Archive for the ‘Economics’ Category

$400 Billion Gas Deal Shows Russia Looking To China To Replace Western Money…

Posted on 2014 05, 24 by rockingjude

The news that China and Russia have signed a $400 billion deal through which Gazprom will supply China National Petroleum Corp with 30 years of natural gas is the clearest illustration yet that Russia will be looking east, not west, for international funding.

Last week, in Will China Save Russia With Investment?, I reported a series of new Russia-China deals were about to be launched by the two countries’ sovereign wealth funds, the Russian Direct Investment Fund and China Investment Corporation. Those deals have since been announced: they involve Vcanland, a developer of tourism infrastructure and senior living communities; the first ever railway bridge over the Amur River on the Russia-China border; and logistics services investment.In dollar terms, they may have involved as much as $1 billion of investment, but while the number itself is insignificant compared to the outflows Russia is experiencing, the trend is very important – and is underlined by the new gas deal.

Russia’s central bank says that $63.7 billion of money left Russia in capital outflows in the first quarter of this year; the IMF is forecasting $100 billion of outflows for the full year. Others think those numbers conservative. Russian access to the international capital markets has dried up, and with vast infrastructure needs – just think of the FIFA World Cup, coming up in 2018 – that is a problem. So what to do? It can’t get those sorts of portfolio flows anywhere else, but it can bolster its foreign direct investment, or other forms of international trade. And China, which does not share the west’s sense of outrage about Russia’s behaviour in Ukraine, is the perfect candidate.gaspipe

Celente: Death Spiral Continues – Unprecedented!…

Posted on 2014 05, 23 by rockingjude

 

Vietnam PM says considering legal action against China over disputed waters…

Posted on 2014 05, 22 by rockingjude
English: Prime minister of Vietnam Nguyễn Tấn Dũng

English: Prime minister of Vietnam Nguyễn Tấn Dũng (Photo credit: Wikipedia)

 

CREDIT: REUTERS/EDUARDO MUNOZ

(Reuters) – Vietnamese Prime Minister Nguyen Tan Dung said his government was considering various “defense options” against China, including legal action, following the deployment of a Chinese oil rig to waters in the South China Sea that Hanoi also claims.

 

Dung’s comments, given in a written response to questions from Reuters, were the first time he has suggested Vietnam would take legal measures, and drew an angry response from China, which insisted the rig was in its sovereign waters.

“Vietnam is considering various defense options, including legal actions in accordance with international law,” Dung said in an email sent late on Wednesday, while on a visit to Manila. He did not elaborate on the other options being considered.

“I wish to underscore that Vietnam will resolutely defend its sovereignty and legitimate interests because territorial sovereignty, including sovereignty of its maritime zones and islands, is sacred,” he said.

China accused Vietnam of stoking regional tensions.

REALIST NEWS – Russia DUMPS 20% of its US Treasuries…

Posted on 2014 05, 20 by rockingjude

Russia and China wrestle over multibillion-dollar gas deal…

Posted on 2014 05, 20 by rockingjude

Russia Holds “De-Dollarization Meeting”: China, Iran Willing To Drop US Dollar From Bilateral Trade

Posted on 2014 05, 20 by rockingjude
Russian currency: The Ruble

Russian currency: The Ruble (Photo credit: Wikipedia)

Tyler Durden on 05/14/2014 10:47 -0400

 

That Russia has been pushing for trade arrangements that minimize the participation (and influence) of the US dollar ever since the onset of the Ukraine crisis (and before) is no secret: this has been covered extensively on these pages before (see Gazprom Prepares “Symbolic” Bond Issue In Chinese YuanPetrodollar Alert: Putin Prepares To Announce “Holy Grail” Gas Deal With ChinaRussia And China About To Sign “Holy Grail” Gas Deal40 Central Banks Are Betting This Will Be The Next Reserve Currency; From the Petrodollar to the Gas-o-yuan and so on).

