The announcement that China will start targeting the yuan against a basket of currencies and not the dollar is consistent with the strategy of undermining the dollar's value. While the view of a looming Yuan devaluation seems almost universal, GoldMoney's Alasdair Macleod warns instead that something else may be a foot - China will sell her dollars not to protect the yuan, but to dispose of an overvalued currency.
“The large discrepancy between the spot price and the fix is very alarming to us especially that it happened twice in a row,” KGHM head of market risk Grzegorz Laskowski exclaimed.
"Unfortunately, it is not [a mistake]... This could be the end of the fix. It took 14 minutes to find a fix – they obviously found a fix way off of the market."
As we said two days ago when looking at the paltry recoveries on their total debt that bankrupt energy debtors are generating in liquidation and bankruptcy asset sales, "the energy bankruptcy party is only just starting." And sure enough, overnight we learned that another company is preparing to throw in the towel following a Reuters report that SandRidge Energy - a shale oil and gas producer in the Mid-Continent region of the U.S. - is exploring debt restructuring options, "as the heavily indebted U.S. oil and gas exploration and production company struggles with the fallout from plunging energy prices."
Sort of like all those do it yourself Gold Mining shows hitting the reality television scene pretty much nailing the near term top in the gold market.
An unseen bubble at the heart of the financial system is deflating with unknown consequences. When bubbles deflate, and here we are talking about one in the hundreds of trillions, bad debts are usually exposed. Even though much of the reduction in outstanding OTC derivatives is due to consolidation of positions following the Frank Dodd Act, much of it is not. When free markets reassert themselves, and they always do, the disruption promises to be substantial. We appear to be in the early stages of this event. If so, demand for physical gold can be expected to escalate rapidly as a financial crisis unfolds.
Derivatives like credit default swaps turned a mere bubble in the US housing market into a global financial catastrophe...
Despite every effort by The Fed to convince the world that everything is awesome, it's not. From China growth risks to concerns about tightening financial conditions, Goldman warns so-called 'grey swan' fears are rising with Brexit, Trumpe elected, widening terrorist threats, and increased protectionism the most impactful.
... I found myself seeking refuge in the tiramisu staring back at me, a bit uncomfortable that I was only hearing the wah wahs of Charlie Brown’s adult voices. Until this, during the back and forth of Q&A: (Laughter around the room…) “We don’t remember how to raise interest rates. None of us worked here the last time we did it.”
Meet 'The Gold Armed Police' - China's special army unit dedicated to acquiring and protecting the nation's precious metals.
"This is legal?" Stephanie Ruhle on CDS after watching "The Big Short" (Bloomberg TV)
The LBMA wants to boost transparency and invited the market to suggest improvements including considering a new electronic platform that may lower trading costs and improve efficiency.
Every SINGLE Big Wall Street Bank Got Stocks AND Rates Horribly Wrong, Except for... Here's Why It Will Always Happen!Submitted by Reggie Middleton on 09/30/2015 09:44 -0500
This is a damn shame. You can't be upset if your banker calls you a muppet if you hand him the marrionette strings... The tools to cut the strings are just around the corner. Let's see if regulators do the right thing, or if will they stilfe innovation to protect status quo.
Everything is so wonderful that a rate hike would equate to saying the Fed has won. Seven years of ZIRP and a few selling periods when the Fed stopped POMO’s and QE injections, we can easily say with extreme confidence that the Fed won. And by won we mean didn’t ruin the system entirely. Except they did.
Behind the veneer of “all is well” being promoted by both world Governments and the Mainstream Media, the political and financial elite have begun implementing moves to prepare for the next Crisis.