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Global trade study validates the recessionary decline in Baltic Dry Index

One of the most important, but usually least talked about indicators that denotes the strength of the economy is the Baltic Dry Index (BDI).  This is a measurement that tracks shipping costs and quantities and is a strong signal for whether trade and exports are rising, or in decline. And a new study out on Aug. 28 by the World Trade Monitor has now validated the recessionary numbers of the BDI, and shows t ...

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Fed may have to enact QE4 just to buy up bonds being sold by China

In an interesting observation made on Aug. 27 by analysts at Bank of America, Chinese dumping of dollar reserves (Treasuries) may create such an impact on the United States, that the Fed would have to throw away any thought of raising interest rates and instead look very hard at implementing a new round of quantitative easing just to soak up the estimated $1.1 trillion that will be dumped onto the markets. ...

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Is the ‘flight to safety’ in treasuries really the result of Fed mopping up China’s dollar dump?

Over the past two weeks we have seen the U.S. 10 year treasury roller coaster from a level of 2.2% on Aug. 17, to a low of 1.95 a week later.  Yet since that time the 10 year has moved back above the 'Mendoza line' to its current position of 2.12%.  And of course, the common response in the mainstream media to this drop in yield and spike in buying was due to a 'flight to safety' as traders exited the equit ...

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Black Monday: No matter the spin, markets built on Fed policy instead of economy

In the past we have written about, and shown the charts of what has happened in the stock markets since 2008 after the Fed began their policies of near zero interest rates, and massive quantitative easing.  In fact, it was a case of simple analysis to realize that the rise and fall of the equity markets over the past seven years have been intrinsically tied to infusions of new money printing, where stocks a ...

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Get ready for next move against dollar as IMF delays Yuan inclusion to SDR for a year

On Aug. 19, the IMF announced that they were delaying the decision to include the Chinese Yuan (RMB) into the SDR basket of currencies for at least one year, or until Sep. 30, 2016.  The decision to exclude the Yuan in next year's basket content was determined a week ago, but the announcement to go forward with allowing China to stabilize and strengthen its currency was only released today. IMF executive bo ...

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China’s devaluation just the start as countries rev up for next leg of currency war

The currency war in the global financial system has been going on at varying strengths since 2009, and in full gear since 2013 thanks to Japan and Abenomics.  However, with the world's most important industrial economy showing signs of a severe crash, or at the very least an acute slowdown, China's new devaluation policy is expected to ratchet up the currency wars to a whole new level. For years the Chinese ...

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While the Fed tells Americans one thing, two major banks purchase tons of physical gold

There is a reason why CNBC has lost over 40% of their viewers after the 2008 Credit Crisis, and it is primarily because people have come to realize that most business networks are simply shills for the elite, and promoters of the Federal Reserve's party line.  And to validate this, all one has to do is look at a recent article from the Wall Street Journal where a pundit sought to equate gold to that of a pe ...

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The next step in China determining gold prices initiated as LME accepts Yuan in contract purchases

For owners of physical gold who have been frustrated with the manipulation and falling prices over the past four years, the day of reckoning is slowly coming upon them.  Beginning a few months ago when the London Gold Fix committee invited China to be a member of the daily price fix mechanism, the next step in having price determination move from the West over to Shanghai and Hong Kong is underway as on Jul ...

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More important than China’s gold announcement, U.S. banks scared of dollar dumping as buyers dry up

When China announced their long awaited gold reserve update last week, both the markets and analysts were mystified at just how low the reported reserves were, especially since many knew that China was producing over 2000 tons per year, and buying upwards of 1000 tons per month over the past two years.  And while the news did little to affect the dollar or change opinion on the future of China's currency, s ...

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Stock trading halted at the NYSE on same day China suspends trades for larger shareholders

Former President Franlin Delano Roosevelt once said, In politics nothing happens by accident. If it happens, you can bet it was planned that way.  So when the New York Stock Exchange halts trading on July 8 for what they call a 'gltch', but trading in certain areas like the Bond market continue without delay, one has to wonder if the suspension was fixed, or truly an 'act of nature'. Yet what makes this mar ...

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With Greek default, ECB may invoke ‘Cyprus option’ and induce bank bail-in on depositors

As the final day arrives for Greece to either pay, or default on their IMF obligations, the European Central Bank (ECB) is threatening a two-fold scenario that proves once again that the technocracy that is the European Union is interested only in protecting banks at the expense of the people.  And besides the given option of shutting off liquidity through their Emergency Liquidity Assistance (ELA) to Greek ...

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IMF begins process for bringing Chinese Yuan into the SDR

On June 14 the IMF sent a team of analysts to Beijing to begin the process of determining whether the Chinese Yuan will become part of the Special Drawing Rights (SDR) basket of currencies.  Already progressing quickly as a globally used trade currency since 2009, the Yuan or RMB is now looking to make its mark in one of the most important financial institutions in the West. Since December of last year, the ...

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