Daily Digest

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Daily Digest 1/28 - China to Move to Electronic Currency, Russia May Ban Corn And Soybeans

Thursday, January 28, 2016, 10:36 AM

Economy

25 Years Of Fed Fueled M&A—-Ancestry.com Of The Banking Oligopoly (Aaron M.)

Of particular importance to note is the frequency of consolidation during the 2008 Financial Crisis, when the Big Four were able to gobble up weaker competitors that were overexposed to subprime mortgages. Washington Mutual, Bear Stearns, Countrywide Financial, Merrill Lynch, and Wachovia were all acquired during this time under great duress.

The Big Four is not likely to be challenged anytime soon. In fact, the Federal Reserve has noted in a 2014 paper that the number of new bank charters has basically dropped to zero.

The U.S. was supposed to leave Afghanistan by 2017. Now it might take decades. (PBD)

The shift in mind-set, made possible by President Obama’s decision last fall to cancel withdrawal plans, reflects the Afghan government’s vulnerability to continued militant assault and concern that terrorist groups such as al-Qaeda continue to build training camps whose effect could be felt far beyond the region, said senior military officials.

Something Snapped At The Comex (Aaron M.)

Until today, when in the latest update from the Comex vault, we learn that a whopping 201,345 ounces of Registered gold had been de-warranted at the owner's request, and shifted into the Eligible category, reducing the total mount of Comex Registered gold by 73%, from 275K to just 74K overnight.

A Short History Of Paper Money (GE Christenson)

I saw a man pay for groceries last week with cash – long green – with no ill effects. Visa and Master Charge did not collect their usual skim from the transaction and the buyer and seller were unaffected. Imagine a world where money was honest, backed by something real, not the promises from bankers and politicians, could not be created by politicians or bankers, and where money was a reliable store of value! It won’t happen next month, but it could happen.

China to Move to Electronic Currency (Aaron M.)

The People’s Bank of China held a seminar yesterday to discuss the issuance of a digital currency. The Chinese central bank said issuing a digital currency would have positive implications as it would reduce the high printing and circulation costs of traditional cash notes, make economic transactions more convenient and transparent, reduce money laundering and tax evasion, and strengthen the central bank’s control over money supply and circulation. The Chinese central bank pledged to issue China’s own digital currency as early as possible.

How The Energy Crash Revealed A Weak Global Economy (Josh O.)

Stock prices then rebounded to near their previous levels and all was forgotten...until the beginning of this year. The continuing rout in oil prices began to underline not only the weakness in the global economy, but also the unclear situation at major banks holding large energy-related loan portfolios. The Dallas Federal Reserve Bank was reported to have encouraged banks in its jurisdiction to forebear on energy loans. Essentially, the Dallas Fed was telling banks to ignore losses in their energy portfolios until further notice so as not to cause a panic. The reserve bank quickly denied any such guidance to member banks.

The myth of US self-sufficiency in crude oil (PBD)

In Aljazeera’s Inside Story, 10/1/2016, titled “How much support will Saudi Arabia win against Iran?” the delicate relationship between the US, Saudi Arabia and Iran is discussed with 3 panellists. The moderator wanted answers in the context of “the US is almost at a tipping point, is almost energy independent..”

Doomsday Clock hands remain unchanged, despite Iran deal and Paris talks (PBD)

In addition to a news event at the National Press Club in Washington, DC, the Doomsday Clock also was unveiled by a panel at Stanford University in California featuring: Jerry Brown, Governor of the State of California; George P. Shultz, Thomas W. and Susan B. Ford distinguished fellow, Hoover Institution, and former U.S. Secretary of State; and William J. Perry, senior fellow, Freeman Spogli Institute, and former U.S. Secretary of Defense.

Russia May Ban Corn And Soybeans (richcabot)

The Russian agency says it notified US authorities on Monday to halt exports of corn contaminated with dry rot to Russia. The agency cites health reasons for the measures “especially in conditions of import replacement of quarantined goods.”

Gov. Snyder lied: Flint water switch was not about saving money, records show (richcabot)

The offer by DWSD raises serious questions about whether Gov. Rick Snyder was lying when he insisted the water switch was motivated by saving money for Flint, which was under the control of a state emergency manager.