But until now much of this was in the realm of hearsay and general wishful thinking. After all, surely it is “ridiculous” that a country can seriously contemplate to exist outside the ideological and religious confines of the Petrodollar… because if one can do it, all can do it, and next thing you know the US has hyperinflation, social collapse, civil war and all those other features prominently featured in other socialist banana republics like Venezuela which alas do not have a global reserve currency to kick around.

Or so the Keynesian economists, aka tenured priests of said Petrodollar religion, would demand that the world believe.

However, as much as it may trouble the statists to read, Russia is actively pushing on with plans to put the US dollar in the rearview mirror and replace it with a dollar-free system. Or, as it is called in Russia, a “de-dollarized” world.

Voice of Russia reports citing Russian press sources that the country’s Ministry of Finance is ready to greenlight a plan to radically increase the role of the Russian ruble in export operations while reducing the share of dollar-denominated transactions. Governmental sources believe that the Russian banking sector is “ready to handle the increased number of ruble-denominated transactions”.

According to the Prime news agency, on April 24th the government organized a special meeting dedicated to finding a solution for getting rid of the US dollar in Russian export operationsTop level experts from the energy sector, banks and governmental agencies were summoned and a number of measures were proposed as a response for American sanctions against Russia.

Bank Of America: “It’s Getting Frothy, Man”…

Posted on 2013 11, 02 by rockingjude

Submitted by Tyler Durden on 11/01/2013 12:09 -0400 When even Bank of America’s Michael Hartnett has a note titled “It’s getting frothy, man“, and joins such other bubble-warners as JPM, Bill Gross, Larry Fink, and David Einhorn, one can be absolutely positive that the Fed will do… absolutely nothing. From Bank of America:

It’s Getting Frothy, Man!   Equity funds: 3rd straight week of big inflows ($12.4bn); YTD, equities have seen $231bn inflows versus a mere $16bn inflows to bond funds (Chart 1)

Frothy man 1_0Global Flow Trading Rule: another $8-9bn of inflows to long-only equity funds over next 2 weeks would trigger a contrarian “sell” signal (Chart 2). Bullish investor flows dovetails with our Bull & Bear Index, which is on course to trigger a cautionary riskoff signal in mid-November    Frothy man_0 Crowded trades: this week investors continue to funnel money into Europe, Japan, HY and Floating-rate debt
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China’s Gold Coup d’Etat…

Posted on 2013 11, 02 by rockingjude

What it means for global gold owners

Special Report

Michael J. Kosares – GoldSeek.com

Editor’s Note: This issue of Review & Outlook is based on a series of posts I made at the USAGOLD blog over the course of the past month. China has imported an unprecedented amount of gold bullion in 2013. So much so, that if it were to maintain the current pace, it would import nearly the equivalent of global production for the year. When the news first filtered out of China on the amounts of gold being mobilized through its Shanghai Gold Exchange, the numbers seemed too large to be believed. The obvious question became “What is the source of this extraordinary amount of gold bullion?” It was only in October when Reuters reported that much of that gold had been shipped from London-based exchange traded funds to Switzerland for refining into smaller Asia-friendly bars and then on to Hong Kong and Shanghai that the full picture came into focus and the extraordinary numbers gained credibility.

Below I detail how the China gold trade mechanism works, the reasons for it, and why China’s interest in gold is likely to remain of paramount importance to the global market for many years to come. I have updated the original statistics from recently posted reports at the Koos Jansen website based in the Netherlands — a research source specializing in the China gold trade. To stay abreast of the China situation as well as other developments in the gold market on a daily basis, I invite you to visit our blog page linked above.

Part One – The London-Zurich-Hong Kong-Shanghai gold conduit 

According to a recent Reuters report, the United Kingdom’s gold exports to Switzerland jumped from 85 tonnes to 1,016 tonnes in the first eight months of 2013 — a twelve times increase. Some bullion market watchers attribute the huge increase to withdrawals or sales from exchange traded funds (ETFs) — an explanation that covers only half the story…….if that. When one learns where this gold ended up and why it went there, the true importance of this unusually large deployment begins to take shape.

