PBoC refused to inject liquidity into the market
Short-term interbank lending rates surged 200 basis points to an all-time high of almost 8% on Wednesday after the PBoC refused to inject liquidity into the market. “The only explanation is that the central bank wants to send a warning signal to commercial banks and other credit issuers that unchecked credit expansion, particularly through the shadow banking system, will not be accommodated,” says CNC Asset [...]
Today is a national holiday in the United Kingdom and the USA.
Friday’s AM fix was USD 1,385.25, EUR 1,068.95 and GBP 917.81 per ounce.
Gold climbed $5 on Friday and closed at $1,390.25/oz in London and silver closed at 22.482 in NY.
Gold rose 0.45% this morning in quiet European trading with UK and U.S. markets closed for holidays. Silver, platinum and palladium also advanced this morning.
Gold’s gains come on the [...]
Bill Black: Weakness of financial regulators shows you can not “tame the scorpion”.
5 commercial mega-banks continue to trade roughly $300 trillion in unregulated derivatives. In other words unregulated derivatives are 32 times total U.S. deposits and 11,900 times the FDIC’s paltry $25 billion insurance fund.
A month ago we pointed out that even as the Chinese credit bubble – at a record 240% of GDP on a consolidated basis – is now clearly out of control, the far more disturbing aspect of China’s credit-fueled economy is the ever declining boost to economic growth as a result of every incremental dollar created. Indeed, as the economic response to “credit shock” becomes lower and lower, even as the inflationary [...]
It is easier to make money than sense out of China’s banks. These big four state-owned commercial banks are huge profit centres, but many who see vulnerabilities in China’s economy think that these banks are the problem when they actually reflect symptoms of distortions elsewhere. China’s banks are in fact too secure – and their performance could be improved by strengthening competition and breaking up the “too big to [...]
from Zero Hedge:
As of this morning Tim Geithner is no longer Treasury Secretary. And while Tim Geithner’s reign of clueless pandering to the banks has left the US will absolutely disastrous consequences, an outcome that will become clear in time, the most ruinous of his policies is making the banks which were too big to fail to begin with, so big they can neither fail nor be sued, as the recent fiasco surrounding the [...]
Forget Germany, Check Out Turkey’s Central-Bank Gold
by Adrian Ash
Wednesday, 23 January 2012
Now here’s a central bank really putting gold to good use…
AMID the brouhaha over Germany’s gold reserves at the Bundesbank, there’s another central bank using gold actively to bolster its currency and financial stability.
The strategy looks the same – sitting on big stockpiles of the stuff. But the aim differs, because gold is much closer to the everyday financial [...]
Fractional Reserve Banking: The Source of All Evil?
by Paul Tustain
Friday, 11 January 2013
I’m getting very suspicious of anything which regulators think is “safe” collateral…
FRACTIONAL Reserve Banking is not responsible for the bad practice of ‘creating money’, writes Paul Tustain, founder and CEO of BullionVault.
It is a speed limit on money creation, put in place by a Central Bank to stop banks doing too much of what comes naturally to them.
zerohedge.com / By Tyler Durden / January 10, 2013
When people talk about “cash in the bank“, or “money on the sidelines“, the conventional wisdom reverts to an image of inert capital, used by banks to fund loans (as has been the case under fractional reserve banking since time immemorial) sitting in a bank vault or numbered account either physically or electronically, and collecting interest, well, collecting interest in the Old Normal [...]
December 1 , 2012
City of Detroit – Layoffs Coming Feb 2013?
Resolution Copper Mining – up to 400
Update: Clinton Community College NY – 10
Celgard – 40
EnerSys Energy Products – 100
AM General – Confirms Layoffs, About 100?
Update: AT&T – 106 Landline Techs. in CT
City of Steubenville Ohio – 12 Layoff Notices
Cumberland Pharmaceuticals – 1/3 of its Salesforce
U.S. Steel Corp.McKeesport Tubular Plant – 142
Worldwide Flight Services in 51 in Honolulu
Orange Township Ohio – [...]
from Russia Today:
Max Keiser and Stacy Herbert note that the bell has rung for the bond market top as one of the biggest private equity funds in the world is seeking ‘ordinary’ investors to assume their long term interest rate risk. In the second half, Max Keiser talks to Ian Williams of Charteris Treasury Portfolio Managers about his forecast for silver prices to rise five fold in the next 3 three [...]
Is The Largest Weekly Inflow Into Bank Savings Accounts On Record, A Flashing Red Alarm?
When one thinks of America, the word “savings” is likely the last thing to come into a person’s head, for the simple reason that the vast majority of Americans don’t save: recall that in September the personal savings rate dipped to 3.3%, the lowest since 2009 save for one month.
On the surface this makes sense: the average US [...]
The deadline when local commercial banks will be prohibited from mobilizing gold deposits is now just a month and a half away, but the question of how the State Bank of Vietnam will deal with the massive amount of public gold reserves after the ban comes into effect remains unanswered.
On April 29, 2011 the central bank halted gold mobilization at banks, but lifted the ban a year later, ruling that [...]
Data from the European Central Bank shows that outflows from Spanish commercial banks reached €74bn (£59bn) in July, twice the previous monthly record. This brings the total deposit loss over the past year to 10.9pc, replicating the pattern seen in Greece as the crisis spread.
It is unclear how much of the deposit loss is capital flight, either to German banks or other safe-haven assets such as London property. The Bank [...]
From Sober Look:
Here is another reason QE3 will do little to change bank behavior or encourage lending. U.S. commercial banks are awash with liquidity these days, as deposits hit a new high (approaching $9 trillion).