Why Big Blizzards In Winter Don’t Disprove Global Warming (richcabot)

Seriously, though, please take this superstorm seriously. As meteorologist Paul Douglas notes, “The Washington D.C. office of the National Weather Service issued a Blizzard Watch for the first time since 1986.” Besides upwards of two feet of snow and high winds over a 36-hour period, coastal regions can also expect some record storm surges.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/27/16

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

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saxplayer00o1
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PBOC May Buy 215 Tons of Gold This Year, Barclays Forecasts

PBOC May Buy 215 Tons of Gold This Year, Barclays Forecasts

Bloomberg - ‎11 hours ago‎
China will press on with gold purchases this year and the central bank will probably scoop up more than 200 metric tons as the country seeks to diversify its reserves, according to an estimate from Barclays Plc. Bullion purchases by the People's Bank ...

China's central bank makes massive cash infusion

MarketWatch-12 hours ago
SHANGHAI — China's central bank is putting the largest amount of cash into the ... The central bank provided 440 billion yuan via similar tools Tuesday, the first ...
 

Investors cast about for next possible central bank life raft

Financial Times-3 hours ago
But in central bank terms there is one to go after the US Federal Reserve's moderate stance on Wednesday, as well as its equivocation on the markets drama, ...

Saudi central bank net foreign assets drop 3.1 pct m/m in December

Reuters-56 minutes ago
The central bank, which acts as Saudi Arabia's sovereign wealth fund, has been drawing down its assets to cover a huge state budget deficit caused by low oil ...

Saudi December Net Foreign Assets Drop More Than $19 Billion
Bloomberg-1 hour ago

Brazil central govt' posts deficit of 115 bln reais in 2015

Reuters-3 hours ago
The central government account, which covers federal ministries, the central bank and social security, had a primary deficit of 60.727 billion reais in December, ...

Bradesco's Provisions for Bad Loans Surge 27%, Forecast Worsens

Bloomberg-2 hours ago
The set-aside for soured debt increased to 4.19 billion reais ($1 billion) in the fourth quarter from 3.31 billion reais a year earlier, Osasco, Brazil-based Bradesco ...

Malaysia Trims 2016 Growth Forecast to 4%-4.5%

Bloomberg - ‎11 hours ago‎
Inflation is expected to be 2.5 percent to 3.5 percent this year, central bank Governor Zeti Akhtar Aziz said Thursday, higher than an October forecast of 2 percent to 3 percent. "The actual delta to the economy depends how much is being spent by ...

The $29 Trillion Corporate Debt Hangover That Could Spark a ...

Bloomberg-15 hours ago
Pooled together into a single snapshot, the data points show how the seven-year-old global growth model based on cheap credit from central banks is running ...

Venezuelan president says economy shrank 5 percent in 2015

Reuters UK-17 hours ago
The South American OPEC member's economy contracted 3.9 percent in 2014, according to central bank figures, and is projected to shrink further this year.

UK's current financial crisis plan 'won't work in next downturn'

Telegraph.co.uk-21 hours ago
UK policymakers must fundamentally rethink the way they fight crises as central banks run out of ammunition to deal with the next downturn, a think-tank has ...

Southern Africa's Food Crisis in Numbers

AllAfrica.com-6 hours ago
And yet its central bank has released only $75,000 for drought relief. Namibia. The 2015 maize crop was 44 percent lower than 2014's (above-average) output.

Big Dutch pension funds warn of possible cuts in 2017

DutchNews.nl-7 hours ago
old couple pensioners age The Netherlands' two biggest pension funds may have to cut pensions next year because their assets have fallen below central bank ...

Italy's Banking Woes Seen Dogging Renzi After Bad-Loan Deal

Bloomberg-12 hours ago
“The deal may help banks to offload part of their bad debt, but for sure doesn't ... According to Eurostat, Italy's public debt mountain was 2.19 trillion euros as of ...

Italy's bank stocks slide on loan concerns

Financial Times-31 minutes ago
The Italian approach — which does not buy debt with public funds — relies on ... with a government guarantee linked to credit default swaps on similar Italian ...

