"I Would Say Don't Worry" Says Chinese Central Banker As Indian Central Banker Says "World Economy Is Looking Grim"Submitted by Tyler Durden on 10/07/2015 20:17 -0400
"I would say, don't worry" said Yi Gang, deputy governor of the People's Bank of China, after the International Monetary Fund warned of risks in China's economic challenges.
"The world economy is looking grim" - said Raghuram Rajan, Indian central bank governor and former chief economist of the International Monetary Fund.
In what seems like a nervous populist move amid Bernie Sanders' gains, Hillary Clinton has flip-flopped rather stunningly to oppose President Obama's Trans-Pacific Partnership. Despite supporting the bill at least 45 times, as CNN's Jake Tapper points out, Clinton told PBS' Judy Woodruff Wednesday in Iowa that, "As of today, I am not in favor of what I have learned about it." It's also a departure from the Clinton legacy, as CNN notes, it was President Bill Clinton who, two decades ago, signed the first mega-regional pact: the North American Free Trade Agreement.
"The Saudi Population Are Growing Restless": A Deep Look Inside The "Black Box" That Is Saudi ArabiaSubmitted by Tyler Durden on 10/07/2015 15:27 -0400
"The Saudi population, especially the younger people, are growing restless because they see what is happening in the world through social media of which they are among the highest users - that’s the only means they have to communicate. So the situation inside the country is also very fragile and the foreign policy conducted by the current regime is very perilous. It is only a matter of time because the Gulf States are ruled by oligarchies who maintain control through bribery and the sword. So this is a challenging time for the Gulf States despite all the public commentary suggesting they are immune to the uprisings."
"The impotence of monetary policy in boosting growth and staving off deflationary pressures has become painfully apparent, especially when it is acting in isolation and when a large number of countries are resorting to the same limited playbook."
Chinese President Xi Jinping recently confirmed the practice of moving the People’s Bank of China’s reserve assets to other entities in China: “some assets in foreign exchanges were transferred from the central bank to domestic banks, enterprises and individuals” This might explain where some of China’s gold hoard, that many suspect they posses but have not reported as reserves, may be located.
- U.S., Allies Demand Russia Stop Attacks on Syria Opposition (BBG)
- Russian Airstrikes Defend Strategic Assad Regime Stronghold on Syria’s Coast (WSJ)
- Emerging Stocks Head for Weekly Advance Before U.S. Jobs Data (BBG)
- Wage Strife Clouds Car-Sales Boom (WSJ)
- Oregon town reels from classroom carnage (Reuters)
- Oregon shooter came from California, described as shy and skittish (Reuters)
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News That Matters
India "Surprises" 51 Out Of 52 "Experts", Slashes Rates More Than Expected As Easing Bonanza ContinuesSubmitted by Tyler Durden on 09/29/2015 08:01 -0400
"Rate cuts should not be seen as goodies that the RBI gives out stingily after much public pleading"...
- Commodities in crisis as Asian shares tumble and shipper files for bankruptcy (Reuters)
- Global Rout Eases as S&P 500 Futures Advance With Oil, Glencore (BBG)
- Chinese Stocks Decline Most in a Month in Hong Kong on Economy (BBG)
- India cuts interest rates by more than expected (BBC)
- Glencore Rebounds as $50 Billion Plunge Is Seen as Excessive (BBG)
- How Congress May Have Saved Goldman Sachs From Itself (BBG)
Asian Equities Tumble On Commodity Fears; US Futures Rebound After India "Unexpectedly" Eases More Than ExpectedSubmitted by Tyler Durden on 09/29/2015 06:52 -0400
It was a tale of two markets overnight: Asia first - where all commodity hell broke loose - and then Europe (and the US), where central banks did everything they could to stabilize the already terrible sentiment.
There’s an enormous and growing disconnect between the cash and physical markets for gold. This is exactly what we would expect to precede a major market-shaking event based on a physical gold shortage.
- Headline winner: "Read Beyond Massive Job-Cuts Headlines: Labor Market Is Fine" (BBG)
- And speaking of lies: The More Yellen Talks Up Inflation, the Less Traders Believe Her (BBG)
- How Some Investors Get Special Access to Companies (WSJ)
- Victorious Catalan separatists claim mandate to break with Spain (Reuters)
- Russia seizes initiative in Syria (Reuters)
- Former VW boss Winterkorn investigated for fraud (Reuters)
- Investors Pull Back From Junk Bonds (WSJ)
Neoliberal economics is blind to reality and serves to justify the destruction of the economic prospects of the Western World. It remains to be seen if Russia and China can develop a different economics or whether these rising superpowers will fall victim to the “junk economics” that has destroyed the West. With so many Chinese and Russian economists educated in the US tradition, the prospects of Russia and China might not be any better than ours. The entire world could go down the tubes together.