Socio-Economics History Blog

Socio-Economics & History Commentary

Lynette Zang: Dollar Collapse & Gold

  • ITM Trading Streamed live on Oct 16, 2018
    yt-… Link to Slides and Sources: https://www.itmtrading.com/blog/takes…

    Question 1. Sean B: Would zirp apply to brokerage accounts? Would a brokerage money market account be safer than a bank account?
    Question 2. Stephanos R: How do you come up with 25 gold 1oz coins can buy you 1 square block, buildings and all?
    Question 3. Richard W: Can the US Treasury change the maturation date of a bill/note/bond? ie, changing a 6 month note that I purchase to a 30 year bond after the fact?
    Question 4. Ye K: Given gold and usd is currently so much stronger than Venezuala, Argentina dollar. Why would investors not take the opportunity to go raid their assets?
    Question 5. Donnie M: Is it likely that high priced beach front property will take biggest hit. While productive farm land will lose less?

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October 18, 2018 Posted by | Economics | , , , , , , , , | Leave a comment

Venezuela Ditches US Dollar, Will Use Euros For International Trade

  • Venezuela Ditches US Dollar, Will Use Euros For International Trade
    by Tyler Durden, https://www.zerohedge.com/
    Venezuela has just taken the next step in its quest to “free” itself from the tyranny of US dollar hegemony. One year after the country said it would stop accepting US dollars as payment for its (ever shrinking) oil exports (saying the country’s state-run oil company would accept payment in yuan instead), Venezuelan Vice President for Economy Tareck El Aissami said Tuesday that Venezuela will officially purge the dollar from its exchange market in favor of euros.

    While we’re sure that Venezuelan President Nicolas Maduro would love to frame this as his latest gesture of defiance against tyrannical imperialist overreach by Washington, which he has blamed for aggravating the country’s humanitarian crisis by waging an “economic war” against the oil-rich nation, remember that the US effectively blocked the Venezuelan government from transacting in dollars last year when it imposed restrictive sanctions on the Maduro regime and the country’s state-run oil company, PDVSA. Maduro started the process of moving the country’s DICOM system of official tiered exchange rates in September 2017 when he declared that Venezuela would use a “new system of international payments.”

    read more.

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October 18, 2018 Posted by | Economics | , , , , , , | Leave a comment

Dollar Monopoly Slips as China & Japan Dump US Treasuries

  • Dollar Monopoly Slips as China & Japan Dump US Treasuries
    by https://www.rt.com/
    China and Japan – the two main holders of the US Treasury securities – have trimmed their ownership of notes and bonds in August, according to the latest figures from the US Treasury Department, released on Tuesday.

    China’s holdings of US sovereign debt dropped to $1.165 trillion in August, from $1.171 trillion in July, marking the third consecutive month of declines as the world’s second-largest economy bolsters its national currency amid trade tensions with the US. China remains the biggest foreign holder of US Treasuries, followed by long-time US ally Japan.

    Tokyo cut its holdings of US securities to $1.029 trillion in August, the lowest since October 2011. In July, Japan’s holdings were at $1.035 trillion. According to the latest figures from the country’s Ministry of Finance, Japanese investors opted to buy British debt in August, selling US and German bonds. Japan reportedly liquidated a net $5.6 billion worth of debt.

    Liquidating US Treasuries, one of the world’s most actively-traded financial assets, has recently become a trend among major holders. Russia dumped 84 percent of its holdings this year, with its remaining holdings as of June totaling just $14.9 billion. With relations between Moscow and Washington at their lowest point in decades, the Central Bank of Russia explained the decision was based on financial, economic and geopolitical risks.

    Turkey and India have followed suit. Like Russia, Turkey has dropped out of the top-30 list of holders of American debt following a conflict with Washington over the attempted military coup in the country two years ago. While India remains among the top-30, the country has cut its US Treasury holdings for the fifth consecutive month, from $157 billion in March to $140 billion in August.

