Posts Tagged ‘currency reserves’

China, Cleverly Dumping US Dollars

Quite interesting - consider this together with Phil’s post "China Pays Too Much for Oil in Iraq – $16 A Barrel!" - Ilene

China, Cleverly Dumping US Dollars

Courtesy of Financial Ninja, Ben

FN: China is dumping dollars, but far more cleverly than you might think.

Immobilienblasen has noticed a rather curious tendency for China to overpay in "China Inc." Deal Premiums. What exactly is that all about?

Well, imagine you had a bunch of money… err… US dollars for example. You’ve also got a bunch more of these US dollars coming in daily. You don’t believe they will hold their value. So you don’t really want them. That is quite a problem.

The first trick is to get rid of them… without actually seeming to get rid of them. The second trick is to get rid of them in such as way as to not destroy their value…. yet.

The single best way to do this of course is to use your US dollars to buy hard assets. This looks "normal". It isn’t nearly as obvious as "diversifying" your currency reserves. China is doing exactly that. The "China recovery" story is nothing of the sort. The Chinese demand for commodities is not a function of economic growth but rather a function of hoarding. There are Consequences to this Phantom Commodity Bull Market which will become apparent soon enough.

China has been buying into oil with size and at a premium. This has analysts puzzled:

"Sinopec’s offer is equivalent to $34 a barrel of proved reserves and $14 a barrel of proved and probable reserves. The African transaction average in 2007, when the average crude price is similar to current prices, was $14.40 a barrel for proved reserves and $9.90 for proved and probable reserves, respectively. On a proved basis, the 2007 average suggests $3.1 billion total value for the deal. Therefore, $7.2 billion implies a 135% premium."

But when it becomes obvious to investors the world over that a US dollar devaluation is the only possible way to manage the kind of debt burden the US has accumulated, those premiums will vanish instantly. Oil quoted in US dollars could easily make new highs beyond $147 in such a scenario. China will not only have safe guarded the wealth of its


continue reading


Tags: , , , ,




 
 
 

Zero Hedge

Most Millennials Have Less Than $1,000 In Savings, Live Paycheck-to-Paycheck

Courtesy of ZeroHedge. View original post here.

The majority of millennials are living paycheck to paycheck.

A recent survey of millennials by HowMuch.net found that 51.8% of those aged 18-34 have less than $1,000 held between bank accounts and cash savings.

As Visual Capitalist's Jeff Desjardins notes, this echoes previous data we’ve seen – not just on millennials, but Americans in general. For example, we know that ...



more from Tyler

ValueWalk

Study: Republicans Outnumber Democrats 2-1 on Corporate Boards

By insidesources. Originally published at ValueWalk.

The corporate boards of public and private companies headquartered in the United States have twice as many Republicans as Democrats, a new study published by Harvard Business Review found.

Photo by bjaved98 (Pixabay)

According to the research, these boards are “50% Republicans, 24% Democrats, and 26% Independents, while the American public, according to Gallup, is 28% Republicans, 31% Democrats, and 39% Independents.”

Harvard found women directors are more ideologically diverse than their male counterparts, with Republicans and Democra...



more from ValueWalk

Chart School

Modest Selling

Courtesy of Declan.

Yesterday's buying likely caught shorts out, but later weakness may have encouraged profit taking today. The damage was relatively light and only served as a warning.

For example, the S&P didn't lose breakout support and selling volume was light


The Nasdaq did see more selling to finish with a distribution day. The index finished on its 20-day MA, which it last saw in a convergence in June and was followed by a successful bounce.

...

more from Chart School

Phil's Favorites

Finance is Not the Economy

 

Finance is Not the Economy

Courtesy of Michael Hudson

JOURNAL OF ECONOMIC ISSUES Vol. L No. 3 September 2016
DOI 10.1080/00213624.2016.1210384

By Dirk Bezemer and Michael Hudson

Dirk Bezemer is a professor of economics at the University of Groningen, the Netherlands. Michael Hudson is a distinguished research professor of economics at the University of Missouri, Kansas City, and a professor at Peking University. The authors thank the editor and two anonymous referees for helpful suggestions that gr...



more from Ilene

Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

German Economy Held Back by Weakest Services Growth in 15 Months (Bloomberg)

Germany’s economy lost some momentum this month as manufacturing cooled and the services sector posted its weakest performance in 15 months.

The US Has A Huge Rate Of Whites In Incarceration (But Nobody's Talking About It) (Zero Hedge)

Data provided by PrisonStudies.org is helping shed light on America&rsq...



more from Paul

Kimble Charting Solutions

Gold & Silver Miners potentially kissing resistance

Courtesy of Chris Kimble.

Below looks at the oldest miners index in the states, XAU index, over the past decade. The XAU index looks to be kissing potentially important resistance levels at this time.

CLICK ON CHART TO ENLARGE

All mining indices are up strong this year and all remain well below 2011 levels. Is the rally this year, nothing more than a counter trend rally in a long-term down trend? Not ...



more from Kimble C.S.

Biotech

Epizyme - A Waiting Game

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...



more from Biotech

OpTrader

Swing trading portfolio - week of August 22nd, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



more from OpTrader

Digital Currencies

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust

 

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust 

By  at Bloomberg

Excerpt:

Stefan Thomas, who introduced millions of people to bitcoin, has had a change of heart.

Blockchain, the ledger software that makes the digital currency possible...



more from Bitcoin

Mapping The Market

Illusion of Choice

From Jean-Luc:

Looks like we are down to about 10 companies for our consumer goods:

http://www.visualcapitalist.com/illusion-of-choice-consumer-brands/

Just like banks, airlines and cable companies! 

The Illusion of Choice in Consumer Brands

Explore the full-size version of the above graphic in all its glory.

If today’s infographic looks familiar, that’s because it originates from a well-circulated report that Oxfam International puts together to show consolidation i...



more from M.T.M.

All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

more from David

Promotions

PSW is more than just stock talk!

 

We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more!

PhilStockWorld.com features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...



more from Promotions

Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>