Today, the war against BAT fired its first salvo, when the previously profiled Senator David Perdue of Georgia, former CEO of discount retailer Dollar General, emerged as the top Republican critic of the House GOP plan to adjust business taxes at the border, threatening the divisive proposal's legislative prospects.
In a speech that struck all the right platitudes with this pro-globalization audience, Xi Jinping, the first Chinese president to attend Davos, slammed protectionism, voicing his support for free trade, and saying he has no intent to boost China's competitiveness through Yuan devaluation.
Q. When you look ahead to 2017, what keeps you awake at night? A. Short term, the Fed rate hikes. Medium-to-long term, the retreat from multi-lateralism related to the performance of the global economy - the major and various economies, and emerging markets like China.
ACQ: “Look, it doesn’t matter what you or I think. The President wants the TPP, and the Party isn’t going to oppose him....They don’t see much of a risk. Most Americans don’t know or care about the TPP.”
RR: “But they know big corporations are running economic policy. They think the whole system is corrupt. Believe me, Trump will use this against Hillary.” ACQ: “I think you’re being too cynical.”
The truth is, it is the “European Project” which represents the darker impulses - it is a tyranny based on a muddled brew of globalism, statism, financialization and the cult of central banking. It’s days are numbered because even the rubes can see that it doesn’t work, and that its massive internal contradictions are heading for a spectacular implosion. The British voters have decided to get out of harms’ way. Hopefully, there will soon be many other cases of the rubes in revolt.
Russian government hackers penetrated the computer network of the Democratic National Committee and gained access to the entire database of opposition research on GOP presidential candidate Donald Trump, according to committee officials. The networks of presidential candidates Hillary Clinton and Donald Trump were also targeted by Russian spies, but as The Washington Post reports, the intruders so thoroughly compromised the DNC’s system they also were able to read all e-mail and chat traffic.
Although oil has rebounded off the recent lows, the Saudi budget remains stretched and in an attempt to help raise revenues in the short term (and transition away from dependency on oil in the longer term), the government is weighing an income tax on expat workers. There are nine million foreigners living and working in Saudi Arabia said Mufrej Al-Haqbani, the country's labor minister, and Finance Minister Assaf said that there are no plans to tax Saudi nationals.
Japanese banks may soon pay borrowers to accept loans if they can raise funds at even cheaper rates. Negative interest-rate lending is increasingly becoming a reality since the Bank of Japan started levying charges on idle cash. Lenders can now borrow for three months in the Tokyo interbank market at a record-low 6 basis-point annualized rate, versus 17 basis points since the BOJ move in January. They may eventually be able to be paid to borrow and then profit by paying less to lend, according to Credit Suisse Group AG, JPMorgan Chase & Co. and SMBC Nikko Securities Inc. This is also known as shoving money down people's throats... and then paying them for it.
"The jump in basis swaps is an extremely serious problem,” said Hidetoshi Ohashi, the chief credit strategist in Tokyo at Mizuho. "If it continues widening, financial firms will need to reduce their overseas holdings or diversify their investments into other regions."
"The loss of traditional human connections, the dehumanization of man in mass society, and the corruption of the political and economic marketplaces, Röpke argued, had created the sociological and psychological conditions for the emergence of and receptivity to the collectivist idea and its promise of a new community of a better society designed according to a central plan." In the dark days immediately following the rise to power of Adolf Hitler and his Nazi movement in Germany in January 1933, Willhelm Röpke refused to remain silent. He proceeded to deliver a public address in which warned his audience that Germany was in the grip of a "revolt against reason, freedom and humanity."
The carnage always comes by surprise, often on an otherwise ordinary Saturday morning... The government declares a surprise bank holiday. It shuts all the banks. It imposes capital controls to stop citizens from taking their money out of the country. At that point, the government is free to help itself to as much of the country’s wealth as it wants. It’s an all-you-can-steal buffet. This story has recently played out in Greece, Cyprus, Argentina, and Iceland. And those are only a few recent examples. It’s happened in scores of other countries throughout history. And we think it’s inevitable in the U.S.
"Assuming selling in accordance to the average allocation of FX Reserve Managers and SWF across asset classes, we estimate that the sales of bonds by oil producing countries will increase from -$45bn in 2015 to -$110bn in 2016 and that the sales of public equities will increase from -$10bn in 2015 to -$75bn in 2016."