    Earlier this week, Goldman Sachs said that US policy of sanctions and tariffs against major economies, including Russia, China and Iran, dragged down the dollar’s share of global central-bank reserves. Meanwhile, the data from the International Monetary Fund confirms that the US dollar’s share in the global central-bank reserves dropped to 62.3 percent from April to June, while holdings in the euro, yen and yuan gained as a share of allocated reserves.

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October 18, 2018 Posted by | Economics | , , , , , , , | Leave a comment

‘VIOLENT REACTION!’ Juncker Warns Italy of Eurozone MELTDOWN Over Budget Proposals

  • ‘VIOLENT REACTION!’ Juncker Warns Italy of Eurozone MELTDOWN Over Budget Proposals
    by LEVI WINCHESTER, https://www.express.co.uk/
    JEAN-CLAUDE Juncker has warned that if the EU were to back down on its stance against Italy’s rampant spending they would risk a “violent reaction” from other eurozone countries. The no-compromise warning from the European Commission President is the latest signal that European Union chiefs are set to reject spending plans proposed by the indebted nation.

    Rome sparked a furious reaction from EU chiefs after unveiling plans for a deficit goal of 2.4 percent of GDP for 2019 – a figure that is three times the previous administration’s target. Italy has a nominal GDP of €1.89 trillion in 2018, indicating a deficit goal of roughly €45 billion, plans to ignore EU rules aimed at keeping nations’ to tight budgets and overspend by

    The Italian Cabinet signed off a spend-spend-spend 2019 budget on Monday night, in which they set out goals to boost welfare spending and slash the retirement age.

    But the proposals have set the nation up for a showdown with authorities in Brussels, who now have the power to reject plans, over compliance with EU rules. Speaking in an interview with the Italian news agency ANSA, Mr Juncker said: “Warnings were given possibly prematurely, but nothing has been decided so far and everything will depend on what comes out of our conversations with the Italian government. “If we accepted what the Italian government proposes, we would have a violent reaction from the states of the eurozone.

    “What is the euro? First of all, it protects us. If Italy didn’t have the euro, the country would be in a bad situation.

    read more.

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October 18, 2018 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

Trump: Biggest Threat is the FedRes, Say Goodbye FedRes

  • X22Report Published on Oct 17, 2018
    Car sales around the world are plunging, especially the European market. Housing permits and starts have declined once again and this follows mortgages imploding on themselves. The debt level is skyrocketing and there is no way to stop it, this is part of the plan to get the central bank system to crash. Trump confirms that the Fed is the biggest threat to the American people.

http://www.wnd.com/2008/03/59405/

Click on image for article.

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October 18, 2018 Posted by | Economics | , , , , , , , , , , | Leave a comment

US Imposes New Sanctions on Iran Banks, Companies

  • PressTV Published on Oct 16, 2018
    The United States has imposed fresh sanctions on a number of Iranian banks and financial institutions as well as companies ahead of the start of the next month’s new round of the US sanctions against the Islamic Republic.

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October 18, 2018 Posted by | Economics, GeoPolitics | , , | Leave a comment

Jim Rickards: We Are OVERDUE For A Global Monetary Reset

  • Jim Rickards: We Are OVERDUE For A Global Monetary Reset
    by Jim Rickards interviewed on The Great Reset Opportunity Report, via https://www.silverdoctors.com/
    Jim has spoken with international bankers, and they’re saying the monetary system is too incoherent, and something must be done about it. Here’s more…

    Economist, investment banker, and author James Rickards discusses interest rates, the stock market, the US economy, precious metals, the risk of financial calamity, the future of the Fed and much more.

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October 17, 2018 Posted by | Economics | , , , , , , , , , , | Leave a comment

Here Comes the ECB with a “Bubble” Warning, After it Caused the Most Absurd Bond Bubble Ever

  • Here Comes the ECB with a “Bubble” Warning, After it Caused the Most Absurd Bond Bubble Ever
    by , https://wolfstreet.com/
    “The ECB cannot and should not turn a blind eye to risks to financial stability.”

