IEHI Feed: The Hedge Fund Implode-o-Meter http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-54841 Sun, 31 Aug 2014 15:07:39 GMT Why Won't the Miners Fight Back? http://hf-implode.com/viewnews/2014-08-31_WhyWonttheMinersFightBack.html iehi-feed-54836 Sun, 31 Aug 2014 02:33:50 GMT U.K. Wants EU to Block Russia From SWIFT Banking Network http://hf-implode.com/viewnews/2014-08-30_UKWantsEUtoBlockRussiaFromSWIFTBankingNetwork.html iehi-feed-54831 Fri, 29 Aug 2014 17:40:26 GMT Falling Housing Prices Are Causing Violent Protests In China http://hf-implode.com/viewnews/2014-08-29_FallingHousingPricesAreCausingViolentProtestsInChina.html iehi-feed-54828 Fri, 29 Aug 2014 17:32:07 GMT The Buyback Party Is Over; Market Running on Fumes - Albert Edwards http://hf-implode.com/viewnews/2014-08-29_TheBuybackPartyIsOverMarketRunningonFumesAlbertEdwards.html iehi-feed-54824 Thu, 28 Aug 2014 17:09:13 GMT How The Coming Silver Bubble Will Develop - Ted Butler http://hf-implode.com/viewnews/2014-08-28_HowTheComingSilverBubbleWillDevelopTedButler.html iehi-feed-54823 Thu, 28 Aug 2014 17:06:43 GMT British Columbia, Ontario to Cooperate on Yuan Trading Hub http://hf-implode.com/viewnews/2014-08-28_BritishColumbiaOntariotoCooperateonYuanTradingHub.html iehi-feed-54822 Thu, 28 Aug 2014 15:36:42 GMT One World, One Bank, One Currency - Rickards http://hf-implode.com/viewnews/2014-08-28_OneWorldOneBankOneCurrencyRickards.html Leading the way, says Rickards, will be the International Monetary Fund. "The task of re-liquefying the world will fall to the IMF because the IMF will have the only clean balance sheet left among official institutions. The IMF will rise to the occasion with a towering issuance of SDRs, and this monetary operation will effectively end the dollar's role as the leading reserve currency."

...

A 42-page IMF paper published in January 2011 with the innocuous-sounding title "Enhancing International Monetary Stability -- A Role for the SDR?" -- lays out what Rickards describes. "A multiyear, multistep plan to position the SDR as the leading global reserve asset. The study recommends increasing the SDR supply to make them liquid and more attractive to potential private-sector market participants such as Goldman Sachs and Citigroup... The IMF study recommends that the SDR bond market replicate the infrastructure of the U.S. Treasury market, with hedging, financing, settlement and clearance mechanisms substantially similar to those used to support trading in Treasury securities today."

...

The genius of the scheme is that the SDRs would create inflation... but ordinary people wouldn't know SDRs were causing it. "Any inflation caused by massive SDR issuance would not be immediately apparent to citizens. The inflation would show up eventually in dollars, yen and euros at the gas pump or the grocery, but national central banks could deny responsibility with ease and point a finger at the IMF."

]]>
iehi-feed-54820 Thu, 28 Aug 2014 13:01:17 GMT Lars Schall - Interview With Ambrose Evans-Pritchard http://hf-implode.com/viewnews/2014-08-28_LarsSchallInterviewWithAmbroseEvansPritchard.html iehi-feed-54809 Wed, 27 Aug 2014 15:24:37 GMT James McShirley - The MOAMOPE (Silver Being Manipulated at 6pm, Too) http://hf-implode.com/viewnews/2014-08-27_JamesMcShirleyTheMOAMOPESilverBeingManipulatedat6pmToo.html iehi-feed-54803 Tue, 26 Aug 2014 12:49:49 GMT Goldman Sachs to pay US$3.15b to settle mortgage case http://hf-implode.com/viewnews/2014-08-26_GoldmanSachstopayUS315btosettlemortgagecase.html Goldman Sachs will pay US$3.15 billion (S$3.94 billion) to resolve claims it misled Fannie Mae and Freddie Mac on mortgage-linked securities it sold them before the US housing bust, officials said.

The Federal Housing Finance Agency (FHFA), the conservator for Fannie and Freddie, which were rescued by the government during the 2008 crisis, said that Goldman will repurchase the securities it sold to the two effectively government-backed mortgage giants between 2005 and 2007.

Goldman said the agreement will resolve "all" federal and state securities claims for mortgage-backed securities purchased by Freddie and Fannie over the period.