Russia Calls Stalemate With Bond Buyers Pushing for Higher Yield

Bloomberg-3 hours ago
January's issuance slump risks making Russia's 1 trillion-ruble 2016 sales target harder ... Raiffeisen Bank International AG turned "more bearish" on OFZ debt ...

Market meltdown hits company bond sales

Irish Examiner-14 hours ago
About $329 billion (€303.3bn) of debt has been issued so far this month, the least for a ... Bond investors who gobbled up $29 trillion of corporate debt since the ...

Delayed Chicago school bond sale tainted by bankruptcy talk

Reuters - ‎20 hours ago‎
The nation's third-largest public school system is struggling with a structural budget deficit of at least $1 billion and cash-flow that is dependent on borrowing. Chicago Mayor Rahm Emanuel, who controls the schools, ... Chicago Board of Education's ...

No new public development dollars until Jax pension debt deal is ...

WOKV-17 hours ago
As Jacksonville's Mayor fights for his proposed fix for paying down the City's $2.6 billion pension debt, that's the focus, and development plans will be pushed to ...

Jacksonville leaders skeptical of $1 billion asking price for school ...

Florida Times-Union-18 hours ago
It shows its age and costs too much to repair. ... the Legislature's permission to levy a half-cent sales tax to pay off $2.6 billion in unfunded pension liabilities.

Kuwait projects record deficit sharp decline in oil

Ennahar - ‎2 hours ago‎
Revenues were projected at 7.4 billion dinars, of which oil income is estimated at $19.1 billion or just 78 percent of the public revenues; whereas, in the past, income from oil contributed more than 94 percent of revenues in the Gulf emirate, before ...
 

Illinois budget fix: Just don't pay the bills

CNBC - ‎22 hours ago‎
Some $1.3 billion in funding for state elementary and secondary schools is on hold, according to Moody's. Faced with a $1.1 billion deficit, the Chicago public school system laid off more than 200 administrators and faces further layoffs this year. The ...

State budget pain worsens as oil price slides (NM)

Las Cruces Sun-News - ‎13 hours ago‎
The revised general fund forecast calls for just $30 million in new money above current spending of $6.2 billion — down from the December estimate when lawmakers were planning on $232 million for employee raises, expanded programs in public safety and ...

Sale of public assets in 2015 was biggest in uk history

Daily Mail - ‎16 hours ago‎
More than £1 billion was raised by the sale of the Government's remaining shares in Royal Mail, while a further £800 million came from the sale of a 40% stake in Eurostar. Welcoming the figures, TaxPayers' Alliance chief executive Jonathan Isaby said ...

Kentucky governor proposes $1.1 billion in pension fund contributions over 2 years

Pensions & Investments - ‎38 minutes ago‎
They face more than $30 billion in unfunded liabilities combined. In December, KRS lowered its assumed the assumed rate of return for two of its five underlying pension funds — the Kentucky Employees Retirement System non-hazardous and the State ...

Investment gains for NJ's pension fund fell sharply last fiscal year

NorthJersey.com - ‎17 hours ago‎
Investment gains for New Jersey's $79 billion pension fund fell sharply in the fiscal year that ended June 30, and those pension investments are in negative territory so far this year, state officials reported Wednesday. Christie administration ...

 

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
Deutsche Bank reported a loss of $7.4 billion in 2015

Deutsche Bank faces accusations of misconduct in foreign currency trading, which have led to lawsuits by clients who claim they lost money as a result.

The bank has already paid billions in fines and settlements related to accusations that it colluded with other banks to fix benchmark interest rates, and that it violated international sanctions against countries like Iran.

http://www.nytimes.com/2016/01/29/business/dealbook/deutsche-bank-loss-2015.html

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
$29 Trillion Corporate Debt Hangover - Could Spark a Recession

Duplicated post

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4240
BOJ shocks market with move to negative interest rates

Dollar soars after BOJ shocks market with move to negative interest rates

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2892
317 on the Baltic Dry

Baltic Dry hits 317 (Hellenic Shipping News)

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