ZOCHOWSKI » May 6th, 2015, 9:17 am MORNING "FTS"
FIRST "FROSTY" THANKS FOR THE NOTE TAKING!!!!
I GOT SOME THEORIES ON WHAT THE CC WAS BOUT LAST NIGHT..........
PROBLY NO ONE GONNA WANT TO READ THE FULL GAMBIT OF MY THOUGHTS, LOL MOST THINK THIS OLE TURKEY IS FULL OF HOT AIR, LOL
JUST CAUSE I LOOK LIKE A FEATHERED BALLOON DONT MEAN MY SKULL IS FULL OF HOT AIR TOO...............LOL LOL
LETS JUST SAY, BANKS N TREASURY N FEDS PRETTY MUCH WORK TOGETHER BUT DONT WANT IT TOO PUBLICIZED.............LOL LOL
IF MY MEMORY SERVES ME CORRECTLY,
AN IRA IS "TAX-DEFERRED" ACCOUNT..............
YOU CAN PUT $$$ IN, HOWEVER, TO TAKE $$ OUT YOU WILL GET PENALIZED UNLESS YOU HAVE REACHED A SPECIFIC AGE OR A MATURITY DATE........
ANYWAY, JUST SOMETHING TO CONSIDER FOR THOSE THAT ARE LOOKING FOR ALTERNATIVES.......
Walkingstick » May 6th, 2015, 6:52 am
World Bank: We will give a loan for Iraq let loose during the 35-year-old
Tomorrow Press / Baghdad: detecting the World Bank, on Wednesday, he will provide a loan to Iraq repaid over 35 years at an interest rate well, and expected to contribute to the loan to help Iraq financially.
He said the World Bank for the Middle East adviser and Asia charity Shban for "tomorrow Press," that " World Bank seeks to help Iraq in its current crisis, which caused big losses to him, "and expressed his hope that" the Bank provides loans that will be of great financial and economic benefit.
" He added that "the Bank is considering providing a loan for Iraq is repaid in 35 years with five-year grace Additional interest rate of up to only 1.5%, making it one of the soft loans in terms of the conditions and facilities compared to what provided by banks and private institutions.
" He pointed out that "the loan will be devoted to the reconstruction and provision of services to the liberated areas and encourage investors to work in Iraq after the availability of these loans," expected to "That will be the launch of the loan by next July and WAP". Shban and stressed that "the loan would help Iraq to cross its financial crisis this year and the next two years could be played by and recover in record time." LINK
Walkingstick » May 6th, 2015, 8:52 am
US Republicans pass $3.8 trillion 2016 budget
AFP By Michael Mathes
11 hours ago
jdtolle » May 6th, 2015, Think you can
The world is changed by people who think they can. What do you think you can do?
Just thinking you can succeed does not make you successful. Yet if you don’t think you can, you won’t.
Decide that you can do it. Then set about to prove yourself right.
Many may doubt you, but you never have to focus on those doubts. Focus instead on your own confidence.
Think you can, and then act on that thought. You will make progress, and that is good.
Think you can, and push yourself to find a way. Think you can, and do what you think you can.
Ralph Marston Wishing All a safe and blessed day JDT
P.S. It is surprising what a man can do when he has to, and how little most men will do when they don't have to.-- Walter Linn
Walkingstick » May 6th, 2015, 9:56 am
Opinion: Blame the next global financial crisis on the U.S. dollar
Published: May 6, 2015 5:01 a.m. ET
The biggest threat to stocks and stability is in your wallet
Since 2009, the key driver of financial markets has been liquidity. All asset prices have been affected by the central banks’ attempted reflation. According to one estimate, over 80% of equity prices are supported in some way by quantitative easing policies. Today, as much as $200-250 billion in new liquidity each quarter may be needed to simply maintain asset prices.
But now the world is entering a period where monetary policy will diverge between central banks. This has implications for both markets and asset prices.
The Federal Reserve is scaling back, terminating purchases of government bonds and mortgage backed securities (“MBS”), which at their peak provided more than $1 trillion a year in new funds to markets. While new purchases have ceased, the Fed does not plan to sell its portfolio of around $4 trillion of securities. It will continue to reinvest principal payments from its holdings of MBS and roll over maturing Treasury bonds.
The combination of maintaining its balance sheet at sizable levels and low official interest rates will keep financial conditions loose. But the Fed will not add significantly to liquidity.
The withdrawal of Fed support will be offset, many have assumed, by the European Central Bank (“ECB”) and Bank of Japan (“BoJ”).
The ECB plans to expand its balance sheet by over $ 1 trillion over the next 18 months, through a mixture of purchases of government bonds, asset backed securities, and loans to banks. Meanwhile, based on its current plans, the BoJ intends to purchase Japanese government bonds at an annual rate totaling more than $700 billion. At 16% of gross domestic product, the Japanese program is much larger than the Fed’s QE measures, adjusted for relative size of the two economies.
