World braces as deflation tremors hit Eurozone bond markets

‘The forces of monetary deflation are gathering. Global liquidity is declining and central banks are not doing enough, either in the West or the East to offset the decline,’ warns CrossBorderCapital

Eurozone fears have returned with a vengeance as deepening deflation across Southern Europe and fresh turmoil in Greece set off wild moves on the European bond markets.

Yields on 10-year German Bund plummeted to an all-time low on 0.72pc on flight to safety, touching levels never seen before in any major European country in recorded history. “This is not going to stop until the European Central Bank steps up to the plate. If it does not act in the next few days, this could snowball,” said Andrew Roberts, credit chief at RBS.

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Calls for action came as James Bullard, the once hawkish head of St Louis Federal Reserve, said the Fed may have to back-track on bond tapering in the US, hinting at yet further QE to fight deflationary pressures and shore up defences against a eurozone relapse.

JPMorgan data ‘sent to Russia’ by computers for hire

JPMorgan’s own investigators have found clues that a global network of computers available for hire by sophisticated criminals was used to reroute data stolen from the bank to a major Russian city, according to people familiar with the probe.

Like street magicians using sleight of hand, the hackers tapped computers from Latin America to Asia to send commands and obscure their identity while ferrying malicious traffic past one of the most heavily guarded networks on Wall Street.

Bank investigators working nearly around the clock have identified what they believe to be the assault’s staging ground, called a “bulletproof” hosting platform because of its resilience to other attackers and to law enforcement, according to one of the people, who requested anonymity because of the continuing investigation. The constellation of computers was used in previous hacking attacks and is now being tapped by professional cybercriminals operating out of Eastern Europe to target banks.

US experts warn of cyberattack risk over further sanctions on Russia

US officials security specialists warn that Russian hackers may answer new sanctions by attacking computer networks of US banks and large companies.

Officials involved in a White House review of the effects of further penalties on Russia did not respond to questions about whether the study explored the risk of cyberattacks. Even so, two sources said it included revisiting previous classified exercises in which small numbers of computer experts showed they were able to cripple the United States economy in a few days.

Cybersecurity specialists consider Russian hackers among the world’s best at infiltrating networks and say evidence exists that they have already inserted malicious software on computers in the US.

US banks are told to be prepared for 30-day crisis

The biggest US banks would be required to hold enough easily sold assets to survive a 30-day credit drought under proposed new Federal Reserve liquidity rules.

The Federal Reserve liquidity coverage ratio proposal, approved unanimously at a meeting in Washington, goes further than the Basel III measure adopted in January and calls for earlier implementation than the EU.

Jim Sinclair: ISDA to determine this week if five major US banks go insolvent

Yet, the American public is virtually and completely unaware.

In what might be one of the most important credit events about to occur in the history of the financial world, the International Swaps and Derivative Association (ISDA) is expected to make a decision as early as today on whether five major US banks will go insolvent according to Jim Sinclair in an interview on January 30th.

The ISDA is one of the most powerful monetary entities in the world, and in many cases according to Mr. Sinclair, has more power than governments.  It’s dominion spreads throughout the entire banking system, determining whether one or more of the nearly $1 quadrillion in derivatives and credit default swaps are paid out to holders in the event of a bank, sovereign nation, or securities default.

In his interview with Ellis Martin, Mr. Sinclair lays out that the decision by the ISDA could take place as early as today, and no later than this week, and it involves five major US banks, the nation of Greece, the Euro, and the chances of a massive QE bailout in the Western economic system.

Continue reading article: Jim Sinclair: ISDA to determine this week if five major US banks go insolvent (Examiner)

Interview link: Breaking News Ellis Martin Report with Jim Sinclair