Posts Tagged ‘global economic crisis’

IMF Chief Promotes a Bank Tax… Only On the Countries With the Most F%^*ed Up Banks

IMF Chief Promotes a Bank Tax… Only On the Countries With the Most F%^*ed Up Banks

Courtesy of Jr. Deputy Accountant 

It’s classy that the IMF will not specifically say which countries he believes should pay a "bank tax" because just saying that it should be the ones that imploded the economy assumes that he is at least referring to America and that’s all we care about. Anyway. Damn.

Reuters:

Countries that weathered the global economic crisis with their financial systems relatively unscathed are being shortsighted by opposing a global bank levy, the IMF’s chief said on Saturday.

International Monetary Fund Managing Director Dominique Strauss-Kahn suggested a bank tax would be helpful in preparing for crises that could strike anywhere and indirectly criticized countries that might think they would never feel the brunt of a downturn.

"The countries … which are likely to implement (a bank tax) are the ones having had problems in the banking sector," Strauss-Kahn said. "The others say, ‘We didn’t have a problem so we’re immune.’"

"Maybe it’s a bit shortsighted," he added, without naming any countries. Canada has taken a lead role in rallying opposition to a tax on banks, and anti-poverty organization Oxfam zeroed in on it for that stance.

Again, you don’t have to be explicit to get your point across.

There should be more spanking in banking (tm Minnesota Fed, pretty much) but I’m not sure the IMF is the place to get useful regulatory suggestions seeing as how their business model is essentially to bury nations in mountains of debt. Under the guise of help. A bank tax comes wrapped in the same shiny packaging and is, conveniently, endorsed by the guy whose job it is to push as much debt as possible.

Jamie Dimon has already threatened retaliation; not against the regulators but the consumer (excuse me, I use your bank, don’t f*%k with me) and that means a heavier debt yoke to carry for piss poor America. Or Canada. Or to whomever Strauss-Kahn is referring.

Be wary of solutions tied with these bows.


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What Is Inflation and How Does One Measure It?

Mish discusses inflation, and helpfully begins by noting that there is not consensus regarding the very definition of the world.  Obviously, this creates confusion. – Ilene

What Is Inflation and How Does One Measure It?

Courtesy of Mish

To understand inflation, one must first understand what money is and how to measure it. Please read What is Money and How Does One Measure It? before attempting to understand what follows.

Unfortunately there is no general agreement as to the definition of inflation. Here are some of the widely used definitions as noted in Inflation: What the heck is it?

Commonly Used Definitions

  1. Decline in purchasing power of the currency held
  2. Rising prices in general (essentially the same as #1 although some might disagree)
  3. Rising consumer prices (CPI)
  4. Rising producer prices (PPI)
  5. Rising prices due to expansion of money supply
  6. Rising prices due to expansion of money supply and credit
  7. Expansion of money supply
  8. Expansion of money supply and credit

Four of those definitions refer to money supply. That brings up another issue. When one refers to "money supply" are they talking about M1, M2, MZM, Money AMS (Austrian Money Supply), or simply the amount of money they have in their bank account or wallet at the time of the conversation?

Definitions 5 and 6 refer to "rising prices" yet fail to distinguish between consumer prices, producer prices, or simply prices in general. It seems we could easily add a lot more definitions.

Furthermore, some people make no distinction between money and credit but others do as noted by choices 5 thru 8.

Still others insist than in the fiat world we are in, the web is so tangled between money and credit that this mess is not even worth bothering to figure out. Those folks simply hold gold and wait for "The Crash".

However, it is simply impossible to have a debate about inflation (or anything else) unless the parties can agree on a definition.

Like it or not, we live in a fiat world. Therefore we must attempt to have sound definitions that best describe the fiat world we are in.

The definition I adhere to is: Inflation is a net expansion of money supply and credit, where credit is marked to market. Deflation is the opposite: a net contraction of money supply and


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THE CONTAINER CRISIS

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MUST READ: THE CONTAINER CRISIS

shipping - Salem, Mass shipping in the 1770sCourtesy of The Pragmatic Capitalist

Excellent article here on the shipping industry and the problems that the recession has caused and continues to cause:

The global economic crisis is wreaking havoc on shipping: Demand and prices have collapsed and ports are filling up with fleets of empty freighters. The crisis has fueled cut-throat competition and not all companies will survive. Germany’s Hapag-Lloyd alone needs 1.75 billion euros to stay afloat.

the global financial and economic crisis has stifled the boom in container shipping, and it has happened almost overnight. For the first time in its history, the industry has stopped growing and, in fact, is shrinking. In the first six months of this year alone, the shipping industry declined by close to 16 percent.

ships MUST READ: THE CONTAINER CRISIS

The new giant ships are now much too big for the cargos they transport by sea, and often they sail half-empty — if at all. Billions are being spent to expand ports to handle a boom that no longer exists. Leading shipping line operators are on the verge of bankruptcy, as are shipping banks and charter shipping companies. The industry, once one of the biggest beneficiaries of globalization, now threatens to turn into one of its chief casualties.”There has never been a crisis like this before,” says Reinhard Lange, the CEO of Kühne + Nagel, the world’s largest sea-freight forwarder. Shipping line operators alone are expected to suffer combined losses of $20 billion in 2009.

