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Showing posts from September, 2015

China Economic Blight Endures

China Economic Blight Endure...


China Economic Blight Endures adding worse to an already war torn economy and global newsline.
Just one hour ago China's PMI index was released and while it was better than expected, the increase showed more signs of deterioration. Contraction is continuing on a monthly basis.

From Reuters Eikon:
The government is due to release third-quarter GDP data on Oct 19 and many economists expect growth to dip below 7 percent, which would be the weakest since the global financial crisis. Some China watchers believe current growth levels are already much weaker than official data suggest. A summer stock market crash and China's surprise currency devaluation in August have raised fears of shocks to the economy which could see it slowing more sharply than earlier expected, jeopardising the fragile global recovery. Since the devaluation, top Chinese officials have repeatedly tried to reassure nervous global investors that they are in control of the economy …

VW Cheating - Corporate Criminal America

It was inside the emissions control. A simple engine emissions control software that changed and deceived testing during emissions checks. Back on the open road emissions were blowing out at alarming levels. Emissions were in fact up to 40x higher than anticipated.  However, there must be a massive paper trail. A cheating engine management software piece was developed. It was created to dodge emissions and make the auto everything it was marketed to not be. This is a massive scandal.  Many consumers - if not every singe one - will be left with a financial burden.  This is an ideal test case, perhaps. Criminal or civil liability for the corporation and individuals who were behind this is inevitable. But this is rumoured to be the standard in Europe? Sanctions are allowed in the US but not in Europe. What standards will be enforced and will this change the European and US market?  The stock has also tanked, so that opens the door to shareholder lawsuits. 
Liability is being estimated at $18B…

Fed (San Francisco): Can We Rely on Market-Based Inflation Forecasts?

"...market-based inflation expectations are poor predictors of future inflation. This suggests that these measures contain little forward-looking information about future inflation...http://www.frbsf.org/economic-research/publications/economic-letter/2015/september/market-based-inflation-forecasting-and-alternative-methods/

Green Finance - UK Renewables 85% by 2030

85% OF BRITISH POWER CAN BE VIA RENEWABLES BY 2030, SAYS GREENPEACETHEGRD9/21/15 07:24Britain can produce 85% of its power via renewable energy by 2030 provided it undergoes significant changes in energy production and use, according to a new study by Greenpeace.
The study attempts to counter the argument that only fossil fuels and nuclear power can keep the lights on for the next few decades. It foresees wind leaping from today's level of 13 gigawatts (GW) of wind farms in operation – enough to power around 10 million homes – to a level of 77GW in 2030, with solar rising from just more than 5GW to 28GW.
However, the renewables drive would need to be accompanied by a 60% reduction in demand for domestic heating through a home insulation programme and other initiatives, according to the report by energy system analysts, Demand Energy Equality.
"For a long time the government and the fossil fuel industry have peddled the argument that renewables can't keep the lights on if the…

30-35 Million People Will Be Coming Thru

Is this too fantastic or what (from Right Wing News)? An influx of 30-35 million people will bust EU nations at the seams! - CH ----

by John Binder
20-Sep-2015 15:29:44
Copyright (c) 2015 Right Wing News

English
343 words

Sep 20, 2015
The Syrian refugee crisis is already a disaster that has been caused by a disaster in the Middle East.
However, this is nothing compared to what the world will eventually see, according to Hungary officials who say the crisis is about to get much, much worse.

But according to Hungary's minister for foreign affairs and trade Peter Szijjártó, it's going to get much, much worse.
As the Express reports, Szijjártó said "it is a self delusion to call this situation a migration crisis; it is a massive migration of nations, with inexhaustible reserves.
"I don't think that the analysis results, stating that 30-35 million people out there could possibly become migrants, would be an exaggeration.
Libya, Yemen, Syria, Iraq and Afghanistan are …

Fed Monetary Policy Notes 09/17/2015

Federal Reserve issues FOMC statementhttp://www.federalreserve.gov/newsevents/press/monetary/20150917a.htmInformation received since the Federal Open Market Committee met in July suggests that economic activity is expanding at a moderate pace. Household spending and business fixed investment have been increasing moderately, and the housing sector has improved further; however, net exports have been soft. The labor market continued to improve, with solid job gains and declining unemployment. On balance, labor market indicators show that underutilization of labor resources has diminished since early this year. Inflation has continued to run below the Committee's longer-run objective, partly reflecting declines in energy prices and in prices of non-energy imports. Market-based measures of inflation compensation moved lower; survey-based measures of longer-term inflation expectations have remained stable.Consistent with its statutory mandate, the Committee seeks to foster maximum empl…

Bitcoin The Commodity - BTC

BTC is now a commodity - 
"If a company wants to operate a trading platform for Bitcoin derivatives or futures, it will need to register as a swap execution facility or designated contract market, just like the CME Group."
http://www.bloomberg.com/news/articles/2015-09-17/bitcoin-is-officially-a-commodity-according-to-u-s-regulator

Fed Holding America Hostage - A Huge Correction Predicted

Rates should have been raised - Chad

From Yahoo Finance:

David Stockman is not a fan of the Fed. In fact he claims that the Fed is on a “jihad” against retirees and savers.