    “Maintaining financial stability is about two things: First, it is about preventing the build-up of bubbles; second, it is about making the system more resilient,” said ECB Executive Board Member and Vice-Chair of the ECB’s Supervisory Board, Sabine Lautenschläger, today in a speech. It’s not often that central bankers are allowed to use the B-word in public, except when denying that bubbles exist, or when denying that they can be identified if they do exist.

    “Prices of several asset classes are influenced by the central bank’s policies,” she said. And these policies of the ECB include:

    * A negative interest rate policy (NIRP), with the ECB’s deposit rate a negative -0.4%;
    * An asset purchase program (QE) where the ECB buys government bonds, corporate bonds, asset backed securities, and covered bonds.

    These policies have driven yields of many government bonds and some corporate bonds into the negative. The ECB’s balance sheet has swollen with assets. Borrowing for some countries and companies has become essentially free. Asset prices have surged, including the prices of homes, stocks, bonds, commercial real estate, etc.

    Even at the riskiest end, junk bond yields dropped to a ludicrously low 2.1% by October 30 last year (ICE BofAML Euro High Yield Index Effective Yield), though they have lost some steam since (when bond yields fall, bond prices rise). These policies have triggered the most dizzyingly absurd corporate bond bubble ever.

    read more.

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October 17, 2018 Posted by | Economics | , , , , , , , , | Leave a comment

Huge!! Petrodollar Collapse? Saudi Arabia Warns $200 Barrel Oil?!

  • US sanctions on Riyadh would mean Washington is stabbing itself
    by Turki Aldakhil, https://english.alarabiya.net/
    I read the Saudi statement in response to the American proposals regarding sanctions on Saudi Arabia. The information circulating within decision-making circles within the kingdom have gone beyond the language used in the statement and discuss more than 30 potential measures to be taken against the imposition of sanctions on Riyadh. They present catastrophic scenarios that would hit the US economy much harder than Saudi Arabia’s economic climate.

    If US sanctions are imposed on Saudi Arabia, we will be facing an economic disaster that would rock the entire world. Riyadh is the capital of its oil, and touching this would affect oil production before any other vital commodity. It would lead to Saudi Arabia’s failure to commit to producing 7.5 million barrels. If the price of oil reaching $80 angered President Trump, no one should rule out the price jumping to $100, or $200, or even double that figure.

    An oil barrel may be priced in a different currency, Chinese yuan, perhaps, instead of the dollar. And oil is the most important commodity traded by the dollar today. All of this will throw the Middle East, the entire Muslim world, into the arms of Iran, which will become closer to Riyadh than Washington.

    There are simple procedures, that are part of over 30 others, that Riyadh will implement directly, without flinching an eye if sanctions are imposed. This is all when it comes to oil, but Saudi Arabia is not just about oil, it is a leader in the Muslim world with its standing and geographical importance. And perhaps trusted exchange of information between Riyadh and America and Western countries will be a thing of the past after it had contributed to the protection of millions of Westerners, as testified by senior Western officials themselves.

    Imposing any type of sanctions on Saudi Arabia by the West will cause the kingdom to resort to other options, US President Donald Trump had said a few days ago, and that Russia and China are ready to fulfill Riyadh’s military needs among others. No one can deny that repercussions of these sanctions will include a Russian military base in Tabuk, northwest of Saudi Arabia, in the heated four corners of Syria, Israel, Lebanon and Iraq.

    At a time where Hamas and Hezbollah have turned from enemies into friends, getting this close to Russia will lead to a closeness to Iran and maybe even a reconciliation with it.

    It will not be strange that Riyadh would stop buying weapons from the US. Riyadh is the most important customer of US companies, as Saudi Arabia buys 10 percent of the total weapons that these US companies produce, and buys 85 percent from the US army which means what’s left for the rest of the world is only five percent; in addition to the end of Riyadh’s investments in the US government which reaches $800 billion.

    The US will also be deprived of the Saudi market which is considered one of the top 20 economies in the world. These are simple procedures that are part of over 30 others that Riyadh will implement directly, without flinching an eye if sanctions are imposed on it, according to Saudi sources who are close to the decision-makers.

    The truth is that if Washington imposes sanctions on Riyadh, it will stab its own economy to death, even though it thinks that it is stabbing only Riyadh!