]]>
iehi-feed-54802 Tue, 26 Aug 2014 03:06:10 GMT Hussman: Broken Links - Fed Policy and the Growing Gap Between Wall Street and Main Street http://hf-implode.com/viewnews/2014-08-25_HussmanBrokenLinksFedPolicyandtheGrowingGapBetweenWallStreetandM.html ... what sort of decision does the Fed's policy of suppressing interest rates encourage? Only those where the cost of funds is the primary cost of doing business: financial transactions. A few years ago, housing could be included as a major beneficiary of Fed-induced speculation not only among financial institutions but among ordinary investors. But that ship has sailed, crashed into the glacier, and sunk to the bottom of the deep blue sea. So what we now have is a financial sector amped up on more than four trillion tablets of amphetamine, and a real economic sector that remains at year-to-year growth rates that have historically marked the border between expansion and recession.

... Several factors contribute to the broad sense that something in the economy is not right despite exuberant financial markets and a lower rate of unemployment. In our view, the primary factor is two decades of Fed-encouraged misallocation of capital to speculative uses, coupled with the crash of two bubbles (and we suspect a third on the way)

...

The Federal Reserve's prevailing view of the world seems to be that a) QE lowers interest rates, b) lower interest rates stimulate jobs and economic activity, c) the only risk from QE will be at the point when unemployment is low enough to trigger inflation, and d) the Fed can safely encourage years of yield-seeking speculation -- of the same sort that produced the worst economic collapse since the Depression -- on the belief that this time is different. From the foregoing discussion, it should be clear that this chain of cause and effect is a very mixed bag of fact and fiction.

]]>
iehi-feed-54801 Mon, 25 Aug 2014 16:23:52 GMT Doug Noland - Reflexivity, Bubbles and Profits http://hf-implode.com/viewnews/2014-08-25_DougNolandReflexivityBubblesandProfits.html iehi-feed-54797 Sun, 24 Aug 2014 16:09:23 GMT Central bankers struggling to say no to easy-money policies http://hf-implode.com/viewnews/2014-08-24_Centralbankersstrugglingtosaynotoeasymoneypolicies.html iehi-feed-54795 Sun, 24 Aug 2014 13:22:30 GMT Visualizing the Vanishing Money Velocity Vortex http://hf-implode.com/viewnews/2014-08-24_VisualizingtheVanishingMoneyVelocityVortex.html iehi-feed-54792 Sat, 23 Aug 2014 15:03:45 GMT China gold exchange gains traction as yuan reforms stir interest http://hf-implode.com/viewnews/2014-08-23_Chinagoldexchangegainstractionasyuanreformsstirinterest.html iehi-feed-54788 Sat, 23 Aug 2014 14:49:28 GMT Argentina accuses U.S. Judge Griesa of imperialist attitude http://hf-implode.com/viewnews/2014-08-23_ArgentinaaccusesUSJudgeGriesaofimperialistattitude.html iehi-feed-54784 Fri, 22 Aug 2014 20:08:43 GMT Draghi Says ECB Ready to Do More http://hf-implode.com/viewnews/2014-08-22_DraghiSaysECBReadytoDoMore.html iehi-feed-54782 Fri, 22 Aug 2014 17:53:48 GMT Yellen Facing Hard Call on When Labor Market Has Healed http://hf-implode.com/viewnews/2014-08-22_YellenFacingHardCallonWhenLaborMarketHasHealed.html In her remarks, Yellen repeated the FOMC statement that "underutilization of labor resources still remains significant." Much of her 16-page speech walked through measures of labor-market "slack" that Yellen uses -- such as the number of people employed part-time who prefer full-time work -- and how much of that slack might be related to weak demand as opposed to longer-term trends...

Because measuring slack is an inexact science, the debate on the committee is likely to intensify if labor markets continue to improve... Other gauges Yellen watches continue to show weakness. The labor force participation rate, at 62.9 percent last month, is near the lowest since 1978. Average hourly earnings are 2 percent higher than a year ago, barely outpacing the 1.6 percent annual gain in the Fed's main inflation gauge.

]]>
iehi-feed-54781 Fri, 22 Aug 2014 16:39:17 GMT Alasdair MacLeod Talks De-Dollarization; Eastern Takeover of Gold Trading http://hf-implode.com/viewnews/2014-08-22_AlasdairMacLeodTalksDeDollarizationEasternTakeoverofGoldTrading.html iehi-feed-54777 Fri, 22 Aug 2014 14:50:54 GMT Foreigners Dump Record Amount of US Securities, But Who the Heck Is Still Buying? http://hf-implode.com/viewnews/2014-08-22_ForeignersDumpRecordAmountofUSSecuritiesButWhotheHeckIsStillBuyi.html