The balance sheets of the BoJ and ECB should expand by a total of a minimum of $2.5 trillion by the end of 2016 at current exchange rates. This is comparable to the $3.6 trillion expansion in the Fed’s balance sheet since 2008.
A wild card is the People’s Bank of China (“PBOC”), which is also loosening money supply. But this may be to merely mitigate the sharp tightening in liquidity resulting from the increasing controls on China’s shadow banking system.
But there are differences between the liquidity programs. The Fed and BoJ primarily purchase government bonds. The ECB also lends to banks. The PBoC acts almost exclusively through the banking system.
It’s all about the benjamins
The crucial difference between the actions of individual central banks is that the ECB, BoJ or PBOC cannot directly supply the U.S. dollars crucial to global markets.
The importance of dollar liquidity is driven by several factors. First, the dollar DXY, -0.81% remains the most important global reserve currency. The U.S. debt markets, at around $60 trillion, are the largest in the world — bigger than Europe and Japan combined. Second, the dollar plays a crucial benchmark role, with a number of currencies formally or de facto linked to the dollar. U.S. rates influence the pricing of assets globally. Third, the largest amount of foreign currency debt, especially that issued by emerging market borrowers, is denominated in dollars.
According to the Bank of International Settlements, as of the end September 2014, U.S. dollar credit to non-bank borrowers outside the U.S. totalled $9.2 trillion, comprising 46% debt securities and 54% bank loans. The total has increased over 50% since end-2009. Emerging market borrowers have borrowed $5.7 trillion in foreign currency, comprising $2.6 trillion in securities and$3.1 trillion in bank loans. Around 75% to 80% of this debt is estimated to be dollar denominated.
Cross-border borrowings, mostly in U.S. dollars, by Chinese banks and companies have reached $1.1 trillion. It is around $450 billion for Brazil, $380 billion for Mexico and over $700 billion for Russia. It is unclear what proportion of these liabilities is protected against currency risk by U.S. dollar income or derivative hedges.
Tightening of available dollar liquidity, a rising U.S. dollar and anticipated increases in U.S. interest rates will result in losses on these borrowings. In turn, this will create repayment difficulties for over-indebted borrowers, triggering a new financial crisis. The risk is exacerbated by domestic weaknesses in many emerging markets.
Low commodity prices compound the problems. It reduces the dollar-denominated revenue available to meet debt obligations of exporters, increasing potential exposures to currency fluctuations.
It also reduces global dollar liquidity. Since the first oil shock, petrodollar recycling — the surplus revenues from oil exporters — has been an essential component of global capital flows. A prolonged period of low prices will reduce available liquidity, pushing up the value of the dollar and increasing interest costs, affecting the ability of borrowers to gain access to needed dollars. In the first few months of 2015, for example, Saudi Arabia’s large foreign exchange reserves fell by an unprecedented 15%, consistent with tightening liquidity.
The position is eerily similar to 1997-98, when falling commodity prices, especially oil, a stronger dollar, rising U.S. interest rates and emerging market debt and weaknesses led to the Asian monetary crisis, the Russian default, and the collapse of hedge-fund Long Term Capital Management. Now as then, the risk to financial stability and global asset prices is rapidly increasing.
ClassyONE May 6, 2015 IMF To Make Huge Announcement October 20 Part 2
Kind of makes sense to me
Here's how I see it all playing out...
The IMF's Private Meeting... Revealed
Twice a decade, the executive board of the IMF meets to reassess the world's major reserve currencies.
We haven't seen a huge change to the reserve currency system in over 35 years.
And on October 20th, I believe the world will learn about a NEW reserve currency.
That announcement will set off a chain reaction throughout the financial markets.
Gonna retire > ClassyONE hat''s when they will "add" China to the SDR basket of reserve currencies.
DesertDawgWA > ClassyONE China will be announced as the New World Reserve Currency!!!
Topic: Our greatest glory is not in never falling, but in rising every time we fall. Confucius
Q; The question is...How close are we to that tipping point?]
BGG [as far as Iraq is concerned - very.]
Q:[very...is that closer than soon?]
Poppy3 ...I WAS LISTENING WHEN ABADI ASKED THE PEOPLE TO BE PATIENT AND ALL WOULD BE DONE BY JUNE. I THINK HE MEANS REFORM WILL BE COMPLETE THIS MONTH. FINE BY ME.
FireStarter: So if the rv has happened and Iraq is doing international trade why don't we see it?
CODreamer: Firestarter because it's not 'officially' international
Iko Ward: Once again the Dong did not poll on Forex. Thats 0.00 movement for 7 days.....you tell me.
ff1smitty :...iko is that a good thing?
Iko Ward : .Ff...thats a very good, unprecedented thing.
Ingenious1: Iko - so the VND is waiting also?
CODreamer: Ingenius everything goes when the dinar goes - it's the lynchpin