Expendable People: Economics, a “Murderous Science”…

Posted on 2013 11, 01 by rockingjude
THE UNITED STATES OF AMERICA - NARA - 515673

THE UNITED STATES OF AMERICA – NARA – 515673 (Photo credit: Wikipedia)

 

 http://www.globalresearch.ca/expendable-people-economics-a-murderous-science/5355985

Global Research, October 29, 2013

The English who settled America brought English culture with them. The colonies were nothing but little Englands. When the colonists revolted, they were merely trying to get free of the tyrannical English monarchy, not trying to change the culture. They were perfectly happy with the English way of life. They carried on its practices and adopted the English system of common law.

That sixteenth century culture is alive and well in America today and is why America is in many respects a backward nation. Americans are living 500 years behind the times.

One would like to believe that human institutions exist to enhance the lives of people, but there is very little evidence to support that view. If enhancing the lives of people is not the purpose of human institutions, what is? The American Constitution lists six goals the founders expected the nation to accomplish:

We the People of the United States, in Order to (1) form a more perfect Union, (2) establish Justice, (3) insure domestic Tranquility, (4) provide for the common defense, (5) promote the general Welfare, and (6) secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

Unfortunately, no American government has ever tried to govern in a way that seeks to attain these goals. So the American government is either an unconstitutional, failed state or else the framers of the Constitution must be thought of as having engaged in unrealistic political propaganda. At any rate, the American government is not what the Constitution makes it out to be. The question is why? The answer is the stupid political economy!

The English who settled America brought English culture with them. The colonies were nothing but little Englands. When the colonists revolted, they were merely trying to get free of the tyrannical English monarchy, not trying to change the culture. They were perfectly happy with the English way of strife. They carried on its practices and adopted the English system of common law.

That sixteenth century culture is alive and well in America today and is why America is in many respects a backward nation. Americans are living 500 years behind the times.

The Speculative Endgame: The Government “Shutdown” and “Debt Default”, A Multibillion Bonanza for Wall Street…

Posted on 2013 10, 25 by rockingjude
Global Research, October 16, 2013

A wave of speculative activity is sweeping major markets.

The uncertainty regarding the shutdown and “debt default” constitutes a golden opportunity for “institutional speculators”. Those who have reliable “inside information” regarding the complex outcome of the legislative process are slated to make billions of dollars in windfall gains.

Speculative Bonanza

Several overlapping political and economic agendas are unfolding. In a previous article, we examined the debt default saga in relation to the eventual privatization of important components of the federal State system.

While Wall Street exerts a decisive influence on policy and legislation pertaining to the government shutdown, these same major financial institutions also control the movement of currency markets, commodity and stock markets through large scale operations in derivative trade.

Most of the key actors in the US Congress and the Senate involved in the shutdown debate are controlled by powerful corporate lobby groups acting directly or indirectly on behalf of Wall Street. Major interests on Wall Street are not only in a position to influence the results of the Congressional process, they also have “inside information” or prior knowledge of the chronology and outcome of the government shutdown impasse.

They are slated to make billions of dollars in windfall profits in speculative activities which are “secure” assuming that they are in a position to exert their influence on relevant policy outcomes.

It should be noted, however, that there are important divisions both within the US Congress as well as within the financial establishment. The latter are marked by the confrontation and rivalry of major banking conglomerates.

These divisions will have an impact on speculative movements and counter movements in the stock, money and commodity markets. What we are dealing with is “financial warfare”. The latter is by no means limited to Wall Street, Chinese, Russian and Japanese financial institutions (among others) will also be involved in the speculative endgame.

Speculative movements based on inside information, therefore, could potentially go in different directions. What market outcomes are being sought by rival banking institutions? Having inside information on the actions of major banking competitors is an important element in the waging of major speculative operations.


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