Banks are already struggling to put cash to work. The rate of deposit growth exceeds that of new loan demand and credit approvals. The bottleneck is not the availability of liquidity — there is…
Read full article [...]
by GoldCore Gold Bullion
Russia , Turkey, Ukraine Buy Gold But Bullion Tiny Part Of FX Reserves
Today’s AM fix was USD 1,663.50, EUR 1,325.18 and GBP 1,053.52 per ounce.
Yesterday the London Bullion Market was closed for a national holiday.
Friday’s AM fix was USD 1,666.50, EUR 1,329.16 and GBP 1,051.88 per ounce.
Gold fell $5.90 or 0.35% in New York on Friday and closed at $1,663.90. Silver climbed to $31.241 then retreated but [...]
Buried in the rationale for going to war with Iraq was the idea that the United States would win itself another oil-producing ally in the Middle East.
Why, then, is Iraq helping Iran shirk U.S. sanctions?
According to a recent report by The New York Times, Iran has been able to use Iraq to gain access to the International banking system and U.S. dollars. The two countries have also conspired to smuggle [...]
Think of it this way … LIBOR is the same in Europe as the Prime Rate in the US.
Libor aka the London Inter-Bank Offer Rate.
In the U.S. the FRB (Bernanke and friends) set the Fed Funds Rate and commercial banks set the prime rate. The prime rate does not move (up or down) unless the Fed Funds Rate is changed by the FRB. If the FRB increases (or decreases) the [...]
The Extraordinary Becomes Normal
The lunatics are running the asylum. This is the only conclusion one can come to when considering the nonchalance with which what was once considered an extraordinary policy with a firm ‘exit’ in mind is now propagated as a perfectly normal ‘tool’ to be employed at the drop of a hat.
We refer of course to so-called ‘quantitative easing’ (QE), which really is a euphemism for money printing [...]
KWN has been getting bombarded from readers around the world on the Michael Pento piece titled, “This Major Fed Move Is About To Cause Gold To Skyrocket.” Today we followed up with Michael Pento because there was such tremendous interest in knowing more about this major move he expects from the Fed. Today Pento told King World News that this move he is predicting could add a staggering $15 trillion to [...]
By Dave Gonigam
Hooray for Iceland. The nation has effectively purged an entire class of zombies.
Late on Friday, the Icelandic government repaid $483.7 million in loans to the International Monetary Fund. Ahead of schedule. On top of another early payment totaling $900 million in March.
“Iceland’s main commercial banks collapsed in the space of a week as the global financial crisis struck in late 2008,” says a Reuters dispatch, “imploding under the [...]
FRANKFURT (Reuters) – Credit rating agency DBRS said on Friday it would decide by late August whether or not to cut its ratings of Spain and Ireland below the crucial A threshold, a move that could substantially raise the cost of funding for the two countries’ hard hit banks.
A downgrade from the A (high) rating DBRS now has for Spain and A (low) for Ireland, to triple-B or lower would [...]
Many more years of money printing from the world’s big four central banks now looks destined to add to the $6 trillion already created since 2008 and may transform the relationship between the once fiercely-independent banks and governments.
As rich economies sink deeper into a slough of debt after yet another wave of euro financial and banking stress and U.S. hiring hesitancy, everyone is looking back to the U.S. Federal Reserve, [...]
A little headline might be the cause of a steep drop in the euro recently, courtesy of the European Central Bank’s latest weekly statement.
It’s all about the money central banks are borrowing from the ECB and how they’re going about it.
Essentially, the thinking goes that a large European bank is no longer capable of borrowing directly from the ECB because it no longer has creditworthy collateral. Instead this bank has [...]
By Yiannis Papadoyiannis
The Greek credit system is slowly reverting to normal after the significant turbulence witnessed over the course of last week, as bank officials are now suggesting that the deposit outflow seen in the period right after the May 6 election has subsided.
They said that the bleeding of bank accounts had almost stopped on Friday and yesterday, while local lenders are still eagerly anticipating the transfer of 18 billion [...]
Investors around the world are asking the critical question, do we have inflation or deflation immediately in front of us? Today Michael Pento, of Pento Portfolio Strategies, writes exclusively for King World News to let readers know exactly where we are in the ongoing and epic battle of inflation vs deflation. This is the single most important question facing investors around the world at this moment. Here is what Pento [...]
368%: The jump since 2007 in the measure of consumer credit held by the government comprised primarily of student loans.
If a student loan bubble were to pop, the government, not private banks, would be the one standing around with gum in its hair.
Issuance of student loans has soared in recent years, hitting $867 billion at the end of 2011, according toan analysis from theFederal Reserve Bank of New York, more than [...]
By Greg Hunter’s USAWatchdog.com
The $2 billion loss of JP Morgan in derivatives trading is signaling, once again, the enormous risks big banks take with taxpayer backing. All U.S. banks are covered by the FDIC, and if a loss is big enough, it could threaten the financial system just as it did in 2008. JP Morgan has $70 trillion in total derivative exposure. The entire world has a little more than $700 [...]
By David Weidner, MarketWatch
NEW YORK (MarketWatch) — Jamie Dimon is right: Regulation is making things worse on Wall Street.
The Dodd-Frank Act has cost banks hundreds of millions in profits and has done nothing to prevent:
• J.P. Morgan Chase & Co.’s big trading loss.
• MF Global’s implosion and $1.6 billion in lost customer funds.
• Goldman Sachs Group Inc.’ s GS +1.38% scandal-a-quarter pace.
At a 1% demand for yield per year…the amount of power required basically doubles every 70 years.
At a 10% demand …the doubling time is 7 years.
Eventually it becomes impossible to obtain the required amount of power to sustain the delusion you all have embraced.
It’s inevitable that constant expansion will transform into constant contraction
At -1% the half life is 70 years and at -10% the half life is 7 years.
Lets say [...]