Jim Sinclair’s Commentary
Here is the latest from John Williams’ www.ShadowStats.com
- GDP Revision Was Little More than Statistical Noise, Yet 4th-Quarter No Longer Is Comparable with Prior Periods
- Income Revised to Show Ongoing Surging Salaries and Wages of “Unknown” Nature
- Fed’s Inflation Target (PCE Deflator) Is A Poorly Regurgitated CPI Measure
- Durable Goods Orders Fell Net of Plunging Aircraft Orders
No. 421: GDP Revision, January PCE Deflator and Durable Goods Orders
http://www.shadowstats.com
Jim Sinclair’s Commentary
We are certainly close to a bottom in terms of degraded financial systems when the needs of the association overcome the needs of truth.
ISDA panel says no Greek ‘credit event’ occurred
By William L. Watts
March 1, 2012, 7:58 a.m. EST
FRANKFURT (MarketWatch) — The International Swaps and Derivatives Association on Thursday said its EMEA Determinations Committee unanimously ruled that no "credit event" has yet occurred amid Greece’s efforts to restructure its debt holdings. A declaration of a "credit event" would require a payout on credit default swaps held as insurance against nonpayment. The panel ruled unanimously that a move effectively insulating the European Central Bank and national central banks from being forced to participate in the restructuring in the event that collective-action clauses are triggered didn’t constitute a credit event. They also determined they hadn’t received evidence that the restructuring itself met the definition of a credit event, ISDA said. The organization added, however that the situation is still evolving and that market participants could submit further questions to the body "as further facts come to light."
Jim Sinclair’s Commentary
And the great majority of the rest is committed in multi-year billion dollar industrial, energy and minerals deals globally.
Dollar Share Of China FX Reserves Dives To 54% In June From 65% In 2010
March 01, 2012
By Tom Orlik
BEIJING (Dow Jones)–China has made a sharp shift away from purchases of U.S securities, slashing the dollar’s share of the country’s foreign reserves in what may signal a change in strategy for managing the massive cash pile, Dow Jones calculations indicate.
The portion of China’s reserves parked in the U.S. appears to have sunk to a decade low 54% as of end-June from 65% in 2010 and 74% in 2006, according to the Dow Jones calculations. The calculations are based on data on China’s holdings of U.S. securities from an annual U.S. Treasury survey, and China’s own data on the value of its FX reserves.
The exact allocation of China’s $3.2 trillion reserves–by far the world’s biggest war chest–has always been a mystery. But the Treasury survey provides the best guide as to how much the State Administration of Foreign Exchange–the organization charged with managing those reserves–has invested in dollar assets.
Given the size of China’s reserves, and the growing global importance of the world’s second-biggest economy, Beijing’s allocation of its reserves is both a key political issue and a potentially huge factor for foreign-exchange and sovereign debt markets.
The U.S. data show China’s holdings of U.S securities edged up $115 billion on year to $1.726 billion at the end of June, but this equates to a much smaller share of the total as China’s reserves were growing rapidly during the period. The purchases of U.S. securities equaled just 15% of the growth in China’s reserves, a substantial fall from 45% in 2010 and an average of 63% over the last five years.