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October 17, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , | Leave a comment

Juncker Warns ‘The EU Cannot Survive Without Italy’

  • Juncker Warns ‘The EU Cannot Survive Without Italy’
    by Tyler Durden, https://www.zerohedge.com/
    Ignoring warnings from the European Commission, the ECB and the European Commission (as well as practically every other supranational organization in Europe), the populist-led Italian government managed to submit their draft budget to the Commission before a midnight deadline – an outcome that was cheered by BTP traders, who bought back into Italian bonds, once again compressing the spread to bunds, which has blown out in recent months.

    But rather than representing a deescalation of tensions between Italy and Brussels, the game of fiscal chicken in which both sides are presently engaged is instead entering its most acute phase, as Brussels now has two weeks to review the budget proposal before it can either accept the plan, or send it back with requests for revisions. 
    And anybody who has been paying even passing attention to the populist government’s denigration of EU budgetary guidelines over the past few months should already understand that Brussels won’t just sit back and accept the budget for what it is.


    read more.

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October 17, 2018 Posted by | Economics, GeoPolitics | , , | Leave a comment

Gerald Celente – Financial Emergency: As Forecast “Economic 9/11?”

October 17, 2018 Posted by | Economics | , , , , , , , , , , , | Leave a comment

EU Commission: Bloc Preparing for BREXIT No-Deal

  • PressTV Published on Oct 15, 2018
    The European Commission says the EU is preparing for a no-deal Brexit as an October 17 summit on Britain’s divorce is drawing closer. Schinas added, several key issues remain unresolved in bilateral talks. He noted, the EU chief negotiator Michel Barnier will brief the EU leaders about the progress in negotiations on October 17. Earlier, Northern Ireland’s Democratic Union Party said Britain’s withdrawal from the EU without an accord is inevitable. The DUP underlined, Brexit talks have turned into a battle for the union of Great Britain and Northern Ireland.

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October 16, 2018 Posted by | Economics, GeoPolitics | , , | Leave a comment

Global Markets Continue To Fall As Bloomberg Warns “The Next Financial Crisis Is Staring Us In The Face”…

Global economic, financial and currency meltdown approaching!

  • Global Markets Continue To Fall As Bloomberg Warns “The Next Financial Crisis Is Staring Us In The Face”…
    by http://theeconomiccollapseblog.com/
    It looks like it could be another tough week for global financial markets.  As the week began, markets were down all over the world, and relations between the United States and Saudi Arabia have taken a sudden turn for the worse.  That could potentially mean much, much higher oil prices, and needless to say that would be a very bad thing for the U.S. economy.  It has really surprised many of us how dramatically events have begun to accelerate here in the month of October, and the mood on Wall Street has taken a decidedly negative turn.  Yes, U.S. stocks did bounce back a bit on Friday (as I correctly anticipated), but it was much less of a bounce than many investors were hoping for.  And this week got off to a rough start with all of the major markets in Asia down significantly…:

    In the Greater China region, the Hang Seng index in Hong Kong fell by around 0.9 percent in early trade. The Shanghai composite also slipped by 0.33 percent while the Shenzhen composite bucked the overall trend to edge up by 0.4 percent.

    In Japan, the Nikkei 225 fell by 1.48 percent in morning trade, while the Topix index slipped by 1.17 percent, with most sectors trending lower.

    But what happened in Asia was nothing compared to what we witnessed in Saudi Arabia. At one point the stock market in Saudi Arabia had plummeted 7 percent after news broke that President Trump warned that the Saudis could face “severe punishment” for the disappearance of journalist Jamal Khashoggi.

    The Saudis are denying doing anything wrong, but everyone agrees that he is missing, and everyone agrees that he was last spotted entering the Saudi Consulate in Istanbul on October 2nd.

    read more.

