-backed bank that will allow depositors to bypass the controversial Federal Reserve System and its fiat currency in banking and commerce, according to the state representative who authored the recently enacted law. Under the measure, passed overwhelmingly by lawmakers and signed in mid-June by Republican Governor Greg Abbott, Lone Star State officials will establish and operate the Texas Bullion Depository for anyone who would like to deposit and trade in precious metals. The implications are as big as Texas.

While some analysts have said the move may be another sign heralding Texas’ eventual secession from the union, or preparation for financial Armageddon, its advocates say the depository simply makes financial sense. Among other benefits, the institution will provide more options to consumers weary of the increasingly troubled traditional banking and monetary system, which is viewed by the public with growing suspicion. And experts say the effect of making it easier to use sound money in commerce could be far-reaching. Continue reading

HSBC fears world recession with no lifeboats left

The world authorities have run out of ammunition as rates remain stuck at zero. They have no margin for error as economy falters

The world economy is disturbingly close to stall speed. The United Nations has cut its global growth forecast for this year to 2.8pc, the latest of the multinational bodies to retreat.

We are not yet in the danger zone but this pace is only slightly above the 2.5pc rate that used to be regarded as a recession for the international system as a whole.

It leaves a thin safety buffer against any economic shock – most potently if China abandons its crawling dollar peg and resorts to ‘beggar-thy-neighbour’ policies, transmitting a further deflationary shock across the global economy.

Continue reading

Markets More: HSBC Bearish HSBC WARNS: The world economy faces a ‘titanic problem’

HSBC chief economist Stephen King is already thinking about the next recession.

In a note to clients Wednesday, he warns: “The world economy is like an ocean liner without lifeboats. If another recession hits, it could be a truly titanic struggle for policymakers.” Continue reading

Violent bond moves signal tectonic shifts in global markets

‘It is absolute pandemonium in the fixed income markets. Everybody has been trying to get out at the same time but the door is getting smaller,’ says RBS

A wave of turmoil is sweeping through sovereign bond markets, setting off the most dramatic gyrations seen in recent years and threatening to spill over into over-heated equity markets.

Yields on German 10-year Bunds spiked violently by almost 20 basis points to 0.78pc in early trading on Thursday as funds scrambled to unwind the so-called “QE trade” in Europe, with powerful ripple effects reaching Japan, Australia, Brazil and even US Treasuries.

“It is absolute pandemonium in the fixed income markets,” said Andrew Roberts, head of European credit at RBS. “Everybody has been trying to get out of long-duration positions at the same time but the door is getting smaller.”

Continue reading

Bank of England stress tests to include feared global crash

 

The Bank of England is to impose a series of tests on major UK banks to establish whether they are able to withstand a dramatic slowdown in China, a contraction in the eurozone, the worse deflation since the 1930s along with a fall in UK interest rates to zero.

The Co-operative bank – which failed last year’s tests – is no longer included in the annual assessments of the industry’s financial strength as it is too small, leaving six banks and the Nationwide building society to be tested. Continue reading

Andrew Maguire – Who Smashed Gold Today And Why As HSBC Shocks Clients By Closing All London Gold Vaults!

Today London metals trader Andrew Maguire spoke with King World News about who smashed the price of gold today and why as HSBC just shocked clients by announcing the closure of all gold vaults in London!  Maguire also discussed what is happening in the physical gold market as well as what the bullion banks are up to.

Today’s Gold Smash Is Western Government Intervention

Andrew Maguire:  “Eric, here we are again after another heavily gamed Non-Farm Payrolls (NFP) report week that evidences just how ‘managed’ the paper markets are. Given the strong Indian and Chinese demand above $1,200 and the currency crosses related to gold that were net-positive all week, there was no reason to paint gold down ahead of today’s NFP. Given that the physical market is strong, the Comex-centric selling has all the hallmarks of ‘official’ selling.

Continue reading

Sweden cuts rates below zero as global currency wars spread

Morgan Stanley warns that the world is revisiting the “ghosts of the 1930s” as one country after another tries to steal a march on others by devaluing first

Sweden has cut interest rates below zero and launched quantitative easing to fight deflation, becoming the latest Scandinavian state to join Europe’s escalating currency wars.

The Riksbank caught markets by surprise, reducing the benchmark lending rate to minus 0.10pc and unveiled its first asset purchases, vowing to take further action at any time to stop the country falling into a deflationary trap. The bank presented the move as precautionary step due to rising risks of a “poorer outcome abroad” and the crisis in Greece.

Continue reading

Banks accused of rigging silver price

Deutsche Bank, HSBC and Bank of Nova Scotia have been accused of attempting to rig the price of silver, in a lawsuit filed in the US.

The plaintiff alleges the banks, which set the price of silver each day, abused their position in the market.

The lawsuit follows similar filings in the gold price-fixing market. Continue reading

Global firms becoming keen on using yuan

The use of the renminbi in trade settlements increased sharply this year, according to HSBC’s annual renminbi survey.

The survey which began last year covered eleven countries, four of which were added this year. All seven markets surveyed in both years posted increases, the largest of which were in Germany, Hong Kong and the U.S.

Of the German companies profiled, 23 percent are using the renminbi to settle trades, up from 9 percent last year, while usage in Hong Kong rose to 58 percent from 50 percent and to 17 percent from 9 percent in the U.S.

Usage of the renminbi among French companies – a new addition to this year’s list – was high at 26 percent.

Prospects for next year are bright as nearly 60 percent of global companies plan to increase their cross border activity with China over the next 12 months. Currently, 22 percent of companies globally trade in renminbi. Continue reading

Banks could lose monopoly on gold fix

Other industry groups such as miners may join process of setting crucial benchmark following allegations that process is open to rigging

Banks could lose sole responsibility for setting the gold price benchmark under new rules proposed by the industry.

Other parties such as miners and refiners may enter the London gold fix, which has been controlled by banks for almost a century but has come under scrutiny following allegations that the system is open to manipulation.

Continue reading