The former Reagan budget director and author of “The Great Deformation: The Corruption of Capitalism in America” visited Yahoo Finance ahead of the Fed announcement to discuss his predictions and the potential impact of today’s interest rate decision. “80 months of zero interest rates is downright crazy and it hasn’t helped the Main Street economy because we’re at peak debt,” he says.


Businesses in the U.S. are $12 trillion in debt. That’s $2 trillion more than before the crisis, but “all of it has gone into financial engineering—stock buybacks, mergers and acquisitions and so forth,” according to Stockman. “The jig is up; [the Fed] needs to get on with the business of allowing interest rates to find some normalized level.”


While Stockman believes that the Fed should absolutely raise rates today, he isn’t so sure that t…

Fed holds rates steady in nod to global economic weakness - Rueters

Fed holds rates steady in nod to global economic weakness US - FOMC


17-SEP-2015 14:00:00

(Recasts with Fed policy statement)
Federal funds rate remains unchanged
Fed defers to global economic volatility
Yellen to hold news conference at 2:30 p.m. EDT (1830 GMT)


By Howard Schneider and Ann Saphir

WASHINGTON, Sept 17 (Reuters) - The U.S. Federal Reserve kept interest rates unchanged on Thursday in a nod to concerns about a weak world economy, but left open the possibility of a modest policy tightening later this year.

In what amounted to a tactical retreat, the U.S. central bank said an array of global risks and other factors had convinced it to delay what would have been the first rate hike in nearly a decade.

"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term," the Fed said in its policy statement following the end of a two-day meeting. It added the risks to the U.S. …

Japan Downgrade

"S&P's diagnosis about the uncertain economic outlook means that prospects for fiscal consolidation are becoming uncertain," said Toru Suehiro, senior market economist at Mizuho Securities.

Precious Metals Update

Silver to gold strong....
GOLD - Uptrend is losing momentumShort-term losses possible.The eagerly awaited US jobs data on Friday provided a mixed picture. Although August figures were disappointing, data ​​for June and July were revised upwards at the same time. The price of Gold initially rose to 1,130 $/oz, but could not hold those gains and closed the week trading at 1,122.60 $/oz. A rate hike in the US currently moves to the distant future. Meanwhile there is market consensus that the Fed will not turn the interest rate screw in their meeting next week. A rate hike in December or even at the beginning of 2016 is becoming increasingly likely. Quite different situation in the Euro area: the ECB emphasized on Thursday that it is prepared to continuously increase liquidity of the financial system. Apart from the uncertainties around China and the situation in the emerging countries, the adjustment of the inflation forecast for the coming year from 1.5% to 1.1% is considered as the main…

A History of the U.S. LLC

Note: For some time I have been meaning to publish my research and thoughts on the U.S. LLC - a vehicle I use for operating entities and SPVs religiously, aside from advisory holding corps. Regardless, my output of info will come eventually. Here is a general overview from LLC-Reporter.com
The limited liability firm is a triumph of comparative law in action. The origin of this relatively new institution is generally attributed to the German law of 1892, authorizing the Gesellschaft mit beschrnkter Haftung... . While drawing some inspiration from the English practice of the private limited company, it was nevertheless an original creation. However, the claim that it was without precedent is negated by the fact that the State of Pennsylvania had enacted a law in 1874 authorizing the limited partnership association, which was extensively used. This form of business organization, as we shall note later, bears a striking resemblance to the limited liability firm current today in Europe and …

Puerto Rico News

From Reorg Research - Puerto Rico got some good news this week as PREPA reached a restructuring deal with its forbearing bondholders - though MBIA has not yet signed on to the deal. The commonwealth's House minority leader, meanwhile, has filed a lawsuit against the government seeking documents relating to PREPA's new fuel contracts. The offshore drilling sector drove the energy news, with Vantage Drilling announcing on Tuesday that Brazilian oil giant Petrobras was canceling its contract for the drillship Titanium Explorer while bondholders have organized hiring advisors from Blackstone and Milbank Tweed.

How Priceline.com Went Bust And Then Bust And Then Became A Super Unicorn

Brilliance from Bloomberg -

On March 30, 1999, an 11-month-old, money-losing Internet company called Priceline.com went public, to the great excitement of investors. By the close of trading the stock price had more than quadrupled and the company was, as Saul Hansell put it in the New York Times the next day, “worth more than United Airlines, Continental Airlines and Northwest Airlines combined.”

For the next year or so, Priceline.com was one of the most-cited examples of, depending on one’s inclination, either the import or insanity of the Internet boom. Its ubiquitous TV ads featuring William Shatner also got lots of attention, as did founder Jay Walker’s claims that the company’s name-your-price model would “reinvent the environmental DNA” of business. But it was its market valuation that drove the fascination, and after the stock price collapsed from a high of $974.25 a share in April 1999 to $6.75 in December 2000, people mostly stopped talking about Priceline.com.
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