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October 16, 2018 Posted by | Economics | , , , , | Leave a comment

Dr. Mark Skidmore: $21 Trillion “Missing” Money Huge Implications for Dollar. Entire Federal Budget Now National Security Secret

  • Dr. Mark Skidmore: $21 Trillion “Missing” Money Huge Implications for Dollar. Entire Federal Budget Now National Security Secret
    by Greg Hunter’s USAWatchdog.com (Early Sunday Release)
    Michigan State Economics Professor Mark Skidmore made a stunning discovery late last year. Using publicly available government accounting reports, he revealed there was $21 trillion in what he calls “missing money” from the Department of Defense (DOD) and Housing and Urban Development (HUD). The data he used has been scrubbed, all accounting records are heavily redacted and now the federal government has declared its accounting falls under “national security.” Dr. Skidmore can no longer get the government to respond. Dr. Skidmore explains, “At this point, they are no longer responding to any of my inquiries. They are just not answering, and that is very astounding . . . and you can go on and look at the report yourself and see all of it blacked out. I actually lost sleep over that. That really bothered me. . . . Now, they are not even using standard accounting financial reporting rules. They are just moving things around and not telling anybody. So, first, all of this stuff is hidden because it is a national security issue, and now they are just changing the accounting standards. I would ask is that constitutional? I don’t think so. Does it match any of our financial reporting laws? I don’t think so. I am not sure what gives the government the authority to make that decision, and, yet, it’s happening.”

    The revelation that there is an additional $21 trillion dollars that cannot be accounted for on top of the more than $21 trillion officially in federal debt is an astounding number. It is probably the most important data point since the Federal Reserve was founded in 1913. Dr. Skidmore says, “It’s a huge amount of money to not be able to explain, and they are not explaining it.”

    Dr. Skidmore says there is a limit to money printing even when all the global central banks are doing it. Skidmore says, “What does it mean when a central bank is buying equities, or buying debt with printed money in order to suppress interest rates and keep this game going? I think, overall, the whole world is awash in debt, and it’s expanding at a rate that is unsustainable. The only way it has been sustained is that interest rates have been falling for 30 years. Now, interest rates are no longer falling, and we are running up against a constraint. Now, if this $21 trillion in ‘missing’ federal money really represents spending above and beyond what the official records indicate, then that has huge financial implications and huge implications for confidence in the dollar as the reserve currency. This is an enormous priority to address and not just cover up and say we are all good.”

    In closing, Dr. Skidmore says, “How can you have a democracy if you don’t have any transparency whatsoever? Having integrity and confidence is so essential to the whole system, and this just puts everything in question. . . . We should clean this up and show we are legitimate. If we don’t, we are just shooting ourselves in the foot.”

http://www.wnd.com/2016/08/6-5-trillion-missing-from-defense-department/

Click on image for article.

http://crooksandliars.com/2015/06/report-reveals-85-trillion-missing

Click on image for article.

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October 16, 2018 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Jamie Dimon Warns of Impending Global Event?

  • JAMIE DIMON SOUNDS WARNING ABOUT ‘GEOPOLITICAL ISSUES BURSTING ALL OVER THE PLACE’
    by https://stockboardasset.com/
    * J.P. Morgan Chase CEO Jamie Dimon raises concerns that rising interest rates and geopolitical flareups could derail U.S. economic growth.
    * While rising rates amid a strong economy are good during periods of inflation, they could eventually put a halt to the nearly decade-long economic growth cycle, he says.

    via @hugh_son 
    J.P. Morgan Chase CEO Jamie Dimon raised concerns Friday that rising interest rates and geopolitical flareups could derail U.S. economic growth. “The economy is still very strong, and that’s across wages, job creation, capital expenditure, consumer credit; it’s pretty broad-based and it’s not going to be diminished immediately,” Dimon said in a media conference call following his bank’s earnings report. “I was pointing out the probabilities that I thought were higher that rates would go up. I still believe that. I do think you’re going to see higher rates.”

    While rising rates amid a strong economy are good, they could eventually put a halt to the nearly decade-long economic growth cycle, he said. Dimon said later in a conference call with analysts that benchmark rates could reach 4 percent. The 10-year Treasury yield was last at 3.16 percent, up significantly in the last month, a move that sparked the longest decline in the S&P 500 in almost two years.

    read more.

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October 15, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , | Leave a comment