Frontrunning: August 27

• The beginning of the end of the dollar? Banks Back Switch to Renminbi for Trade - A number of the world’s biggest banks have launched international roadshows promoting the use of the renminbi to corporate customers instead of the dollar for trade deals with China. HSBC, which recently moved its chief executive from London to Hong Kong, and Standard Chartered, are offering discounted transaction fees and other financial incentives to companies that choose to settle trade in the Chinese currency. (FT)
• SEC vows more action, [and arguably less porn, regulatory capture, criminal negligence and gross incompetence] (FT)
• Gold's Evangelist: With gold a fashionable hedge against turbulent times, one billionaire is doing everything he can to get his hands on the actual stuff (BusinessWeek cover story)
• Banks’ Self-Dealing Super-Charged Financial Crisis (ProPublica)
• Bernanke, Trichet Economic Paths May Diverge at Jackson Hole (Bloomberg)
• All Eyes on Bernanke's Speech From on High (Barrons)
• Hoenig Says He Changed Jackson Hole Guest List to Discourage `Group Think' (Bloomberg)
• Kan to Speak on Steps to Boost Japan Economy, Curb Strong Yen (Bloomberg)
• UK economy grows at fastest pace in nine years (Telegraph)
• The Fallacy of ‘Bailing Out’ U.S. Cities and States (Rick's Picks, h/t Robert)
• Bank Rossii Canceling Debt Sales to Fend Off GDP Slowdown: Russia Credit (Bloomberg)
• Strategic Default & Living For Free: Josh Bartlett Hasn't Made A Mortgage Payment In 32 Months And He Hasn't Been Kicked Out Yet (Daily Bail, h/t Rob)
• Balls Warns Plans to Slash U.K.'s Budget Deficit Might Cause Second Slump (Bloomberg)
• Define clutching at confidence game straws: IMF's Lipsky does not see double-dip recession (Reuters)
• Krugman Says U.S. Fed, Government Are `Sugar Coating' Economic Recovery (Bloomberg)
• The Great Debate UK - Waiting for the other shoe to drop (Reuters)
• Krugman- This Is Not a Recovery (NYT)
• This is news? Commercial Real Estate Borrowers Joint the Ranks of Strategic Defaulters (Atlantic)

Economic Data:

• Japan Jobless Rate for July 5.2% - better than expected. Consensus 5.3%. Previous 5.3%.
• Japan Job-To-Applicant Ratio for July 0.53 – in line with expectation. Consensus 0.53. Previous 0.52.
• Japan Overall Hhold Spending for July 1.1% y/y – lower than expected. Consensus 1.5% y/y. Previous 0.5% y/y.
• Japan Tokyo CPI for August -1.0% y/y – higher than expected. Consensus -1.1% y/y. Previous -1.2% y/y.
• Japan Tokyo CPI Ex-Fresh Food for August -1.1% y/y – higher than expected. Consensus -1.2% y/y/ Previous -1.3% y/y.
• Japan Tokyo CPI Ex Food, Energy for August -1.4% y/y  – in line with expectation. Consensus -1.4% y/y. Previous -1.4% y/y.
• Japan Natl CPI for July -0.9% y/y – in line with expectation. Consensus -0.9% y/y. Previous -0.7% y/y.
• Japan Natl CPI Ex-Fresh Food for July -1.1% y/y – in line with expectation. Consensus -1.1% y/y. Previous -1.0% y/y.
• Japan Natl CPI Ex Food, Energy for July -1.5% y/y – in line with expectation. Consensus -1.5% y/y. Previous -1.5% y/y.

Comments

[Sean7k]

Hmmm, strengthen the renminbi and weaken the dollar.  Sounds suspiciously like a Bernanke gambit. You might want to rethink your treasury investments- the bubble may be showing signs of a weakening wall. 

What will Americans buy, when chinese becomes too expensive? 

This is an interesting road to walk down. Crumbling, filled with potholes and dangerous, still it is the road before us...

[snowball777]

What will Americans buy, when chinese becomes too expensive?

American.

I'd love to see the look on Timmay's face when he realized that his pair of jacks wouldn't cut it as the Chinese drew to a bellybuster FTW.

[etrader]

Yra Harris gives a shout out to Zero Hedge on cnbc.

Also hints that Druckenmiller may have been upside down on the steepener's (no different to most funds).

Fun starts 2:25mins in

http://www.cnbc.com/id/15840232?video=1575911387&play=1

[tony bonn]

Banks Back Switch to Renminbi for Trade -

jim willie has been pounding the table on this subject for over a year...it's now coming home to roost....the day when one corrupt totalitarian regime's currency is replaced by another corrupt totalitarian regime's currency is the proof in the pudding that the end is nigh....

can you imagine a ruling class of banksters who hate this country so badly that they would engineer such a shift in power? the usa should be knocked down - its meddling in foreign government affairs would make george washington blanche....its evil wars of imperial aggression are insufferable....th usa will become a widowed whore but it will stage one last gasp of infantile horror before it collapses. yes - that is what mass education was all about - the creation of the totalitarian state built on the small minds of effeminate control freak task masters. the pharisees and sadduccees bring destruction under their veneer of intelligence....

[MarketFox]

The SEC goes nowhere until the "REAL PAYING JOBS REVOLVING DOOR IS SLAMMED SHUT".....

And sames faces...same places...????

THIS has to change....

NEW FACES ....NEW PLACES....

[Steak]

A yin and a yang

limit down (a playlist): http://www.youtube.com/view_play_list?p=39E281A11EE2D483 

down the boulevard (a playlist): http://www.youtube.com/view_play_list?p=D99EC6935E5AF32A 

[kathy.chamberli...]

this isn't music this is sex. my delete button doesn't work. i am in trouble.

[FranSix]

What is that curious expression again what Amerikanski use for plug nickels?

http://stockcharts.com/h-sc/ui?s=CYB&p=W&b=5&g=0&id=p15488071547&a=20286...

So nobody sees the coming collapse in the Yuan, as it had occurred in the Thai Bhat after their real estate collapse.  I would say that increasing problems with convertibility in the Yuan will put some downward pressure on the Dollar(unless they de-peg), but also show up in a Yen melt-up.

http://stockcharts.com/h-sc/ui?s=$XJY:$USD&p=M&st=1980-01-01&en=(today)&id=p26579836264&a=181133547&listNum=2

[Abu Morpheus]

This article is worth a read:

http://www.forbes.com/2010/08/26/government-business-labor-opinions-columnists-warren-meyer.html?boxes=opinionschannellatest

[Grand Supercycle]

As first suggested on Thurs 26th, further upside for DOW/SP500 is expected.

http://stockmarket618.wordpress.com

[Herry12]

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