Drewry Shipping Consultants, the world’s top consultant to the industry, warns: “The industry is looking at the edge of a deep abyss.” And industry publication Lloyds List writes: “Container shipping was thrown into a full-scale panic.”

This sense of panic is more palpable in Hamburg than almost anywhere else in the world.

Read the fully story here

 


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ValueWalk

Ant Group Overhaul Could Lead To IPO After All

By Michelle Jones. Originally published at ValueWalk.

Ant Group’s initial public offering (IPO) could get back on track if it falls in line with what Chinese regulators want. The company is reportedly planning a major overhaul in response to pressure from then. News reports indicate that Ant Group intends to become a financial holding company under the oversight of China’s central bank.

Q4 2020 hedge fund letters, conferences and more

Major overhaul planned

Sources told Fox Business that Ant Gr...



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Kimble Charting Solutions

Bond Rally Here Sends A Bearish Message To Stocks

Courtesy of Chris Kimble

Bonds have experienced a large percentage decline since the highs of last March. Have bonds fallen enough?

If they rally, could they be sending a bearish message to stocks?

This chart looks at Govt Bond ETF (TLT) over the past 20-years. TLT has created a series of higher lows and higher highs inside of the rising channel (1). An upside breakout took place last year as stocks started tanking in late January, as news of Covid started taking place.

The large decline in TLT currently has it testing the top of the channel, which now comes into play as support at...



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Zero Hedge

10Y Yield Tumbles Below 1.00% As Liquidations Lash Stocks

Courtesy of ZeroHedge View original post here.

As the short-squeeze malarkey accelerates this morning...

Source: Bloomberg

Funds are being forced to liquidate their longs to cover losses/margin...

Source: Bloomberg

And that is weighing on the broad market...

...



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Phil's Favorites

Gamestop Monday....WTF Happened?

 

Gamestop's crazy run on Monday didn't stop there. Take a look at Gamestop Tuesday, Gold Edition. The daily chart doesn't show it but GME surged another 60 points in after-hours trading! 

Source: Investors.com

Gamestop Monday….WTF Happened?

Courtesy of Howard Lindzon 

I like this ‘explainer’ post from ...



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Biotech/COVID-19

South African scientists who discovered new COVID-19 variant share what they know

 

South African scientists who discovered new COVID-19 variant share what they know

Health care workers and patients in the temporary outside area Steve Biko Academic Hospital created to screen and treat suspected Covid-19 cases in Pretoria. Alet Pretorius/Gallo Images via Getty Images

Courtesy of Willem Hanekom, Africa Health Research Institute (AHRI) and Tulio de Oliveira, University of KwaZulu-Natal

Late last year the ...



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Digital Currencies

Ethereum Surges To New Record High As DeFi Boom Re-Accelerates

Courtesy of ZeroHedge View original post here.

Coins that power decentralized finance (DeFi) protocols are soaring recently as bitcoin treads water.

While bitcoin grabbed all the headlines early on in the year, it is the rest of the crypto space that is stealing its thunder most recently as Ethereum, the backbone of the smart contracts that define much of the DeFi space, has drastically outperformed...

Source: Bloomberg

That is the highest for ETH relative to BTC since

...

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Politics

Far-right groups move to messaging apps as tech companies crack down on extremist social media

 

Far-right groups move to messaging apps as tech companies crack down on extremist social media

Far-right groups like the Proud Boys, seen here marching in Washington, D.C., on Dec. 12, are increasingly organizing their activities on messaging services like Telegram. Stephanie Keith/Getty Images

Courtesy of Kevin GrishamCalifornia State University San Bernardino

Right-wing extremists called for open revolt against the U.S. government ...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Saturday, 11 July 2020, 05:26:16 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: This is lack of liquidity means support is likely to break if it is tested hard!



Date Found: Saturday, 11 July 2020, 09:51:58 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Nasdaq losing momentum.



Da...

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Mapping The Market

The Countries With The Most COVID-19 Cases

 

The Countries With The Most COVID-19 Cases

By Martin Armstrong, Statista, Jan 12, 2021

This regularly updated infographic keeps track of the countries with the most confirmed Covid-19 cases. The United States is still at the top of the list, with a total now exceeding the 22 million mark, according to Johns Hopkins University figures. The total global figure is now over 85 million, while there have been more than 1.9 million deaths.

You will find more infographics at ...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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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...

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